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LOMBARD, Ill., April 1, 2013 (GLOBE NEWSWIRE) -- 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.