MELBOURNE, Fla., Nov. 13,
2012 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV)
today announced strongly improved results for the three and nine
months ended September 30, 2012,
driven by dramatic growth in our electrical construction
business. The Goldfield Corporation, headquartered in
Florida, is a leading provider of
construction services to electric utilities, with operations
primarily in the southeastern, mid-Atlantic, and western regions of
the United States. Goldfield is also engaged, to a much
lesser extent, in real estate development activities on the east
coast of Florida.
Nine Months Ended September 30,
2012
Revenue for the nine months ended September 30, 2012 more than doubled, increasing
161.2% to $55.9 million from
$21.4 million in the comparable prior
year period. This increase was attributable to higher
electrical construction revenue. Because of improved results
in the electrical construction segment, the Company's operating
income for the nine months ended September
30, 2012 dramatically increased by $11.4 million to $10.7
million from an operating loss of $677,000 in the same period in 2011.
Income from continuing operations before tax for the nine months
ended September 30, 2012,
significantly increased to $10.5
million from a loss of $753,000 for the same period in 2011, as a result
of our improvements in revenue and operating income from the
electrical construction segment.
Net income for the nine months ended September 30, 2012 increased to $7.7 million, or $0.30 per share, from a net loss of $774,000, or $(0.03) loss per share, in the comparable prior
year period.
For the nine months ended September 30,
2012, the electrical construction segment's operating
results showed substantial improvement with revenue increasing from
$20.3 million to $54.7 million, and
operating income increasing from $894,000 to
$12.7 million. Growth in this segment reflects a
broad-based improvement across all areas of our electrical
construction business, with particularly strong growth in
Texas.
With no significant real estate projects under construction,
results for the real estate segment remain relatively
constant. For the nine months ended September 30, 2012, the real estate segment had
revenue of $1.2 million and operating
income of $114,000, compared to
revenue of $1.1 million and operating
income of $92,000, respectively, for
the like period in 2011.
Three Months Ended September 30,
2012
Revenue for the three months ended September 30, 2012, increased by $14.7 million to $19.7
million from $5.0 million in
the comparable prior year period. The Company's operating
income for the three months ended September
30, 2012 jumped to $4.0
million, compared to an operating loss of $755,000 for the same period in 2011.
Income from continuing operations before tax for the three
months ended September 30, 2012,
increased to $3.9 million from a loss
of $803,000 in the same three month
period in 2011, also as a result of the improvement in our
electrical construction segment.
Net income for the three months ended September 30, 2012 was $2.6 million, or $0.10 per share, compared to a net loss of
$795,000, or $(0.03) loss per share, in the comparable prior
year period.
For the three months ended September 30,
2012, the electrical construction segment's operating
results improved significantly with revenue increasing to
$19.1 million from $4.7 million and operating income increasing to
$4.6 million, from an operating loss
of $231,000. The increase in
revenue was also largely attributable to an increase in demand for
our electrical construction services, particularly our transmission
work, for the current three-month period, when compared to the same
period in 2011.
For the three-month periods ended September 30, 2012 and 2011, the results of the
real estate segment were not significant.
John H. Sottile, Goldfield's
President and Chief Executive Officer stated, "We are pleased with
the continued growth of our electrical construction business.
With our electrical construction backlog at September 30th reaching $53.6 million (compared to $7.0 million at this time last year), the
prospects for this business remain highly positive. About
$24.4 million of the current backlog
is expected to be completed in the fourth quarter of this
year."
Mr. Sottile further said, "The dramatic increase in revenue from
transmission line construction has been accompanied by a marked
improvement in operating margins. A major portion of our
current backlog is represented by a large transmission line project
in Texas scheduled for completion
in August 2013. With the strong
team we have assembled, we believe we are well positioned to take
advantage of future opportunities to build on our record
growth."
About Goldfield
Goldfield is a leading provider of electrical construction and
maintenance services in the energy infrastructure industry
primarily in the southeastern, mid-Atlantic, and western regions of
the United States. The company specializes in installing and
maintaining electrical transmission lines for a wide range of
electric utilities. Goldfield is also involved, to a much
lesser extent, in real estate development activities on
Florida's east coast.
