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| 8-K - Pike Corp | v210230_8k.htm |
Pike Electric Corporation Announces Second Quarter 2011 Results
MT. AIRY, N.C., Feb. 8, 2011 /PRNewswire/ -- Pike Electric Corporation (NYSE: PIKE), a leading energy solutions provider, today announced that revenue for its fiscal 2011 second quarter ended December 31, 2010 was $148.6 million, compared with $135.2 million for the comparable period last year. The Company had net income in the 2011 second quarter of $1.0 million or $0.03 per diluted share, compared with a net loss of $4.7 million or ($0.14) per diluted share in the prior year's second quarter.
Core revenues increased 24.4% to $145.9 million in the 2011 second quarter versus $117.2 million in the comparable 2010 period. All categories of our core business achieved revenue growth for the quarter. This growth was aided by our Klondyke acquisition, and substation and transmission EPC projects. Storm restoration revenues were $2.7 million for second quarter 2011, compared with $18.0 million in the prior year's second quarter.
Gross profit was $16.6 million for 2011 second quarter compared with $16.9 million in the prior year's second quarter. This slight reduction in gross profit was due to the decrease in higher margin storm restoration services and an increase in lower margin procurement services associated with growth in substation and transmission work.
Revenue for the first six months of 2011 was $277.3 million, compared with $262.4 million in the first six months of 2010. Net loss for the 2011 six month period was $1.3 million or $(0.04) per diluted share, versus a net loss in the first six months of 2010 of $7.4 million or $(0.22) per diluted share.
Core revenues for the first six months of 2011 increased 11.4% to $269.6 million versus $241.9 million in the comparable 2010 period. Storm restoration services decreased for the period to $7.7 million versus $20.5 million in the first six months of 2010.
Gross profit for the first six months of 2011 was $28.4 million compared with $28.6 million in the prior year's first six months. The slight decrease in gross profit was due to less storm restoration work, as well as crew start up costs, mostly in the first quarter of fiscal 2011.
Pike's Chairman and CEO, J. Eric Pike, commented that the Company's positive performance, particularly in the second quarter is the result of the actions Pike has taken to offset the turbulence in the economy and the changes in its markets.
"The value of our Klondyke acquisition and our overall diversification strategy has become increasingly evident. One of the greatest benefits is our broader service offering and geographic coverage. In addition, the costs reduction measures implemented last year in our distribution operations and support services have brought our costs in line with today's challenging market conditions.
"We continued to strengthen our balance sheet by reducing our debt position by $12 million during the second quarter, reaching a total debt reduction of $41.5 million over the past three quarters," Mr. Pike said.
Conference Call
The Company will host a conference call at 11:00 AM Eastern Time today. The call can be accessed by dialing (877) 604-9675, or (719) 325-2263 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 for international callers (719) 457-0820; the passcode for the replay is 6417122. The replay will remain available until midnight Eastern Time on February 15. 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.
About Pike
Pike is one of the largest providers of energy solutions for investor-owned, municipal and co-operative 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 constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may relate to Pike's 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 Pike's 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, Pike undertakes 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.
