Mpw Industrial Services (NASDAQ:MPWG)
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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/