Goldfield Announces Second Quarter 2010 Results
MELBOURNE, Fla., Aug. 13 /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 its results for the three and six months ended June 30, 2010.
Revenue for the three months ended June 30, 2010 increased 18.4% to $8.6 million, compared to revenue of $7.2 million for the three months ended June 30, 2009. The Company's operating loss improved $513,000 to $366,000 in the current quarter, compared to an operating loss of $879,000 during the same period in 2009.
Revenue for the six months ended June 30, 2010 increased 6.0% to $17.1 million, compared to revenue of $16.1 million for the six months ended June 30, 2009. The Company's operating loss improved $213,000 to $220,000 in the current period, compared to an operating loss of $433,000 during the same period in 2009.
For the three months ended June 30, 2010, electrical construction revenue increased by $1.3 million, or 18.4%, to $8.6 million from $7.2 million for the three months ended June 30, 2009. This increase in revenue was primarily due to an increase in fiber optic contract work during the most recent quarter. Electrical construction revenue increased slightly to $16.2 million for the six months ended June 30, 2010, from $16.1 million in the same period last year. Electrical construction operations had operating income of $337,000 for the three months ended June 30, 2010, compared to an operating loss of $162,000, during the same period in 2009, an increase of $499,000. This increase was mainly due to the aforementioned increase in fiber optic revenue. For the six months ended June 30, 2010, operating income from electrical construction operations decreased to $932,000, from $1.1 million for the same period in 2009. This decrease was mainly due to a reduction in higher margin storm work projects, when compared to the same period in the prior year.
The Company had no revenue from real estate development operations for either the three months ended June 30, 2010 or 2009. For the six months ended June 30, 2010, real estate revenue increased to $896,000 from $0 during the same period in 2009. The increase in revenue was due to the sale of three Pineapple House condominium units during the six months ended June 30, 2010, compared to no sales during the same period in 2009.
Real estate development operations had an operating loss of $81,000 for the three months ended June 30, 2010, an improvement of $19,000 from an operating loss of $101,000 during the same period in 2009. This improvement was mainly due to a decrease in post construction and holding costs of the Pineapple House condominium units. Real estate development operations had operating income of $170,000 in the six months ended June 30, 2010, compared to an operating loss of $260,000 in the six months ended June 30, 2009, an increase of $429,000. This increase in operating income for the six month period ended June 30, 2010, was mainly due to the aforementioned increase in condominium units sold.
Net loss for the three months ended June 30, 2010 was $389,000 ($0.02 net loss per share) compared to net loss of $903,000 ($0.04 net loss per share) in the comparable prior year quarter. Net loss for the six months ended June 30, 2010, decreased to $275,000 ($0.01 net loss per share) from a net loss of $492,000 ($0.02 net loss per share) in the comparable prior year period.
John H. Sottile, Chairman, President and Chief Executive Officer of Goldfield commented "Although revenue for electrical services has shown a modest improvement for the six-month period ended June 30, 2010 in the second-quarter we experienced revenue growth of over 18%. We are seeing signs of an increase in bid activity for new projects from existing electrical utility customers and we are pursuing new markets for transmission, foundations and fiber optics outside our historic footprint. Improvements in the economy have been slow and competition for work continues to be challenging. Project postponements and delays by our customers for expected projects have adversely affected our revenue and earnings. We remain optimistic, however, regarding the prospects for long-term growth in light of the anticipated improvements required to the nation's transmission infrastructure."
Mr. Sottile continued, "With respect to our real estate operations, the current market continues to be extremely challenging. We are fortunate that our exposure is limited and we have continuing sales at Pineapple House above our current carrying value."
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 continued weakness in the Florida real estate market; the level of consumer confidence; 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; effects of climate changes; 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
THE GOLDFIELD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2010 2009 2010 2009 Revenue Electrical construction $ 8,563,811 $ 7,233,173 $ 16,200,734 $ 16,134,042 Real estate development - - 896,026 - Total revenue 8,563,811 7,233,173 17,096,760 16,134,042 Costs and expenses Electrical construction 7,454,303 6,634,301 13,730,330 13,408,286 Real estate development (140) 41,225 493,378 88,512 Selling, general and administrative 751,312 695,317 1,651,798 1,568,922 Depreciation 724,594 795,042 1,441,438 1,555,231 Gain on sale of assets - (53,465) - (53,465) Total costs and expenses 8,930,069 8,112,420 17,316,944 16,567,486 Total operating loss (366,258) (879,247) (220,184) (433,444) Other income (expenses), net Interest income 6,896 8,569 14,166 17,434 Interest expense, net (35,527) (41,387) (68,774) (87,978) Other income, net 15,178 (4,026) 24,926 9,076 Total other expenses, net (13,453) (36,844) (29,682) (61,468) Loss from continuing operations before income taxes (379,711) (916,091) (249,866) (494,912) Income tax provision 9,552 (9,633) 24,711 - Loss from continuing operations (389,263) (906,458) (274,577) (494,912) Gainfrom discontinued operations, net of tax - 3,368 - 3,368 Net loss $ (389,263) $ (903,090) $ (274,577) $ (491,544) Loss per share of common stock - basic and diluted Continuing operations $ (0.02) $ (0.04) $ (0.01) $ (0.02) Discontinued operations - - - - Net loss $ (0.02) $ (0.04) $ (0.01) $ (0.02) Weighted average 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) June 30, December 31, 2010 2009 ASSETS Current assets Cash and cash equivalents $ 2,598,224 $ 3,534,993 Accounts receivable and accrued billings, net 4,577,353 3,740,047 Real estate inventory 1,557,794 1,456,682 Costs and estimated earnings in excess of billings on uncompleted contracts 1,448,836 1,625,835 Income taxes recoverable 514,047 819,027 Prepaid expenses and other current assets 812,480 536,425 Total current assets 11,508,734 11,713,009 Property, buildings and equipment, at cost, net 8,678,785 8,292,973 Notes receivable, less current portion 256,983 275,513 Deferred charges and other assets 1,364,834 1,380,703 Total assets $ 21,809,336 $ 21,662,198 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 2,319,597 $ 1,994,458 Contract loss accruals 86,293 512,079 Current portion of notes payable 1,967,259 2,130,666 Other current liabilities 7,963 4,778 Total current liabilities 4,381,112 4,641,981 Other accrued liabilities 21,768 25,234 Notes payable, less current portion 2,970,000 2,283,950 Total liabilities 7,372,880 6,951,165 Commitments and contingencies Stockholders' equity Common stock 2,781,377 2,781,377 Capital surplus 18,481,683 18,481,683 Accumulated deficit (5,518,417) (5,243,840) Common stock in treasury, at cost (1,308,187) (1,308,187) Total stockholders' equity 14,436,456 14,711,033 Total liabilities and stockholders' equity $ 21,809,336 $ 21,662,198
SOURCE The Goldfield Corporation
Released August 13, 2010