Pernix Group, Inc. Announces 2013 Financial Results
April 01 2014 - 8:00AM
Pernix Group, Inc. (OTCQB:PRXG) announced its financial results
today for the fiscal year ended December 31, 2013.
Pernix Group reported the second highest revenue in its history,
with consolidated revenue from continuing operations of $73.8
million in 2013, as compared to $120.0 million in 2012. The
decrease in revenue was primarily attributable to the successful
completion or wind down of two large construction projects for the
U.S. government. The decrease in construction-related revenues was
partially offset by a $0.7 million increase in power generating
revenue, which reflects higher usage of diesel power at the
Company's power plants in Fiji, as opposed to hydro-electric power,
due to climatic conditions and maintenance of hydro facilities in
Fiji.
Gross profit from continuing operations was $7.2 million in
2013, as compared to $14.8 million in 2012, driven by the
aforementioned decline in revenue in our construction segment. This
decline was partially offset by higher revenue and gross margin in
the power generating segment, resulting from both higher demand for
our power in Fiji and lower maintenance costs. Consolidated
operating expenses decreased by $1.0 million, reflecting better
absorption of overhead costs in our construction projects that more
than offset higher compensation expenses associated with additional
resources in our power and construction business development and
execution functions. As a result of these factors, operating income
(before minority interest) declined to $2.0 million in 2013 from
$8.7 million in 2012; after taking into consideration minority
interest, operating income was $0.4 million this year, as compared
to $2.9 million last year.
Pernix Group's consolidated net income from continuing
operations attributable to common shareholders decreased to ($4.7
million) from $0.4 million. The net loss in 2013 was due primarily
to management's decision at the end of the third quarter to
increase the valuation allowance on its deferred tax assets by $4.9
million. As a result of the increase in valuation allowance, all of
the Company's deferred tax assets are now fully reserved, and all
future taxable income would be expected to have a dollar-for-dollar
additive impact to stockholders' equity. The increase in valuation
allowance is a non-cash expense and has no impact on the Company's
liquidity, cash flows or its ability to execute projects or conduct
ongoing operations.
Nidal Zayed, President and CEO of Pernix Group, Inc., said,
"2013 was a transitional year for Pernix Group, as we focused on
building our senior leadership and business development teams and
achieving outstanding performance in the field. We are pleased with
our accomplishments in these areas, and they are already yielding
results as the Company has won new business thus far in 2014
totaling over $45 million in both segments of our business. These
developments fuel our excitement about the Company's potential,
both near and long-term. We are keenly focused on successful
execution of our first domestic construction award, formation of
new joint ventures, and consistent pre-qualifications for major
U.S. government contracts expected to be awarded in 2014. Our power
business also continues to perform well, providing diversification
and consistency of operating income, as well as significant
expansion opportunities, both domestically and abroad."
The Company's consolidated balance sheet at December 31, 2013
reflected a relatively stable cash balance of approximately $20.0
million at December 31, 2013, as compared to $21.9 million at the
end of the previous year. As a result of the previously announced
recapitalization, the Company paid off all of its debt in December
2013 and had total stockholders' equity attributable to Pernix
shareholders of $10.5 million at December 31, 2013, as compared to
$10.2 million at December 31, 2012.
Construction backlog declined to $37.1 million from $67.9
million, as the Company's PSJV affiliate approached completion of
our Sather containerized housing project in Baghdad. Subsequent to
year-end, however, Pernix has received new awards totaling over $45
million, including our first domestic project.
"Our strong balance sheet and consistent support from our
controlling shareholders provide Pernix with a solid foundation for
growth," added Mr. Zayed. "Together with our expanded team of
industry veterans and new world-class joint venture partners, we
are well-positioned to win new business as well as maintain our
track record of outstanding execution going forward. The addition
of Bob Campbell to our board and the expanded role of Don Gunther,
former Vice Chairman of Bechtel and now chairman of our board, also
reinforce our positive near-term outlook."
The Company filed its Form 10-K with the Securities and Exchange
Commission on March 28, 2014, which incorporates its audited
financial statements and notes thereto for the year ended December
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 (OTCQB) 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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