- Company Updates Fiscal 2009 Outlook -
MT. AIRY, N.C., Feb. 3 /PRNewswire-FirstCall/ -- Pike Electric Corporation
(NYSE: PEC), one of the nation's largest providers of energy solutions,
including engineering, powerline construction, substation construction, EPC,
and renewable energy, today announced the results for its fiscal second
quarter ended December 31, 2008.
Fiscal 2009 Second Quarter Results
Total revenues for the second quarter of fiscal 2009 increased $1.5
million to $144.6 million, compared to $143.1 million in the second quarter of
fiscal 2008. Core revenues for the second quarter of fiscal 2009 increased
$10.2 million to $133.7 million, compared to $123.5 million for the second
quarter of fiscal 2008, including a $23.8 million contribution from EDS which
was acquired on September 1, 2008. Transmission revenues were up $4.3 million
or 42%. Distribution revenues were negatively impacted by reduced maintenance
spending across Pike's operating territory. Storm restoration revenues
totaled $10.9 million for the second quarter of fiscal 2009, down 44.4% from
the second quarter of fiscal 2008.
Gross profit for the second quarter of fiscal 2009 was $18.4 million, or
12.8% of revenue, compared to $24.5 million or 17.1% of revenue, for the
second quarter of fiscal 2008. The gross profit percentage decrease is due to
a decrease in equipment utilization due to a continued drop in utility
distribution projects, an increase in fuel costs primarily related to non-cash
mark-to-market derivative charges and lower storm revenues.
General and administrative expenses for the second quarter of fiscal 2009
were $11.2 million, or 7.7% of revenue, compared to $10.6 million, or 7.4% of
revenue, for the second quarter fiscal 2008. Second quarter included the
first full quarter of administrative costs related to the recently acquired
EDS business. Our general and administrative expenses were favorably impacted
in the quarter by the voluntary forfeiture of the 2009 fiscal year cash
incentives for our top seven management members. Those cash incentives would
have been due based on the established targets and estimated 2009 results. The
favorable impact of the forfeited cash incentives in the quarter totaled $1.3
million and included a reversal of $1.1 million in incentives recorded during
first quarter. Based on current estimates, the forfeiture will total an
additional savings of $0.6 million for the second half of fiscal 2009.
Interest expense decreased 27.7% to $2.7 million compared to the second
quarter of fiscal 2008 due to lower debt balances and lower interest rates.
Net income for the second quarter of fiscal 2009 totaled $2.6 million, or
$0.08 per diluted share, compared to net income of $5.1 million, or $0.15 per
diluted share, for the second quarter of fiscal 2008.
'Our second quarter was very challenging, as we had anticipated and
communicated,' said J. Eric Pike, Chairman and Chief Executive Officer of
Pike. 'The economic environment and tight credit markets continued to have a
strong impact on almost every industry in the country and our customers were
impacted as well.'
'In light of these challenges, we remain focused on affecting the areas of
our business we can control,' Pike added. 'We continue to position ourselves
as a leading national Energy Solutions company and have made progress on
marketing the additional services we are able to offer since the EDS
acquisition. We have also taken further actions to reduce costs and improve
efficiencies in every aspect of the business.'
'We are confident the steps we have been taking will allow us to enhance
our market position when spending returns to historical levels,' Pike
continued. 'While we expect the near term to remain difficult, particularly in
the distribution sector, we are confident in our newly diversified business
strategy. The drivers of long-term growth are still evident with the nation's
electrical infrastructure in need of upgrades and maintenance. We see the
outsourcing trend of our customers continuing, along with an increasing demand
for renewable energy solutions.
