Goldfield Announces First Quarter Results

MELBOURNE, Fla., May 13 /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, 2008.

Revenues for the three months ended March 31, 2008 were $7.3 million and the Company had an operating loss of $625,000, compared to revenues of $9.8 million and operating loss of $472,000 in the first quarter of 2007.

The real estate development segment was the principal factor in the decline in first quarter results. In this quarter, the Company had no projects under construction, and, because of the current adverse real estate environment, very limited condominium sales. Revenues declined in this segment, from $2.5 million in the first quarter of 2007 to $0.5 million in the current quarter, and operating income declined from $558,000 to a loss of $150,000.

In the 2008 quarter, the electrical construction segment experienced a small revenue decline from $7.4 million to $6.8 million, but improved operating income of $257,000, compared to an operating loss of $191,000 in the like 2007 period.

The net loss for the first quarter of 2008 was $470,000 ($0.02 per share), compared to a net loss of $347,000 ($0.01 per share) in the like 2007 period.

Commenting on first quarter results, John H. Sottile, President of Goldfield stated that "despite the current real estate depression in Florida, the Company's real estate exposure is very manageable, with no projects under construction and its current project, Pineapple House, completed and well-received. Roughly half of the units in Pineapple House have been sold, and many are occupied." With respect to electrical construction, Mr. Sottile stated that "the general slowdown in demand for electrical construction services in Florida has restrained growth, but the Company has benefited from higher productivity on several current construction jobs."

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

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; adverse weather; our ability to estimate accurately with respect to fixed price construction contracts; heightened competition in the electrical construction field, including intensification of price competition, and the availability of skilled construction labor. Factors that may affect the results of our real estate development operations include, among others: interest rates; ability to obtain necessary permits from regulatory agencies; adverse legislation or regulations; ability to acquire land; our ability to maintain or increase historical revenues and profit margins; our ability to collect contracts receivable and close homes in backlog, particularly related to buyers purchasing homes as investments; availability of labor and materials and material increases in labor and material costs; ability to obtain additional construction financing; increases in interest rates and availability of mortgage financing; increases in construction and homeowner insurance and the availability of insurance; the level of consumer confidence; the negative impact of claims for contract rescission or cancellation by unit purchasers due to various factors including the increase in the cost of condominium insurance; adverse weather; natural disasters; changes in generally accepted accounting principles; the continued weakness in the Florida condominium market and general economic conditions, both nationally and in our region. 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:

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

                  The Goldfield Corporation and Subsidiaries
                    Consolidated Statements of Operations

                                                       Three Months Ended
                                                           March 31,
                                                     2008             2007

      Electrical construction                     $6,832,183       $7,354,043
      Real estate development                        492,341        2,454,432
        Total revenue                              7,324,524        9,808,475

    Costs and expenses
      Electrical construction                      5,634,741        6,801,704
      Real estate development                        476,983        1,693,925
      Depreciation                                   855,573          742,347
      Selling, general and administrative            978,999        1,050,971
      Loss (gain) on sale of assets                    3,617           (8,857)
        Total costs and expenses                   7,949,913       10,280,090
        Total operating loss                        (625,389)        (471,615)

    Other income (expense), net
      Interest income                                 30,485           61,332
      Interest expense, net                         (125,044)         (79,645)
      Other                                            6,957            9,149
      Minority interest                               (3,196)               -
        Total other expenses, net                    (90,798)          (9,164)

    Loss from continuing operations before income
     taxes                                          (716,187)        (480,779)

    Income tax benefit                              (245,743)        (133,768)
    Net loss                                       $(470,444)       $(347,011)

    Loss per share of common stock - basic and
     diluted                                          $(0.02)          $(0.01)

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

                  The Goldfield Corporation and Subsidiaries
                    Condensed Consolidated Balance Sheets

                                                      March 31,   December 31,
                                                        2008          2007

    Current assets
      Cash and cash equivalents                      $4,276,901    $3,984,613
      Accounts receivable and accrued billings        5,014,197     5,881,430
      Remediation insurance receivable                  176,827       176,827
      Current portion of notes receivable                52,237        49,108
      Construction inventory                                  -         2,218
      Real estate inventory                           7,363,195     7,788,739
      Costs and estimated earnings in excess of
       billings on uncompleted contracts              1,665,111     1,658,712
      Prepaid expenses and other current assets       2,325,821     1,933,869
        Total current assets                         20,874,289    21,475,516

    Property, buildings and equipment, at cost, net   9,700,300     9,803,794
    Notes receivable, less current portion              340,550       352,305
    Deferred charges and other assets                 1,451,250     1,235,391
    Total assets                                    $32,366,389   $32,867,006

    Current liabilities
      Accounts payable and accrued liabilities       $2,746,364    $1,984,352
      Billings in excess of costs and estimated
       earnings on uncompleted contracts                  4,072             -
      Current portion of notes payable                4,898,989     5,202,466
      Current portion of capital leases                 309,910       315,619
      Current liabilities of discontinued
       operations                                       183,258       198,850
        Total current liabilities                     8,142,593     7,701,287

    Deferred income taxes                               258,500       346,200
    Other accrued liabilities                            28,132        26,894
    Notes payable, less current portion               1,874,322     2,184,932
    Capital leases, less current portion                501,754       579,357
    Total liabilities                                10,805,301    10,838,670
    Commitments and contingencies
    Minority interest                                     6,557         3,361
    Stockholders' equity
      Common stock                                    2,781,377     2,781,377
      Capital surplus                                18,481,683    18,481,683
      Retained earnings                               1,599,658     2,070,102
      Common stock in treasury, at cost              (1,308,187)   (1,308,187)
        Total stockholders' equity                   21,554,531    22,024,975
    Total liabilities and stockholders' equity      $32,366,389   $32,867,006

SOURCE The Goldfield Corporation