Exhibit 99.1
Goldfield Announces Strong Nine Month Results
MELBOURNE, Florida, November 14, 2006 / -- The Goldfield Corporation (Amex: GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums, today announced strong results for the nine months ended September 30, 2006:
| * | Revenue increased 32.5% to $38.4 million from $29.0 million in the like period of 2005. |
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| * | Operating income rose to $4.6 million, up 88% from the like period of 2005. |
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| * | Net income more than doubled to $3.0 million ($0.12 per share) from $1.4 million ($0.06 per share) in the like period of 2005. |
Goldfield’s increased revenue for the nine months ended September 30, 2006, was attributable to a 52% increase in electrical construction revenue, which rose to $30.6 million from $20.2 million for the same period in 2005. This increase in revenue was driven by the Company’s expansion into larger transmission construction projects. The increases in operating income and net income were likewise driven by the results of the electrical construction segment. Partially offsetting the positive results of the electrical construction segment, revenue and operating income in the real estate development segment declined, primarily due to the weak Florida condominium market.
Commenting on the nine month results, John H. Sottile, Chairman, President and Chief Executive Officer of Goldfield, said, “Our electrical construction operations have continued their strong performance, with a 52% increase in revenue from the same period last year, and an increase in operating income of 194%, to $4.9 million. Real estate operations remain profitable, although not at the same level as we achieved last year.” Looking ahead, Mr. Sottile continued, “As of September 30, 2006, our electrical construction backlog remains strong at $10.7 million, although down $3.1 million from the same point in 2005, and our real estate backlog has increased to $7.4 million from $3.2 million at the same point last year. This backlog will carry us into 2007, and we expect approximately 64% of the electrical construction backlog (approximately $6.8 million) and approximately 30% of the real estate segment backlog (approximately $2.2 million) to be recognized as revenue in the remainder of 2006, although the actual timing of revenue recognition may vary as the result of project delays and other factors.”
For the third quarter of 2006, Goldfield’s results from operations remained largely unchanged from the like period in 2005, with revenue increasing to $12.1 million from $11.3 million, operating income remaining unchanged at $1.2 million and net income rising to $0.9 million ($0.04 per share) from $0.7 million ($0.03 per share).
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
September 30, | | Nine Months Ended
September 30, | |
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| | 2006 | | 2005 | | 2006 | | 2005 | |
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Revenue | | | | | | | | | | | | | |
Electrical construction | | $ | 8,903,823 | | $ | 7,776,247 | | $ | 30,582,150 | | $ | 20,160,935 | |
Real estate development | | | 3,244,927 | | | 3,479,366 | | | 7,794,414 | | | 8,797,103 | |
Total revenue | | | 12,148,750 | | | 11,255,613 | | | 38,376,564 | | | 28,958,038 | |
Costs and expenses | | | | | | | | | | | | | |
Electrical construction | | | 7,189,242 | | | 6,369,406 | | | 23,772,776 | | | 16,622,873 | |
Real estate development | | | 2,187,300 | | | 2,066,447 | | | 5,336,218 | | | 5,233,934 | |
Depreciation and amortization | | | 607,185 | | | 543,082 | | | 1,834,595 | | | 1,803,860 | |
Selling, general and administrative | | | 965,393 | | | 1,014,889 | | | 2,883,523 | | | 2,828,045 | |
Provision for doubtful accounts | | | — | | | 23,542 | | | — | | | 23,542 | |
Other (income) general expenses | | | 4,439 | | | 1,673 | | | (24,884 | ) | | 12,228 | |
Total costs and expenses | | | 10,953,559 | | | 10,019,039 | | | 33,802,228 | | | 26,524,482 | |
Total operating income | | | 1,195,191 | | | 1,236,574 | | | 4,574,336 | | | 2,433,556 | |
Other income (expenses), net | | | | | | | | | | | | | |
Interest income | | | 90,525 | | | 23,464 | | | 142,210 | | | 77,354 | |
Interest expense, net | | | (61,430 | ) | | (31,762 | ) | | (161,386 | ) | | (98,221 | ) |
Other | | | 19,683 | | | 1,712 | | | 133,304 | | | 7,736 | |
