SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[x] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 2000
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission file number - 1-7525
THE GOLDFIELD CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 88-0031580
(State or other jurisdiction of (IRS employer identification no.)
incorporation or organization)
100 Rialto Place, Suite 500, Melbourne, Florida 32901
(Address of principal executive offices) (Zip code)
(321) 724-1700
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
There were 26,854,748 shares of common stock, par value $.10 per share, of The
Goldfield Corporation outstanding as of September 30, 2000.
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
THE GOLDFIELD CORPORATION
And Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
September 30, December 31,
2000 1999
<S>
ASSETS
Current assets <C> <C>
Cash and cash equivalents $ 3,532,817 $ 5,719,163
Accounts receivable and accrued billings 1,854,336 2,315,682
Current portion of notes receivable 51,853 42,383
Inventories 334,565 351,458
Costs and estimated earnings in excess of billings on
uncompleted contracts 2,067,984 139,051
Income taxes recoverable (Note 3) 20,993 --
Prepaid expenses and other current assets 524,946 535,845
Total current assets 8,387,494 9,103,582
Property, buildings and equipment, net 6,388,954 4,626,695
Notes receivable, less current portion 401,573 251,563
Deferred charges and other assets
Deferred income taxes (Note 3) 1,872,000 1,150,000
Land and land development costs 366,275 --
Land held for sale 258,567 385,296
Cash surrender value of life insurance 280,789 779,100
Other assets 171,245 --
Total deferred charges and other assets 2,948,876 2,314,396
Total assets $18,126,897 $16,296,236
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 1,843,242 $ 1,453,707
Billings in excess of costs and estimated earnings on
uncompleted contracts 90,108 59,974
Current portion of deferred gain on installment sales 15,521 10,905
Income taxes payable (Note 3) 41,362 71,639
Total current liabilities 1,990,233 1,596,225
Deferred gain on installment sales, less current portion 132,108 47,303
Total liabilities 2,122,341 1,643,528
Stockholders' equity
Preferred stock, $1 par value per share, 5,000,000 shares
authorized; issued and outstanding 339,407 shares of
Series A 7% voting cumulative convertible stock 339,407 339,407
Common stock, $.10 par value per share, 40,000,000 shares
authorized; issued and outstanding 26,872,106 shares 2,687,211 2,687,211
Capital surplus 18,369,860 18,369,860
Accumulated deficit (5,373,202) (6,725,050)
Total 16,023,276 14,671,428
Less common stock in treasury, 17,358 shares, at cost 18,720 18,720
Total stockholders' equity 16,004,556 14,652,708
Total liabilities and stockholders' equity $18,126,897 $16,296,236
See accompanying notes to consolidated financial statements
</TABLE>
<TABLE>
THE GOLDFIELD CORPORATION
And Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
<S> 2000 1999 2000 1999
Revenue <C> <C> <C> <C>
Electrical construction $ 5,621,835 $ 3,085,624 $ 17,428,000 $ 14,461,978
Mining 592,179 522,755 2,109,694 1,615,921
Other income, net 75,867 50,441 322,994 187,846
Total revenue 6,289,881 3,658,820 19,860,688 16,265,745
Costs and expenses
Electrical construction 4,959,418 2,415,227 14,644,379 11,589,363
Mining 600,143 513,342 1,850,572 1,521,979
Depreciation and amortization 349,939 274,756 931,737 807,710
Impairment recoveries (10,609) (181,087) (41,027) (234,587)
General and administrative 351,118 323,853 1,715,409 1,058,207
Interest expense 11,031 -- 14,391 --
Total costs and expenses 6,261,040 3,346,091 19,115,461 14,742,672
Income from operations before
income taxes 28,841 312,729 745,227 1,523,073
Income taxes (benefit) (Note 3) 37,404 7,766 (624,440) 97,120
Net (loss) income (8,563) 304,963 1,369,667 1,425,953
Preferred stock dividends 5,940 5,940 17,819 17,819
(Loss) income available to common
stockholders $ (14,503) $ 299,023 $ 1,351,848 $ 1,408,134
Basic and diluted earnings per
share of common stock (Note 4) $ 0.00 $ 0.01 $ 0.05 $ 0.05
