MPWG Mpw Industrial Services

HEBRON, Ohio, Oct. 4 /PRNewswire-FirstCall/ -- MPW Industrial Services Group, Inc. (NASDAQ:MPWG) today announced total revenue of $24.7 million for the fourth fiscal quarter ended June 30, 2005. Revenue was up $0.4 million from $24.3 million for the quarter ended June 30, 2004. The Company reported net income of $0.8 million, or $0.07 per share, for the fourth fiscal quarter ended June 30, 2005, compared with net income of $0.9 million, or $0.08 per share, for the same period last year. Total revenue for fiscal 2005 was $93.3 million compared with $89.1 million for fiscal 2004. The net income for fiscal 2005 was $0.5 million, or $0.04 per share, compared with a net loss of $(0.7) million, or $(0.06) per share, for fiscal 2004. CEO Comments Monte Black, Chairman and Chief Executive Officer, commented, "While the Company's overall performance in fiscal 2005 showed improvement over the prior year, the Company's performance did not meet our expectations. However, the fourth quarter results showed significant improvement over the Company's third quarter." Mr. Black added, "We believe that this improvement can be partially attributed to the Company's focus on business development and the changes made within our organization during the past year. We will continue to focus on our key initiatives related to business development, cost reduction and performance metrics to help drive the Company's results to the desired expectations." Quarterly Discussion Revenues increased 1.6% to $24.7 million in the fourth quarter of fiscal 2005 from $24.3 million in the same prior year period. The slight increase in revenues was primarily the result of a $(0.3) million decrease in the Industrial Cleaning segment offset by $0.4 million and $0.3 million increases in the Facility Maintenance and Support Services and Industrial Water Process Purification segments, respectively. The decrease in the Industrial Cleaning segment was primarily a result of a non-recurring project that occurred in the fourth quarter of fiscal 2004, decreased base load work from existing customers, slightly offset with new business from an acquisition and increased revenues from new customers. The increase in revenues in the Facility Maintenance and Support Services segments was primarily due to increased base load work from new and existing customers. The increase in revenues in 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 latter part of the fourth quarter. Income from operations was $1.1 million, or 4.6% as a percentage of revenue, for the three months ended June 30, 2005 compared to $1.6 million, or 6.4% as a percentage of revenue, for the three months ended June 30, 2004. The decline in operating income was driven by higher labor costs due to more labor intensive project work, increased fuel and chemical costs, offset by decreased bad debt expense and depreciation. 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) June 30, 2005 2004 ASSETS Cash $744 $2,237 Accounts receivable, net 16,723 14,866 Inventories 2,002 2,119 Deferred income taxes 1,264 1,679 Prepaid expenses 1,066 1,070 Other current assets 15 2 Total current assets 21,814 21,973 Property and equipment, net 28,192 30,198 Goodwill 5,487 6,044 Other intangibles, net 6,503 6,284 Other assets 243 192 Total assets $62,239 $64,691 LIABILITIES Accounts payable $3,547 $3,513 Accrued compensation and related taxes 1,899 1,902 Current maturities of long-term debt 1,234 1,261 Other accrued liabilities 5,518 5,608 Total current liabilities 12,198 12,284 Long-term debt 16,410 17,631 Deferred income taxes 1,806 3,447 Total liabilities 30,414 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; 10,716,207 and 10,708,707 shares issued and outstanding at June 30, 2005 and 2004, respectively 107 107 Additional paid-in capital 40,936 40,921 Accumulated deficit (9,223) (9,690) Accumulated other comprehensive income (loss) 5 (9) Total shareholders' equity 31,825 31,329 Total liabilities and shareholders' equity $62,239 $64,691 MPW INDUSTRIAL SERVICES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data) Three Months Ended Year Ended June 30, June 30, 2005 2004 2005 2004 (unaudited) Revenues $24,706 $24,317 $93,298 $89,125 Cost of services (including depreciation) 19,617 18,494 75,068 71,772 Gross profit 5,089 5,823 18,230 17,353 Selling, general and administrative expenses 3,941 4,267 16,735 17,119 Income from operations 1,148 1,556 1,495 234 Other income (expense): Other income 186 - 186 - Interest expense, net (266) (272) (1,076) (1,129) Income (loss) from continuing operations before income taxes (benefit) and equity in loss of affiliate 1,068 1,284 605 (895) Provision (benefit) for income taxes 258 399 138 (232) Income (loss) from continuing operations before equity in loss of affiliate 810 885 467 (663) Equity in loss of affiliate - - - - Income (loss) from continuing operations 810 885 467 (663) Income from discontinued operations, net of tax - - - - Income (loss) before cumulative effect of change in accounting principle 810 885 467 (663) Cumulative effect of change in accounting principle - - - - Net income (loss) $810 $885 $467 $(663) Net income (loss) per share, basic and diluted: Income (loss) from continuing operations $0.07 $0.08 $0.04 $(0.06) Income from discontinued operations, net of tax - - - - Income (loss) before cumulative effect of change in accounting principle 0.07 0.08 0.04 (0.06) Cumulative effect of change in accounting principle - - - - Net income (loss) per share $0.07 $0.08 $0.04 $(0.06) Weighted average shares outstanding 10,716 10,709 10,711 10,838 Weighted average shares outstanding, assuming dilution 10,780 10,809 10,786 10,838 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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