Pike Corporation Reports Fiscal Second Quarter 2014 Results

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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

Source:Pike Corporation