Pike Electric Corporation Announces Fourth Quarter and Fiscal 2010 Results

MT. AIRY, N.C., Sept. 7 /PRNewswire-FirstCall/ -- Pike Electric Corporation (NYSE: PIKE), a leading energy solutions provider, today announced that revenues for its fourth quarter ended June 30, 2010 were $120.7 million, compared with $128.5 million for its 2009 fourth quarter. The Company had a net loss in the 2010 fourth quarter of $4.0 million or ($0.12) per diluted share, versus net income of $2.5 million or $0.07 per diluted share in the prior year's fourth quarter.    

Total revenues for the 2010 fiscal year were $504.1 million, compared with $613.5 million for the prior year.  The comparative decrease primarily was the result of a spike in demand for storm restoration services in fiscal 2009 due to utility damages from hurricanes Gustav and Ike and severe Midwestern winter storms.  Storm restoration revenues were $46.6 million for fiscal 2010 compared with $152.9 million in fiscal 2009.  

Core revenues decreased slightly to $457.5 million for fiscal 2010 from $460.6 million for fiscal 2009.  While transmission, engineering and substation services grew in 2010, distribution services continued to be negatively impacted by the weak housing market and tight credit conditions, which have slowed utility growth and reduced maintenance spending.

The net loss for the 2010 fiscal year was $13.5 million or ($0.41) per diluted share, compared with net income of $31.6 million or $0.96 per diluted share in fiscal 2009.  Included in the fiscal 2010 net loss is an $8.9 million restructuring charge ($5.5 million or $0.17 per diluted share on an after-tax basis) consisting of $1.0 million for severance and other termination benefits and a $7.9 million non-cash write-down of fleet and other fixed assets to be disposed.  

The Company's Chairman and CEO, J. Eric Pike said, "While the Company's 2010 financial results are disappointing, we are beginning to see some improvement.  Our siting, engineering, substation and transmission services continue to experience strong growth, and our distribution customers are adding headcount for the first time in two years, which may forecast a gradual improvement in our distribution services.   We are not waiting for the economy to improve, but are doing the necessary things that will drive our growth and put us in a better position when the economy returns.  For example, during the fourth quarter we reduced the term portion of our debt by $26 million.  In addition, our recent acquisition of Klondyke Construction opens new opportunities to pursue large scale engineering, procurement and construction contracts and develop the renewable energy infrastructure in the Southwest region of the country."

Mr. Pike added, "Building on these accomplishments, Pike recently added international engineering, procurement and distribution construction projects in Tanzania on the east coast of Africa through a strategic partnership.  The expenses incurred this quarter related to establishing these ventures will provide geographic expansion and provide us with meaningful new opportunities for growth in the coming years.  We are continuing to pursue other international opportunities that can open new markets to us and expand our geographic footprint."  

"While economic conditions make it difficult to predict the outcome of our 2011 fiscal year, we believe we are well positioned as we move forward," Mr. Pike concluded.

Conference Call

The Company will host a conference call at 11:00 a.m. Eastern Time today. The call can be accessed by dialing (888) 299-7209, or (719) 785-1754 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 (888) 203-1112 or for international callers (719) 457-0820, and entering the passcode 6759439.  The replay will remain available until midnight Eastern on September 14, 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 Electric 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 Electric'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 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.

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SOURCE Pike Electric Corporation