 |
Press Release
 View printer-friendly version |
| << Back |
| Pike Electric Corporation Announces Fourth Quarter and Fiscal 2010 Results |
MT. AIRY, N.C., Sept 07, 2010 /PRNewswire via COMTEX/ -- Pike Electric Corporation (NYSE: PIKE), a leading energy solutions provider, today announced that revenues for its fourth quarter ended June 30, 2010 were $120.7 million, compared with $128.5 million for its 2009 fourth quarter. The Company had a net loss in the 2010 fourth quarter of $4.0 million or ($0.12) per diluted share, versus net income of $2.5 million or $0.07 per diluted share in the prior year's fourth quarter. Total revenues for the 2010 fiscal year were $504.1 million, compared with $613.5 million for the prior year. The comparative decrease primarily was the result of a spike in demand for storm restoration services in fiscal 2009 due to utility damages from hurricanes Gustav and Ike and severe Midwestern winter storms. Storm restoration revenues were $46.6 million for fiscal 2010 compared with $152.9 million in fiscal 2009. Core revenues decreased slightly to $457.5 million for fiscal 2010 from $460.6 million for fiscal 2009. While transmission, engineering and substation services grew in 2010, distribution services continued to be negatively impacted by the weak housing market and tight credit conditions, which have slowed utility growth and reduced maintenance spending. The net loss for the 2010 fiscal year was $13.5 million or ($0.41) per diluted share, compared with net income of $31.6 million or $0.96 per diluted share in fiscal 2009. Included in the fiscal 2010 net loss is an $8.9 million restructuring charge ($5.5 million or $0.17 per diluted share on an after-tax basis) consisting of $1.0 million for severance and other termination benefits and a $7.9 million non-cash write-down of fleet and other fixed assets to be disposed. The Company's Chairman and CEO, J. Eric Pike said, "While the Company's 2010 financial results are disappointing, we are beginning to see some improvement. Our siting, engineering, substation and transmission services continue to experience strong growth, and our distribution customers are adding headcount for the first time in two years, which may forecast a gradual improvement in our distribution services. We are not waiting for the economy to improve, but are doing the necessary things that will drive our growth and put us in a better position when the economy returns. For example, during the fourth quarter we reduced the term portion of our debt by $26 million. In addition, our recent acquisition of Klondyke Construction opens new opportunities to pursue large scale engineering, procurement and construction contracts and develop the renewable energy infrastructure in the Southwest region of the country." Mr. Pike added, "Building on these accomplishments, Pike recently added international engineering, procurement and distribution construction projects in Tanzania on the east coast of Africa through a strategic partnership. The expenses incurred this quarter related to establishing these ventures will provide geographic expansion and provide us with meaningful new opportunities for growth in the coming years. We are continuing to pursue other international opportunities that can open new markets to us and expand our geographic footprint." "While economic conditions make it difficult to predict the outcome of our 2011 fiscal year, we believe we are well positioned as we move forward," Mr. Pike concluded. Conference Call The Company will host a conference call at 11:00 a.m. Eastern Time today. The call can be accessed by dialing (888) 299-7209, or (719) 785-1754 for international callers. Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website at http://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, and entering the passcode 6759439. The replay will remain available until midnight Eastern on September 14, 2010. An on-demand replay of the conference call will also remain available in the "Investor Center" of the Company's website at http://www.pike.com/ for a limited time following the conclusion of the call. About Pike Pike Electric is a leading provider of energy solutions to investor-owned utilities, electric co-operatives and independent power providers in the United States and abroad. 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 http://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 include, among others, statements related to our international engineering, procurement and distribution construction projects in Tanzania, our geographical expansion providing us with meaningful new opportunities for growth in coming years, and our pursuit of other international opportunities. 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. Tables follow PIKE ELECTRIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three months ended Twelve months ended
June 30, June 30,
2010 2009 2010 2009
---- ---- ---- ----
Core revenues $116,861 $118,418 $457,448 $460,630
Storm restoration
revenues 3,874 10,044 46,636 152,846
Total revenues 120,735 128,462 504,084 613,476
Cost of operations 112,030 109,715 456,317 503,203
Gross profit 8,705 18,747 47,767 110,273
General and
administrative
expenses 13,732 13,641 51,994 50,248
Loss on sale and
impairment of
property and
equipment 37 167 1,239 2,116
Restructuring
expenses (38) - 8,945 -
(Loss) income from
operations (5,026) 4,939 (14,411) 57,909
Other expense
(income):
Interest expense 1,824 2,030 7,908 9,258
Other, net (70) (806) (298) (1,552)
Total other expense 1,754 1,224 7,610 7,706
----- ----- ----- -----
(Loss) income
before income
taxes (6,780) 3,715 (22,021) 50,203
Income tax
(benefit) expense (2,760) 1,257 (8,562) 18,634
Net (loss) income $(4,020) $2,458 $(13,459) $31,569
======= ====== ======== =======
Net (loss) earnings
per share:
Basic $(0.12) $0.07 $(0.41) $0.96
====== ===== ====== =====
Diluted $(0.12) $0.07 $(0.41) $0.94
====== ===== ====== =====
Shares used in
computing (loss)
earnings per
share:
Basic 33,169 33,058 33,132 33,023
====== ====== ====== ======
Diluted 33,169 33,773 33,132 33,741
====== ====== ====== ======
PIKE ELECTRIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
June
June 30, 30,
2010 2009
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $11,133 $43,820
Accounts receivable from customers, net 64,672 57,766
Costs and estimated earnings in excess of
billings
on uncompleted contracts 50,215 46,674
Inventories 6,401 7,718
Prepaid expenses and other 8,217 5,481
Assets held for sale 898 825
Deferred income taxes 10,526 13,649
------ ------
Total current assets 152,062 175,933
Property and equipment, net 194,885 222,539
Goodwill 114,778 106,865
Other intangibles, net 38,527 40,139
Deferred loan costs, net 3,021 2,028
Other assets 2,105 1,465
----- -----
Total assets $505,378 $548,969
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $17,484 $13,231
Accrued compensation 22,589 23,002
Billings in excess of costs and estimated
earnings
on uncompleted contracts 8,925 5,176
Accrued expenses and other 6,112 8,301
Current portion deferred compensation - 1,402
Current portion of insurance claim accruals 23,422 26,442
------ ------
Total current liabilities 78,532 77,554
Long-term debt 114,500 140,500
Insurance and claim accruals, net of current
portion 6,005 7,335
Deferred compensation, net of current portion 5,844 5,563
Deferred income taxes 48,170 57,251
Other liabilities 2,859 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; 33,544 and 33,462 shares issued
and outstanding
at June 30, 2010 and June 30, 2009,
respectively 6,427 6,427
Additional paid-in capital 158,030 153,035
Accumulated other comprehensive loss, net of
taxes (142) (1,109)
Retained earnings 85,153 98,612
------ ------
Total stockholders' equity 249,468 256,965
Total liabilities and stockholders' equity $505,378 $548,969
======== ========
SOURCE Pike Electric Corporation |
