Goldfield Announces 2010 Results

Mar 30, 2011, 16:16 ET from Goldfield Corporation

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

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2010

2009

2010

2009

Revenue

Electrical construction

$        8,192,832

$        6,212,590

$      31,384,594

$      27,772,466

Real estate development

554,559

329,000

1,983,385

1,473,800

Total revenue

8,747,391

6,541,590

33,367,979

29,246,266

Costs and expenses

Electrical construction

6,604,643

6,345,008

26,310,355

24,971,857

Real estate development

515,995

224,431

1,360,751

1,054,233

Selling, general and administrative

639,837

476,205

2,959,841

2,872,966

Depreciation

670,598

654,550

2,757,263

2,797,621

Loss (gain) on sale of assets

8,155

3,840

(2,168)

(48,863)

Total costs and expenses

8,439,228

7,704,034

33,386,042

31,647,814

    Total operating income (loss)

308,163

(1,162,444)

(18,063)

(2,401,548)

Other (expenses) income, net

Interest income

11,967

7,667

33,156

34,708

Interest expense, net

(32,020)

(12,715)

(134,940)

(123,590)

Other (expenses) income, net

1,881

5,333

19,725

25,564

Total other expenses, net

(18,172)

285

(82,059)

(63,318)

Income (loss) from continuing operations before income taxes

289,991

(1,162,159)

(100,122)

(2,464,866)

Income tax provision

6,297

(515,320)

34,601

(537,358)

Income (loss) from continuing operations

283,694

(646,839)

(134,723)

(1,927,508)

(Loss) gain from discontinued operations, net of tax

(104,832)

-

(117,834)

387

Net income (loss)

$           178,862

$         (646,839)

$         (252,557)

$      (1,927,121)

Income (loss) per share of common stock - basic and diluted

Continuing operations

$                 0.01

$               (0.03)

$               (0.01)

$               (0.08)

Discontinued operations

-

-

-

-

Net income (loss)

$                 0.01

$               (0.03)

$               (0.01)

$               (0.08)

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)

December 31,

2010

2009

ASSETS

Current assets

Cash and cash equivalents

$        4,174,518

$        3,534,993

Accounts receivable and accrued billings, net

4,393,659

3,740,047

Real estate inventory  

774,584

1,456,682

Costs and estimated earnings in excess of

billings on uncompleted contracts

1,254,054

1,625,835

Income taxes recoverable

-

819,027

Prepaid expenses and other current assets

476,872

536,425

Total current assets

11,073,687

11,713,009

Property, buildings and equipment, at cost, net

8,232,306

8,292,973

Notes receivable, less current portion

237,714

275,513

Deferred charges and other assets

1,415,775

1,380,703

Total assets

$      20,959,482

$      21,662,198

   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued liabilities

$        2,418,056

$        1,994,458

Contract loss accruals

65,989

512,079

Current portion of notes payable

1,176,552

2,130,666

Other current liabilities

213,315

4,778

Total current liabilities

3,873,912

4,641,981

Other accrued liabilities

17,094

25,234

Notes payable, less current portion

2,610,000

2,283,950

Total liabilities

6,501,006

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

(5,496,397)

(5,243,840)

Common stock in treasury, at cost

(1,308,187)

(1,308,187)

Total stockholders' equity

14,458,476

14,711,033

Total liabilities and stockholders' equity

$      20,959,482

$      21,662,198

SOURCE Goldfield Corporation



RELATED LINKS

http://www.goldfieldcorp.com