Pernix Group, Inc. Announces 2012 Financial Results
April 01 2013 - 1:58PM
Pernix Group, Inc. (OTCBB:PRXG) announced its financial results
today for the fiscal year ended December 31, 2012.
Pernix Group more than doubled its consolidated revenue from
continuing operations, generating $120.0 million of consolidated
revenue in 2012, as compared to $58.0 million in 2011. The
substantial increase in revenue was attributable to construction
activities under the company's various contracts with the US
government. The increase in construction-related revenues was
partially offset by a $1.1 million decline in power generating
revenue.
Gross profit from continuing operations also more than doubled,
increasing by $8.7 million to $14.8 million in 2012, driven by the
aforementioned success of our construction segment. Operating
expenses increased by $1.0 million, reflecting investments in human
capital to support the growth in our construction programs.
Pernix Group's consolidated net income from continuing
operations increased by $4.9 million, or 97%, to $10.0 million;
after deducting net income attributable to minority interest and
preferred dividends, consolidated net income from continuing
operations attributable to common shareholders was $4.1 million, or
$0.43 basic earnings per share.
"I am very pleased with the performance of the company during
2012, as well as the financial strength of Pernix today," noted
Nidal Zayed, President and CEO of Pernix Group, Inc. "The
significant growth in revenue, profitability and cash generated
from operations validates our strategy and reflects the strength of
our management team, joint venture partners and customer
relationships."
The improved results also reflect the divestiture of two
underperforming discontinued operations, TransRadio Sendersysteme,
Berlin, A.G. and Telesource CNMI, Inc. The divestitures were driven
by a strategic re-orientation at the company intended to re-focus
financial and management resources on businesses expected to
generate higher growth and return on investment.
Pernix Group's balance sheet reflects the elective
implementation of a quasi-reorganization ("QR"), effective as of
September 30, 2012, that resulted in the elimination of the
accumulated deficit against additional paid in capital. Management
implemented the QR based on the belief that the company had reached
a turning point in its operations, in consideration of its enhanced
earnings profile, strengthened financial position, improved
liquidity, and the divestiture of underperforming operations.
The company's consolidated balance sheet at December 31, 2012
showed a significant increase in cash to $21.4 million at December
31, 2012, as compared to $2.9 million at the end of the previous
year, primarily reflecting the positive developments in our
construction operations. Total debt decreased from $3.2 million to
$2.4 million. Total stockholders' equity increased to $16.0 million
at December 31, 2012 from $11.5 million at the end of 2011,
generally reflecting the improved profitability of our business.
Construction backlog was relatively stable at $67.9 million, as
compared to $71.0 million at the end of 2011.
"While a portion of our cash build-up is related to short-term
working capital dynamics, we nonetheless have significant
improvement in available liquidity with minimal debt outstanding.
Our strong balance sheet should enable us to continue to make
substantial investments in our business development and operations
teams, building upon recent investments that have paid off in the
form of new contract awards and improved profitability. We will
continue to invest in a targeted manner to take advantage of
opportunities to grow organically and through acquisition in both
operating segments of our business. Significant investments in the
past nine months include adding 30-year power industry veteran
Michael Frye to lead our power group, establishing a regional
development office in Dubai, and the addition of Don Gunther,
former Vice Chairman of Bechtel, to our board of directors."
The company filed its Form 10-K with the Securities and Exchange
Commission on April 1, 2013, which incorporates its audited
financial statements and notes thereto for the year ended December
31, 2012.
About Pernix Group, Inc.
Pernix Group, Inc. is a global company with its headquarters in
Lombard, Illinois. The company is engaged in two primary operating
business segments: construction services as a Design-Build General
Contractor in the Federal and Government market; and building,
managing and investing in Power Generation Projects as an
Independent Power Producer. Pernix has full-scale construction and
management capabilities, with operations in Africa, the Middle
East, and the South Pacific. Pernix Group, Inc. common stock is
traded on the over-the-counter bulletin board (OTCBB) under the
symbol PRXG. Additional information is available at
www.pernixgroup.com.
Forward-Looking Statement
Certain of the statements made in this press release are
forward-looking statements within the meaning of the Securities
Litigation Reform Act of 1995. Such statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Potential
risks and other factors that could cause or contribute to actual
results differing materially from such forward-looking statements
are discussed in greater detail in the Company's filings with the
U.S. Securities and Exchange Commission.
CONTACT: Gregg Pollack
Chief Financial Officer & Vice President - Administration
Pernix Group, Inc.
Tel: (630) 620-4787
gpollack@pernixgroup.com
Carol Groeber
Corporate Controller and Principal Accounting Officer
Pernix Group, Inc.
Tel: (630) 620-4787
cgroeber@pernixgroup.com
Casey Stegman
Director of Investor Relations
Stonegate Securities
Tel: (214) 987-4121
casey@stonegateinc.com
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