GV - Goldfield Reports Continued Strong Results
Thursday August 10, 4:11 pm ET
MELBOURNE, Fla., Aug. 10 /PRNewswire-FirstCall/ -- The Goldfield Corporation (AMEX: GV - News), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums, today announced a threefold increase in net income for the six months ended June 30, 2006:
* Revenue increased 48% to $26.2 million from $17.7 million in the like
period of 2005.
* Operating income increased to $3.4 million from $1.2 million in the like
period of 2005.
* Net income rose to $2.1 million ($.08 per share) from $0.7 million
($.03 per share) in the like period of 2005.
Results for the second quarter of 2006 mirrored the improved six month results. For the quarter ended June 30, 2006 (compared to the like period in 2005):
* Revenue increased 29% to $12.2 million from $9.5 million in the like
period of 2005.
* Operating income increased to $1.5 million from $1.0 million in the like
period of 2005.
* Net income rose to $1.0 million ($.04 per share) from $0.6 million
($.02 per share) in the like period of 2005.
Commenting on the second quarter results, John H. Sottile, president of Goldfield, said, "In the electrical construction segment, revenue increased to $11.2 million from $5.3 million and operating income increased significantly to $2.1 million from $0.3 million. Electrical construction results benefited from an increase in both the number and size of projects under construction and from efficiencies associated with larger projects. In the real estate segment, revenues decreased from $4.2 million to $1.0 million, mainly because of year to year variations in the characteristics and stage of construction of the particular projects under construction. In addition, the current weaker condominium market in Florida resulted in the cancellation of three purchase contracts in our Oak Park project."
Looking ahead in 2006, Mr. Sottile commented, "At June 30, our electrical construction backlog has increased to $14.0 million from $11.6 million at the same point in 2005 and our real estate segment's backlog has increased to $10.6 million from $6.3 million at the same point last year. During the balance of 2006, we currently estimate that approximately 86% of the electrical construction backlog (approximately $12.0 million) and approximately 75% of the real estate segment backlog (approximately $8.0 million) will be recognized as revenue. Actual timing of revenue recognition may vary as the result of project delays and other factors."
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 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.
THE GOLDFIELD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
Revenue
Electrical
construction $11,186,323 $5,284,372 $21,678,328 $12,384,688
Real estate
development 1,046,540 4,186,580 4,549,487 5,317,737
Total revenue 12,232,863 9,470,952 26,227,815 17,702,425
Costs and expenses
Electrical
construction 8,460,325 4,335,895 16,583,534 10,253,467
Real estate
development 827,489 2,475,035 3,148,918 3,167,487
Depreciation and
amortization 628,120 635,047 1,227,411 1,260,778
Selling, general and
administrative 819,774 1,062,377 1,918,129 1,813,156
Other (income)
general expenses (11,013) 9,069 (29,323) 10,555
Total costs and
expenses 10,724,695 8,517,423 22,848,669 16,505,443
Total operating
income 1,508,168 953,529 3,379,146 1,196,982
Other income
(expenses), net
Interest income 26,972 25,433 51,684 53,891
Interest expense,
net (62,965) (33,475) (99,957) (66,460)
Other 110,128 4,136 113,622 6,024
Total other
income
(expenses), net 74,135 (3,906) 65,349 (6,545)
Income from continuing
operations before
income taxes 1,582,303 949,623 3,444,495 1,190,437
Income taxes 609,831 375,035 1,327,533 466,545
Income from continuing
operations 972,472 574,588 2,116,962 723,892
Loss from discontinued
operations -- (1,776) -- (14,528)
Net income $972,472 $572,812 $2,116,962 $709,364
Earnings per share of
common stock -
basic and diluted
Continuing
operations $0.04 $0.02 $0.08 $0.03
Discontinued
operations -- -- -- --
Net income $0.04 $0.02 $0.08 $0.03
Weighted average common
shares and equivalents
used in the calculations
of earnings per share
Basic 25,572,192 25,687,548 25,572,192 25,760,218
Diluted 25,572,192 25,721,118 25,572,192 25,793,798
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Source: The Goldfield Corporation
