MISCOR Group Reports Strong Results and Continued Profitability for Q3 2012

 MISCOR Group Reports Strong Results and Continued Profitability for Q3 2012

Amounts in 000's

PR Newswire

MASSILLON, Ohio, Nov. 12, 2012

MASSILLON, Ohio, Nov. 12, 2012 /PRNewswire/ --MISCOR Group, Ltd. (OTCQB:
MIGL), a provider of electro-mechanical repair and complementary services to a
broad range of industries, today reported a 113.7% increase in net income for
the three months ending September 30, 2012, compared to the prior-year period.
The increase in net income is a direct result of improved operating results in
the Industrial Services and Rail Services segments.

"We are pleased to report continued revenue and earnings growth in the third
quarter of 2012," stated Michael P. Moore, President and CEO of MISCOR Group.
"The results this past year reflect our success in executing on the strategic
growth initiatives put in place during 2011."

For the three months ended September 30, 2012, the Company reported a $511, or
4.5%, increase in net revenues, to $11,822, compared to net revenues of
$11,311 for the same period in 2011, attributed to strong demand for Rail
Services segment. Net income for the quarter totaled $750, compared to $351
for the third quarter of 2011, an increase of $399, or 113.7%, due primarily
to improved operating margins and reduced interest expense. Correspondingly,
basic and fully diluted earnings per share increased to $0.06 per share, as
compared to $0.03 per basic and fully diluted share for the same period in
2011. EBITDA during the quarter increased by $356 to $1,366, from $1,010 for
the same period in 2011.

For the nine months ended September 30, 2012, the Company reported a $3,096,
or 9.0%, increase in net revenues, to $37,562, compared to net revenues of
$34,466 for the same period in 2011. Year-to-date net income totaled $2,319,
compared to $1,073 for the third quarter of 2011, an increase of $1,246, or
116.1%, due primarily to improved operating margins and reduced interest
expense. Correspondingly, fully diluted earnings per share increased to $0.19
per share, as compared to $0.09 per fully diluted share for the same period in
2011. EBITDA during the nine months ended September 30, 2012 increased by
$1,185 to $4,159, from $2,974 for the same period in 2011. For additional
financial information, the reader is strongly encouraged to review the
Company's most recent Form 10-Q filed with the Security and Exchange
Commission on November 9, 2012.

"I am extremely proud of the results our team achieved this quarter. Our
superior quality and persistent margin focus have allowed us to more than
double net income for the quarter, and also increase our operating cash flows
by 83% over last year," Moore continued. "Our value proposition remains
steadfast, providing superior quality through unmatched experience, quality
and innovation. We remain focused on further profit improvements, while
solidifying our position as a leading provider of industrial and rail services
in 2013."

About MISCOR Group, Ltd.
Massillon, Ohio-based MISCOR Group, Ltd. (OTCQB: MIGL) provides electrical and
mechanical solutions to industrial, commercial and institutional customers
through two segments: Industrial Services, consisting of the Company's
maintenance and repair services to several industries, including electric
utilities, wind power, transportation, chemical, oil, pulp and paper, metal
manufacturing and forming, and repairing, manufacturing, and remanufacturing
industrial lifting magnets for the steel and scrap industries; and Rail
Services, consisting of the Company's manufacturing of power assemblies,
engine parts, and other components related to large diesel engines.

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995. Words such as "anticipates," "believes," "estimates,"
"expects," "intends," "should," "could," "will," or variations of such words
and similar expressions are intended to identify forward-looking statements.
These forward-looking statements reflect the Company's views, expectations and
beliefs at the time such statements were made with respect to such matters,
and may cover such items as the Company's future plans, objectives, events,
contract pricing and results such as revenues, expenses, income, earnings per
share, capital expenditures, operating margins, financial position, expected
results of operations and other financial items. There are a number of
factors, many of which are beyond the Company's control, which could cause
actual results and outcomes to differ materially from those described in the
forward-looking statements. Forward-looking statements are not guarantees of
future performance and involve certain risks, uncertainties and assumptions
("Risk Factors") that make the timing, extent, likelihood and degree of
occurrence of these matters difficult to predict. Risk Factors include, among
others: price of raw materials, ability to win and service competitively
priced new contracts in sufficient amounts to operate and expand effectively,
employee turnover, ability to compete in highly competitive, geographically
diverse marketplaces, ability to complete planned divestitures and varying and
sometimes volatile economic conditions. For further discussion of risks and
uncertainties, individuals should refer to the Company's SEC filings. MISCOR
Group, Ltd. undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances occurring after
this press release is issued. You are cautioned not to place undue reliance on
these forward looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their entirety
by this cautionary statement.



MISCOR Group, Ltd.
EBITDA Calculation
                              Three months ended
                              September 30, 2012     October 2, 2011
                                                       Restated
EBITDA - Consolidated
Net income (loss)             $             $           
                               750                     351
Add back:
  Interest Expense            189                      228
  Depreciation and            415                      435
  amortization
  Income taxes                12                       (4)
EBITDA (1)                    $              $          
                              1,366                   1,010
                              Nine months ended
                              September 30, 2012     October 2, 2011
                                                       Restated
EBITDA - Consolidated
Net income (loss)             $              $          
                              2,319                   1,073
Add back:
  Interest Expense            556                      738
  Depreciation and            1,228                    1,231
  amortization
  Income taxes                56                       (68)
EBITDA (1)                    $              $          
                              4,159                   2,974



(1) EBITDA represents earnings before interest expense, income taxes,
depreciation and amortization. Our management believes EBITDA is useful in
evaluating our operating performance compared to that of other companies in
our industry because the calculation of EBITDA generally eliminates the
effects of financing and income taxes and the accounting effects of capital
spending and acquisitions. We believe EBITDA is useful to investors to assist
them in getting a more accurate picture of our results from operations.

However, EBITDA is not a recognized measurement under GAAP and when analyzing
our operating performance, readers should use EBITDA in addition to, and not
as an alternative for, net income as determined in accordance with GAAP.
Because not all companies use identical calculations, our presentation of
EBITDA may not be comparable to similarly titled measures of other companies.
Furthermore, EBITDA is not intended to be a measure of free cash flow for our
management's discretionary use, as it does not consider certain cash
requirements such as tax and debt service payments. The amounts shown for
EBITDA also differ from the amounts calculated under similarly titled
definitions in our debt instruments, which are further adjusted to reflect
certain other cash and non-cash charges and are used to determine compliance
with financial covenants and our ability to engage in certain activities, such
as incurring additional debt and making certain restricted payments.

SOURCE MISCOR Group, Ltd.

Contact: Trisha Abbruzzi, MISCOR Group, Ltd., +1-330-830-3526,
tabbruzzi@miscor.com
 
Press spacebar to pause and continue. Press esc to stop.