MPWG Mpw Industrial Services

MPW Reports Fiscal Fourth Quarter and Annual Results HEBRON, Ohio, Sept. 24 /PRNewswire-FirstCall/ -- MPW Industrial Services Group, Inc. (NASDAQ:MPWG) today announced total revenue of $24.3 million for the fourth fiscal quarter ended June 30, 2004. Revenue was down $6.4 million from $30.7 million for the quarter ended June 30, 2003. The Company reported net income of $885 thousand, or $0.08 per share, for the fourth fiscal quarter ended June 30, 2004, compared with a net loss of $(5.4) million, or $(0.49) per share, for the same period last year. Total revenue for fiscal 2004 was $89.1 million compared with $102.8 million for fiscal 2003. The net loss for fiscal 2004 was $(663) thousand, or ($0.06) per share, compared with a net loss of $(7.6) million, or $(0.70) per share, for fiscal 2003. The net loss for fiscal 2003 included the Company's equity loss in affiliate of $(6.7) million which was comprised of the Company's share ($2.8 million) of a $12.7 million non-cash goodwill impairment charge recorded by Pentagon Technologies Group, Inc. ("Pentagon"), under the provisions of Statement of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other Intangible Assets". In addition, the fiscal 2003 equity loss in affiliate included a $3.8 million other than temporary impairment charge to fully write-off the Company's investment in Pentagon at June 30, 2003. The other than temporary impairment charge was recognized due to continued declines in Pentagon's operating results as well as the slowdown and uncertainty in the semi-conductor industry. The net loss for fiscal 2003 also included a $2.8 million, net of tax of $1.9 million, non-cash goodwill impairment charge as a result of the adoption of SFAS No. 142. This charge was recorded as a cumulative effect of change in accounting principle as of July 1, 2002. CEO Comments Monte Black, Chairman and Chief Executive Officer, commented, "While the Company's overall performance in fiscal 2004 was below expectations, the fourth quarter results show continued improvement over each of the three preceding quarters." Mr. Black added, "In order to continue this positive trend into fiscal 2005, we have recently made some critical changes within our organization, which we feel will help accelerate and integrate the Company's diverse service offerings to both new and existing customers." Quarterly Discussion Revenues decreased 20.7% to $24.3 million in the fourth quarter of fiscal 2004 from $30.7 million in the same prior year period. The decline in revenues was primarily the result of a large non-recurring project performed in the fourth quarter of fiscal 2003 in the Industrial Cleaning and Facility Maintenance segment. Income from operations was $1.6 million, or 6.4% as a percentage of revenue, for the three months ended June 30, 2004 compared to $1.7 million, or 5.7% as a percentage of revenue, for the three months ended June 30, 2003. The decline in operating income was driven by lower revenues as mentioned above and increased selling expenses as a result of an increased focus on business development, offset by decreased repair and maintenance and incentive compensation costs and decreased bad debt expense as the prior year included a charge related to a customer that filed bankruptcy. Corporate Profile 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 and chemical cleaning. 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) June 30, June 30, 2004 2003 ASSETS Cash $2,237 $2,726 Accounts receivable, net 14,866 17,201 Inventories 2,119 2,294 Deferred income taxes 1,679 1,461 Prepaid expenses 1,070 1,197 Other current assets 2 16 Total current assets 21,973 24,895 Property and equipment, net 30,198 35,120 Goodwill 6,044 6,044 Other intangibles, net 6,284 6,889 Other assets 192 122 Total assets $64,691 $73,070 LIABILITIES Accounts payable $3,513 $8,218 Accrued compensation and related taxes 1,902 2,373 Current maturities of long-term debt 1,261 1,322 Other accrued liabilities 5,608 6,153 Total current liabilities 12,284 18,066 Long-term debt 17,631 18,892 Deferred income taxes 3,447 3,400 Other long-term liabilities - 469 Total liabilities 33,362 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; 10,708,707 and 10,939,957 shares issued and outstanding at June 30, 2004 and June 30, 2003, respectively 107 109 Additional paid-in capital 40,921 41,507 Accumulated deficit (9,690) (9,027) Accumulated other comprehensive loss (9) (346) Total shareholders' equity 31,329 32,243 Total liabilities and shareholders' equity $64,691 $73,070 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, 2004 2003 2004 2003 (unaudited) Revenues $24,317 $30,671 $89,125 $102,821 Cost of services (including depreciation) 18,494 23,232 71,772 79,293 Gross profit 5,823 7,439 17,353 23,528 Selling, general and administrative expenses 4,267 5,702 17,119 18,453 Income from operations 1,556 1,737 234 5,075 Interest expense, net 272 422 1,129 1,892 Income (loss) from continuing operations before income taxes (benefit) and equity in loss of affiliate 1,284 1,315 (895) 3,183 Provision (benefit) for income taxes 399 379 (232) 1,164 Income (loss) from continuing operations before equity in loss of affiliate 885 936 (663) 2,019 Equity in loss of affiliate - (6,732) - (7,231) Income (loss) from continuing operations 885 (5,796) (663) (5,212) Income from discontinued operations, net of tax - 362 - 446 Income (loss) before cumulative effect of change in accounting principle 885 (5,434) (663) (4,766) Cumulative effect of change in accounting principle - - - (2,845) Net income (loss) $885 $(5,434) $(663) $(7,611) Net income (loss) per share, basic and diluted: Income (loss) from continuing operations $0.08 $(0.53) $(0.06) $(0.48) Income from discontinued operations, net of tax - 0.04 - 0.04 Income (loss) before cumulative effect of change in accounting principle 0.08 (0.49) (0.06) (0.44) Cumulative effect of change in accounting principle - - - (0.26) Net income (loss) per share $0.08 $(0.49) $(0.06) $(0.70) Weighted average shares outstanding 10,709 10,940 10,838 10,940 Weighted average shares outstanding, assuming dilution 10,809 10,940 10,838 10,940 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