EX-99.1 2 v073926_ex99-1.txt Pike Electric Reports Third Quarter and Year To Date Fiscal 2007 Results MT. AIRY, N.C., May 8 /PRNewswire-FirstCall/ -- Pike Electric Corporation (NYSE: PEC) today announced the results for the three and nine months ended March 31, 2007. Third Quarter Results Third quarter net income totaled $6.0 million, or $0.18 per diluted share, compared to net income of $0.3 million, or $0.01 per diluted share, for the third quarter of the prior year. Gross profit percentage for the third quarter of fiscal 2007 increased to 17.8% compared to 11.0% for the prior year quarter. Gross profit percentage was primarily impacted by exiting certain low margin accounts and services, favorable pricing in recent contract negotiations and an increase in higher margin storm restoration revenues. Total revenues for the third quarter of fiscal 2007 decreased 1.9% to $154.3 million from $157.2 million for the prior year quarter. Storm restoration revenues totaled $19.2 million for the third quarter of fiscal 2007, up from $8.9 million in the same quarter of the prior year. Powerline revenues for the third quarter of fiscal 2007 decreased 9.0% to $135.1 million from $148.3 million for the prior year quarter on a 13.2% decrease in powerline billable hours. Average revenue producing headcount decreased 9.7% for the quarter ended March 31, 2007 from the same period in the prior year. "The company is continuing to execute on our plan to exit low margin business lines, renegotiate existing contracts and continue strengthening relationships with our customers. In the short term, this strategy will reduce revenue and headcount but is already showing a positive impact on operating margins and earnings," stated J. Eric Pike, chairman and chief executive officer of Pike Electric. Debt Repayment The Company repaid $22.0 million of its term debt during the third quarter of fiscal 2007 resulting in $214.5 million in term debt outstanding as of March 31, 2007. Nine-Month Results For the nine months ended March 31, 2007, net income totaled $12.8 million, or $0.38 per diluted share, compared to net income of $31.4 million, or $0.98 per diluted share, for the nine months ended March 31, 2006. Powerline revenues for the first nine months of fiscal 2007 increased 2.7% to $406.9 million from $396.4 million for the same period in the prior year. Storm restoration revenues totaled $45.6 million for the first nine months of fiscal 2007, down from $175.0 million in the same period of the prior year. Prior year storm restoration revenues were driven by damage caused by Hurricanes Dennis, Katrina, Rita and Wilma. As a result, total revenues for the first nine months of fiscal 2007 decreased 20.8% to $452.5 million from $571.4 million for the same period in the prior year. Average revenue producing headcount decreased 7.0% for the nine months ended March 31, 2007 from the same period in the prior year. Outlook "The Company will continue to execute on our management development, contract repricing, information systems implementation and debt reduction initiatives. I believe we are now much better positioned to take advantage of the growth in our industry while maintaining the high quality of service for our customers," stated J. Eric Pike, chairman and chief executive officer. Conference Call Pike Electric's conference call to discuss its third fiscal quarter 2007 results is scheduled for 10:30 a.m. EDT today, May 8, 2007. To participate in the call, dial (866) 770-7051 at least 10 minutes before the conference call begins and enter in participation code 54639481. This call will also be available live and by replay over the Internet at http://www.pike.com in the Investor Relations section. About Pike Electric Pike Electric is one of the largest providers of outsourced electric distribution and transmission services in the United States. Its core activities consist of the maintenance, upgrade and extension of electric distribution and sub-500 kilovolt transmission powerlines for more than 150 electric utilities, cooperatives and municipalities. Pike Electric services a contiguous 19-state region that stretches from Pennsylvania in the north to Florida in the southeast and Texas in the southwest and is a recognized leader in storm restoration services. The Company's common stock is traded on the New York Stock Exchange under the symbol PEC. For further information regarding Pike Electric, visit the Company's website at www.pike.com. Safe Harbor This press release contains forward-looking statements that relate to Pike Electric's plans, objectives and estimates. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this release. 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 factors, please refer to the Risk Factor section of Pike Electric's Annual Report on Form 10-K for the fiscal year ending June 30, 2006 and in its other filings with the Securities and Exchange Commission. Pike Electric makes no commitment to update any forward-looking statement or to disclose any facts, events, or circumstances after the date of this release that may affect the accuracy of any forward-looking statement, except as may be required by applicable law. Tables Follow PIKE ELECTRIC CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) Mar 31 June 30 2007 2006 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 696 $ 3,391 Accounts receivable, net 63,426 66,629 Work completed not billed 50,131 56,430 Inventories 8,813 8,041 Prepaid expenses and other 4,915 5,928 Deferred income taxes 8,469 12,460 Total current assets 136,450 152,879 Property and equipment, net 279,145 284,452 Goodwill 94,402 94,402 Other intangibles, net 43,991 49,978 Deferred loan costs, net 5,139 6,265 Other assets 1,662 1,990 Total assets $ 560,789 $ 589,966 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 37,565 $ 39,903 Current portion deferred compensation 2,456 10,614 Current portion of insurance and claim accruals 26,823 18,867 Revolving credit facility -- 4,500 Total current liabilities 66,844 73,884 Long-term debt, net of current portion 214,500 249,000 Insurance and claim accruals, net of current portion 12,951 13,439 Deferred compensation, net of current portion 10,192 10,378 Deferred income taxes 67,461 72,333 Other liabilities -- 200 Commitments and contingencies Stockholders' equity: Preferred stock, par value $0.001 per share; 100,000 shares authorized; no shares issued and outstanding. -- -- Common stock, par value $0.001 per share; 100,000 shares authorized; 32,825 and 32,577 shares issued and outstanding at March 31, 2007 and June 30, 2006, respectively 6,426 6,426 Additional paid-in capital 141,264 135,869 Accumulated other comprehensive income (loss) (72) -- Retained earnings 41,223 28,437 Total stockholders' equity 188,841 170,732 Total liabilities and stockholders' equity $ 560,789 $ 589,966 PIKE ELECTRIC CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENTS (In thousands, except per share amounts) (Unaudited)

Three months ended Nine months ended March 31, March 31, 2007 2006 2007 2006 Revenues $ 154,272 $ 157,202 $ 452,496 $ 571,358 Cost of operations 126,751 139,902 380,723 465,969 Gross profit 27,521 17,300 71,773 105,389 General and administrative expenses 12,428 9,836 34,706 31,985 Loss on sale of property and equipment 349 1,556 847 1,905 Income from operations 14,744 5,908 36,220 71,499 Other expense (income): Interest expense 5,053 5,484 15,275 19,337 Other, net (83) (58) (199) (163) Total other expense 4,970 5,426 15,076 19,174 Income before income taxes 9,774 482 21,144 52,325 Income tax expense 3,810 194 8,358 20,951 Net income $ 5,964 $ 288 $ 12,786 $ 31,374 Earnings per share: Basic $ 0.18 $ 0.01 $ 0.40 $ 1.02 Diluted $ 0.18 $ 0.01 $ 0.38 $ 0.98 Shares used in computing earnings per share: Basic 32,505 31,932 32,359 30,846 Diluted 33,377 33,092 33,278 32,016

SOURCE Pike Electric Corporation -0- 05/08/2007 /CONTACT: Anthony Slater, CFO of Pike Electric Corporation, +1-336-719-4237/ /Web site: http://www.pike.com /