Pike Reports 23% Revenue Growth and 33% EPS Growth in Fiscal Third Quarter

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Pike Reports 23% Revenue Growth and 33% EPS Growth in Fiscal Third Quarter

MOUNT AIRY, N.C.--(BUSINESS WIRE)-- Pike Electric Corporation (NYS: PIKE) , one of the nation's leading energy solutions providers, today reported fiscal third quarter 2013 results for the period ended March 31, 2013. Total revenue in the third quarter 2013 was $200.2 million, up 23% compared to $162.8 million in the year-ago period. Net income in the third quarter 2013 totaled $2.7 million, or $0.08 per diluted share. In the year-ago period, net income totaled $2.0 million, or $0.06 per diluted share.


Total revenue in the fiscal third quarter 2013 included storm-related services of $25.4 million, compared to $6.3 million in the same quarter last year. Gross profit totaled $25.0 million, compared to $20.5 million in the year-ago period. General and administrative expenses totaled $18.7 million, compared to $16.2 million in the year-ago period.

"We continue to be pleased with the success of our diversification strategy and growth. Transmission and substation continue their positive trends and engineering services now generate over 18 percent of our core revenue," said J. Eric Pike, Chairman and CEO of Pike. "Although our third quarter results were significantly affected by reduced construction productivity in our mid-Atlantic and southeastern territory due to snow and extremely wet weather conditions, investments in training, and expansion costs for Pine Valley Power and UCS, we remain on track for a record year and our actions this quarter will aid in our future growth."

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 $166.7 million, up 16% compared to $144.4 million in the year-ago period. Income from operations in the Construction segment totaled $5.2 million, compared to $3.8 million in the year-ago period. All Other Operations revenue totaled $33.5 million, up 82% compared to $18.4 million in the year-ago period. Income from operations in the All Other Operations segment totaled $1.3 million, compared to $1.5 million in the year-ago period.

Conference Call

The Company will host a conference call at 11:00 a.m. Eastern on Tuesday, May 7. The call can be accessed by dialing (888) 572-7025, or (719) 325-2463 for international callers. The confirmation code for the live call is 6315376. 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 6315376. The replay will remain available until midnight Eastern on May 14. 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 March 31,

Nine months ended March 31,

2013

2012

2013

2012

Revenues

$

200,222

$

162,766

$

718,503

$

506,588

Cost of operations

175,177

142,228

597,302

436,782

Gross profit

25,045

20,538

121,201

69,806

General and administrative expenses

18,704

16,220

58,063

48,096

Gain on sale of property and equipment

(147

)

(406

)

(345

)

(288

)

Income from operations

6,488

4,724

63,483

21,998

Other expense (income):

Interest expense

1,679

1,179

5,686

6,017

Other, net

(5

)

(15

)

(30

)

(28

)

Total other expense, net

1,674

1,164

5,656

5,989

Income before income taxes

4,814

3,560

57,827

16,009

Income tax expense

2,121

1,536

22,250

6,490

Net income

$

2,693

$

2,024

$

35,577

$

9,519

Earnings per share:

Basic

$

0.08

$

0.06

$

1.01

$

0.28

Diluted

$

0.08

$

0.06

$

1.01

$

0.27

Shares used in computing earnings per share:

Basic

35,219

34,869

35,132

34,569

Diluted

35,663

35,241

35,363

35,066

Dividends per share:

$

-

$

-

$

1.00

$

-

PIKE ELECTRIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

March 31,

June 30,

2013

2012

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

5,970

$

1,601

Accounts receivable, net

118,488

91,059

Costs and estimated earnings in excess of billings

on uncompleted contracts

67,592

66,414

Inventories

15,153

15,348

Prepaid expenses and other

8,062

9,001

Deferred income taxes

9,327

9,722

Total current assets

224,592

193,145

Property and equipment, net

176,326

174,655

Goodwill

153,657

122,932

Other intangibles, net

77,002

43,617

Deferred loan costs, net

1,747

2,175

Other assets

2,122

1,624

Total assets

$

635,446

$

538,148

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

27,399

$

26,206

Accrued compensation

28,912

28,703

Billings in excess of costs and estimated earnings

on uncompleted contracts

11,074

5,318

Accrued expenses and other

12,012

7,551

Current portion of insurance and claim accruals

13,640

11,525

Total current liabilities

93,037

79,303

Revolving credit facility

191,000

123,000

Insurance and claim accruals, net of current portion

5,252

3,956

Deferred compensation

6,157

5,578

Deferred income taxes

57,193

46,749

Other liabilities

2,895

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; 35,291 and 35,052 shares issued and outstanding

at March 31, 2013 and June 30, 2012, respectively

6,428

6,428

Additional paid-in capital

175,758

173,060

Accumulated other comprehensive loss, net of taxes

(124

)

-

Retained earnings

97,850

97,437

Total stockholders' equity

279,912

276,925

Total liabilities and stockholders' equity

$

635,446

$

538,148

PIKE ELECTRIC CORPORATION

SEGMENT RESULTS

(Unaudited)

(In thousands)

Three months ended March 31,

Nine months ended March 31,

2013

2012

2013

2012

Construction

Core services

$

143,215

$

138,180

$

449,634

$

400,201

Less: Intersegment revenues

(531

)

(45

)

(769

)

(6,396

)

Core services, net

142,684

138,135

448,865

393,805

Storm restoration services

24,034

6,269

149,629

62,953

Revenues, net

166,718

144,404

598,494

456,758

Income from operations

5,246

3,849

60,153

21,547

Depreciation and amortization

8,558

9,323

27,307

28,079

Purchases of property and equipment

9,747

6,514

26,904

21,841

All Other Operations

Core services

$

40,530

$

19,616

$

140,843

$

53,091

Less: Intersegment revenues

(8,458

)

(1,254

)

(29,872

)

(3,261

)

Core services, net

32,072

18,362

110,971

49,830

Storm assessment and inspection services

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