(Mark
One)
|
þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Delaware
|
88-0031580
|
(State
or other Jurisdiction of Incorporation or
Organization)
|
(I.R.S.
Employer Identification No.)
|
PART
I. FINANCIAL INFORMATION
|
3
|
|||
Item
1. Financial Statements
|
3
|
|||
Consolidated
Balance Sheets
|
3
|
|||
Consolidated
Statements of Operations
|
4
|
|||
Consolidated
Statements of Cash Flows
|
5
|
|||
Notes
to Consolidated Financial Statements
|
6
|
|||
Item
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
|
14
|
|||
Item
3. Quantitative and Qualitative Disclosures about Market
Risk.
|
24
|
|||
Item
4T. Controls and Procedures.
|
25
|
|||
PART
II. OTHER INFORMATION
|
26
|
|||
Item
1. Legal Proceedings
|
26
|
|||
Item
1A. Risk Factors
|
26
|
|||
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
26
|
|||
Item
6. Exhibits
|
26
|
|||
SIGNATURES
|
27
|
September 30,
|
December 31,
|
||||||
2007
|
2006
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
4,134,995
|
$
|
6,801,600
|
|||
Accounts
receivable and accrued billings
|
4,317,650
|
4,908,511
|
|||||
Contracts
receivable
|
-
|
10,623,909
|
|||||
Remediation
insurance receivable
|
253,049
|
329,888
|
|||||
Current
portion of notes receivable
|
43,675
|
41,453
|
|||||
Construction
inventory
|
30,209
|
216,989
|
|||||
Real
estate inventories
|
10,232,940
|
801,411
|
|||||
Costs
and estimated earnings in excess of billings
on uncompleted contracts
|
3,298,477
|
2,358,738
|
|||||
Deferred
income taxes
|
323,705
|
263,400
|
|||||
Income
taxes recoverable
|
766,466
|
309,922
|
|||||
Residential
properties under construction
|
-
|
3,784,165
|
|||||
Prepaid
expenses
|
806,819
|
431,441
|
|||||
Other
current assets
|
27,739
|
17,614
|
|||||
Total
current assets
|
24,235,724
|
30,889,041
|
|||||
Property,
buildings and equipment, at cost, net of depreciation of $14,953,836
as of
September 30, 2007 and $13,715,313 as of December 31, 2006
|
10,425,164
|
9,465,378
|
|||||
Notes
receivable, less current portion
|
363,821
|
407,409
|
|||||
Deferred
charges and other assets
|
|||||||
Land
and land development costs
|
710,495
|
710,495
|
|||||
Cash
surrender value of life insurance
|
329,634
|
321,724
|
|||||
Other
assets
|
614,555
|
110,129
|
|||||
Total
deferred charges and other assets
|
1,654,684
|
1,142,348
|
|||||
Total
assets
|
$
|
36,679,393
|
$
|
41,904,176
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable and accrued liabilities
|
$
|
2,973,529
|
$
|
5,359,893
|
|||
Billings
in excess of costs and estimated earnings on uncompleted contracts
|
-
|
24,444
|
|||||
Notes
payable
|
7,208,453
|
8,663,768
|
|||||
Capital
leases, due within one year
|
321,233
|
317,160
|
|||||
Current
liabilities of discontinued operations
|
112,813
|
208,221
|
|||||
Total
current liabilities
|
10,616,028
|
14,573,486
|
|||||
Deferred
income taxes
|
412,165
|
861,400
|
|||||
Other
accrued liabilities
|
25,654
|
20,821
|
|||||
Notes
payable, less current portion
|
2,363,776
|
1,207,745
|
|||||
Capital
leases, less current portion
|
655,415
|
894,976
|
|||||
Total
liabilities
|
14,073,038
|
17,558,428
|
|||||
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 and 25,451,354 shares outstanding
|
2,781,377
|
2,781,377
|
|||||
Capital
surplus
|
18,481,683
|
18,481,683
|
|||||
Retained
earnings
|
2,651,482
|
4,390,875
|
|||||
Treasury
stock, 2,362,418 shares, at cost
|
