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Pike Electric Corporation Reports Fiscal First Quarter 2014 Results

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MOUNT AIRY, N.C., Nov. 4, 2013 (GLOBE NEWSWIRE) -- Pike Electric Corporation (NYSE:PIKE), one of the nation's leading energy solutions providers, today reported fiscal first quarter 2014 results for the period ended September 30, 2013. Total revenue in the first quarter 2014 was $193.3 million, down 21.0% compared to $244.6 million in the year-ago period. Net income in the first quarter 2014 totaled $1.0 million or $0.03 per diluted share, compared to net income of $9.3 million or $0.26 per diluted share in the year-ago period.

Total revenue in the first quarter 2014 consisted of core construction and engineering revenue of $189.7 million and storm-related services of $3.6 million. In the year-ago period, core construction and engineering revenue totaled $194.4 million and storm-related services totaled $50.2 million.

"Storm activity accounts for the vast majority of the difference between this quarter's results and last year's record first quarter performance. We experienced unusually low storm activity this quarter totaling $3.6 million versus $50.2 million of storm activity last year that included Hurricane Isaac and the derecho windstorm. We also had several large solar projects in process when we generated a 29% organic core growth rate during the first quarter of last year," said J. Eric Pike, Chairman and CEO of Pike. "Our core business declined 2% compared to that prior record, primarily reflecting lower solar construction revenue during the first quarter 2014."

Gross profit in the first quarter 2014 totaled $19.9 million or 10.3% of revenue, compared to $36.9 million, or 15.1% of revenue in the year-ago period. This decrease in gross profit resulted from three areas. First, we experienced significantly lower storm revenue during the quarter. Second, we made investments to fund our organic growth in the western U.S. and third, we experienced losses in five specific jobs in California for two new customers during the quarter. These investments totaled $0.02 per diluted share and the jobs negatively impacting our earnings totaled $0.04 per diluted share. These jobs will be completed in the fiscal second quarter.

General and administrative expenses in the first quarter 2014 totaled $17.4 million or 9.0% of revenue, compared to $19.5 million or 8.0% of revenue in the year-ago period.

Looking ahead, the year-over-year comparisons in our core business will improve each of the next several quarters. However, the storm revenue comparison will be even more difficult next quarter. Hurricane Sandy contributed significantly to storm revenue of $83.0 million in the Company's fiscal second quarter 2013 results.

Conference Call

The Company will host a conference call at 9:00 a.m. Eastern on Tuesday, November 5. The call can be accessed by dialing (877) 397-0292, or (719) 325-4785 for international callers. The confirmation code for the live call is 3393800. 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 3393800. The dial-in replay will remain available until midnight Eastern on November 12. An on-demand replay of the webcast 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 September 30,
2013 2012
Revenues $ 193,307 $ 244,613
Cost of operations 173,411 207,691
Gross profit 19,896 36,922
General and administrative expenses 17,408 19,468
Gain on sale of property and equipment (315) (130)
Income from operations 2,803 17,584
Other expense (income):
Interest expense 1,807 2,123
Other, net (9) (21)
Total other expense 1,798 2,102
Income before income taxes 1,005 15,482
Income tax expense 46 6,200
Net income $ 959 $ 9,282
Earnings per share:
Basic $ 0.03 $ 0.26
Diluted $ 0.03 $ 0.26
Weighted average shares used in computing earnings per share:
Basic 31,753 35,048
Diluted 32,273 35,355
PIKE ELECTRIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
September 30, June 30,
2013 2013
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 2,915 $ 2,578
Accounts receivable, net 90,830 104,585
Costs and estimated earnings in excess of billings on uncompleted contracts 76,011 71,248
Inventories 16,741 14,396
Prepaid expenses and other 8,897 9,914
Deferred income taxes 4,542 8,720
Total current assets 199,936 211,441
Property and equipment, net 183,374 179,928
Goodwill 153,668 153,668
Other intangibles, net 72,996 74,841
Deferred loan costs, net 1,375 1,561
Other assets 2,832 2,335
Total assets $ 614,181 $ 623,774
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 32,975 $ 33,500
Accrued compensation 24,447 30,468
Billings in excess of costs and estimated earnings on uncompleted contracts 9,210 6,235
Accrued expenses and other 5,649 5,908
Current portion of insurance and claim accruals 7,976 12,121
Total current liabilities 80,257 88,232
Revolving credit facility 220,000 221,000
Insurance and claim accruals, net of current portion 4,311 4,958
Deferred compensation 6,997 6,431
Deferred income taxes 55,440 58,402
Other liabilities 3,110 2,916
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; 31,775 and 31,719 shares issued and outstanding at September 30, 2013 and June 30, 2013, respectively 6,425 6,424
Additional paid-in capital 178,326 176,988
Accumulated other comprehensive loss, net of taxes (114) (47)
Retained earnings 59,429 58,470
Total stockholders' equity 244,066 241,835
Total liabilities and stockholders' equity $ 614,181 $ 623,774
PIKE ELECTRIC CORPORATION
SEGMENT RESULTS
(Unaudited)
(In thousands)
Three months ended September 30,
2013 2012
Construction
Core services $ 154,171 $ 156,478
Less: Intersegment revenues (112) (27)
Core services, net 154,059 156,451
Storm restoration services 3,414 46,973
Revenues, net 157,473 203,424
Income from operations 1,314 16,580
Depreciation and amortization 8,686 9,071
Purchases of property and equipment 12,127 7,759
All Other Operations
Core services $ 48,972 $ 49,003
Less: Intersegment revenues (13,359) (11,037)
Core services, net 35,613 37,966
Storm assessment and inspection services 221 3,223
Revenues, net 35,834 41,189
Income from operations 1,571 2,074
Depreciation and amortization 1,312 1,314
Purchases of property and equipment 124 348
Eliminations and Other Adjustments
Revenues $ -- $ --
Loss from operations (82) (1,070)
Depreciation and amortization -- --
Purchases of property and equipment -- --
Total
Core services $ 203,143 $ 205,481
Less: Intersegment revenues (13,471) (11,064)
Core services, net 189,672 194,417
Storm-related services 3,635 50,196
Revenues, net 193,307 244,613
Income from operations 2,803 17,584
Depreciation and amortization 9,998 10,385
Purchases of property and equipment 12,251 8,107
PIKE ELECTRIC CORPORATION
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited)
(In thousands)
Three months ended September 30,
2013 2012
Construction Segment
Distribution and other $ 115,449 $ 120,538
Transmission and substation 38,610 35,913
Core services, net $ 154,059 $ 156,451
Storm restoration services 3,414 46,973
Revenues, net $ 157,473 $ 203,424
All Other Operations Segment
Core services, net $ 35,613 $ 37,966
Storm assessment and inspection services 221 $ 3,223
Revenues, net $ 35,834 $ 41,189

CONTACT: Investor Relations Contact: Frank Milano (336) 719-4622 IR@pike.com

Source:Pike Electric Corporation

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