Attached files
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8-K - Pike Corp | v165395_8k.htm |
Press
Release
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FOR
IMMEDIATE RELEASE
Pike
Electric Reports Fiscal First Quarter Results
MT. AIRY,
N.C., November 9, 2009 – Pike Electric Corporation (NYSE: PIKE), a leading
energy solutions provider, today announced results for its fiscal first quarter
ended September 30, 2009. Total revenues in the first quarter of
fiscal 2010 were $127.2 million, compared to $185.5 million in the first quarter
of fiscal 2009. Core revenue increased to $124.7 million compared to
$107.8 million for the same quarter last year. Storm restoration
revenues declined significantly to $2.5 million compared to $77.7 million in the
first quarter of fiscal 2009. The Company reported a net loss this
quarter of $2.7 million, or $0.08 per diluted share, compared to net income of
$18.3 million, or $0.54 per diluted share, in the first quarter last
year.
“While
the Company has demonstrated strong results in our engineering, transmission,
and substation lines as a result of our energy solutions diversification, the
distribution work continues to underperform. The general economic
weakness and a longer than anticipated deferral of maintenance spending by our
customers is the longest and most significant we have
experienced. These facts, coupled with the lack of storm restoration
work, negatively impacted our earnings for the quarter. Our
expectation for a return in maintenance spending and a general economic recovery
influenced the decision to hold excess fleet assets and overhead infrastructure
resources. Based on the duration of the maintenance deferral and the
lack of visibility as to the timing of a return to historical maintenance
spending levels, management will be restructuring our distribution business to
reduce cost and realign the fleet and overhead infrastructure to better match
market conditions. These actions will return the distribution
work to profitable margins without impacting our other diversified service
lines. During this restructuring process, the Company will not be
updating revenue and earnings guidance,” stated J. Eric Pike, Chairman and
CEO.
Conference
Call
The
Company will host a conference call at 5:00 p.m. Eastern Time today. The call
can be accessed by dialing (888) 747-4666, or (913) 312-1472 for international
callers. Interested parties may also listen to a simultaneous webcast
of the conference call by logging onto the Company’s website at www.pike.com. Click
on the “Investor Center” home page and scroll down to “Upcoming Events” to
access the event.
A replay
will be available shortly after the call and can be accessed by dialing (888)
203-1112, or (719) 457-0820 for international callers. The passcode
for the replay is 7197477. The replay will be available until
midnight Eastern Time on November 16, 2009. An on-demand replay of
the conference call will also remain available in the “Investor Center” of the
Company’s website at www.pike.com for a
limited time following the conclusion of the call.
Pike
Electric Reports Fiscal First Quarter Results – Page 2 of 4
About
Pike Electric
Pike
Electric is a leading provider of energy solutions to over 200 investor-owned,
municipal and cooperative utilities in the United States. Our comprehensive
services include siting, permitting, engineering design, installation,
maintenance and repair of power delivery systems, including renewable energy
projects. 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.
Safe
Harbor
This
press release and other statements we make from time to time in the future may
contain forward-looking statements that relate to Pike Electric's plans,
objectives and future estimates. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 and
speak only as of the date of this release. 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 Pike Electric's Annual Reports on Form 10-K and in
its other periodic filings with the Securities and Exchange Commission. Pike
Electric makes no commitment to update any forward-looking statement or to
disclose any facts, events, or circumstances after the date of this release that
may affect the accuracy of any forward-looking statement, except as may be
required by applicable law.
