MOUNT AIRY, N.C., Nov. 4, 2013 (GLOBE NEWSWIRE) -- Pike Electric Corporation (NYSE:PIKE), one of the nation's leading energy solutions providers, today reported fiscal first quarter 2014 results for the period ended September 30, 2013. Total revenue in the first quarter 2014 was $193.3 million, down 21.0% compared to $244.6 million in the year-ago period. Net income in the first quarter 2014 totaled $1.0 million or $0.03 per diluted share, compared to net income of $9.3 million or $0.26 per diluted share in the year-ago period.
Total revenue in the first quarter 2014 consisted of core construction and engineering revenue of $189.7 million and storm-related services of $3.6 million. In the year-ago period, core construction and engineering revenue totaled $194.4 million and storm-related services totaled $50.2 million.
"Storm activity accounts for the vast majority of the difference between this quarter's results and last year's record first quarter performance. We experienced unusually low storm activity this quarter totaling $3.6 million versus $50.2 million of storm activity last year that included Hurricane Isaac and the derecho windstorm. We also had several large solar projects in process when we generated a 29% organic core growth rate during the first quarter of last year," said J. Eric Pike, Chairman and CEO of Pike. "Our core business declined 2% compared to that prior record, primarily reflecting lower solar construction revenue during the first quarter 2014."
Gross profit in the first quarter 2014 totaled $19.9 million or 10.3% of revenue, compared to $36.9 million, or 15.1% of revenue in the year-ago period. This decrease in gross profit resulted from three areas. First, we experienced significantly lower storm revenue during the quarter. Second, we made investments to fund our organic growth in the western U.S. and third, we experienced losses in five specific jobs in California for two new customers during the quarter. These investments totaled $0.02 per diluted share and the jobs negatively impacting our earnings totaled $0.04 per diluted share. These jobs will be completed in the fiscal second quarter.
General and administrative expenses in the first quarter 2014 totaled $17.4 million or 9.0% of revenue, compared to $19.5 million or 8.0% of revenue in the year-ago period.
Looking ahead, the year-over-year comparisons in our core business will improve each of the next several quarters. However, the storm revenue comparison will be even more difficult next quarter. Hurricane Sandy contributed significantly to storm revenue of $83.0 million in the Company's fiscal second quarter 2013 results.
Conference Call
The Company will host a conference call at 9:00 a.m. Eastern on Tuesday, November 5. The call can be accessed by dialing (877) 397-0292, or (719) 325-4785 for international callers. The confirmation code for the live call is 3393800. 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 3393800. The dial-in replay will remain available until midnight Eastern on November 12. An on-demand replay of the webcast 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 September 30, | ||
| 2013 | 2012 | |
| Revenues | $ 193,307 | $ 244,613 |
| Cost of operations | 173,411 | 207,691 |
| Gross profit | 19,896 | 36,922 |
| General and administrative expenses | 17,408 | 19,468 |
| Gain on sale of property and equipment | (315) | (130) |
| Income from operations | 2,803 | 17,584 |
| Other expense (income): | ||
| Interest expense | 1,807 | 2,123 |
| Other, net | (9) | (21) |
| Total other expense | 1,798 | 2,102 |
| Income before income taxes | 1,005 | 15,482 |
| Income tax expense | 46 | 6,200 |
| Net income | $ 959 | $ 9,282 |
| Earnings per share: | ||
| Basic | $ 0.03 | $ 0.26 |
| Diluted | $ 0.03 | $ 0.26 |
| Weighted average shares used in computing earnings per share: | ||
| Basic | 31,753 | 35,048 |
| Diluted | 32,273 | 35,355 |
| PIKE ELECTRIC CORPORATION | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except per share amounts) | ||
