Pike Corporation Reports Fiscal Third Quarter 2014 Results

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| Source: Pike Corporation

MOUNT AIRY, N.C., May 5, 2014 (GLOBE NEWSWIRE) -- Pike Corporation (NYSE:PIKE), one of the nation's largest specialty construction and engineering firms serving the electric power industry, today reported fiscal third quarter 2014 results for the period ended March 31, 2014. Total revenue in the third quarter 2014 was $207.6 million, up 4% compared to $200.2 million in the year-ago period. Net income in the third quarter 2014 totaled $2.8 million, compared to net income of $2.7 million in the year-ago period. Diluted earnings per share totaled $0.09 in the third quarter 2014, compared to $0.08 per diluted share in the year-ago period.

Core construction revenue in the third quarter 2014 totaled $136.6 million, down 4% from $142.7 million in the year-ago period. Core engineering revenue increased 16% to $37.2 million in the third quarter 2014, compared to $32.1 million in the year-ago period. Total storm-related revenue in the third quarter 2014 totaled $33.8 million, compared to $25.5 million in the year-ago period.

"While we did experience a higher volume of storm activity in the quarter, these storms were at lower margin than the second quarter storms. Additionally, wet and snowy weather negatively impacted core productivity in our distribution and transmission businesses during the quarter," stated J. Eric Pike, Chairman and CEO of Pike Corporation. "Our engineering business, which includes energy delivery and communications, had a strong revenue quarter and we anticipate engineering will be one of the catalysts of future revenue and earnings growth."

Conference Call

The Company will host a conference call at 9:00 a.m. Eastern on Tuesday, May 6. The call can be accessed by dialing (888) 504-7963, or (719) 325-2393 for international callers. The confirmation code for the live call is 5537029. 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 5537029. The dial-in replay will remain available until midnight Eastern on May 13. An on-demand replay of the webcast will remain online for a limited time following the conclusion of the call.

About Pike Corporation

Pike Corporation, formerly known as Pike Electric Corporation, is one of the nation's largest specialty construction and engineering firms serving 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.

PIKE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
         
  Three Months Ended March 31, Nine Months Ended March 31,
         
  2014 2013 2014 2013
         
Revenues  $ 207,583  $ 200,222  $ 611,749  $ 718,503
Cost of operations  181,337  175,177  534,695  597,302
         
Gross profit  26,246  25,045  77,054  121,201
General and administrative expenses  19,226  18,704  56,454  58,063
Gain on sale of property and equipment  (297)  (147)  (698)  (345)
         
Income from operations  7,317  6,488  21,298  63,483
Other expense (income):        
Interest expense  2,185  1,679  5,903  5,686
Other, net  (6)  (5)  (250)  (30)
         
Total other expense  2,179  1,674  5,653  5,656
         
Income before income taxes  5,138  4,814  15,645  57,827
Income tax expense  2,310  2,121  6,198  22,250
         
Net income  $ 2,828  $ 2,693  $ 9,447  $ 35,577
         
Earnings per share:        
Basic  $ 0.09  $ 0.08  $ 0.30  $ 1.01
Diluted  $ 0.09  $ 0.08  $ 0.29  $ 1.01
         
Weighted average shares used in computing earnings per share:        
Basic  31,869  35,219  31,802  35,132
Diluted  32,265  35,663  32,163  35,363
         
Dividends per share:  $ --   $ --   $ --   $ 1.00
PIKE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
     
  March 31, June 30,
  2014 2013
  (Unaudited)  
     
