HWEB: MPWG reports .05 vs. .01
MPW Reports Fiscal First Quarter Results
PR Newswire - November 11, 2005 16:21
HEBRON, Ohio, Nov 11, 2005 /PRNewswire-FirstCall via COMTEX/ -- MPW Industrial Services Group, Inc. (Nasdaq: MPWG) today announced total revenue of $25.3 million for the first fiscal quarter ended September 30, 2005. Revenue was up $2.5 million from $22.8 million for the quarter ended September 30, 2004. The Company reported net income of $0.5 million, or $0.05 per share, for the first fiscal quarter ended September 30, 2005, compared with net income of $0.1 million, or $0.01 per share, for the same period last year.
CEO Comments
Monte Black, Chairman and Chief Executive Officer, commented, "I am encouraged by the Company's performance in the first quarter of fiscal 2006. We believe that our business development and organization change initiatives are beginning to have an impact on the Company's financial results." Mr. Black added, "However, while we do see some positive signs, we also continue to be faced with a variety of challenges, including higher fuel and chemical costs. We will continue to focus on cost control, performance metrics and business development efforts."
Quarterly Discussion
The 10.8% increase in revenues to $25.3 million for the quarter ended September 30, 2005 was primarily the result of a $0.7 million, $0.4 million and $1.4 million increase in the Industrial Cleaning, Facility Maintenance and Support Services and Industrial Water Process Purification segments, respectively. 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 Water Process Purification segment was primarily the result of one-time project work, combined with an increased volume of industrial water purification trailers supplied to customers on an emergency basis as a result of warmer temperatures in the first quarter of fiscal 2006.
Income from operations was $1.1 million, or 4.3% as a percentage of revenue, for the three months ended September 30, 2005 compared to income from operations of $0.4 million, or 2.0% as a percentage of revenue, for the three months ended September 30, 2004. The increase in operating income was driven by improved revenues combined with decreased workers compensation and general liability charges, lower depreciation expense and a $0.5 million gain on sale of equipment related to the Industrial Cleaning segment, slightly offset by higher fuel and chemical costs, increased reliance on subcontract and temporary services, increased professional fees and increased selling expenses as a result of continued focus on business development.
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.
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