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 =========== ===========
Goldfield Corporation
CONTACT: The Goldfield Corporation, +1-321-724-1700,
investorrelations@goldfieldcorp.com
Web Site: http://www.goldfieldcorp.com/
