Goldfield Announces First Quarter Results
MELBOURNE, Fla., May 15 /PRNewswire-FirstCall/ -- The Goldfield Corporation (Amex: GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums, today announced results for the three months ended March 31, 2007.
Revenues for the three months ended March 31, 2007 were $9.8 million and the Company had an operating loss of $472,000, compared to revenues of $14.0 million and operating income of $1.9 million in the three months ended March 31, 2006.
Revenues in the first quarter of 2007 reflect decreases in both the electrical construction segment and the real estate development segment. The decrease in the electrical construction segment revenues was primarily due to a slowdown in demand for the Company's electrical construction services. The decrease in the real estate development segment revenues was mainly due to the fact that during the quarter ended March 31, 2007, the Company had only one project, Pineapple House, under construction, with respect to which most of the revenues had been previously recognized. In the quarter ended March 31, 2006, the Company had begun the Pineapple House project and recognized $2.3 million in revenue on Pineapple House as well as $1.2 million in revenue from the Oak Park project.
For the three months ended March 31, 2007, the electrical construction segment had an operating loss of $191,000 compared to operating income of $1.8 million in the comparable prior year period, and the real estate development segment had operating income of $558,000 for the three months ended March 31, 2007 compared to operating income of $894,000 in the three months ended March 31, 2006. In both cases these decreases were primarily due to the same factors that affected revenues as described above and, with respect to the electrical construction segment, unanticipated costs associated with delays arising during the course of completion of certain of the Company's current projects. Although the company continues to make good progress towards completion of the first phase of the Pineapple House project, the continuing slowdown in the Florida real estate market has adversely affected the Company's ability to market the remaining available units in this project.
Net loss for the first quarter of 2007 was $347,000 or $0.01 per share, compared to net earnings of $1.1 million or $0.04 per share in the comparable prior year quarter.
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. Statements in this release are based on current expectations. These statements are forward-looking, and actual results may differ materially. For example, electrical construction projects are generally subject to cancellation and, in the real estate segment, there can be no assurance that settlements of condominiums subject to contracts for sale will occur or that construction will progress as expected. For further details, see the company's filings with the Securities and Exchange Commission.
For further information, please contact: The Goldfield Corporation Phone: (321) 724-1700 Email: email@example.com THE GOLDFIELD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 2007 2006 Revenue Electrical construction $7,354,043 $10,492,005 Real estate development 2,454,432 3,502,947 Total revenue 9,808,475 13,994,952 Costs and expenses Electrical construction 6,801,704 8,123,209 Real estate development 1,693,925 2,321,429 Depreciation 742,347 599,291 Selling, general and administrative 1,050,971 1,098,355 Gain on sale of assets (8,857) (18,310) Total costs and expenses 10,280,090 12,123,974 Total operating income (loss) (471,615) 1,870,978 Other income (expense), net Interest income 61,332 24,712 Interest expense, net (79,645) (36,991) Other 9,149 3,494 Total other expenses, net (9,164) (8,785) Income (loss) from continuing operations before income taxes (480,779) 1,862,193 Income taxes (133,768) 717,702 Net income (loss) $(347,011) $1,144,491 Earnings (loss) per share of common stock - basic and diluted $(0.01) $0.04 Weighted average number of common shares outstanding - - basic and diluted 25,451,354 25,572,192 THE GOLDFIELD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) March 31, December 31, 2007 2006 ASSETS Current assets Cash and cash equivalents $5,493,886 $6,801,600 Accounts receivable and accrued billings, net 5,515,326 4,908,511 Contracts receivable 12,778,842 10,623,909 Remediation insurance receivable 273,349 329,888 Current portion of notes receivable 38,529 41,453 Construction inventory 62,774 216,989 Real estate inventories 600,220 801,411 Costs and estimated earnings in excess of billings on uncompleted contracts 2,740,847 2,358,738 Residential properties under construction 5,055,555 3,784,165 Prepaid expenses and other current assets 1,897,518 1,022,377 Total current assets 34,456,846 30,889,041 Property, buildings and equipment, at cost, net 11,049,528 9,465,378 Notes receivable, less current portion 389,975 407,409 Deferred charges and other assets 1,530,862 1,142,348 Total assets $47,427,211 $41,904,176 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $5,489,490 $5,359,893 Billings in excess of costs and estimated earnings on uncompleted contracts - 24,444 Notes payable 12,935,727 8,663,768 Capital leases, due within one year 323,532 317,160 Current liabilities of discontinued operations 166,411 208,221 Total current liabilities 18,915,160 14,573,486 Deferred income taxes 861,400 861,400 Other accrued liabilities 23,178 20,821 Notes payable, less current portion 2,817,072 1,207,745 Capital leases, less current portion 811,664 894,976 Total liabilities 23,428,474 17,558,428 Commitments and contingencies Stockholders' equity Common stock 2,781,377 2,781,377 Capital surplus 18,481,683 18,481,683 Retained earnings 4,043,864 4,390,875 Common stock in treasury, at cost (1,308,187) (1,308,187) Total stockholders' equity 23,998,737 24,345,748 Total liabilities and stockholders' equity $47,427,211 $41,904,176
SOURCE The Goldfield Corporation
Released May 15, 2007