Pike Corporation Reports Fiscal Third Quarter 2014 Results

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MOUNT AIRY, N.C., May 5, 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 third quarter 2014 results for the period ended March 31, 2014. Total revenue in the third quarter 2014 was $207.6 million, up 4% compared to $200.2 million in the year-ago period. Net income in the third quarter 2014 totaled $2.8 million, compared to net income of $2.7 million in the year-ago period. Diluted earnings per share totaled $0.09 in the third quarter 2014, compared to $0.08 per diluted share in the year-ago period.

Core construction revenue in the third quarter 2014 totaled $136.6 million, down 4% from $142.7 million in the year-ago period. Core engineering revenue increased 16% to $37.2 million in the third quarter 2014, compared to $32.1 million in the year-ago period. Total storm-related revenue in the third quarter 2014 totaled $33.8 million, compared to $25.5 million in the year-ago period.

"While we did experience a higher volume of storm activity in the quarter, these storms were at lower margin than the second quarter storms. Additionally, wet and snowy weather negatively impacted core productivity in our distribution and transmission businesses during the quarter," stated J. Eric Pike, Chairman and CEO of Pike Corporation. "Our engineering business, which includes energy delivery and communications, had a strong revenue quarter and we anticipate engineering will be one of the catalysts of future revenue and earnings growth."

Conference Call

The Company will host a conference call at 9:00 a.m. Eastern on Tuesday, May 6. The call can be accessed by dialing (888) 504-7963, or (719) 325-2393 for international callers. The confirmation code for the live call is 5537029. 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 5537029. The dial-in replay will remain available until midnight Eastern on May 13. 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.

PIKE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended March 31, Nine Months Ended March 31,
2014 2013 2014 2013
Revenues $ 207,583 $ 200,222 $ 611,749 $ 718,503
Cost of operations 181,337 175,177 534,695 597,302
Gross profit 26,246 25,045 77,054 121,201
General and administrative expenses 19,226 18,704 56,454 58,063
Gain on sale of property and equipment (297) (147) (698) (345)
Income from operations 7,317 6,488 21,298 63,483
Other expense (income):
Interest expense 2,185 1,679 5,903 5,686
Other, net (6) (5) (250) (30)
Total other expense 2,179 1,674 5,653 5,656
Income before income taxes 5,138 4,814 15,645 57,827
Income tax expense 2,310 2,121 6,198 22,250
Net income $ 2,828 $ 2,693 $ 9,447 $ 35,577
Earnings per share:
Basic $ 0.09 $ 0.08 $ 0.30 $ 1.01
Diluted $ 0.09 $ 0.08 $ 0.29 $ 1.01
Weighted average shares used in computing earnings per share:
Basic 31,869 35,219 31,802 35,132
Diluted 32,265 35,663 32,163 35,363
Dividends per share: $ -- $ -- $ -- $ 1.00
PIKE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
March 31, June 30,
2014 2013
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,770 $ 2,578
Accounts receivable, net 112,982 104,585
Costs and estimated earnings in excess of billings on uncompleted contracts 82,107 71,248
Inventories 14,672 14,396
Prepaid expenses and other 12,333 9,914
Deferred income taxes 7,480 8,720
Total current assets 233,344 211,441
Property and equipment, net 182,965 179,928
Goodwill 153,668 153,668
Other intangibles, net 69,309 74,841
Deferred loan costs, net 1,355 1,561
Other assets 2,989 2,335
Total assets $ 643,630 $ 623,774
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 30,195 $ 33,500
Accrued compensation 25,893 30,468
Billings in excess of costs and estimated earnings on uncompleted contracts 10,627 6,235
Accrued expenses and other 8,358 5,908
Current portion of insurance and claim accruals 4,813 12,121
Total current liabilities 79,886 88,232
Revolving credit facility 237,500 221,000
Insurance and claim accruals, net of current portion 4,663 4,958
Deferred compensation 7,281 6,431
Deferred income taxes 56,902 58,402
Other liabilities 3,603 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; 31,921 and 31,719 shares issued and outstanding at March 31, 2014 and June 30, 2013, respectively 6,424 6,424
Additional paid-in capital 179,587 176,988
Accumulated other comprehensive loss, net of taxes (133) (47)
Retained earnings 67,917 58,470
Total shareholders' equity 253,795 241,835
Total liabilities and shareholders' equity $ 643,630 $ 623,774
PIKE CORPORATION
SEGMENT RESULTS
(Unaudited)
(In thousands)
Three Months Ended March 31, Nine Months Ended March 31,
2014 2013 2014 2013
Construction
Core services $ 136,854 $ 143,215 $ 447,743 $ 449,634
Less: Intersegment revenues (196) (531) (326) (769)
Core services, net 136,658 142,684 447,417 448,865
Storm restoration services 32,074 24,034 57,527 149,629
Revenues, net 168,732 166,718 504,944 598,494
Income from operations 6,247 5,246 19,245 60,153
Depreciation and amortization 8,515 8,558 25,990 27,307
Purchases of property and equipment 5,841 9,747 28,968 26,904
Engineering
Core services $ 42,767 $ 40,530 $ 130,463 $ 140,843
Less: Intersegment revenues (5,562) (8,458) (26,054) (29,872)
Core services, net 37,205 32,072 104,409 110,971
Storm assessment and inspection services 1,646 1,432 2,396 9,038
Revenues, net 38,851 33,504 106,805 120,009
Income from operations 1,178 1,344 2,354 5,306
Depreciation and amortization 1,268 1,341 3,875 4,044
Purchases of property and equipment 329 142 580 689
Eliminations and Other Adjustments
Revenues $ -- $ -- $ -- $ --
Loss from operations (108) (102) (301) (1,976)
Depreciation and amortization -- -- -- --
Purchases of property and equipment -- -- -- --
Total
Core services $ 179,621 $ 183,745 $ 578,206 $ 590,477
Less: Intersegment revenues (5,758) (8,989) (26,380) (30,641)
Core services, net 173,863 174,756 551,826 559,836
Storm-related services 33,720 25,466 59,923 158,667
Revenues, net 207,583 200,222 611,749 718,503
Income from operations 7,317 6,488 21,298 63,483
Depreciation and amortization 9,783 9,899 29,865 31,351
Purchases of property and equipment 6,170 9,889 29,548 27,593
PIKE CORPORATION
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited)
(In thousands)
Three Months Ended March 31, Nine Months Ended March 31,
2014 2013 2014 2013
Construction Segment
Distribution and other $ 98,284 $ 104,730 $ 326,583 $ 336,859
Transmission and substation 38,374 37,954 120,834 112,006
Core services, net $ 136,658 $ 142,684 $ 447,417 $ 448,865
Storm restoration services 32,074 24,034 57,527 149,629
Revenues, net $ 168,732 $ 166,718 $ 504,944 $ 598,494
Engineering Segment
Core services, net $ 37,205 $ 32,072 $ 104,409 $ 110,971
Storm assessment and inspection services 1,646 1,432 2,396 9,038
Revenues, net $ 38,851 $ 33,504 $ 106,805 $ 120,009
Consolidated
Core services, net $ 173,863 $ 174,756 $ 551,826 $ 559,836
Storm-related services 33,720 25,466 59,923 158,667
Revenues, net $ 207,583 $ 200,222 $ 611,749 $ 718,503

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

Source:Pike Corporation