The Goldfield Corporation 8K/A

 

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K/A

CURRENT REPORT

PURSUANT TO SECTION 13 OF 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

______________

 

December 4, 2002
Date of Report (Date of Earliest Event Reported)

 

THE GOLDFIELD CORPORATION
(Exact Name of Registrant as Specified in Charter)

 

          Delaware         
(State or Other Jurisdiction
of Incorporation)

    1-7525         88-0031580     
(Commission  (IRS Employer
File Number) Identification No.)

 

100 Rialto Place, Suite 500, Melbourne, Florida      

          32901       

    (Address of principal executive offices)            

(Zip code)

Registrant's telephone number, including area code                  (321) 724-1700     

 

 

 

 


This Form 8-K/A amends the Current Report on Form 8-K, dated December 4, 2002 and filed December 6, 2002 and provides information that was unavailable at the date of the original filing.

The amended Current Report includes a revised amount of consideration received, which has been changed to include a post-closing adjustment, and the required pro forma financial statements.

Item 2.   Acquisition or Disposition of Assets

        The Goldfield Corporation ("Goldfield") announced on December 4, 2002 that it had completed the previously announced plan to divest its mining operations, which have been reported as a discontinued operation since the first quarter of 2002.  Pursuant to a Stock Purchase Agreement, effective November 30, 2002, between Goldfield and Imagin Minerals, Inc. ("Imagin") (the "Stock Purchase Agreement"), Goldfield sold to Imagin the capital stock of its mining subsidiaries, St. Cloud Mining Company ("St. Cloud") and The Goldfield Consolidated Mines Company ("GVCM").

        Under the terms of the sale, Goldfield received $3,473,613, which includes $2,497,590 (net of post-closing adjustment) in cash paid by the purchaser, $370,210 by transfer to Goldfield of cash balances from the companies sold and the assignment by St. Cloud to Goldfield of $605,813 in outstanding real estate notes receivable.  

        The purchase price was determined pursuant to arms-length negotiations between Goldfield and Imagin.  Imagin is an unaffiliated private company headed by Garold Spindler, former President of the Cyprus Amax Coal Company.

Item 7.   Financial Statements and Exhibits

(b) Pro Forma Financial Information

        Effective November 30, 2002, Goldfield sold all of the outstanding shares of its two mining subsidiaries, St. Cloud and GVCM, to Imagin. Under the terms of the sale, Goldfield received $3,473,613, which includes $2,497,590 in cash paid by the purchaser, $370,210 by transfer to Goldfield of cash balances from the subsidiaries sold and the assignment by St. Cloud to Goldfield of $605,813 in outstanding real estate notes receivable.

        The unaudited pro forma consolidated balance sheet as of September 30, 2002 includes the unaudited historical financial position of Goldfield, adjusted for the pro forma effects of the disposition, assuming the disposition occurred on September 30, 2002.

        The unaudited pro forma consolidated statement of operations for the year ended December 31, 2001 includes the audited historical results of operations for Goldfield, adjusted for the pro forma effects of the disposition, assuming the disposition occurred on January 1, 2001.

        The unaudited pro forma consolidated statements of operations for the nine months ended September 30, 2002 include the unaudited historical results of operations for Goldfield, adjusted for the pro forma effects of the disposition, assuming the disposition occurred on January 1, 2001.

        The unaudited pro forma consolidated financial statements are not necessarily indicative of the results of operations that would have actually occurred if the disposition had been consummated as of January 1, 2001. These statements should be read in conjunction with Goldfield's historical consolidated financial statements and related notes thereto, in its annual

 

 

 

 

 

 

 

 

report on Form 10-K for the year ended December 31, 2001 and its quarterly report on Form 10-Q for the quarter ended September 30, 2002.


 

 

   
Item 7. Financial Statements and Exhibits  
               
               
THE GOLDFIELD CORPORATION AND SUBSIDIARIES  
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET  
AS OF SEPTEMBER 30, 2002  
               
               
         

Pro Forma

    
     

Historical

  

Adjustments

  

