Goldfield Announces First Quarter Results

MELBOURNE, Fla., May 15 /PRNewswire-FirstCall/ -- The Goldfield Corporation (Amex: GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums, today announced results for the three months ended March 31, 2007.

Revenues for the three months ended March 31, 2007 were $9.8 million and the Company had an operating loss of $472,000, compared to revenues of $14.0 million and operating income of $1.9 million in the three months ended March 31, 2006.

Revenues in the first quarter of 2007 reflect decreases in both the electrical construction segment and the real estate development segment. The decrease in the electrical construction segment revenues was primarily due to a slowdown in demand for the Company's electrical construction services. The decrease in the real estate development segment revenues was mainly due to the fact that during the quarter ended March 31, 2007, the Company had only one project, Pineapple House, under construction, with respect to which most of the revenues had been previously recognized. In the quarter ended March 31, 2006, the Company had begun the Pineapple House project and recognized $2.3 million in revenue on Pineapple House as well as $1.2 million in revenue from the Oak Park project.

For the three months ended March 31, 2007, the electrical construction segment had an operating loss of $191,000 compared to operating income of $1.8 million in the comparable prior year period, and the real estate development segment had operating income of $558,000 for the three months ended March 31, 2007 compared to operating income of $894,000 in the three months ended March 31, 2006. In both cases these decreases were primarily due to the same factors that affected revenues as described above and, with respect to the electrical construction segment, unanticipated costs associated with delays arising during the course of completion of certain of the Company's current projects. Although the company continues to make good progress towards completion of the first phase of the Pineapple House project, the continuing slowdown in the Florida real estate market has adversely affected the Company's ability to market the remaining available units in this project.

Net loss for the first quarter of 2007 was $347,000 or $0.01 per share, compared to net earnings of $1.1 million or $0.04 per share in the comparable prior year quarter.

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 Statements in this release are based on current expectations. These statements are forward-looking, and actual results may differ materially. For example, electrical construction projects are generally subject to cancellation and, in the real estate segment, there can be no assurance that settlements of condominiums subject to contracts for sale will occur or that construction will progress as expected. For further details, see the company's filings with the Securities and Exchange Commission.

    For further information, please contact:
    The Goldfield Corporation
    Phone: (321) 724-1700


                                                   Three Months Ended
                                                       March 31,
                                                 2007              2006

       Electrical construction                 $7,354,043        $10,492,005
       Real estate development                  2,454,432          3,502,947
          Total revenue                         9,808,475         13,994,952

    Costs and expenses
       Electrical construction                  6,801,704          8,123,209
       Real estate development                  1,693,925          2,321,429
       Depreciation                               742,347            599,291
       Selling, general and
        administrative                          1,050,971          1,098,355
       Gain on sale of assets                      (8,857)           (18,310)
          Total costs and expenses             10,280,090         12,123,974
          Total operating income (loss)          (471,615)         1,870,978

    Other income (expense), net
       Interest income                             61,332             24,712
       Interest expense, net                      (79,645)           (36,991)
       Other                                        9,149              3,494
          Total other expenses, net                (9,164)            (8,785)

    Income (loss) from continuing
       before income taxes                       (480,779)         1,862,193

    Income taxes                                 (133,768)           717,702
    Net income (loss)                           $(347,011)        $1,144,491

    Earnings (loss) per share of common
     stock -
       basic and diluted                           $(0.01)             $0.04

    Weighted average number of common
       outstanding -                   - basic and diluted         25,451,354


                                              March 31,         December 31,
                                                2007               2006
    Current assets
      Cash and cash equivalents                 $5,493,886        $6,801,600
      Accounts receivable and accrued
       billings, net                             5,515,326         4,908,511
      Contracts receivable                      12,778,842        10,623,909
      Remediation insurance receivable             273,349           329,888
      Current portion of notes receivable           38,529            41,453
      Construction inventory                        62,774           216,989
      Real estate inventories                      600,220           801,411
      Costs and estimated earnings in
       excess of
        billings on uncompleted contracts        2,740,847         2,358,738
      Residential properties under
       construction                              5,055,555         3,784,165
      Prepaid expenses and other current
       assets                                    1,897,518         1,022,377
        Total current assets                    34,456,846        30,889,041

    Property, buildings and equipment, at
     cost, net                                  11,049,528         9,465,378
    Notes receivable, less current
     portion                                       389,975           407,409
    Deferred charges and other assets            1,530,862         1,142,348
    Total assets                               $47,427,211       $41,904,176

    Current liabilities
      Accounts payable and accrued
       liabilities                              $5,489,490        $5,359,893
      Billings in excess of costs and
        earnings on uncompleted contracts              -              24,444
      Notes payable                             12,935,727         8,663,768
      Capital leases, due within one year          323,532           317,160
      Current liabilities of discontinued
       operations                                  166,411           208,221
        Total current liabilities               18,915,160        14,573,486

    Deferred income taxes                          861,400           861,400
    Other accrued liabilities                       23,178            20,821
    Notes payable, less current portion          2,817,072         1,207,745
    Capital leases, less current portion           811,664           894,976
    Total liabilities                           23,428,474        17,558,428
    Commitments and contingencies
    Stockholders' equity
      Common stock                               2,781,377         2,781,377
      Capital surplus                           18,481,683        18,481,683
      Retained earnings                          4,043,864         4,390,875
      Common stock in treasury, at cost         (1,308,187)       (1,308,187)
          Total stockholders' equity            23,998,737        24,345,748
    Total liabilities and stockholders'
     equity                                    $47,427,211       $41,904,176

SOURCE The Goldfield Corporation