Pike Reports 23% Revenue Growth and 33% EPS Growth in Fiscal Third Quarter

Pike Reports 23% Revenue Growth and 33% EPS Growth in Fiscal Third Quarter

MOUNT AIRY, N.C.--(BUSINESS WIRE)-- Pike Electric Corporation (NYSE: PIKE  ) , one of the nation’s leading energy solutions providers, today reported fiscal third quarter 2013 results for the period ended March 31, 2013. Total revenue in the third quarter 2013 was $200.2 million, up 23% compared to $162.8 million in the year-ago period. Net income in the third quarter 2013 totaled $2.7 million, or $0.08 per diluted share. In the year-ago period, net income totaled $2.0 million, or $0.06 per diluted share.

Total revenue in the fiscal third quarter 2013 included storm-related services of $25.4 million, compared to $6.3 million in the same quarter last year. Gross profit totaled $25.0 million, compared to $20.5 million in the year-ago period. General and administrative expenses totaled $18.7 million, compared to $16.2 million in the year-ago period.

“We continue to be pleased with the success of our diversification strategy and growth. Transmission and substation continue their positive trends and engineering services now generate over 18 percent of our core revenue,” said J. Eric Pike, Chairman and CEO of Pike. “Although our third quarter results were significantly affected by reduced construction productivity in our mid-Atlantic and southeastern territory due to snow and extremely wet weather conditions, investments in training, and expansion costs for Pine Valley Power and UCS, we remain on track for a record year and our actions this quarter will aid in our future growth.”

The Company has adopted two reportable segments for financial reporting purposes: Construction and All Other Operations. The accompanying ‘segment results’ table provides eliminations and other adjustments that reconcile the segment revenues and income from operations amounts to consolidated results.

Construction revenue totaled $166.7 million, up 16% compared to $144.4 million in the year-ago period. Income from operations in the Construction segment totaled $5.2 million, compared to $3.8 million in the year-ago period. All Other Operations revenue totaled $33.5 million, up 82% compared to $18.4 million in the year-ago period. Income from operations in the All Other Operations segment totaled $1.3 million, compared to $1.5 million in the year-ago period.

Conference Call

The Company will host a conference call at 11:00 a.m. Eastern on Tuesday, May 7. The call can be accessed by dialing (888) 572-7025, or (719) 325-2463 for international callers. The confirmation code for the live call is 6315376. 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 6315376. The replay will remain available until midnight Eastern on May 14. An on-demand replay of the conference call will remain 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 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 INCOME
(Unaudited)
(In thousands, except per share amounts)
                   
Three months ended March 31, Nine months ended March 31,
 
2013 2012 2013 2012
 
Revenues $ 200,222 $ 162,766 $ 718,503 $ 506,588
Cost of operations   175,177     142,228     597,302     436,782  
 
Gross profit 25,045 20,538 121,201 69,806
General and administrative expenses 18,704 16,220 58,063 48,096
Gain on sale of property and equipment   (147 )   (406 )   (345 )   (288 )
 
Income from operations 6,488 4,724 63,483 21,998
Other expense (income):
Interest expense 1,679 1,179 5,686 6,017
Other, net   (5 )   (15 )   (30 )   (28 )
 
Total other expense, net   1,674     1,164     5,656     5,989  
 
Income before income taxes 4,814 3,560 57,827 16,009
Income tax expense   2,121     1,536     22,250     6,490  
 
Net income $ 2,693   $ 2,024   $ 35,577   $ 9,519  
 
Earnings per share:
Basic $ 0.08   $ 0.06   $ 1.01   $ 0.28  
Diluted $ 0.08   $ 0.06   $ 1.01   $ 0.27  
 
Shares used in computing earnings per share:
Basic   35,219     34,869     35,132     34,569  
Diluted   35,663     35,241     35,363     35,066  
 
