MELBOURNE, Fla., March 17 /PRNewswire-FirstCall/ -- The Goldfield
Corporation (NYSE Alternext US: 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, 2008.
Revenue for the year ended December 31, 2008 was $31.4 million and
the Company had an operating loss of $5.1 million, compared to
revenue of $27.3 million and an operating loss of $3.2 million in
the year ended December 31, 2007. Although Goldfield's revenue
improved during 2008, the operating loss reflects a write down of
real estate inventory of $3.2 million due to the continuing
weakness in the Florida condominium market. For the year ended
December 31, 2008, the electrical construction segment had revenue
of $29.1 million and operating income of $1.4 million, compared to
revenue of $26.8 million and operating income of $688,000 in the
prior year. These increases were primarily due to a robust fourth
quarter as a result of an increase in the number and size of the
projects in process, particularly fiber optic work. For the year
ended December 31, 2008, the real estate development segment had
revenue of $2.4 million and an operating loss of $3.8 million. For
2007, revenue and operating loss from this segment were $537,000
and $1.2 million, respectively. The increase in revenue resulted
primarily from the 2007 reversal of $7.2 million of previously
recognized revenue on the Pineapple House project due to buyer
defaults, which offset a significant portion of the revenue from
sales of condominium units in 2007. The increase in the operating
loss was due primarily to the write-down of $3.2 million on real
estate inventory, during the year ended December 31, 2008. As of
December 31, 2008, we had sold nineteen Pineapple House condominium
units and held fourteen units for sale. Net loss for the year ended
December 31, 2008 was $5.4 million or $0.21 per share, compared to
net loss of $2.3 million or $0.09 per share in 2007. Revenue for
the quarter ended December 31, 2008 was $10.6 million, compared to
$9.0 million in the comparable prior-year quarter. For the fourth
quarter of 2008, electrical construction revenues were $10.2
million and operating income was $1.6 million, as compared to
revenue of $6.2 million and operating loss of $275,000 in the prior
year. In the fourth quarter, real estate development operations had
revenue of $328,000 and operating loss of $3.3 million, as compared
to revenue of $2.8 million and operating income of $9,000 in the
like quarter last year. The Company's net loss for the fourth
quarter of 2008 was $3.4 million ($0.14 per share) compared to net
loss of $572,000 ($0.02 per share) in the comparable prior-year
quarter. The quarter-to-quarter declines resulted primarily from
the write-down of real estate inventory in the real estate segment.
Commenting on the Company's results, John H. Sottile, Chairman,
President and Chief Executive Officer of Goldfield, said, "We are
pleased with the strong growth in the electrical construction
segment, in part due to our expansion beyond our historic base in
the southeastern United States." Mr. Sottile continued, "The real
estate environment continues to be extremely challenging, but the
Company is fortunate that our real estate exposure is quite
manageable. Our only project, Pineapple House, has been completed
and well received, with more than half of the units already sold."
