Goldfield Corp (GV, Financial) filed Quarterly Report for the period ended 2010-06-30.
Goldfield Corp has a market cap of $8.6 million; its shares were traded at around $0.3409 with and P/S ratio of 0.3. GV is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The varying magnitude and duration of electrical construction projects may result in substantial fluctuations in our backlog from time to time. Backlog represents the uncompleted portion of services to be performed under project-specific contracts and the estimated value of future services that we expect to provide under our existing service agreements, including new contractual agreements on which work has not begun. In many instances, our customers are not contractually committed to specific volumes of services and many of our contracts may be terminated with notice, therefore we do not consider any portion of our backlog to be firm. However, our customers become obligated once we provide the services they have requested. Our service agreements are typically multi-year agreements, and we include in our backlog the amount of services projected to be performed over the terms of the contracts based on our historical relationships with these customers. Our estimates of a customers requirements during a particular future period may not be accurate at any point in time. As of June 30, 2010, the electrical construction operations backlog was approximately $6.2 million, which included approximately $1.7 million from fixed price contracts for which revenue is recognized using percentage-of-completion and approximately $4.5 million from service agreement contracts for which revenue is recognized as work is performed. Of our total backlog, we expect approximately 66% to be completed within the current fiscal year. This compares to a backlog of $9.2 million at June 30, 2009, of which approximately $3.1 million represented backlog from fixed price contracts and approximately $6.1 million represented service agreement backlog.
Total operating loss was $220,000 for the six months ended June 30, 2010, compared to an operating loss of $433,000 for the like period in 2009, an improvement of $213,000. Electrical construction operations had operating income of $932,000 during the six months ended June 30, 2010, compared to operating income of $1.1 million during the six months ended June 30, 2009, a decrease of $215,000. Operating margins on electrical construction operations decreased to 5.8% for the six months ended June 30, 2010, from 7.1% for the six months ended June 30, 2009. The decrease in operating margins is mainly due to a reduction in revenue from higher margin storm work projects, when compared to the same period in the prior year.
Real estate development operations had operating income of $170,000 in the six months ended June 30, 2010, compared to an operating loss of $260,000 in the six months ended June 30, 2009, an increase of $429,000. The increase in operating income for the six month period ended June 30, 2010, was primarily due to the three Pineapple House condominium units sold during the six month period ended June 30, 2010, compared to no sales during the same period in the prior year.
Electrical construction cost of goods sold increased to $13.7 million in the six months ended June 30, 2010, from $13.4 million in the six months ended June 30, 2009, an increase of $322,000. The increase in costs reflects the aforementioned decrease in higher margin projects, during the six months ended June 30, 2010, when compared to the same period in the prior year.
Depreciation expense was $1.4 million in the six months ended June 30, 2010, compared to $1.6 million in the six months ended June 30, 2009, a decrease of $114,000 or 7.3%. The decrease in depreciation expense is mainly due to the timing of assets becoming fully depreciated, primarily within the electrical construction segment.
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Goldfield Corp has a market cap of $8.6 million; its shares were traded at around $0.3409 with and P/S ratio of 0.3. GV is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Electrical construction revenue remained almost level at $16.2 million for the six months ended June 30, 2010, compared to $16.1 million for the six months ended June 30, 2009, an increase of $67,000, or 0.4%.The varying magnitude and duration of electrical construction projects may result in substantial fluctuations in our backlog from time to time. Backlog represents the uncompleted portion of services to be performed under project-specific contracts and the estimated value of future services that we expect to provide under our existing service agreements, including new contractual agreements on which work has not begun. In many instances, our customers are not contractually committed to specific volumes of services and many of our contracts may be terminated with notice, therefore we do not consider any portion of our backlog to be firm. However, our customers become obligated once we provide the services they have requested. Our service agreements are typically multi-year agreements, and we include in our backlog the amount of services projected to be performed over the terms of the contracts based on our historical relationships with these customers. Our estimates of a customers requirements during a particular future period may not be accurate at any point in time. As of June 30, 2010, the electrical construction operations backlog was approximately $6.2 million, which included approximately $1.7 million from fixed price contracts for which revenue is recognized using percentage-of-completion and approximately $4.5 million from service agreement contracts for which revenue is recognized as work is performed. Of our total backlog, we expect approximately 66% to be completed within the current fiscal year. This compares to a backlog of $9.2 million at June 30, 2009, of which approximately $3.1 million represented backlog from fixed price contracts and approximately $6.1 million represented service agreement backlog.
Total operating loss was $220,000 for the six months ended June 30, 2010, compared to an operating loss of $433,000 for the like period in 2009, an improvement of $213,000. Electrical construction operations had operating income of $932,000 during the six months ended June 30, 2010, compared to operating income of $1.1 million during the six months ended June 30, 2009, a decrease of $215,000. Operating margins on electrical construction operations decreased to 5.8% for the six months ended June 30, 2010, from 7.1% for the six months ended June 30, 2009. The decrease in operating margins is mainly due to a reduction in revenue from higher margin storm work projects, when compared to the same period in the prior year.
Real estate development operations had operating income of $170,000 in the six months ended June 30, 2010, compared to an operating loss of $260,000 in the six months ended June 30, 2009, an increase of $429,000. The increase in operating income for the six month period ended June 30, 2010, was primarily due to the three Pineapple House condominium units sold during the six month period ended June 30, 2010, compared to no sales during the same period in the prior year.
Electrical construction cost of goods sold increased to $13.7 million in the six months ended June 30, 2010, from $13.4 million in the six months ended June 30, 2009, an increase of $322,000. The increase in costs reflects the aforementioned decrease in higher margin projects, during the six months ended June 30, 2010, when compared to the same period in the prior year.
Depreciation expense was $1.4 million in the six months ended June 30, 2010, compared to $1.6 million in the six months ended June 30, 2009, a decrease of $114,000 or 7.3%. The decrease in depreciation expense is mainly due to the timing of assets becoming fully depreciated, primarily within the electrical construction segment.
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