Exhibit 99.1
GOLDFIELD ANNOUNCES FIRST QUARTER RESULTS
MELBOURNE, Florida, May 15, 2007 - The Goldfield Corporation (AMEX: GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums, today announced results for the three months ended March 31, 2007.
Revenues for the three months ended March 31, 2007 were $9.8 million and the Company had an operating loss of $472,000, compared to revenues of $14.0 million and operating income of $1.9 million in the three months ended March 31, 2006.
Revenues in the first quarter of 2007 reflect decreases in both the electrical construction segment and the real estate development segment. The decrease in the electrical construction segment revenues was primarily due to a slowdown in demand for the Company’s electrical construction services. The decrease in the real estate development segment revenues was mainly due to the fact that during the quarter ended March 31, 2007, the Company had only one project, Pineapple House, under construction, with respect to which most of the revenues had been previously recognized. In the quarter ended March 31, 2006, the Company had begun the Pineapple House project and recognized $2.3 million in revenue on Pineapple House as well as $1.2 million in revenue from the Oak Park project.
For the three months ended March 31, 2007, the electrical construction segment had an operating loss of $191,000 compared to operating income of $1.8 million in the comparable prior year period, and the real estate development segment had operating income of $558,000 for the three months ended March 31, 2007 compared to operating income of $894,000 in the three months ended March 31, 2006. In both cases these decreases were primarily due to the same factors that affected revenues as described above and, with respect to the electrical construction segment, unanticipated costs associated with delays arising during the course of completion of certain of the Company’s current projects. Although the company continues to make good process towards completion of the first phase of the Pineapple House project, the continuing slowdown in the Florida real estate market has adversely affected the Company’s ability to market the remaining available units in this project.
Net loss for the first quarter of 2007 was $347,000 or $0.01 per share, compared to net earnings of $1.1 million or $0.04 per share in the comparable prior year quarter.
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.
Statements in this release are based on current expectations. These statements are forward-looking, and actual results may differ materially. For example, electrical construction projects are generally subject to cancellation and, in the real estate segment, there can be no assurance that settlements of condominiums subject to contracts for sale will occur or that construction will progress as expected. For further details, see the company's filings with the Securities and Exchange Commission.
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 | |
| | | March 31, | |
| | | 2007 | | 2006 | |
| Revenue | | | | | |
| Electrical construction | | $ | 7,354,043 | | $ | 10,492,005 | |
| Real estate development | | | 2,454,432 | | | 3,502,947 | |
| Total revenue | | | 9,808,475 | | | 13,994,952 | |
| | | | | | | | |
| Costs and expenses | | | | | | | |
| Electrical construction | | | 6,801,704 | | | 8,123,209 | |
| Real estate development | | | 1,693,925 | | | 2,321,429 | |
| Depreciation | | | 742,347 | | | 599,291 | |
| Selling, general and administrative | | | 1,050,971 | | | 1,098,355 | |
| Gain on sale of assets | | | (8,857 | ) | | (18,310 | ) |
| Total costs and expenses | | | 10,280,090 | | | 12,123,974 | |
| Total operating income (loss) | | | (471,615 | ) | | 1,870,978 | |
| | | | | | | | |
| Other income (expense), net | | | | | | | |
| Interest income | | | 61,332 | | | 24,712 | |
| Interest expense, net | | | (79,645 | ) | | (36,991 | ) |
| Other | | | 9,149 | | | 3,494 | |
| Total other expenses, net | | | (9,164 | ) | | (8,785 | ) |
| | | | | | | | |
| Income (loss) from continuing operations | | | | | | | |
| before income taxes | | | (480,779 | ) | | 1,862,193 | |
| | | | | | | | |
| Income taxes | | | (133,768 | ) | | 717,702 | |
| Net income (loss) | | $ | (347,011 | ) | $ | 1,144,491 | |
| | | | | | | | |
| Earnings (loss) per share of common stock - | | | | | | | |
| basic and diluted | | $ | (0.01 | ) | $ | 0.04 | |
| | | | | | | | |
| Weighted average number of common shares | | | | | | | |
| outstanding - basic and diluted | | | 25,451,354 | | | 25,572,192 | |
The Goldfield Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
| | | March 31, | | December 31, | |
| ASSETS | | 2007 | | 2006 | |
| Current assets | | | | | |
| Cash and cash equivalents | | $ | 5,493,886 | | $ | 6,801,600 | |
| Accounts receivable and accrued billings, net | | | 5,515,326 | | | 4,908,511 | |
| Contracts receivable | | | 12,778,842 | | | 10,623,909 | |
| Remediation insurance receivable | | | 273,349 | | | 329,888 | |
| Current portion of notes receivable | | | 38,529 | | | 41,453 | |
| Construction inventory | | | 62,774 | | | 216,989 | |
| Real estate inventories | | | 600,220 | | | 801,411 | |
| Costs and estimated earnings in excess of | | | | | | | |
| billings on uncompleted contracts | | | 2,740,847 | | | 2,358,738 | |
| Residential properties under construction | | | 5,055,555 | | | 3,784,165 | |
| Prepaid expenses and other current assets | | | 1,897,518 | | | 1,022,377 | |
| Total current assets | | | 34,456,846 | | | 30,889,041 | |
| | | | | | | | |
| Property, buildings and equipment, at cost, net | | | 11,049,528 | | | 9,465,378 | |
| Notes receivable, less current portion | | | 389,975 | | | 407,409 | |
| Deferred charges and other assets | | | 1,530,862 | | | 1,142,348 | |
| Total assets | | $ | 47,427,211 | | $ | 41,904,176 | |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | |
| Current liabilities | | | | | | | |
| Accounts payable and accrued liabilities | | $ | 5,489,490 | | $ | 5,359,893 | |
| Billings in excess of costs and estimated | | | | | | | |
| earnings on uncompleted contracts | | | - | | | 24,444 | |
| Notes payable | | | 12,935,727 | | | 8,663,768 | |
| Capital leases, due within one year | | | 323,532 | | | 317,160 | |
| Current liabilities of discontinued operations | | | 166,411 | | | 208,221 | |
| Total current liabilities | | | 18,915,160 | | | 14,573,486 | |
| | | | | | | | |
| Deferred income taxes | | | 861,400 | | | 861,400 | |
| Other accrued liabilities | | | 23,178 | | | 20,821 | |
| Notes payable, less current portion | | | 2,817,072 | | | 1,207,745 | |
| Capital leases, less current portion | | | 811,664 | | | 894,976 | |
| Total liabilities | | | 23,428,474 | | | 17,558,428 | |
| Commitments and contingencies | | | | | | | |
| Stockholders' equity | | | | | | | |
| Common stock | | | 2,781,377 | | | 2,781,377 | |
| Capital surplus | | | 18,481,683 | | | 18,481,683 | |
| Retained earnings | | | 4,043,864 | | | 4,390,875 | |
| Common stock in treasury, at cost | | | (1,308,187 | ) | | (1,308,187 | ) |
| Total stockholders' equity | | | 23,998,737 | | | 24,345,748 | |
| Total liabilities and stockholders' equity | | $ | 47,427,211 | | $ | 41,904,176 | |
