Pernix Group, Inc.

CIK:0001082198|SEC Filings

Condensed Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Construction Revenue	$ 70,230,232	$ 9,638,753	$ 145,328,813	$ 18,967,323
Service fees - power generation plant	1,558,751	1,404,595	2,893,748	2,668,682
Other revenue	22,296	40,539	35,042	58,772
Gross revenues	71,811,279	11,083,887	148,257,603	21,694,777
Costs and expenses:
Construction costs	67,495,302	9,217,411	140,371,287	18,452,790
Operation and maintenance costs - power generation plant	510,462	610,874	1,114,562	1,129,916
Cost of revenues	68,005,764	9,828,285	141,485,849	19,582,706
Gross profit	3,805,515	1,255,602	6,771,754	2,112,071
Operating expenses:
Salaries and employee benefits	4,781,244	1,677,390	9,037,585	3,478,647
General and Administrative	1,826,325	2,878,311	4,983,851	3,962,956
Total Operating Expenses	6,607,569	4,555,701	14,021,436	7,441,603
Operating Income / (Expense)	(2,802,054)	(3,300,099)	(7,249,682)	(5,329,532)
Other income (expense):
Interest income (expense), net	(37,929)	2,418	(74,290)	2,349
Interest expense - related party	(165,938)	(21,216)	(284,729)	(42,916)
Foreign currency exchange gain (loss)	5,537	(3,262)	(30,335)	(45,388)
Other income (expense), net	15,955	26,932	35,136	40,434
Total other income (expense)	(182,375)	4,872	(354,218)	(45,521)
Consolidated income (loss) before income taxes	(2,984,429)	(3,295,227)	(7,603,900)	(5,375,053)
Income tax expense	(65,144)	(109,349)	(80,570)	(127,117)
Consolidated net income (loss)	(3,049,573)	(3,404,576)	(7,684,470)	(5,502,170)
Net Income (loss) attributable to non-controlling interest	(2,302)	84,340	207,621	53,691
Consolidated net Income / (loss) attributable to the stockholders of Pernix Group, Inc. and Subsidiaries	(3,047,271)	(3,488,916)	(7,892,091)	(5,555,861)
Preferred stock dividends	1,000,000	113,471	1,000,000	225,724
Consolidated net Income / (loss) attributable to the common stockholders of Pernix Group Inc, and subsidiaries	$ (4,047,271)	$ (3,602,387)	$ (8,892,091)	$ (5,781,585)
Basic and Diluted net earnings (loss) per share	$ (0.36)	$ (0.38)	$ (0.91)	$ (0.61)
Weighted average shares outstanding - basic and diluted	9,480,602	9,403,697	9,442,141	9,403,697

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Consolidated net income (loss)	$ (7,684,470)	$ (5,502,170)
Adjustments to reconcile net (loss) to net cash provided / (used) in operating activities: cash provided / (used) in operating activities
Depreciation and Amortization	2,311,394	105,416
Quasi Reorganization adjustments	57,668	100,419
Stock compensation expense	165,150	185,054
Changes in assets and liabilities:
Accounts receivable	(1,805,100)	(4,044,480)
Inventories	(59,050)	(226,771)
Cost and estimated earnings in excess of billings	6,341,328	5,234,820
Prepaid expenses and other current assets	211,085	2,809,312
Accounts payable and accrued expenses	(12,504,663)	(7,634,422)
Billings in excess of cost and estimated earnings	(815,187)	(633,512)
Net cash provided / (used in) operating activities	(13,781,845)	(9,606,334)
Cash flows from investing activities:
Capital expenditures	(551,947)	(240,567)
Acquisitions	(334,827)	(24,407,585)
Restricted cash	(22,642)	97,335
Net cash provided / (used in) investing activities	(909,416)	(24,550,817)
Cash flows from financing activities:
Proceeds from sale of preferred stock		28,000,000
Proceeds from long-term debt	9,080,212	3,053,816
Dividends paid		(98,630)
Distribution to non-controlling interest holders	(1,086,800)
Partial sale of non-controlling interest in subsidiary	2,343,803
Payment of debt	(2,315,721)
Net cash (used in) / provided by financing activities	8,021,494	30,955,186
Effect of exchange rate changes on cash and cash equivalents	(16,809)	169,675
Net increase (decrease) in cash and cash equivalents	(6,686,576)	(3,032,290)
Cash and cash equivalents at start of period	18,792,712	11,169,169
Cash and cash equivalents at end of period	12,106,136	8,136,879
Cash paid during the period for interest	138,437
Cash paid during the period for interest - related party	284,729
Cash paid during the period for income taxes		33,000
Supplemental disclosure of non-cash investing and financing activities:
Preferred Series C Stock dividends declared in common stock	1,000,000
Accumulated preferred stock dividends	$ 227,001	$ 127,124

