Mpw Industrial Services (NASDAQ:MPWG)
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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