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."
About Goldfield
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
Email: investorrelations@goldfieldcorp.com
The
Goldfield Corporation and Subsidiaries
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Consolidated
Statements of Operations
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(Unaudited)
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Three Months
Ended
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Twelve
Months Ended
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|
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December
31,
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December
31,
|
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|
|
|
2010
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|
2009
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|
2010
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|
2009
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|
Revenue
|
|
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|
|
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|
|
|
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|
Electrical
construction
|
$
8,192,832
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|
$
6,212,590
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|
$
31,384,594
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|
$
27,772,466
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|
Real estate
development
|
554,559
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|
329,000
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|
1,983,385
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|
1,473,800
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|
|
|
Total revenue
|
8,747,391
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|
6,541,590
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|
33,367,979
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|
29,246,266
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|
|
|
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Costs and expenses
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|
|
|
|
|
|
|
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Electrical
construction
|
6,604,643
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|
6,345,008
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|
26,310,355
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|
24,971,857
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|
|
Real estate
development
|
515,995
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|
224,431
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|
1,360,751
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|
1,054,233
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Selling, general and
administrative
|
639,837
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|
476,205
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|
2,959,841
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|
2,872,966
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|
|
Depreciation
|
670,598
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|
654,550
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|
2,757,263
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|
2,797,621
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|
|
Loss (gain) on sale of
assets
|
8,155
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|
3,840
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|
(2,168)
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|
(48,863)
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Total costs and
expenses
|
8,439,228
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|
7,704,034
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|
33,386,042
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|
31,647,814
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Total operating
income (loss)
|
308,163
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|
(1,162,444)
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(18,063)
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|
(2,401,548)
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Other (expenses) income,
net
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|
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|
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Interest income
|
11,967
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|
7,667
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|
33,156
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|
34,708
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|
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Interest expense, net
|
(32,020)
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(12,715)
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(134,940)
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(123,590)
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Other (expenses) income,
net
|
1,881
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|
5,333
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|
19,725
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25,564
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Total other expenses,
net
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(18,172)
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|
285
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(82,059)
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(63,318)
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Income (loss) from continuing
operations before income taxes
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289,991
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(1,162,159)
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(100,122)
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(2,464,866)
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Income tax provision
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6,297
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|
(515,320)
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|
34,601
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(537,358)
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Income (loss) from continuing
operations
|
283,694
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|
(646,839)
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|
(134,723)
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|
(1,927,508)
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|
|
|
|
|
|
|
|
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(Loss) gain from
discontinued operations, net of tax
|
(104,832)
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-
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|
(117,834)
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|
387
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|
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|
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Net income (loss)
|
$
178,862
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|
$
(646,839)
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|
$
(252,557)
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|
$
(1,927,121)
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Income (loss) per share of
common stock - basic and diluted
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|
|
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Continuing operations
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$
0.01
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|
$
(0.03)
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|
$
(0.01)
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|
$
(0.08)
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Discontinued
operations
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-
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-
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-
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-
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Net income (loss)
|
$
0.01
|
|
$
(0.03)
|
|
$
(0.01)
|
|
$
(0.08)
|
|
|
|
|
|
|
|
|
|
|
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|
Weighted average shares
outstanding - basic and diluted
|
25,451,354
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|
25,451,354
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|
25,451,354
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|
25,451,354
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|
|
|
|
|
|
|
|
|
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The
Goldfield Corporation and Subsidiaries
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Condensed
Consolidated Balance Sheets
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(Unaudited)
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December
31,
|
|
|
|
|
|
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2010
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|
2009
|
|
ASSETS
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Current assets
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|
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Cash and cash
equivalents
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|
$
4,174,518
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$
3,534,993
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Accounts receivable and accrued
billings, net
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4,393,659
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3,740,047
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Real estate inventory
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774,584
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1,456,682
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Costs and estimated earnings in
excess of
|
|
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billings on uncompleted
contracts
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1,254,054
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1,625,835
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Income taxes
recoverable
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-
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|
819,027
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|
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Prepaid expenses and other
current assets
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|
476,872
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|
536,425
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|
|
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Total current assets
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11,073,687
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11,713,009
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Property, buildings and
equipment, at cost, net
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8,232,306
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8,292,973
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Notes receivable, less current
portion
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|
237,714
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275,513
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Deferred charges and other
assets
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|
1,415,775
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1,380,703
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Total assets
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|
$
20,959,482
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$
21,662,198
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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Accounts payable and accrued
liabilities
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|
$
2,418,056
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|
$
1,994,458
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Contract loss
accruals
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|
65,989
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|
512,079
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|
|
Current portion of notes
payable
|
|
1,176,552
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|
2,130,666
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|
|
Other current
liabilities
|
|
213,315
|
|
4,778
|
|
|
|
Total current
liabilities
|
|
3,873,912
|
|
4,641,981
|
|
Other accrued
liabilities
|
|
17,094
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|
25,234
|
|
Notes payable, less current
portion
|
|
2,610,000
|
|
2,283,950
|
|
Total liabilities
|
|
6,501,006
|
|
6,951,165
|
|
Commitments and
contingencies
|
|
|
|
|
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Stockholders' equity
|
|
|
|
|
|
|
Common stock
|
|
2,781,377
|
|
2,781,377
|
|
|
Capital surplus
|
|
18,481,683
|
|
18,481,683
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|
|
Accumulated deficit
|
|
(5,496,397)
|
|
(5,243,840)
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|
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Common stock in treasury, at
cost
|
|
(1,308,187)
|
|
(1,308,187)
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|
|
|
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Total stockholders'
equity
|
|
14,458,476
|
|
14,711,033
|
|
Total liabilities and
stockholders' equity
|
|
$
20,959,482
|
|
$
21,662,198
|
|
|
|
|
|
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|
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SOURCE Goldfield Corporation