Investor
Relations Contact:
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(336)
719-4622
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investorrelations@pike.com
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###
Pike
Electric Reports Fiscal First Quarter Results – Page 3 of 4
PIKE
ELECTRIC CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In
thousands, except per share amounts)
Three months ended September 30,
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2009
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2008
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Revenues
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$ | 127,220 | $ | 185,506 | ||||
Cost
of operations
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115,525 | 140,545 | ||||||
Gross
profit
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11,695 | 44,961 | ||||||
General
and administrative expenses
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13,123 | 13,301 | ||||||
Loss
on sale and impairment of property and equipment
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661 | 242 | ||||||
(Loss)
income from operations
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(2,089 | ) | 31,418 | |||||
Other
expense (income):
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Interest
expense
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2,371 | 2,335 | ||||||
Other,
net
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(101 | ) | (207 | ) | ||||
Total
other expense
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2,270 | 2,128 | ||||||
(Loss)
income before income taxes
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(4,359 | ) | 29,290 | |||||
Income
tax (benefit) expense
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(1,654 | ) | 11,021 | |||||
Net
(loss) income
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$ | (2,705 | ) | $ | 18,269 | |||
(Loss)
earnings per share:
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Basic
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$ | (0.08 | ) | $ | 0.55 | |||
Diluted
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$ | (0.08 | ) | $ | 0.54 | |||
Shares
used in computing (loss) earnings per share:
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Basic
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33,077 | 32,987 | ||||||
Diluted
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33,077 | 33,842 |
Pike
Electric Reports Fiscal First Quarter Results – Page 4 of 4
PIKE
ELECTRIC CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
thousands, except per share amounts)
September 30,
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June 30,
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2009
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2009
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(Unaudited)
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ASSETS
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Current
assets:
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Cash
and cash equivalents
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$ | 42,443 | $ | 43,820 | ||||
Accounts
receivable from customers, net
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53,846 | 57,766 | ||||||
Costs
and estimated earnings in excess of billings on uncompleted
contracts
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51,575 | 46,674 | ||||||
Inventories
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7,959 | 7,718 | ||||||
Prepaid
expenses and other
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6,991 | 6,306 | ||||||
Deferred
income taxes
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12,170 | 13,649 | ||||||
Total
current assets
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174,984 | 175,933 | ||||||
Property
and equipment, net
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216,545 | 222,539 | ||||||
Goodwill
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106,865 | 106,865 | ||||||
Other
intangibles, net
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39,168 | 40,139 | ||||||
Deferred
loan costs, net
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4,380 | 2,028 | ||||||
Other
assets
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1,464 | 1,465 | ||||||
Total
assets
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$ | 543,406 | $ | 548,969 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
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Current
liabilities:
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Accounts
payable
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$ | 17,607 | $ | 13,231 | ||||
Accrued
compensation
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23,909 | 23,002 | ||||||
Billings
in excess of costs and estimated earnings on uncompleted
contracts
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1,829 | 5,176 | ||||||
Accrued
expenses and other
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7,228 | 8,301 | ||||||
Current
portion deferred compensation
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— | 1,402 | ||||||
Current
portion of insurance claim accruals
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24,412 | 26,442 | ||||||
Total
current liabilities
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74,985 | 77,554 | ||||||
Long-term
debt
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140,500 | 140,500 | ||||||
Insurance
and claim accruals, net of current portion
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7,825 | 7,335 | ||||||
Deferred
compensation, net of current portion
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5,632 | 5,563 | ||||||
Deferred
income taxes
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55,126 | 57,251 | ||||||
Other
liabilities
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3,364 | 3,801 | ||||||
Commitments
and contingencies
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Stockholders’
equity:
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Preferred
stock, par value $0.001 per share; 100,000 shares authorized; no shares
issued and outstanding
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— | — | ||||||
Common
stock, par value $0.001 per share; 100,000 shares authorized; 33,474 and
33,462 shares issued and outstanding at September 30, 2009 and June 30,
2009, respectively
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6,427 | 6,427 | ||||||
Additional
paid-in capital
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154,216 | 153,035 | ||||||
Accumulated
other comprehensive loss, net of taxes
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(576 | ) | (1,109 | ) | ||||
Retained
earnings
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95,907 | 98,612 | ||||||
Total
stockholders’ equity
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255,974 | 256,965 | ||||||
Total
liabilities and stockholders’ equity
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$ | 543,406 | $ | 548,969 |