Pernix Group, Inc.

The following unaudited pro forma information illustrates the effect on the Company’s revenue and net earnings for the three and six months ended June 30, 2015, assuming that the 2015 acquisitions had taken place on January 1, 2014.  No pro forma information is necessary for the three and six months ended June 30, 2016 as the results of the acquired businesses are included in the Company’s consolidated statements of operations for those periods.

These pro forma results of operations have been prepared for comparative purposes only and include certain adjustments to actual financial results for the periods presented, such as estimated additional amortization and depreciation expense as a result of intangibles and fixed assets acquired, measured at fair value. They do not purport to be indicative of the results of operations that actually would have resulted had the acquisitions occurred on the date indicated or that may result in the future.

The pro forma results include adjustments for non-recurring transaction costs of $1.7 million for the six months ended June 30, 2015.  Actual acquisition revenue included in the three and six months ended June 30, 2016 statements of operations were $62.1 million and $127.6 million, respectively.  Actual acquisition loss before income taxes included in the three and six months ended June 30, 2016 statements of operations was $(1.1) million and $(3.0) million, respectively.  The revenue and earnings (losses) for the six months ended June 30, 2015 were insignificant as a result of the acquisition dates.

We have successfully completed projects for The Boeing Company, Gulfstream Aerospace, FUJIFILM Diosynth Biotechnologies USA, SYNNEX Corporation and Ferguson Enterprises during the six months ended June 30, 2016. BE&K BG was awarded two projects in the second quarter of 2016 by the Texas A&M University System, one of the largest higher education systems in the nation to construct a $29.2 million, Multi-Purpose Academic Facility in McAllen, Texas; and a $41.2 million, Nursing and Health Sciences Building to be constructed in Commerce, Texas.

We are actively pursuing additional DOS projects, as well as large commercial and advanced manufacturing opportunities in North America along with other large projects in Guam with potential award expectations in the second half of 2016.

“We continue to track to our plans,” said Nidal Zayed, Pernix’s CEO & President, “in the last quarter we’ve mobilized teams to our major projects in Mozambique and Germany, we have significantly increased our backlog in the U.S. market and abroad, and our corporate structure and risk mitigation strategy allows us to continue to aggressively bid new work while not over extending. We’ve streamlined and improved processes and our teams are becoming more aligned each day for maximum efficiency. We continue to grow strategic partnerships, and enhance our supply chain relationships for maximum results and project execution.”