Pike Reports Revenue Increase of 59% and EPS of $0.67 per Diluted Share in Fiscal Second Quarter 2013
Results Represent Record Revenue and Significant Earnings Growth
MOUNT AIRY, N.C.--(BUSINESS WIRE)--
Pike Electric Corporation (NYSE: PIKE), one of the nation’s leading
energy solutions providers, today reported fiscal second quarter 2013
results for the period ended December 31, 2012. Total revenue in the
second quarter was a record high $273.7 million, up 59% compared to
$172.0 million in the year-ago period. Net income in the second quarter
totaled $23.6 million, or $0.67 per diluted share. By comparison, net
income totaled $4.9 million, or $0.14 per diluted share, in the year-ago
period.
Total revenue in the fiscal second quarter 2013 included storm-related
services of $83.0 million, compared to $21.9 million in the same quarter
last year. Gross profit totaled $59.2 million, or 21.6% of revenue. By
comparison, gross profit totaled $25.4 million, or 14.8% of revenue, in
the year-ago period. General and administrative expenses totaled $19.9
million, or 7.3% of revenue. By comparison, general and administrative
expenses totaled $15.9 million, or 9.2% of revenue, in the year-ago
period.
“All areas of our core business improved on a year-over-year basis,
contributing to this quarter’s record revenue. Our fiscal second quarter
financial performance also reflects a significant increase in the level
of storm restoration activity,” said J. Eric Pike, Chairman and CEO of
Pike. “Our year-to-date revenue of $518.3 million suggests fiscal 2013
will be a record year for Pike. In addition, earnings for the six months
ended December 31, 2012 are already three times higher than the $0.31
per diluted share we reported for the fiscal year ended June 30, 2012.”
The Company has adopted two reportable segments for financial reporting
purposes: Construction and All Other Operations. The accompanying
‘segment results’ table provides eliminations and other adjustments that
reconcile the segment revenues and income from operations amounts to
consolidated results.
Construction revenue totaled $228.4 million, up 46% compared to $156.3
million in the year-ago period. Income from operations in the
Construction segment totaled $38.3 million, compared to $9.1 million in
the year-ago period. All Other Operations revenue totaled a record high
$45.3 million, up 189% compared to $15.7 million in the year-ago period.
Income from operations in the All Other Operations segment totaled $1.9
million, compared to $0.7 million in the year-ago period.
Conference Call
The Company will host a conference call at 11:00 a.m. Eastern on
Wednesday, February 6. The call can be accessed by dialing (888)
359-3627, or (719) 457-1512 for international callers. The confirmation
code for the live call is 4239091. 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 4239091. The replay will remain available until midnight
Eastern on February 13. An on-demand replay of the conference call will
remain online for a limited time following the conclusion of the call.
About Pike Electric Corporation
Pike Electric Corporation is a leading provider of energy solutions to
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 ELECTRIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three months ended December 31,
Six months ended December 31,
2012
2011
2012
2011
Revenues
$
273,668
$
172,031
$
518,281
$
343,822
Cost of operations
214,434
146,616
422,125
294,554
Gross profit
59,234
25,415
96,156
49,268
General and administrative expenses
19,891
15,859
39,359
31,876
(Gain) loss on sale of property and equipment
(68
)
(40
)
(198
)
118
Income from operations
39,411
9,596
56,995
17,274
Other expense (income):
Interest expense
1,884
1,345
4,007
4,838
Other, net
(4
)
(9
)
(25
)
(13
)
Total other expense, net
1,880
1,336
3,982
4,825
Income before income taxes
37,531
8,260
53,013
12,449
Income tax expense
13,929
3,369
20,129
4,954
Net income
$
23,602
$
4,891
$
32,884
$
7,495
Earnings per share:
Basic
$
0.67
$
0.14
$
0.94
$
0.22
Diluted
$
0.67
$
0.14
$
0.93
$
0.21
Shares used in computing earnings per share:
Basic
35,129
34,663
35,089
34,421
Diluted
35,423
35,132
35,360
34,976
Dividends per share:
$
1.00
$
-
$
1.00
$
-
PIKE ELECTRIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
December 31,
June 30,
2012
2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
2,517
$
1,601
Accounts receivable, net
137,748
91,059
Costs and estimated earnings in excess of billings
on uncompleted contracts
77,100
66,414
Inventories
10,314
15,348
Prepaid expenses and other
7,907
9,001
Deferred income taxes
9,207
9,722
Total current assets
244,793
193,145
Property and equipment, net
175,116
174,655
Goodwill
153,657
122,932
Other intangibles, net
79,162
43,617
Deferred loan costs, net
1,933
2,175
Other assets
1,862
1,624
Total assets
$
656,523
$
538,148
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
27,527
$
26,206
Accrued compensation
30,115
28,703
Billings in excess of costs and estimated earnings
on uncompleted contracts
10,685
5,318
Accrued expenses and other
19,235
7,551
Current portion of insurance and claim accruals
15,228
11,525
Total current liabilities
102,790
79,303
Revolving credit facility
207,500
123,000
Insurance and claim accruals, net of current portion
3,957
3,956
Deferred compensation
6,058
5,578
Deferred income taxes
57,272
46,749
Other liabilities
2,929
2,637
Commitments and contingencies
Stockholders’ 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; 35,182 and 35,052 shares issued and outstanding
