Market Overview

Pike Corporation Reports Fourth Quarter and Full Year 2014 Results

Share:

MOUNT AIRY, N.C., Sept. 10, 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 fourth quarter and full year 2014 results for the period ended June 30, 2014. Total revenue in the fourth quarter 2014 was $198.9 million, down 1% compared to $200.2 million in the year-ago period. Net income in the fourth quarter 2014 totaled $4.2 million or $0.13 per diluted share, compared to $0.6 million or $0.02 per diluted share in the year-ago period.

Net income in the fourth quarter 2014 included fees and expenses of $1.0 million (pre-tax), or $0.03 per diluted share, related to the merger agreement to take the Company private announced August 4, 2014. Net income in the fourth quarter 2013 included fees and expenses of $2.9 million (pre-tax), or $0.07 per diluted share, related to the secondary equity offering and concurrent share repurchase completed in May 2013.

Core construction revenue in the fourth quarter 2014 totaled $144.3 million, down 8% from $156.1 million in the year-ago period. Core engineering revenue totaled a record high $47.1 million in the fourth quarter 2014, up 33% compared to $35.4 million in the year-ago period. Total storm-related revenue in the fourth quarter 2014 was $7.5 million, compared to $8.7 million in the year-ago period.

Full Year 2014

Total revenue for the fiscal year ended June 30, 2014 was $810.6 million, down 12% compared to the record high $918.7 million in fiscal year 2013. Net income totaled $13.7 million or $0.42 per diluted share, compared to the record high $36.2 million or $1.03 per diluted share in fiscal year 2013.

Net income in fiscal year 2014 included fees and expenses of $1.0 million (pre-tax), or $0.03 per diluted share, related to the merger agreement to take the Company private announced August 4, 2014. Net income in fiscal year 2013 included fees and expenses of $4.1 million (pre-tax), or $0.10 per diluted share, related to the secondary equity offering and concurrent share repurchase completed during the year.

Core services revenue totaled $743.2 million, down 1% compared to the record high $751.4 million in fiscal year 2013. Total storm-related revenue was $67.4 million, compared to $167.3 million in fiscal year 2013. Last year's storm revenue was the second highest in the Company's history.

Conference Call

No conference call is scheduled to accompany this release.

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

Any statements in this press release about prospective performance and plans for the Company, the expected timing of the completion of the proposed merger and the ability to complete the proposed merger, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will" and similar expressions, other than historical facts, constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Factors or risks that could cause the Company's actual results to differ materially from the results the Company anticipates include, but are not limited to: (i) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (ii) the inability to complete the proposed merger due to the failure to obtain shareholder approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger; (iii) the failure to obtain the necessary financing arrangements as set forth in the debt and equity commitment letters delivered pursuant to the merger agreement; (iv) risks related to disruption of management's attention from the Company's ongoing business operations due to the transaction; (v) the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted against the Company and others relating to the merger agreement; (vi) the risk that the pendency of the proposed merger disrupts current plans and operations and the potential difficulties in employee retention as a result of the pendency of the proposed merger; (vii) the effect of the announcement of the proposed merger on the Company's relationships with its customers, operating results and business generally; and (viii) the amount of the costs, fees, expenses and charges related to the proposed merger. Additional factors that may cause results to differ materially from those described in the forward-looking statements are set forth in the Company's Annual Report on Form 10–K for the fiscal year ended June 30, 2013, which was filed with the SEC on September 4, 2013, under the heading "Item 1A. Risk Factors," and in subsequently filed Forms 10-Q and 8-K. The forward-looking statements represent the Company's views as of the date on which such statements were made and the Company undertakes no obligation to publicly update such forward looking statements.

Additional Information and Where to Find It

In connection with the proposed merger transaction, the Company anticipates filing with the SEC a preliminary proxy statement and other documents relating to the proposed merger. When completed, a definitive proxy statement and a form of proxy will be filed with the SEC and mailed to the Company's shareholders. Shareholders are urged to read the definitive proxy statement when it becomes available and any other documents to be filed with the SEC in connection with the proposed merger or incorporated by reference in the proxy statement because they will contain important information about the proposed merger.

Investors will be able to obtain a free copy of documents filed with the SEC at the SEC's website at http://www.sec.gov. In addition, investors may obtain a free copy of the Company's filings with the SEC from the Company's website, www.pike.com or by directing a request to: Pike Corporation, 100 Pike Way, PO 868, Mount Airy, NC 27030, Attn: Investor Relations.

The Company and its directors, executive officers and certain other members of management and employees of the Company may be deemed "participants" in the solicitation of proxies from shareholders of the Company in favor of the proposed merger. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the shareholders of the Company in connection with the proposed merger and their direct or indirect interests, by security holdings or otherwise, which may be different from those of the Company's stockholders generally, will be set forth in the proxy statement and the other relevant documents to be filed with the SEC. You can find information about the Company's executive officers and directors in its Annual Report on Form 10-K for the fiscal year ended June 30, 2013 and in its definitive proxy statement filed with the SEC on Schedule 14A on September 17, 2013.

