MPWG Mpw Industrial Services

MPW Reports Fiscal First Quarter Results HEBRON, Ohio, Nov. 14 /PRNewswire-FirstCall/ -- MPW Industrial Services Group, Inc. today announced operating results for its first quarter ended September 30, 2003. Operating Results The Company reported a net loss of $(1.4) million, or $(0.13) per share, for the first fiscal quarter ended September 30, 2003, compared with $(3.0) million, or $(0.28) per share, for the first fiscal quarter ended September 30, 2002. Total revenue decreased 18.2% from $24.0 million in the first quarter of fiscal 2003 to $19.7 million in the first quarter of fiscal 2004. Income (loss) from operations was $(2.2) million, or (11.3)% of revenue, for the first quarter of fiscal 2004 compared to $0.2 million, or 0.8% of revenue, for the first quarter of fiscal 2003. The net loss for the first quarter of fiscal 2003 included a $2.8 million, net of tax of $1.9 million, non-cash goodwill impairment charge as a result of the adoption of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets". This charge was recorded as a cumulative effect of a change in accounting principle as of July 1, 2002. The decrease in revenue for the three months ended September 30, 2003 compared to the three months ended September 30, 2002 was the result of the loss of certain customers due to a combination of factors, including aggressive pricing by competitors, and decreased project work at existing customers in the Industrial Cleaning and Facility Maintenance segment and decreased emergency work for customers of the Industrial Water Process Purification segment due to mild weather conditions. The loss from operations in the first quarter of fiscal 2004 was negatively impacted by a $1.1 million charge related to a customer who filed bankruptcy in October 2003, adverse developments in several workers compensation insurance claims and high fixed labor costs, slightly offset by decreased incentive compensation expense and decreases in various administrative costs due to increased focus on cost control. "The revenues for the first quarter of this fiscal year and for the remainder of this fiscal year have been and will continue to be impacted by the highly competitive environment in which we operate combined with deferred spending by our industrial clients, however, we will remain focused on providing quality service as well as gaining internal operating efficiencies," stated Monte Black, Chairman and Chief Executive Officer. 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 three principal service lines that are integral to a wide variety of manufacturing processes. These three service lines are industrial cleaning and facility maintenance, industrial container cleaning and industrial process water purification. 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, 2003; 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, 2003 2003 (unaudited) ASSETS Cash $194 $2,726 Accounts receivable, net 11,461 17,201 Inventories 2,285 2,294 Deferred income taxes 1,576 1,461 Prepaid expenses 973 1,197 Other current assets 15 16 Total current assets 16,504 24,895 Property and equipment, net 34,355 35,120 Goodwill 6,044 6,044 Other intangibles, net 6,735 6,889 Other assets 113 122 Total assets $63,751 $73,070 LIABILITIES Accounts payable $3,296 $8,218 Accrued compensation and related taxes 1,389 2,373 Current maturities of long-term debt 1,313 1,322 Other accrued liabilities 4,474 6,153 Total current liabilities 10,472 18,066 Long-term debt 18,570 18,892 Deferred income taxes 3,477 3,400 Other long-term liabilities 306 469 Total liabilities 32,825 40,827 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; 10,949,957 and 10,939,957 shares issued and outstanding at September 30, 2003 and June 30, 2003, respectively 109 109 Additional paid-in capital 41,527 41,507 Accumulated deficit (10,460) (9,027) Accumulated other comprehensive loss (250) (346) Total shareholders' equity 30,926 32,243 Total liabilities and shareholders' equity $63,751 $73,070 MPW INDUSTRIAL SERVICES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data) Three Months Ended September 30, 2003 2002 (unaudited) Revenues $19,660 $24,024 Cost of services (including depreciation) 17,017 19,199 Gross profit 2,643 4,825 Selling, general and administrative expenses 4,874 4,634 Income (loss) from operations (2,231) 191 Interest expense, net 283 501 Loss from continuing operations before income tax benefit and equity in loss of affiliate (2,514) (310) Income tax benefit (1,081) (130) Loss from continuing operations before equity in loss of affiliate (1,433) (180) Equity in loss of affiliate - (35) Loss from continuing operations (1,433) (215) Income from discontinued operations, net of tax - 12 Loss before cumulative effect of change in accounting principle (1,433) (203) Cumulative effect of change in accounting principle - (2,845) Net loss $(1,433) $(3,048) Net loss per share, basic and diluted: Loss from continuing operations $(0.13) $(0.02) Income from discontinued operations, net of tax - - Loss before cumulative effect of change in accounting principle (0.13) (0.02) Cumulative effect of change in accounting principle - (0.26) Net loss per share $(0.13) $(0.28) Weighted average shares outstanding 10,944 10,940 Weighted average shares outstanding, assuming dilution 10,944 10,940 DATASOURCE: MPW Industrial Services Group, Inc. CONTACT: Robert Valentine, Vice President 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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