EXHIBIT 99.1
Pike Corporation Reports Fiscal Third Quarter 2014 Results
MOUNT AIRY, N.C., May 5, 2014 (GLOBE NEWSWIRE) -- Pike Corporation (NYSE:PIKE), one of the nation's largest specialty construction and engineering firms serving the electric power industry, today reported fiscal third quarter 2014 results for the period ended March 31, 2014. Total revenue in the third quarter 2014 was $207.6 million, up 4% compared to $200.2 million in the year-ago period. Net income in the third quarter 2014 totaled $2.8 million, compared to net income of $2.7 million in the year-ago period. Diluted earnings per share totaled $0.09 in the third quarter 2014, compared to $0.08 per diluted share in the year-ago period.
Core construction revenue in the third quarter 2014 totaled $136.6 million, down 4% from $142.7 million in the year-ago period. Core engineering revenue increased 16% to $37.2 million in the third quarter 2014, compared to $32.1 million in the year-ago period. Total storm-related revenue in the third quarter 2014 totaled $33.8 million, compared to $25.5 million in the year-ago period.
"While we did experience a higher volume of storm activity in the quarter, these storms were at lower margin than the second quarter storms. Additionally, wet and snowy weather negatively impacted core productivity in our distribution and transmission businesses during the quarter," stated J. Eric Pike, Chairman and CEO of Pike Corporation. "Our engineering business, which includes energy delivery and communications, had a strong revenue quarter and we anticipate engineering will be one of the catalysts of future revenue and earnings growth."
Conference Call
The Company will host a conference call at 9:00 a.m. Eastern on Tuesday, May 6. The call can be accessed by dialing (888) 504-7963, or (719) 325-2393 for international callers. The confirmation code for the live call is 5537029. 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 5537029. The dial-in replay will remain available until midnight Eastern on May 13. An on-demand replay of the webcast will remain online for a limited time following the conclusion of the call.
About Pike Corporation
Pike Corporation, formerly known as Pike Electric Corporation, is one of the nation's largest specialty construction and engineering firms serving 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.
| PIKE CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited) |
| (In thousands, except per share amounts) |
| | | | | |
| | Three Months Ended March 31, | Nine Months Ended March 31, |
| | | | | |
| | 2014 | 2013 | 2014 | 2013 |
| | | | | |
| Revenues | $ 207,583 | $ 200,222 | $ 611,749 | $ 718,503 |
| Cost of operations | 181,337 | 175,177 | 534,695 | 597,302 |
| | | | | |
| Gross profit | 26,246 | 25,045 | 77,054 | 121,201 |
| General and administrative expenses | 19,226 | 18,704 | 56,454 | 58,063 |
| Gain on sale of property and equipment | (297) | (147) | (698) | (345) |
| | | | | |
| Income from operations | 7,317 | 6,488 | 21,298 | 63,483 |
| Other expense (income): | | | | |
| Interest expense | 2,185 | 1,679 | 5,903 | 5,686 |
| Other, net | (6) | (5) | (250) | (30) |
| | | | | |
| Total other expense | 2,179 | 1,674 | 5,653 | 5,656 |
| | | | | |
| Income before income taxes | 5,138 | 4,814 | 15,645 | 57,827 |
| Income tax expense | 2,310 | 2,121 | 6,198 | 22,250 |
| | | | | |
| Net income | $ 2,828 | $ 2,693 | $ 9,447 | $ 35,577 |
| | | | | |
| Earnings per share: | | | | |
| Basic | $ 0.09 | $ 0.08 | $ 0.30 | $ 1.01 |
| Diluted | $ 0.09 | $ 0.08 | $ 0.29 | $ 1.01 |
| | | | | |
| Weighted average shares used in computing earnings per share: | | | | |
| Basic | 31,869 | 35,219 | 31,802 | 35,132 |
| Diluted | 32,265 | 35,663 | 32,163 | 35,363 |
| | | | | |
| Dividends per share: | $ -- | $ -- | $ -- | $ 1.00 |
| PIKE CORPORATION |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In thousands, except per share amounts) |
| | | |
| | March 31, | June 30, |
| | 2014 | 2013 |
| | (Unaudited) | |
| | | |
| ASSETS | | |
| Current assets: | | |
| Cash and cash equivalents | $ 3,770 | $ 2,578 |
| Accounts receivable, net | 112,982 | 104,585 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 82,107 | 71,248 |
| Inventories | 14,672 | 14,396 |
| Prepaid expenses and other | 12,333 | 9,914 |
| Deferred income taxes | 7,480 | 8,720 |
| Total current assets | 233,344 | 211,441 |
| Property and equipment, net | 182,965 | 179,928 |
| Goodwill | 153,668 | 153,668 |
| Other intangibles, net | 69,309 | 74,841 |
| Deferred loan costs, net | 1,355 | 1,561 |
| Other assets | 2,989 | 2,335 |