PIKE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
         
  Three Months Ended June 30,  Twelve Months Ended June 30,
  2014 2013 2014 2013
         
Revenues   $ 198,911  $ 200,188  $ 810,660  $ 918,691
Cost of operations   172,234  174,173  706,929  771,475
Gross profit  26,677  26,015  103,731  147,216
General and administrative expenses   18,440  18,712  74,894  75,579
Secondary offering and other related costs  --   2,942  --   4,138
Gain on sale of property and equipment  (1,270)  (239)  (1,968)  (584)
Income from operations   9,507  4,600  30,805  68,083
Other expense (income):        
Interest expense   2,284  1,698  8,187  7,384
Other, net   (99)  (97)  (349)  (127)
Total other expense  2,185  1,601  7,838  7,257
Income before income taxes   7,322  2,999  22,967  60,826
Income tax expense  3,106  2,383  9,304  24,633
Net income  $ 4,216  $ 616  $ 13,663  $ 36,193
         
Earnings per share:        
Basic   $ 0.13  $ 0.02  $ 0.43  $ 1.04
Diluted   $ 0.13  $ 0.02  $ 0.42  $ 1.03
         
Weighted average shares used in computing earnings per share:        
Basic  31,917  33,707  31,830  34,777
Diluted  32,203  34,289  32,191  35,057
         
Dividends per share:  $ --   $ --   $ --   $ 1.00
         
PIKE CORPORATION 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
     
  June 30, June 30,
  2014 2013
  (Unaudited)  
     
ASSETS    
Current assets:    
Cash and cash equivalents   $ 989  $ 2,578
Accounts receivable, net   96,850  104,585
Costs and estimated earnings in excess of billings on uncompleted contracts  85,563  71,248
Inventories   12,373  14,396
Prepaid expenses and other   7,029  9,914
Deferred income taxes   10,304  8,720
Total current assets   213,108  211,441
Property and equipment, net   177,743  179,928
Goodwill   153,668  153,668
Other intangibles, net   67,463  74,841
Deferred loan costs, net   1,111  1,561
Other assets   3,059  2,335
Total assets   $ 616,152  $ 623,774
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities:    
Accounts payable  $ 34,961  $ 33,500
Accrued compensation  26,697  30,468
Billings in excess of costs and estimated earnings on uncompleted contracts  6,007  6,235
Accrued expenses and other  10,269  5,908
Current portion of insurance and claim accruals  10,372  12,121
Total current liabilities   88,306  88,232
Revolving credit facility  197,000  221,000
Insurance and claim accruals, net of current portion  4,720  4,958
Deferred compensation  7,415  6,431
Deferred income taxes   56,392  58,402
Other liabilities   3,625  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; 31,939 and 31,719 shares issued and outstanding at June 30, 2014 and June 30, 2013, respectively   6,425  6,424
Additional paid-in capital   180,255  176,988
Accumulated other comprehensive loss, net of taxes  (119)  (47)
Retained earnings  72,133  58,470
Total shareholders' equity   258,694  241,835
Total liabilities and shareholders' equity   $ 616,152  $ 623,774
     
PIKE CORPORATION 
SEGMENT RESULTS
(Unaudited)
(In thousands)
         
  Three Months Ended June 30,  Twelve Months Ended June 30,
  2014 2013 2014 2013
Construction        
Core services  $ 144,352  $ 156,032  $ 592,095  $ 605,666
Less: Intersegment revenues  (19)  112  (345)  (657)
Core services, net  144,333  156,144  591,750  605,009
Storm restoration services  7,283  8,236  64,810  157,865
Revenues, net  151,616  164,380  656,560  762,874
Income from operations  8,215  8,995  27,460  69,148
Depreciation and amortization  8,400  8,855  34,390  36,162
Purchases of property and equipment  1,788  12,601  30,756  39,505
 
         
Engineering        
Core services  $ 53,673  $ 42,933  $ 184,136  $ 183,775
Less: Intersegment revenues  (6,603)  (7,548)  (32,657)  (37,420)
Core services, net  47,070  35,385  151,479  146,355
Storm assessment and inspection services  225  423  2,621  9,462
Revenues, net  47,295  35,808  154,100  155,817
Income (loss) from operations  1,495  (253)  3,849  5,053
Depreciation and amortization  1,238  1,225  5,113  5,269
Purchases of property and equipment  888  161  1,468  850
 
         
Eliminations and Other Adjustments        
Revenues  $ --   $ --   $ --   $ -- 
Loss from operations  (203)  (4,142)  (504)  (6,118)
Depreciation and amortization  --   --   --   -- 
Purchases of property and equipment  --   --   --   -- 
 
         
Total        
Core services  $ 198,025  $ 198,965  $ 776,231  $ 789,441
Less: Intersegment revenues  (6,622)  (7,436)  (33,002)  (38,077)
Core services, net  191,403  191,529  743,229  751,364
View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com