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Press Release 
   

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:
(336) 719-4622
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,
 
   
2009
   
2008
 
Revenues
  $ 127,220     $ 185,506  
Cost of operations
    115,525       140,545  
                 
Gross profit
    11,695       44,961  
General and administrative expenses
    13,123       13,301  
Loss on sale and impairment of property and equipment
    661       242  
                 
(Loss) income from operations
    (2,089 )     31,418  
Other expense (income):
               
Interest expense
    2,371       2,335  
                 
Other, net
    (101 )     (207 )
Total other expense
    2,270       2,128  
                 
(Loss) income before income taxes
    (4,359 )     29,290  
                 
Income tax (benefit) expense
    (1,654 )     11,021  
                 
Net (loss) income
  $ (2,705 )   $ 18,269  
                 
(Loss) earnings per share:
               
Basic
  $ (0.08 )   $ 0.55  
Diluted
  $ (0.08 )   $ 0.54  
                 
Shares used in computing (loss) earnings per share:
               
Basic
    33,077       32,987  
Diluted
    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,
   
June 30,
 
   
2009
   
2009
 
 
 
(Unaudited)
       
ASSETS
           
Current assets:
           
Cash and cash equivalents
  $ 42,443     $ 43,820  
Accounts receivable from customers, net
    53,846       57,766  
Costs and estimated earnings in excess of billings on uncompleted contracts
    51,575       46,674  
Inventories
    7,959       7,718  
Prepaid expenses and other
    6,991       6,306  
Deferred income taxes
    12,170       13,649  
Total current assets
    174,984       175,933  
Property and equipment, net
    216,545       222,539  
Goodwill
    106,865       106,865  
Other intangibles, net
    39,168       40,139  
Deferred loan costs, net
    4,380       2,028  
Other assets
    1,464       1,465  
Total assets
  $ 543,406     $ 548,969  
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 17,607     $ 13,231  
Accrued compensation
    23,909       23,002  
Billings in excess of costs and estimated earnings on uncompleted contracts
    1,829       5,176  
Accrued expenses and other
    7,228       8,301  
Current portion deferred compensation
          1,402  
Current portion of insurance claim accruals
    24,412       26,442  
Total current liabilities
    74,985       77,554  
Long-term debt
    140,500       140,500  
Insurance and claim accruals, net of current portion
    7,825       7,335  
Deferred compensation, net of current portion
    5,632       5,563  
Deferred income taxes
    55,126       57,251  
Other liabilities
    3,364       3,801  
Commitments and contingencies
               
Stockholders’ equity:
               
Preferred stock, par value $0.001 per share; 100,000 shares authorized; no shares issued and outstanding
           
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
    6,427       6,427  
Additional paid-in capital
    154,216       153,035  
Accumulated other comprehensive loss, net of taxes
    (576 )     (1,109 )
Retained earnings
    95,907       98,612  
Total stockholders’ equity
    255,974       256,965  
Total liabilities and stockholders’ equity
  $ 543,406     $ 548,969