Goldfield Announces Strong 2006 Results

MELBOURNE, Fla., March 29 /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 strong results for the twelve months ended December 31, 2006:

    -- Revenue increased 21% to $47.5 million from $39.3 million in 2005.
    -- Operating income rose to $4.3 million, up 9% from the like period of
       2005.
    -- Net income increased to $3.0 million ($0.12 per share) from $2.3
       million ($0.09 per share) in 2005.

Goldfield's improved 2006 revenue resulted from a $7.6 million increase in electrical construction revenue, which rose to $36.4 million from $28.8 million in 2005. This increase was driven by the Company's expansion into larger transmission construction projects. The 2006 increases in operating income and net income were likewise driven by the results of the electrical construction segment. The real estate development segment showed a 5% increase in revenue, to $11.1 million from $10.6 million in 2005 and a decrease in operating income to $2.6 million from $3.3 million in 2005, primarily due to the weak Florida condominium market.

Commenting on the 2006 results, John H. Sottile, Chairman, President and Chief Executive Officer of Goldfield, said, "Our electrical construction operations have continued their strong performance, with a year-to-year increase of 27% in revenue to $36.4 million from the same period last year, and 42% in operating income to $4.7 million. Real estate operations remained profitable, although not at the same level as we achieved in 2005." Mr. Sottile further noted that, "as of December 31, 2006, our electrical construction backlog remains strong at $12.3 million, essentially the same at 2005 year-end. Our real estate backlog has decreased to $4.1 million from $17.5 million at 2005 year-end due to only one project currently being under development versus two last year. This backlog will carry us into 2007, and we expect approximately 100% of both the electrical construction backlog and the real estate backlog to be recognized as revenue during 2007, although the actual timing of revenue recognition may vary as the result of project delays and other factors."

Revenues for the quarter ended December 31, 2006, decreased $1.3 million to $9.1 million from $10.4 million in the comparable prior-year quarter. The net loss for the fourth quarter of 2006 was $34,000 (nil per share) compared to net income of $881,000 ($0.03 per share) in the comparable prior-year quarter. The quarter-to-quarter decline in revenue and net income primarily resulted from significantly less hurricane related restoration work in 2006 compared to 2005. In addition, our electrical construction operations experienced an unanticipated increase in costs during the fourth quarter of 2006 associated with a workforce reallocation on certain projects that was required for us to achieve a near term completion date.

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.

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
    Email: investorrelations@goldfieldcorp.com



                   THE GOLDFIELD CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                        December 31,
                                                   2006              2005
    ASSETS
    Current assets
      Cash and cash equivalents                 $6,801,600        $2,912,494
      Restricted cash - discontinued
       operations                                      -               7,845
      Accounts receivable and accrued
       billings, net                             4,908,511         6,443,563
      Contracts receivable                      10,623,909        10,529,004
      Remediation insurance receivable             329,888               -
      Current portion of notes receivable           41,453            41,453
      Construction inventory                       216,989               -
      Real estate inventories                      801,411               -
      Costs and estimated earnings in excess
       of billings on uncompleted contracts      2,358,738         1,247,367
      Residential properties under
       construction                              3,784,165           196,287
      Prepaid expenses and other current assets  1,022,377         1,346,233
        Total current assets                    30,889,041        22,724,246

    Property, buildings and equipment,
     at cost, net                                9,465,378         8,094,829
    Notes receivable, less current portion         407,409           468,639
    Deferred charges and other assets            1,142,348         2,193,479
    Total assets                               $41,904,176       $33,481,193

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities
      Accounts payable and
       accrued liabilities                      $5,359,893        $3,988,650
      Billings in excess of costs and estimated
       earnings on uncompleted contracts            24,444            51,575
      Notes payable to bank                      8,663,768         5,866,664
      Capital leases, due within one year          317,160               -
      Federal and state income taxes payable           -             201,455
      Current liabilities of discontinued
       operations                                  208,221           127,522
        Total current liabilities               14,573,486        10,235,866

    Deferred income taxes, noncurrent              861,400           845,400
    Other accrued liabilities, noncurrent           20,821               -
    Notes payable, less current portion          1,207,745           917,292
    Capital leases, less current portion           894,976               -
    Total liabilities                           17,558,428        11,998,558
    Commitments and contingencies
    Stockholders' equity
      Common stock                               2,781,377         2,781,377
      Capital surplus                           18,481,683        18,481,683
      Retained earnings                          4,390,875         1,394,809
      Common stock in treasury, at cost         (1,308,187)       (1,175,234)
          Total stockholders' equity            24,345,748        21,482,635
    Total liabilities and
     stockholders' equity                      $41,904,176       $33,481,193



                   THE GOLDFIELD CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                               Three Months Ended      Twelve Months Ended
                                  December 31,             December 31,
                                2006        2005        2006         2005

    Revenue
       Electrical
        construction         $5,827,401  $8,619,746  $36,409,551  $28,780,681
       Real estate
        development           3,291,891   1,766,301   11,086,306   10,563,404
          Total revenue       9,119,292  10,386,047   47,495,857   39,344,085

    Costs and expenses
       Electrical
        construction          5,324,406   6,367,732   29,097,182   22,990,605
       Real estate
        development           2,221,319   1,130,107    7,557,537    6,364,280
       Depreciation and
        amortization            700,752     556,796    2,535,347    2,360,656
       Selling, general and
        administrative        1,133,130     775,284    4,016,653    3,603,091
       Provision for
        doubtful accounts           -           -            -         23,542
       Other (income)
        general expenses        (29,254)     13,123      (54,139)      25,351
          Total costs and
           expenses           9,350,353   8,843,042   43,152,580   35,367,525
          Total operating
           income              (231,061)  1,543,005    4,343,277    3,976,560

    Other income
     (expenses), net
       Interest income           95,251      27,288      237,461      104,642
       Interest expense, net    (77,434)    (42,812)    (238,821)    (141,032)
       Other                     19,547      12,724      152,851       20,460
          Total other income
           (expenses), net       37,364      (2,800)     151,491      (15,930)

    Income (loss) from
     continuing operations
     before income taxes       (193,697)  1,540,205    4,494,768    3,960,630

    Income taxes (benefit)      (66,627)    627,525    1,740,340    1,582,121

    Income (loss) from
     continuing operations     (127,070)    912,680    2,754,428    2,378,509

    Gain (loss) from
     discontinued operations,
     net of tax                  93,001     (31,403)     241,638      (56,222)

    Net income (loss)          $(34,069)   $881,277   $2,996,066   $2,322,287

    Earnings per share of
     common stock -
       basic and diluted
          Continuing
           operations              $-         $0.04        $0.11        $0.09
          Discontinued
           operations               -           -           0.01          -
          Net income               $-         $0.03        $0.12        $0.09

    Weighted average common
     shares and equivalents
     used in the calculations
     of earnings per share
          Basic              25,541,908  25,536,322   25,564,550   25,642,528
          Diluted            25,541,908  25,563,929   25,564,550   25,677,518

SOURCE The Goldfield Corporation