EX-99.1 2 v234126_ex99-1.htm EXHIBIT 99.1

Pike Reports 35% Revenue Growth in Fiscal Fourth Quarter 2011

MOUNT AIRY, N.C., Sept. 6, 2011 /PRNewswire/ -- Pike Electric Corporation (NYSE: PIKE), one of the nation's leading energy solutions providers, today reported fiscal fourth quarter and full year results for the period ended June 30, 2011. In the fourth quarter of fiscal year 2011, revenue totaled $162.7 million, an increase of 35% compared to $120.7 million in the year-ago period and net income totaled $2.1 million, or $0.06 per diluted share. In the fiscal fourth quarter last year, the Company reported a net loss of $4.0 million, or $(0.12) per diluted share.

Core services revenue totaled $122.0 million in the fiscal fourth quarter 2011, compared to $116.9 million in the year-ago period. Storm restoration revenue totaled $40.7 million, the highest level since the fiscal third quarter 2009.

Gross profit in the fourth quarter of fiscal 2011 totaled $23.2 million, an increase of 167% compared to $8.7 million in the fiscal fourth quarter last year. As a percent of revenue, gross margin totaled 14.2% this quarter, an increase of 700 basis points compared to 7.2% in the year-ago period. The gross profit increase primarily resulted from significantly higher storm restoration business.

"We continued to build momentum throughout the year, culminating in this quarter's strong performance," said J. Eric Pike, Chairman and CEO of Pike. "The deliberate actions taken last year to restructure the Company lowered our cost structure, plus we experienced continued growth in our core services revenue and an increased volume of storm restoration activity."

Fiscal year 2011 revenue totaled $593.9 million, an increase of 18% compared to $504.1 million in fiscal year 2010 and net income totaled $1.4 million, or $0.04 per diluted share. For the fiscal year ended June 30, 2010, the Company reported a net loss of $13.5 million, or $(0.41) per diluted share. Last year's results included a pre-tax restructuring charge of $8.9 million ($5.5 million or $0.17 per diluted share on an after-tax basis).

Core services revenue totaled $529.3 million in fiscal year 2011, compared to $457.4 million for the 2010 fiscal year. Revenue increased in all areas, with engineering and substation up 54% to $117.8 million, distribution and other up 7% to $333.3 million, and transmission up 14% to $78.2 million. Storm restoration revenue totaled $64.5 million, up 38% compared to $46.6 million in the prior year.

Gross profit totaled $67.9 million in fiscal year 2011, an increase of 42% compared to $47.8 in fiscal year 2010. As a percent of revenue, gross margin totaled 11.4% this year, an increase of 190 basis points compared to 9.5% in fiscal year 2010. The gross profit increase resulted from additional construction and maintenance volume in distribution and transmission, plus additional storm restoration activity.

Mr. Pike added, "The acquisitions that were completed over the last three years, including the recent acquisition of Pine Valley Power, Inc. give us a strong foundation for geographic expansion and further improvement in the mix of core services revenue. In addition, the $200 million revolving credit facility that we announced last month provides the Company with greater financial flexibility and increased capacity for organic growth and potential acquisitions than the prior revolver."

Conference Call

The Company will host a conference call at 11:00 a.m. Eastern today. The call can be accessed by dialing (877) 719-9799, or (719) 325-4857 for international callers. The confirmation code for the live call is 8848340. 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 8848340. The replay will remain available until midnight Eastern on September 13. An on-demand replay of the conference call will remain available 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 200 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 power delivery systems, including renewable energy projects. 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 Pike's 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 Pike's 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; Pike undertakes 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.

Financial Tables Follow

PIKE ELECTRIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)












Three months ended June 30,


Twelve months ended June 30,



2011


2010


2011


2010

Core revenues


$ 122,021


$ 116,861


$ 529,335


$ 457,448

Storm restoration revenues


40,691


3,874


64,523


46,636

Total revenues


$ 162,712


$ 120,735


$ 593,858


$ 504,084

Cost of operations


139,538


112,030


525,915


456,317










Gross profit


23,174


8,705


67,943


47,767

General and administrative expenses


17,498


13,732


57,675


51,994

Loss on sale and impairment of property and equipment


226


37


751


1,239

Restructuring expenses


-


(38)


-


8,945










Income (loss) from operations


5,450


(5,026)


9,517


(14,411)

Other expense (income):









Interest expense


1,514


1,824


6,608


7,908

Other, net


(17)


(70)


(55)


(298)

Total other expense


1,497


1,754


6,553


7,610










Income (loss) before income taxes


3,953


(6,780)


2,964


(22,021)

Income tax expense (benefit)


1,903


(2,760)


1,563


(8,562)










Net income (loss)


$     2,050


$   (4,020)


$     1,401


$ (13,459)










Net earnings (loss) per share:









Basic


$       0.06


$     (0.12)


$       0.04


$     (0.41)

Diluted


$       0.06


$     (0.12)


$       0.04


$     (0.41)










Shares used in computing earnings (loss) per share:









Basic


33,492


33,169


33,399


33,132

Diluted


34,149


33,169


33,996


33,132



PIKE ELECTRIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)












June 30,


June 30,





2011


2010





(Unaudited)





ASSETS





Current assets:






Cash and cash equivalents


$           311


$   11,133


Accounts receivable from customers, net


80,902


64,672


Costs and estimated earnings in excess of billings







on uncompleted contracts


49,266


50,215


Inventories


8,338


6,401


Prepaid expenses and other


16,044


9,115


Deferred income taxes


7,969


10,526



Total current assets


162,830


152,062

Property and equipment, net


177,682


194,885

Goodwill


110,893


114,778

Other intangibles, net


38,353


38,527

Deferred loan costs, net


2,005


3,021

Other assets


1,846


2,105



Total assets


$    493,609


$ 505,378










LIABILITIES AND STOCKHOLDERS’ EQUITY





Current liabilities:






Accounts payable


$      20,079


$   17,484


Accrued compensation


25,474


22,589


Billings in excess of costs and estimated earnings







on uncompleted contracts


12,224


8,925


Accrued expenses and other


8,185


6,112


Current portion of insurance claim accruals


12,526


23,422



Total current liabilities


78,488


78,532

Long-term debt


99,000


114,500

Insurance and claim accruals


6,621


6,005

Deferred compensation


6,140


5,844

Deferred income taxes


46,179


48,170








Other liabilities


2,792


2,859

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; 33,666 and 33,544 shares issued and outstanding







at June 30, 2011 and June 30, 2010, respectively


6,427


6,427


Additional paid-in capital


161,586


158,030


Accumulated other comprehensive loss, net of taxes


(178)


(142)


Retained earnings


86,554


85,153



Total stockholders’ equity


254,389


249,468



Total liabilities and stockholders’ equity


$    493,609


$ 505,378



PIKE ELECTRIC CORPORATION

SUPPLEMENTAL REVENUE INFORMATION - Excluding Storm Revenue

(Unaudited)

(In thousands)












Three months ended June 30,


Twelve months ended June 30,



2011


2010


2011


2010

Distribution and other


$   76,230


$   80,242


$ 333,360


$ 312,237

Transmission


17,354


17,126


78,194


68,810

Engineering and substation


28,437


19,493


117,781


76,401










Total revenues - excluding storm revenue


$ 122,021


$ 116,861


$ 529,335


$ 457,448





CONTACT: Investor Relations, +1-336-719-4622, IR@pike.com