MELBOURNE, Fla., May 14 /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 improved results for the
three months ended March 31, 2009. For the three months ended March
31, 2009 revenues increased 21.5% to $8.9 million, compared to
revenues of $7.3 million in the first quarter of 2008, and the
Company had operating income of $446,000 in the current period,
compared to an operating loss of $625,000 in the first quarter of
2008. The higher first quarter results were driven by strong
performance in the electrical construction segment. Electrical
construction revenues for the quarter increased 30.3% to $8.9
million, an increase of $2.1 million over the prior year quarter.
The improvement in revenues in this segment is primarily due to an
increase in projects, including storm restoration work in Missouri
as a result of damage due to ice storms. Operating income from
electrical construction operations almost quadrupled to $1.3
million from $257,000 in the three months ended March 31, 2008, due
primarily to improved productivity on several jobs in the current
period compared to the same period last year, as well as the
increase in revenue resulting from the higher level of activity,
which covers a higher percentage of fixed overhead costs. In the
first quarter of 2009, the real estate development segment produced
no revenues because of the continued depressed state of the real
estate market in Florida, as compared to revenues of $492,000 in
the first quarter of 2008. Results of operations for the real
estate development segment remained essentially comparable with an
operating loss of $159,000 for the current quarter, compared to an
operating loss of $150,000 in the prior year quarter. Net income
for the first quarter of 2009 was $412,000 ($0.02 per share),
compared to a net loss of $470,000 ($0.02 per share) in the like
2008 period. Commenting on first quarter results, John H. Sottile,
President of Goldfield stated that "given the current state of the
economy, we have to be pleased with our results this quarter. I am
encouraged by the rebound in electrical construction activity we
have seen this year, and the strong performance and increased
productivity of our electrical construction operations." Mr.
Sottile continued, "despite the current real estate depression in
Florida, the Company's real estate exposure is very manageable,
with no projects under construction and its current project,
Pineapple House, completed and well-received. More than half of the
units in Pineapple House have been sold, and many are occupied."
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 level of consumer confidence;
the continued weakness in the Florida condominium 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; 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: THE
GOLDFIELD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) Three Months Ended March 31, 2009 2008
--------- ---------- Revenue Electrical construction $8,900,868
$6,832,183 Real estate development - 492,341 ---------- ----------
Total revenue 8,900,868 7,324,524 ---------- ---------- Cost and
expense Electrical construction 6,773,985 5,634,741 Real estate
development 47,287 476,983 Selling, general and administrative
873,605 978,999 Depreciation 760,189 855,573 Gain on sale of assets
- 3,617 ---------- ---------- Total cost and expense 8,455,066
7,949,913 ---------- --------- Total operating income (loss)
445,802 (625,389) ---------- ---------- Other income (expense), net
Interest income 8,865 30,485 Interest expense (46,590) (125,044)
Other income, net 13,102 6,957 Minority interest - (3,196)
---------- ---------- Total other expense, net (24,623) (90,798)
---------- ---------- Income (loss) from continuing operations
before income taxes 421,179 (716,187) Income tax expense (benefit)
9,633 (245,743) ---------- ---------- Net income (loss) $411,546
$(470,444) ========== ========== Income (loss) per share of common
stock - basic and diluted $0.02 $(0.02) ========== ==========
Weighted average number of common 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, ASSETS 2009 2008 -----------
----------- Current assets Cash and cash equivalents $4,752,800
$4,921,980 Accounts receivable and accrued billings 5,509,274
6,709,015 Remediation insurance receivable 89,457 99,375 Current
portion of notes receivable 44,706 54,169 Construction inventory
2,571 - Real estate inventory 2,323,756 2,323,756 Costs and
estimated earnings in excess of billings on uncompleted contracts
1,714,296 1,135,290 Prepaid expenses and other current assets
1,317,029 1,127,745 ----------- ----------- Total current assets
15,753,889 16,371,330 Property, buildings and equipment, at cost,
net 7,829,527 7,656,580 Notes receivable, less current portion
300,095 304,671 Deferred charges and other assets 1,115,004
1,165,953 ----------- ----------- Total assets $24,998,515
$25,498,534 =========== =========== LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities Accounts payable and accrued liabilities
$2,386,292 $2,932,690 Billings in excess of costs and estimated
earnings on uncompleted contracts - 7,564 Current portion of notes
payable 2,126,693 2,096,645 Current portion of capital leases
326,521 320,013 Reserve for remediation 125,163 153,368 -----------
----------- Total current liabilities 4,964,669 5,510,280 Other
accrued liabilities 28,539 28,423 Notes payable, less current
portion 2,780,374 3,062,333 Capital leases, less current portion
175,233 259,344 ----------- ----------- Total liabilities 7,948,815
8,860,380 ----------- ----------- Commitments and contingencies
Stockholders' equity Common stock 2,781,377 2,781,377 Capital
surplus 18,481,683 18,481,683 Accumulated deficit (2,905,173)
(3,316,719) Common stock in treasury, at cost (1,308,187)
(1,308,187) ----------- ----------- Total stockholders' equity
17,049,700 16,638,154 ----------- ----------- Total liabilities and
stockholders' equity $24,998,515 $25,498,534 ===========
=========== DATASOURCE: Goldfield Corporation CONTACT: The
Goldfield Corporation, +1-321-724-1700, Web Site:
http://www.goldfieldcorp.com/
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