Goldfield Announces Third Quarter 2008 Results
MELBOURNE, Fla., Nov. 14 /PRNewswire-FirstCall/ -- The Goldfield Corporation (NYSE ALTERNEXT US: GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums on the east coast of Florida, today announced results for the three and nine months ended September 30, 2008.
Revenues for the three months ended September 30, 2008 were $7.9 million and the Company had an operating loss of $1.1 million, compared to revenues of $7.1 million and an operating loss of $537,000 in the three months ended September 30, 2007.
Revenues for the nine months ended September 30, 2008 were $20.9 million and the Company had an operating loss of $2.7 million, compared to revenues of $18.3 million and an operating loss of $2.4 million in the nine months ended September 30, 2007.
Revenues for the electrical construction segment increased to $6.9 million for the three months ended September 30, 2008 from $6.5 million for the prior year quarter. Electrical construction segment revenues for the nine months ended September 30, 2008 decreased to $18.8 million from $20.5 million for the nine months ended September 30, 2007. The increase in revenues for the three months ended September 30, 2008 was primarily due to completion of one large project in the current quarter. Electrical construction revenues for the nine months ended September 30, 2008 have been adversely effected by the continued slow down in demand for the electrical construction services in Florida. The electrical construction segment's operating loss for the three and nine months ended September 30, 2008 was $302,000 and $236,000, respectively, compared to operating income of $279,000 and $963,000 in the comparable prior year periods.
Revenues for the real estate development segment increased for both the three months and nine months ended September 30, 2008 to $1.1 million and $2.1 million, respectively, from $552,000 and $(2.2 million) for the three and nine months ended September 30, 2007, respectively. For the nine months ended September 30, 2007 the negative revenues resulted from the reversal of revenue previously recognized as a result of customers defaulting on their contractual obligations to close the purchase of condominium units in the Pineapple House project, which was completed in June 2007. The real estate development segment had operating losses of $189,000 and $499,000, respectively, for the three and nine months ended September 30, 2008, compared to operating losses of $124,000 and $1.2 million, respectively, in the three and nine months ended September 30, 2007.
Net loss for the three months ended September 30, 2008 was $790,000 ($0.03 net loss per share) compared to net loss of $271,000 ($0.01 net loss per share) in the comparable prior year quarter. Net loss for the nine months ended September 30, 2008 was $1.9 million ($0.08 net loss per share) compared to net loss of $1.7 million ($0.07 net loss per share) in the comparable prior year period.
John H. Sottile, Goldfield's President and Chief Executive Officer commented, "In our electrical construction segment, the initial expansion of our geographical footprint has cushioned the effects of the general slowdown in demand for electrical construction services in Florida." Mr. Sottile continued, "With respect to our real estate development operations, during 2008, we have been successful in marketing the remaining units in our Oak Park project and several units in our Pineapple House project. Despite the current depression in the Florida real estate market, I believe that our exposure is very manageable, as we do not currently have any projects under construction, and our latest project, Pineapple House, is complete. We are continuing to sell units at Pineapple House with over half already sold."
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 obtain necessary permits from regulatory agencies; our ability to acquire land; our ability to collect contracts receivable and close homes in backlog, particularly related to buyers purchasing homes as investments; 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 maintain or increase historical revenues and profit margins; and general economic conditions, both nationally and in our region; adverse legislation or regulations; the 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: email@example.com THE GOLDFIELD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Revenues Electrical construction $6,869,416 $6,518,999 $18,818,538 $20,531,121 Real estate development 1,070,545 552,364 2,054,572 (2,242,515) Total revenues 7,939,961 7,071,363 20,873,110 18,288,606 Costs and expenses Electrical construction 6,417,692 5,496,723 16,466,838 17,244,833 Real estate development 1,062,364 46,293 1,991,467 (1,729,933) Selling, general and administrative 806,892 841,222 2,616,309 2,498,556 Depreciation 720,860 757,846 2,429,350 2,265,963 Write down of inventory - 473,227 36,502 473,227 Provision for doubtful accounts - - 27,078 - Loss (gain) on sale of assets 500 (6,927) 7,428 (17,220) Total costs and expenses 9,008,308 7,608,384 23,574,972 20,735,426 Total operating loss (1,068,347) (537,021) (2,701,862) (2,446,820) Other income (expense), net Interest income 61,532 53,779 113,628 166,664 Interest expense, net (91,064) (235,381) (315,153) (414,085) Other 85 3,960 16,038 12,482 Minority interest (18) - (11,088) - Total other expense, net (29,465) (177,642) (196,575) (234,939) Loss from continuing operations before income taxes (1,097,812) (714,663) (2,898,437) (2,681,759) Income tax benefit (400,371) (456,444) (1,047,320) (955,027) Loss from continuing operations (697,441) (258,219) (1,851,117) (1,726,732) Loss from discontinued operations, net of tax (92,642) (12,661) (92,642) (12,661) Net loss $(790,083) $(270,880) $(1,943,759) $(1,739,393) Loss per share of common stock - basic and diluted Continuing operations $(0.03) $(0.01) $(0.08) $(0.07) Discontinued operations (0.00) (0.00) (0.00) (0.00) Net loss $(0.03) $(0.01) $(0.08) $(0.07) 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 2008 2007 Current assets Cash and cash equivalents $6,295,100 $3,984,613 Accounts receivable and accrued billings, net 2,098,407 5,881,430 Remediation insurance receivable 31,747 176,827 Current portion of notes receivable 53,382 49,108 Construction inventory - 2,218 Real estate inventory 5,908,165 7,788,739 Costs and estimated earnings in excess of billings on uncompleted contracts 1,482,940 1,658,712 Prepaid expenses and other current assets 2,487,343 1,933,869 Total current assets 18,357,084 21,475,516 Property, buildings and equipment, at cost, net 8,320,561 9,803,794 Notes receivable, less current portion 316,850 352,305 Deferred charges and other assets 1,811,748 1,235,391 Total assets $28,806,243 $32,867,006 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $2,072,453 $1,984,352 Current portion of notes payable 4,479,857 5,202,466 Current portion of capital leases 313,635 315,619 Reserve for remediation 145,985 198,850 Total current liabilities 7,011,930 7,701,287 Deferred income taxes - 346,200 Other accrued liabilities 28,306 26,894 Notes payable, less current portion 1,328,562 2,184,932 Capital leases, less current portion 341,780 579,357 Total liabilities 8,710,578 10,838,670 Commitments and contingencies Minority interest 14,449 3,361 Stockholders' equity Common stock 2,781,377 2,781,377 Capital surplus 18,481,683 18,481,683 Retained earnings 126,343 2,070,102 Common stock in treasury, at cost (1,308,187) (1,308,187) Total stockholders' equity 20,081,216 22,024,975 Total liabilities and stockholders' equity $28,806,243 $32,867,006
SOURCE The Goldfield Corporation
Released November 14, 2008