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: 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
DATASOURCE: The Goldfield Corporation CONTACT: The Goldfield
Corporation, +1-321-724-1700, Web site:
http://www.goldfieldcorp.com/
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