Pike Electric Reports Third Quarter Fiscal 2009 Results

MT. AIRY, N.C., May 11 /PRNewswire-FirstCall/ -- Pike Electric Corporation
(NYSE: PIKE), one of the largest providers of energy solutions in the United
States, providing engineering, powerline and substation construction, EPC, and
renewable energy services, today announced the results for its fiscal third
quarter ended March 31, 2009.

Fiscal 2009 Third Quarter Results
Total revenues for the third quarter of fiscal 2009 increased 17.9% to $154.9
million, compared to $131.4 million in the third quarter of fiscal 2008. Core
powerline revenues for the third quarter of fiscal 2009 were $100.7 compared
to $120.3 million for the third quarter of fiscal 2008, including a $23.7
million contribution from EDS which was acquired on September 1, 2008.
Transmission revenues were up $5.6 million or 67.0%. Distribution revenues
were negatively impacted by reduced maintenance spending across Pike's
operating territory. Storm restoration revenues totaled $54.2 million for the
third quarter of fiscal 2009, a $43.1 million increase from the third quarter
of fiscal 2008 due to our recent work on the Midwest winter storms.

Gross profit for the third quarter of fiscal 2009 was $28.1 million, or 18.2%
of revenue, compared to $20.8 million or 15.8% of revenue, for the third
quarter of fiscal 2008. The gross profit percentage increase is primarily due
to the greater amount of higher-margin storm restoration revenues.

General and administrative expenses for the third quarter of fiscal 2009 were
$12.1 million, or 7.8% of revenue, compared to $10.4 million, or 7.9% of
revenue, for the third quarter fiscal 2008. The increase is primarily due to
increased administrative costs of approximately $0.9 million related to the
acquired EDS business.

Interest expense decreased 35.0% to $2.2 million compared to the third quarter
of fiscal 2008 primarily due to lower debt balances and lower interest rates.

Net income for the third quarter of fiscal 2009 totaled $8.3 million, or $0.25
per diluted share, compared to net income of $4.3 million, or $0.13 per
diluted share, for the third quarter of fiscal 2008.

"Pike's flexible business model and strength in providing storm restoration
work continues to put us in a leading position with our customers in the
aftermath of severe winter ice storms," said J. Eric Pike, Chairman and Chief
Executive Officer of Pike.

"Our core business continues to broaden in scope and services as we position
Pike as one of the nation's largest energy solutions providers.

Pike has taken proactive steps to weather the challenging business environment
and position ourselves for an improved economy. I am confident in Pike's
strategic direction and our ability to capitalize on upcoming opportunities,"
Pike concluded.

Nine Months Ended March 31, 2009 Results
Total revenues for the nine months ended March 31, 2009 were $485.0 million,
as compared to $414.2 million for the first nine months of fiscal 2008. Core
powerline revenues were $342.2 million for the nine months ended March 31,
2009, as compared to $378.7 million for the same period in fiscal 2008. Storm
restoration revenues totaled $142.8 million for the nine-month period compared
to $35.5 million for the same period in fiscal 2008. Gross profit totaled
$91.5 million for the nine months ended March 31, 2009, as compared to $68.5
million for the same period in fiscal 2008. Gross profit as a percentage of
revenue increased to 18.9% from 16.5% in fiscal year 2008 due primarily to the
significant increase in higher-margin storm restoration revenues. Net income
for the first nine months of fiscal 2009 totaled $29.1 million, or $0.86 per
diluted share, compared to net income of $14.6 million, or $0.44 per diluted
share, for the first nine months of fiscal 2008.

Cash Flow
The Company has generated significant cash over the last 24 months, including
$74.0 million used for debt reduction, $22.6 million for the purchase of EDS,
$32.0 million for capital expenditures and a $24.9 million increase in the
Company's cash balance.

Outlook
The Company continues to expect total revenues for its fiscal year ending June
30, 2009 to range from $600 million to $620 million. The Company is narrowing
its expected diluted earnings per share range to $0.90 to $0.95 from its
previous range of $0.85 to $0.95.