| September 30, | June 30, | |
| 2013 | 2013 | |
| (Unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 2,915 | $ 2,578 |
| Accounts receivable, net | 90,830 | 104,585 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 76,011 | 71,248 |
| Inventories | 16,741 | 14,396 |
| Prepaid expenses and other | 8,897 | 9,914 |
| Deferred income taxes | 4,542 | 8,720 |
| Total current assets | 199,936 | 211,441 |
| Property and equipment, net | 183,374 | 179,928 |
| Goodwill | 153,668 | 153,668 |
| Other intangibles, net | 72,996 | 74,841 |
| Deferred loan costs, net | 1,375 | 1,561 |
| Other assets | 2,832 | 2,335 |
| Total assets | $ 614,181 | $ 623,774 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 32,975 | $ 33,500 |
| Accrued compensation | 24,447 | 30,468 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 9,210 | 6,235 |
| Accrued expenses and other | 5,649 | 5,908 |
| Current portion of insurance and claim accruals | 7,976 | 12,121 |
| Total current liabilities | 80,257 | 88,232 |
| Revolving credit facility | 220,000 | 221,000 |
| Insurance and claim accruals, net of current portion | 4,311 | 4,958 |
| Deferred compensation | 6,997 | 6,431 |
| Deferred income taxes | 55,440 | 58,402 |
| Other liabilities | 3,110 | 2,916 |
| 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; 31,775 and 31,719 shares issued and outstanding at September 30, 2013 and June 30, 2013, respectively | 6,425 | 6,424 |
| Additional paid-in capital | 178,326 | 176,988 |
| Accumulated other comprehensive loss, net of taxes | (114) | (47) |
| Retained earnings | 59,429 | 58,470 |
| Total stockholders' equity | 244,066 | 241,835 |
| Total liabilities and stockholders' equity | $ 614,181 | $ 623,774 |
| PIKE ELECTRIC CORPORATION | ||||
| SEGMENT RESULTS | ||||
| (Unaudited) | ||||
| (In thousands) | ||||
| Three months ended September 30, | ||||
| 2013 | 2012 | |||
| Construction | ||||
| Core services | $ 154,171 | $ 156,478 | ||
| Less: Intersegment revenues | (112) | (27) | ||
| Core services, net | 154,059 | 156,451 | ||
| Storm restoration services | 3,414 | 46,973 | ||
| Revenues, net | 157,473 | 203,424 | ||
| Income from operations | 1,314 | 16,580 | ||
| Depreciation and amortization | 8,686 | 9,071 | ||
| Purchases of property and equipment | 12,127 | 7,759 | ||
| All Other Operations | ||||
| Core services | $ 48,972 | $ 49,003 | ||
| Less: Intersegment revenues | (13,359) | (11,037) | ||
| Core services, net | 35,613 | 37,966 | ||
| Storm assessment and inspection services | 221 | 3,223 | ||
| Revenues, net | 35,834 | 41,189 | ||
| Income from operations | 1,571 | 2,074 | ||
| Depreciation and amortization | 1,312 | 1,314 | ||
| Purchases of property and equipment | 124 | 348 | ||
| Eliminations and Other Adjustments | ||||
| Revenues | $ -- | $ -- | ||
| Loss from operations | (82) | (1,070) | ||
| Depreciation and amortization | -- | -- | ||
| Purchases of property and equipment | -- | -- | ||
| Total | ||||
| Core services | $ 203,143 | $ 205,481 | ||
| Less: Intersegment revenues | (13,471) | (11,064) | ||
| Core services, net | 189,672 | 194,417 | ||
| Storm-related services | 3,635 | 50,196 | ||
| Revenues, net | 193,307 | 244,613 | ||
| Income from operations | 2,803 | 17,584 | ||
| Depreciation and amortization | 9,998 | 10,385 | ||
| Purchases of property and equipment | 12,251 | 8,107 | ||
| PIKE ELECTRIC CORPORATION | ||||
| SUPPLEMENTAL REVENUE INFORMATION | ||||
| (Unaudited) | ||||
| (In thousands) | ||||
| Three months ended September 30, | ||||
| 2013 | 2012 | |||
| Construction Segment | ||||
| Distribution and other | $ 115,449 | $ 120,538 | ||
| Transmission and substation | 38,610 | 35,913 | ||
| Core services, net | $ 154,059 | $ 156,451 | ||
| Storm restoration services | 3,414 | 46,973 | ||
| Revenues, net | $ 157,473 | $ 203,424 | ||
| All Other Operations Segment | ||||
| Core services, net | $ 35,613 | $ 37,966 | ||
| Storm assessment and inspection services | 221 | $ 3,223 | ||
| Revenues, net | $ 35,834 | $ 41,189 | ||