Financial Tables Follow
PIKE ELECTRIC CORPORATION | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(Unaudited) | |||||||||
(In thousands, except per share amounts) | |||||||||
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| Three months ended December 31, |
| Six months ended December 31, | |||||
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| 2010 |
| 2009 |
| 2010 |
| 2009 | |
Core revenues |
| $ 145,835 |
| $ 117,230 |
| $ 269,612 |
| $ 241,944 | |
Storm restoration revenues |
| 2,728 |
| 17,968 |
| 7,709 |
| 20,474 | |
Total revenues |
| $ 148,563 |
| $ 135,198 |
| $ 277,321 |
| $ 262,418 | |
Cost of operations |
| 131,925 |
| 118,262 |
| 248,961 |
| 233,787 | |
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Gross profit |
| 16,638 |
| 16,936 |
| 28,360 |
| 28,631 | |
General and administrative expenses |
| 12,748 |
| 13,131 |
| 26,304 |
| 26,254 | |
Loss on sale and impairment of property and equipment |
| 382 |
| 301 |
| 549 |
| 962 | |
Restructuring expenses |
| - |
| 8,924 |
| - |
| 8,924 | |
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Income (loss) from operations |
| 3,508 |
| (5,420) |
| 1,507 |
| (7,509) | |
Other expense (income): |
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Interest expense |
| 1,813 |
| 2,273 |
| 3,473 |
| 4,644 | |
Other, net |
| (5) |
| (78) |
| (14) |
| (179) | |
Total other expense |
| 1,808 |
| 2,195 |
| 3,459 |
| 4,465 | |
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Income (loss) before income taxes |
| 1,700 |
| (7,615) |
| (1,952) |
| (11,974) | |
Income tax expense (benefit) |
| 679 |
| (2,912) |
| (682) |
| (4,566) | |
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Net income (loss) |
| $ 1,021 |
| $ (4,703) |
| $ (1,270) |
| $ (7,408) | |
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Net income (loss) per share: |
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Basic |
| $ 0.03 |
| $ (0.14) |
| $ (0.04) |
| $ (0.22) | |
Diluted |
| $ 0.03 |
| $ (0.14) |
| $ (0.04) |
| $ (0.22) | |
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Shares used in computing income (loss) per share: |
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Basic |
| 33,386 |
| 33,134 |
| 33,329 |
| 33,106 | |
Diluted |
| 33,902 |
| 33,134 |
| 33,329 |
| 33,106 | |
PIKE ELECTRIC CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except per share amounts) | |||||||
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| December 31, |
| June 30, | |
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| 2010 |
| 2010 | |
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| (Unaudited) |
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| ASSETS |
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Current assets: |
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| Cash and cash equivalents |
| $ 12,993 |
| $ 11,133 | ||
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| Accounts receivable from customers, net |
| 73,818 |
| 64,672 | ||
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| Costs and estimated earnings in excess of billings |
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| on uncompleted contracts |
| 42,634 |
| 50,215 | |
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| Inventories |
| 7,100 |
| 6,401 | ||
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| Prepaid expenses and other |
| 12,290 |
| 9,115 | ||
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| Deferred income taxes |
| 9,331 |
| 10,526 | ||
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| Total current assets |
| 158,166 |
| 152,062 | |
Property and equipment, net |
| 181,338 |
| 194,885 | |||
Goodwill |
| 110,893 |
| 114,778 | |||
Other intangibles, net |
| 40,616 |
| 38,527 | |||
Deferred loan costs, net |
| 2,962 |
| 3,021 | |||
Other assets |
| 1,945 |
| 2,105 | |||
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| Total assets |
| $ 495,920 |
| $ 505,378 | |
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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| Accounts payable |
| $ 23,941 |
| $ 17,484 | ||
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| Accrued compensation |
| 18,437 |
| 22,589 | ||
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| Billings in excess of costs and estimated earnings |
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| on uncompleted contracts |
| 13,241 |
| 8,925 | |
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| Accrued expenses and other |
| 10,609 |
| 6,112 | ||
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| Current portion of insurance claim accruals |
| 21,701 |
| 23,422 | ||
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| Total current liabilities |
| 87,929 |
| 78,532 | |
Long-term debt |
| 99,000 |
| 114,500 | |||
Insurance and claim accruals, net of current portion |
| 6,010 |
| 6,005 | |||
Deferred compensation, net of current portion |
| 5,992 |
| 5,844 | |||
Deferred income taxes |
| 45,360 |
| 48,170 | |||
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Other liabilities |
| 2,358 |
| 2,859 | |||
Commitments and contingencies |
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Stockholders’ equity: |
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| Preferred stock, par value $0.001 per share; 100,000 shares |
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| authorized; no shares issued and outstanding |
| - |
| - | |
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| Common stock, par value $0.001 per share; 100,000 shares |
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| authorized; 33,600 and 33,544 shares issued and outstanding |
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| at December 31, 2010 and June 30, 2010, respectively |
| 6,427 |
| 6,427 | |
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| Additional paid-in capital |
| 159,177 |
| 158,030 | ||
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| Accumulated other comprehensive loss, net of taxes |
| (216) |
| (142) | ||
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| Retained earnings |
| 83,883 |
| 85,153 | ||
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| Total stockholders’ equity |
| 249,271 |
| 249,468 | |
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| Total liabilities and stockholders’ equity |
| $ 495,920 |
| $ 505,378 | |
CONTACT: Investor Relations, +1-336-719-4622, investorrelations@pike.com