Conference Call
Pike Electric will host a conference call today to discuss financial results
for its fiscal third quarter ended March 31, 2009 at 5:00 p.m. EDT. This call
is being web cast and can be accessed by visiting the Investor Center section
of the Company's website at www.pike.com. The call can be accessed live over
the phone by dialing (888) 205-6743, or (913) 981-5567 for international
callers. 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. The pass code for the replay is 4452532. It will be available
until May 18, 2009.

About Pike Electric
Pike is one of the largest providers of energy solutions in the United States,
providing engineering, powerline and substation construction, EPC, and
renewable energy services. The Company is also a recognized leader in storm
restoration. The Company's common stock is traded on the New York Stock
Exchange under the symbol PIKE. Visit www.pike.com for more information.

Safe Harbor
This press release contains forward-looking statements that relate to Pike
Electric's plans, objectives and estimate, and include those in the "Outlook"
section above. 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 factors, please refer to the
Risk Factor section of Pike Electric's Annual Report on Form 10-K for the
fiscal year ending June 30, 2008 and in its other 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 INCOME
(Unaudited)
(In thousands, except per share amounts)

Three months Nine months ended
ended March 31, March 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenues $154,921 $131,362 $485,014 $414,213
Cost of operations 126,792 110,607 393,488 345,717
------- ------- ------- -------

Gross profit 28,129 20,755 91,526 68,496
General and administrative
expenses 12,137 10,377 36,607 31,253
Loss on sale and impairment of
property and equipment 1,096 93 1,949 2,076
----- -- ----- -----

Income from operations 14,896 10,285 52,970 35,167
Other expense (income):
Interest expense 2,162 3,327 7,228 11,473
Other, net (238) (43) (746) (168)
---- --- ---- ----
Total other expense 1,924 3,284 6,482 11,305

Income before income taxes 12,972 7,001 46,488 23,862
Income tax expense 4,702 2,718 17,378 9,217
----- ----- ------ -----

Net income $8,270 $4,283 $29,110 $14,645
====== ====== ======= =======

Earnings per share:
Basic $0.25 $0.13 $0.88 $0.45
===== ===== ===== =====
Diluted $0.25 $0.13 $0.86 $0.44
===== ===== ===== =====

Shares used in computing earnings
per share:
Basic 33,036 32,844 33,011 32,791
====== ====== ====== ======
Diluted 33,703 33,605 33,733 33,655
====== ====== ====== ======

PIKE ELECTRIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)

March 31, June 30,
2009 2008
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $25,572 $11,357
Accounts receivable from customers, net 70,531 62,224
Costs and estimated earnings in excess of billings
on uncompleted contracts 47,854 40,410
Inventories 9,014 8,343
Prepaid expenses and other 6,083 5,123
Deferred income taxes 14,521 15,376
------ ------
Total current assets 173,575 142,833
Property and equipment, net 225,004 229,119
Goodwill 105,019 94,402
Other intangibles, net 41,426 40,065
Deferred loan costs, net 2,175 2,778
Other assets 1,464 1,463
----- -----
Total assets $548,663 $510,660
======== ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $10,778 $10,867
Accrued compensation 21,716 22,157
Billings in excess of costs and estimated earnings
on uncompleted contracts 5,255 397
Accrued expenses and other 9,713 5,018
Income taxes payable 3,051 442
Current portion deferred compensation 1,383 3,666
Current portion of insurance claim accruals 30,636 28,873
------ ------
Total current liabilities 82,532 71,420
Long-term debt, net of current portion 140,500 140,500
Insurance and claim accruals, net of current
portion 6,817 7,989
Deferred compensation, net of current portion 5,369 6,283
Deferred income taxes 56,510 62,416

Other liabilities 3,983 1,100
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; 33,419 and 33,183 shares
issued and outstanding at March 31, 2009 and
June 30, 2008, respectively 6,427 6,427
Additional paid-in capital 151,931 148,288
Accumulated other comprehensive loss, net of
income taxes (1,559) (806)
Retained earnings 96,153 67,043
------ ------
Total stockholders' equity 252,952 220,952
------- -------
Total liabilities and stockholders' equity $548,663 $510,660
======== ========

SOURCE Pike Electric Corporation

Lara Travars, +1-336-719-4492