MPWG Mpw Industrial Services

HEBRON, Ohio, Nov. 11 /PRNewswire-FirstCall/ -- MPW Industrial Services Group, Inc. (NASDAQ:MPWG) today announced total revenue of $25.3 million for the first fiscal quarter ended September 30, 2005. Revenue was up $2.5 million from $22.8 million for the quarter ended September 30, 2004. The Company reported net income of $0.5 million, or $0.05 per share, for the first fiscal quarter ended September 30, 2005, compared with net income of $0.1 million, or $0.01 per share, for the same period last year. CEO Comments Monte Black, Chairman and Chief Executive Officer, commented, "I am encouraged by the Company's performance in the first quarter of fiscal 2006. We believe that our business development and organization change initiatives are beginning to have an impact on the Company's financial results." Mr. Black added, "However, while we do see some positive signs, we also continue to be faced with a variety of challenges, including higher fuel and chemical costs. We will continue to focus on cost control, performance metrics and business development efforts." Quarterly Discussion The 10.8% increase in revenues to $25.3 million for the quarter ended September 30, 2005 was primarily the result of a $0.7 million, $0.4 million and $1.4 million increase in the Industrial Cleaning, Facility Maintenance and Support Services and Industrial Water Process Purification segments, respectively. The increase in revenues within the Industrial Cleaning segment was primarily the result of additional base and outage work for several new customers, while the Facility Maintenance and Support Services segment revenues increased as a result of increased work for both new and existing customers. The increase in revenues within the Industrial Water Process Purification segment was primarily the result of one-time project work, combined with an increased volume of industrial water purification trailers supplied to customers on an emergency basis as a result of warmer temperatures in the first quarter of fiscal 2006. Income from operations was $1.1 million, or 4.3% as a percentage of revenue, for the three months ended September 30, 2005 compared to income from operations of $0.4 million, or 2.0% as a percentage of revenue, for the three months ended September 30, 2004. The increase in operating income was driven by improved revenues combined with decreased workers compensation and general liability charges, lower depreciation expense and a $0.5 million gain on sale of equipment related to the Industrial Cleaning segment, slightly offset by higher fuel and chemical costs, increased reliance on subcontract and temporary services, increased professional fees and increased selling expenses as a result of continued focus on business development. 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, 2005; 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) September 30, June 30, 2005 2005 (unaudited) ASSETS Cash $794 $744 Accounts receivable, net 16,243 16,723 Inventories 1,794 2,002 Deferred income taxes 1,145 1,264 Prepaid expenses 1,158 1,066 Other current assets 24 15 Total current assets 21,158 21,814 Property and equipment, net 30,295 28,192 Goodwill 5,487 5,487 Other intangibles, net 6,317 6,503 Other assets 469 243 Total assets $63,726 $62,239 LIABILITIES Accounts payable $4,602 $3,547 Accrued compensation and related taxes 2,218 1,899 Current maturities of long-term debt 1,231 1,234 Other accrued liabilities 5,275 5,518 Total current liabilities 13,326 12,198 Long-term debt 16,116 16,410 Deferred income taxes 1,587 1,806 Other long-term liabilities 210 - Total liabilities 31,239 30,414 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; 10,716,207 shares issued and outstanding at September 30, 2005 and June 30, 2005, respectively 107 107 Additional paid-in capital 40,995 40,936 Accumulated deficit (8,686) (9,223) Accumulated other comprehensive income 71 5 Total shareholders' equity 32,487 31,825 Total liabilities and shareholders' equity $63,726 $62,239 MPW INDUSTRIAL SERVICES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data) Three Months Ended September 30, 2005 2004 (unaudited) Revenues $25,286 $22,825 Cost of services (including depreciation) 19,991 18,038 Gross profit 5,295 4,787 Selling, general and administrative expenses 4,671 4,349 Other general (income) expense (455) (8) Income from operations 1,079 446 Other income (expense): Other income 10 - Interest expense, net (259) (284) Income from operations before income taxes 830 162 Provision for income taxes 293 65 Net income $537 $97 Net income per share, basic and diluted $0.05 $0.01 Weighted average shares outstanding 10,716 10,709 Weighted average shares outstanding, assuming dilution 10,747 10,768 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

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