Pro Forma
               
ASSETS              
Current assets          
   Cash and cash equivalents $ 7,353,375    $ 2,819,103  (a) $ 10,172,478 
   Short-term investments 249,880    -    249,880 
   Accounts receivable and accrued billings 1,315,914    -    1,315,914 
   Current portion of notes receivable 7,650    23,933  (a)  
          14,584  (b) 46,167 
   Costs and estimated earnings in excess of          

     billings on uncompleted contracts  

 722,333    -   722,333 

   Deferred income taxes

219,476    -   219,476 

   Residential properties under construction

 605,888    -   605,888 
   Prepaid expenses 741,429    -   741,429 
   Other current assets 60,648    -   60,648 
   Current assets of discontinued operations 1,029,706    (1,015,122) (a)  
          (14,584) (b) - 
     Total current assets 12,306,299    1,827,914    14,134,213 
Property, buildings and equipment, net 4,692,488    -    4,692,488 
Notes receivable, less current portion 24,146    581,384  (a)  
          92,914  (b) 698,444 
Deferred charges and other assets          
   Deferred income taxes, less current portion 1,557,402    -   1,557,402 
   Land and land development costs, less current portion 1,081,090    -   1,081,090 
   Land held for sale 149,893    -   149,893 
   Cash surrender value of life insurance 292,125    -   292,125 
   Other assets 142,357    -   142,357 
     Total deferred charges and other assets 3,222,867    -   3,222,867 
Non-current assets of discontinued operations 2,267,817    (2,174,903) (a)  
          (92,914) (b) - 
Total assets $ 22,513,617    $ 234,395    $ 22,748,012 
               
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities          
   Accounts payable and accrued liabilities $ 1,390,308    $ 568,000  (a)  
           18,000  (c) $ 1,976,308 
   Billings in excess of costs and estimated          
     earnings on uncompleted contracts 21,569    -    21,569 
   Note payable to bank 342,350    -    342,350 
   Income taxes payable 26,512    -    26,512 
   Current liabilities of discontinued operations 277,606    (259,606) (a)  
          (18,000) (c) - 
     Total current liabilities 2,058,345    308,394    2,366,739 
               
Total liabilities 2,058,345    308,394    2,366,739 
               
Stockholders' equity          
   Preferred stock, $1 par value per share, 100,000          
     shares authorized, none issued -    -    - 
   Common stock, $.10 par value per share,          
     40,000,000 shares authorized;
      27,570,104 shares issued 		2,757,010    -    2,757,010 
   Capital surplus 18,452,748    -    18,452,748 
   Accumulated deficit (680,306)   (73,999) (a) (754,305)
     Total 20,529,452    (73,999)   20,455,453 
   Less common stock in treasury, at cost; 156,008 shares 74,180    -    74,180 
       Total stockholders' equity 20,455,272    (73,999)   20,381,273 
Total liabilities and stockholders' equity $ 22,513,617    $ 234,395    $ 22,748,012 
               
               
               

 


 

THE GOLDFIELD CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2001
Pro Forma
Historical Adjustments Pro Forma
Revenue
Electrical construction  $ 21,804,496   $                  -   $ 21,804,496 
Mining 2,016,074  (2,016,074) (d)          -   
Real estate 112,545           -         112,545 
   Total revenue     23,933,115    (2,016,074)   21,917,041 
Costs and expenses
Electrical construction 16,969,631           -      16,969,631 
Mining 1,853,197  (1,853,197) (d)          -   
Real estate 95,928           -          95,928 
Depreciation and amortization 1,568,679  (243,928) (d)    1,324,751 
General and administrative 2,417,330  (20,634) (d)    2,396,696 
   Total costs and expenses     22,904,765    (2,117,759)   20,787,006 
Other income, net
Interest income      193,956       (23,563)

 (d)
      15,540  (e)      185,933 
Interest expense, net      (49,040)       14,884  (d)      (34,156)
Gain on sale of property and equipment       23,726       (16,010) (d)        7,716 
Gain on sale of land      420,014      (420,014) (d)          -   
Other       48,073        (5,445) (d)       42,628 
     636,729      (434,608)      202,121 
Income from operations 
  before income taxes    1,665,079      (332,923)    1,332,156 
Income taxes (benefit) 172,313  (113,194) (g)       59,119 
Net income    1,492,766      (219,729)    1,273,037 
  Preferred stock dividends         13,181     -   

13,181 

Income from continuing operations before 
nonrecurring charges directly attributable 
  to the disposal of the mining subsidiaries        
$  1,479,585
  
$  (219,729)
   $  1,259,856
Earnings per share of 
common stock 
      Basic and diluted        
$           0.05
       $          0.05
Weighted average common shares and 
equivalents used in the calculations
of earnings per share
   Basic     27,298,715    27,298,715 
   Diluted     27,746,158    27,746,158 

 


 

