MELBOURNE, Fla., Nov. 9 /PRNewswire-FirstCall/ -- The Goldfield Corporation
(NYSE Amex: GV), a leading provider of electrical construction services in the
southeastern United States and a developer of condominiums, today announced
improved results for the nine and three months ended September 30, 2009.
Revenue for the nine months ended September 30, 2009 increased 8.8% to $22.7
million from $20.9 million in the nine months ended September 30, 2008. The
Company's operating loss decreased to $1.2 million in the current period from
a $2.7 million operating loss during the same period in 2008.
Revenue for the three months ended September 30, 2009 decreased 17.2% to $6.6
million from $7.9 million in the three months ended September 30, 2008. The
Company's operating loss decreased to $806,000 in the current quarter from
$1.1 million during the same period in 2008.
Electrical construction revenue increased by $2.7 million (14.6%) to $21.6
million for the nine months ended September 30, 2009 from $18.8 million in the
same period last year. The improvement was primarily due to an increase in
ice storm restoration work in Missouri. For the three months ended September
30, 2009, electrical construction revenue decreased by $1.4 million (21.0%) to
$5.4 million from $6.9 million for the three months ended September 30, 2008,
primarily due to a decrease in fiber optic contract work during the most
recent quarter. Operating income from electrical construction operations
increased to $721,000 for the nine months ended September 30, 2009 from an
operating loss of $236,000 for the same period in 2008. This increase
primarily resulted from improved productivity on several jobs and an improved
ratio of revenue to fixed overhead costs. Electrical construction operations
had an operating loss of $426,000 and $302,000 for the three months ended
September 30, 2009 and 2008, respectively. This change was mainly due to
reduced revenue from higher margin fiber optic projects compared to the same
period in the prior year.
Real estate revenue decreased to $1.1 million for the nine months ended
September 30, 2009 from $2.1 million over the same period in 2008. The
decrease in revenue was primarily due to a decrease in the number of units
sold and lower sales prices for the units sold, with five Pineapple House
units sold during the nine months ended September 30, 2009 compared to the
sale of six units (three Pineapple House units and three Oak Park units) for
the same period in the prior year. For the three months ended September 30,
2009 and the like period in 2008 real estate revenue remained level at $1.1
million.
Real estate development operations had operating income of $13,000 in the nine
months ended September 30, 2009, compared to an operating loss of $499,000 in
the nine months ended September 30, 2008. The increase in operating income
for the nine month period ended September 30, 2009 was mainly due to the
previously reported write-down in the fourth quarter of 2008 on the then
existing Pineapple House inventory. Real estate development operations had
operating income of $273,000 in the three months ended September 30, 2009,
compared to an operating loss of $189,000 in the three months ended September
30, 2008, mainly due to the aforementioned write-down.
Net loss for the nine months ended September 30, 2009 decreased to $1.3
million ($0.05 net loss per share) from a net loss of $1.9 million ($0.08 net
loss per share) in the comparable prior year period. Net loss for the three
months ended September 30, 2009 was $789,000 ($0.03 net loss per share)
compared to net loss of $790,000 ($0.03 net loss per share) in the comparable
prior year quarter.
Commenting on third quarter results, John H. Sottile, President of Goldfield
stated that "given current economic and market conditions, we are pleased with
the overall improvement in our year to date results." With respect to the
Company's real estate development operations, Mr. Sottile noted
"notwithstanding the current weakness in the Florida real estate market, we
have continued to sell units at our Pineapple House project. Unlike many of
our competitors, the Company's real estate exposure is very manageable, and
Pineapple House, our most recently completed project, has been well received,
with over 70% of the units sold."
About Goldfield
Goldfield is a leading provider of electrical construction and maintenance
services in the energy infrastructure industry in the southeastern United
States. The company specializes in installing and maintaining electrical
transmission lines for a wide range of electric utilities. Goldfield is also
involved in the development of high-end condominium projects on Florida's east
coast. For additional information, please visit http://www.goldfieldcorp.com.
This press release includes forward-looking statements based on our current
expectations. Our actual results may differ materially from what we currently
expect. Factors that may affect the results of our electrical construction
operations include, among others: the level of construction activities by
public utilities; the timing and duration of construction projects for which
we are engaged; our ability to estimate accurately with respect to fixed price
construction contracts; and heightened competition in the electrical
construction field, including intensification of price competition. Factors
that may affect the results of our real estate development operations include,
among others: the level of consumer confidence; the continued weakness in the
Florida condominium market; our ability to acquire land; increases in
interest rates and availability of mortgage financing to our buyers; increases
in construction and homeowner insurance and the availability of insurance.
