MPWG Mpw Industrial Services

HEBRON, Ohio, May 15 /PRNewswire-FirstCall/ -- MPW Industrial Services Group, Inc. (NASDAQ:MPWG) today announced total revenue of $26.1 million for the third fiscal quarter ended March 31, 2006. Revenue was up $3.4 million from $22.7 million for the quarter ended March 31, 2005. The Company reported a net loss of $(49) thousand, or $0.00 per share, for the third fiscal quarter ended March 31, 2006, compared with a net loss of $(0.4) million or $(0.04) per share, for the same period last year. CEO Comments Monte Black, Chairman and Chief Executive Officer, commented, "While we once again have seen positive growth in our top line performance, we also continue to fall short of our profitability goals." Mr. Black added, "Rising fuel and chemical costs as well as increased administrative costs continue to negatively impact our bottom line performance. The Company continues to focus on controlling these and other costs in order to improve the Company's overall profitability." Quarterly Discussion The 14.8% increase in revenues to $26.1 million for the quarter ended March 31, 2006 was primarily the result of increases in all of the Company's Industrial Cleaning, Facility Maintenance and Support Services and Industrial Container Cleaning segments. The increase in revenues within the Industrial Cleaning segment was primarily the result of additional outage work for several new and existing customers, combined with additional daily work for a customer that is currently experiencing a work stoppage. The Facility Maintenance and Support Services segment revenues increased as a result of increased work for both new and existing customers, while the Industrial Container Cleaning segment's increase was the result of increased volume primarily from existing customers. Income from operations was $0.3 million, or 1.1% as a percentage of revenue, for the three months ended March 31, 2006 compared to a loss from operations of $(0.3) million, or (1.4)% as a percentage of revenue, for the three months ended March 31, 2005. The increase in operating income was driven by improved revenues combined with lower workers' compensation costs, bad debt and depreciation expense, partially offset by higher repair and maintenance, fuel, chemical and administrative 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, 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) March 31, June 30, 2006 2005 (unaudited) ASSETS Cash $1,753 $744 Accounts receivable, net 18,391 16,723 Inventories 1,760 2,002 Deferred income taxes 1,657 1,264 Prepaid expenses 804 1,066 Other current assets - 15 Total current assets 24,365 21,814 Property and equipment, net 28,195 28,192 Goodwill 5,487 5,487 Other intangibles, net 5,945 6,503 Other assets 408 243 Total assets $64,400 $62,239 LIABILITIES Accounts payable $3,318 $3,547 Accrued compensation and related taxes 2,889 1,899 Current maturities of long-term debt 917 1,234 Other accrued liabilities 6,580 5,518 Total current liabilities 13,704 12,198 Long-term debt 16,106 16,410 Deferred income taxes 1,492 1,806 Other long-term liabilities 233 - Total liabilities 31,535 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 March 31, 2006 and June 30, 2005, respectively 107 107 Additional paid-in capital 41,069 40,936 Accumulated deficit (8,405) (9,223) Accumulated other comprehensive income 94 5 Total shareholders' equity 32,865 31,825 Total liabilities and shareholders' equity $64,400 $62,239 MPW INDUSTRIAL SERVICES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data) Three Months Ended Nine Months Ended March 31, March 31, 2006 2005 2006 2005 (unaudited) Revenues $26,091 $22,732 $77,845 $68,592 Cost of services 21,330 19,047 62,378 55,451 Gross profit 4,761 3,685 15,467 13,141 Selling, general and administrative expenses 4,462 3,913 13,627 12,674 Other general (income) expense 11 82 (411) 120 Income (loss) from operations 288 (310) 2,251 347 Other expense Other expense (75) - (104) - Interest expense, net (235) (263) (752) (810) Income (loss) from operations before provision (benefit) for income taxes (22) (573) 1,395 (463) Provision (benefit) for income taxes 27 (156) 577 (120) Net income (loss) $(49) $(417) $818 $(343) Net income (loss) per share, basic and diluted $- $(0.04) $0.08 $(0.03) Weighted average shares outstanding 10,716 10,711 10,716 10,709 Weighted average shares outstanding, assuming dilution 10,716 10,711 10,740 10,709 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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