ASSETS    
Current assets:    
Cash and cash equivalents  $ 3,770  $ 2,578
Accounts receivable, net  112,982  104,585
Costs and estimated earnings in excess of billings on uncompleted contracts  82,107  71,248
Inventories  14,672  14,396
Prepaid expenses and other  12,333  9,914
Deferred income taxes  7,480  8,720
Total current assets  233,344  211,441
Property and equipment, net  182,965  179,928
Goodwill  153,668  153,668
Other intangibles, net  69,309  74,841
Deferred loan costs, net  1,355  1,561
Other assets  2,989  2,335
Total assets  $ 643,630  $ 623,774
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities:    
Accounts payable  $ 30,195  $ 33,500
Accrued compensation  25,893  30,468
Billings in excess of costs and estimated earnings on uncompleted contracts  10,627  6,235
Accrued expenses and other  8,358  5,908
Current portion of insurance and claim accruals  4,813  12,121
Total current liabilities  79,886  88,232
Revolving credit facility  237,500  221,000
Insurance and claim accruals, net of current portion  4,663  4,958
Deferred compensation  7,281  6,431
Deferred income taxes  56,902  58,402
Other liabilities  3,603  2,916
Commitments and contingencies    
Shareholders' 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; 31,921 and 31,719 shares issued and outstanding at March 31, 2014 and June 30, 2013, respectively  6,424  6,424
Additional paid-in capital  179,587  176,988
Accumulated other comprehensive loss, net of taxes  (133)  (47)
Retained earnings  67,917  58,470
Total shareholders' equity  253,795  241,835
Total liabilities and shareholders' equity  $ 643,630  $ 623,774
 
PIKE CORPORATION
SEGMENT RESULTS
(Unaudited)
(In thousands)
         
  Three Months Ended March 31,  Nine Months Ended March 31,
         
  2014 2013 2014 2013
Construction        
Core services  $ 136,854  $ 143,215  $ 447,743  $ 449,634
Less: Intersegment revenues  (196)  (531)  (326)  (769)
         
Core services, net  136,658  142,684  447,417  448,865
Storm restoration services  32,074  24,034  57,527  149,629
         
Revenues, net  168,732  166,718  504,944  598,494
Income from operations  6,247  5,246  19,245  60,153
Depreciation and amortization  8,515  8,558  25,990  27,307
Purchases of property and equipment  5,841  9,747  28,968  26,904
 
 
Engineering        
Core services  $ 42,767  $ 40,530  $ 130,463  $ 140,843
Less: Intersegment revenues  (5,562)  (8,458)  (26,054)  (29,872)
         
Core services, net  37,205  32,072  104,409  110,971
Storm assessment and inspection services  1,646  1,432  2,396  9,038
         
Revenues, net  38,851  33,504  106,805  120,009
Income from operations  1,178  1,344  2,354  5,306
Depreciation and amortization  1,268  1,341  3,875  4,044
Purchases of property and equipment  329  142  580  689
 
 
Eliminations and Other Adjustments        
Revenues  $ --  $ --  $ --  $ --
Loss from operations  (108)  (102)  (301)  (1,976)
Depreciation and amortization  --  --  --  --
Purchases of property and equipment  --  --  --  --
 
 
Total        
Core services  $ 179,621  $ 183,745  $ 578,206  $ 590,477
Less: Intersegment revenues  (5,758)  (8,989)  (26,380)  (30,641)
         
Core services, net  173,863  174,756  551,826  559,836
Storm-related services  33,720  25,466  59,923  158,667
         
Revenues, net  207,583  200,222  611,749  718,503
Income from operations  7,317  6,488  21,298  63,483
Depreciation and amortization  9,783  9,899  29,865  31,351
Purchases of property and equipment  6,170  9,889  29,548  27,593
 
 
PIKE CORPORATION
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited)
(In thousands)
         
  Three Months Ended March 31,  Nine Months Ended March 31,
         
  2014 2013 2014 2013
Construction Segment        
Distribution and other  $ 98,284  $ 104,730  $ 326,583  $ 336,859
Transmission and substation  38,374  37,954  120,834  112,006
         
Core services, net  $ 136,658  $ 142,684  $ 447,417  $ 448,865
Storm restoration services  32,074  24,034  57,527  149,629
         
Revenues, net  $ 168,732  $ 166,718  $ 504,944  $ 598,494
         
Engineering Segment        
Core services, net  $ 37,205  $ 32,072  $ 104,409  $ 110,971
Storm assessment and inspection services  1,646  1,432  2,396  9,038
         
Revenues, net  $ 38,851  $ 33,504  $ 106,805  $ 120,009
         
Consolidated        
Core services, net  $ 173,863  $ 174,756  $ 551,826  $ 559,836
Storm-related services  33,720  25,466  59,923  158,667
         
Revenues, net  $ 207,583  $ 200,222  $ 611,749  $ 718,503
Investor Relations Contact:
Frank Milano
(336) 719-4622