Goldfield Announces First Quarter 2010 Earnings
MELBOURNE, Fla., May 6 /PRNewswire-FirstCall/ -- The Goldfield Corporation (NYSE 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, 2010.
For the three months ended March 31, 2010, the Company reported revenue of $8.5 million and operating income of $146,000, compared to revenue of $8.9 million and operating income of $446,000 in the first quarter of 2009. The decrease in revenue was primarily due to a decrease in electrical construction revenue, attributable to a decrease in storm work, partially offset by an increase in Pineapple House condominium unit sales during the first quarter 2010.
For the three months ended March 31, 2010, the electrical construction segment had revenue of $7.6 million and operating income of $595,000, compared to revenue of $8.9 million and operating income of $1.3 million in the prior year. The decrease in operating income within the electrical construction segment was primarily due to a decrease in storm work activity during the first quarter 2010.
For the three months ended March 31, 2010, the real estate development segment had revenue of $896,000 and operating income of $251,000. For 2009, revenue and operating loss from this segment were $0 and $159,000, respectively. The increase in revenue and operating income was due to an increase in the number of condominium units sold. During the three months ended March 31, 2010, the Company sold three Pineapple House condominium units, compared to no units sold for the same period in the prior year.
Net income for the three months ended March 31, 2010 was $115,000 or $0.005 per share, compared to net income of $412,000 or $0.016 per share in 2009.
Commenting on the Company's results, John H. Sottile, Chairman, President and Chief Executive Officer of Goldfield, said, "Our electrical construction and real estate development segments continue to face challenging environments. We continue to experience reduced demand for our electrical construction services, driven in part by the deferral by our customers of non-critical projects due to the current economic environment. With respect to our real estate development operations, our exposure is limited and we have continuing sales at Pineapple House above our current carrying value." Mr. Sottile further noted, "In an effort to capitalize on our expertise in the local real estate market, we have begun to make limited opportunistic investments in distressed residential properties, which we plan to improve or reposition for resale. Given current market conditions, we believe that this strategy provides us with additional business opportunities without the exposure of commencing a new development project."
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 real estate market; 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, 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 March 31, 2010 2009 Revenue Electrical construction $ 7,636,922 $ 8,900,868 Real estate development 896,026 - Total revenue 8,532,948 8,900,868 Costs and expenses Electrical construction 6,276,026 6,773,985 Real estate development 493,518 47,287 Selling, general and administrative 900,486 873,605 Depreciation 716,844 760,189 Total costs and expenses 8,386,874 8,455,066 Total operating income 146,074 445,802 Other income (expenses), net Interest income 7,271 8,865 Interest expense, net (33,247) (46,590) Other income, net 9,747 13,102 Total other expenses, net (16,229) (24,623) Income from continuing operations before income taxes 129,845 421,179 Income tax provision 15,159 9,633 Net income $ 114,686 $ 411,546 Income per share of common stock - basic and diluted $ 0.005 $ 0.016 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, 2010 2009 ASSETS Current assets Cash and cash equivalents $ 2,741,011 $ 3,534,993 Accounts receivable and accrued billings, net 3,343,599 3,740,047 Real estate inventory 1,268,772 1,456,682 Costs and estimated earnings in excess of billings on uncompleted contracts 2,694,118 1,625,835 Income taxes recoverable 509,054 819,027 Prepaid expenses and other current assets 868,253 536,425 Total current assets 11,424,807 11,713,009 Property, buildings and equipment, at cost, net 9,375,690 8,292,973 Notes receivable, less current portion 266,285 275,513 Deferred charges and other assets 1,490,593 1,380,703 Total assets $ 22,557,375 $ 21,662,198 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 2,476,798 $ 1,994,458 Contract loss accruals 128,381 512,079 Current portion of notes payable 1,947,802 2,130,666 Other current liabilities 4,543 4,778 Total current liabilities 4,557,524 4,641,981 Other accrued liabilities 24,132 25,234 Notes payable, less current portion 3,150,000 2,283,950 Total liabilities 7,731,656 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 (5,129,154) (5,243,840) Common stock in treasury, at cost (1,308,187) (1,308,187) Total stockholders' equity 14,825,719 14,711,033 Total liabilities and stockholders' equity $ 22,557,375 $ 21,662,198
SOURCE The Goldfield Corporation
Released May 6, 2010