Goldfield Announces Third Quarter Results
MELBOURNE, Fla., Nov. 8 /PRNewswire-FirstCall/ -- The Goldfield Corporation (Amex: GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums on Florida's east coast, today announced results for the three and nine months ended September 30, 2007.
Revenues for the nine months ended September 30, 2007 were $17.7 million and the Company had an operating loss of $3.0 million, compared to revenues of $38.4 million and operating income of $4.6 million in the nine months ended September 30, 2006.
Revenues for the three months ended September 30, 2007 were $6.6 million and the Company had an operating loss of $1.0 million, compared to revenues of $12.1 million and operating income of $1.2 million in the three months ended September 30, 2006.
The decline in results during the 2007 periods reflects a slowdown in our electrical construction operations and the continuing weakness in the Florida condominium market. For the three and nine months ended September 30, 2007, the electrical construction segment had revenues of $6.5 million and $20.5 million, respectively, compared to $8.9 million and $30.6 million, respectively, in the comparable prior year periods, and operating income of $279,000 and $963,000, respectively, compared to $1.1 million and $4.9 million, respectively, in the comparable prior year periods. These decreases were primarily due to the slowdown noted above as well as unanticipated costs associated with customer-initiated delays arising during the course of certain projects.
The real estate development segment had nominal revenues for the three months ended September 30, 2007, and negative revenues of $2.8 million for the nine months ended September 30, 2007, (resulting from the reversal of $7.2 million of previously recognized revenues) compared to revenues of $3.2 million and $7.8 million, respectively, in the comparable prior year periods, and operating losses of $635,000 and $1.8 million, respectively, compared to operating income of $819,000 and $1.8 million, respectively, in the comparable prior year periods. These decreases were due to the reversal of previously recognized revenues and income as a result of customer defaults on contracts to purchase condominium units, as well as a re-valuation of our unsold condominium units.
Net loss for the nine months ended September 30, 2007 was $1.7 million or $0.07 per share, compared to net earnings of $3.0 million or $0.12 per share in the comparable prior year period. Net loss for the three months ended September 30, 2007 was $271,000 or $0.01 per share, compared to net earnings of $913,000 or $0.04 per share in the comparable prior year quarter.
John H. Sottile, Goldfield's President and Chief Executive Officer commented, "Recent developments indicate that we are seeing a rebound in our electrical construction operations. As we previously announced, Southeast Power was recently selected to partner with a major utility in a multi-year project involving the upgrading of 46.2 miles of transmission line to support load growth in central Florida. Work has commenced on this project in the fourth quarter. In addition, three other construction projects on which work had been suspended are being resumed in the fourth quarter."
Mr. Sottile continued, "With respect to our real estate development operations, our recently commenced marketing efforts and price reductions at Pineapple House have met with early success. With the project completed and a number of the units already occupied, prospective purchasers can now see for themselves the project's high quality. These new efforts have resulted in the sales of five additional condominium units in recent weeks, one of which has already been closed."
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; adverse weather; our ability to estimate accurately with respect to fixed price construction contracts; heightened competition in the electrical construction field, including intensification of price competition, and the availability of skilled construction labor. Factors that may affect the results of our real estate development operations include, among others: interest rates; ability to obtain necessary permits from regulatory agencies; adverse legislation or regulations; ability to acquire land; our ability to maintain or increase historical revenues and profit margins; our ability to collect contracts receivable and close homes in backlog, particularly related to buyers purchasing homes as investments; availability of labor and materials and material increases in labor and material costs; ability to obtain additional construction financing; increases in interest rates and availability of mortgage financing; increases in construction and homeowner insurance and the availability of insurance; the level of consumer confidence; the negative impact of claims for contract rescission or cancellation by unit purchasers due to various factors including the increase in the cost of condominium insurance; adverse weather; natural disasters; changes in generally accepted accounting principles; the continued weakness in the Florida condominium market and general economic conditions, both nationally and in our region. 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: email@example.com The Goldfield Corporation and Subsidiaries Consolidated Statements Of Operations (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Revenue Electrical construction $6,518,999 $8,903,823 $20,531,121 $30,582,150 Real estate development 41,042 3,244,927 (2,807,828) 7,794,414 Total revenue 6,560,041 12,148,750 17,723,293 38,376,564 Costs and expenses Electrical construction 5,496,723 7,189,242 17,244,833 23,772,776 Real estate development 46,293 2,187,300 (1,729,933) 5,336,218 Selling, general and administrative 841,222 965,393 2,498,556 2,883,523 Depreciation 757,846 607,185 2,265,963 1,834,595 Write down of inventory 473,227 - 473,227 - (Gain) loss on sale of assets (6,927) 4,439 (17,220) (24,884) Total costs and expenses 7,608,384 10,953,559 20,735,426 33,802,228 Total operating income (loss) (1,048,343) 1,195,191 (3,012,133) 4,574,336 Other income (expense), net Interest income 53,779 90,525 166,664 142,210 Interest expense, net (235,381) (61,430) (414,085) (161,386) Other 515,282 19,683 577,795 133,304 Total other income (expense), net 333,680 48,778 330,374 114,128 Income (loss) from operations before income taxes (714,663) 1,243,969 (2,681,759) 4,688,464 Income tax expense (benefit) (456,444) 479,434 (955,027) 1,806,967 Income (loss) from continuing operations (258,219) 764,535 (1,726,732) 2,881,497 Gain (loss) from discontinued operations, net of tax (12,661) 148,637 (12,661) 148,637 Net income (loss) $(270,880) $913,172 $(1,739,393) $3,030,134 Earnings (loss) per share of common stock - basic and diluted Continuing operations $(0.01) $0.03 $(0.07) $0.11 Discontinued operations $- $0.01 $- $0.01 Net income (loss) $(0.01) $0.04 $(0.07) $0.12 Weighted average number of common shares outstanding - basic and diluted 25,451,354 25,572,159 25,451,354 25,572,181 The Goldfield Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) September 30, December 31, ASSETS 2007 2006 Current assets Cash and cash equivalents $4,134,995 $6,801,600 Accounts receivable and accrued billings, net 4,317,650 4,908,511 Contracts receivable - 10,623,909 Remediation insurance receivable 253,049 329,888 Current portion of notes receivable 43,675 41,453 Construction inventory 30,209 216,989 Real estate inventories 10,232,940 801,411 Costs and estimated earnings in excess of billings on uncompleted contracts 3,298,477 2,358,738 Residential properties under construction - 3,784,165 Prepaid expenses and other current assets 1,924,729 1,022,377 Total current assets 24,235,724 30,889,041 Property, buildings and equipment, at cost, net 10,425,164 9,465,378 Notes receivable, less current portion 363,821 407,409 Deferred charges and other assets 1,654,684 1,142,348 Total assets $36,679,393 $41,904,176 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $2,973,529 $5,359,893 Billings in excess of costs and estimated earnings on uncompleted contracts - 24,444 Notes payable 7,208,453 8,663,768 Capital leases, due within one year 321,233 317,160 Current liabilities of discontinued operations 112,813 208,221 Total current liabilities 10,616,028 14,573,486 Deferred income taxes 412,165 861,400 Other accrued liabilities 25,654 20,821 Notes payable, less current portion 2,363,776 1,207,745 Capital leases, less current portion 655,415 894,976 Total liabilities 14,073,038 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 2,651,482 4,390,875 Common stock in treasury, at cost (1,308,187) (1,308,187) Total stockholders' equity 22,606,355 24,345,748 Total liabilities and stockholders' equity $36,679,393 $41,904,176
SOURCE The Goldfield Corporation
Released November 8, 2007