Goldfield Announces Third Quarter 2008 Results

MELBOURNE, Fla., Nov. 14 /PRNewswire-FirstCall/ -- The Goldfield Corporation (NYSE ALTERNEXT US: GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums on the east coast of Florida, today announced results for the three and nine months ended September 30, 2008.

Revenues for the three months ended September 30, 2008 were $7.9 million and the Company had an operating loss of $1.1 million, compared to revenues of $7.1 million and an operating loss of $537,000 in the three months ended September 30, 2007.

Revenues for the nine months ended September 30, 2008 were $20.9 million and the Company had an operating loss of $2.7 million, compared to revenues of $18.3 million and an operating loss of $2.4 million in the nine months ended September 30, 2007.

Revenues for the electrical construction segment increased to $6.9 million for the three months ended September 30, 2008 from $6.5 million for the prior year quarter. Electrical construction segment revenues for the nine months ended September 30, 2008 decreased to $18.8 million from $20.5 million for the nine months ended September 30, 2007. The increase in revenues for the three months ended September 30, 2008 was primarily due to completion of one large project in the current quarter. Electrical construction revenues for the nine months ended September 30, 2008 have been adversely effected by the continued slow down in demand for the electrical construction services in Florida. The electrical construction segment's operating loss for the three and nine months ended September 30, 2008 was $302,000 and $236,000, respectively, compared to operating income of $279,000 and $963,000 in the comparable prior year periods.

Revenues for the real estate development segment increased for both the three months and nine months ended September 30, 2008 to $1.1 million and $2.1 million, respectively, from $552,000 and $(2.2 million) for the three and nine months ended September 30, 2007, respectively. For the nine months ended September 30, 2007 the negative revenues resulted from the reversal of revenue previously recognized as a result of customers defaulting on their contractual obligations to close the purchase of condominium units in the Pineapple House project, which was completed in June 2007. The real estate development segment had operating losses of $189,000 and $499,000, respectively, for the three and nine months ended September 30, 2008, compared to operating losses of $124,000 and $1.2 million, respectively, in the three and nine months ended September 30, 2007.

Net loss for the three months ended September 30, 2008 was $790,000 ($0.03 net loss per share) compared to net loss of $271,000 ($0.01 net loss per share) in the comparable prior year quarter. Net loss for the nine months ended September 30, 2008 was $1.9 million ($0.08 net loss per share) compared to net loss of $1.7 million ($0.07 net loss per share) in the comparable prior year period.

John H. Sottile, Goldfield's President and Chief Executive Officer commented, "In our electrical construction segment, the initial expansion of our geographical footprint has cushioned the effects of the general slowdown in demand for electrical construction services in Florida." Mr. Sottile continued, "With respect to our real estate development operations, during 2008, we have been successful in marketing the remaining units in our Oak Park project and several units in our Pineapple House project. Despite the current depression in the Florida real estate market, I believe that our exposure is very manageable, as we do not currently have any projects under construction, and our latest project, Pineapple House, is complete. We are continuing to sell units at Pineapple House with over half already sold."

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 level of consumer confidence; the continued weakness in the Florida condominium market; our ability to obtain necessary permits from regulatory agencies; our ability to acquire land; our ability to collect contracts receivable and close homes in backlog, particularly related to buyers purchasing homes as investments; 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; changes in generally accepted accounting principles; our ability to maintain or increase historical revenues and profit margins; and general economic conditions, both nationally and in our region; adverse legislation or regulations; the 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, particularly in light of the current disruption in the credit markets. 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        Nine Months Ended
                                  September 30,            September 30,
                                2008        2007         2008         2007
    Revenues
      Electrical
       construction          $6,869,416  $6,518,999  $18,818,538  $20,531,121
      Real estate
       development            1,070,545     552,364    2,054,572   (2,242,515)
        Total revenues        7,939,961   7,071,363   20,873,110   18,288,606

