Exhibit 99.1
GOLDFIELD ANNOUNCES SHARPLY IMPROVED FIRST QUARTER RESULTS
MELBOURNE, Florida, May 11, 2012 - The Goldfield Corporation (NYSE Amex: GV) today announced continued improved results for the three months ended March 31, 2012. The Goldfield Corporation is a leading provider of electrical construction services in the Southeast with operations throughout much of the United States. Goldfield is also engaged, to a much lesser extent, in real estate development activities on the east coast of Florida.
Revenue for the three months ended March 31, 2012 nearly doubled, increasing to $17.7 million from $8.9 million in the comparable prior year period. This increase was attributable to higher electrical construction revenue.
Because of improved results in the electrical construction segment, the Company’s operating income for the three months ended March 31, 2012 increased to $2.7 million from an operating loss of $1,000 in the same prior year period.
For the three months ended March 31, 2012, the electrical construction segment’s operating results showed significant improvement, with revenue of $17.1 million and operating income of $3.3 million, compared to revenue of $8.2 million and operating income of $328,000 in the prior year. This increase in revenue was largely attributable to an increase in demand for our electrical construction services, particularly our transmission work, as a result of our expansion efforts during 2010 and 2011. As previously announced in February of 2012, the Company’s electrical construction segment was awarded a $52.0 million transmission line construction contract as part of the Competitive Renewable Energy Zones (“CREZ”) projects. Construction of the CREZ project commenced last month, and is currently scheduled to be completed on August 31, 2013. Our results for the first quarter did not include any revenue from this project.
For the three months ended March 31, 2012, the real estate development segment had revenue of $634,000 and operating income of $124,000, compared to revenue of $766,000 and operating income of $225,000, respectively, for 2011. We currently have no condominium projects under construction, and only have one unit remaining unsold from our Pineapple House project.
Net income for the three months ended March 31, 2012 was $2.7 million, or $0.10 per share, compared to a net loss of $11,000, or ($0.00) net loss per share, in the comparable prior year period.
John H. Sottile, Goldfield’s President and Chief Executive Officer stated, “The prospects for our electrical construction business are brighter today than at any time in recent history. Our backlog at March 31, 2012 was $70.6 million, up from $6.2 million at March 31st last year.” Mr. Sottile also added, “We believe that our recent expansion into Texas and our new CREZ project will provide a good opportunity for further growth in this region.”
About Goldfield
Goldfield is a leading provider of electrical construction and maintenance services in the energy infrastructure industry throughout much 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, to a much lesser extent, in real estate development activities on Florida’s east coast.
For additional information on our first quarter results, please refer to our Quarterly Report on Form 10-Q being filed with the Securities and Exchange Commission and visit the Company’s website at 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)
| | | | | | | | |
| | | Three Months Ended March 31, | |
| | | 2012 | | | 2011 | |
Revenue | | | | | | | | |
Electrical construction | | $ | 17,109,940 | | | $ | 8,154,530 | |
Real estate development | | | 633,600 | | | | 765,872 | |
| | | | | | | | |
Total revenue | | | 17,743,540 | | | | 8,920,402 | |
| | | | | | | | |
| | |
Costs and expenses | | | | | | | | |
Electrical construction | | | 12,924,484 | | | | 7,008,979 | |
Real estate development | | | 393,108 | | | | 430,626 | |
Selling, general and administrative | | | 915,525 | | | | 747,065 | |
Depreciation | | | 786,257 | | | | 734,135 | |
(Gain) loss on sale of assets | | | (10,565 | ) | | | 714 | |
| | | | | | | | |
Total costs and expenses | | | 15,008,809 | | | | 8,921,519 | |
| | | | | | | | |
Total operating income (loss) | | | 2,734,731 | | | | (1,117 | ) |
| | | | | | | | |
| | |
Other (expenses) income, net | | | | | | | | |
Interest income | | | 6,004 | | | | 6,634 | |
Interest expense | | | (48,253 | ) | | | (27,002 | ) |
Other income, net | | | 9,067 | | | | 20,381 | |
| | | | | | | | |
Total other (expenses) income, net | | | (33,182 | ) | | | 13 | |
| | | | | | | | |
| | |
Income (loss) from continuing operations before income taxes | | | 2,701,549 | | | | (1,104 | ) |
| | |
Income tax provision | | | 51,232 | | | | 10,156 | |
| | | | | | | | |
| | |
Net income (loss) | | $ | 2,650,317 | | | $ | (11,260 | ) |
| | | | | | | | |
| | |
Income (loss) per share of common stock - basic and diluted | | $ | 0.10 | | | $ | (0.00 | ) |
| | | | | | | | |
| | |
Weighted average shares outstanding - basic and diluted | | | 25,451,354 | | | | 25,451,354 | |
| | | | | | | | |
The Goldfield Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
| | | | | | | | |
| | | March 31,
2012 | | | December 31,
2011 | |
| ASSETS | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 1,886,171 | | | $ | 3,319,824 | |
Accounts receivable and accrued billings, net | | | 11,730,864 | | | | 8,991,109 | |
Real estate inventory | | | 161,854 | | | | 346,829 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | | | 2,887,821 | | | | 946,525 | |
Residential properties under construction | | | 145,786 | | | | 222,818 | |
Prepaid expenses | | | 1,624,932 | | | | 399,458 | |
Other current assets | | | 116,441 | | | | 188,033 | |
| | | | | | | | |
Total current assets | | | 18,553,869 | | | | 14,414,596 | |
| | |
Property, buildings and equipment, at cost, net | | | 13,088,713 | | | | 10,481,705 | |
Notes receivable, less current portion | | | 185,739 | | | | 196,632 | |
Deferred charges and other assets | | | 1,626,404 | | | | 1,518,004 | |
| | | | | | | | |
Total assets | | $ | 33,454,725 | | | $ | 26,610,937 | |
| | | | | | | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Current liabilities | | | | | | | | |
Accounts payable and accrued liabilities | | $ | 7,294,686 | | | $ | 3,639,919 | |
Current portion of notes payable | | | 2,791,366 | | | | 1,791,429 | |
Other current liabilities | | | 507,643 | | | | 934,714 | |
| | | | | | | | |
Total current liabilities | | | 10,593,695 | | | | 6,366,062 | |
Other accrued liabilities | | | 3,989 | | | | 1,595 | |
Notes payable, less current portion | | | 4,874,524 | | | | 4,911,080 | |
| | | | | | | | |
Total liabilities | | | 15,472,208 | | | | 11,278,737 | |
| | | | | | | | |
Commitments and contingencies | | | | | | | | |
Stockholders’ equity | | | | | | | | |
Common stock | | | 2,781,377 | | | | 2,781,377 | |
Capital surplus | | | 18,481,683 | | | | 18,481,683 | |
Accumulated deficit | | | (1,972,356 | ) | | | (4,622,673 | ) |
Common stock in treasury, at cost | | | (1,308,187 | ) | | | (1,308,187 | ) |
| | | | | | | | |
Total stockholders’ equity | | | 17,982,517 | | | | 15,332,200 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 33,454,725 | | | $ | 26,610,937 | |
| | | | | | | | |