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; 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 level of consumer confidence;
the continued weakness in the Florida condominium market; our
ability to acquire land; increases in interest rates and
availability of mortgage financing to our buyers; 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; changes in generally accepted accounting principles; our
ability to obtain necessary permits from regulatory agencies; our
ability to maintain or increase historical revenues 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, particularly in light of the current disruption in
the credit markets. 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: THE
GOLDFIELD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) Three Months Ended Twelve Months Ended
December 31, December 31, 2008 2007 2008 2007 ---- ---- ---- ----
Revenue Electrical construction $10,243,562 $6,230,319 $29,062,099
$26,761,440 Real estate development 328,316 2,779,653 2,382,888
537,135 ------- --------- --------- ------- Total revenue
10,571,878 9,009,972 31,444,987 27,298,575 ---------- ---------
---------- ---------- Costs and expenses Electrical construction
7,870,641 5,636,530 24,337,479 22,881,363 Real estate development
500,593 2,524,545 2,492,060 794,612 Selling, general and
administrative 683,378 779,965 3,299,687 3,278,520 Depreciation
730,048 810,542 3,159,398 3,076,505 Provision for doubtful accounts
- - 27,078 - Write down of real estate inventory 3,137,004 -
3,173,506 473,227 (Gain) loss on sale of assets (168) 31,699 7,260
14,479 ---- ------ ----- ------ Total costs and expenses 12,921,496
9,783,281 36,496,468 30,518,706 ---------- --------- ----------
---------- Total operating loss (2,349,618) (773,309) (5,051,481)
(3,220,131) ---------- -------- ---------- ---------- Other income
(expense), net Interest income 18,261 131,173 131,889 297,837
Interest expense, net (85,976) (171,859) (401,129) (585,945) Other
income 5,521 1,433 21,560 13,918 Minority interest 11,088 5,849 -
(3,361) ------ ----- ------ ------ Total other expense, net
(51,106) (33,404) (247,680) (277,551) ------- ------- --------
-------- Loss from continuing operations before income taxes
(2,400,724) (806,713) (5,299,161) (3,497,682) Income tax expense
(benefit) 1,023,958 (240,401) (23,362) (1,195,428) ---------
-------- ------- ---------- Loss from continuing operations
(3,424,682) (566,312) (5,275,799) (2,302,254) Loss from
discontinued operations, net of tax (18,380) (5,858) (111,022)
(18,519) ------- ------ -------- ------- Net loss $(3,443,062)
$(572,170) $(5,386,821) $(2,320,773) =========== =========
=========== =========== Loss per share of common stock - basic and
diluted Continuing operations $(0.14) $(0.02) $(0.21) $(0.09)
Discontinued operations - - - - --- --- --- --- Net income $(0.14)
$(0.02) $(0.21) $(0.09) ====== ====== ====== ====== Weighted
average shares outstanding: Basic 25,451,354 25,451,354 25,451,354
25,451,354 ========== ========== ========== ========== Diluted
25,451,354 25,451,354 25,451,354 25,451,354 ========== ==========
========== ========== THE GOLDFIELD CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, 2008
2007 ---- ---- ASSETS Current assets Cash and cash equivalents
$4,921,980 $3,984,613 Accounts receivable and accrued billings, net
6,709,015 5,881,430 Remediation insurance receivable 99,375 176,827
Current portion of notes receivable 54,169 49,108 Construction
inventory - 2,218 Real estate inventory 2,323,756 7,788,739 Costs
and estimated earnings in excess of billings on uncompleted
contracts 1,135,290 1,658,712 Prepaid expenses and other current
assets 1,127,745 1,933,869 --------- --------- Total current assets
16,371,330 21,475,516 Property, buildings and equipment, at cost,
net 7,656,580 9,803,794 Notes receivable, less current portion
304,671 352,305 Deferred charges and other assets 1,165,953
1,235,391 --------- --------- Total assets $25,498,534 $32,867,006
=========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities Accounts payable and accrued liabilities
$2,932,690 $1,984,352 Billings in excess of costs and estimated
earnings on uncompleted contracts 7,564 - Current portion of notes
payable 2,096,645 5,202,466 Current portion of capital leases
320,013 315,619 Reserve for remediation 153,368 198,850 -------
------- Total current liabilities 5,510,280 7,701,287 Deferred
income taxes - 346,200 Other accrued liabilities 28,423 26,894
Notes payable, less current portion 3,062,333 2,184,932 Capital
leases, less current portion 259,344 579,357 ------- ------- Total
liabilities 8,860,380 10,838,670 --------- ---------- 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 (Accumulated deficit) retained earnings (3,316,719)
2,070,102 Common stock in treasury, at cost (1,308,187) (1,308,187)
---------- ---------- Total stockholders' equity 16,638,154
22,024,975 ---------- ---------- Total liabilities and
stockholders' equity $25,498,534 $32,867,006 ===========
=========== DATASOURCE: The Goldfield Corporation CONTACT: The
Goldfield Corporation, +1-321-724-1700, Web Site:
http://www.goldfieldcorp.com/
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