Pernix Group, Inc. Announces First Quarter 2013 Financial Results
May 17 2013 - 8:30AM
Pernix Group, Inc. (OTCBB:PRXG) today announced its financial
results for the first quarter ended March 31, 2013.
The Company generated consolidated revenue from continuing
operations in the first quarter of 2013 of $17.2 million, as
compared to $36.6 million in the comparable period of 2012. The
decline in revenue was attributable to temporary slowdowns in
construction activities under the Company's various contracts with
the US government; revenue generated from power operations was
stable as compared to the first quarter of 2012.
Although revenue decreased, gross profit from continuing
operations increased 29% or $0.5 million to $2.2 million in the
first quarter of 2013 as compared to $1.7 million in the comparable
period in 2012. The increase in gross profit was due to improved
results in our power generation business reflecting the 2013
operation of a power plant engine that was offline for repair in
2012, coupled with a small decline in construction segment gross
profit.
The temporary slowdown behind the decline in construction
segment revenue drove a net loss for the quarter of approximately
$0.5 million after minority interest, as compared to consolidated
net income from continuing operations after minority interest of
$1.1 million in the first quarter of 2012. After preferred
dividends, consolidated net income from continuing operations
attributable to common shareholders was ($516,000) this year, or
($0.05) basic earnings per share, as compared to basic earnings of
$0.12 per share last year.
"While the first quarter performance is below our expectations,
we believe that these results are a short-term aberration caused by
project-specific delays which are being proactively addressed."
commented Nidal Z. Zayed, President and CEO of Pernix Group. "We
have already seen an improvement in activity levels at our
mission-critical projects for the US government, and we remain very
positive about both the near term and long term prospects for our
business. We have invested heavily in high caliber business
development professionals in both segments of our business, and we
expect that we will be able to grow and diversify our business
profitably."
The Company's consolidated balance sheet at March 31, 2013
reflected cash of $18.2 million, as compared to $21.4 million at
the end of 2012, primarily reflecting the first quarter 2013
distribution of our partner's share of Pernix-Serka L.P. earnings
through September 30, 2012. Total debt increased from $2.4 million
to $2.9 million, reflecting the debt incurred in connection with
the purchase of our headquarters building in March of this year.
Total stockholders' equity decreased to $13.3 million at March 31,
2013 from $16.0 million at the end of 2012, reflecting both the net
loss for the quarter and the aforementioned distribution of
partner's share of earnings in the joint venture. Construction
backlog was fairly stable at $67.3 million, as compared to $67.9
million at the end of 2012, reflecting additional contractual
commitments in both our construction and power segments.
"Our financial condition remains strong, with adequate liquidity
and minimal debt. We appreciate the ongoing support of our key
constituencies as we focus on realizing the benefits of our recent
business re-orientation and successful turnaround," said Zayed.
The Company filed its Form 10-Q with the Securities and Exchange
Commission on May 15, 2013, which incorporates its unaudited
financial statements and notes thereto for the quarter ended March
31, 2013.
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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