(1,308,187
|
)
|
(1,308,187
|
)
|
|||
Total
stockholders' equity
|
22,606,355
|
24,345,748
|
|||||
Total
liabilities and stockholders' equity
|
$
|
36,679,393
|
$
|
41,904,176
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||
September 30,
|
September 30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Revenue
|
|||||||||||||
Electrical
construction
|
$
|
6,518,999
|
$
|
8,903,823
|
$
|
20,531,121
|
$
|
30,582,150
|
|||||
Real
estate development
|
41,042
|
3,244,927
|
(2,807,828
|
)
|
7,794,414
|
||||||||
Total
revenue
|
6,560,041
|
12,148,750
|
17,723,293
|
38,376,564
|
|||||||||
Costs
and expenses
|
|||||||||||||
Electrical
construction
|
5,496,723
|
7,189,242
|
17,244,833
|
23,772,776
|
|||||||||
Real
estate development
|
46,293
|
2,187,300
|
(1,729,933
|
)
|
5,336,218
|
||||||||
Selling,
general and administrative
|
841,222
|
965,393
|
2,498,556
|
2,883,523
|
|||||||||
Depreciation
|
757,846
|
607,185
|
2,265,963
|
1,834,595
|
|||||||||
Write
down of inventory
|
473,227
|
-
|
473,227
|
-
|
|||||||||
(Gain)
loss on sale of assets
|
(6,927
|
)
|
4,439
|
(17,220
|
)
|
(24,884
|
)
|
||||||
Total
costs and expenses
|
7,608,384
|
10,953,559
|
20,735,426
|
33,802,228
|
|||||||||
Total
operating income (loss)
|
(1,048,343
|
)
|
1,195,191
|
(3,012,133
|
)
|
4,574,336
|
|||||||
Other
income (expense), net
|
|||||||||||||
Interest
income
|
53,779
|
90,525
|
166,664
|
142,210
|
|||||||||
Interest
expense, net of amount capitalized
|
(235,381
|
)
|
(61,430
|
)
|
(414,085
|
)
|
(161,386
|
)
|
|||||
Other
|
515,282
|
19,683
|
577,795
|
133,304
|
|||||||||
Total
other income (expense), net
|
333,680
|
48,778
|
330,374
|
114,128
|
|||||||||
Income
(loss) from continuing operations before income taxes
|
(714,663
|
)
|
1,243,969
|
(2,681,759
|
)
|
4,688,464
|
|||||||
Income
tax expense (benefit)
|
(456,444
|
)
|
479,434
|
(955,027
|
)
|
1,806,967
|
|||||||
Income
(loss) from continuing operations
|
(258,219
|
)
|
764,535
|
(1,726,732
|
)
|
2,881,497
|
|||||||
Gain
(loss) from discontinued operations, net of tax
|
(12,661
|
)
|
148,637
|
(12,661
|
)
|
148,637
|
|||||||
Net
income (loss)
|
$
|
(270,880
|
)
|
$
|
913,172
|
$
|
(1,739,393
|
)
|
$
|
3,030,134
|
|||
Earnings
(loss) per share of common stock - basic and diluted
|
|||||||||||||
Continuing
operations
|
$
|
(0.01
|
)
|
$
|
0.03
|
$
|
(0.07
|
)
|
$
|
0.11
|
|||
Discontinued
operations
|
-
|
0.01
|
-
|
0.01
|
|||||||||
Net
income (loss)
|
$
|
(0.01
|
)
|
$
|
0.04
|
$
|
(0.07
|
)
|
$
|
0.12
|
|||
Weighted
average number of common shares outstanding –
basic and
diluted
|
25,451,354
|
25,572,159
|
25,451,354
|
25,572,181
|
Nine
Months Ended
|
|||||||
September
30,
|
|||||||
2007
|
2006
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income (loss) from continuing operations
|
$
|
(1,726,732
|
)
|
$
|
2,881,497
|
||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
|
|||||||
Depreciation
|
2,265,963
|
1,834,595
|
|||||
Write
down of inventory
|
473,227
|
-
|
|||||
Gain
on sale of assets
|
(17,220
|
)
|
(24,884
|
)
|
|||
Deferred
income taxes
|
(509,540
|
)
|
528,446
|
||||
Changes
in operating assets and liabilities
|
|||||||
Accounts
receivable and accrued billings
|
590,861
|
1,825,708
|
|||||
Contracts
receivable
|
10,623,909
|
3,196,986
|
|||||
Construction
inventory
|
186,780
|
(293,319
|
)
|
||||
Real
estate inventories
|
(9,904,756
|
)
|
(801,411
|
