Exhibit 99-1
For Immediate Release
Goldfield Records Strong Results
MELBOURNE, Florida, November 14, 2005 - The Goldfield Corporation (AMEX: GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums, today announced a fourfold increase in net income for the first nine months of 2005, driven by continued strength in electrical construction and increased real estate development activity.
For the quarter ended September 30, 2005, Goldfield reported total revenues of $11,255,613, up 55 percent from $7,262,905 in the like period of 2004. Net income from continuing operations increased to $741,937, or 3 cents per share, compared to $31,644, or nil per share for the same period in 2004. Net income (including discontinued operations) increased to $731,646, or 3 cents per share, compared to $19,747, or nil per share for the periods ending September 30, 2005 and 2004, respectively.
For the nine months ended September 30, 2005, total revenues increased 6.9 percent to $28,958,038, compared to $27,085,015 during the like period in 2004. Net income from continuing operations more than quadrupled to $1,465,829, or 6 cents per share, compared to $308,341, or 1 cent per share, for the same period in 2004. Net income (including discontinued operations) increased to $1,441,010, or 6 cents per share, compared to $296,444, or 1 cent per share, for the nine months ended September 30, 2005 and 2004, respectively.
Although electrical construction operations remained strong in the three and nine month periods ended September 30, 2005, the increase in net income for these periods, compared to the like periods in 2004, was largely attributable to real estate development activity. Goldfield’s real estate project under construction in 2005, Oak Park, is significantly larger than the project under construction in 2004.
The backlog for real estate development operations at September 30, 2005 was approximately $3,240,000. There was no backlog at the same point last year. Goldfield expects to complete and deliver to buyers by early 2006 all backlog reflected at September 30, 2005. The current backlog assumes settlement of existing sales contracts from the Oak Park project, which commenced construction early this year, but does not include any amount from the substantially larger initial phase of the Pineapple House project. Goldfield expects to commence recognizing revenues from the Pineapple House project during 2006.
The backlog for electrical construction operations at September 30, 2005, more than doubled to $13,842,000, from $5,280,000 at September 30, 2004 due to strength in demand for transmission line construction services in the Southeast.
In commenting on the third quarter results, John H. Sottile, president of Goldfield, said, “Both the electrical construction segment and real estate development segments recorded strong results and the marked increase in the backlog in both these segments should favorably impact future results.” Mr. Sottile also noted that “the September 30 backlog does not reflect the recent hurricanes affecting Florida and the Gulf state areas.”
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.
Statements in this release are based on current expectations. These statements are forward-looking, and actual results may differ materially. For further details, see the company’s filings with the Securities and Exchange Commission.
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Further Information
Investors:
The Goldfield Corporation, 321-724-1700 or investorrelations@goldfieldcorp.com
THE GOLDFIELD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, | |
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| | 2005 | | 2004 | | 2005 | | 2004 | |
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Revenue | | | | | | | | | | | | | |
Electrical construction | | $ | 7,776,247 | | $ | 7,262,905 | | $ | 20,160,935 | | $ | 23,220,182 | |
Real estate development | | | 3,479,366 | | | — | | | 8,797,103 | | | 3,864,833 | |
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Total revenue | | | 11,255,613 | | | 7,262,905 | | | 28,958,038 | | | 27,085,015 | |
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Costs and expenses | | | | | | | | | | | | | |
Electrical construction | | | 6,369,406 | | | 5,877,255 | | | 16,622,873 | | | 20,306,285 | |
Real estate development | | | 2,066,447 | | | 35,756 | | | 5,233,934 | | | 2,758,697 | |
Depreciation and amortization | | | 543,082 | | | 553,939 | | | 1,803,860 | | | 1,541,275 | |
Selling, general and administrative | | | 1,014,889 | | | 515,371 | | | 2,828,045 | | | 1,939,127 | |
Provision for doubtful accounts | | | 23,542 | | | — | | | 23,542 | | | — | |
Other general expenses | | | 1,673 | | | (3,964 | ) | | 12,228 | | | (1,052 | ) |
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Total costs and expenses | | | 10,019,039 | | | 6,978,357 | | | 26,524,482 | | | 26,544,332 | |
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Total operating income | | | 1,236,574 | | | 284,548 | | | 2,433,556 | | | 540,683 | |
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Other income (expenses), net | | | | | | | | | | | | | |
Interest income | | | 23,464 | | | 21,716 | | | 77,354 | | | 60,225 | |
Interest expense, net | | | (31,762 | ) | | (21,520 | ) | | (98,221 | ) | | (39,521 | ) |
Other | | | 1,712 | | | 33,198 | | | 7,736 | | | 49,958 | |
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Total other income (expenses), net | | | (6,586 | ) | | 33,394 | | | (13,131 | ) | | 70,662 | |
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Income from continuing operations before income taxes | | | 1,229,988 | | | 317,942 | | | 2,420,425 | | | 611,345 | |
Income taxes | | | (488,051 | ) | | (286,298 | ) | | (954,596 | ) | | (303,004 | ) |
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Income from continuing operations | | | 741,937 | | | 31,644 | | | 1,465,829 | | | 308,341 | |
Loss from discontinued operations | | | (10,291 | ) | | (11,897 | ) | | (24,819 | ) | | (11,897 | ) |
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Net income | | $ | 731,646 | | $ | 19,747 | | $ | 1,441,010 | | $ | 296,444 | |
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Earnings per share of common stock - basic and diluted | | | | | | | | | | | | | |
Continuing operations | | $ | 0.03 | | $ | — | | $ | 0.06 | | $ | 0.01 | |
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Discontinued operations | | | — | | | — | | | — | | | — | |
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Net income | | $ | 0.03 | | $ | — | | $ | 0.06 | | $ | 0.01 | |
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Weighted average common shares and equivalents used in the calculations of earnings per share | | | | | | | | | | | | | |
Basic | | | 25,517,191 | | | 26,226,624 | | | 25,678,319 | | | 26,284,080 | |
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Diluted | | | 25,557,919 | | | 26,271,388 | | | 25,715,002 | | | 26,333,279 | |
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