MOUNT AIRY, N.C., Sept. 3, 2013 (GLOBE NEWSWIRE) -- Pike Electric Corporation (NYSE: PIKE ), one of the nation's leading energy solutions providers, today reported fiscal fourth quarter and full year 2013 results for the period ended June 30, 2013.
- Record full year revenue of $918.7 million, up 34% over the prior year and $191.2 million higher than prior record;
- Second consecutive record core revenue of $751.4 million, up 22% over the prior year;
- Second largest storm year on record, totaling $167.3 million;
- Record full year net income of $36.2 million, up 232% over the prior year; and,
- Expanded gross profit margin by 260 basis points to 16.0% in fiscal year 2013, the second consecutive annual increase 200 basis points or more.
Total revenue in the fourth quarter 2013 was $200.2 million, up 12% compared to $178.6 million in the year-ago period. Net income in the fourth quarter 2013 totaled $0.6 million, or $0.02 per diluted share, which included fees and expenses of $2.9 million (pre-tax), or $0.07 per diluted share, related to the secondary equity offering and concurrent share repurchase completed in May 2013. Most of these fees were non-deductible for income tax purposes. In the year-ago period, net income totaled $1.4 million, or $0.04 per diluted share.
Total revenue in the fiscal fourth quarter 2013 included storm-related services of $8.7 million, compared to $7.6 million in the same quarter last year. Gross profit increased to $26.0 million, or 13.0% of revenue. In the year-ago period, gross profit totaled $21.9 million, or 12.3% of revenue. General and administrative expenses totaled $18.7 million, or 9.3% of revenue, compared $18.1 million, or 10.1% of revenue, in the year-ago period.
"Our diversification strategy continues to serve us well. Organic year-over-year revenue growth in transmission construction totaled 44% this quarter, contributing to a record year of more than $100 million in that portion of our business," said J. Eric Pike, Chairman and CEO of Pike. "We are strongly positioned to benefit from the improving trends in our industry, including the ongoing recovery in distribution construction related to growth in the U.S. housing industry."
Construction revenue in the fiscal fourth quarter 2013 totaled $164.4 million, up 4% compared to $157.8 million in the year-ago period. Income from operations in the Construction segment totaled $9.0 million, compared to $4.3 million in the year-ago period. All Other Operations revenue in the fiscal fourth quarter 2013 totaled $35.8 million, up 72% compared to $20.8 million in the year-ago period. Income from operations in the All Other Operations segment totaled $(0.3) million, compared to $0.6 million in the year-ago period.
Full Year 2013
Total revenue for the fiscal year ended June 30, 2013 was a record $918.7 million, up 34% compared to $685.2 million in fiscal year 2012. Net income was a record $36.2 million, up 232% compared to $10.9 million in fiscal 2012. Earnings per diluted share totaled $1.03, up 232% compared to $0.31 per diluted share in fiscal year 2012. Earnings per diluted share included $0.10 of fees and expenses for the secondary equity offering and concurrent share repurchase completed during the year.
Core services revenue totaled a record $751.4 million, up 22% over last year's record $614.6 million. Revenue from storm-related services totaled $167.3 million, the second highest storm year in the Company's history. By comparison, storm-related revenue totaled $70.5 million in fiscal year 2012.
Gross profit totaled $147.2 million, up 61% from $91.7 million in fiscal year 2012. As a percent of revenue, gross margin totaled 16.0% this year, up 260 basis points compared to 13.4% last year. The gross margin improvement reflects the significant volume of storm activity in fiscal year 2013, plus year-over-year growth in all four categories of the Company's core services.
"By virtually every measure, fiscal 2013 was the best year in our Company's 69-year history. Core revenue increased 22% to $751.4 million, our second consecutive record year. Total revenue of $918.7 million was more than $191 million higher than our previous record. Excluding the 10-cents of secondary equity offering and other related costs we incurred, full year diluted earnings per share also exceeded the Company's previous record earnings performance," Mr. Pike remarked. "We also returned $75 million to shareholders through the combination of a special dividend in December 2012 and the share repurchase program we completed in May 2013."
