Market Overview

Pike Reports Strong Revenue and Earnings Growth in Fiscal First Quarter 2013

Share:
MOUNT AIRY, N.C.--(BUSINESS WIRE)--

Pike Electric Corporation (NYSE: PIKE), one of the nation's leading energy solutions providers, today reported fiscal first quarter 2013 results for the period ended September 30, 2012. Total revenue in the first quarter was a record high $244.6 million, up 42% compared to $171.8 million in the year-ago period. Net income in the first quarter totaled $9.3 million, or $0.26 per diluted share. By comparison, net income totaled $2.6 million, or $0.07 per diluted share, in the year-ago period.

Total revenue included storm-related services of $50.2 million in the first quarter, compared to $34.8 million in the same quarter last year. Gross profit in the fiscal first quarter 2013 totaled $36.9 million, or 15.1% of revenue. By comparison, gross profit totaled $23.9 million, or 13.9% of revenue, in the year-ago period. General and administrative expenses totaled $19.5 million, or 8.0% of revenue. By comparison, general and administrative expenses totaled $16.0 million, or 9.3% of revenue, in the year-ago period.

As a result of the acquisition of UC Synergetic (“UCS”), the Company has adopted two reportable segments for financial reporting purposes: Construction and All Other Operations. Construction performs installation, maintenance and repair of power delivery systems, including storm restoration services. All Other Operations performs siting, permitting, engineering and design of power and telecommunications delivery systems, including storm assessment and inspection services.

Construction revenue totaled $203.4 million, up 30% compared to $156.0 million in the year-ago period. Income from operations in the Construction segment totaled $16.6 million, compared to $8.6 million in the year-ago period. All Other Operations revenue totaled a record high $41.2 million, up 161% compared to $15.8 million in the year-ago period. Income from operations in the All Other Operations segment totaled $2.1 million, compared to $(0.6) million in the year-ago period. The accompanying ‘segment results' table provides eliminations and other adjustments that reconcile the segment revenues and income from operations amounts to consolidated results.

“We had a tremendous start to our fiscal year 2013,” said J. Eric Pike, Chairman and CEO of Pike. “Our strong first quarter performance reflects the sustained growth trends in all areas of our construction business, the addition of UCS, plus a relatively high volume of storm restoration activity.”

Conference Call

The Company will host a conference call at 11:00 a.m. Eastern on Tuesday, November 6. The call can be accessed by dialing (888) 359-3627, or (719) 325-2495 for international callers. The confirmation code for the live call is 3855455. 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 3855455. The replay will remain available until midnight Eastern on November 13. 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 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 September 30,
 
2012 2011
 
Revenues $ 244,613 $ 171,791
Cost of operations   207,691     147,937  
 
Gross profit 36,922 23,854
General and administrative expenses 19,468 16,017
(Gain) loss on sale of property and equipment   (130 )   158  
 
Income from operations 17,584 7,679
Other expense (income):
Interest expense 2,123 3,493
Other, net   (21 )   (3 )
 
Total other expense   2,102     3,490  
 
Income before income taxes 15,482 4,189
Income tax expense   6,200     1,585  
 
Net income $ 9,282   $ 2,604  
 
Earnings per share:
Basic $ 0.26   $ 0.08  
Diluted $ 0.26   $ 0.07  
 
Shares used in computing earnings per share:
Basic   35,048     34,178  
Diluted   35,355     34,807  

PIKE ELECTRIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
       
September 30, June 30,
2012 2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,309 $ 1,601
Accounts receivable, net 129,078 91,059
Costs and estimated earnings in excess of billings
on uncompleted contracts 80,270 66,414
Inventories 13,554 15,348
Prepaid expenses and other 7,006 9,001
Deferred income taxes   7,868     9,722
Total current assets 239,085 193,145
Property and equipment, net 175,475 174,655
Goodwill 153,657 122,932
Other intangibles, net 81,366 43,617
Deferred loan costs, net 2,123 2,175
Other assets   2,195     1,624
Total assets $ 653,901   $ 538,148
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 31,224 $ 26,206
Accrued compensation 27,401 28,703
Billings in excess of costs and estimated earnings
on uncompleted contracts 4,364 5,318
Accrued expenses and other 14,861 7,551
Current portion of insurance and claim accruals   10,611     11,525
Total current liabilities 88,461 79,303
Revolving credit facility 207,500 123,000
Insurance and claim accruals, net of current portion 4,233 3,956
Deferred compensation 5,946 5,578
Deferred income taxes 58,085 46,749
Other liabilities 2,846 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; 35,114 and 35,052 shares issued and outstanding
at September 30, 2012 and June 30, 2012, respectively 6,428 6,428
Additional paid-in capital 173,762 173,060
Accumulated other comprehensive loss, net of taxes (79 ) -
Retained earnings   106,719     97,437
Total stockholders' equity   286,830     276,925
Total liabilities and stockholders' equity $ 653,901   $ 538,148

PIKE ELECTRIC CORPORATION
SEGMENT RESULTS
(Unaudited)
(In thousands)
   
Three months ended September 30,
 
2012 2011
Construction
Core services $ 156,478 $ 121,217
Less: Intercompany eliminations   (27 )   -  
 
Core services, net 156,451 121,217
Storm restoration services   46,973     34,792  
 
Revenues, net 203,424 156,009
Income from operations 16,580 8,589
Depreciation and amortization 9,071 9,278
Purchases of property and equipment 7,759 7,611
         
 
All Other Operations
Core services $ 49,003 $ 15,782
Less: Intercompany eliminations   (11,037 )   -  
 
Core services, net 37,966 15,782
Storm assessment and inspection services   3,223     -  
 
Revenues, net 41,189 15,782
Income (loss) from operations 2,074 (600 )
Depreciation and amortization 1,314 424
Purchases of property and equipment 348 -
         
 
Eliminations and Other Adjustments
Revenues $ - $ -
Loss from operations (1,070 ) (310 )
Depreciation and amortization - -
Purchases of property and equipment - -
         
 
Total
Core services $ 205,481 $ 136,999
Less: Intercompany eliminations   (11,064 )   -  
 
Core services, net 194,417 136,999
Storm-related services   50,196     34,792  
 
Revenues, net 244,613 171,791
Income from operations 17,584 7,679
Depreciation and amortization 10,385 9,702
Purchases of property and equipment 8,107 7,611

Pike Electric Corporation
Investor Relations Contact, 336-719-4622
IR@pike.com

View Comments and Join the Discussion!