GV Goldfield Corp

Goldfield Reports Third Quarter Results MELBOURNE, Fla., Nov. 14 /PRNewswire-FirstCall/ -- The Goldfield Corporation , a leading provider of electrical construction and maintenance services in the southeastern and mid-Atlantic regions of the United States, today reported its nine-month and third-quarter earnings results for 2003. For the nine-month period ended September 30, 2003, the company reported revenues from continuing operations rose nearly 40 percent to $25,049,927, versus $17,938,456 for the same period in 2002. The significant revenue increase stemmed from a 58 percent increase in transmission line construction and fiber optic projects in the company's electrical construction services. Revenues from the company's real estate operations were also strong, but were slightly lower than the first nine months of last year due primarily to a change in the accounting method the company uses to recognize revenue and income in this business. Net income from continuing operations during the nine-month period was $255,523, or 1 cent per share, compared with $532,556, or 2 cents per share, during the same period last year. This reduction was primarily due to both the aforementioned change in accounting method in the real estate operations as well as significant cost over-runs in the electrical construction operations resulting from adverse weather conditions encountered on several projects. For the third quarter ended September 30, 2003, Goldfield reported for its continuing operations revenues of $6,814,141, versus $6,947,850 for the like period of last year. For the current quarter, the company had a loss from continuing operations of $92,118, nil per share, versus net income of $60,420, nil per share, during the like quarter of 2002. The decline in the current quarter primarily resulted from the previously mentioned accounting change in the real estate operations. John H. Sottile, president of Goldfield, said, "We continue to experience strong demand for our electrical construction business as evident by our dramatic revenue growth. However, we have not observed, as yet, any increased grid construction resulting from the August 2003 blackout in the Northeastern United States. Our real estate operations continue to produce favorable results with substantial opportunities in the future." For the nine months ended September 30, 2003, Goldfield reported net income (including discontinued operations) of $134,139, or 1 cent per share, compared to $907,061, or 3 cents per share, for the like period of last year. Discontinued operations (from mining) reported a loss of $121,384 as compared to net income of $374,505 for the like period of last year. Discontinued operations included significant gains on the sale of real estate last year, while this year it included a reserve of $195,750 recorded for a previously announced Environmental Protection Agency ("EPA") notice of potential liability involving a mining property in the state of Washington sold almost 40 years ago. This reserve includes Goldfield's current estimated share of a site investigation to be undertaken by the company and the other potentially responsible parties named in the notice. It is impossible at this early stage to estimate the extent of any remediation action that may be required. However, Goldfield believes that a substantial majority of the mining activities and all of the milling and related processing and process waste disposal activities of possible concern to the EPA were likely conducted by subsequent owners. About Goldfield Goldfield is a leading provider of electrical construction and maintenance services in the energy infrastructure industry in the southeastern and mid- Atlantic regions of the 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 waterfront 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. THE GOLDFIELD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Revenue Electrical construction $4,539,399 $1,987,085 $20,389,978 $12,877,614 Real estate 2,274,742 4,960,765 4,659,949 5,060,842 Total revenue 6,814,141 6,947,850 25,049,927 17,938,456 Costs and expenses Electrical construction 4,236,547 1,983,146 17,996,878 10,333,579 Real estate 1,677,775 3,609,370 3,609,302 3,648,634 Depreciation and amortization 433,418 354,944 1,171,527 1,032,302 Selling, general and administrative 647,689 919,330 1,924,667 2,086,256 Total costs and expenses 6,995,429 6,866,790 24,702,374 17,100,771 Other income, net Interest income 15,876 38,377 87,392 69,377 Interest expense, net (6,755) (6,002) (20,263) (20,180) Loss on sale of property and equipment (2,352) (14,821) (12,516) (64) Other 1,066 1,729 6,568 2,451 Total other income, net 7,835 19,283 61,181 51,584 (Loss) income from continuing operations before income taxes (173,453) 100,343 408,734 889,269 Income taxes (benefit) (81,335) 39,923 153,211 356,713 (Loss) income from continuing operations available to common stockholders (92,118) 60,420 255,523 532,556 (Loss) income from discontinued operations (net of income taxes (benefit) of ($89,592)and $72,077 for the three months ended September 30, 2003 and 2002, respectively and ($89,592) and $256,287 for the nine months ended September 30, 2003 and 2002, respectively) (121,384) 104,467 (121,384) 374,505 Net (loss) income available to common stockholders $(213,502) $164,887 $134,139 $907,061 (Loss) earnings per share of common stock - basic and diluted (Loss) income from continuing operations $0.00 $0.00 $0.01 $0.02 (Loss) income from discontinued operations 0.00 0.00 0.00 0.01 Net (loss) income $(0.01) $0.01 $0.01 $0.03 Weighted average common shares and equivalents used in the calculations of (loss) earnings per share Basic 26,207,400 27,512,631 26,577,479 27,473,403 Diluted 26,377,563 27,628,772 26,726,190 27,603,817 DATASOURCE: The Goldfield Corporation CONTACT: Media, Jim Burke of Edelman, +1-321-722-9788, or , for The Goldfield Corporation; or Investors, The Goldfield Corporation, +1-321-724-1700, or Web site: http://www.goldfieldcorp.com/

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