Conference Call
The Company will host a conference call at 10:00 a.m. Eastern on Wednesday, September 4. The call can be accessed by dialing (888) 430-8694, or (719) 457-1512 for international callers. The confirmation code for the live call is 1761982. 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 1761982. The dial-in replay will remain available until midnight Eastern on September 11. An on-demand replay of the webcast 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 June 30, | Twelve months ended June 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Revenues | $ 200,188 | $ 178,581 | $ 918,691 | $ 685,169 |
| Cost of operations | 174,173 | 156,697 | 771,475 | 593,478 |
| Gross profit | 26,015 | 21,884 | 147,216 | 91,691 |
| General and administrative expenses | 18,712 | 18,123 | 75,579 | 66,219 |
| Secondary offering and other related costs | 2,942 | -- | 4,138 | -- |
| Gain on sale of property and equipment | (239) | (338) | (584) | (626) |
| Income from operations | 4,600 | 4,099 | 68,083 | 26,098 |
| Other expense (income): | ||||
| Interest expense | 1,698 | 1,287 | 7,384 | 7,304 |
| Other, net | (97) | (36) | (127) | (63) |
| Total other expense, net | 1,601 | 1,251 | 7,257 | 7,241 |
| Income before income taxes | 2,999 | 2,848 | 60,826 | 18,857 |
| Income tax expense | 2,383 | 1,484 | 24,633 | 7,974 |
| Net income | $ 616 | $ 1,364 | $ 36,193 | $ 10,883 |
| Earnings per share: | ||||
| Basic | $ 0.02 | $ 0.04 | $ 1.04 | $ 0.31 |
| Diluted | $ 0.02 | $ 0.04 | $ 1.03 | $ 0.31 |
| Shares used in computing earnings per share: | ||||
| Basic | 33,707 | 35,009 | 34,777 | 34,678 |
| Diluted | 34,289 | 35,251 | 35,057 | 35,111 |
| Dividends per share: | $ -- | $ -- | $ 1.00 | $ -- |
| PIKE ELECTRIC CORPORATION | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except per share amounts) | ||
| June 30, 2013 | June 30, 2012 | |
| (Unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 2,578 | $ 1,601 |
| Accounts receivable from customers, net | 104,585 | 91,059 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 71,248 | 66,414 |
| Inventories | 14,396 | 15,348 |
| Prepaid expenses and other | 9,914 | 9,001 |
| Deferred income taxes | 8,720 | 9,722 |
| Total current assets | 211,441 | 193,145 |
| Property and equipment, net | 179,928 | 174,655 |
| Goodwill | 153,668 | 122,932 |
| Other intangibles, net | 74,841 | 43,617 |
| Deferred loan costs, net | 1,561 | 2,175 |
| Other assets | 2,335 | 1,624 |
| Total assets | $ 623,774 | $ 538,148 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 33,500 | $ 26,206 |
| Accrued compensation | 30,468 | 28,703 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 6,235 | 5,318 |
| Accrued expenses and other | 5,908 | 7,551 |
| Current portion of insurance and claim accruals | 12,121 | 11,525 |
| Total current liabilities | 88,232 | 79,303 |
| Revolving credit facility | 221,000 | 123,000 |
| Insurance and claim accruals, net of current portion | 4,958 | 3,956 |
| Deferred compensation, net of current portion | 6,431 | 5,578 |
| Deferred income taxes | 58,402 | 46,749 |
| Other liabilities | 2,916 | 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; 31,719 and 35,052 shares issued and outstanding at June 30, 2013 and June 30, 2012, respectively | 6,424 | 6,428 |
| Additional paid-in capital | 176,988 | 173,060 |
| Accumulated other comprehensive loss, net of taxes | (47) | -- |
