Goldfield Announces First Quarter 2011 Results
MELBOURNE, Fla., May 12, 2011 /PRNewswire/ -- The Goldfield Corporation (NYSE Amex: GV) today announced results for the three months ended March 31, 2011. The Goldfield Corporation is a leading provider of electrical construction services in the Southeast with operations throughout the United States. Goldfield is also engaged in real estate development activities.
Revenue for the three months ended March 31, 2011, increased 4.5% to $8.9 million from $8.5 million in the like period last year. This increase in revenue was mainly due to higher electrical construction revenue. The Company reported an operating loss of $1,000, compared to operating income of $146,000 in 2010.
For the three months ended March 31, 2011, the electrical construction segment had revenue of $8.2 million and operating income of $328,000, compared to revenue of $7.6 million and operating income of $595,000, in the prior year. The increase in revenue was mainly due to the timing of projects, together with an overall increase in activity in transmission and fiber optic work during the first quarter 2011. The decrease in operating income was largely the result of additional expenses associated with our growth and expansion efforts.
For the three months ended March 31, 2011, the real estate development segment had revenue of $766,000 and operating income of $225,000, compared to revenue of $896,000 and operating income of $251,000, in the prior year. During the three months ended March 31, 2011 we sold two condominium units from our Pineapple House project, compared to three such units in the same period last year.
Net loss for the three months ended March 31, 2011 was $11,000 or $0.00 per share, compared to a net income of $115,000 or $0.00 per share in 2010.
John H. Sottile, Goldfield's President and Chief Executive Officer commented, "We are encouraged by the continuing improvement in the level of activity in our electrical construction operations, and through our expansion efforts outside our traditional Southeastern base we are positioning the Company for enhanced opportunities for future growth." Mr. Sottile continued, "In our real estate development segment, we have continuing sales at Pineapple House at prices above our carrying values. With only three units remaining unsold in our only real estate project, Pineapple House, and the retirement in February of all of our real estate debt, our remaining exposure to the depressed Florida real estate market is extremely limited."
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. 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 March 31, 2011 2010 Revenue Electrical construction $ 8,154,530 $ 7,636,922 Real estate development 765,872 896,026 Total revenue 8,920,402 8,532,948 Costs and expenses Electrical construction 7,008,979 6,276,026 Real estate development 430,626 493,518 Selling, general and administrative 747,065 900,486 Depreciation 734,135 716,844 Loss on sale of assets 714 - Total costs and expenses 8,921,519 8,386,874 Total operating (loss) income (1,117) 146,074 Other (expenses) income, net Interest income 6,634 7,271 Interest expense, net (27,002) (33,247) Other income, net 20,381 9,747 Total other income (expenses), net 13 (16,229) (Loss) income from continuing operations before income taxes (1,104) 129,845 Income tax provision 10,156 15,159 Net (loss) income $ (11,260) $ 114,686 (Loss) income per share of common stock -- basic and diluted $ (0.00) $ 0.00 Weighted average shares outstanding - basic and diluted 25,451,354 25,451,354
The Goldfield Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) March 31, December 31, 2011 2010 ASSETS Current assets Cash and cash equivalents $ 3,657,417 $ 4,174,518 Accounts receivable and accrued billings, net 3,383,574 4,393,659 Real estate inventory 633,233 774,584 Costs and estimated earnings in excess of billings on uncompleted contracts 2,669,103 1,254,054 Prepaid expenses 774,349 304,802 Other current assets 234,097 172,070 Total current assets 11,351,773 11,073,687 Property, buildings and equipment, at cost, net 10,442,711 8,232,306 Notes receivable, less current portion 227,742 237,714 Deferred charges and other assets 1,499,662 1,415,775 Total assets $ 23,521,888 $ 20,959,482 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 3,115,505 $ 2,418,056 Current portion of notes payable 991,429 1,176,552 Other current liabilities 133,087 279,304 Total current liabilities 4,240,021 3,873,912 Other accrued liabilities - 17,094 Notes payable, less current portion 4,834,651 2,610,000 Total liabilities 9,074,672 6,501,006 Commitments and contingencies Stockholders' equity Common stock 2,781,377 2,781,377 Capital surplus 18,481,683 18,481,683 Accumulated deficit (5,507,657) (5,496,397) Common stock in treasury, at cost (1,308,187) (1,308,187) Total stockholders' equity 14,447,216 14,458,476 Total liabilities and stockholders' equity $ 23,521,888 $ 20,959,482
SOURCE The Goldfield Corporation
Released May 12, 2011