MT. AIRY, N.C., Feb. 8 /PRNewswire-FirstCall/ -- Pike Electric Corporation (NYSE: PIKE), a leading energy solutions provider, today announced results for its fiscal second quarter ended December 31, 2009.  Total revenues were $135.2 million, compared to $144.6 million in the second quarter of fiscal 2009.  The Company reported a net loss of $4.7 million, or $(0.14) per diluted share, compared to net income of $2.6 million, or $0.08 per diluted share, in the second quarter last year.  The net loss this quarter reflects a pre-tax restructuring charge of $8.9 million ($5.4 million or $0.16 per diluted share on an after tax basis) primarily related to the Company's distribution business.  

Revenues for the six months ended December 31, 2009 totaled $262.4 million, compared to $330.1 million for the same six month period last year.  The Company reported a net loss for the six months ended December 31, 2009 of $7.4 million, or $(0.22) per diluted share.  The net loss for the six months ended December 31, 2009 includes the pre-tax restructuring charge of $8.9 million discussed above.  For the six months ended December 31, 2008, the Company reported net income of $20.8 million, or $0.62 per diluted share.  

Core revenue, which represents ongoing services, totaled $117.2 million this quarter and $241.9 million for the six months ended December 31, 2009.  By comparison, core revenue totaled $133.7 million and $241.5 million, respectively, for the three months and six months ended December 31, 2008.  The Company's engineering and substation and transmission revenues increased in both the first quarter and second quarter of fiscal 2010, compared to the same periods a year ago.  Offsetting these improvements were lower distribution revenues in the first quarter and second quarter of fiscal 2010, compared to the same periods last year due to the economic slowdown and the continued distribution maintenance deferral by many of our customers.  

Storm restoration revenue totaled $18.0 million in the second quarter and $20.5 million for the six months ended December 31, 2009.  By comparison, storm restoration revenue totaled $10.9 million and $88.6 million, respectively, for the three months and six months ended December 31, 2008.  Last year's performance reflects near-record storm restoration revenues totaling $77.7 million in the quarter ended September 30, 2008, primarily due to damages caused by Hurricanes Gustav and Ike.  Storm restoration revenue, which represents incremental revenue opportunities created by inclement weather conditions or natural disasters, are highly volatile and unpredictable.    

"We will continue to strategically diversify the Company's revenue sources and create more consistent cash flows from operating activities.  While we continued to demonstrate incremental improvement in these two areas this quarter, the gains were offset by lingering revenue and margin pressure in the distribution business caused by the economic slowdown and the resulting continued maintenance deferral by many of our customers," said J. Eric Pike, Chairman and CEO. "We took aggressive action this quarter to right size our fleet and reduce overhead and administrative costs in our distribution business which will improve the Company's overall business performance in the future."

The Company's $8.9 million pre-tax restructuring charge was largely a non-cash expense and primarily related to a reduction in the fleet of distribution-related equipment and headcount reductions in distribution operations and support services.  Of the total, approximately $1.0 million reflects cash-based severance and other termination benefits that will be paid out through the Company's fiscal year-end, June 30, 2010.  The physical disposition of assets is currently expected to continue over the next twelve months.    

Conference Call

The Company will host a conference call at 5:00 p.m. Eastern Time today. The call can be accessed by dialing (888) 500-6973, or (719) 325-2234 for international callers.  Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website at www.pike.com.  Click on the "Investor Center" home page and scroll down to "Upcoming Events" to access the event.  

A replay will be available shortly after the call and can be accessed by dialing (719) 457-0820; the passcode for the replay is 1678994.  The replay will remain available until midnight Eastern Time on February 15.  An on-demand replay of the conference call will also remain available in the "Investor Center" of the Company's website at www.pike.com for a limited time following the conclusion of the call.

About Pike

Pike Electric is a leading provider of energy solutions to over 200 investor-owned, municipal and cooperative utilities in the United States. Our comprehensive services include siting, permitting, engineering design, installation, maintenance and repair of power delivery systems, including renewable energy projects. 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.

Safe Harbor

This press release and other statements we make from time to time in the future may contain forward-looking statements that relate to Pike Electric's plans, objectives and future 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 other factors, please refer to the Risk Factor section of Pike Electric's Annual Reports on Form 10-K and in its other periodic 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.

