MOUNT AIRY, N.C., Feb. 4, 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 second quarter 2014 results for the period ended December 31, 2013. Total revenue in the second quarter 2014 was $210.9 million, down 23% compared to the record high revenue of $273.7 million in the year-ago period. Net income in the second quarter 2014 totaled $5.7 million compared to net income of $23.6 million in the year-ago period. Diluted earnings per share totaled $0.18 in the second quarter 2014, compared to the record high $0.67 in the year-ago period.
Total core construction revenue in the second quarter 2014 increased 5% to $156.7 million from $149.8 million in the year ago period. Total core engineering revenue decreased to $31.6 million in the second quarter 2014 as compared to $40.9 million in the second quarter of 2013. Total storm-related revenue in the second quarter 2014 of $22.6 million resulted from scattered ice storms. By comparison, storm-related services totaled $83.0 million in the year-ago period, primarily due to the devastating impact of Hurricane Sandy.
"Fiscal second quarter financial comparisons against the year-ago period are challenging, largely due to the significant amount of storm revenue that resulted from Hurricane Sandy. We are continuing our solid momentum in our transmission business and remain focused on growth opportunities in distribution services," said J. Eric Pike, Chairman and CEO of Pike. "We are currently working to finalize the integration of our engineering business under the UC Synergetic brand and refocus our efforts to continue growing the engineering services business."
Conference Call
The Company will host a conference call at 9:00 a.m. Eastern on Wednesday, February 5. The call can be accessed by dialing (888) 438-5448, or (719) 325-2432 for international callers. The confirmation code for the live call is 3125672. 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 3125672. The dial-in replay will remain available until midnight Eastern on February 12. 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.
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 CORPORATION | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
| (Unaudited) | ||||
| (In thousands, except per share amounts) | ||||
| Three months ended December 31, | Six months ended December 31, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Revenues | $ 210,859 | $ 273,668 | $ 404,166 | $ 518,281 |
| Cost of operations | 179,947 | 214,434 | 353,358 | 422,125 |
| Gross profit | 30,912 | 59,234 | 50,808 | 96,156 |
| General and administrative expenses | 19,820 | 19,891 | 37,228 | 39,359 |
| Gain on sale of property and equipment | (86) | (68) | (401) | (198) |
| Income from operations | 11,178 | 39,411 | 13,981 | 56,995 |
| Other expense (income): | ||||
| Interest expense | 1,911 | 1,884 | 3,718 | 4,007 |
| Other, net | (235) | (4) | (244) | (25) |
| Total other expense | 1,676 | 1,880 | 3,474 | 3,982 |
| Income before income taxes | 9,502 | 37,531 | 10,507 | 53,013 |
| Income tax expense | 3,842 | 13,929 | 3,888 | 20,129 |
| Net income | $ 5,660 | $ 23,602 | $ 6,619 | $ 32,884 |
| Earnings per share: | ||||
| Basic | $ 0.18 | $ 0.67 | $ 0.21 | $ 0.94 |
| Diluted | $ 0.18 | $ 0.67 | $ 0.21 | $ 0.93 |
| Weighted average shares used in computing earnings per share: | ||||
| Basic | 31,785 | 35,129 | 31,769 | 35,089 |
| Diluted | 32,207 | 35,423 | 32,207 | 35,360 |
| Dividends per share: | $ -- | $ 1.00 | $ -- | $ 1.00 |
| PIKE CORPORATION | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except per share amounts) | ||
| December 31, | June 30, | |
| 2013 | 2013 | |
| (Unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 2,432 | $ 2,578 |
| Accounts receivable, net | 95,988 | 104,585 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 76,963 | 71,248 |
| Inventories | 16,124 | 14,396 |
| Prepaid expenses and other | 9,211 | 9,914 |
| Deferred income taxes | 5,652 | 8,720 |
| Total current assets | 206,370 | 211,441 |
| Property and equipment, net | 186,029 | 179,928 |
| Goodwill | 153,668 | 153,668 |
| Other intangibles, net | 71,155 | 74,841 |
| Deferred loan costs, net | 1,599 | 1,561 |
| Other assets | 2,977 | 2,335 |