Total other income (expenses), net | | | 48,778 | | | (6,586 | ) | | 114,128 | | | (13,131 | ) |
Income from continuing operations before income taxes | | | 1,243,969 | | | 1,229,988 | | | 4,688,464 | | | 2,420,425 | |
Income taxes | | | 479,434 | | | 488,051 | | | 1,806,967 | | | 954,596 | |
Income from continuing operations | | | 764,535 | | | 741,937 | | | 2,881,497 | | | 1,465,829 | |
Gain (loss) from discontinued operations, net of tax | | | 148,637 | | | (10,291 | ) | | 148,637 | | | (24,819 | ) |
Net income | | $ | 913,172 | | $ | 731,646 | | $ | 3,030,134 | | $ | 1,441,010 | |
Earnings per share of common stock - basic and diluted | | | | | | | | | | | | | |
Continuing operations | | $ | 0.03 | | $ | 0.03 | | $ | 0.11 | | $ | 0.06 | |
Discontinued operations | | | 0.01 | | | — | | | 0.01 | | | — | |
Net income | | $ | 0.04 | | $ | 0.03 | | $ | 0.12 | | $ | 0.06 | |
Weighted average common shares and equivalents used in the calculations of earnings per share | | | | | | | | | | | | | |
Basic | | | 25,572,159 | | | 25,517,191 | | | 25,572,181 | | | 25,678,319 | |
Diluted | | | 25,572,159 | | | 25,557,919 | | | 25,572,181 | | | 25,715,002 | |
THE GOLDFIELD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| | September 30,
2006 | | December 31,
2005 | |
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ASSETS | | | | | | | |
Current assets | | | | | | | |
Cash and cash equivalents | | $ | 9,392,058 | | $ | 2,912,494 | |
Restricted cash - discontinued operations | | | — | | | 7,845 | |
Accounts receivable and accrued billings, net | | | 4,617,855 | | | 6,443,563 | |
Contracts receivable | | | 7,332,018 | | | 10,529,004 | |
Current portion of notes receivable | | | 41,454 | | | 41,453 | |
Construction inventory | | | 293,319 | | | — | |
Real estate inventories | | | 801,411 | | | — | |
Costs and estimated earnings in excess of billings on uncompleted contracts | | | 2,389,528 | | | 1,247,367 | |
Deferred income taxes | | | 342,300 | | | 928,700 | |
Income taxes recoverable | | | — | | | 951 | |
Residential properties under construction | | | 2,612,581 | | | 196,287 | |
Prepaid expenses | | | 537,360 | | | 401,348 | |
Other current assets | | | 85,654 | | | 15,234 | |
Total current assets | | | 28,445,538 | | | 22,724,246 | |
Property, buildings and equipment, at cost, net | | | 9,297,160 | | | 8,094,829 | |
Notes receivable, less current portion | | | 412,813 | | | 468,639 | |
Deferred charges and other assets | | | | | | | |
Land and land development costs | | | 710,495 | | | 1,787,077 | |
Cash surrender value of life insurance | | | 307,121 | | | 320,784 | |
Other assets | | | 474,092 | | | 85,618 | |
Total deferred charges and other assets | | | 1,491,708 | | | 2,193,479 | |
Total assets | | $ | 39,647,219 | | $ | 33,481,193 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
Current liabilities | | | | | | | |
Accounts payable and accrued liabilities | | $ | 4,780,204 | | $ | 3,988,650 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | | | — | | | 51,575 | |
Notes payable, due within one year | | | 6,673,277 | | | 5,866,664 | |
Capital leases, due within one year | | | 301,383 | | | — | |
Federal and state income taxes payable | | | 323,643 | | | 201,455 | |
Current liabilities of discontinued operations | | | 52,981 | | | 127,522 | |
Total current liabilities | | | 12,131,488 | | | 10,235,866 | |
Deferred income taxes, noncurrent | | | 787,446 | | | 845,400 | |
Other accrued liabilities, noncurrent | | | 18,464 | | | — | |
Notes payable, less current portion | | | 1,211,000 | | | 917,292 | |
Capital leases, less current portion | | | 986,178 | | | — | |
Total liabilities | | | 15,134,576 | | | 11,998,558 | |
Commitments and contingencies | | | | | | | |
Stockholders’ equity | | | | | | | |
Preferred stock, $1 par value per share, 5,000,000 shares authorized, none issued | | | — | | | — | |
Common stock, $.10 par value per share, 40,000,000 shares authorized; 27,813,772 shares issued at September 30, 2006 and December 31, 2005 | | | 2,781,377 | | | 2,781,377 | |
Capital surplus | | | 18,481,683 | | | 18,481,683 | |
Retained earnings | | | 4,424,943 | | | 1,394,809 | |
Total | | | 25,688,003 | | | 22,657,869 | |
Less common stock in treasury, at cost; 2,241,680 shares at September 30, 2006 and 2,241,580 shares at December 31, 2005 | | | 1,175,360 | | | 1,175,234 | |
Total stockholders’ equity | | | 24,512,643 | | | 21,482,635 | |
Total liabilities and stockholders’ equity | | $ | 39,647,219 | | $ | 33,481,193 | |
