Pike Corporation Reports Fiscal Second Quarter 2014 Results

MOUNT AIRY, N.C., Feb. 4, 2014 (GLOBE NEWSWIRE) -- Pike Corporation (NYSE:PIKE), one of the nation's largest specialty construction and engineering firms serving the electric power industry, today reported fiscal second quarter 2014 results for the period ended December 31, 2013. Total revenue in the second quarter 2014 was $210.9 million, down 23% compared to the record high revenue of $273.7 million in the year-ago period. Net income in the second quarter 2014 totaled $5.7 million compared to net income of $23.6 million in the year-ago period. Diluted earnings per share totaled $0.18 in the second quarter 2014, compared to the record high $0.67 in the year-ago period.

Total core construction revenue in the second quarter 2014 increased 5% to $156.7 million from $149.8 million in the year ago period. Total core engineering revenue decreased to $31.6 million in the second quarter 2014 as compared to $40.9 million in the second quarter of 2013. Total storm-related revenue in the second quarter 2014 of $22.6 million resulted from scattered ice storms. By comparison, storm-related services totaled $83.0 million in the year-ago period, primarily due to the devastating impact of Hurricane Sandy.

"Fiscal second quarter financial comparisons against the year-ago period are challenging, largely due to the significant amount of storm revenue that resulted from Hurricane Sandy. We are continuing our solid momentum in our transmission business and remain focused on growth opportunities in distribution services," said J. Eric Pike, Chairman and CEO of Pike. "We are currently working to finalize the integration of our engineering business under the UC Synergetic brand and refocus our efforts to continue growing the engineering services business."

Conference Call

The Company will host a conference call at 9:00 a.m. Eastern on Wednesday, February 5. The call can be accessed by dialing (888) 438-5448, or (719) 325-2432 for international callers. The confirmation code for the live call is 3125672. 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 3125672. The dial-in replay will remain available until midnight Eastern on February 12. An on-demand replay of the webcast will remain online for a limited time following the conclusion of the call.

About Pike Corporation

Pike Corporation, formerly known as Pike Electric Corporation, is one of the nation's largest specialty construction and engineering firms serving 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 CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
         
  Three months ended December 31,  Six months ended December 31,
  2013 2012 2013 2012
         
Revenues   $ 210,859  $ 273,668  $ 404,166  $ 518,281
Cost of operations   179,947  214,434  353,358  422,125
         
Gross profit  30,912  59,234  50,808  96,156
General and administrative expenses   19,820  19,891  37,228  39,359
Gain on sale of property and equipment  (86)  (68)  (401)  (198)
         
Income from operations   11,178  39,411  13,981  56,995
Other expense (income):        
Interest expense   1,911  1,884  3,718  4,007
Other, net   (235)  (4)  (244)  (25)
         
Total other expense  1,676  1,880  3,474  3,982
         
Income before income taxes   9,502  37,531  10,507  53,013
Income tax expense  3,842  13,929  3,888  20,129
         
Net income  $ 5,660  $ 23,602  $ 6,619  $ 32,884
         
Earnings per share:        
Basic   $ 0.18  $ 0.67  $ 0.21  $ 0.94
Diluted   $ 0.18  $ 0.67  $ 0.21  $ 0.93
         
Weighted average shares used in computing earnings per share:        
Basic  31,785  35,129  31,769  35,089
Diluted  32,207  35,423  32,207  35,360
         
Dividends per share:  $ --   $ 1.00  $ --   $ 1.00
 
 
PIKE CORPORATION 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
     
  December 31, June 30,
  2013 2013
  (Unaudited)  
     
