MPWG Mpw Industrial Services

MPW Reports Fiscal First Quarter Results HEBRON, Ohio, Nov. 15 /PRNewswire-FirstCall/ -- MPW Industrial Services Group, Inc. (NASDAQ:MPWG) today announced total revenue of $22.8 million for the first fiscal quarter ended September 30, 2004. Revenue was up $3.1 million from $19.7 million for the quarter ended September 30, 2003. The Company reported net income of $97 thousand, or $0.01 per share, for the first fiscal quarter ended September 30, 2004, compared with a net loss of $(1.4) million, or $(0.13) per share, for the same period last year. CEO Comments Monte Black, Chairman and Chief Executive Officer, commented, "While the Company's revenue growth has not yet reached our targeted growth rate, I am encouraged by the revenue improvement over the first quarter of the prior year." Mr. Black added, "As we continue to increase our marketing and sales efforts, especially with respect to cross-marketing our diverse service offerings, I look forward to what we can accomplish over the coming fiscal year." Quarterly Discussion The 16.1% increase in revenues to $22.8 million for the quarter ended September 30, 2004 was primarily the result of several non-recurring projects, combined with additional base work and outage work for several new and existing customers within the Industrial Cleaning and Facility Maintenance segment. Income from operations was $0.4 million, or 2.0% as a percentage of revenue, for the three months ended September 30, 2004 compared to a loss from operations of $(2.2) million, or (11.3)% as a percentage of revenue, for the three months ended September 30, 2003. The increase in operating income was driven by improved revenues combined with decreased bad debt expense as the prior year included a charge related to a customer that filed bankruptcy and lower depreciation expense, slightly offset by increased incentive compensation expense. 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 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. 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) September 30, June 30, 2004 2004 (unaudited) ASSETS Cash $1,295 $2,237 Accounts receivable, net 15,847 14,866 Inventories 2,181 2,119 Deferred income taxes 1,784 1,679 Prepaid expenses 738 1,070 Other current assets 34 2 Total current assets 21,879 21,973 Property and equipment, net 29,685 30,198 Goodwill 6,044 6,044 Other intangibles, net 6,146 6,284 Other assets 86 192 Total assets $63,840 $64,691 LIABILITIES Accounts payable $3,013 $3,513 Accrued compensation and related taxes 2,091 1,902 Current maturities of long-term debt 1,247 1,261 Other accrued liabilities 5,621 5,608 Total current liabilities 11,972 12,284 Long-term debt 17,323 17,631 Deferred income taxes 3,136 3,447 Total liabilities 32,431 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; 10,708,707 shares issued and outstanding at September 30, 2004 and June 30, 2004, respectively 107 107 Additional paid-in capital 40,921 40,921 Accumulated deficit (9,593) (9,690) Accumulated other comprehensive loss (26) (9) Total shareholders' equity 31,409 31,329 Total liabilities and shareholders' equity $63,840 $64,691 MPW INDUSTRIAL SERVICES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data) Three Months Ended September 30, 2004 2003 (unaudited) Revenues $22,825 $19,660 Cost of services (including depreciation) 18,038 17,017 Gross profit 4,787 2,643 Selling, general and administrative expenses 4,341 4,874 Income (loss) from operations 446 (2,231) Interest expense, net 284 283 Income (loss) from operations before income taxes (benefit) 162 (2,514) Provision (benefit) for income taxes 65 (1,081) Net income (loss) $97 $(1,433) Net income (loss) per share, basic and diluted $0.01 $(0.13) Weighted average shares outstanding 10,709 10,944 Weighted average shares outstanding, assuming dilution 10,768 10,944 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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