Pike Electric Corporation Announces First Quarter 2011 Results

MT. AIRY, N.C., Nov. 9, 2010 /PRNewswire-FirstCall/ -- Pike Electric Corporation (NYSE: PIKE), a leading energy solutions provider, today announced that revenue for its fiscal 2011 first quarter ended September 30, 2010 was $128.8 million, compared with $127.2 million for the comparable period last year. The Company had a net loss in the 2011 first quarter of $2.3 million or ($0.07) per diluted share, compared with a net loss of $2.7 million or ($0.08) per diluted share in the prior year's first quarter.

Core revenues totaled $123.8 million in the 2011 first quarter versus $124.7 million in the comparable 2010 period.  Storm restoration revenues were $5.0 million for first quarter 2011 compared with $2.5 million in the prior year's first quarter.  

Cost of operations increased somewhat due to crew startup costs related to continued sequential quarter growth in overhead distribution. General and administrative expenses also were slightly higher, reflecting additional overhead costs related to Klondyke Construction which was acquired on June 30, 2010.  

Gross profit was unchanged at $11.7 million for both the 2011 first quarter and the prior year first quarter.

Pike's Chairman and CEO, J. Eric Pike said that over the past two and a half years, despite a significant recession, Pike has executed a strategy that has enabled a coast to coast expansion of our engineering and siting services while greatly increasing transmission and substation capabilities.  

"We have reduced our cost base exposure in underground distribution services, which have been negatively impacted by low demand over the last few years, and are experiencing progress in overhead distribution services, as our customers continue to add headcount.  Our Klondyke acquisition expanded our service territory into unionized areas of the Southwest.  Additionally, our recent partnership in Tanzania has proven the portability of our services into international markets and we are continuing to pursue additional opportunities.

"At the same time, we have added strength to our balance sheet by reducing our debt position by more than $3 million in the first quarter alone.  We believe our activities over the past several quarters will enable us not just to weather this recession, but to emerge from it as an even stronger and more profitable company," Mr. Pike said.  

Conference Call

The Company will host a conference call at 11:00 AM Eastern Time today.  The call can be accessed by dialing (866) 332-8507, or (706) 645-6644 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 (800) 642-1687, or (706) 645-9291 for international callers and entering the passcode 21555762. The replay will remain available until midnight Eastern on November 16, 2010. 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 is a leading provider of energy solutions to investor-owned utilities, electric co-operatives and independent power providers in the United States and abroad. 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's plans, objectives and future estimates. These statements include, among others, statements related to our international engineering, procurement and distribution construction projects in Tanzania, our geographical expansion providing us with meaningful new opportunities for growth in coming years, and our pursuit of other international opportunities.  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's Annual Reports on Form 10-K and in its other periodic filings with the Securities and Exchange Commission. Pike 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.

EBITDA GAAP Reconciliation

EBITDA is a non-GAAP financial measure that represents the sum of net income (loss) before income tax expense (benefit), interest expense and depreciation and amortization.  EBITDA is used internally when evaluating our operating performance and allows investors to make a more meaningful comparison between our core business operating results on a consistent basis over different periods of time, as well as with those of other similar companies.  Management believes that EBITDA, when viewed with our results under GAAP and the accompanying reconciliation, provides additional information that is useful for evaluating the operating performance of our core business without regard to potential distortions.  Additionally, management believes that EBITDA permits investors to gain an understanding of the factors and trends affecting our ongoing cash earnings, from which capital investments are made and debt is serviced.  However, EBITDA has limitations and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP, such as net loss or cash flow from operating activities as indicators of operating performance or liquidity.  This non-GAAP measure excludes certain cash expenses that we are obligated to make. In addition, other companies in our industry may calculate this non-GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure.  The table below provides a reconciliation between net loss and EBITDA.

SOURCE Pike Electric Corporation