Weighted average number of
common shares outstanding 26,854,748 26,854,748 26,854,748 26,854,748
</TABLE>
See accompanying notes to consolidated financial statements
<TABLE>
THE GOLDFIELD CORPORATION
And Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
<S> 2000 1999 2000 1999
Cash flows from operating activities
<C> <C> <C> <C>
Net (loss) income $ (8,563) $ 304,963 $1,369,667 $1,425,953
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities
Depreciation and amortization 349,939 274,756 931,737 807,710
Deferred income taxes -- -- (722,000) --
Loss (gain) on sale of property and
equipment -- 8,115 (80,271) (22,275)
Gain on disposition of land held for sale (4,558) (5,698) (37,900) (26,979)
Write off of notes receivable -- -- -- 88,197
Other assets (77,745) -- (171,245) --
Cash provided from (used by) changes in
Accounts receivable and accrued billings 1,329,046 45,533 461,346 (623,350)
Inventories (11,456) 1,520 16,893 53,671
Costs and estimated earnings in excess of
billings on uncompleted contracts (127,207) 603,204 (1,928,933) 1,006,444
Income taxes recoverable (4,818) -- (20,993) --
Prepaid expenses and other current assets 158,509 (137,987) 10,899 (308,668)
Accounts payable and accrued liabilities (881,275) 192,755 389,535 (382,099)
Billings in excess of costs and estimated
earnings on uncompleted contracts (5,938) 195,328 30,134 185,884
Income taxes payable 23,144 (17,234) (30,277) 22,108
Net cash provided by operating activities 739,078 1,465,255 218,592 2,226,596
Cash flows from investing activities
Proceeds from the disposal of property and
equipment -- 11,000 127,700 81,462
Proceeds from sale of subsidiary -- -- -- 525,070
Issuance of notes receivable -- (159,101) -- (161,748)
Proceeds from notes receivable 12,312 18,540 45,247 79,233
Purchases of property and equipment (587,821) (465,814) (2,741,425) (1,430,559)
Purchase of properties held for development (366,275) -- (366,275) --
Purchase of land held for sale -- (113,542) -- (273,565)
Proceeds from sale of land held for sale 4,000 -- 49,323 31,000
Cash surrender value of life insurance -- (3,100) 498,311 (3,600)
Net cash used by investing activities (937,784) (712,017) (2,387,119) (1,152,707)
Cash flows from financing activities
Payments of preferred stock dividends (5,940) (5,940) (17,819) (17,819)
Net (decrease) increase in cash and cash
equivalents (204,646) 747,298 (2,186,346) 1,056,070
Cash and cash equivalents at beginning of
period 3,737,463 2,925,237 5,719,163 2,616,465
Cash and cash equivalents at end of period $3,532,817 $3,672,535 $3,532,817 $3,672,535
Supplemental disclosure of cash flow
information:
Income taxes paid $ 19,078 $ 25,000 $ 148,830 $ 75,012
Interest paid 5,319 -- 5,319 --
Supplemental disclosure of non-cash investing
activities:
Notes receivable in partial payment for land
held for sale 26,000 -- 204,726 10,000
Land held for sale acquired as payment for
notes and accounts receivable -- -- -- 120,104
</TABLE>
See accompanying notes to consolidated financial statements
THE GOLDFIELD CORPORATION
and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2000
Note 1 - Basis of Presentation
In the opinion of management, the accompanying unaudited interim consolidated
financial statements include all adjustments necessary to present fairly
the financial position of the Company, the results of its operations and
changes in cash flows for the interim periods reported. These adjustments
are of a normal recurring nature. All financial statements presented
herein are unaudited. However, the balance sheet as of December 31, 1999,
was derived from the audited consolidated balance sheet. These statements
should be read in conjunction with the financial statements included in the
Company's annual report on Form 10-K for the year ended December 31, 1999.
The results of operations for the interim periods shown in this report are not
necessarily indicative of results to be expected for the fiscal year.
Note 2 - Reclassifications
Certain amounts in 1999 have been reclassified to conform to the 2000
presentation.