| Total assets | $ 621,798 | $ 623,774 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 28,383 | $ 33,500 |
| Accrued compensation | 23,698 | 30,468 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 12,255 | 6,235 |
| Accrued expenses and other | 10,363 | 5,908 |
| Current portion of insurance and claim accruals | 6,154 | 12,121 |
| Total current liabilities | 80,853 | 88,232 |
| Revolving credit facility | 220,500 | 221,000 |
| Insurance and claim accruals, net of current portion | 4,529 | 4,958 |
| Deferred compensation | 7,205 | 6,431 |
| Deferred income taxes | 54,536 | 58,402 |
| Other liabilities | 3,552 | 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; | ||
| 31,811 and 31,719 shares issued and outstanding at December 31, 2013 and June 30, 2013, respectively | 6,425 | 6,424 |
| Additional paid-in capital | 179,222 | 176,988 |
| Accumulated other comprehensive loss, net of taxes | (113) | (47) |
| Retained earnings | 65,089 | 58,470 |
| Total shareholders' equity | 250,623 | 241,835 |
| Total liabilities and shareholders' equity | $ 621,798 | $ 623,774 |
| PIKE CORPORATION | ||||
| SEGMENT RESULTS | ||||
| (Unaudited) | ||||
| (In thousands) | ||||
| Three months ended December 31, | Six months ended December 31, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Construction | ||||
| Core services | $ 156,718 | $ 149,941 | $ 310,889 | $ 306,419 |
| Less: Intersegment revenues | (18) | (211) | (130) | (238) |
| Core services, net | 156,700 | 149,730 | 310,759 | 306,181 |
| Storm restoration services | 22,039 | 78,622 | 25,453 | 125,595 |
| Revenues, net | 178,739 | 228,352 | 336,212 | 431,776 |
| Income from operations | 11,684 | 38,327 | 12,998 | 54,907 |
| Depreciation and amortization | 8,789 | 9,678 | 17,475 | 18,749 |
| Purchases of property and equipment | 11,000 | 9,398 | 23,127 | 17,157 |
| Engineering | ||||
| Core services | $ 38,724 | $ 51,310 | $ 87,696 | $ 100,313 |
| Less: Intersegment revenues | (7,133) | (10,377) | (20,492) | (21,414) |
| Core services, net | 31,591 | 40,933 | 67,204 | 78,899 |
| Storm assessment and inspection services | 529 | 4,383 | 750 | 7,606 |
| Revenues, net | 32,120 | 45,316 | 67,954 | 86,505 |
| (Loss) income from operations | (395) | 1,888 | 1,176 | 3,962 |
| Depreciation and amortization | 1,295 | 1,389 | 2,607 | 2,703 |
| Purchases of property and equipment | 127 | 199 | 251 | 547 |
| Eliminations and Other Adjustments | ||||
| Revenues | $ -- | $ -- | $ -- | $ -- |
| Loss from operations | (111) | (804) | (193) | (1,874) |
| Depreciation and amortization | -- | -- | -- | -- |
| Purchases of property and equipment | -- | -- | -- | -- |
| Total | ||||
| Core services | $ 195,442 | $ 201,251 | $ 398,585 | $ 406,732 |
| Less: Intersegment revenues | (7,151) | (10,588) | (20,622) | (21,652) |
| Core services, net | 188,291 | 190,663 | 377,963 | 385,080 |
| Storm-related services | 22,568 | 83,005 | 26,203 | 133,201 |
| Revenues, net | 210,859 | 273,668 | 404,166 | 518,281 |
| Income from operations | 11,178 | 39,411 | 13,981 | 56,995 |
| Depreciation and amortization | 10,084 | 11,067 | 20,082 | 21,452 |
| Purchases of property and equipment | 11,127 | 9,597 | 23,378 | 17,704 |
| PIKE CORPORATION | ||||
| SUPPLEMENTAL REVENUE INFORMATION | ||||
| (Unaudited) | ||||
| (In thousands) | ||||
| Three months ended December 31, | Six months ended December 31, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Construction Segment | ||||
| Distribution and other | $ 112,850 | $ 111,591 | $ 228,299 | $ 232,129 |
| Transmission and substation | 43,850 | 38,139 | 82,460 | 74,052 |
| Core services, net | $ 156,700 | $ 149,730 | $ 310,759 | $ 306,181 |
| Storm restoration services | 22,039 | 78,622 | 25,453 | 125,595 |
| Revenues, net | $ 178,739 | $ 228,352 | $ 336,212 | $ 431,776 |
| Engineering Segment | ||||
| Core services, net | $ 31,591 | $ 40,933 | $ 67,204 | $ 78,899 |
| Storm assessment and inspection services | 529 | $ 4,383 | 750 | 7,606 |
| Revenues, net | $ 32,120 | $ 45,316 | $ 67,954 | $ 86,505 |
| Consolidated | ||||
| Core services, net | $ 188,291 | $ 190,663 | $ 377,963 | $ 385,080 |
| Storm-related services | 22,568 | 83,005 | 26,203 | 133,201 |
| Revenues, net | $ 210,859 | $ 273,668 | $ 404,166 | $ 518,281 |