Exhibit 99.1
| | |
 | | Press Release |
GOLDFIELD ANNOUNCES SECOND QUARTER 2011 RESULTS
MELBOURNE, Florida, August 8, 2011 - The Goldfield Corporation (NYSE Amex: GV) today announced results for the six and three months ended June 30, 2011. The Goldfield Corporation is a leading provider of electrical construction services in the Southeast with operations throughout the United States. Goldfield is also engaged in real estate development activities.
Revenue for the six months ended June 30, 2011, decreased 4.1% to $16.4 million from $17.1 million in the like period last year. This decrease in revenue was mainly due to the decrease in electrical construction revenue. The Company’s operating income for the six months ended June 30, 2011, improved to $79,000, compared to an operating loss of $220,000, in the same period in 2010.
Revenue for the three months ended June 30, 2011, decreased 12.8% to $7.5 million from $8.6 million for the three months ended June 30, 2010. The Company’s operating income for the three months ended June 30, 2011, improved to $80,000, compared to an operating loss of $366,000 in 2010.
For the six months ended June 30, 2011, the electrical construction segment had revenue of $15.6 million and operating income of $1.1 million, compared to revenue of $16.2 million and operating income of $932,000 in the same prior year period. The decrease in revenue was mainly due to a decrease in the volume of fiber optic cable installation and fiber splicing work, during the six month period ended June 30, 2011. The increase in operating income was largely the result of improved productivity coupled with higher margin projects. For the three months ended June 30, 2011, the electrical construction segment had revenue of $7.5 million and operating income of $797,000, compared to revenue of $8.6 million and operating income of $337,000 in 2010. The decrease in revenue was mainly due to a decrease in activity in fiber optic work during the second quarter 2011. The increase in operating income was largely the result of improved productivity on several transmission projects.
For the six months ended June 30, 2011, the real estate development segment had revenue of $776,000 and operating income of $156,000, compared to revenue of $896,000 and operating income of $170,000, in the prior year period. During the six months ended June 30, 2011, the Company sold two condominium units from the Pineapple House project, compared to three such units in the same period last year. For the three months ended June 30, 2011, the real estate development segment had rental revenue of $10,000, compared to no revenue for the three months ended June 30, 2010. Real estate development operations had an operating loss of $69,000 for the three months ended June 30, 2011, compared to an operating loss of $81,000 during the same period in 2010, an improvement of $13,000. This improvement was mainly due to the aforementioned rental revenue.
Net income for the six months ended June 30, 2011, was $21,000 or $0.00 per share, compared to a net loss of $275,000 or ($0.01) net loss per share, in the comparable prior year period. Net income for the three months ended June 30, 2011, was $32,000 or $0.00 per share, compared to a net loss of $389,000 or ($0.02) loss per share, in the comparable prior year quarter.
Commenting on the Company’s second quarter results, John H. Sottile, Goldfield’s President and Chief Executive Officer stated, “Given the Company’s ongoing expansion efforts in our electrical construction operations, I am pleased that we have been able to increase our productivity, as reflected in our improved operating results.” With respect to the Company’s real estate development operations, Mr. Sottile noted, “we have continuing sales at Pineapple House at prices above our carrying values. With only three units remaining unsold in our only real estate project, Pineapple House, our remaining exposure to the depressed Florida real estate market is extremely limited.”
