In 2012, net income grew to $12 million ($0.47 per share) from $874 thousand ($0.03 per share) in 2011. Revenue more than doubled to $81.6 million in 2012 from $32.8 million in 2011.
These results reflect not only markedly increased demand for services by utilities upgrading and expanding their transmission infrastructure, but also the strengthening of the capability of our electrical subsidiary, Southeast Power, in a broader service area. We are now seeing the preliminary impact of our strategy to move beyond our historic Florida base by expanding our operations into Texas, the Carolinas and Virginia.
Southeast Power’s fine reputation in the industry, together with our expansion, has enabled us to attract experienced and highly regarded new leadership. John Davis, former Chief Operating Officer of Southeast Power, took the helm as President on January 1, 2013. John E. White, formerly Senior Vice President of one of the country’s largest electrical construction companies, recently joined the Southeast Power team with responsibility for new business development. I have every confidence that we have assembled a strong team capable of leading Southeast Power to continued success.
A highlight of 2012 was the selection of Southeast Power to construct a 110 mile 345kV transmission line as part of a Competitive Renewable Energy Zone (“CREZ”) project in Texas. This project, scheduled for completion this August, contributed about 34% of our revenue in 2012 and is expected to impact favorably 2013 results. But this is hardly the whole story. Most significantly, our revenue from other projects increased in 2012 by 68% to $53.2 million, from $31.7 million in 2011. Given the continuing strong demand for our services, we believe that we will meet the challenge of replacing the work from the CREZ project. In short, we enter 2013 with confidence in our business plan.
In 2012 we invested $16.8 million in capital equipment to support our expanded electrical construction operations, enhance productivity and improve safety. Notwithstanding this large commitment, Goldfield’s financial position today is stronger than ever.
With the strong team we have assembled and the robust industry environment, I am confident we are well positioned today to take advantage of opportunities to build on our record growth. I appreciate the support of so many Goldfield shareholders over the years and am particularly grateful to Goldfield’s employees who worked so hard and effectively in 2012.
John H. Sottile
President and Chief Executive Officer
April 29, 2013
