Goldfield Announces 2007 Results

MELBOURNE, Fla., March 24 /PRNewswire-FirstCall/ -- The Goldfield Corporation (Amex: GV), a leading provider of electrical construction services in the southeastern United States and a developer of condominiums on Florida's east coast, today announced results for the twelve months ended December 31, 2007.

Revenues for the year ended December 31, 2007 were $27.3 million and the Company had an operating loss of $3.2 million, compared to revenues of $47.5 million and operating income of $4.3 million in the year ended December 31, 2006. Goldfield's decline in results during 2007 reflects a slowdown in electrical construction operations and the continuing weakness in the Florida condominium market.

For the year ended December 31, 2007, the electrical construction segment had revenues of $26.8 million and operating income of $688,000 compared to revenues of $36.4 million and operating income of $4.7 million in the prior year. These decreases were primarily due to the slowdown noted above, as well as unanticipated costs associated with customer initiated delays arising during the course of certain projects.

For the year ended December 31, 2007, the real estate development segment had revenues of $537,000 and an operating loss of $1.2 million. For 2006, revenues and operating income from this segment were $11.1 million and $2.6 million, respectively. These decreases were due to the reversal in 2007 of $7.2 million of previously recognized revenues and the related income as a result of customer defaults on contracts to purchase condominium units, as well as a re-valuation of our unsold units. This was partially offset by the sale of six units in the last quarter of 2007.

Net loss for the year ended December 31, 2007 was $2.3 million or $0.09 per share, compared to net income of $3.0 million or $0.12 per share in 2006. Revenues for the quarter ended December 31, 2007 were $9.0 million compared to revenues of $9.1 million in the comparable prior-year quarter. For the fourth quarter of 2007, electrical construction revenues were $6.2 million and operating loss was $275,000, as compared to revenues of $5.8 million and operating loss of $212,000 in the prior year. In the fourth quarter, real estate development operations had revenues of $2.8 million and operating income of $9,000, as compared to revenues of $3.3 million and operating income of $821,000 in the like quarter last year. The Company's net loss for the fourth quarter of 2007 was $572,000 ($0.02 per share) compared to net loss of $34,000 (nil per share) in the comparable prior-year quarter. The quarter-to- quarter declines resulted primarily from adverse market conditions affecting the real estate segment.

Commenting on the Company's results, John H. Sottile, Chairman, President and Chief Executive Officer of Goldfield, said, "We are encouraged by the increase in activity in our electrical construction operations in the beginning of 2008. We began the year with a backlog of $5.9 million, all of which is scheduled for completion in 2008, and have since received additional contracts totaling $12.0 million, $5.5 million of which we anticipate completing in 2008." Mr. Sottile noted that, "Work commenced in the fourth quarter on a multi-year project involving the upgrading of 46.2 miles of transmission line to support load growth in central Florida."

With respect to real estate development operations, Sottile commented, "Construction has now been completed on our current project and roughly half of the units have been sold, many of which are now occupied. Our renewed marketing efforts and price reductions in the fourth quarter resulted in the sale of six units in the fourth quarter of 2007, and an additional unit in February of 2008."

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

                             - Tables to Follow -

                  The Goldfield Corporation and Subsidiaries
                    Consolidated Statements of Operations

                               Three Months Ended       Twelve Months Ended
                                  December 31,             December 31,
                                2007        2006        2007         2006
        construction         $6,230,319  $5,827,401  $26,761,440  $36,409,551
       Real estate
        development           2,779,653   3,291,891      537,135   11,086,306
          Total revenue       9,009,972   9,119,292   27,298,575   47,495,857

    Costs and expenses
        construction          5,636,530   5,324,406   22,881,363   29,097,182
       Real estate
        development           2,524,545   2,221,319      794,612    7,557,537
       Selling, general and
        administrative          779,965   1,133,130    3,278,520    4,016,653
       Depreciation and
        amortization            810,542     700,752    3,076,505    2,535,347
       Write down of real
        estate inventory            -           -        473,227          -
       (Gain) loss on sale
        of assets                31,699     (29,254)      14,479      (54,139)
          Total costs and
           expenses           9,783,281   9,350,353   30,518,706   43,152,580
          Total operating
           income (loss)       (773,309)   (231,061)  (3,220,131)   4,343,277