)
|
|||
Costs
and estimated earnings in excess of billings on uncompleted
contracts
|
(939,739
|
)
|
(1,142,161
|
)
|
|||
Land
and land development costs
|
-
|
1,076,582
|
|||||
Residential
properties under construction
|
3,784,165
|
(2,416,294
|
)
|
||||
Income
taxes recoverable
|
(456,544
|
)
|
951
|
||||
Income
taxes payable
|
-
|
122,188
|
|||||
Prepaid
expenses and other assets
|
(889,929
|
)
|
(594,906
|
)
|
|||
Accounts
payable and accrued liabilities
|
(2,381,531
|
)
|
810,018
|
||||
Billings
in excess of costs and estimated earnings on uncompleted
contracts
|
(24,444
|
)
|
(51,575
|
)
|
|||
Net
cash provided by operating activities of continuing
operations
|
1,074,470
|
6,952,421
|
|||||
Net
cash provided by (used by) operating activities of discontinued
operations
|
(31,230
|
)
|
81,940
|
||||
Net
cash provided by operating activities
|
1,043,240
|
7,034,361
|
|||||
Cash
flows from investing activities:
|
|||||||
Proceeds
from the disposal of property and equipment
|
118,481
|
250,652
|
|||||
Proceeds
from notes receivable
|
41,366
|
55,826
|
|||||
Purchases
of property and equipment
|
(3,327,010
|
)
|
(1,859,092
|
)
|
|||
Cash
surrender value of life insurance
|
(7,910
|
)
|
13,663
|
||||
Net
cash used by investing activities of continuing operations
|
(3,175,073
|
)
|
(1,538,951
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Proceeds
from notes payable
|
7,682,028
|
6,750,319
|
|||||
Repayments
on notes payable
|
(7,981,312
|
)
|
(5,649,998
|
)
|
|||
Repayments
on capital leases
|
(235,488
|
)
|
(116,041
|
)
|
|||
Purchase
of treasury stock
|
-
|
(126
|
)
|
||||
Net
cash provided by (used by) financing activities of continuing
operations
|
(534,772
|
)
|
984,154
|
||||
Net
change in cash and cash equivalents
|
(2,666,605
|
)
|
6,479,564
|
||||
Cash
and cash equivalents, beginning of period
|
6,801,600
|
2,912,494
|
|||||
Cash
and cash equivalents, end of period
|
$
|
4,134,995
|
$
|
9,392,058
|
|||
Supplemental
disclosures:
|
|||||||
Cash
paid for interest, net of amounts capitalized
|
$
|
403,296
|
$
|
144,882
|
|||
Cash
paid for income taxes
|
3,418
|
1,245,060
|
|||||
Non-cash
investing and financing activities:
|
|||||||
Capital
leases for equipment
|
-
|
1,403,602
|
September
30,
|
December
31,
|
||||||
2007
|
2006
|
||||||
Current
assets
|
|||||||
Remediation
insurance receivable
|
$
|
253,049
|
$
|
329,888
|
|||
Total
assets of discontinued operations
|
$
|
253,049
|
$
|
329,888
|
|||
Current
liabilities
|
|||||||
Reserve
for remediation
|
$
|
112,813
|
$
|
208,221
|
|||
Total
liabilities of discontinued operations
|
$
|
112,813
|
$
|
208,221
|
2007
|
2006
|
||||||
Provision
for remediation
|
$
|
20,300
|
$
|
-
|
|||
Gain
(loss) from discontinued operations, before income taxes
|
(20,300
|
)
|
238,315
|
||||
Income
tax expense (benefit)
|
(7,639
|
)
|
89,678
|
||||
Gain
(loss) from discontinued operations, net of tax
|
$
|
(12,661
|
)
|
$
|
148,637
|
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||
|
September
30,
|
September
30,
|
|||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||
$
|
(456,444
|
)
|
$
|
479,434
|
$
|
(955,027
|
)
|
$
|
1,806,967
|
||||
Effective
income tax rate
|
(63.9
|
%)
|
38.5
|
%
|
(35.6
|
%)
|
38.5
|
%
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||
September 30,
|
September 30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Revenues