    
    
                            PIKE ELECTRIC CORPORATION                        
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS             
                                   (Unaudited)                               
                     (In thousands, except per share amounts)                
                                                                             
                                                                 
                                      Three months ended    Six months ended  
                                           December 31,       December 31,   
                                          2009      2008      2009      2008 
                                          ----      ----      ----      ---- 
    Revenues                          $135,198  $144,586  $262,418  $330,093 
    Cost of operations                 118,262   126,150   233,787   266,696 
                                       -------   -------   -------   ------- 
                                                                             
    Gross profit                        16,936    18,436    28,631    63,397 
    General and administrative                                               
     expenses                           13,131    11,169    26,254    24,470 
    Loss on sale and impairment of                                           
     property and equipment                301       612       962       854 
    Restructuring expenses               8,924         -     8,924         - 
                                         -----       ---     -----       --- 
                                                                             
    (Loss) income from operations       (5,420)    6,655    (7,509)   38,073 
    Other expense (income):                                                  
      Interest expense                   2,273     2,730     4,644     5,066 
      Other, net                           (78)     (301)     (179)     (508)
                                           ---      ----      ----      ---- 
    Total other expense                  2,195     2,429     4,465     4,558 
                                         -----     -----     -----     ----- 
                                                                             
    (Loss) income before income                                              
     taxes                              (7,615)    4,226   (11,974)   33,515 
    Income tax (benefit) expense        (2,912)    1,655    (4,566)   12,675 
                                        ------     -----    ------    ------ 
                                                                             
    Net (loss) income                  $(4,703)   $2,571   $(7,408)  $20,840 
                                       =======    ======   =======   ======= 
                                                                             
    Net (loss) earnings per share:                                           
      Basic                             $(0.14)    $0.08    $(0.22)    $0.63 
                                        ======     =====    ======     ===== 
      Diluted                           $(0.14)    $0.08    $(0.22)    $0.62 
                                        ======     =====    ======     ===== 
                                                                             
    Shares used in computing (loss)
     earnings per share:                      
      Basic                             33,134    33,012    33,106    32,999 
                                        ======    ======    ======    ====== 
      Diluted                           33,134    33,699    33,106    33,747 
                                        ======    ======    ======    ====== 
    
    
    
                           PIKE ELECTRIC CORPORATION                   
                     CONDENSED CONSOLIDATED BALANCE SHEETS                 
                    (In thousands, except per share amounts)               
                                                                           
                                                      December 31, June 30,
                                                            2009     2009 
                                                            ----     ---- 
                                                      (Unaudited)          
                           ASSETS                                          
    Current assets:                                                        
      Cash and cash equivalents                           $32,866  $43,820 
      Accounts receivable from customers, net              64,624   57,766 
      Costs and estimated earnings in excess of billings                   
        on uncompleted contracts                           53,225   46,674 
      Inventories                                           7,403    7,718 
      Prepaid expenses and other                            5,338    5,481 
      Assets held for sale                                  5,361      825 
      Deferred income taxes                                11,989   13,649 
                                                           ------   ------ 
        Total current assets                              180,806  175,933 
    Property and equipment, net                           199,415  222,539 
    Goodwill                                              106,239  106,865 
    Other intangibles, net                                 38,710   40,139 
    Deferred loan costs, net                                3,999    2,028 
    Other assets                                            1,898    1,465 
                                                            -----    ----- 
        Total assets                                     $531,067 $548,969 
                                                         ======== ======== 
                                                                           
            LIABILITIES AND STOCKHOLDERS’ EQUITY                           
    Current liabilities:                                                   
      Accounts payable                                    $14,052  $13,231 
      Accrued compensation                                 20,148   23,002 
      Billings in excess of costs and estimated earnings                   
        on uncompleted contracts                            4,062    5,176 
      Accrued expenses and other                            6,604    8,301 
      Current portion deferred compensation                     -    1,402 
      Current portion of insurance claim accruals          25,056   26,442 
                                                           ------   ------ 
        Total current liabilities                          69,922   77,554 
    Long-term debt                                        140,500  140,500 
    Insurance and claim accruals, net of current                           
     portion                                                7,506    7,335 
    Deferred compensation, net of current portion           5,703    5,563 
    Deferred income taxes                                  51,407   57,251 
                                                                           
    Other liabilities                                       3,144    3,801 
    Commitments and contingencies                                          
    Stockholders’ equity:                                                  
      Preferred stock, par value $0.001 per share;
       100,000 shares authorized; no shares issued
       and outstanding                                          -        - 
      Common stock, par value $0.001 per share;
       100,000 shares authorized; 33,474 and 33,462
       shares issued and outstanding at September 30,
       2009 and June 30, 2009, respectively                 6,427    6,427 
      Additional paid-in capital                          155,254  153,035 
      Accumulated other comprehensive loss, net of                         
       taxes                                                    -   (1,109)
      Retained earnings                                    91,204   98,612 
                                                           ------   ------ 
        Total stockholders’ equity                        252,885  256,965 
                                                          -------  ------- 
        Total liabilities and stockholders’ equity       $531,067 $548,969 
                                                         ======== ======== 

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