Condensed Consolidated Balance Sheets (June 30, 2016 unaudited) - USD ($)

Jun. 30, 2016

Dec. 31, 2015

Current assets:

Cash and cash equivalents

$ 12,106,136

$ 18,792,712

Restricted cash

975,144

952,502

Accounts and other receivables

49,687,687

48,219,748

Inventories

1,904,003

1,844,953

Cost and estimated earnings in excess of billings

9,690,699

16,563,199

Prepaid expenses and other current assets

2,199,558

1,453,539

Total current assets

76,563,227

87,826,653

Property and equipment, net

5,127,919

4,069,612

Deferred tax asset

5,262

552,756

Other assets

856,120

689,323

Intangible assets

Customer contract backlog

4,761,322

6,248,503

Goodwill

20,023,832

19,141,273

Tradename

600,000

900,000

Total assets

107,937,682

119,428,120

Current liabilities:

Accounts payable

42,307,732

37,757,695

Accrued trade liabilities

11,625,196

32,339,972

Billings in excess of costs and estimated earnings

5,584,152

6,399,339

Other current liabilities

12,476,381

7,770,659

Current maturities on term loan and line of credit

2,677,961

2,544,959

Total current liabilities

74,671,422

86,812,624

Non-current liabilities

Other non-current liabilities

352,080

698,867

Deferred tax liability

5,262

552,756

Long-term debt

16,599,457

8,744,686

Total Liabilities

91,628,221

96,808,933

Commitments and Contingencies

Pernix Group, Inc. and Subsidiaries Stockholders' equity

Common stock

^[1]

99,037

94,037

Additional paid-in capital

45,308,081

45,147,931

Retained earnings (Accumulated deficit)

^[2]

(32,478,450)

(24,586,359)

Accumulated comprehensive Income / (Loss)

^[2]

(554,749)

(583,408)

Total Pernix Group, Inc. and Subsidiaries Stockholders' equity

12,413,619

20,111,901

Non-controlling interest

3,895,842

2,507,286

Total Stockholders' equity

16,309,461

22,619,187

Total liabilities and Stockholders' equity

107,937,682

119,428,120

Series A

Pernix Group, Inc. and Subsidiaries Stockholders' equity

Convertible senior preferred stock

^[3]

10,000

Series B

Pernix Group, Inc. and Subsidiaries Stockholders' equity

Convertible senior preferred stock

^[4]

1,700

Series C

Pernix Group, Inc. and Subsidiaries Stockholders' equity

Convertible senior preferred stock

^[5]

$ 28,000

[1]	Common stock, $0.01 par value. Authorized 20,000,000 shares, 9,903,697 issued and outstanding, including 500,000 shares declared as a stock dividend on June 17, 2016 and issued August 1, 2016.
[2]	Since September 30, 2012.
[3]	Series A convertible senior preferred stock, $0.01 par value. Authorized 1,000,000 shares, $5,000,000 liquidation preference, 1,000,000 shares issued and outstanding.
[4]	Series B convertible senior preferred stock, $0.01 par value. Authorized 400,000 shares, 170,000 shares issued and outstanding, $850,000 involuntary liquidation preference.
[5]	Series C convertible senior preferred stock, $0.01 par value. Authorized 4,000,000 shares, $28,000,000 liquidation preference, 2,800,000 shares issued and outstanding.