MELBOURNE, Fla., Nov. 9 /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
nine and three months ended September 30, 2009. Revenue for the
nine months ended September 30, 2009 increased 8.8% to $22.7
million from $20.9 million in the nine months ended September 30,
2008. The Company's operating loss decreased to $1.2 million in the
current period from a $2.7 million operating loss during the same
period in 2008. Revenue for the three months ended September 30,
2009 decreased 17.2% to $6.6 million from $7.9 million in the three
months ended September 30, 2008. The Company's operating loss
decreased to $806,000 in the current quarter from $1.1 million
during the same period in 2008. Electrical construction revenue
increased by $2.7 million (14.6%) to $21.6 million for the nine
months ended September 30, 2009 from $18.8 million in the same
period last year. The improvement was primarily due to an increase
in ice storm restoration work in Missouri. For the three months
ended September 30, 2009, electrical construction revenue decreased
by $1.4 million (21.0%) to $5.4 million from $6.9 million for the
three months ended September 30, 2008, primarily due to a decrease
in fiber optic contract work during the most recent quarter.
Operating income from electrical construction operations increased
to $721,000 for the nine months ended September 30, 2009 from an
operating loss of $236,000 for the same period in 2008. This
increase primarily resulted from improved productivity on several
jobs and an improved ratio of revenue to fixed overhead costs.
Electrical construction operations had an operating loss of
$426,000 and $302,000 for the three months ended September 30, 2009
and 2008, respectively. This change was mainly due to reduced
revenue from higher margin fiber optic projects compared to the
same period in the prior year. Real estate revenue decreased to
$1.1 million for the nine months ended September 30, 2009 from $2.1
million over the same period in 2008. The decrease in revenue was
primarily due to a decrease in the number of units sold and lower
sales prices for the units sold, with five Pineapple House units
sold during the nine months ended September 30, 2009 compared to
the sale of six units (three Pineapple House units and three Oak
Park units) for the same period in the prior year. For the three
months ended September 30, 2009 and the like period in 2008 real
estate revenue remained level at $1.1 million. Real estate
development operations had operating income of $13,000 in the nine
months ended September 30, 2009, compared to an operating loss of
$499,000 in the nine months ended September 30, 2008. The increase
in operating income for the nine month period ended September 30,
2009 was mainly due to the previously reported write-down in the
fourth quarter of 2008 on the then existing Pineapple House
inventory. Real estate development operations had operating income
of $273,000 in the three months ended September 30, 2009, compared
to an operating loss of $189,000 in the three months ended
September 30, 2008, mainly due to the aforementioned write-down.
Net loss for the nine months ended September 30, 2009 decreased to
$1.3 million ($0.05 net loss per share) from a net loss of $1.9
million ($0.08 net loss per share) in the comparable prior year
period. Net loss for the three months ended September 30, 2009 was
$789,000 ($0.03 net loss per share) compared to net loss of
$790,000 ($0.03 net loss per share) in the comparable prior year
quarter. Commenting on third quarter results, John H. Sottile,
President of Goldfield stated that "given current economic and
market conditions, we are pleased with the overall improvement in
our year to date results." With respect to the Company's real
estate development operations, Mr. Sottile noted "notwithstanding
the current weakness in the Florida real estate market, we have
continued to sell units at our Pineapple House project. Unlike many
of our competitors, the Company's real estate exposure is very
manageable, and Pineapple House, our most recently completed
project, has been well received, with over 70% of the units sold."
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 Nine Months Ended
September 30, September 30, 2009 2008 2009 2008 -------- --------
-------- -------- Revenue Electrical construction $5,425,834
$6,869,416 $21,559,876 $18,818,538 Real estate development
1,144,800 1,070,545 1,144,800 2,054,572 --------- ---------
---------- ---------- Total revenue 6,570,634 7,939,961 22,704,676
20,873,110 --------- --------- ---------- ---------- Costs and
expense Electrical construction 5,218,563 6,417,692 18,626,849
16,466,838 Real estate development 741,290 1,062,364 829,803
1,991,467 Selling, general and administrative 827,839 806,892
2,396,761 2,616,309 Depreciation 587,840 720,860 2,143,071
2,429,350 Write down of inventory - - - 36,502 Provision for
doubtful accounts - - - 27,078 Loss (gain) on sale of assets 761
500 (52,704) 7,428 --------- --------- ---------- ---------- Total
costs and expense 7,376,293 9,008,308 23,943,780 23,574,972
--------- --------- ---------- ---------- Total operating loss
(805,659) (1,068,347) (1,239,104) (2,701,862) -------- ---------
--------- --------- Other income (expense), net Interest income
9,607 61,532 27,041 113,628 Interest expense (22,898) (91,064)
(110,875) (315,153) Other income 11,154 67 20,230 4,950 --------
-------- -------- -------- Total other expense, net (2,137)
(29,465) (63,604) (196,575) -------- -------- -------- --------
Loss from continuing operations before income taxes (807,796)
(1,097,812) (1,302,708) (2,898,437) Income tax benefit (22,039)
(400,371) (22,039) (1,047,320) -------- -------- -------- ---------
Loss from continuing operations (785,757) (697,441) (1,280,669)
(1,851,117) (Loss) gain from discontinued operations, net of tax
(2,981) (92,642) 387 (92,642) -------- -------- -------- --------
Net loss $(788,738) $(790,083)$(1,280,282)$(1,943,759) =======
======= ========= ========= Loss per share of common stock - basic
and diluted Continuing operations $(0.03) $(0.03) $(0.05) $(0.08)
Discontinued operations - - - - -------- -------- -------- --------
Net loss $(0.03) $(0.03) $(0.05) $(0.08) ========== =========
========== ========== Weighted average number of common 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, ASSETS 2009
2008 ------------- ------------ Current assets Cash and cash
equivalents $4,177,764 $4,921,980 Accounts receivable and accrued
billings 3,374,542 6,709,015 Remediation insurance receivable
34,128 99,375 Current portion of notes receivable 43,127 54,169
Construction inventory - - Real estate inventory 1,630,097
2,323,756 Costs and estimated earnings in excess of billings on
uncompleted contracts 1,252,942 1,135,290 Prepaid expenses and
other current assets 1,183,006 1,127,745 --------- --------- Total
current assets 11,695,606 16,371,330 Property, buildings and
equipment, at cost, net 7,435,324 7,656,580 Notes receivable, less
current portion 284,488 304,671 Deferred charges and other assets
1,477,138 1,165,953 --------- --------- Total assets $20,892,556
$25,498,534 =========== =========== LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities Accounts payable and accrued liabilities
$1,890,133 $2,932,690 Billings in excess of costs and estimated
earnings on uncompleted contracts 970 7,564 Current portion of
notes payable 3,425,872 2,096,645 Current portion of capital leases
- 320,013 Reserve for remediation 5,579 153,368 --------- ---------
Total current liabilities 5,322,554 5,510,280 Other accrued
liabilities 26,335 28,423 Notes payable, less current portion
185,795 3,062,333 Capital leases, less current portion - 259,344
--------- --------- Total liabilities 5,534,684 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 (4,597,001) (3,316,719) Common stock in
treasury, at cost (1,308,187) (1,308,187) ---------- ----------
Total stockholders' equity 15,357,872 16,638,154 ----------
---------- Total liabilities and stockholders' equity $20,892,556
$25,498,534 =========== =========== DATASOURCE: Goldfield
Corporation CONTACT: The Goldfield Corporation, +1-321-724-1700,
Web Site: http://www.goldfieldcorp.com/
Copyright