MPWG Mpw Industrial Services

MPW Reports Fiscal Second Quarter Results HEBRON, Ohio, Feb. 14 /PRNewswire-FirstCall/ -- MPW Industrial Services Group, Inc. (NASDAQ:MPWG) today announced total revenue of $23.0 million for the second fiscal quarter ended December 31, 2004. Revenue increased $0.7 million from $22.3 million for the quarter ended December 31, 2003. The Company reported a net loss of $(23) thousand, or $0.00 per share, for the second fiscal quarter ended December 31, 2004, compared with a net loss of $(0.6) million, or $(0.05) per share, for the same period last year. CEO Comments Monte Black, Chairman and Chief Executive Officer, commented, "While the Company's revenue has continued to grow over previous quarters, I am still not satisfied with our top line performance." Mr. Black added, "We are continuing to place significant emphasis on our sales and marketing efforts to increase our revenues and overall profitability." Quarterly Discussion The 3.2% increase in revenues to $23.0 million for the quarter ended December 31, 2004 was primarily the result of increased base load work from new and existing customers, combined with new business from an acquisition in the Industrial Cleaning and Facility Maintenance and Support Services segments, slightly offset by a decrease in revenues in the Industrial Container Cleaning segment primarily driven by lower volumes due to a slowdown in the automotive industry." Income from operations was $0.2 million, or 0.9% as a percentage of revenue, for the three months ended December 31, 2004 compared to a loss from operations of $(29) thousand, or (0.1)% as a percentage of revenue, for the three months ended December 31, 2003. The increase in operating income was driven by improved revenues combined with decreased operating supply costs due to better inventory utilization, lower workers compensation costs and lower depreciation expense, slightly offset by increased compensation expense and higher fuel costs. Corporate Profile Founded in 1972, MPW Industrial Services Group, Inc. is a leading provider of integrated, technically-based industrial cleaning and related facilities support services in North America. MPW offers four principal service lines that are integral to a wide variety of manufacturing processes. These four service lines are industrial cleaning, facility maintenance and support services, industrial container cleaning and industrial process water purification. Forward-Looking Statements The statements contained in this news release that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, competitive and other market factors, customer purchasing behavior, general economic conditions and other facets of the Company's business operations. Additional information about these and other risks and uncertainties can be found in "Investment Considerations" in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2004; and in other documents the Company files or has filed with the Securities and Exchange Commission. Further information may also be obtained at the Company's Internet site: http://www.mpwservices.com/ . MPW INDUSTRIAL SERVICES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, June 30, 2004 2004 (unaudited) ASSETS Cash $725 $2,237 Accounts receivable, net 15,771 14,866 Inventories 2,351 2,119 Deferred income taxes 1,813 1,679 Prepaid expenses 1,128 1,070 Other current assets 73 2 Total current assets 21,861 21,973 Property and equipment, net 29,093 30,198 Goodwill 6,044 6,044 Other intangibles, net 6,904 6,284 Other assets 194 192 Total assets $64,096 $64,691 LIABILITIES Accounts payable $3,926 $3,513 Accrued compensation and related taxes 1,981 1,902 Current maturities of long-term debt 1,237 1,261 Other accrued liabilities 5,552 5,608 Total current liabilities 12,696 12,284 Long-term debt 17,017 17,631 Deferred income taxes 2,871 3,447 Total liabilities 32,584 33,362 SHAREHOLDERS' EQUITY Preferred stock, $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding - - Common stock, no par value; 30,000,000 shares authorized; 10,708,707 shares issued and outstanding at December 31, 2004 and June 30, 2004, respectively 107 107 Additional paid-in capital 40,921 40,921 Accumulated deficit (9,616) (9,690) Accumulated other comprehensive income (loss) 100 (9) Total shareholders' equity 31,512 31,329 Total liabilities and shareholders' equity $64,096 $64,691 MPW INDUSTRIAL SERVICES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data) Three Months Ended Six Months Ended December 31, December 31, 2004 2003 2004 2003 (unaudited) Revenues $23,035 $22,315 $45,860 $41,975 Cost of services (including depreciation) 18,366 18,090 36,404 35,107 Gross profit 4,669 4,225 9,456 6,868 Selling, general and administrative expenses 4,458 4,254 8,799 9,128 Income (loss) from operations 211 (29) 657 (2,260) Interest expense, net 263 278 547 561 Income (loss) from operations before income taxes (benefit) (52) (307) 110 (2,821) Provision (benefit) for income taxes (29) 263 36 (818) Net income (loss) $(23) $(570) $74 $(2,003) Net income (loss) per share, basic and diluted $- $(0.05) $0.01 $(0.18) Weighted average shares outstanding 10,709 10,951 10,709 10,947 Weighted average shares outstanding, assuming dilution 10,709 10,951 10,786 10,947 DATASOURCE: MPW Industrial Services Group, Inc. CONTACT: Robert Valentine, Vice President, Chief Operating Officer and Chief Financial Officer of MPW Industrial Services Group, Inc., +1-740-927-8790 Web site: http://www.mpwservices.com/ Company News On-Call: http://www.prnewswire.com/comp/126032.html

Copyright