at December 31, 2012 and June 30, 2012, respectively
6,428
6,428
Additional paid-in capital
174,553
173,060
Accumulated other comprehensive loss, net of taxes
(121
)
-
Retained earnings
95,157
97,437
Total stockholders’ equity
276,017
276,925
Total liabilities and stockholders’ equity
$
656,523
$
538,148
PIKE ELECTRIC CORPORATION
SEGMENT RESULTS
(Unaudited)
(In thousands)
Three months ended December 31,
Six months ended December 31,
2012
2011
2012
2011
Construction
Core services
$
149,941
$
140,805
$
306,419
$
262,021
Less: Intersegment revenues
(211
)
(6,351
)
(238
)
(6,351
)
Core services, net
149,730
134,454
306,181
255,670
Storm restoration services
78,622
21,891
125,595
56,684
Revenues, net
228,352
156,345
431,776
312,354
Income from operations
38,327
9,110
54,907
17,698
Depreciation and amortization
9,678
9,478
18,749
18,756
Purchases of property and equipment
9,398
7,716
17,157
15,327
All Other Operations
Core services
$
51,310
$
17,693
$
100,313
$
33,475
Less: Intersegment revenues
(10,377
)
(2,007
)
(21,414
)
(2,007
)
Core services, net
40,933
15,686
78,899
31,468
Storm assessment and inspection services
4,383
-
7,606
-
Revenues, net
45,316
15,686
86,505
31,468
Income from operations
1,888
715
3,962
115
Depreciation and amortization
1,389
250
2,703
674
Purchases of property and equipment
199
-
547
-
Eliminations and Other Adjustments
Revenues
$
-
$
-
$
-
$
-
Loss from operations
(804
)
(229
)
(1,874
)
(539
)
Depreciation and amortization
-
-
-
-
Purchases of property and equipment
-
-
-
-
Total
Core services
$
201,251
$
158,498
$
406,732
$
295,496
Less: Intersegment revenues
(10,588
)
(8,358
)
(21,652
)
(8,358
)
Core services, net
190,663
150,140
385,080
287,138
Storm-related services
83,005
21,891
133,201
56,684
Revenues, net
273,668
172,031
518,281
343,822
Income from operations
39,411
9,596
56,995
17,274
Depreciation and amortization
11,067
9,728
21,452
19,430
Purchases of property and equipment
9,597
7,716
17,704
15,327
Pike Electric Corporation Investor Relations Contact: Frank
Milano, 336-719-4622 IR@pike.com
Press Release $PIKE Pike Electric Corporation
Results Represent Record Revenue and Significant Earnings Growth
MOUNT AIRY, N.C.--(BUSINESS WIRE)-- Pike Electric Corporation (NYSE: PIKE), one of the nation’s leading energy solutions providers, today reported fiscal second quarter 2013 results for the period ended December 31, 2012. Total revenue in the second quarter was a record high $273.7 million, up 59% compared to $172.0 million in the year-ago period. Net income in the second quarter totaled $23.6 million, or $0.67 per diluted share. By comparison, net income totaled $4.9 million, or $0.14 per diluted share, in the year-ago period.
Total revenue in the fiscal second quarter 2013 included storm-related services of $83.0 million, compared to $21.9 million in the same quarter last year. Gross profit totaled $59.2 million, or 21.6% of revenue. By comparison, gross profit totaled $25.4 million, or 14.8% of revenue, in the year-ago period. General and administrative expenses totaled $19.9 million, or 7.3% of revenue. By comparison, general and administrative expenses totaled $15.9 million, or 9.2% of revenue, in the year-ago period.
“All areas of our core business improved on a year-over-year basis, contributing to this quarter’s record revenue. Our fiscal second quarter financial performance also reflects a significant increase in the level of storm restoration activity,” said J. Eric Pike, Chairman and CEO of Pike. “Our year-to-date revenue of $518.3 million suggests fiscal 2013 will be a record year for Pike. In addition, earnings for the six months ended December 31, 2012 are already three times higher than the $0.31 per diluted share we reported for the fiscal year ended June 30, 2012.”
The Company has adopted two reportable segments for financial reporting purposes: Construction and All Other Operations. The accompanying ‘segment results’ table provides eliminations and other adjustments that reconcile the segment revenues and income from operations amounts to consolidated results.
Construction revenue totaled $228.4 million, up 46% compared to $156.3 million in the year-ago period. Income from operations in the Construction segment totaled $38.3 million, compared to $9.1 million in the year-ago period. All Other Operations revenue totaled a record high $45.3 million, up 189% compared to $15.7 million in the year-ago period. Income from operations in the All Other Operations segment totaled $1.9 million, compared to $0.7 million in the year-ago period.
Conference Call
The Company will host a conference call at 11:00 a.m. Eastern on Wednesday, February 6. The call can be accessed by dialing (888) 359-3627, or (719) 457-1512 for international callers. The confirmation code for the live call is 4239091. 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 4239091. The replay will remain available until midnight Eastern on February 13. An on-demand replay of the conference call will remain online for a limited time following the conclusion of the call.
About Pike Electric Corporation
Pike Electric Corporation is a leading provider of energy solutions to 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.
Total other expense, net
Construction
Less: Intersegment revenues
All Other Operations
Less: Intersegment revenues
Eliminations and Other Adjustments
Total
Less: Intersegment revenues
Pike Electric Corporation
Investor Relations Contact:
Frank Milano, 336-719-4622
IR@pike.com
Source: Pike Electric Corporation