Factors that may affect the results of all of our operations include, among
others: adverse weather; natural disasters; changes in generally accepted
accounting principles; our ability to obtain necessary permits from regulatory
agencies; our ability to maintain or increase historical revenues and profit
margins; general economic conditions, both nationally and in our region;
adverse legislation or regulations; availability of skilled construction labor
and materials and material increases in labor and material costs; and our
ability to obtain additional and/or renew financing, particularly in light of
the current disruption in the credit markets. Important factors which could
cause our actual results to differ materially from the forward-looking
statements in this press release are detailed in the Company's Risk Factors
and Management's Discussion and Analysis of Financial Condition and Results of
Operation sections of our Annual Report on Form 10-K and Goldfield's other
filings with the Securities and Exchange Commission, which are available on
Goldfield's website: http://www.goldfieldcorp.com.
For further information, please contact:
The Goldfield Corporation
Phone: (321) 724-1700
Email: investorrelations@goldfieldcorp.com
The Goldfield Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
-------- -------- -------- --------
Revenue
Electrical construction $5,425,834 $6,869,416 $21,559,876 $18,818,538
Real estate development 1,144,800 1,070,545 1,144,800 2,054,572
--------- --------- ---------- ----------
Total revenue 6,570,634 7,939,961 22,704,676 20,873,110
--------- --------- ---------- ----------
Costs and expense
Electrical construction 5,218,563 6,417,692 18,626,849 16,466,838
Real estate development 741,290 1,062,364 829,803 1,991,467
Selling, general and
administrative 827,839 806,892 2,396,761 2,616,309
Depreciation 587,840 720,860 2,143,071 2,429,350
Write down of inventory - - - 36,502
Provision for doubtful accounts - - - 27,078
Loss (gain) on sale of assets 761 500 (52,704) 7,428
--------- --------- ---------- ----------
Total costs and expense 7,376,293 9,008,308 23,943,780 23,574,972
--------- --------- ---------- ----------
Total operating loss (805,659) (1,068,347) (1,239,104) (2,701,862)
-------- --------- --------- ---------
Other income (expense), net
Interest income 9,607 61,532 27,041 113,628
Interest expense (22,898) (91,064) (110,875) (315,153)
Other income 11,154 67 20,230 4,950
-------- -------- -------- --------
Total other expense, net (2,137) (29,465) (63,604) (196,575)
-------- -------- -------- --------
Loss from continuing operations
before income taxes (807,796) (1,097,812) (1,302,708) (2,898,437)
Income tax benefit (22,039) (400,371) (22,039) (1,047,320)
-------- -------- -------- ---------
Loss from continuing
operations (785,757) (697,441) (1,280,669) (1,851,117)
(Loss) gain from discontinued
operations, net of tax (2,981) (92,642) 387 (92,642)
-------- -------- -------- --------
Net loss $(788,738) $(790,083)$(1,280,282)$(1,943,759)
======= ======= ========= =========
Loss per share of common stock
- basic and diluted
Continuing operations $(0.03) $(0.03) $(0.05) $(0.08)
Discontinued operations - - - -
-------- -------- -------- --------
Net loss $(0.03) $(0.03) $(0.05) $(0.08)
========== ========= ========== ==========
Weighted average number of
common shares outstanding
- basic and diluted 25,451,354 25,451,354 25,451,354 25,451,354
========== ========== ========== ==========
The Goldfield Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, December 31,
ASSETS 2009 2008
------------- ------------
Current assets
Cash and cash equivalents $4,177,764 $4,921,980
Accounts receivable and accrued
billings 3,374,542 6,709,015
Remediation insurance receivable 34,128 99,375
Current portion of notes receivable 43,127 54,169
Construction inventory - -
Real estate inventory 1,630,097 2,323,756
Costs and estimated earnings in excess of
billings on uncompleted contracts 1,252,942 1,135,290
Prepaid expenses and other current assets 1,183,006 1,127,745
--------- ---------
Total current assets 11,695,606 16,371,330
Property, buildings and equipment, at
cost, net 7,435,324 7,656,580
Notes receivable, less current portion 284,488 304,671
Deferred charges and other assets 1,477,138 1,165,953
--------- ---------
Total assets $20,892,556 $25,498,534
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $1,890,133 $2,932,690
Billings in excess of costs and
estimated earnings on uncompleted contracts 970 7,564
Current portion of notes payable 3,425,872 2,096,645
Current portion of capital leases - 320,013
Reserve for remediation 5,579 153,368
--------- ---------
Total current liabilities 5,322,554 5,510,280
Other accrued liabilities 26,335 28,423
Notes payable, less current portion 185,795 3,062,333
Capital leases, less current portion - 259,344
--------- ---------
Total liabilities 5,534,684 8,860,380
--------- ---------
Commitments and contingencies
Stockholders' equity
Common stock 2,781,377 2,781,377
Capital surplus 18,481,683 18,481,683
Accumulated deficit (4,597,001) (3,316,719)
Common stock in treasury, at cost (1,308,187) (1,308,187)
---------- ----------
Total stockholders' equity 15,357,872 16,638,154
---------- ----------
Total liabilities and stockholders'
equity $20,892,556 $25,498,534
=========== ===========
SOURCE Goldfield Corporation
The Goldfield Corporation, +1-321-724-1700,
investorrelations@goldfieldcorp.com
