MELBOURNE, Fla., March 24 /PRNewswire-FirstCall/ -- The Goldfield Corporation (AMEX:GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums on Florida's east coast, today announced results for the twelve months ended December 31, 2007.
Revenues for the year ended December 31, 2007 were $27.3 million and the Company had an operating loss of $3.2 million, compared to revenues of $47.5 million and operating income of $4.3 million in the year ended December 31, 2006. Goldfield's decline in results during 2007 reflects a slowdown in electrical construction operations and the continuing weakness in the Florida condominium market.
For the year ended December 31, 2007, the electrical construction segment had revenues of $26.8 million and operating income of $688,000 compared to revenues of $36.4 million and operating income of $4.7 million in the prior year. These decreases were primarily due to the slowdown noted above, as well as unanticipated costs associated with customer initiated delays arising during the course of certain projects.
For the year ended December 31, 2007, the real estate development segment had revenues of $537,000 and an operating loss of $1.2 million. For 2006, revenues and operating income from this segment were $11.1 million and $2.6 million, respectively. These decreases were due to the reversal in 2007 of $7.2 million of previously recognized revenues and the related income as a result of customer defaults on contracts to purchase condominium units, as well as a re-valuation of our unsold units. This was partially offset by the sale of six units in the last quarter of 2007.
Net loss for the year ended December 31, 2007 was $2.3 million or $0.09 per share, compared to net income of $3.0 million or $0.12 per share in 2006. Revenues for the quarter ended December 31, 2007 were $9.0 million compared to revenues of $9.1 million in the comparable prior-year quarter. For the fourth quarter of 2007, electrical construction revenues were $6.2 million and operating loss was $275,000, as compared to revenues of $5.8 million and operating loss of $212,000 in the prior year. In the fourth quarter, real estate development operations had revenues of $2.8 million and operating income of $9,000, as compared to revenues of $3.3 million and operating income of $821,000 in the like quarter last year. The Company's net loss for the fourth quarter of 2007 was $572,000 ($0.02 per share) compared to net loss of $34,000 (nil per share) in the comparable prior-year quarter. The quarter-to- quarter declines resulted primarily from adverse market conditions affecting the real estate segment.
Commenting on the Company's results, John H. Sottile, Chairman, President and Chief Executive Officer of Goldfield, said, "We are encouraged by the increase in activity in our electrical construction operations in the beginning of 2008. We began the year with a backlog of $5.9 million, all of which is scheduled for completion in 2008, and have since received additional contracts totaling $12.0 million, $5.5 million of which we anticipate completing in 2008." Mr. Sottile noted that, "Work commenced in the fourth quarter on a multi-year project involving the upgrading of 46.2 miles of transmission line to support load growth in central Florida." With respect to real estate development operations, Sottile commented, "Construction has now been completed on our current project and roughly half of the units have been sold, many of which are now occupied. Our renewed marketing efforts and price reductions in the fourth quarter resulted in the sale of six units in the fourth quarter of 2007, and an additional unit in February of 2008." 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/ .
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: - Tables to Follow - The Goldfield Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited) Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
Revenue
Electrical
construction $6,230,319 $5,827,401 $26,761,440 $36,409,551
Real estate
development 2,779,653 3,291,891 537,135 11,086,306
Total revenue 9,009,972 9,119,292 27,298,575 47,495,857 Costs and expenses
Electrical
construction 5,636,530 5,324,406 22,881,363 29,097,182
Real estate
development 2,524,545 2,221,319 794,612 7,557,537
Selling, general and
administrative 779,965 1,133,130 3,278,520 4,016,653
Depreciation and
amortization 810,542 700,752 3,076,505 2,535,347
Write down of real
estate inventory - - 473,227 -
(Gain) loss on sale
of assets 31,699 (29,254) 14,479 (54,139)
Total costs and
expenses 9,783,281 9,350,353 30,518,706 43,152,580
Total operating
income (loss) (773,309) (231,061) (3,220,131) 4,343,277 Other income (expenses),
net
Interest income 131,173 95,251 297,837 237,461
Interest expense, net (171,859) (77,434) (585,945) (238,821)
Other 1,433 19,547 13,918 152,851
Minority interest 5,849 - (3,361) -
Total other income
(expenses), net (33,404) 37,364 (277,551) 151,491 Income (loss) from
continuing operations
before income taxes (806,713) (193,697) (3,497,682) 4,494,768 Income tax expense
(benefit) (240,401) (66,627) (1,195,428) 1,740,340 Income (loss) from
continuing operations (566,312) (127,070) (2,302,254) 2,754,428 Gain (loss) from
discontinued operations,
net of tax (5,858) 93,001 (18,519) 241,638 Net income (loss) $(572,170) $(34,069) $(2,320,773) $2,996,066 Earnings per share of
common stock - basic
and diluted
Continuing
operations $(0.02) $(0.00) $(0.09) $0.11
Discontinued
operations - - - 0.01
Net income $(0.02) $(0.00) $(0.09) $0.12 Weighted average shares
outstanding:
Basic 25,451,354 25,541,908 25,451,354 25,564,550
Diluted 25,451,354 25,541,908 25,451,354 25,564,550 The Goldfield Corporation And Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited) December 31,
2007 2006
ASSETS
Current assets
Cash and cash equivalents $3,984,613 $6,801,600
Accounts receivable and accrued
billings, net 5,881,430 4,908,511
Contracts receivable - 10,623,909
Remediation insurance receivable 176,827 329,888
Current portion of notes receivable 49,108 41,453
Construction inventory 2,218 216,989
Real estate inventories 7,788,739 801,411
Costs and estimated earnings in
excess of billings on uncompleted
contracts 1,658,712 2,358,738
Residential properties under
construction - 3,784,165
Prepaid expenses and other current
assets 1,933,869 1,022,377
Total current assets 21,475,516 30,889,041 Property, buildings and equipment, at
cost, net 9,803,794 9,465,378
Notes receivable, less current portion 352,305 407,409
Deferred charges and other assets 1,235,391 1,142,348
Total assets $32,867,006 $41,904,176 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $1,984,352 $5,359,893
Billings in excess of costs and
estimated earnings on uncompleted
contracts - 24,444
Notes payable to bank 5,202,466 8,663,768
Capital leases, due within one year 315,619 317,160
Current liabilities of discontinued
operations 198,850 208,221
Total current liabilities 7,701,287 14,573,486 Deferred income taxes, noncurrent 346,200 861,400
Other accrued liabilities, noncurrent 26,894 20,821
Notes payable, less current portion 2,184,932 1,207,745
Capital leases, less current portion 579,357 894,976
Total liabilities 10,838,670 17,558,428
Commitments and contingencies
Minority interest 3,361 -
Stockholders' equity
Common stock 2,781,377 2,781,377
Capital surplus 18,481,683 18,481,683
Retained earnings 2,070,102 4,390,875
Common stock in treasury, at cost (1,308,187) (1,308,187)
Total stockholders' equity 22,024,975 24,345,748
Total liabilities and stockholders'
equity $32,867,006 $41,904,176
DATASOURCE: The Goldfield Corporation CONTACT: The Goldfield Corporation, +1-321-724-1700, Web site: http://www.goldfieldcorp.com/
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