In 2009, Goldfield continued to face a difficult economic environment and challenging market conditions.  The current economic slowdown resulted in reduced demand for our electrical construction services through 2009, and the continuing depression in the Florida real estate market limited opportunities in our real estate development business.  As a result of these factors, Goldfield’s revenue for 2009 declined 7% from 2008 to $29.2 million.  In addition, although Goldfield posted an operating loss and a net loss for 2009, both showed improvement over 2008 results.  Our operating loss improved to $2.4 million for 2009, compared to an operating loss of $5.1 million in 2008, and our net loss for 2009 was $1.9 million ($0.08 per share) versus net loss of $5.4 million ($0.21 per share) in 2008. 

Revenues from electrical construction in 2009 decreased to $27.8 million from $29.1 million, and operating income decreased to an operating loss of $93,000 from operating income of $1.4 million in the prior year.  The decrease in revenue was attributable to the reduced demand for our electrical construction services, with many of our clients electing to defer non-critical infrastructure projects.  The decrease in operating income was primarily due to the reduced demand for our services coupled with one electrical construction project which was highly impacted by adverse weather conditions during the fourth quarter 2009. 

In our real estate development segment, sales of condominium units continued at low levels due to the depressed real estate market in Florida.  For 2009, revenue and operating income from this segment were $1.5 million and $52,000, respectively, compared to revenue of $2.4 million and an operating loss of $3.8 million in 2008.  The decrease in revenue was primarily due to a decrease in the number of units sold and lower sales prices for the units sold.  Six Pineapple House units sold during 2009, compared to the sale of seven units (four Pineapple House units and three Oak Park units) for the same period in the prior year.  The increase in the operating income was due primarily to the write-down of $3.2 million on real estate inventory during the year ended December 31, 2008.  As of December 31, 2009, our only active project was Pineapple House.  Twenty-eight of the thirty-three units in Pineapple House have been sold.

Although we have not yet seen a rebound in the electrical construction industry, we continue to manage our business so that Goldfield will be well positioned to take advantage of opportunities when industry conditions improve.  We continue to look to expand our revenue base by seeking projects in Colorado, northern Texas and Missouri, outside of our historic base in the southeastern United States, and to look for ways to manage our costs prudently. 

The depression in the Florida real estate market continues.  We are fortunate that our exposure is limited, with only five unsold units remaining at our Pineapple House project, and no projects under construction.  Notwithstanding market conditions, we have continuing sales at Pineapple House above our current carrying value, with three units sold to date in 2010.

The adverse economic environment and market conditions pose significant challenges for Goldfield.  We believe that the solid reputation of both our electrical construction and real estate development operations and the continuing hard work and dedication of our employees have put us in a position to take advantage of the opportunities that lie ahead. 

We would like to thank our shareholders for their support, and we look forward to your continued support in the future.

John H. Sottile

Chairman of the Board

April 29, 2010