THE GOLDFIELD CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002

Pro Forma

Historical

 Adjustments Pro Forma
Revenue
Electrical construction  $ 12,877,614 

$ 12,877,614 

Real estate 5,060,842    5,060,842 
   Total revenue   17,938,456     -      17,938,456 
Costs and expenses
Electrical construction 10,333,579  10,333,579 
Real estate 3,657,184  3,657,184 
Depreciation and amortization 1,032,302  1,032,302 
Selling, general and administrative 2,077,556  2,077,556 
   Total costs and expenses   17,100,621       -    17,100,621 
Other income, net
Interest income 65,322  32,983  (f) 98,305 
Interest expense, net (20,180) (20,180)
Loss on sale of property and equipment (64) (64)
Other 2,451    2,451 
   Total other income, net   47,529  32,983  80,512 
Income from continuing operations 
before income taxes 885,364  32,983  918,347 
         
Income taxes               356,713    11,214  (g) 367,927 
Net income from continuing operations $    528,651  $     21,769     $     550,420 
Earnings per share of common stock -
   basic and diluted     
$           0.02 
     
 $           0.02 
    
Weighted average common shares and 
equivalents used in the calculations
of earnings per share
   Basic  

  27,472,403 

  27,472,403 
   Diluted  

  27,603,817 

  27,603,817 

 

 

 

Notes to Unaudited Pro Forma Consolidated Financial Statements

  1)         Basis of presentation

 

The unaudited pro forma consolidated financial statements reflect the sale of the capital stock of Goldfield's mining subsidiaries.  The unaudited pro forma consolidated balance sheet as of September 30, 2002 reflects Goldfield's financial position as if the sale of the mining subsidiaries occurred on September 30, 2002, and includes pro forma adjustments for the receipt of consideration, accrual of additional disposal related expenses, the disposal of substantially all assets and liabilities of the mining subsidiaries and reclassifying the remaining portion of discontinued operations to continuing operations.

The unaudited pro forma consolidated statements of operations for the year ended December 31, 2001 and the nine months ended September 30, 2002 reflect Goldfield's results of operations for such periods as if Goldfield had disposed of the mining subsidiaries on January 1, 2001, thereby excluding the mining subsidiaries' revenues and expenses and recognizing interest income on the notes receivable portion of the consideration.

No assumption has been made as to Goldfield's intended use of the consideration from the sale.

  2)         Pro forma adjustments     

(a)

Reflects the recording of consideration for the sale of the mining subsidiaries in the amount of $3,424,420, which includes $2,497,590 in cash, $321,513 in the transfer to Goldfield of cash balances from the companies sold and the assignment by St. Cloud to Goldfield of $605,317 in outstanding real estate notes receivable. The amounts used for the cash transfer ($321,513) and notes receivable assignments ($605,317) are the historical balances as of September 30, 2002, rather than the actual amounts as of the date of disposal, November 30, 2002. The pro forma adjustments also reflect the disposal of the mining subsidiaries' assets and liabilities, and an accrual for expenses in relation to the disposal of approximately $568,000, which is comprised of $100,000 in employee severance, $100,000 in completion fees, $300,000 in broker commission and $68,000 in other related costs.
(b)

Reclassification from discontinued operations to continuing operations of the portion of notes receivable that were excluded from the sale of the mining subsidiaries which were previously included in current and non-current assets of discontinued operations.
(c)

Reclassification from discontinued operations to continuing operations of the portion of accrued employee bonuses that were excluded from the sale of the mining subsidiaries which were previously included in current liabilities of discontinued operations.
(d)

Adjustment to remove revenue and expenses for the mining subsidiaries.
(e)

Reclassification of interest income on notes receivable of $15,540 from discontinued operations to continuing operations.
(f)

Reclassification of interest income on notes receivable of $32,983 from discontinued operations to continuing operations.

 

 

 

(g)

 Income tax effect of pro forma adjustments calculated using the statutory rate of 34%.

 

(c)  Exhibits

10-5    Stock Purchase Agreement for St. Cloud Mining Company and The Goldfield Consolidated Mines Company between The Goldfield Corporation and Imagin Minerals, Inc. dated as of December 4, 2002 is incorporated herein by reference to Exhibit 10-5 of Goldfield's Current Report on Form 8-K filed on December 6, 2002.


 

 

SIGNATURE

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 hereunto duly authorized.

                                        

   THE GOLDFIELD CORPORATION
                (Registrant)
                                                                                                                   
  By:     /s/ Stephen R. Wherry 
Stephen R. Wherry, Vice President,
Finance and Chief Financial Officer
(Principal Financial Officer),
Treasurer and Principal Accounting Officer

Date:   December 18, 2002