Pike Reports Revenue Increase of 59% and EPS of $0.67 per Diluted Share in Fiscal Second Quarter 201

Pike Reports Revenue Increase of 59% and EPS of $0.67 per Diluted Share in Fiscal Second Quarter 2013

Results Represent Record Revenue and Significant Earnings Growth


MOUNT AIRY, N.C.--(BUSINESS WIRE)-- Pike Electric Corporation (NYS: PIKE) , one of the nation's leading energy solutions providers, today reported fiscal second quarter 2013 results for the period ended December 31, 2012. Total revenue in the second quarter was a record high $273.7 million, up 59% compared to $172.0 million in the year-ago period. Net income in the second quarter totaled $23.6 million, or $0.67 per diluted share. By comparison, net income totaled $4.9 million, or $0.14 per diluted share, in the year-ago period.

Total revenue in the fiscal second quarter 2013 included storm-related services of $83.0 million, compared to $21.9 million in the same quarter last year. Gross profit totaled $59.2 million, or 21.6% of revenue. By comparison, gross profit totaled $25.4 million, or 14.8% of revenue, in the year-ago period. General and administrative expenses totaled $19.9 million, or 7.3% of revenue. By comparison, general and administrative expenses totaled $15.9 million, or 9.2% of revenue, in the year-ago period.

"All areas of our core business improved on a year-over-year basis, contributing to this quarter's record revenue. Our fiscal second quarter financial performance also reflects a significant increase in the level of storm restoration activity," said J. Eric Pike, Chairman and CEO of Pike. "Our year-to-date revenue of $518.3 million suggests fiscal 2013 will be a record year for Pike. In addition, earnings for the six months ended December 31, 2012 are already three times higher than the $0.31 per diluted share we reported for the fiscal year ended June 30, 2012."

The Company has adopted two reportable segments for financial reporting purposes: Construction and All Other Operations. The accompanying 'segment results' table provides eliminations and other adjustments that reconcile the segment revenues and income from operations amounts to consolidated results.

Construction revenue totaled $228.4 million, up 46% compared to $156.3 million in the year-ago period. Income from operations in the Construction segment totaled $38.3 million, compared to $9.1 million in the year-ago period. All Other Operations revenue totaled a record high $45.3 million, up 189% compared to $15.7 million in the year-ago period. Income from operations in the All Other Operations segment totaled $1.9 million, compared to $0.7 million in the year-ago period.

Conference Call

The Company will host a conference call at 11:00 a.m. Eastern on Wednesday, February 6. The call can be accessed by dialing (888) 359-3627, or (719) 457-1512 for international callers. The confirmation code for the live call is 4239091. 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 4239091. The replay will remain available until midnight Eastern on February 13. An on-demand replay of the conference call 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 December 31,

Six months ended December 31,

2012

2011

2012

2011

Revenues

$

273,668

$

172,031

$

518,281

$

343,822

Cost of operations

214,434

146,616

422,125

294,554

Gross profit

59,234

25,415

96,156

49,268

General and administrative expenses

19,891

15,859

39,359

31,876

(Gain) loss on sale of property and equipment

(68

)

(40

)

(198

)

118

Income from operations

39,411

9,596

56,995

17,274

Other expense (income):

Interest expense

1,884

1,345

4,007

4,838

Other, net

(4

)

(9

)

(25

)

(13

)

Total other expense, net

1,880

1,336

3,982

4,825

Income before income taxes

37,531

8,260

53,013

12,449

Income tax expense

13,929

3,369

20,129

4,954

Net income

$

23,602

$

4,891

$

32,884

$

7,495

Earnings per share:

Basic

$

0.67

$

0.14

$

0.94

$

0.22

Diluted

$

0.67

$

0.14

$

0.93

$

0.21

Shares used in computing earnings per share:

Basic

35,129

34,663

35,089

34,421

Diluted

35,423

35,132

35,360

34,976

Dividends per share:

$

1.00

$

-

$

1.00

$

-

PIKE ELECTRIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

December 31,

June 30,

2012

2012

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

2,517

$

1,601

Accounts receivable, net

137,748

91,059

Costs and estimated earnings in excess of billings

on uncompleted contracts

77,100

66,414

Inventories

10,314

15,348

Prepaid expenses and other

7,907

9,001

Deferred income taxes

9,207

9,722

Total current assets

244,793

193,145

Property and equipment, net

175,116

174,655

Goodwill

153,657

122,932

Other intangibles, net

79,162

43,617

Deferred loan costs, net

1,933

2,175

Other assets

1,862

1,624

Total assets

$

656,523

$

538,148

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

27,527

$

26,206

Accrued compensation

30,115

28,703

Billings in excess of costs and estimated earnings

on uncompleted contracts

10,685

5,318

Accrued expenses and other

19,235

7,551

Current portion of insurance and claim accruals

15,228

11,525

Total current liabilities

102,790

79,303

Revolving credit facility

207,500

123,000

Insurance and claim accruals, net of current portion

3,957

3,956

Deferred compensation

6,058

5,578

Deferred income taxes

57,272

46,749

Other liabilities

2,929

2,637

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; 35,182 and 35,052 shares issued and outstanding

at December 31, 2012 and June 30, 2012, respectively

6,428

6,428

Additional paid-in capital

174,553

173,060

Accumulated other comprehensive loss, net of taxes

(121

)

-

Retained earnings

95,157

97,437

Total stockholders' equity

276,017

276,925

Total liabilities and stockholders' equity

$

656,523

$

538,148

PIKE ELECTRIC CORPORATION

SEGMENT RESULTS

(Unaudited)

(In thousands)

Three months ended December 31,

Six months ended December 31,

2012

2011

2012

2011

Construction

Core services

$

149,941

$

140,805

$

306,419

$

262,021

Less: Intersegment revenues

(211

)

(6,351

)

(238

)

(6,351

)

Core services, net

149,730

134,454

306,181

255,670

Storm restoration services

78,622

21,891

125,595

56,684

Revenues, net

228,352

156,345

431,776

312,354

Income from operations

38,327

9,110

54,907

17,698

Depreciation and amortization

9,678

9,478

18,749

18,756

Purchases of property and equipment

9,398

7,716

17,157

15,327

All Other Operations

Core services

$

51,310

$

17,693

$

100,313

$

33,475

Less: Intersegment revenues

(10,377

)

(2,007

)

(21,414

)

(2,007

)

Core services, net

40,933

15,686

78,899

31,468

Storm assessment and inspection services

4,383

-

7,606

-

Revenues, net

45,316

15,686

86,505

31,468

Income from operations

1,888

715

3,962

115

Depreciation and amortization

1,389

250