MT. AIRY, N.C., Nov. 9 /PRNewswire-FirstCall/ -- Pike Electric Corporation (NYSE:PIKE), a leading energy solutions provider, today announced results for its fiscal first quarter ended September 30, 2009. Total revenues in the first quarter of fiscal 2010 were $127.2 million, compared to $185.5 million in the first quarter of fiscal 2009. Core revenue increased to $124.7 million compared to $107.8 million for the same quarter last year. Storm restoration revenues declined significantly to $2.5 million compared to $77.7 million in the first quarter of fiscal 2009. The Company reported a net loss this quarter of $2.7 million, or $0.08 per diluted share, compared to net income of $18.3 million, or $0.54 per diluted share, in the first quarter last year. "While the Company has demonstrated strong results in our engineering, transmission, and substation lines as a result of our energy solutions diversification, the core distribution work continues to underperform. The general economic weakness and a longer than anticipated deferral of maintenance spending by our customers is the longest and most significant we have experienced. These facts, coupled with the lack of storm restoration work, negatively impacted our earnings for the quarter. Our expectation for a return in maintenance spending and a general economic recovery influenced the decision to hold excess fleet assets and overhead infrastructure resources. Based on the duration of the maintenance deferral and the lack of visibility as to the timing of a return to historical maintenance spending levels, management will be restructuring our distribution model to reduce cost and realign the fleet and overhead infrastructure to better match market conditions. These actions will return the core distribution work to more historical profit margins without impacting our other diversified service lines. During this restructuring process, the company will not be updating revenue and earnings guidance," stated J. Eric Pike, Chairman and CEO. 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) 747-4666, or (913) 312-1472 for international callers. Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website at http://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 (719) 457-0820 for international callers. The passcode for the replay is 7197477. The replay will be available until midnight Eastern Time on November 16, 2009. An on-demand replay of the conference call will also remain available in the "Investor Center" of the Company's website at http://www.pike.com/ for a limited time following the conclusion of the call. About Pike Electric 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 http://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 September 30, 2009 2008 ---- ---- Revenues $127,220 $185,506 Cost of operations 115,525 140,545 ------- ------- Gross profit 11,695 44,961 General and administrative expenses 13,123 13,301 Loss on sale and impairment of property and equipment 661 242 --- --- (Loss) income from operations (2,089) 31,418 Other expense (income): Interest expense 2,371 2,335 Other, net (101) (207) ---- ---- Total other expense 2,270 2,128 ----- ----- (Loss) income before income taxes (4,359) 29,290 Income tax (benefit) expense (1,654) 11,021 ------ ------ Net (loss) income $(2,705) $18,269 ======= ======= (Loss) earnings per share: Basic $(0.08) $0.55 ====== ===== Diluted $(0.08) $0.54 ====== ===== Shares used in computing (loss) earnings per share: Basic 33,077 32,987 ====== ====== Diluted 33,077 33,842 ====== ====== PIKE ELECTRIC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) September 30, June 30, 2009 2009 ---- ---- ASSETS (Unaudited) Current assets: Cash and cash equivalents $42,443 $43,820 Accounts receivable from customers, net 53,846 57,766 Costs and estimated earnings in excess of billings on uncompleted contracts 51,575 46,674 Inventories 7,959 7,718 Prepaid expenses and other 6,991 6,306 Deferred income taxes 12,170 13,649 ------ ------ Total current assets 174,984 175,933 Property and equipment, net 216,545 222,539 Goodwill 106,865 106,865 Other intangibles, net 39,168 40,139 Deferred loan costs, net 4,380 2,028 Other assets 1,464 1,465 ----- ----- Total assets $543,406 $548,969 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $17,607 $13,231 Accrued compensation 23,909 23,002 Billings in excess of costs and estimated earnings on uncompleted contracts 1,829 5,176 Accrued expenses and other 7,228 8,301 Current portion deferred compensation -- 1,402 Current portion of insurance claim accruals 24,412 26,442 ------ ------ Total current liabilities 74,985 77,554 Long-term debt 140,500 140,500 Insurance and claim accruals, net of current portion 7,825 7,335 Deferred compensation, net of current portion 5,632 5,563 Deferred income taxes 55,126 57,251 Other liabilities 3,364 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 154,216 153,035 Accumulated other comprehensive loss, net of taxes (576) (1,109) Retained earnings 95,907 98,612 ------ ------ Total stockholders' equity 255,974 256,965 ------- ------- Total liabilities and stockholders' equity $543,406 $548,969 ======== ======== DATASOURCE: Pike Electric Corporation CONTACT: Investor Relations, Pike Electric Corporation, +1-336-719-4622, Web Site: http://www.pike.com/

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