MPWG Mpw Industrial Services

MPW Reports Fiscal Third Quarter Results HEBRON, Ohio, May 16 /PRNewswire-FirstCall/ -- MPW Industrial Services Group, Inc. (NASDAQ:MPWG) today announced total revenue of $22.7 million for the third fiscal quarter ended March 31, 2005. Revenue decreased $(0.1) million from $22.8 million for the quarter ended March 31, 2004. The Company reported a net loss of $(0.4) million, or $(0.04) per share, for the third fiscal quarter ended March 31, 2005, compared with net income of $0.5 million, or $0.04 per share, for the same period last year. CEO Comments Monte Black, Chairman and Chief Executive Officer, commented, "The Company's third quarter results were very disappointing. While our revenues were only down slightly, we experienced a decline in base load work from a few key existing customers that was replaced by less profitable and smaller customers, which ultimately had a significant impact on our bottom-line performance." Mr. Black further stated "Although the results were far below expectation, we are confident that the Company's revenue generation and cost reduction initiatives, combined with a recently implemented focus on the key drivers of the business will benefit MPW in the near future." Quarterly Discussion The slight decrease in revenues to $22.7 million for the quarter ended March 31, 2005 was primarily the result of a $(0.7) million decrease in the Industrial Cleaning segment offset by a $0.6 million increase in the Facility Maintenance and Support Services segment. The decrease in the Industrial Cleaning segment was primarily a result of decreased base load work from existing customers, slightly offset with new business from an acquisition and increased revenues from one-time project work. 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. Income (loss) from operations was $(0.3) million, or (1.4)% as a percentage of revenue, for the three months ended March 31, 2005 compared to $0.9 million, or 4.1% as a percentage of revenue, for the three months ended March 31, 2004. The decrease in operating income was driven by higher labor costs due to more labor intensive project work, higher fuel and chemical costs and increased selling and administrative personnel costs, slightly offset by lower depreciation and incentive compensation 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, 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) March 31, June 30, 2005 2004 (unaudited) ASSETS Cash $806 $2,237 Accounts receivable, net 17,146 14,866 Inventories 2,223 2,119 Deferred income taxes 1,718 1,679 Prepaid expenses 631 1,070 Other current assets 15 2 Total current assets 22,539 21,973 Property and equipment, net 28,591 30,198 Goodwill 6,044 6,044 Other intangibles, net 6,717 6,284 Other assets 300 192 Total assets $64,191 $64,691 LIABILITIES Accounts payable $5,016 $3,513 Accrued compensation and related taxes 1,923 1,902 Current maturities of long-term debt 1,250 1,261 Other accrued liabilities 5,503 5,608 Total current liabilities 13,692 12,284 Long-term debt 16,712 17,631 Deferred income taxes 2,626 3,447 Total liabilities 33,030 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 March 31, 2005 and June 30, 2004, respectively 107 107 Additional paid-in capital 40,936 40,921 Accumulated deficit (10,033) (9,690) Accumulated other comprehensive income (loss) 151 (9) Total shareholders' equity 31,161 31,329 Total liabilities and shareholders' equity $64,191 $64,691 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, 2005 2004 2005 2004 (unaudited) Revenues $22,732 $22,833 $68,592 $64,808 Cost of services (including depreciation) 19,047 18,171 55,451 53,278 Gross profit 3,685 4,662 13,141 11,530 Selling, general and administrative expenses 3,995 3,724 12,794 12,852 Income (loss) from operations (310) 938 347 (1,322) Interest expense, net 263 296 810 857 Income (loss) from operations before income taxes (benefit) (573) 642 (463) (2,179) Provision (benefit) for income taxes (156) 187 (120) (631) Net income (loss) $(417) $455 $(343) $(1,548) Net income (loss) per share, basic and diluted $(0.04) $0.04 $(0.03) $(0.14) Weighted average shares outstanding 10,711 10,747 10,709 10,881 Weighted average shares outstanding, assuming dilution 10,711 10,857 10,709 10,881 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/

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