Pike Reports Record Core Services Revenue In Fiscal Third Quarter 2012

Pike Electric Corporation (NYSE: PIKE), one of the nation’s leading energy solutions providers, today reported fiscal third quarter 2012 results for the period ended March 31, 2012. Revenue totaled $162.8 million, an increase of 6% compared to $153.8 million in the year-ago period. Net income totaled $2.0 million, or $0.06 per diluted share versus net income of $0.6 million, or $0.02 per diluted share for the same period last year.

Core services revenue totaled a record high $156.5 million and storm restoration revenue totaled $6.3 million in the fiscal third quarter 2012. Core services revenue includes the Company’s distribution, transmission, and engineering and substation construction activities. Core services revenue totaled $137.7 million and storm restoration revenue totaled $16.1 million in the year-ago period.

“Our core business improved on both a sequential and year-over-year basis this quarter, led by continued double-digit growth in distribution. Even with the decline in storm restoration this quarter, we achieved total revenue growth of six percent compared to the fiscal third quarter last year,” said J. Eric Pike, Chairman and CEO of Pike. “In addition to our improved financial performance, we are experiencing a heightened level of bid activity as the overall industry demand for our full suite of services appears to be strengthening.”

Gross profit increased to $20.5 million, or 12.6% of revenue, in the fiscal third quarter 2012. Gross profit totaled $16.4 million, or 10.7% of revenue in the year-ago period. The improvement primarily reflects the sustained volume growth in distribution. Additionally, the gross profit percentage benefitted from a lower mix of procurement-related revenue.

Conference Call

The Company will host a conference call at 11:00 a.m. Eastern today. The call can be accessed by dialing (877) 856-1958, or (719) 325-4820 for international callers. The confirmation code for the live call is 5640261. Interested parties may also listen to a simultaneous webcast via the “Investor Center” on the Company's website at www.pike.com.

A replay will be made available shortly after the live call is completed and can be accessed by dialing (858) 384-5517. The confirmation code for the replay is 5640261. The replay will remain available until midnight Eastern on May 15. An on-demand replay of the conference call will remain available online for a limited time following the conclusion of the call.

About Pike Electric Corporation

Pike Electric Corporation is a leading provider of energy solutions to over 200 investor-owned, municipal and cooperative utilities in the United States. Our comprehensive services include facilities planning and siting, permitting, engineering, design, installation, maintenance and repair of power delivery systems, including renewable energy projects. Our common stock is traded on the New York Stock Exchange under the symbol PIKE. For more information, visit us online at www.pike.com.

Forward-Looking Statements

This press release and other statements we make from time to time in the future may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may relate to our plans, objectives and future estimates. The terms "should," "believe," "plan," "expect," "anticipate," "estimate," "intend" and "project" and similar words or expressions are intended to identify forward-looking statements. Various risks, uncertainties and other factors could cause actual results to differ materially from those expressed in any forward-looking statements. For a more detailed list of such risks, uncertainties and other factors, please refer to the Risk Factor section of our Annual Reports on Form 10-K and in its other periodic filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
 
PIKE ELECTRIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

(In thousands, except per share amounts)
       
Three months ended March 31, Nine months ended March 31,

2012
  2011   2012   2011  
Total revenues $ 162,766 $ 153,825 $ 506,588 $ 431,146
Cost of operations   142,228     137,416     436,782     386,377  
 
Gross profit 20,538 16,409 69,806 44,769
General and administrative expenses 16,220 13,810 48,096 40,114
(Gain) loss on sale property and equipment   (406 )   39     (288 )   588  
 
Income from operations 4,724 2,560 21,998 4,067
Other expense (income):
Interest expense 1,179 1,620 6,017 5,094
Other, net   (15 )   (22 )   (28 )   (38 )

Total other expense, net
  1,164     1,598     5,989     5,056  
 
Income (loss) before income taxes 3,560 962 16,009 (989 )
Income tax expense (benefit)   1,536     342     6,490     (340 )
 
Net income (loss) $ 2,024   $ 620   $ 9,519   $ (649 )
 
Net earnings (loss) per share:
Basic $ 0.06   $ 0.02   $ 0.28   $ (0.02 )
Diluted $ 0.06   $ 0.02   $ 0.27   $ (0.02 )
 
Shares used in computing earnings (loss) per share:
Basic   34,869     33,446     34,569     33,368  
Diluted   35,241     34,062     35,066     33,368  

   
PIKE ELECTRIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
   
Mar. 31, June 30,
  2012   2011  
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 208 $ 311
Accounts receivable from customers, net 92,258 80,902
Costs and estimated earnings in excess of billings
on uncompleted contracts 63,750 49,266
Inventories 11,986 8,338
Prepaid expenses and other 10,604 16,044
Deferred income taxes   8,700     7,969  
Total current assets 187,506 162,830
Property and equipment, net 171,569 177,682
Goodwill 122,932 110,893
Other intangibles, net 44,821 38,353
Deferred loan costs, net 1,464 2,005
Other assets   1,487     1,846  
Total assets $ 529,779   $ 493,609  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 26,516 $ 20,079
Accrued compensation 23,601 25,474
Billings in excess of costs and estimated earnings
on uncompleted contracts 7,840 12,224
Accrued expenses and other 6,564 8,185
Current portion of deferred compensation 1,595 -

Current portion of insurance and claim accruals
  11,617     12,526  
Total current liabilities 77,733 78,488
Revolving credit facility 119,500 -
Long-term debt - 99,000
Insurance and claim accruals, net of current portion 4,905 6,621
Deferred compensation, net of current portion 5,383 6,140
Deferred income taxes 44,801 46,179
Other liabilities 2,915 2,792
Commitments and contingencies
Stockholders’ equity:

Preferred stock, par value $0.001 per share; 100,000 authorized

shares; no shares issued and outstanding
- -

Common stock, par value $0.001 per share; 100,000 authorized

shares; 35,040 and 33,666 shares issued and outstanding
at March 31, 2012 and June 30, 2011, respectively 6,428 6,427
Additional paid-in capital 172,076 161,586
Accumulated other comprehensive loss, net of taxes (35 ) (178 )
Retained earnings   96,073     86,554  
Total stockholders’ equity   274,542     254,389  
Total liabilities and stockholders’ equity $ 529,779   $ 493,609  

       
PIKE ELECTRIC CORPORATION
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited)
(In thousands)
 
Three months ended March 31, Nine months ended March 31,
2012 2011 2012 2011
Distribution and other $ 107,230 $ 82,684 $ 307,836 $ 257,131
Transmission 18,511 17,505 50,819 60,839
Engineering and substation   30,756   37,513   84,980   89,344
 
Core revenues $ 156,497 $ 137,702 $ 443,635 $ 407,314
Storm restoration revenues   6,269   16,123   62,953   23,832
 
Total revenues $ 162,766 $ 153,825 $ 506,588 $ 431,146

Copyright Business Wire 2010

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