|
|||||||||||||
Electrical
construction
|
$
|
6,518,999
|
$
|
8,903,823
|
$
|
20,531,121
|
$
|
30,582,150
|
|||||
Real
estate development
|
41,042
|
3,244,927
|
(2,807,828
|
)
|
7,794,414
|
||||||||
Total
revenues
|
6,560,041
|
12,148,750
|
17,723,293
|
38,376,564
|
|||||||||
Operating
expenses
|
|||||||||||||
Electrical
construction
|
6,239,663
|
7,828,546
|
19,567,802
|
25,646,268
|
|||||||||
Real
estate development
|
675,988
|
2,425,694
|
(1,038,816
|
)
|
5,988,192
|
||||||||
Corporate
|
692,733
|
699,319
|
2,206,440
|
2,167,768
|
|||||||||
Total
operating expenses
|
7,608,384
|
10,953,559
|
20,735,426
|
33,802,228
|
|||||||||
Operating
income (loss)
|
|||||||||||||
Electrical
construction
|
279,336
|
1,075,277
|
963,319
|
4,935,882
|
|||||||||
Real
estate development
|
(634,946
|
)
|
819,233
|
(1,769,012
|
)
|
1,806,222
|
|||||||
Corporate
|
(692,733
|
)
|
(699,319
|
)
|
(2,206,440
|
)
|
(2,167,768
|
)
|
|||||
Total
operating income (loss)
|
(1,048,343
|
)
|
1,195,191
|
(3,012,133
|
)
|
4,574,336
|
|||||||
Other
income (expense), net
|
|||||||||||||
Electrical
construction
|
(63,079
|
)
|
(2,855
|
)
|
(181,337
|
)
|
(46,619
|
)
|
|||||
Real
estate development
|
370,634
|
18,155
|
424,624
|
124,037
|
|||||||||
Corporate
|
26,125
|
33,478
|
87,087
|
36,710
|
|||||||||
Total
other income (expense), net
|
333,680
|
48,778
|
330,374
|
114,128
|
|||||||||
Net
income (loss) before taxes
|
|||||||||||||
Electrical
construction
|
216,257
|
1,072,422
|
781,982
|
4,889,263
|
|||||||||
Real
estate development
|
(264,312
|
)
|
837,388
|
(1,344,388
|
)
|
1,930,259
|
|||||||
Corporate
|
(666,608
|
)
|
(665,841
|
)
|
(2,119,353
|
)
|
(2,131,058
|
)
|
|||||
Total
net income (loss) before taxes
|
$
|
(714,663
|
)
|
$
|
1,243,969
|
$
|
(2,681,759
|
)
|
$
|
4,688,464
|
September 30,
|
December 31,
|
||||||
|
2007
|
2006
|
|||||
Identifiable
assets
|
|||||||
Electrical
construction
|
$
|
21,076,344
|
$
|
21,317,634
|
|||
Real
estate development
|
11,425,716
|
16,225,823
|
|||||
Corporate
|
3,924,284
|
4,030,831
|
|||||
Discontinued
operations
|
253,049
|
329,888
|
|||||
Total
|
$
|
36,679,393
|
$
|
41,904,176
|
2007
|
2006
|
||||||
Electrical
construction
|
|||||||
Revenue
|
$
|
20,531,121
|
$
|
30,582,150
|
|||
Operating
expenses
|
|||||||
Cost
of goods sold
|
17,244,833
|
23,772,776
|
|||||
SG&A
|
194,832
|
177,856
|
|||||
Depreciation
|
2,138,063
|
1,715,617
|
|||||
Gain
on sale of assets
|
(9,926
|
)
|
(19,981
|
)
|
|||
Total
operating expenses
|
19,567,802
|
25,646,268
|
|||||
Operating
income
|
$
|
963,319
|
$
|
4,935,882
|
|||
Real
estate development
|
|||||||
Revenue
|
$
|
(2,807,828
|
)
|
$
|
7,794,414
|
||
Operating
expenses
|
|||||||
Cost
of goods sold
|
(1,729,933
|
)
|
5,336,218
|
||||
SG&A
|
199,083
|
633,056
|
|||||
Depreciation
|
18,807
|
18,918
|
|||||
Write
down of inventory
|
473,227
|
-
|
|||||
Total
operating expenses
|
(1,038,816
|
)
|
5,988,192
|
||||
Operating
income (loss)
|
$
|
(1,769,012
|
)
|
$
|
1,806,222
|
2007
|
2006
|
||||||
Electrical
construction
|
$
|
2,138,063
|
$
|
1,715,617
|
|||
Real
estate development
|
18,807
|
18,918
|
|||||
Corporate
|
109,093
|
100,060
|
|||||
Total
|
$
|
2,265,963
|
$
|
1,834,595
|
2007
|
2006
|
||||||
Electrical
construction
|
$
|
194,832
|
$
|
177,856
|
|||
Real
estate development
|
199,083
|
633,056
|
|||||
Corporate
|
2,104,641
|
2,072,611
|
|||||
Total
|
