Pike Electric Reports Fiscal Third Quarter Results

MT. AIRY, N.C., May 10 /PRNewswire-FirstCall/ -- Pike Electric Corporation (NYSE: PIKE), a leading energy solutions provider, today announced results for its fiscal third quarter ended March 31, 2010.  Total revenues were $120.9 million, compared to $154.9 million in the third quarter of fiscal 2009.  The Company had a net loss of $2.0 million, or $(0.06) per diluted share, compared to net income of $8.3 million, or $0.25 per diluted share, in the third quarter last year.    

Total revenues in the nine months ended March 31, 2010 were $383.3 million, compared to $485.0 million in the same period last year.  The Company had a net loss of $9.4 million, or $(0.28) per diluted share in the nine months ended March 31, 2010, compared to net income of $29.1 million, or $0.86 per diluted share in the same period last year.  The net loss for the nine months ended March 31, 2010 includes a pre-tax restructuring charge of $9.0 million ($5.5 million or $0.17 per diluted share on an after tax basis) primarily related to the Company's distribution business.  

Core revenue, which represents ongoing services, totaled $98.6 million this quarter and $340.6 million for the nine months ended March 31, 2010.  By comparison, core revenue totaled $100.7 million and $342.2 million, respectively, for the three months and nine months ended March 31, 2009.  Lower distribution revenues continued to more than offset the Company's combined growth in engineering, substation and transmission revenues.  

Storm restoration revenue totaled $22.3 million in the third quarter and $42.7 million for the nine months ended March 31, 2010.  By comparison, storm restoration revenue totaled $54.2 million and $142.8 million, respectively, for the three months and nine months ended March 31, 2009, which included near-record storm restoration revenues due to damages caused by Midwest winter storms in the third quarter and Hurricanes Gustav and Ike in the first quarter of fiscal 2009.  Storm restoration revenue, which represents incremental revenue opportunities created by inclement weather conditions or natural disasters, are highly volatile and unpredictable.    

"Our diversified services, including siting, engineering, substation and transmission, continue to grow on a combined basis and provide new market opportunities.  We are focused on strengthening the Company by diversifying our revenue mix which includes renewable opportunities.  Savings from our restructuring efforts completed at the end of the second quarter helped mitigate some of the near-term margin pressure and will continue to benefit the business going forward," said J. Eric Pike, Chairman and CEO.

Mr. Pike added, "Our distribution business remains under significant pressure due to continued reduction in utility distribution spending and significant productivity difficulties during an extremely wet winter in our service territory.  However, we are starting to see signs of a rebound in customer distribution spending and are adding headcount.  Along with improved business levels, we will appropriately control costs and improve margins in the coming quarters."

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) 378-4380, or (719) 325-2329 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 4855235.  The replay will remain available until midnight Eastern on May 17.  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.

SOURCE Pike Electric Corporation