Littlefield Announces Record Q3‚ 2009 Revenue

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. November 02, 2009

October 29, 2009 - Littlefield Corporation (OTCBB: LTFD) today announced results for the third quarter of 2009. It should be noted the third quarter is seasonally a weaker quarter due to the weakness experienced primarily in July and August.

The Company achieved a record level of revenue from continuing operations which increased 5% over the comparable prior year quarter; the new record was mainly attributed to the contribution of acquired halls coupled with continued relatively stable performance throughout its regional bingo operations.

The Company's income from continuing operations improved by almost $500,000 over the prior year. This improvement narrowed the Company's loss from continuing operations from approximately $600,000 in Q3 2008 to approximately $120,000 in the current quarter.

The earnings improvement was created by the record revenue in conjunction with company-wide restructuring initiatives which included closing certain under-performing operations.

The Company's Entertainment business is referred to as “continuing” operations and the Hospitality segment divested in the second quarter of 2009 is referred to as “discontinued” operations in this report.

The Q3 2009 results include approximately $271,000 of notable items: $303,000 of expense associated with the start-up of new halls and re-openings at halls in Texas, $73,000 of legal expense for South Carolina, Florida, Texas and its Furtney litigation and $17,000 for non-cash stock-based compensation which were partially offset by a $122,000 reduction of estimated prior year reserve for incentive compensation. The Company continues to reduce the negative impact of the Texas start-up operations. Its legal fees should be more manageable with settlement of the South Carolina Department of Revenue cases reported in the second quarter. The Company expects the Furtney litigation to conclude this calendar year.

The Q3 2008 results included approximately $628,000 of notable items: $476,000 of expense from Texas start-ups and re-openings, $69,000 from legal expense related to South Carolina and Texas and its Furtney litigation, $70,000 of consideration related to acquisitions and $13,000 for non-cash stock-based compensation expense.

HIGHLIGHTS Highlights of the third quarter compared to the prior year follow; for comparability these have been adjusted to exclude the Hospitality business which is classified as discontinued operations:

1. Total consolidated Q3 2009 revenue was a record $2,205,577, up $102,356 or 5% from last year.

2. Total consolidated Q3 2009 gross profit including the noted items was $472,517, up $324,255 or 219% versus 2008 mainly from the contribution of acquisitions in South Carolina and the effect of restructuring actions taken including the closure of certain under-performing halls in Texas.

3. Excluding the effects of start-up activities gross profit was $776,168, up $152,323 or 24% over the prior year.

4. Total gross profit margin expanded to 21% of revenue from 7% of revenue in 2008.