MPW Reports Fiscal Fourth Quarter and Annual Results

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.,

[phone]



Web site:  http://www.mpwservices.com/ 



Company News On-Call:  http://www.prnewswire.com/comp/126032.html

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