Note 3 - Income Taxes
The income tax provisions consisted of the following:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Current
Federal $ 2,000 $ -- $ 2,000 $25,000
State 36,951 7,766 95,560 72,120
38,951 7,766 97,560 97,120
Deferred
Federal -- -- (608,000) --
State -- -- (114,000) --
-- -- (722,000) --
Total $38,951 $7,766 $(624,440) $97,120
</TABLE>
The effective income tax rate was (84)% and 7% for the nine months ended
September 30, 2000 and 1999, respectively, primarily due to decreasing
the valuation allowance and the application of a net operating loss
carryforward. At September 30, 2000, the Company had tax net operating
loss carryforwards of approximately $4,500,000 available to offset future
regular taxable income, which, if unused, will expire from 2001 through
2018. The Company decreased the valuation allowance for deferred tax
assets by $1,019,000 for the nine months ended September 30, 2000.
Note 4 - Basic and Diluted Earnings Per Share of Common Stock
Basic earnings per common share, after deducting dividend requirements
on the Company's Series A 7% Voting Cumulative Convertible Preferred
Stock ("Series A Stock") of $17,819 in each of the nine month periods
ended September 30, 2000 and 1999, were based on the weighted average
number of shares of Common Stock outstanding, excluding 17,358 shares
of Treasury Stock for each of the periods ended September 30, 2000 and
1999. Common shares issuable on conversion of Series A Stock are not
considered in the diluted earnings per share calculation because their
inclusion would be anti-dilutive.
Note 5 - Business Segment Information
The Company is primarily involved in two business segments, mining and
electrical construction. There were no material amounts of sales or
transfers between segments and no material amounts of export sales.
The following table sets forth certain segment information for the periods
indicated. Any intersegment sales have been eliminated.
<TABLE>
<CAPTION>
Three Months Ended
September 30,
<S> 2000 1999
Sales from operations to
unaffiliated customers <C> <C>
Electrical construction $5,621,835 $3,085,624
Mining 592,179 522,755
Total $6,214,014 $3,608,379
Gross profit
Electrical construction $ 401,177 $ 490,269
Mining (68,854) 113,872
Total gross profit 332,323 604,141
Interest and other income, net 75,867 50,441
Interest expense (11,031) --
General corporate expenses (368,318) (341,853)
Income from operations before
income taxes $ 28,841 $ 312,729
</TABLE>
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
<S> 2000 1999
Sales from operations to
unaffiliated customers <C> <C>
Electrical construction $17,428,000 $14,461,978
Mining 2,109,694 1,615,921
Total $19,537,694 $16,077,899
Gross profit
Electrical construction $ 2,107,147 $ 2,343,076
Mining 98,145 103,458
Total gross profit 2,205,292 2,446,534
Interest and other
income, net 322,994 187,846
Interest expense (14,391) --
General corporate expenses (1,768,668) (1,111,307)
Income from operations before
income taxes $ 745,227 $ 1,523,073
</TABLE>
Gross profit is total operating revenue less operating expenses.
Gross profit excludes general corporate expenses, interest expense,
interest income and income taxes. Impairment losses and recoveries
are included in the calculations of gross profit for the mining
segment. Identifiable assets by industry are used in the operations
of each industry.
The following table sets forth certain segment information as of
the dates indicated:
<TABLE>
<CAPTION>
September 30, December 31,
<S> 2000 1999
Identifiable assets <C> <C>
Electrical construction $11,035,357 $ 9,872,851
Mining 2,874,183 2,796,696
Corporate 4,217,357 3,626,689
Total $18,126,897 $16,296,236
</TABLE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
Financial Condition.
At September 30, 2000, the financial condition of the Company remains
comparable to its condition at December 31, 1999 and September 30, 1999.
However, costs and estimated earnings in excess of billings on uncompleted
contracts as of September 30, 2000 amounted to $2,067,984, compared to
$139,051 as of December 31, 1999. This increase was primarily due to the
nature of various construction projects and the timing of related billings.
Approximately half of the balance at September 30, 2000 was billed for and
collected during October 2000. Also, property, buildings and equipment,
net increased to $6,388,954 as of September 30, 2000 compared to $4,626,695
as of December 31, 1999. This increase was a result of increased capital
expenditures made primarily to accommodate the increased level of
operations in the Company's electrical construction subsidiary. See also
Liquidity and Capital Resources.
