Pernix Group, Inc. Announces Second Quarter 2013 Financial Results
August 15 2013 - 4:30PM
Pernix Group, Inc. (OTCBB:PRXG) today announced its financial
results for the second quarter ended June 30, 2013.
The Company generated consolidated revenue from continuing
operations in the second quarter of 2013 of $17.7 million, as
compared to $23.9 million in the comparable period of 2012. While
revenue was lower, the Company experienced significant improvement
in gross profit and net income, reflecting improved results in the
power generation segment and the positive impact of the 2012 sale
of two discontinued businesses.
The 2013 decline in revenue was primarily attributable to the
completion of a large construction project in late 2012 and
customer-driven delays in construction activities under the
Company's current contracts with the US government. The
customer-driven delay was temporary and activity levels have
increased during the latter part of the second quarter and into the
third quarter. The construction revenue decrease was partially
offset by the $0.4 million increase in revenue generated by our
power operations as compared to the second quarter of 2012, as our
Fiji power operations experienced higher demand for diesel based
power necessitated by lower hydro power production.
Gross profit from continuing operations increased 11% or $0.4
million to $3.7 million in the second quarter of 2013 as compared
to $3.3 million in the comparable period in 2012. The increase in
gross profit was due to improved revenue in our power generation
business reflecting the aforementioned higher mix of diesel
production in Fiji coupled with lower power plant maintenance costs
which more than offset a small decline in construction segment
gross profit. Operating income from continuing operations for the
second quarter ended June 30, 2013 was essentially flat as compared
to the comparable period last year, as the increase in gross profit
was offset by increases in both salary expense and general and
administrative expense as a result of investment in business
development professionals and the related recruiting expenses in
connection with its strategic growth objectives.
Net income from continuing operations after minority interest
declined by $0.2 million to $0.7 million ($0.07 basic earnings per
share) in the second quarter of this year due to small increases in
other expense and income tax expense, as compared to consolidated
net income from continuing operations after minority interest of
$0.9 million ($0.09 basic earnings per share) in the second quarter
of 2012.
"We are pleased with our performance in the second quarter, and
we believe that both of our business segments are operating
efficiently at this time," commented Nidal Z. Zayed, President and
CEO of Pernix Group. "We have seen improvement in activity levels
at our mission-critical projects for the US government, and we have
recently begun work on new projects in both segments of our
business. We are continuing to invest in high caliber business
development and operations professionals to accelerate and execute
our growth strategy."
The Company's consolidated balance sheet at June 30, 2013
reflected cash of $19.8 million, as compared to $18.2 million at
March 31, 2013, as cash generated from operations more than offset
the distribution of our partner's share of fourth quarter 2012
Pernix-Serka L.P. earnings. Total debt decreased from $2.9 million
to $2.7 million, reflecting scheduled amortization of the debt
incurred in connection with the purchase of our corporate
headquarters property in March of this year. Total stockholders'
equity increased to $15.0 million at June 30, 2013 from $13.3
million at March 31, 2013, reflecting the current quarter's net
earnings, partially offset by the aforementioned distribution of
our partner's share of earnings in the joint venture. Construction
backlog declined slightly to $59.6 million, as compared to $67.3
million at the end of the first quarter, reflecting significant
progress on our existing construction contracts, net of additional
contractual commitments in both our construction and power
segments. The Company began performance on two new contracts late
in the second quarter which should create opportunities to
penetrate new geographic areas, diversify our customer base, and
broaden strategic relationships.
"Our financial condition remains solid, both in terms of
liquidity and debt levels. Management is focused on executing our
strategic plan within both business segments to drive growth and
continued profitability and to build long-term shareholder value,"
said Zayed.
The Company filed its Form 10-Q with the Securities and Exchange
Commission on August 14, 2013, which incorporates its unaudited
financial statements and notes thereto for the quarter and six
months ended June 30, 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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