    Costs and expenses
      Electrical
       construction           6,417,692   5,496,723   16,466,838   17,244,833
      Real estate
       development            1,062,364      46,293    1,991,467   (1,729,933)
      Selling, general and
       administrative           806,892     841,222    2,616,309    2,498,556
      Depreciation              720,860     757,846    2,429,350    2,265,963
      Write down of
       inventory                    -       473,227       36,502      473,227
      Provision for doubtful
       accounts                     -           -         27,078          -
      Loss (gain) on sale of
       assets                       500      (6,927)       7,428      (17,220)
        Total costs and
         expenses             9,008,308   7,608,384   23,574,972   20,735,426
            Total operating
             loss            (1,068,347)   (537,021)  (2,701,862)  (2,446,820)

    Other income (expense),
     net
      Interest income            61,532      53,779      113,628      166,664
      Interest expense, net     (91,064)   (235,381)    (315,153)    (414,085)
      Other                          85       3,960       16,038       12,482
      Minority interest             (18)        -        (11,088)         -
        Total other expense,
         net                    (29,465)   (177,642)    (196,575)    (234,939)

    Loss from continuing
     operations before
     income taxes            (1,097,812)   (714,663)  (2,898,437)  (2,681,759)

    Income tax benefit         (400,371)   (456,444)  (1,047,320)    (955,027)

        Loss from continuing
         operations            (697,441)   (258,219)  (1,851,117)  (1,726,732)

    Loss from discontinued
     operations, net of tax     (92,642)    (12,661)     (92,642)     (12,661)

        Net loss              $(790,083)  $(270,880) $(1,943,759) $(1,739,393)

    Loss per share of common
     stock - basic and
     diluted
      Continuing operations      $(0.03)     $(0.01)      $(0.08)      $(0.07)
      Discontinued operations     (0.00)      (0.00)       (0.00)       (0.00)
        Net loss                 $(0.03)     $(0.01)      $(0.08)      $(0.07)

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



                  THE GOLDFIELD CORPORATION AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)

                                              September 30,      December 31,
    ASSETS                                         2008              2007
    Current assets
      Cash and cash equivalents                 $6,295,100        $3,984,613
      Accounts receivable and accrued
       billings, net                             2,098,407         5,881,430
      Remediation insurance receivable              31,747           176,827
      Current portion of notes receivable           53,382            49,108
      Construction inventory                           -               2,218
      Real estate inventory                      5,908,165         7,788,739
      Costs and estimated earnings in
       excess of billings on uncompleted
       contracts                                 1,482,940         1,658,712
      Prepaid expenses and other current
       assets                                    2,487,343         1,933,869
        Total current assets                    18,357,084        21,475,516

    Property, buildings and equipment, at
     cost, net                                   8,320,561         9,803,794
    Notes receivable, less current portion         316,850           352,305
    Deferred charges and other assets            1,811,748         1,235,391
        Total assets                           $28,806,243       $32,867,006

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities
      Accounts payable and accrued
       liabilities                              $2,072,453        $1,984,352
      Current portion of notes payable           4,479,857         5,202,466
      Current portion of capital leases            313,635           315,619
      Reserve for remediation                      145,985           198,850
        Total current liabilities                7,011,930         7,701,287

    Deferred income taxes                              -             346,200
    Other accrued liabilities                       28,306            26,894
    Notes payable, less current portion          1,328,562         2,184,932
    Capital leases, less current portion           341,780           579,357
        Total liabilities                        8,710,578        10,838,670
    Commitments and contingencies
    Minority interest                               14,449             3,361
    Stockholders' equity
      Common stock                               2,781,377         2,781,377
      Capital surplus                           18,481,683        18,481,683
      Retained earnings                            126,343         2,070,102
      Common stock in treasury, at cost         (1,308,187)       (1,308,187)
          Total stockholders' equity            20,081,216        22,024,975
        Total liabilities and
         stockholders' equity                  $28,806,243       $32,867,006

SOURCE The Goldfield Corporation