Mpw Industrial Services (NASDAQ:MPWG)
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MPW Reports Fiscal Second Quarter and Year-To-Date Results
HEBRON, Ohio, Feb. 6 /PRNewswire-FirstCall/ -- MPW Industrial Services Group,
Inc. today announced operating results for its second quarter ended December
31, 2003.
Operating Results
Total revenue was $22.3 million for the second fiscal quarter ended December 31,
2003 compared to $24.0 million for the quarter ended December 31, 2002. Loss
from operations was $(29) thousand for the second quarter of fiscal 2004
compared to income from operations of $1.2 million for the second quarter of
fiscal 2003. The Company reported a net loss of $(570) thousand, or $(0.05) per
share, for the second fiscal quarter ended December 31, 2003, compared with net
income of $271 thousand, or $0.02 per share, for the same period last year.
Revenues for the second quarter of fiscal 2004 decreased from the same prior
year period primarily in the Industrial Cleaning and Facility Maintenance
segment as 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.
The decline in operating income from the second quarter of fiscal 2003 was
driven by high fixed labor costs, increased selling expenses as a result of an
increased focus on business development and increased workers compensation and
insurance costs. The net loss for the second quarter of fiscal 2004 was also
negatively impacted by a reduction in the effective annual income tax rate from
43% to 29% to better reflect the Company's estimate of a lower effective tax
rate for the year due to changes in expected income levels. The change in the
tax rate increased the net loss by approximately $350 thousand, or $0.03 per
share.
Monte Black, Chairman and Chief Executive Officer, stated, "Overall, the second
quarter results did not meet expectations. While results continue to remain
below last year's levels, we are working to implement several internal
initiatives to drive towards improved profitability. These initiatives include
increasing our sales and marketing efforts, streamlining our internal business
processes and the continuation of a cost and expense reduction plan."
Total revenue for the first six months of fiscal 2004 was $42.0 million compared
with $48.0 million for the first six months of fiscal 2003. Loss from operations
was $(2.3) million for the six months ended December 31, 2003 compared to income
from operations of $1.4 million for the six months ended December 31, 2002. The
net loss for the six months ended December 31, 2003 was $(2.0) million, or
($0.18) per share, compared with a net loss of $(2.8) million, or $(0.26) per
share, for the six months ended December 31, 2002.
The net loss for the first six months 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.
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.
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, 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)
December 31, June 30,
2003 2003
(unaudited)
ASSETS
Cash $691 $2,726
Accounts receivable, net 13,566 17,201
Inventories 2,346 2,294
Deferred income taxes 1,560 1,461
Prepaid expenses 839 1,197
Other current assets 17 16
Total current assets 19,019 24,895
Property and equipment, net 33,071 35,120
Goodwill 6,044 6,044
Other intangibles, net 6,581 6,889
Other assets 104 122
Total assets $64,819 $73,070
LIABILITIES
Accounts payable $5,149 $8,218
Accrued compensation and related
taxes 1,645 2,373
Current maturities of long-term
debt 1,298 1,322
Other accrued liabilities 4,228 6,153
Total current liabilities 12,320 18,066
Long-term debt 18,254 18,892
Deferred income taxes 3,603 3,400
Other long-term liabilities 158 469
Total liabilities 34,335 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;
10,958,707 and 10,939,957 shares
issued and outstanding at
December 31, 2003 and June 30,
2003,respectively 109 109
Additional paid-in capital 41,544 41,507
Accumulated deficit (11,030) (9,027)
Accumulated other comprehensive
loss (139) (346)
Total shareholders' equity 30,484 32,243
Total liabilities and
shareholders' equity $64,819 $73,070
MPW INDUSTRIAL SERVICES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
Three Months Ended Six Months Ended
December 31, December 31,
2003 2002 2003 2002
(unaudited) (unaudited)
Revenues $22,315 $23,982 $41,975 $48,006
Cost of services (including
depreciation) 18,090 18,735 35,107 37,934
Gross profit 4,225 5,247 6,868 10,072
Selling, general and administrative
expenses 4,254 4,065 9,128 8,699
Income (loss) from operations (29) 1,182 (2,260) 1,373
Interest expense, net 278 512 561 1,013
Income (loss) from continuing
operations before income taxes
(benefit) and equity in loss of
affiliate (307) 670 (2,821) 360
Provision (benefit) for income
taxes 263 281 (818) 151
Income (loss) from continuing
operations before equity in
loss of affiliate (570) 389 (2,003) 209
Equity in loss of affiliate - (149) - (184)
Income (loss) from continuing
operations(570) 240 (2,003) 25
Income from discontinued
operations, net of tax - 31 - 43
Income (loss) before cumulative
effect of change in
accounting principle (570) 271 (2,003) 68
Cumulative effect of change in
accounting principle - - - (2,845)
Net income (loss) $(570) $271 $(2,003) $(2,777)
Net income (loss) per share, basic
and diluted:
Income (loss) from continuing
operations $(0.05) $0.02 $(0.18) $-
Income from discontinued
operations, net of tax - - - -
Income (loss) before cumulative
effect of change in
accounting principle $(0.05) $0.02 $(0.18) $-
Cumulative effect of change in
accounting principle - - - (0.26)
Net income (loss) per share $(0.05) $0.02 $(0.18) $(0.26)
Weighted average shares outstanding 10,951 10,940 10,947 10,940
Weighted average shares
outstanding, assuming dilution 10,951 10,958 10,947 10,976
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