Pernix Group, Inc. Announces First Quarter 2014 Financial Results
May 19 2014 - 9:01AM
Pernix Group, Inc. (OTCQB:PRXG) today announced its financial
results for the first quarter ended March 31, 2014.
The Company generated consolidated revenue in the first quarter
of 2014 of $15.0 million, as compared to $17.2 million in the
comparable period of 2013. Construction segment revenue declined
from $16.1 million to $13.6 million, due primarily to achieving
substantial completion of the Company's Sather project in Baghdad
in February, although revenue from several new projects
substantially offset the decline from Sather. The Company generated
construction-related revenue from seven projects during the three
months ended March 31, 2014, as compared to only two projects
during the comparable period in 2013. Power segment revenue
increased from $1.1 million to $1.3 million, due primarily to
higher demand for power at our plants in Fiji, driven by a shift
from hydro to diesel generation.
Despite the decrease in revenue, gross profit increased 78% or
$1.7 million to $3.9 million in the first quarter of 2014 as
compared to $2.2 million in the comparable period in 2013. The
increase in gross profit was due primarily to lower anticipated
costs related to the Sather project as it achieved substantial
completion earlier than originally anticipated; margins in power
generation were relatively stable compared to the previous
year.
Higher gross profit offset an increase of $0.3 million in
operating expenses, resulting in pre-tax income before minority
interest of $1.8 million in the 2014 first quarter, as compared to
$0.3 million in previous year. Operating expenses were higher due
to an increase in accounting fees relating to transitioning from
our previous independent auditing firm, and costs related to the
update of the Company's stock offering Registration Statement.
Deducting income taxes and minority interest resulted in net income
attributable to Pernix stockholders of $0.2 million, as compared to
a loss of $0.5 million in 2013. After preferred dividends,
consolidated net income attributable to common stockholders was
$0.1 million in the first quarter of this year, or $0.01 basic
earnings per share, as compared to a loss of $0.5 million in the
comparable period last year, or ($0.05) per share.
"We are pleased with our first quarter profitability, and we are
excited about new business that we were awarded early in the year,"
commented Nidal Z. Zayed, President and CEO of Pernix Group. "The
diversification of our project portfolio, including our
nanotechnology laboratory project at Texas A&M University and
the significant expansion of one of our power plants in Fiji, is
consistent with our business development strategy, which entails
growing our existing markets and gaining access to new markets.
From an execution perspective, we have very experienced operating
teams managing these projects, and we are focused on maintaining
our track record of delivering all of our current projects on time,
on budget, and with no lost time incidents."
The Company's consolidated balance sheet at March 31, 2014
reflected cash of $15.8 million, as compared to $20.0 million at
the end of 2013. The decrease in cash reflects payment during the
first quarter of 2014 of payables and accruals booked at the end of
last year. The Company continues to be debt-free, with total
stockholders' equity of $13.0 million at March 31, 2014, up from
$11.3 million at the end of 2013. Pernix Group's updated
Registration Statement became effective in early May, offering five
million primary shares of Pernix common stock at $6.05 per share.
Construction backlog increased significantly to $70.3 million, as
compared to $37.2 million at the end of 2013, reflecting the
aforementioned awards in Texas and Fiji.
"Our financial condition remains strong, with ample liquidity
and no debt. We appreciate the ongoing support of our key
constituencies as we focus on implementing our strategic plan,
which calls for significant organic growth, as well as growth
through acquisitions, in both segments of our business," said Mr.
Zayed. "We are driving our organic growth through market expansion
and new joint ventures with complementary, world class partners who
enable us to compete for larger, more specialized opportunities.
Accordingly, we anticipate that we will bid on significantly more
projects this year due to our new joint ventures, stronger
historical track record and deeper financial and human
resources."
The Company filed its Form 10-Q with the Securities and Exchange
Commission on May 15, 2014, which incorporates its unaudited
financial statements and notes thereto for the quarter ended March
31, 2014.
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 primarily 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 the United States,
Africa, the Middle East, and the South Pacific. Pernix Group, Inc.
common stock is traded on the over-the-counter quotation 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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