Exhibit 99.1
For more information:
Ross Ely, MPC Corporation
Phone (208) 893-1560
Email investorrelations@mpccorp.com
MPC CORPORATION REPORTS UNAUDITED FIRST QUARTER 2007 FINANCIAL RESULTS
Company Reports Lower Net Loss Compared to Q1 2006
Nampa, ID, May 15, 2007— MPC Corporation (AMEX:MPZ) today announced unaudited financial results for the quarter ended March 31, 2007. Net revenue was $56.8 million, a 14.6% decline compared to the same period in 2006. The net loss was $5.2 million, or 41 cents per basic and diluted common share. These results compare with a net loss of $7.5 million, or 66 cents per basic and diluted common share, over the same period in 2006.
Gross margin for the first quarter was 11.6%, compared to 12.2% during the first quarter of 2006. SG&A expenses for the quarter were $9.9 million, compared to $10.9 million during the first quarter of 2006, while R& D expenses were $0.5 million, compared to $1.2 million during the first quarter of 2006.
“We made significant progress in stabilizing the business during what is usually our seasonally slowest quarter,” said John P. Yeros, Chairman and CEO of MPC Corporation. “While we’re still not satisfied with the overall results, we saw improvements in several key areas. We narrowed the operating and net losses compared to Q1 of last year and reduced the operating expenses of the business. These improvements give us confidence that we are making progress in turning the business around.”
More information about the Company’s results for the quarter ended March 31, 2007 will be available on the Company’s Form 10-Q quarterly report to be filed with the U.S.
Securities and Exchange Commission later today.
About MPC Corporation:
MPC Corporation (AMEX: MPZ), through its subsidiary MPC Computers, provides enterprise IT hardware solutions to mid-sized businesses, government agencies and education organizations. MPC offers standards-based server and storage products, along with PC products and computer peripherals, all of which are backed by an industry-leading level of service and support. For more information, visit MPC online at www.mpccorp.com.
Cautionary Statement
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the statement with respect to turning the Company’s business around. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of MPC Corporation to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. MPC Corporation continues to face significant liquidity challenges and there is no assurance that it will make sufficient progress in addressing these challenges, that it will be able to turn the business around or that it will be able to continue as a going concern. Other factors, which could materially affect such forward-looking statements, can be found in MPC Corporation’s' filings with the Securities and Exchange Commission at www.sec.gov, including risk factors relating to significant liquidity challenges, possible bankruptcy and other matters. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and MPC Corporation undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
MPC CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands except share data)
| Three Months Ended |
| March 31 |
| 2007 (Unaudited) | 2006 (Unaudited) |
| | | | | | |
Revenue | $ | 56,751 | | $ | 66,464 | |
| | | | | | |
Cost of revenue | | 50,180 | | | 58,373 | |
| | | | | | |
Gross margin | | 6,571 | | | 8,091 | |
| | | | | | |
Operating expenses | | | | | | |
Research and development expense | | 497 | | | 1,150 | |
Selling, general and administrative expense | | 9,913 | | | 10,909 | |
Depreciation and amortization | | 1,151 | | | 2,019 | |
Total operating expenses | | 11,561 | | | 14,078 | |
| | | | | | |
Operating loss | | (4,990 | ) | | (5,987 | ) |
| | | | | | |
Other (income) expense | | | | | | |
Interest expense, net | | 1,519 | | | 1,478 | |
Change in estimated fair value of derivative financial instruments | | (1,246 | ) | | - | |
Other expense | | (82 | ) | | 37 | |
Total other expense | | 191 | | | 1,515 | |
| | | | | | |
Net loss | $ | (5,181 | ) | $ | (7,502 | ) |
| | | | | | |
Basic and diluted weighted average Common | | | | | | |
Shares outstanding | | 12,695 | | | 11,347 | |
| | | | | | |
Basic and diluted loss per Common Share | $ | (0.41 | ) | $ | (0.66 | ) |
MPC CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
| March 31, | December 31, |
| 2007 | 2006 |
| (Unaudited) | | | |
ASSETS | | | | | | |
Current Assets | | | | | | |
Cash and cash equivalents | $ | 1,519 | | $ | 4,839 | |
Restricted cash | | 4,377 | | | 4,585 | |
Accounts receivable, net | | 33,550 | | | 45,643 | |
Inventories, net | | 20,911 | | | 18,189 | |
Prepaid maintenance and warranty costs | | 7,615 | | | 6,391 | |
Other current assets | | 790 | | | 935 | |
Total Current Assets | | 68,762 | | | 80,582 | |
| | | | | | |
Non-Current Assets | | | | | | |
Property and equipment, net | | 4,290 | | | 4,914 | |
Goodwill | | 22,197 | | | 22,197 | |
Acquired intangibles, net | | 9,656 | | | 10,108 | |
Long-term portion of prepaid maintenance and warranty costs | | 1,227 | | | 844 | |
Other assets | | 3,473 | | | 3,792 | |
Total Non-Current Assets | | 40,843 | | | 41,855 | |
TOTAL ASSETS | $ | 109,605 | | $ | 122,437 | |
| | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
Current Liabilities | | | | | | |
Accounts payable | $ | 29,544 | | $ | 32,536 | |
Accrued expenses | | 4,987 | | | 4,354 | |
Accrued licenses and royalties | | 2,194 | | | 1,540 | |
Current portion of accrued warranties | | 2,211 | | | 2,220 | |
Current portion of deferred revenue | | 17,774 | | | 15,607 | |
Notes payable and debt | | 28,154 | | | 34,834 | |
Total Current Liabilities | | 84,864 | | | 91,091 | |
| | | | | | |
Long Term Liabilities | | | | | | |
Non-current portion of accrued warranties | | 2,040 | | | 2,127 | |
Non-current portion of deferred revenue | | 22,826 | | | 22,979 | |
Derivative warrant liability | | 6,510 | | | 6,129 | |
Derivative financial instruments at estimated fair value | | 19,061 | | | 21,234 | |
Total Long Term Liabilities | | 50,437 | | | 52,469 | |
TOTAL LIABILITIES | | 135,301 | | | 143,560 | |
| | | | | | |
COMMITMENTS AND CONTINGENCIES | | | | | | |
| | | | | | |
Shareholders' Equity | | | | | | |
Preferred Stock, no par value; 1,000,000 shares authorized; no shares issued and outstanding at 2007 and 2006 | | - | | | - | |
Common Stock, no par value, 100,000,000 shares authorized; 13,073,907 and 12,147,438 shares issued and outstanding at 2007 and 2006, respectively | | 62,062 | | | 61,454 | |
Accumulated Deficit | | (87,758 | ) | | (82,577 | ) |
Total Shareholders' Equity (Deficit) | | (25,696 | ) | | (21,123 | ) |
| | | | | | |
TOTAL LIABILITIES AND EQUITY | $ | 109,605 | | $ | 122,437 | |
