Exhibit 99.1
GOLDFIELD ANNOUNCES FIRST QUARTER RESULTS
MELBOURNE, Florida, May 13, 2008 - 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, 2008.
Revenues for the three months ended March 31, 2008 were $7.3 million and the Company had an operating loss of $625,000, compared to revenues of $9.8 million and operating loss of $472,000 in the first quarter of 2007.
The real estate development segment was the principal factor in the decline in first quarter results. In this quarter, the Company had no projects under construction, and, because of the current adverse real estate environment, very limited condominium sales. Revenues declined in this segment, from $2.5 million in the first quarter of 2007 to $0.5 million in the current quarter, and operating income declined from $558,000 to a loss of $150,000.
In the 2008 quarter, the electrical construction segment experienced a small revenue decline from $7.4 million to $6.8 million, but improved operating income of $257,000, compared to an operating loss of $191,000 in the like 2007 period.
The net loss for the first quarter of 2008 was $470,000 ($0.02 per share), compared to a net loss of $347,000 ($0.01 per share) in the like 2007 period.
Commenting on first quarter results, John H. Sottile, President of Goldfield stated that “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. Roughly half of the units in Pineapple House have been sold, and many are occupied.” With respect to electrical construction, Mr. Sottile stated that “the general slowdown in demand for electrical construction services in Florida has restrained growth, but the Company has benefited from higher productivity on several current construction jobs.”
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.
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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; adverse weather; our ability to estimate accurately with respect to fixed price construction contracts; heightened competition in the electrical construction field, including intensification of price competition, and the availability of skilled construction labor. Factors that may affect the results of our real estate development operations include, among others: interest rates; ability to obtain necessary permits from regulatory agencies; adverse legislation or regulations; ability to acquire land; our ability to maintain or increase historical revenues and profit margins; our ability to collect contracts receivable and close homes in backlog, particularly related to buyers purchasing homes as investments; availability of labor and materials and material increases in labor and material costs; ability to obtain additional construction financing; increases in interest rates and availability of mortgage financing; increases in construction and homeowner insurance and the availability of insurance; the level of consumer confidence; the negative impact of claims for contract rescission or cancellation by unit purchasers due to various factors including the increase in the cost of condominium insurance; adverse weather; natural disasters; changes in generally accepted accounting principles; the continued weakness in the Florida condominium market and general economic conditions, both nationally and in our region. 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 | |
| | | March 31, | |
| | | 2008 | | 2007 | |
| | | | | | |
| Revenue | | | | | |
| Electrical construction | | $ | 6,832,183 | | $ | 7,354,043 | |
| Real estate development | | | 492,341 | | | 2,454,432 | |
| Total revenue | | | 7,324,524 | | | 9,808,475 | |
| | | | | | | | |
| Costs and expenses | | | | | | | |
| Electrical construction | | | 5,634,741 | | | 6,801,704 | |
| Real estate development | | | 476,983 | | | 1,693,925 | |
| Selling, general and administrative | | | 978,999 | | | 1,050,971 | |
| Depreciation | | | 855,573 | | | 742,347 | |
| Loss (gain) on sale of assets | | | 3,617 | | | (8,857 | ) |
| Total costs and expenses | | | 7,949,913 | | | 10,280,090 | |
| Total operating loss | | | (625,389 | ) | | (471,615 | ) |
| | | | | | | | |
| Other income (expense), net | | | | | | | |
| Interest income | | | 30,485 | | | 61,332 | |
| Interest expense, net | | | (125,044 | ) | | (79,645 | ) |
| Other | | | 6,957 | | | 9,149 | |
| Minority interest | | | (3,196 | ) | | - | |
| Total other expenses, net | | | (90,798 | ) | | (9,164 | ) |
| | | | | | | | |
| | | | | | | | |
| Loss from continuing operations before income taxes | | | (716,187 | ) | | (480,779 | ) |
| | | | | | | | |
| Income tax benefit | | | (245,743 | ) | | (133,768 | ) |
| Net loss | | $ | (470,444 | ) | $ | (347,011 | ) |
| | | | | | | | |
| | | | | | | | |
| Loss per share of common stock - basic and diluted | | $ | (0.02 | ) | $ | (0.01 | ) |
| | | | | | | | |
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 | | 2008 | | 2007 | |
| Current assets | | | | | |
| Cash and cash equivalents | | $ | 4,276,901 | | $ | 3,984,613 | |
| Accounts receivable and accrued billings | | | 5,014,197 | | | 5,881,430 | |
| Remediation insurance receivable | | | 176,827 | | | 176,827 | |
| Current portion of notes receivable | | | 52,237 | | | 49,108 | |
| Construction inventory | | | - | | | 2,218 | |
| Real estate inventory | | | 7,363,195 | | | 7,788,739 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | | | 1,665,111 | | | 1,658,712 | |
| Prepaid expenses and other current assets | | | 2,325,821 | | | 1,933,869 | |
| Total current assets | | | 20,874,289 | | | 21,475,516 | |
| | | | | | | | |
| Property, buildings and equipment, at cost, net | | | 9,700,300 | | | 9,803,794 | |
| Notes receivable, less current portion | | | 340,550 | | | 352,305 | |
| Deferred charges and other assets | | | 1,451,250 | | | 1,235,391 | |
| Total assets | | $ | 32,366,389 | | $ | 32,867,006 | |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | |
| Current liabilities | | | | | | | |
| Accounts payable and accrued liabilities | | $ | 2,746,364 | | $ | 1,984,352 | |
| Billings in excess of costs and estimated earnings on uncompleted contracts | | | 4,072 | | | - | |
| Current portion of notes payable | | | 4,898,989 | | | 5,202,466 | |
| Current portion of capital leases | | | 309,910 | | | 315,619 | |
| Current liabilities of discontinued operations | | | 183,258 | | | 198,850 | |
| Total current liabilities | | | 8,142,593 | | | 7,701,287 | |
| | | | | | | | |
| Deferred income taxes | | | 258,500 | | | 346,200 | |
| Other accrued liabilities | | | 28,132 | | | 26,894 | |
| Notes payable, less current portion | | | 1,874,322 | | | 2,184,932 | |
| Capital leases, less current portion | | | 501,754 | | | 579,357 | |
| Total liabilities | | | 10,805,301 | | | 10,838,670 | |
| Commitments and contingencies | | | | | | | |
| Minority interest | | | 6,557 | | | 3,361 | |
| Stockholders' equity | | | | | | | |
| Common stock | | | 2,781,377 | | | 2,781,377 | |
| Capital surplus | | | 18,481,683 | | | 18,481,683 | |
| Retained earnings | | | 1,599,658 | | | 2,070,102 | |
| Common stock in treasury, at cost | | | (1,308,187 | ) | | (1,308,187 | ) |
| Total stockholders' equity | | | 21,554,531 | | | 22,024,975 | |
| Total liabilities and stockholders' equity | | $ | 32,366,389 | | $ | 32,867,006 | |