Dividends per share: $ -   $ -   $ 1.00   $ -  

PIKE ELECTRIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
 
March 31, June 30,
2013 2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 5,970 $ 1,601
Accounts receivable, net 118,488 91,059
Costs and estimated earnings in excess of billings
on uncompleted contracts 67,592 66,414
Inventories 15,153 15,348
Prepaid expenses and other 8,062 9,001
Deferred income taxes   9,327     9,722
Total current assets 224,592 193,145
Property and equipment, net 176,326 174,655
Goodwill 153,657 122,932
Other intangibles, net 77,002 43,617
Deferred loan costs, net 1,747 2,175
Other assets   2,122     1,624
Total assets $ 635,446   $ 538,148
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 27,399 $ 26,206
Accrued compensation 28,912 28,703
Billings in excess of costs and estimated earnings
on uncompleted contracts 11,074 5,318
Accrued expenses and other 12,012 7,551
Current portion of insurance and claim accruals   13,640     11,525
Total current liabilities 93,037 79,303
Revolving credit facility 191,000 123,000
Insurance and claim accruals, net of current portion 5,252 3,956
Deferred compensation 6,157 5,578
Deferred income taxes 57,193 46,749
Other liabilities 2,895 2,637
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; 35,291 and 35,052 shares issued and outstanding
at March 31, 2013 and June 30, 2012, respectively 6,428 6,428
Additional paid-in capital 175,758 173,060
Accumulated other comprehensive loss, net of taxes (124 ) -
Retained earnings   97,850     97,437
Total stockholders’ equity   279,912     276,925
Total liabilities and stockholders’ equity $ 635,446   $ 538,148

PIKE ELECTRIC CORPORATION
SEGMENT RESULTS
(Unaudited)
(In thousands)
               
Three months ended March 31, Nine months ended March 31,
 
2013 2012 2013 2012

Construction

Core services $ 143,215 $ 138,180 $ 449,634 $ 400,201
Less: Intersegment revenues   (531 )   (45 )   (769 )   (6,396 )
 
Core services, net 142,684 138,135 448,865 393,805
Storm restoration services   24,034     6,269     149,629     62,953  
 
Revenues, net 166,718 144,404 598,494 456,758
Income from operations 5,246 3,849 60,153 21,547
Depreciation and amortization 8,558 9,323 27,307 28,079
Purchases of property and equipment 9,747 6,514 26,904 21,841
                         
 

All Other Operations

Core services $ 40,530 $ 19,616 $ 140,843 $ 53,091
Less: Intersegment revenues   (8,458 )   (1,254 )   (29,872 )   (3,261 )
 
Core services, net 32,072 18,362 110,971 49,830
Storm assessment and inspection services   1,432     -     9,038     -  
 
Revenues, net 33,504 18,362 120,009 49,830
Income from operations 1,344 1,491 5,306 1,606
Depreciation and amortization 1,341 148 4,044 822
Purchases of property and equipment 142 - 689 -
                         
 

Eliminations and Other Adjustments

Revenues $ - $ - $ - $ -
Loss from operations (102 ) (616 ) (1,976 ) (1,155 )
Depreciation and amortization - - - -
Purchases of property and equipment - - - -
                         
 

Total

Core services $ 183,745 $ 157,796 $ 590,477 $ 453,292
Less: Intersegment revenues   (8,989 )   (1,299 )   (30,641 )   (9,657 )
 
Core services, net 174,756 156,497 559,836 443,635
Storm-related services   25,466     6,269     158,667     62,953  
 
Revenues, net 200,222 162,766 718,503 506,588
Income from operations 6,488 4,724 63,483 21,998
Depreciation and amortization 9,899 9,471 31,351 28,901
Purchases of property and equipment 9,889 6,514 27,593 21,841
 

PIKE ELECTRIC CORPORATION
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited)
(In thousands)
                   

Three months ended March 31,

Nine months ended March 31,
2013 2012 2013 2012

Construction Segment

Distribution and other $ 104,730 $ 107,230 $ 336,859 $ 307,835
Transmission 23,000 18,511 70,282 50,819
Substation 14,954 12,394 41,724 35,151
 
Core services, net $ 142,684 $ 138,135 $ 448,865 $ 393,805
Storm restoration services 24,034 6,269 149,629 62,953
 
Revenues, net $ 166,718 $ 144,404 $ 598,494 $ 456,758
 

All Other Operations Segment

Core services, net $ 32,072 $ 18,362 $ 110,971 $ 49,830
Storm assessment and inspection services 1,432 - 9,038 -
 
Revenues, net $ 33,504 $ 18,362 $ 120,009 $ 49,830



Pike Electric Corporation
Investor Relations:
Frank Milano, 336-719-4622
IR@pike.com

KEYWORDS:   United States  North America  North Carolina

INDUSTRY KEYWORDS:

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