Littlefield Corp 1Q Earnings Review

| About: Littlefield Corp. (LTFD)

Littlefield Corp. (OTCPK:LTFD), my favorite aging baby boomer play, posted first quarter earnings after the bell yesterday.

Littlefield earned $.033/share on record revenues of $3.489M. Revenues for the entertainment (bingo) unit grew 7% while hospitality (catering) grew 63% year-over-year. Results in the hospitality division, while still generating a slight operating loss, were especially encouraging. That division is highly seasonal, with the first quarter generally the weakest. I expect hospitality to remain strong barring a major slowdown in the economy.

Results this quarter were dragged down $.01 by finance costs related to structured settlements of lawsuits that have haunted the company for years. According to the company, these costs will be ongoing. Results also included $75,000, or $.01, in costs related to a failed attempt to develop a bingo business in Arkansas, a charge I would characterize as one-time.


CEO Jeff Minch said ""Q1 2007 was a very, very good quarter with continuing substantial revenue increases in every business unit except for Alabama bingo. This is a very good performance."

I'm looking forward to the conference call Friday morning. Hopefully, the company will address an item that was missing from the release: the prospect of future institutional investments. Recall that in February, the company announced a $400,000 above-market PIPE with Value Fund Advisors LLC. In that release, Minch hinted that there may be more to come: "While there are no guarantees in this deal, they may also represent a substantial source of follow on financing which may facilitate larger acquisition transactions in the future." For its part, Value Fund Advisors appears to be serious about investing in Littlefield. While the PIPE agreement obligated it to purchase 100,000 shares in the open market, it has since purchased more than twice that. According to a recent SEC filing, VFA has purchased another 246,000 shares above and beyond the 400,000 share PIPE.