Results of Operations - Nine Months Ended September 30, 2000 Compared
to Nine Months Ended September 30, 1999.
Net Income
The Company had net income of $1,369,667 for the nine months ended
September 30, 2000, compared to net income of $1,425,953 for the nine
months ended September 30, 1999.
Revenues
Total revenues for the nine months ended September 30, 2000 were
$19,860,688, compared to $16,265,745 for the nine months ended
September 30, 1999. This increase was primarily attributable to higher
electrical construction revenue.
Electrical construction revenue increased by 21% in the nine months
ended September 30, 2000 to $17,428,000 from $14,461,978 for the nine
months ended September 30, 1999. This increase was primarily attributable
to increases in transmission line and fiber optic cable construction.
Revenue from mining operations increased by 31% to $2,109,694 for the nine
months ended September 30, 2000 from $1,615,921 for the nine months ended
September 30, 1999. This increase was primarily attributable to an
increase in various construction projects. These projects include land
reclamation and construction aggregate projects.
Operating Results
Electrical construction operations had an operating profit of $2,107,147
in the nine months ended September 30, 2000, compared to an operating
profit of $2,343,076 during the nine months ended September 30, 1999.
Operating profit was lower for the nine months ended September 30, 2000
on increased revenue due primarily to increased subcontract costs. At
September 30, 2000, the approximate value of uncompleted contracts was
$7,350,000, compared to $2,600,000 at September 30, 1999. The varying
magnitude and duration of electrical construction projects may
result in substantial fluctuation in the Company's backlog from time to time.
During the nine months ended September 30, 2000, the operating profit
from mining operations decreased to $98,145 from an operating profit of
$103,458 during the nine months ended September 30, 1999. The operating
results from mining operations in 2000 included the recovery of $41,027 of
previously recorded impairment losses related to a mine previously owned
by the Company, ("the San Pedro mine"). The 1999 operating results from
mining included the recovery of $234,587 of previously recorded impairment
losses related to a coal royalty the Company had retained in property it
formerly owned in Harlan, Kentucky and the San Pedro mine. Excluding
these recoveries, the mining operations had an operating profit of $57,118
for the nine months ended September 30, 2000 compared to an operating
loss of $131,129 for the nine months ended September 30, 1999. The
operating results from mining included depreciation expense of $202,004
during the nine months ended September 30, 2000, compared to $225,071
during the nine months ended September 30, 1999.
St. Cloud Mining Company, a wholly owed subsidiary of the Company
("St. Cloud"), sold 12,899 tons of natural zeolite during the nine
months ended September 30, 2000, compared to 12,367 tons during the nine
months ended September 30, 1999.
Other Income
Other income for the nine months ended September 30, 2000 was $322,994,
compared to $187,846 in the nine months ended September 30, 1999.
This increase in other income was primarily a result of both increased
interest income and gain on sale of fixed assets.
Costs and Expenses
Total costs and expenses, and the components thereof, increased to
$19,115,461 for the nine months ended September 30, 2000 from $14,742,672
for the nine months ended September 30, 1999.
Electrical construction costs were $14,644,379 and $11,589,363 in the
nine months ended September 30, 2000 and 1999, respectively. The increase
in costs for the 2000 period was primarily attributable to an increase
in subcontract costs.
Mining costs were $1,850,572 for the nine months ended September 30, 2000,
compared to $1,521,979 in the nine months ended September 30, 1999.
Depreciation and amortization was $931,737 in the nine months ended
September 30, 2000, compared to $807,710 in the nine months ended
September 30, 1999. The increase in depreciation and amortization for
2000 was attributable to an increased level of capital expenditures.
General corporate expenses of the Company increased to $1,768,668 in the
nine months ended September 30, 2000, from $1,111,307 in the nine months
ended September 30, 1999. The increase in general corporate expenses
for 2000 was primarily attributable to a $425,311 net expense related
to payments made under Cancellation and Release Agreements pursuant to
which the Company's Employee Benefit Agreements were terminated.
