Goldfield Announces First Quarter 2011 Results

MELBOURNE, Fla., May 12, 2011 /PRNewswire/ -- The Goldfield Corporation (NYSE Amex: GV) today announced results for the three months ended March 31, 2011.  The Goldfield Corporation is a leading provider of electrical construction services in the Southeast with operations throughout the United States.  Goldfield is also engaged in real estate development activities.

Revenue for the three months ended March 31, 2011, increased 4.5% to $8.9 million from $8.5 million in the like period last year.  This increase in revenue was mainly due to higher electrical construction revenue.  The Company reported an operating loss of $1,000, compared to operating income of $146,000 in 2010.  

For the three months ended March 31, 2011, the electrical construction segment had revenue of $8.2 million and operating income of $328,000, compared to revenue of $7.6 million and operating income of $595,000, in the prior year.  The increase in revenue was mainly due to the timing of projects, together with an overall increase in activity in transmission and fiber optic work during the first quarter 2011.  The decrease in operating income was largely the result of additional expenses associated with our growth and expansion efforts.

For the three months ended March 31, 2011, the real estate development segment had revenue of $766,000 and operating income of $225,000, compared to revenue of $896,000 and operating income of $251,000, in the prior year.  During the three months ended March 31, 2011 we sold two condominium units from our Pineapple House project, compared to three such units in the same period last year.

Net loss for the three months ended March 31, 2011 was $11,000 or $0.00 per share, compared to a net income of $115,000 or $0.00 per share in 2010.

John H. Sottile, Goldfield's President and Chief Executive Officer commented, "We are encouraged by the continuing improvement in the level of activity in our electrical construction operations, and through our expansion efforts outside our traditional Southeastern base we are positioning the Company for enhanced opportunities for future growth."  Mr. Sottile continued, "In our real estate development segment, we have continuing sales at Pineapple House at prices above our carrying values.  With only three units remaining unsold in our only real estate project, Pineapple House, and the retirement in February of all of our real estate debt, our remaining exposure to the depressed Florida real estate market is extremely limited."

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.  For additional information, please visit http://www.goldfieldcorp.com.

This press release includes forward looking statements based on our current expectations.  Our actual results may differ materially from what we currently expect.  Factors that may affect the results of our electrical construction operations include, among others: the level of construction activities by public utilities; the timing and duration of construction projects for which we are engaged; our ability to estimate accurately with respect to fixed price construction contracts; and heightened competition in the electrical construction field, including intensification of price competition.  Factors that may affect the results of our real estate development operations include, among others: the continued weakness in the Florida real estate market; the level of consumer confidence; our ability to acquire land; increases in interest rates and availability of mortgage financing to our buyers; increases in construction and homeowner insurance and the availability of insurance.  Factors that may affect the results of all of our operations include, among others: adverse weather; natural disasters; effects of climate changes; changes in generally accepted accounting principles; our ability to obtain necessary permits from regulatory agencies;  our ability to maintain or increase historical revenues and profit margins; general economic conditions, both nationally and in our region; adverse legislation or regulations; availability of skilled construction labor and materials and material increases in labor and material costs; and our ability to obtain additional and/or renew financing.  Important factors which could cause our actual results to differ materially from the forward-looking statements in this press release are detailed in the Company's Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operation sections of our Annual Report on Form 10-K and Goldfield's other filings with the Securities and Exchange Commission, which are available on Goldfield's website: http://www.goldfieldcorp.com.

For further information, please contact:
The Goldfield Corporation
Phone:  (321) 724-1700
Email:  investorrelations@goldfieldcorp.com


The Goldfield Corporation and Subsidiaries

Consolidated Statements of Operations

(Unaudited)



                                                       Three Months Ended

                                                       March 31,

                                                       2011         2010

Revenue

 Electrical construction                               $ 8,154,530  $ 7,636,922

 Real estate development                               765,872      896,026

        Total revenue                                  8,920,402    8,532,948



Costs and expenses

 Electrical construction                               7,008,979    6,276,026

 Real estate development                               430,626      493,518

 Selling, general and administrative                   747,065      900,486

 Depreciation                                          734,135      716,844

 Loss on sale of assets                                714          -

        Total costs and expenses                       8,921,519    8,386,874

        Total operating (loss) income                  (1,117)      146,074





Other (expenses) income, net

 Interest income                                       6,634        7,271

 Interest expense, net                                 (27,002)     (33,247)

 Other income, net                                     20,381       9,747

        Total other income (expenses), net             13           (16,229)



(Loss) income from continuing operations before income
taxes                                                  (1,104)      129,845



Income tax provision                                   10,156       15,159



Net (loss) income                                      $ (11,260)   $ 114,686



(Loss) income per share of common stock -- basic and
diluted                                                $ (0.00)     $ 0.00



Weighted average shares outstanding - basic and
diluted                                                25,451,354   25,451,354






The Goldfield Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)



                                                 March 31,     December 31,

                                                 2011          2010

ASSETS

Current assets

 Cash and cash equivalents                       $ 3,657,417   $ 4,174,518

 Accounts receivable and accrued billings, net   3,383,574     4,393,659

 Real estate inventory                           633,233       774,584

 Costs and estimated earnings in excess of

  billings on uncompleted contracts              2,669,103     1,254,054

 Prepaid expenses                                774,349       304,802

 Other current assets                            234,097       172,070

  Total current assets                           11,351,773    11,073,687



Property, buildings and equipment, at cost, net  10,442,711    8,232,306

Notes receivable, less current portion           227,742       237,714

Deferred charges and other assets                1,499,662     1,415,775

Total assets                                     $ 23,521,888  $ 20,959,482



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

 Accounts payable and accrued liabilities        $ 3,115,505   $ 2,418,056

 Current portion of notes payable                991,429       1,176,552

 Other current liabilities                       133,087       279,304

  Total current liabilities                      4,240,021     3,873,912

Other accrued liabilities                        -             17,094

Notes payable, less current portion              4,834,651     2,610,000

Total liabilities                                9,074,672     6,501,006

Commitments and contingencies

Stockholders' equity

 Common stock                                    2,781,377     2,781,377

 Capital surplus                                 18,481,683    18,481,683

 Accumulated deficit                             (5,507,657)   (5,496,397)

 Common stock in treasury, at cost               (1,308,187)   (1,308,187)

   Total stockholders' equity                    14,447,216    14,458,476

Total liabilities and stockholders' equity       $ 23,521,888  $ 20,959,482





SOURCE The Goldfield Corporation