Exhibit 99.1
PIKE ELECTRIC REPORTS SECOND QUARTER AND YEAR TO DATE FISCAL 2007 RESULTS
MT. AIRY, N.C., Feb. 6 /PRNewswire-FirstCall/ -- Pike Electric Corporation
(NYSE: PEC) today announced the results for the three and six months ended
December 31, 2006.
Second Quarter Results
Powerline revenues for the second quarter of fiscal 2007 increased 7.9% to
$134.3 million from $124.5 million for the prior year quarter on a 6.4%
increase in powerline billable hours. However, storm restoration revenues
totaled $14.1 million for the second quarter of fiscal 2007, down from $71.2
million in the same quarter of the prior year. Prior year storm restoration
revenues were driven by damage caused by one of the worst hurricane seasons on
record. As a result, total revenues for the second quarter of fiscal 2007
decreased 24.2% to $148.4 million from $195.7 million for the prior year
quarter. Average revenue producing headcount decreased 6% for the quarter
ended December 31, 2006 from the same period in the prior year.
Gross profit percentage for the second quarter of fiscal 2007 decreased to
16.5% compared to 20.1% for the prior year quarter. Gross profit percentage
was primarily impacted by the significant decrease in higher margin storm
restoration revenues, losses in Pike's Florida operation and an increase in
depreciation expense related to a change in estimated salvage values on fleet
equipment. The impact of these items was partially offset by a reduction in
workers' compensation expense.
Second quarter net income totaled $5.2 million, or $0.16 per diluted
share, compared to net income of $13.6 million, or $0.41 per diluted share,
for the second quarter of the prior year.
"Our efforts related to the management reorganization and improved
operational efficiencies have resulted in greater profitability than the first
quarter results. These results and the introduction of our services to new
customers during recent winter storms demonstrate Pike's continued focus on
financial performance and long-term growth," stated J. Eric Pike, chairman and
chief executive officer of Pike Electric.
Debt Repayment
The Company repaid $7.5 million of its term debt during the second quarter
of fiscal 2007 resulting in $236.5 million in term debt outstanding as of
December 31, 2006.
Six-Month Results
Powerline revenues for the first half of fiscal 2007 increased 9.6% to
$271.9 million from $248.0 million for the same period in the prior year on an
8.0% increase in powerline billable hours. However, storm restoration
revenues totaled $26.3 million for the first half of fiscal 2007, down from
$166.2 million in the same period of the prior year. Prior year storm
restoration revenues were driven by damage caused by Hurricanes Dennis,
Katrina, Rita and Wilma. As a result, total revenues for the first half of
fiscal 2007 decreased 28.0% to $298.2 million from $414.2 million for the same
period in the prior year. Average revenue producing headcount decreased 5%
for the six months ended December 31, 2006 from the same period in the prior
year.
For the six months ended December 31, 2006, net income totaled $6.8
million, or $0.21 per diluted share, compared to net income of $31.1 million,
or $0.99 per diluted share, for the six months ended December 31, 2005.
Outlook
"We recently accomplished the successful renegotiation of certain service
agreements in the Florida market. These service agreements were renewed with
improved terms and pricing. The new management responsible for our Florida
operations and the new pricing will return that market's financial performance
to its historic levels. The Company will continue to pursue improvements in
technology to achieve our financial goals and maximize our operational
performance. We will also continue to focus on improving our already strong
cash flow from operations and reducing our outstanding debt," stated J. Eric
Pike, chairman and chief executive officer.
Pike Electric continues to focus on long-term growth driven by three
factors:
1. Existing customer growth.
2. GDP growth -- the economy in Pike's service territory is strong.
3. Market share growth -- Pike continues to pursue profitable new customer
growth.
The Company will continue its customer service focus, its investment in
technology and its strength in storm restoration efforts. The timing and
significance of storm restoration revenues are not predictable.
Conference Call
Pike Electric's conference call to discuss its second quarter ended
December 31, 2006 results is scheduled for 10:30 a.m. EST today, February 6,
2007. To participate in the call, dial 866-314-9013 at least ten minutes
before the conference call begins and enter in participation code 95490899.
This call will also be available live and by replay over the Internet at
http://www.pike.com in the Investor Relations section.
About Pike Electric
Pike Electric is one of the largest providers of outsourced electric
distribution and transmission services in the United States. Its 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. The Company's 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. 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
factors, please refer to the Risk Factor section of Pike Electric's Annual
Report on Form 10-K for the fiscal year ending June 30, 2006 and in its other
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 AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par share amount)
December June 30
2006 2006
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 4,752 $ 3,391
Accounts receivable, net 62,751 66,629
Work completed not billed 47,138 56,430
Inventories 8,017 8,041
Prepaid and other 6,941 5,928
Deferred income taxes 10,605 12,460
Total current assets 140,204 152,879
Property and equipment, net 287,724 284,452
Goodwill 94,402 94,402
Other intangibles, net 44,754 49,978
Deferred loan costs, net 5,807 6,265
Other assets 1,794 1,990
Total assets $ 574,685 $ 589,966
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 36,125 $ 39,903
Current portion deferred compensation 2,415 10,614
Current portion of insurance claim accruals 25,748 18,867
Revolving credit facility - 4,500
Total current liabilities 64,288 73,884
Long-term debt, net of current portion 236,500 249,000
Insurance and claim accruals, net of
current portion 12,173 13,439
Deferred compensation, net of
current portion 9,994 10,378
Deferred income taxes 69,942 72,333
Other liabilities 159 200
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.001 per
share; 100,000 shares authorized; no
shares issued and outstanding at December
31, 2006 and June 30, 2006, respectively - -
Common stock, par value $0.001 per
share; 100,000 shares authorized;
32,805 and 32,577 shares issued and
outstanding at December 31, 2006
and June 30, 2006, respectively 6,426 6,426
Additional paid-in capital 140,244 135,869
Accumulated other comprehensive income (300) -
Retained earnings 35,259 28,437
Total stockholders' equity 181,629 170,732
Total liabilities and stockholders' equity $ 574,685 $ 589,966
PIKE ELECTRIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
December 31, December 31,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Revenues $ 148,369 $ 195,725 $ 298,224 $ 414,156
Cost of operations 123,857 156,291 253,972 326,067
Gross profit 24,512 39,434 44,252 88,089
General and administrative expenses 10,722 11,084 22,278 22,149
Loss on sale of property
and equipment 131 204 498 349
Income from operations 13,659 28,146 21,476 65,591
Other expense (income):
Interest expense 5,045 5,705 10,223 13,853
Other, net (58) (84) (116) (105)
Total other expense 4,987 5,621 10,107 13,748
Income before income taxes 8,672 22,525 11,369 51,843
Income tax expense 3,452 8,954 4,547 20,757
Net income $ 5,220 $ 13,571 $ 6,822 $ 31,086
Earnings per common share:
Basic $ 0.16 $ 0.43 $ 0.21 $ 1.03
Diluted $ 0.16 $ 0.41 $ 0.21 $ 0.99
Weighted average common shares
outstanding:
Basic 32,353 31,833 32,288 30,314
Diluted 33,242 33,025 33,233 31,488
SOURCE Pike Electric Corporation
-0- 02/06/2007
/CONTACT: Anthony Slater, CFO of Pike Electric Corporation,
+1-336-719-4237/
/Web site: http://www.pike.com /