ASSETS    
Current assets:    
Cash and cash equivalents   $ 2,432  $ 2,578
Accounts receivable, net   95,988  104,585
Costs and estimated earnings in excess of billings on uncompleted contracts  76,963  71,248
Inventories   16,124  14,396
Prepaid expenses and other   9,211  9,914
Deferred income taxes   5,652  8,720
Total current assets   206,370  211,441
Property and equipment, net   186,029  179,928
Goodwill   153,668  153,668
Other intangibles, net   71,155  74,841
Deferred loan costs, net   1,599  1,561
Other assets   2,977  2,335
Total assets   $ 621,798  $ 623,774
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities:    
Accounts payable  $ 28,383  $ 33,500
Accrued compensation  23,698  30,468
Billings in excess of costs and estimated earnings on uncompleted contracts  12,255  6,235
Accrued expenses and other  10,363  5,908
Current portion of insurance and claim accruals  6,154  12,121
Total current liabilities   80,853  88,232
Revolving credit facility  220,500  221,000
Insurance and claim accruals, net of current portion  4,529  4,958
Deferred compensation  7,205  6,431
Deferred income taxes   54,536  58,402
Other liabilities   3,552  2,916
Commitments and contingencies    
Shareholders' 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;    
31,811 and 31,719 shares issued and outstanding at December 31, 2013 and June 30, 2013, respectively   6,425  6,424
Additional paid-in capital   179,222  176,988
Accumulated other comprehensive loss, net of taxes  (113)  (47)
Retained earnings  65,089  58,470
Total shareholders' equity   250,623  241,835
Total liabilities and shareholders' equity   $ 621,798  $ 623,774
 
 
PIKE CORPORATION 
SEGMENT RESULTS
(Unaudited)
(In thousands)
         
  Three months ended December 31,  Six months ended December 31,
  2013 2012 2013 2012
Construction        
Core services  $ 156,718  $ 149,941  $ 310,889  $ 306,419
Less: Intersegment revenues  (18)  (211)  (130)  (238)
         
Core services, net  156,700  149,730  310,759  306,181
Storm restoration services  22,039  78,622  25,453  125,595
         
Revenues, net  178,739  228,352  336,212  431,776
Income from operations  11,684  38,327  12,998  54,907
Depreciation and amortization  8,789  9,678  17,475  18,749
Purchases of property and equipment  11,000  9,398  23,127  17,157
 
         
Engineering        
Core services  $ 38,724  $ 51,310  $ 87,696  $ 100,313
Less: Intersegment revenues  (7,133)  (10,377)  (20,492)  (21,414)
         
Core services, net  31,591  40,933  67,204  78,899
Storm assessment and inspection services  529  4,383  750  7,606
         
Revenues, net  32,120  45,316  67,954  86,505
(Loss) income from operations  (395)  1,888  1,176  3,962
Depreciation and amortization  1,295  1,389  2,607  2,703
Purchases of property and equipment  127  199  251  547
 
         
Eliminations and Other Adjustments        
Revenues  $ --   $ --   $ --   $ -- 
Loss from operations  (111)  (804)  (193)  (1,874)
Depreciation and amortization  --   --   --   -- 
Purchases of property and equipment  --   --   --   -- 
 
         
Total        
Core services  $ 195,442  $ 201,251  $ 398,585  $ 406,732
Less: Intersegment revenues  (7,151)  (10,588)  (20,622)  (21,652)
         
Core services, net  188,291  190,663  377,963  385,080
Storm-related services  22,568  83,005  26,203  133,201
         
Revenues, net  210,859  273,668  404,166  518,281
Income from operations  11,178  39,411  13,981  56,995
Depreciation and amortization  10,084  11,067  20,082  21,452
Purchases of property and equipment  11,127  9,597  23,378  17,704
 
 
PIKE CORPORATION 
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited)
(In thousands)
         
  Three months ended December 31,  Six months ended December 31,
  2013 2012 2013 2012
Construction Segment        
Distribution and other  $ 112,850  $ 111,591  $ 228,299  $ 232,129
Transmission and substation  43,850  38,139  82,460  74,052
         
Core services, net  $ 156,700  $ 149,730  $ 310,759  $ 306,181
Storm restoration services  22,039  78,622  25,453  125,595
         
Revenues, net  $ 178,739  $ 228,352  $ 336,212  $ 431,776
         
Engineering Segment        
Core services, net  $ 31,591  $ 40,933  $ 67,204  $ 78,899
Storm assessment and inspection services  529  $ 4,383  750  7,606
         
Revenues, net  $ 32,120  $ 45,316  $ 67,954  $ 86,505
         
Consolidated        
Core services, net  $ 188,291  $ 190,663  $ 377,963  $ 385,080
Storm-related services  22,568  83,005  26,203  133,201
         
Revenues, net  $ 210,859  $ 273,668  $ 404,166  $ 518,281
CONTACT: Investor Relations Contact:         Frank Milano         (336) 719-4622         IR@pike.com

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