    Other income (expenses),
       Interest income          131,173      95,251      297,837      237,461
       Interest expense, net   (171,859)    (77,434)    (585,945)    (238,821)
       Other                      1,433      19,547       13,918      152,851
       Minority interest          5,849         -         (3,361)         -
          Total other income
           (expenses), net      (33,404)     37,364     (277,551)     151,491

    Income (loss) from
     continuing operations
     before income taxes       (806,713)   (193,697)  (3,497,682)   4,494,768

    Income tax expense
     (benefit)                 (240,401)    (66,627)  (1,195,428)   1,740,340

    Income (loss) from
     continuing operations     (566,312)   (127,070)  (2,302,254)   2,754,428

    Gain (loss) from
     discontinued operations,
     net of tax                  (5,858)     93,001      (18,519)     241,638

    Net income (loss)         $(572,170)   $(34,069) $(2,320,773)  $2,996,066

    Earnings per share of
     common stock - basic
     and diluted
           operations            $(0.02)     $(0.00)      $(0.09)       $0.11
           operations               -           -            -           0.01
          Net income             $(0.02)     $(0.00)      $(0.09)       $0.12

    Weighted average shares
          Basic              25,451,354  25,541,908   25,451,354   25,564,550
          Diluted            25,451,354  25,541,908   25,451,354   25,564,550

                  The Goldfield Corporation And Subsidiaries
                    Condensed Consolidated Balance Sheets

                                                       December 31,
                                                  2007              2006
    Current assets
      Cash and cash equivalents                 $3,984,613        $6,801,600
      Accounts receivable and accrued
       billings, net                             5,881,430         4,908,511
      Contracts receivable                             -          10,623,909
      Remediation insurance receivable             176,827           329,888
      Current portion of notes receivable           49,108            41,453
      Construction inventory                         2,218           216,989
      Real estate inventories                    7,788,739           801,411
      Costs and estimated earnings in
       excess of billings on uncompleted
       contracts                                 1,658,712         2,358,738
      Residential properties under
       construction                                    -           3,784,165
      Prepaid expenses and other current
       assets                                    1,933,869         1,022,377
        Total current assets                    21,475,516        30,889,041

    Property, buildings and equipment, at
     cost, net                                   9,803,794         9,465,378
    Notes receivable, less current portion         352,305           407,409
    Deferred charges and other assets            1,235,391         1,142,348
    Total assets                               $32,867,006       $41,904,176

    Current liabilities
      Accounts payable and accrued
       liabilities                              $1,984,352        $5,359,893
      Billings in excess of costs and
       estimated earnings on uncompleted
       contracts                                       -              24,444
      Notes payable to bank                      5,202,466         8,663,768
      Capital leases, due within one year          315,619           317,160
      Current liabilities of discontinued
       operations                                  198,850           208,221
        Total current liabilities                7,701,287        14,573,486

    Deferred income taxes, noncurrent              346,200           861,400
    Other accrued liabilities, noncurrent           26,894            20,821
    Notes payable, less current portion          2,184,932         1,207,745
    Capital leases, less current portion           579,357           894,976
    Total liabilities                           10,838,670        17,558,428
    Commitments and contingencies
    Minority interest                                3,361               -
    Stockholders' equity
      Common stock                               2,781,377         2,781,377
      Capital surplus                           18,481,683        18,481,683
      Retained earnings                          2,070,102         4,390,875
      Common stock in treasury, at cost         (1,308,187)       (1,308,187)
          Total stockholders' equity            22,024,975        24,345,748
    Total liabilities and stockholders'
     equity                                    $32,867,006       $41,904,176

SOURCE The Goldfield Corporation