| Retained earnings | 58,470 | 97,437 |
| Total stockholders' equity | 241,835 | 276,925 |
| Total liabilities and stockholders' equity | $ 623,774 | $ 538,148 |
| PIKE ELECTRIC CORPORATION | ||||||||
| SEGMENT RESULTS | ||||||||
| (Unaudited) | ||||||||
| (In thousands) | ||||||||
| Three months ended June 30, | Twelve months ended June 30, | |||||||
| 2013 | 2012 | 2013 | 2012 | |||||
| Construction | ||||||||
| Core services | $ 156,032 | $ 151,846 | $ 605,666 | $ 552,048 | ||||
| Less: Intersegment revenues | 112 | (1,670) | (657) | (8,066) | ||||
| Core services, net | 156,144 | 150,176 | 605,009 | 543,982 | ||||
| Storm restoration services | 8,236 | 7,594 | 157,865 | 70,546 | ||||
| Revenues, net | 164,380 | 157,770 | 762,874 | 614,528 | ||||
| Income from operations | 8,995 | 4,337 | 69,148 | 25,885 | ||||
| Depreciation and amortization | 8,855 | 9,384 | 36,162 | 37,463 | ||||
| Purchases of property and equipment | 12,601 | 12,011 | 39,505 | 33,852 | ||||
| All Other Operations | ||||||||
| Core services | $ 42,933 | $ 25,511 | $ 183,775 | $ 78,602 | ||||
| Less: Intersegment revenues | (7,548) | (4,700) | (37,420) | (7,961) | ||||
| Core services, net | 35,385 | 20,811 | 146,355 | 70,641 | ||||
| Storm assessment and inspection services | 423 | -- | 9,462 | -- | ||||
| Revenues, net | 35,808 | 20,811 | 155,817 | 70,641 | ||||
| Income (loss) from operations | (253) | 571 | 5,053 | 2,177 | ||||
| Depreciation and amortization | 1,225 | (31) | 5,269 | 791 | ||||
| Purchases of property and equipment | 161 | -- | 850 | -- | ||||
| Eliminations and Other Adjustments | ||||||||
| Revenues | $ -- | $ -- | $ -- | $ -- | ||||
| Loss from operations | (4,142) | (809) | (6,118) | (1,964) | ||||
| Depreciation and amortization | -- | -- | -- | -- | ||||
| Purchases of property and equipment | -- | -- | -- | -- | ||||
| Total | ||||||||
| Core services | $ 198,965 | $ 177,357 | $ 789,441 | $ 630,650 | ||||
| Less: Intersegment revenues | (7,436) | (6,370) | (38,077) | (16,027) | ||||
| Core services, net | 191,529 | 170,987 | 751,364 | 614,623 | ||||
| Storm-related services | 8,659 | 7,594 | 167,327 | 70,546 | ||||
| Revenues, net | 200,188 | 178,581 | 918,691 | 685,169 | ||||
| Income from operations | 4,600 | 4,099 | 68,083 | 26,098 | ||||
| Depreciation and amortization | 10,080 | 9,353 | 41,431 | 38,254 | ||||
| Purchases of property and equipment | 12,762 | 12,011 | 40,355 | 33,852 | ||||
| PIKE ELECTRIC CORPORATION | ||||
| SUPPLEMENTAL REVENUE INFORMATION | ||||
| (Unaudited) | ||||
| (In thousands) | ||||
| Three months ended June 30, | Twelve months ended June 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Construction Segment | ||||
| Distribution and other | $ 112,337 | $ 110,944 | $ 449,196 | $ 418,780 |
| Transmission | 31,242 | 21,717 | 101,524 | 72,536 |
| Substation | 12,565 | 17,515 | 54,289 | 52,666 |
| Core services, net | $ 156,144 | $ 150,176 | $ 605,009 | $ 543,982 |
| Storm restoration services | 8,236 | 7,594 | 157,865 | 70,546 |
| Revenues, net | $ 164,380 | $ 157,770 | $ 762,874 | $ 614,528 |
| All Other Operations Segment | ||||
| Core services, net | $ 35,385 | $ 20,811 | $ 146,355 | $ 70,641 |
| Storm assessment and inspection services | 423 | -- | 9,462 | -- |
| Revenues, net | $ 35,808 | $ 20,811 | $ 155,817 | $ 70,641 |
Investor Relations Contact: Frank Milano (336) 719-4622