Such Cancellation and Release Agreements were filed as exhibits to the
Company's Form 10Q for the quarter ended June 30,2000. The increase in
general corporate expenses also resulted from an increase in professional
services and other general and administrative expenses.
Results of Operations - Three Months Ended September 30, 2000 Compared
to Three Months Ended September 30, 1999.
Net Income
The Company incurred a net loss of $8,563 for the three months ended
September 30, 2000, compared to net income of $304,963 for the three
months ended September 30, 1999.
Revenues
Total revenues for the three months ended September 30, 2000 were
$6,289,881, compared to $3,658,820 for the three months ended
September 30, 1999. This increase was primarily attributable to
higher electrical construction revenue.
Electrical construction revenue increased by 82% in the three months
ended September 30, 2000 to $5,621,835 from $3,085,624 for the three
months ended September 30, 1999. This increase was primarily attributable
to an increase in transmission line construction.
Revenue from mining operations increased by 13% to $592,179 for the
three months ended September 30, 2000 from $522,755 for the three months
ended September 30, 1999.
Operating Results
Electrical construction operations had an operating profit of $401,177
in the three months ended September 30, 2000, compared to an operating
profit of $490,269 during the three months ended September 30, 1999.
Operating profit was lower for the three months ended September 30, 2000
as compared to the three months ending September 30, 1999 on increased
revenue due primarily to lower margins on increased subcontract costs.
During the three months ended September 30, 2000, the operating loss
from mining operations was $68,854 compared to an operating profit of
$113,872 during the three months ended September 30, 1999. The operating
results from mining operations in the three months ended September 30,
2000 and 1999 included the recovery of $10,609 and $181,087, respectively,
of previously recorded impairment losses related to the San Pedro mine.
Excluding these recoveries the mining operations incurred an operating loss
for the three months ended September 30, 2000 and 1999 of $79,463 and
$67,215, respectively. The operating results from mining included
depreciation expense of $71,499 during the three months ended September
30, 2000, compared to $76,629 during the three months ended
September 30, 1999.
St. Cloud sold 3,912 tons of natural zeolite during the three months
ended September 30, 2000, compared to 4,110 tons during the three months
ended September 30, 1999.
Other Income
Other income for the three months ended September 30, 2000 was $75,867,
compared to $50,441 in the three months ended September 30, 1999.
This increase in other income was primarily a result of increased
interest income.
Costs and Expenses
Total costs and expenses, and the components thereof, increased to
$6,261,040 for the three months ended September 30, 2000 from
$3,346,091 for the three months ended September 30, 1999.
Electrical construction costs were $4,959,418 and $2,415,227 in the
three months ended September 30, 2000 and 1999, respectively. The
increase in costs in 2000 was primarily attributable to an increase
in subcontract costs.
Mining costs were $600,143 for the three months ended September 30, 2000,
compared to $513,342 in the three months ended September 30, 1999.
Depreciation and amortization was $349,939 in the three months ended
September 30, 2000, compared to $274,756 in the three months ended
September 30, 1999. This increase in depreciation and amortization
was attributable to an increased level of capital expenditures.
General corporate expenses of the Company increased slightly to $368,318
in the three months ended September 30, 2000, from $341,853 in the three
months ended September 30, 1999.
Liquidity and Capital Resources
Cash and cash equivalents at September 30, 2000 were $3,532,817 as
compared to $5,719,163 as of December 31, 1999. The decrease in
cash was primarily the result of capital expenditures in the
electrical construction segment, as discussed below. Working
capital at September 30, 2000 was $6,397,261, compared to $7,507,357
at December 31, 1999. The Company's ratio of current assets to
current liabilities decreased to 4.2 to 1 at September 30, 2000, from
5.7 to 1 at December 31, 1999. This decrease in the current ratio
was a result of the investment in capital equipment and a combination
of an increase in accounts receivable and costs and estimated earnings
in excess of billings on uncompleted contracts and an increase in
accounts payable and accrued liabilities.
The Company does not enter into financial instruments for trading
purposes. Financial instruments entered into for other than trading
purposes consist principally of cash and cash equivalents with limited
market risk sensitivity.
