Goldfield Announces 2010 Results
MELBOURNE, Fla., March 30, 2011 /PRNewswire/ -- The Goldfield Corporation (NYSE Amex: GV), a leading provider of electrical construction services throughout the United States and a developer of condominiums, today announced results for the twelve months ended December 31, 2010.
Revenue for the year ended December 31, 2010 was $33.4 million, an increase of 14% over the Company's revenue of $29.2 million in the year ended December 31, 2009. The Company also reported an improved operating loss of $18,000, compared to an operating loss of $2.4 million in the prior year. The increase in revenue was attributable to an increase in demand for our electrical construction services, as well as the variance in the number, type and sales prices of properties sold within the real estate segment.
For the year ended December 31, 2010, the electrical construction segment's operating results showed a significant improvement with revenue of $31.4 million and operating income of $2.1 million, compared to revenue of $27.8 million and an operating loss of $93,000, in the prior year. This increase in operating income was mainly due to increases in transmission and fiber optic work, as well as improved productivity in the current year when compared to the prior year. Electrical construction operating results during the year ended 2009 were adversely affected by one project that was highly impacted by weather conditions.
For the year ended December 31, 2010, the real estate development segment had revenue of $2.0 million and operating income of $186,000. For 2009, revenue and operating loss from this segment were $1.5 million and $52,000, respectively. The increase in revenue and operating income was primarily due to the number, type and sales price of the properties sold in 2010, compared to the same period in the prior year. During the year ended December 31, 2010 a total of four condominium units from our Pineapple House project and four residential properties were sold. In 2009, a total of six condominium units from the Pineapple House project were sold and we had no residential property sales.
Net loss for the year ended December 31, 2010 was $253,000 or $0.01 per share, compared to a net loss of $1.9 million or $0.08 per share in 2009.
Revenue for the three months ended December 31, 2010 was $8.7 million, compared to $6.5 million in the comparable prior-year quarter. The Company had operating income of $308,000 for the quarter ended December 31, 2010, compared to an operating loss of $1.2 million during the same period in 2009. For the three months ended December 31, 2010, electrical construction revenues were $8.2 million and operating income was $842,000, as compared to revenue of $6.2 million and an operating loss of $814,000 in the prior year. The increase in revenue within the electrical construction segment was due to increases in demand for our electrical construction services, specifically transmission and fiber optics work. The increase in operating income was primarily attributable to the same factors noted above with respect to our electrical construction segment. The real estate development segment had revenue for the three months ended December 31, 2010, was $555,000 and an operating loss of $59,000, as compared to revenue of $329,000 and operating income of $38,000 in the like quarter last year.
The Company's net income for the three months ended December 31, 2010 was $179,000 ($0.01 per share) compared to net loss of $647,000 ($0.03 per share) in the comparable prior-year quarter. The quarter-to-quarter improvement is mainly attributable to the aforementioned improvements in revenue and operating income mainly attributable to the Company's electrical construction segment.
Commenting on the 2010 results, John H. Sottile, Chairman, President and Chief Executive Officer of Goldfield, said, "We are encouraged by the improved results in our electrical construction segment and its steady progress. We have continued our expansion beyond our historic base with the opening of our new Western Division headquarters located near Austin, Texas. We expect the opportunities available in this new market will contribute to our results and growth." Commenting on the real estate development segment, Mr. Sottile continued, "Although the real estate market remains challenging, we are pleased that this segment returned to profitability in 2010. We are fortunate that continuing sales at Pineapple House have been above our current carrying value, and that all debt associated with real estate was retired on February 25, 2011."
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 Twelve Months Ended December 31, December 31, 2010 2009 2010 2009 Revenue Electrical construction $ 8,192,832 $ 6,212,590 $ 31,384,594 $ 27,772,466 Real estate development 554,559 329,000 1,983,385 1,473,800 Total revenue 8,747,391 6,541,590 33,367,979 29,246,266 Costs and expenses Electrical construction 6,604,643 6,345,008 26,310,355 24,971,857 Real estate development 515,995 224,431 1,360,751 1,054,233 Selling, general and administrative 639,837 476,205 2,959,841 2,872,966 Depreciation 670,598 654,550 2,757,263 2,797,621 Loss (gain) on sale of assets 8,155 3,840 (2,168) (48,863) Total costs and expenses 8,439,228 7,704,034 33,386,042 31,647,814 Total operating income (loss) 308,163 (1,162,444) (18,063) (2,401,548) Other (expenses) income, net Interest income 11,967 7,667 33,156 34,708 Interest expense, net (32,020) (12,715) (134,940) (123,590) Other (expenses) income, net 1,881 5,333 19,725 25,564 Total other expenses, net (18,172) 285 (82,059) (63,318) Income (loss) from continuing operations before income taxes 289,991 (1,162,159) (100,122) (2,464,866) Income tax provision 6,297 (515,320) 34,601 (537,358) Income (loss) from continuing operations 283,694 (646,839) (134,723) (1,927,508) (Loss) gainfrom discontinued operations, net of tax (104,832) - (117,834) 387 Net income (loss) $ 178,862 $ (646,839) $ (252,557) $ (1,927,121) Income (loss) per share of common stock - basic and diluted Continuing operations $ 0.01 $ (0.03) $ (0.01) $ (0.08) Discontinued operations - - - - Net income (loss) $ 0.01 $ (0.03) $ (0.01) $ (0.08) 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) December 31, 2010 2009 ASSETS Current assets Cash and cash equivalents $ 4,174,518 $ 3,534,993 Accounts receivable and accrued billings, net 4,393,659 3,740,047 Real estate inventory 774,584 1,456,682 Costs and estimated earnings in excess of billings on uncompleted contracts 1,254,054 1,625,835 Income taxes recoverable - 819,027 Prepaid expenses and other current assets 476,872 536,425 Total current assets 11,073,687 11,713,009 Property, buildings and equipment, at cost, net 8,232,306 8,292,973 Notes receivable, less current portion 237,714 275,513 Deferred charges and other assets 1,415,775 1,380,703 Total assets $ 20,959,482 $ 21,662,198 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 2,418,056 $ 1,994,458 Contract loss accruals 65,989 512,079 Current portion of notes payable 1,176,552 2,130,666 Other current liabilities 213,315 4,778 Total current liabilities 3,873,912 4,641,981 Other accrued liabilities 17,094 25,234 Notes payable, less current portion 2,610,000 2,283,950 Total liabilities 6,501,006 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 (5,496,397) (5,243,840) Common stock in treasury, at cost (1,308,187) (1,308,187) Total stockholders' equity 14,458,476 14,711,033 Total liabilities and stockholders' equity $ 20,959,482 $ 21,662,198
SOURCE Goldfield Corporation
Released March 30, 2011