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| 8-K - PIKE ELECTRIC CORPORATION 8-K - Pike Corp | a50395655.htm |
Exhibit 99.1
Pike Reports Record Full Year Core Revenue
Fourth quarter 2012 revenue growth of 40% in core services increases full year growth rate to 16% year-over-year
MOUNT AIRY, N.C.--(BUSINESS WIRE)--September 5, 2012--Pike Electric Corporation (NYSE: PIKE), one of the nation’s leading energy solutions providers, today reported fiscal fourth quarter and full year results for the period ended June 30, 2012. In the fourth quarter of fiscal year 2012, revenue totaled $178.6 million, an increase of 10% compared to $162.7 million in the year-ago period. Net income totaled $1.4 million, or $0.04 per diluted share, compared to $2.1 million, or $0.06 per diluted share, in the year-ago period.
Core services revenue increased for the fourth consecutive quarter to $171.0 million, up 40% compared to $122.0 million in the year-ago period. Strong year-over-year revenue growth rates were achieved in each of the Company’s core services, with distribution and other revenue up 46%, transmission revenue up 25%, and engineering and substation revenue up 35%. Storm restoration revenue totaled $7.6 million, compared to $40.7 million in the year-ago period. Last year’s heightened level of storm revenue was primarily associated with the massive tornadoes that tore through Alabama and Tennessee.
“The sustained growth in all areas of our engineering and construction business reflects improving demand trends across the U.S.,” said J. Eric Pike, Chairman and CEO of Pike. “The recent acquisition of UC Synergetic is expected to build upon this momentum in core energy solutions, will add to our storm response capabilities, and provides us with an engineering platform to serve the communications industry.”
Gross profit totaled $21.9 million in the fiscal fourth quarter 2012, or 12.3% of revenue. Gross profit totaled $23.2 million in the fiscal fourth quarter last year, or 14.2% of revenue. The higher gross margin in the year-ago period was attributable to the significant volume of storm restoration activity.
Fiscal year 2012 revenue totaled $685.2 million, an increase of 15% compared to $593.9 million in fiscal year 2011. Net income totaled $10.9 million, or $0.31 per diluted share, compared to $1.4 million, or $0.04 per diluted share in fiscal year 2011.
Core services revenue totaled $614.6 million in fiscal year 2012, up 16% compared to $529.3 million in fiscal year 2011. Storm restoration revenue totaled $70.6 million in fiscal year 2012, up 9% from $64.5 million in the prior year.
Mr. Pike remarked that, “The improvement in our full year 2012 results was primarily driven by growth in distribution revenue, which increased 26% year-over-year. With our current mix of engineering and construction services, particularly in the Western U.S., we expect more balanced growth across our full spectrum of core services in the future.”
Gross profit totaled $91.7 million in fiscal year 2012, up from $67.9 million in fiscal year 2011. As a percent of revenue, gross margin totaled 13.4% this year, up 200 basis points from 11.4% last year. The improved gross margin in 2012 reflects increased volume in the Company’s distribution business, increased storm revenues and improved margin percentages in all core services.
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 OPERATIONS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||
| Three months ended June 30, | Twelve months ended June 30, | ||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
| Revenues | $ | 178,581 | $ | 162,712 | $ | 685,169 | $ | 593,858 | |||||||||||||
| Cost of operations | 156,697 | 139,538 | 593,478 | 525,915 | |||||||||||||||||
| Gross profit | 21,884 | 23,174 | 91,691 | 67,943 | |||||||||||||||||
| General and administrative expenses | 18,123 | 17,498 | 66,219 | 57,675 | |||||||||||||||||
| (Gain) loss on sale of property and equipment | (338 | ) | 226 | (626 | ) | 751 | |||||||||||||||
| Income from operations | 4,099 | 5,450 | 26,098 | 9,517 | |||||||||||||||||
| Other expense (income): | |||||||||||||||||||||