$
|
2,498,556
|
$
|
2,883,523
|
2007
|
2006
|
||||||
Income
tax expense (benefit)
|
$
|
(955,027
|
)
|
$
|
1,806,967
|
||
Effective
income tax rate
|
(35.6
|
)%
|
38.5
|
%
|
2007
|
2006
|
||||||
Electrical
construction
|
|||||||
Revenue
|
$
|
6,518,999
|
$
|
8,903,823
|
|||
Operating
expenses
|
|||||||
Cost
of goods sold
|
5,496,723
|
7,189,242
|
|||||
SG&A
|
33,304
|
63,206
|
|||||
Depreciation
|
716,563
|
571,659
|
|||||
(Gain)
loss on sale of assets
|
(6,927
|
)
|
4,439
|
||||
Total
operating expenses
|
6,239,663
|
7,828,546
|
|||||
Operating
income
|
$
|
279,336
|
$
|
1,075,277
|
|||
Real
estate development
|
|||||||
Revenue
|
$
|
41,042
|
$
|
3,244,927
|
|||
Operating
expenses
|
|||||||
Cost
of goods sold
|
46,293
|
2,187,300
|
|||||
SG&A
|
150,551
|
232,834
|
|||||
Depreciation
|
5,917
|
5,560
|
|||||
Write
down of inventory
|
473,227
|
-
|
|||||
Total
operating expenses
|
675,988
|
2,425,694
|
|||||
Operating
income (loss)
|
$
|
(634,946
|
)
|
$
|
819,233
|
2007
|
2006
|
||||||
Electrical
construction
|
$
|
716,563
|
$
|
571,659
|
|||
Real
estate development
|
5,917
|
5,560
|
|||||
Corporate
|
35,366
|
29,966
|
|||||
Total
|
$
|
757,846
|
$
|
607,185
|
2007
|
2006
|
||||||
Electrical
construction
|
$
|
33,304
|
$
|
63,206
|
|||
Real
estate development
|
150,551
|
232,834
|
|||||
Corporate
|
657,367
|
669,353
|
|||||
Total
|
$
|
841,222
|
$
|
965,393
|
|
2007
|
2006
|
|||||
Income
tax expense (benefit)
|
$
|
(456,444
|
)
|
$
|
479,434
|
||
Effective
income tax rate
|
(63.9
|
%)
|
38.5
|
%
|
2007
|
2006
|
||||||
Net
cash provided by operating activities
|
$
|
1,043,240
|
$
|
7,034,361
|
|||
Net
cash used by investing activities
|
(3,175,073
|
)
|
(1,538,951
|
)
|
|||
Net
cash provided by (used by) financing activities
|
(534,772
|
)
|
984,154
|
||||
Net
change in cash and cash equivalents
|
$
|
(2,666,605
|
)
|
$
|
6,479,564
|
Period
|
Total Number of
Shares Purchased |
Average Price
Paid per Share |
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs(1) |
Maximum Number
of Shares that May Yet Be Purchased Under the Plans or Programs |
|||||||||
07/1/07-07/31/07
|
-
|
$
|
-
|
-
|
1,154,940
|
||||||||
08/1/07-08/31/07
|
-
|
-
|
-
|
1,154,940
|
|||||||||
09/1/07-09/30/07
|
-
|
-
|
-
|
1,154,940
|
|||||||||
Total
|
-
|
$
|
-
|
-
|
1,154,940
|
(1)
|
Since
September 17, 2002, we have had a stock repurchase plan which, as
last
amended by the Board of Directors on May 31, 2007, permits the purchase
of
up to 3,500,000 shares until September 30, 2008. We may repurchase
our
shares either in the open market or through private transactions.
The
volume of the shares to be repurchased is contingent upon market
conditions and other factors. As of September 30, 2007, the total
number
of shares repurchased under the Repurchase Plan was 2,345,060 at
a cost of
$1,289,467 (average cost of $0.55 per share) and the remaining number
of
shares available to be repurchased under the Repurchase Plan is 1,154,940.
|
Dated:
November 8, 2007
|
The
Goldfield Corporation
|
||
By:
|
/s/
John
H. Sottile
|
||
John
H. Sottile
|
|||
Chairman
of the Board, President and Chief
|
|||
Executive
Officer (Principal Executive
|
|||
Officer)
|
|||
/s/
Stephen
R. Wherry
|
|||
Stephen
R. Wherry
|
|||
Senior
Vice President, Chief Financial
|
|||
Officer,
Treasurer and Assistant Secretary
|
|||
(Principal
Financial and Accounting
|
|||
Officer)
|