The Company paid cash dividends on its Series A Preferred Stock in
the amount of $17,819 in each of the nine months ended
September 30, 2000 and 1999. The Company has paid no cash dividends
on its Common Stock since 1933, and it is not expected that the Company
will pay any cash dividends on its Common Stock in the immediate future.
Pursuant to an unsecured line of credit agreement entered into on
October 30, 2000 between the Company and SunTrust Bank of Central
Florida, N.A. ("SunTrust") (guaranteed by the Company's subsidiary,
Southeast Power Corporation), the Company may borrow up to $3,000,000
at the bank's prime rate of interest. This credit line expires
April 30, 2001, at which time the Company expects to renew it for
an additional year. One hundred thousand dollars of this line of credit
has been reserved for a standby letter of credit. This line of credit
replaces the previous line of credit agreement between Southeast
Power Corporation and SunTrust. No borrowings were outstanding
under this previous line of credit during the nine months ended September
30, 2000 and 1999. Currently, there are no borrowings outstanding
under the new line of credit.
The Company's capital expenditures for the nine months ended
September 30, 2000 increased to $2,741,425 from $1,430,559 for the
nine months ended September 30, 1999. This increase in the level of
capital expenditures was primarily to accommodate the increased level
of operations in the Company's electrical construction subsidiary.
In addition, the Company is expanding its real estate operations
to include development of luxury condominium projects. To date,
the Company has purchased or contracted to purchase three waterfront
sites for development into twenty one units near Cocoa Beach,
Florida. Development and construction is expected to take
approximately two years per project.
Although no definitive construction contracts have been awarded,
the Company presently estimates the aggregate sell out of these
three projects to be $12,500,000. During the first nine months of
this year, the Company spent approximately $370,000 on site acquisition
costs and anticipates spending in the fourth quarter an additional
$550,000. Initial financing has been secured through an expanded line
of credit. Construction financing is expected to be secured through
conventional real estate project financing. The Company has received
presale reservations for all units in the first project and ten
out of twelve units in the second project. The Company does not
intend to proceed with the development of a project unless it has
sales contracts sufficient to cover most of that project's projected
costs.
Year 2000 Compliance
In the past, many computers, software programs, and other information
technology ("IT systems"), as well as other equipment relying on
microprocessors or similar circuitry ("non-IT systems"), were written
or designed using two digits, rather than four, to define the
applicable year. As a result, if not addressed, these systems may not
have been able to properly interpret dates beyond the Year 1999,
which may have led to business disruptions. Accordingly, the Company
identified and performed all needed material modifications and
testing of significant systems, and communicated with customers,
suppliers, banks and others with whom it does significant business to
determine their Year 2000 readiness and the extent to which the Company
was vulnerable to any other organization's Year 2000 issues.
The Company considers the transition into the Year 2000 successful
from the perspective of its information technology and other systems.
In addition to the changeover to January 1, 2000, it has been shown
that certain other dates may also present similar problems for some
systems. The Company continues to monitor the situation. To date,
the Company has not experienced any material Year 2000 issues with
respect to its systems, customers or suppliers.
The Company estimates that the total cost to the Company of Year 2000
activities has been less than $10,000.
New Accounting Pronouncements
Statement 133 - Accounting for Derivative Instruments and Hedging
Activities. Statement 133 establishes methods of accounting for
derivative financial instruments and hedging activities related
to those instruments as well as other hedging activities. As the Company
does not hold derivative instruments or engage in hedging activities,
we do not anticipate that the adoption of this statement will have a material
impact on our consolidated financial statements. We will be required
to implement Statement 133 in the first quarter of our year ending
December 31, 2001.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There were no material changes in the information provided in the
Company's December 31, 1999 consolidated financial statements.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K
No Current Report on Form 8-K was filed during
the quarter ended September 30, 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
THE GOLDFIELD CORPORATION
(Registrant)
Date: November 13, 2000 /s/ John H. Sottile
(John H. Sottile)
Chairman of the Board of Directors,
President, Chief Executive Officer
and Director
/s/ Stephen R. Wherry
(Stephen R. Wherry)
Vice President, Treasurer and
Chief Financial Officer
