MOUNT AIRY, N.C., April 11 /PRNewswire-FirstCall/ -- Pike Electric
Corporation (NYSE: PEC), one of the nation's largest providers of outsourced
electric distribution and transmission services, today announced preliminary
estimated financial results for the three months ended March 31, 2006.
Preliminary Estimated Third Quarter Results
For the third quarter ending March 31, 2006, the Company expects revenues
in the range of $154.0 - $157.0 million with approximately 5.0% derived from
storm restoration services. Compared to the same period in the prior year,
total revenues are expected to be flat to a 1.7% increase. Additionally, the
Company's total headcount increased 9.4% from approximately 6,400 to 7,000 at
the end of the respective periods. The increase in revenues is expected to be
at a rate less than the headcount increase because of reduced storm revenues
in the current quarter compared to the prior year, reduced crew efficiencies,
and an increase in non-productive time in the quarter due primarily to
weather.
The Company expects diluted earnings per share in the break-even range for
the third quarter ending March 31, 2006. The difference in the Company's
lower than expected results are primarily due to a reduction in Operating
Margins resulting from greater than expected increases in:
- Labor pricing
- Insurance costs
- Fuel costs
- New crew inefficiency
This pressure on operating margins is expected to continue for at least
the remainder of fiscal 2006. Partially offsetting these cost increases will
be lower interest expense related to $45 million of debt reduction during the
third quarter due to collection of receivables associated with storm activity
during the second quarter.
Financial results for the third quarter of 2006 have not yet been
finalized. Therefore, information regarding this period is subject to change,
and actual results for the quarter may differ from these preliminary estimated
results. Pike Electric will report third quarter results prior to holding a
conference call to discuss its third quarter, which has been scheduled for May
9th, 2006.
About Pike Electric
Pike Electric is one of the largest providers of outsourced electric
distribution and transmission services in the United States. Our core
activities consist of the maintenance, upgrade and extension of electric
distribution and sub-500 kilovolt transmission powerlines for more than 150
electric utilities, cooperatives and municipalities. Pike Electric services a
contiguous 19-state region that stretches from Pennsylvania in the north to
Florida in the southeast and Texas in the southwest and is a recognized leader
in storm restoration services. Our common stock is traded on the New York Stock Exchange under the symbol PEC. For further information regarding Pike
Electric, visit the company's website at www.pike.com.
Safe Harbor
This press release contains forward-looking statements that relate to Pike
Electric's plans, objectives and estimates. The terms "should," "believe,"
"plan," "expect," "anticipate," "estimate," "intend" and "project" and similar
words or expressions are intended to identify forward-looking statements.
Forward-looking statements include those contained in the "Outlook" section of
this release. 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. Pike Electric's business is subject to
numerous risks and uncertainties, including: that a significant portion of
revenues are from a small group of customers and these customers have no
obligation to assign work to us and these arrangements are generally
terminable on short notice; it may not be able to realize the anticipated
benefits of its acquisition in 2004 of Red Simpson; its storm restoration
revenues are highly volatile and unpredictable; its business is subject to
numerous hazards that could materially affect business results and current
insurance may not be adequate; and demand for services may be cyclical and
vulnerable to industry and economic downturn. These and other risks and
uncertainties detailed in the Risk Factor section of its Annual Report on Form
10-K for the fiscal year ending June 30, 2005 and in other filings with the
Securities and Exchange Commission could cause actual results and experience
to differ materially from those expressed or implied by any of these forward-
looking statements. To the extent permitted by applicable law, 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.
SOURCE Pike Electric Corporation
CONTACT: Mark Castaneda, CFO of Pike Electric Corporation,
+1-336-719-4379