GV Goldfield Corp

MELBOURNE, Fla., Aug. 15 /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 significantly improved second quarter and six-month earnings results for 2005. For the quarter ended June 30, 2005, Goldfield reported total revenues of $9,470,952, up 25.3 percent from $7,561,405 in the like period of 2004. The improved results were mainly attributed to increased real estate development activity and significantly improved operations in the company's electrical construction segment. Net income from continuing operations increased to $574,588, or 2 cents per share, compared with a net loss of $562,473, or 2 cents loss per share for the same period in 2004. Net income (including discontinued operations) increased to $572,812, or 2 cents per share, compared to a net loss of $562,473, or 2 cents loss per share for the periods ending June 30, 2005 and 2004, respectively. Total revenues for the six months ended June 30, 2005 decreased 10.7 percent to $17,702,425, compared to $19,822,110 during the like period in 2004. This decrease was primarily due to a decline in the level of electrical construction activity. For the six months ended June 30, 2005, net income from continuing operations more than doubled to $723,892, or 3 cents per share, from $276,697, or 1 cent per share, for the same period in 2004. Net income (including discontinued operations) was $709,364, or 3 cents per share, compared to $276,697, or 1 cent per share, for the six months ended June 30, 2005 and 2004, respectively. The increase in net income largely resulted from higher real estate development activity and improved operations in the company's electrical construction segment. The backlog for real estate development operations at June 30, 2005 was approximately $6,308,000. There was no backlog at the same point last year. Goldfield expects to complete and deliver to buyers by early 2006 all backlog reflected at June 30, 2005. The current backlog assumes settlement of existing sales contracts from the Oak Park project, which commenced construction early this year, but does not include any amount from the substantially larger initial phase of the Pineapple House project. At June 30, 2005, electrical construction backlog had more than doubled to $11,590,000, from $4,700,000 at June 30, 2004. In commenting on the second quarter results, John H. Sottile, president of Goldfield, said, "The markedly improved six months results reflect the continuing growth of our real estate development activity and improved operations in our electrical construction business." Mr. Sottile also noted that "the significant buildup of backlogs in both real estate development and electrical construction operations should favorably impact results for the balance of 2005." 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. Statements in this release are based on current expectations. These statements are forward-looking, and actual results may differ materially. For further details, see the company's filings with the Securities and Exchange Commission. Further Information Investors: The Goldfield Corporation, 321-724-1700 or THE GOLDFIELD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 Revenue Electrical construction $5,284,372 $6,685,343 $12,384,688 $15,957,277 Real estate development 4,186,580 876,062 5,317,737 3,864,833 Total revenue 9,470,952 7,561,405 17,702,425 19,822,110 Costs and expenses Electrical construction 4,335,895 6,880,757 10,253,467 14,429,031 Real estate development 2,475,035 647,912 3,167,487 2,722,941 Depreciation and amortization 635,047 500,815 1,260,778 987,335 Selling, general and administrative 1,062,377 659,262 1,813,156 1,423,756 Total costs and expenses 8,508,354 8,688,746 16,494,888 19,563,063 Other income (expenses), net Interest income 25,433 17,934 53,891 38,509 Interest expense, net (33,475) (11,502) (66,460) (18,001) Loss on sale of property and equipment (9,069) (1,797) (10,555) (2,912) Other 4,136 16,164 6,024 16,759 Total other income (expenses), net (12,975) 20,799 (17,100) 34,355 Income (loss) from continuing operations before income taxes 949,623 (1,106,542) 1,190,437 293,402 Income taxes (benefit) 375,035 (544,069) 466,545 16,705 Income (loss) from continuing operations 574,588 (562,473) 723,892 276,697 Loss from discontinued operations (1,776) -- (14,528) -- Net income (loss) $572,812 $(562,473) $709,364 $276,697 Earnings (loss) per share of common stock - basic and diluted Continuing operations $0.02 $(0.02) $0.03 $0.01 Discontinued operations -- -- -- -- Net income (loss) $0.02 $(0.02) $0.03 $0.01 Weighted average common shares and equivalents used in the calculations of earnings per share Basic 25,687,548 26,336,064 25,760,218 26,313,124 Diluted 25,721,118 26,336,064 25,793,798 26,364,166 DATASOURCE: The Goldfield Corporation CONTACT: The Goldfield Corporation, +1-321-724-1700, or Web site: http://www.goldfieldcorp.com/

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