Pike Reports Record Full Year Core Revenue

Pike Electric Corporation (NYSE: PIKE), one of the nation’s leading energy solutions providers, today reported fiscal fourth quarter and full year results for the period ended June 30, 2012. In the fourth quarter of fiscal year 2012, revenue totaled $178.6 million, an increase of 10% compared to $162.7 million in the year-ago period. Net income totaled $1.4 million, or $0.04 per diluted share, compared to $2.1 million, or $0.06 per diluted share, in the year-ago period.

Core services revenue increased for the fourth consecutive quarter to $171.0 million, up 40% compared to $122.0 million in the year-ago period. Strong year-over-year revenue growth rates were achieved in each of the Company’s core services, with distribution and other revenue up 46%, transmission revenue up 25%, and engineering and substation revenue up 35%. Storm restoration revenue totaled $7.6 million, compared to $40.7 million in the year-ago period. Last year’s heightened level of storm revenue was primarily associated with the massive tornadoes that tore through Alabama and Tennessee.

“The sustained growth in all areas of our engineering and construction business reflects improving demand trends across the U.S.,” said J. Eric Pike, Chairman and CEO of Pike. “The recent acquisition of UC Synergetic is expected to build upon this momentum in core energy solutions, will add to our storm response capabilities, and provides us with an engineering platform to serve the communications industry.”

Gross profit totaled $21.9 million in the fiscal fourth quarter 2012, or 12.3% of revenue. Gross profit totaled $23.2 million in the fiscal fourth quarter last year, or 14.2% of revenue. The higher gross margin in the year-ago period was attributable to the significant volume of storm restoration activity.

Fiscal year 2012 revenue totaled $685.2 million, an increase of 15% compared to $593.9 million in fiscal year 2011. Net income totaled $10.9 million, or $0.31 per diluted share, compared to $1.4 million, or $0.04 per diluted share in fiscal year 2011.

Core services revenue totaled $614.6 million in fiscal year 2012, up 16% compared to $529.3 million in fiscal year 2011. Storm restoration revenue totaled $70.6 million in fiscal year 2012, up 9% from $64.5 million in the prior year.

Mr. Pike remarked that, “The improvement in our full year 2012 results was primarily driven by growth in distribution revenue, which increased 26% year-over-year. With our current mix of engineering and construction services, particularly in the Western U.S., we expect more balanced growth across our full spectrum of core services in the future.”

Gross profit totaled $91.7 million in fiscal year 2012, up from $67.9 million in fiscal year 2011. As a percent of revenue, gross margin totaled 13.4% this year, up 200 basis points from 11.4% last year. The improved gross margin in 2012 reflects increased volume in the Company’s distribution business, increased storm revenues and improved margin percentages in all core services.

About Pike Electric Corporation

Pike Electric Corporation is a leading provider of energy solutions to over 300 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 electric and communication infrastructure. 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 June 30, Twelve months ended June 30,
2012 2011 2012 2011
Revenues $ 178,581 $ 162,712 $ 685,169 $ 593,858
Cost of operations   156,697     139,538     593,478     525,915  
 
Gross profit 21,884 23,174 91,691 67,943
General and administrative expenses 18,123 17,498 66,219 57,675
(Gain) loss on sale of property and equipment   (338 )   226     (626 )   751  
 
Income from operations 4,099 5,450 26,098 9,517
Other expense (income):
Interest expense 1,287 1,514 7,304 6,608
Other, net   (36 )   (17 )   (63 )   (55 )
 
Total other expense   1,251     1,497     7,241     6,553  
 
Income before income taxes 2,848 3,953 18,857 2,964
Income tax expense   1,484     1,903     7,974     1,563  
 
Net income $ 1,364   $ 2,050   $ 10,883   $ 1,401  
 
Earnings per share:
Basic $ 0.04   $ 0.06   $ 0.31   $ 0.04  
Diluted $ 0.04   $ 0.06   $ 0.31   $ 0.04  
 
Shares used in computing earnings per share:
Basic   35,009     33,492     34,678     33,399  
Diluted   35,251     34,149     35,111     33,996  

 
PIKE ELECTRIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
                 
June 30 June 30,
2012 2011
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,601 $   311
Accounts receivable from customers, net 91,059 80,902
Costs and estimated earnings in excess of billings
on uncompleted contracts 66,414 49,266
Inventories 15,348 8,338
Prepaid expenses and other 9,001 16,044
Deferred income taxes   9,722     7,969  
Total current assets 193,145 162,830
Property and equipment, net 174,655 177,682
Goodwill 122,932 110,893
Other intangibles, net 43,617 38,353
Deferred loan costs, net 2,175 2,005
Other assets   1,624     1,846  
Total assets $ 538,148 $   493,609  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 26,206 $ 20,079
Accrued compensation 28,703 25,474
Billings in excess of costs and estimated earnings
on uncompleted contracts 5,318 12,224
Accrued expenses and other 7,551 8,185
Current portion of insurance and claim accruals   11,525     12,526  
Total current liabilities 79,303 78,488
Revolving credit facility 123,000 -
Long-term debt - 99,000
Insurance and claim accruals, net of current portion 3,956 6,621
Deferred compensation, net of current portion 5,578 6,140
Deferred income taxes 46,749 46,179
Other liabilities 2,637 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; 35,052 and 33,666 shares issued and outstanding
at June 30, 2012 and June 30, 2011, respectively 6,428 6,427
Additional paid-in capital 173,060 161,586
Accumulated other comprehensive loss, net of taxes - (178 )
Retained earnings   97,437     86,554  
Total stockholders’ equity   276,925     254,389  
Total liabilities and stockholders’ equity $ 538,148 $   493,609  

 
PIKE ELECTRIC CORPORATION
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited)
(In thousands)
                           
Three months ended June 30, Twelve months ended June 30,
2012 2011 2012 2011
Distribution and other $ 110,944 $ 76,230 $ 418,780 $ 333,360
Transmission 21,717 17,354 72,536 78,194
Engineering and substation   38,326   28,437   123,307   117,781
 
Core revenues $ 170,987 $ 122,021 $ 614,623 $ 529,335
Storm restoration revenues   7,594   40,691   70,546   64,523
 
Total revenues $ 178,581 $ 162,712 $ 685,169 $ 593,858

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