| Interest expense | 1,287 | 1,514 | 7,304 | 6,608 | |||||||||||||||||
| Other, net | (36 | ) | (17 | ) | (63 | ) | (55 | ) | |||||||||||||
| Total other expense | 1,251 | 1,497 | 7,241 | 6,553 | |||||||||||||||||
| Income before income taxes | 2,848 | 3,953 | 18,857 | 2,964 | |||||||||||||||||
| Income tax expense | 1,484 | 1,903 | 7,974 | 1,563 | |||||||||||||||||
| Net income | $ | 1,364 | $ | 2,050 | $ | 10,883 | $ | 1,401 | |||||||||||||
| Earnings per share: | |||||||||||||||||||||
| Basic | $ | 0.04 | $ | 0.06 | $ | 0.31 | $ | 0.04 | |||||||||||||
| Diluted | $ | 0.04 | $ | 0.06 | $ | 0.31 | $ | 0.04 | |||||||||||||
| Shares used in computing earnings per share: | |||||||||||||||||||||
| Basic | 35,009 | 33,492 | 34,678 | 33,399 | |||||||||||||||||
| Diluted | 35,251 | 34,149 | 35,111 | 33,996 | |||||||||||||||||
| PIKE ELECTRIC CORPORATION | |||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||
| June 30 | June 30, | ||||||||||||||
| 2012 | 2011 | ||||||||||||||
| (Unaudited) | |||||||||||||||
| ASSETS | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ | 1,601 | $ | 311 | |||||||||||
| Accounts receivable from customers, net | 91,059 | 80,902 | |||||||||||||
| Costs and estimated earnings in excess of billings | |||||||||||||||
| on uncompleted contracts | 66,414 | 49,266 | |||||||||||||
| Inventories | 15,348 | 8,338 | |||||||||||||
| Prepaid expenses and other | 9,001 | 16,044 | |||||||||||||
| Deferred income taxes | 9,722 | 7,969 | |||||||||||||
| Total current assets | 193,145 | 162,830 | |||||||||||||
| Property and equipment, net | 174,655 | 177,682 | |||||||||||||
| Goodwill | 122,932 | 110,893 | |||||||||||||
| Other intangibles, net | 43,617 | 38,353 | |||||||||||||
| Deferred loan costs, net | 2,175 | 2,005 | |||||||||||||
| Other assets | 1,624 | 1,846 | |||||||||||||
| Total assets | $ | 538,148 | $ | 493,609 | |||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable | $ | 26,206 | $ | 20,079 | |||||||||||
| Accrued compensation | 28,703 | 25,474 | |||||||||||||
| Billings in excess of costs and estimated earnings | |||||||||||||||
| on uncompleted contracts | 5,318 | 12,224 | |||||||||||||
| Accrued expenses and other | 7,551 | 8,185 | |||||||||||||
| Current portion of insurance and claim accruals | 11,525 | 12,526 | |||||||||||||
| Total current liabilities | 79,303 | 78,488 | |||||||||||||
| Revolving credit facility | 123,000 | - | |||||||||||||
| Long-term debt | - | 99,000 | |||||||||||||
| Insurance and claim accruals, net of current portion | 3,956 | 6,621 | |||||||||||||
| Deferred compensation, net of current portion | 5,578 | 6,140 | |||||||||||||
| Deferred income taxes | 46,749 | 46,179 | |||||||||||||
| Other liabilities | 2,637 | 2,792 | |||||||||||||
| 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; 35,052 and 33,666 shares issued and outstanding | |||||||||||||||
| at June 30, 2012 and June 30, 2011, respectively | 6,428 | 6,427 | |||||||||||||
| Additional paid-in capital | 173,060 | 161,586 | |||||||||||||
| Accumulated other comprehensive loss, net of taxes | - | (178 | ) | ||||||||||||
| Retained earnings | 97,437 | 86,554 | |||||||||||||
| Total stockholders’ equity | 276,925 | 254,389 | |||||||||||||
| Total liabilities and stockholders’ equity | $ | 538,148 | $ | 493,609 | |||||||||||
| PIKE ELECTRIC CORPORATION | ||||||||||||||||||||||
| SUPPLEMENTAL REVENUE INFORMATION | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||
| Three months ended June 30, | Twelve months ended June 30, | |||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
| Distribution and other | $ | 110,944 | $ | 76,230 | $ | 418,780 | $ | 333,360 | ||||||||||||||
| Transmission | 21,717 | 17,354 | 72,536 | 78,194 | ||||||||||||||||||
| Engineering and substation | 38,326 | 28,437 | 123,307 | 117,781 | ||||||||||||||||||
| Core revenues | $ | 170,987 | $ | 122,021 | $ | 614,623 | $ | 529,335 | ||||||||||||||
| Storm restoration revenues | 7,594 | 40,691 | 70,546 | 64,523 | ||||||||||||||||||
| Total revenues | $ | 178,581 | $ | 162,712 | $ | 685,169 | $ | 593,858 | ||||||||||||||
CONTACT:
Pike Electric Corporation
Investor Relations Contact, 336-719-4622
IR@pike.com