| Total assets | $ 643,630 | $ 623,774 |
| | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | |
| Current liabilities: | | |
| Accounts payable | $ 30,195 | $ 33,500 |
| Accrued compensation | 25,893 | 30,468 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 10,627 | 6,235 |
| Accrued expenses and other | 8,358 | 5,908 |
| Current portion of insurance and claim accruals | 4,813 | 12,121 |
| Total current liabilities | 79,886 | 88,232 |
| Revolving credit facility | 237,500 | 221,000 |
| Insurance and claim accruals, net of current portion | 4,663 | 4,958 |
| Deferred compensation | 7,281 | 6,431 |
| Deferred income taxes | 56,902 | 58,402 |
| Other liabilities | 3,603 | 2,916 |
| Commitments and contingencies | | |
| Shareholders' 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; 31,921 and 31,719 shares issued and outstanding at March 31, 2014 and June 30, 2013, respectively | 6,424 | 6,424 |
| Additional paid-in capital | 179,587 | 176,988 |
| Accumulated other comprehensive loss, net of taxes | (133) | (47) |
| Retained earnings | 67,917 | 58,470 |
| Total shareholders' equity | 253,795 | 241,835 |
| Total liabilities and shareholders' equity | $ 643,630 | $ 623,774 |
| |
| PIKE CORPORATION |
| SEGMENT RESULTS |
| (Unaudited) |
| (In thousands) |
| | | | | |
| | Three Months Ended March 31, | Nine Months Ended March 31, |
| | | | | |
| | 2014 | 2013 | 2014 | 2013 |
| Construction | | | | |
| Core services | $ 136,854 | $ 143,215 | $ 447,743 | $��449,634 |
| Less: Intersegment revenues | (196) | (531) | (326) | (769) |
| | | | | |
| Core services, net | 136,658 | 142,684 | 447,417 | 448,865 |
| Storm restoration services | 32,074 | 24,034 | 57,527 | 149,629 |
| | | | | |
| Revenues, net | 168,732 | 166,718 | 504,944 | 598,494 |
| Income from operations | 6,247 | 5,246 | 19,245 | 60,153 |
| Depreciation and amortization | 8,515 | 8,558 | 25,990 | 27,307 |
| Purchases of property and equipment | 5,841 | 9,747 | 28,968 | 26,904 |
| |
| |
| Engineering | | | | |
| Core services | $ 42,767 | $ 40,530 | $ 130,463 | $ 140,843 |
| Less: Intersegment revenues | (5,562) | (8,458) | (26,054) | (29,872) |
| | | | | |
| Core services, net | 37,205 | 32,072 | 104,409 | 110,971 |
| Storm assessment and inspection services | 1,646 | 1,432 | 2,396 | 9,038 |
| | | | | |
| Revenues, net | 38,851 | 33,504 | 106,805 | 120,009 |
| Income from operations | 1,178 | 1,344 | 2,354 | 5,306 |
| Depreciation and amortization | 1,268 | 1,341 | 3,875 | 4,044 |
| Purchases of property and equipment | 329 | 142 | 580 | 689 |
| |
| |
| Eliminations and Other Adjustments | | | | |
| Revenues | $ -- | $ -- | $ -- | $ -- |
| Loss from operations | (108) | (102) | (301) | (1,976) |
| Depreciation and amortization | -- | -- | -- | -- |
| Purchases of property and equipment | -- | -- | -- | -- |
| |
| |
| Total | | | | |
| Core services | $ 179,621 | $ 183,745 | $ 578,206 | $ 590,477 |
| Less: Intersegment revenues | (5,758) | (8,989) | (26,380) | (30,641) |
| | | | | |
| Core services, net | 173,863 | 174,756 | 551,826 | 559,836 |
| Storm-related services | 33,720 | 25,466 | 59,923 | 158,667 |
| | | | | |
| Revenues, net | 207,583 | 200,222 | 611,749 | 718,503 |
| Income from operations | 7,317 | 6,488 | 21,298 | 63,483 |
| Depreciation and amortization | 9,783 | 9,899 | 29,865 | 31,351 |
| Purchases of property and equipment | 6,170 | 9,889 | 29,548 | 27,593 |
| |
| |
| PIKE CORPORATION |
| SUPPLEMENTAL REVENUE INFORMATION |
| (Unaudited) |
| (In thousands) |
| | | | | |
| | Three Months Ended March 31, | Nine Months Ended March 31, |
| | | | | |
| | 2014 | 2013 | 2014 | 2013 |
| Construction Segment | | | | |
| Distribution and other | $ 98,284 | $ 104,730 | $ 326,583 | $ 336,859 |
| Transmission and substation | 38,374 | 37,954 | 120,834 | 112,006 |
| | | | | |
| Core services, net | $ 136,658 | $ 142,684 | $ 447,417 | $ 448,865 |
| Storm restoration services | 32,074 | 24,034 | 57,527 | 149,629 |
| | | | | |
| Revenues, net | $ 168,732 | $ 166,718 | $ 504,944 | $ 598,494 |
| | | | | |
| Engineering Segment | | | | |
| Core services, net | $ 37,205 | $ 32,072 | $ 104,409 | $ 110,971 |
| Storm assessment and inspection services | 1,646 | 1,432 | 2,396 | 9,038 |
| | | | | |
| Revenues, net | $ 38,851 | $ 33,504 | $ 106,805 | $ 120,009 |
| | | | | |
| Consolidated | | | | |
| Core services, net | $ 173,863 | $ 174,756 | $ 551,826 | $ 559,836 |
| Storm-related services | 33,720 | 25,466 | 59,923 | 158,667 |
| | | | | |
| Revenues, net | $ 207,583 | $ 200,222 | $ 611,749 | $ 718,503 |
CONTACT: Investor Relations Contact:
Frank Milano
(336) 719-4622
IR@pike.com