About Goldfield
Goldfield is a leading provider of electrical construction and maintenance services in the energy infrastructure industry throughout most of the 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; and 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; ability to obtain necessary permits from regulatory agencies; our ability to maintain or increase historical revenue 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. Other 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
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The Goldfield Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
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| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
Revenue | | | | | | | | | | | | | | | | |
Electrical construction | | $ | 7,460,544 | | | $ | 8,563,811 | | | $ | 15,615,074 | | | $ | 16,200,734 | |
Real estate development | | | 9,900 | | | | — | | | | 775,772 | | | | 896,026 | |
| | | | | | | | | | | | | | | | |
Total revenue | | | 7,470,444 | | | | 8,563,811 | | | | 16,390,846 | | | | 17,096,760 | |
| | | | | | | | | | | | | | | | |
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Costs and expenses | | | | | | | | | | | | | | | | |
Electrical construction | | | 5,786,562 | | | | 7,454,303 | | | | 12,795,541 | | | | 13,730,330 | |
Real estate development | | | 263 | | | | (140 | ) | | | 430,889 | | | | 493,378 | |
Selling, general and administrative | | | 807,143 | | | | 751,312 | | | | 1,554,208 | | | | 1,651,798 | |
Depreciation | | | 790,897 | | | | 724,594 | | | | 1,525,032 | | | | 1,441,438 | |
Loss on sale of assets | | | 5,727 | | | | — | | | | 6,442 | | | | — | |
| | | | | | | | | | | | | | | | |
Total costs and expenses | | | 7,390,592 | | | | 8,930,069 | | | | 16,312,112 | | | | 17,316,944 | |
| | | | | | | | | | | | | | | | |
Total operating income (loss) | | | 79,852 | | | | (366,258 | ) | | | 78,734 | | | | (220,184 | ) |
| | | | | | | | | | | | | | | | |
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Other income (expenses), net | | | | | | | | | | | | | | | | |
Interest income | | | 6,052 | | | | 6,896 | | | | 12,686 | | | | 14,166 | |
Interest expense, net | | | (40,070 | ) | | | (35,527 | ) | | | (67,073 | ) | | | (68,774 | ) |
Other income, net | | | 4,862 | | | | 15,178 | | | | 25,245 | | | | 24,926 | |
| | | | | | | | | | | | | | | | |
Total other income (expenses), net | | | (29,156 | ) | | | (13,453 | ) | | | (29,142 | ) | | | (29,682 | ) |
| | | | | | | | | | | | | | | | |
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Income (loss) from continuing operations before income taxes | | | 50,696 | | | | (379,711 | ) | | | 49,592 | | | | (249,866 | ) |
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Income tax provision | | | 19,737 | | | | 9,552 | | | | 29,893 | | | | 24,711 | |
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| | | | |
Income (loss) from continuing operations | | | 30,959 | | | | (389,263 | ) | | | 19,699 | | | | (274,577 | ) |
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Gain from discontinued operations, net of tax provision of $0 in 2011 | | | 992 | | | | — | | | | 992 | | | | — | |
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| | | | |
Net income (loss) | | $ | 31,951 | | | $ | (389,263 | ) | | $ | 20,691 | | | $ | (274,577 | ) |
| | | | | | | | | | | | | | | | |
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Income (loss) per share of common stock — basic and diluted | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 0.00 | | | $ | (0.02 | ) | | $ | 0.00 | | | $ | (0.01 | ) |
Discontinued operations | | | 0.00 | | | | — | | | | 0.00 | | | | — | |
| | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 0.00 | | | $ | (0.02 | ) | | $ | 0.00 | | | $ | (0.01 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Weighted average shares outstanding - basic and diluted | | | 25,451,354 | | | | 25,451,354 | | | | 25,451,354 | | | | 25,451,354 | |
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The Goldfield Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
| | | | | | | | |
| | | June 30,
2011 | | | December 31,
2010 | |
| ASSETS | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 3,521,997 | | | $ | 4,174,518 | |
Accounts receivable and accrued billings, net | | | 3,991,815 | | | | 4,393,659 | |
Real estate inventory | | | 633,233 | | | | 774,584 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | | | 639,868 | | | | 1,254,054 | |
Prepaid expenses | | | 667,253 | | | | 304,802 | |
Other current assets | | | 194,552 | | | | 172,070 | |
| | | | | | | | |
Total current assets | | | 9,648,718 | | | | 11,073,687 | |
| | |
Property, buildings and equipment, at cost, net | | | 10,659,609 | | | | 8,232,306 | |
Notes receivable, less current portion | | | 217,609 | | | | 237,714 | |
Deferred charges and other assets | | | 1,611,798 | | | | 1,415,775 | |
| | | | | | | | |
Total assets | | $ | 22,137,734 | | | $ | 20,959,482 | |
| | | | | | | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Current liabilities | | | | | | | | |
Accounts payable and accrued liabilities | | $ | 1,973,734 | | | $ | 2,418,056 | |
Current portion of notes payable | | | 991,429 | | | | 1,176,552 | |
Other current liabilities | | | 106,610 | | | | 279,304 | |
| | | | | | | | |
Total current liabilities | | | 3,071,773 | | | | 3,873,912 | |
Other accrued liabilities | | | — | | | | 17,094 | |
Notes payable, less current portion | | | 4,586,794 | | | | 2,610,000 | |
| | | | | | | | |
Total liabilities | | | 7,658,567 | | | | 6,501,006 | |
| | | | | | | | |
Commitments and contingencies | | | | | | | | |
Stockholders’ equity | | | | | | | | |
Common stock | | | 2,781,377 | | | | 2,781,377 | |
Capital surplus | | | 18,481,683 | | | | 18,481,683 | |
Accumulated deficit | | | (5,475,706 | ) | | | (5,496,397 | ) |
Common stock in treasury, at cost | | | (1,308,187 | ) | | | (1,308,187 | ) |
| | | | | | | | |
Total stockholders’ equity | | | 14,479,167 | | | | 14,458,476 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 22,137,734 | | | $ | 20,959,482 | |
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