MPWG Mpw Industrial Services

HEBRON, Ohio, Feb. 13 /PRNewswire-FirstCall/ -- MPW Industrial Services Group, Inc. (NASDAQ:MPWG) today announced total revenue of $26.5 million for the second fiscal quarter ended December 31, 2005. Revenue was up $3.5 million from $23.0 million for the quarter ended December 31, 2004. The Company reported net income of $0.3 million, or $0.03 per share, for the second fiscal quarter ended December 31, 2005, compared with a net loss of $(23) thousand, or $0.00 per share, for the same period last year. CEO Comments Monte Black, Chairman and Chief Executive Officer, commented, "We are encouraged by the revenue growth over both prior quarter and prior year; however, the bottom line fell short of our expectations. Mr. Black added, "While cross marketing sales efforts have resulted in new business from existing customers and new customers, the increased revenues did not have the desired impact on net income." Mr. Black added, "Our bottom line continues to be impacted by significantly higher fuel and chemical costs as well as increased professional fees and workers compensation costs. The Company continues to pursue ways to control these and other costs to further increase profitability." Quarterly Discussion The 14.9% increase in revenues to $26.5 million for the quarter ended December 31, 2005 was primarily the result of increases in all of the Company's reportable segments. The increase in revenues within the Industrial Cleaning segment was primarily the result of additional base and outage work for several new customers, while the Facility Maintenance and Support Services segment revenues increased as a result of increased work for both new and existing customers. The increase in revenues within the Industrial Container Cleaning segment was primarily the result of increased volume primarily driven by higher production in the automotive industry. The increase in revenues within the Industrial Water Process Purification segment was primarily the result of increased work for both new and existing customers, combined with an increased volume of industrial water purification trailers supplied to customers on an emergency basis as a result of colder temperatures in the second quarter of fiscal 2006. Income from operations was $0.9 million, or 3.3% as a percentage of revenue, for the three months ended December 31, 2005 compared to income from operations of $0.2 million, or 0.9% as a percentage of revenue, for the three months ended December 31, 2004. The increase in operating income was driven by improved revenues combined with decreased reliance on subcontract and temporary services and lower depreciation expense, partially offset by higher fuel and chemical costs and increased professional fees and workers 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, 2005; 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, 2005 2005 (unaudited) ASSETS Cash $1,114 $744 Accounts receivable, net 19,121 16,723 Inventories 1,844 2,002 Deferred income taxes 1,504 1,264 Prepaid expenses 763 1,066 Other current assets - 15 Total current assets 24,346 21,814 Property and equipment, net 29,232 28,192 Goodwill 5,487 5,487 Other intangibles, net 6,131 6,503 Other assets 474 243 Total assets $65,670 $62,239 LIABILITIES Accounts payable $5,144 $3,547 Accrued compensation and related taxes 2,139 1,899 Current maturities of long-term debt 1,222 1,234 Other accrued liabilities 6,297 5,518 Total current liabilities 14,802 12,198 Long-term debt 16,411 16,410 Deferred income taxes 1,363 1,806 Other long-term liabilities 219 - Total liabilities 32,795 30,414 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 shares issued and outstanding at December 31, 2005 and June 30, 2005, respectively 107 107 Additional paid-in capital 41,047 40,936 Accumulated deficit (8,356) (9,223) Accumulated other comprehensive income 77 5 Total shareholders' equity 32,875 31,825 Total liabilities and shareholders' equity $65,670 $62,239 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, 2005 2004 2005 2004 (unaudited) Revenues $26,468 $23,035 $51,754 $45,860 Cost of services (including depreciation) 21,057 18,366 41,048 36,404 Gross profit 5,411 4,669 10,706 9,456 Selling, general and administrative expenses 4,494 4,412 9,165 8,761 Other general (income) expense 33 46 (422) 38 Income (loss) from operations 884 211 1,963 657 Other expense Other expense (39) - (29) - Interest expense, net (258) (263) (517) (547) Income (loss) from operations before provision (benefit) for income taxes 587 (52) 1,417 110 Provision (benefit) for income taxes 257 (29) 550 36 Net income (loss) $330 $(23) $867 $74 Net income (loss) per share, basic and diluted $0.03 $- $0.08 $0.01 Weighted average shares outstanding 10,716 10,709 10,716 10,709 Weighted average shares outstanding, assuming dilution 10,732 10,709 10,738 10,768 First Call Analyst: FCMN Contact: 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/ Company News On-Call: http://www.prnewswire.com/comp/126032.html

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