For additional information on our third quarter results, please
refer to our Quarterly Report on Form 10-Q being filed with the
Securities and Exchange Commission and visit the Company's website
at 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 concentration of revenue from a limited
number of utility customers; 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; and 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; ability to obtain necessary permits from regulatory
agencies; our ability to maintain or increase historical revenue
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. Other 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
|
Consolidated Statements Of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenue
|
|
|
|
|
|
|
|
|
|
Electrical
construction
|
$
19,127,906
|
|
$
4,708,188
|
|
$
54,712,899
|
|
$
20,323,263
|
|
Real
estate development
|
550,510
|
|
307,175
|
|
1,189,810
|
|
1,082,947
|
|
|
Total
revenue
|
19,678,416
|
|
5,015,363
|
|
55,902,709
|
|
21,406,210
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
Electrical
construction
|
13,474,473
|
|
4,329,817
|
|
39,385,078
|
|
17,125,358
|
|
Real
estate development
|
381,956
|
|
288,446
|
|
780,479
|
|
719,335
|
|
Selling,
general and administrative
|
858,009
|
|
544,193
|
|
2,622,729
|
|
2,098,402
|
|
Depreciation
|
953,604
|
|
608,483
|
|
2,573,045
|
|
2,133,515
|
|
Loss
(gain) on sale of property and equipment
|
42,757
|
|
(221)
|
|
(154,502)
|
|
6,221
|
|
|
Total
costs and expenses
|
15,710,799
|
|
5,770,718
|
|
45,206,829
|
|
22,082,831
|
|
|
Total operating income
(loss)
|
3,967,617
|
|
(755,355)
|
|
10,695,880
|
|
(676,621)
|
|
|
|
|
|
|
|
|
|
|
Other
(expense) income, net
|
|
|
|
|
|
|
|
|
Interest
income
|
5,974
|
|
6,552
|
|
17,300
|
|
19,238
|
|
Interest
expense
|
(106,513)
|
|
(56,304)
|
|
(207,515)
|
|
(123,377)
|
|
Other
income, net
|
605
|
|
2,467
|
|
21,157
|
|
27,712
|
|
|
Total
other expense, net
|
(99,934)
|
|
(47,285)
|
|
(169,058)
|
|
(76,427)
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations before income taxes
|
3,867,683
|
|
(802,640)
|
|
10,526,822
|
|
(753,048)
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
1,253,117
|
|
(8,057)
|
|
2,821,728
|
|
21,836
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
2,614,566
|
|
(794,583)
|
|
7,705,094
|
|
(774,884)
|
|
|
|
|
|
|
|
|
|
|
Gain from
discontinued operations, net of tax
provision of $0 in 2012 and 2011
|
|
|
|
|
|
|
|
-
|
|
-
|
|
-
|
|
992
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
2,614,566
|
|
$
(794,583)
|
|
$
7,705,094
|
|
$
(773,892)
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per share of common stock - basic and diluted
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.10
|
|
$
(0.03)
|
|
$
0.30
|
|
$
(0.03)
|
|
Discontinued operations
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
Net income
(loss)
|
$
0.10
|
|
$
(0.03)
|
|
$
0.30
|
|
$
(0.03)
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
8,875,581
|
|
$
3,319,824
|
|
Accounts
receivable and accrued billings, net
|
|
8,835,427
|
|
8,991,109
|
|
Real
estate inventory
|
|
-
|
|
346,829
|
|
Costs and
estimated earnings in excess of
|
|
|
|
|
|
|
billings
on uncompleted contracts
|
|
5,574,909
|
|
946,525
|
|
Deferred
income taxes
|
|
1,264,892
|
|
-
|
|
Residential properties under
construction
|
|
246,242
|
|
222,818
|
|
Prepaid
expenses
|
|
1,422,301
|
|
399,458
|
|
Other
current assets
|
|
348,602
|
|
188,033
|
|
|
Total
current assets
|
|
26,567,954
|
|
14,414,596
|
|
|
|
|
|
|
|
|
Property,
buildings and equipment, at cost, net
|
|
24,063,615
|
|
10,481,705
|
Notes
receivable, less current portion
|
|
163,420
|
|
196,632
|
Deferred
charges and other assets
|
|
3,238,272
|
|
1,518,004
|
Total
assets
|
|
$
54,033,261
|
|
$
26,610,937
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable and accrued liabilities
|
|
$
8,513,218
|
|
$
3,639,919
|
|
Current
portion of notes payable
|
|
3,876,907
|
|
1,791,429
|
|
Income
taxes payable
|
|
211,619
|
|
-
|
|
Other
current liabilities
|
|
169,492
|
|
934,714
|
|
|
Total
current liabilities
|
|
12,771,236
|
|
6,366,062
|
Deferred
income taxes
|
|
3,566,908
|
|
-
|
Other
accrued liabilities
|
|
8,776
|
|
1,595
|
Notes
payable, less current portion
|
|
14,649,047
|
|
4,911,080
|
Total
liabilities
|
|
30,995,967
|
|
11,278,737
|
Commitments and contingencies
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
Common
stock
|
|
2,781,377
|
|
2,781,377
|
|
Capital
surplus
|
|
18,481,683
|
|
18,481,683
|
|
Retained
earnings (accumulated deficit)
|
|
3,082,421
|
|
(4,622,673)
|
|
Common
stock in treasury, at cost
|
|
(1,308,187)
|
|
(1,308,187)
|
|
|
Total
stockholders' equity
|
|
23,037,294
|
|
15,332,200
|
Total
liabilities and stockholders' equity
|
|
$
54,033,261
|
|
$
26,610,937
|
|
|
|
|
|
|
|
|
SOURCE The Goldfield Corporation