Revenue and Operating Income From Continuing Operations More Than
Doubles From Prior Year GREENVILLE, S.C., July 15
/PRNewswire-FirstCall/ -- JPS Industries, Inc. (OTC Pink Sheets:
JPST.PK) today announced results for the second quarter and six
months ended April 26, 2008. For the second quarter of fiscal 2008,
JPS reported net income from continuing operations of $1.8 million
or $0.18 per diluted share, on sales of $54.7 million compared with
net income from continuing operations of $0.8 million or $0.09 per
diluted share, on sales of $24.8 million in the second quarter of
fiscal 2007. For the first six months of fiscal 2008, the Company
reported net income from continuing operations of $3.7 million or
$0.37 per diluted share, on sales of $111.6 million compared with
net income from continuing operations of $1.5 million or $0.15 per
diluted share, on sales of $45.8 million for the same period in
fiscal 2007. Michael L. Fulbright, Chairman, President and Chief
Executive Officer of JPS Industries, Inc. stated, "In what was
clearly as challenging a quarter as we have experienced in many
years, our results were quite good. The macroeconomic forces
affecting the various markets we serve were clearly negative, and
our soft-armor ballistic market was, for all practical purposes,
totally absent with the postponement of purchases by DOD until
later in the summer. Even with these extremely negative pressures,
our organization performed quite well and delivered solid results.
While we do not see the overall business environment for third and
fourth quarter showing any dramatic improvement from second
quarter, we do expect considerable increases in revenue for JPS
Composite Materials through higher ballistic materials revenue for
the fourth quarter as the DOD releases funds for procurement of
improved outer tactical vests (IOTV's). We also expect continued
and growing sales from our hard armor product offerings." Charles
R. "Chuck" Tutterow, EVP and CFO of JPS Industries and President of
Stevens Urethane added, "The second half will be further
strengthened by Stevens Urethane's continued sales of Encapsolar(R)
TPU and EVA based encapsulation films for the photovoltaic solar
module industry as well as new paint protection films. Regarding
our financial performance, we have classified the results of our
recently divested Stevens Roofing and Geomembranes business as
discontinued operations on the statement of operations, although we
have not reflected the net assets of the business as assets held
for sale in the balance sheet. As of all the balance sheet dates
presented as well as today, we are in full compliance with all
covenants of our debt agreements and have availability under our
revolving credit agreement in excess of $25 million, which should
be more than adequate to support our growth plans." Commenting
further, Mr. Fulbright stated, "On July 1 we announced the
completion of the sale of Stevens(R) Roofing and Geomembranes to
Dow Building Solutions. The funds from this transaction give us
substantial financial flexibility to pursue strategic options that
are available to us within our Stevens(R) Urethane and JPS
Composite Materials businesses. These opportunities are broad and
give us significant potential for growth on the top and bottom
lines in each of these divisions. We are most enthusiastic about
our future prospects." JPS Industries, Inc. is a major U.S.
manufacturer of extruded urethanes, ethylene vinyl acetates and
mechanically formed glass and aramid substrate materials for
specialty applications in a wide expanse of markets requiring
highly engineered components. JPS's products are used in a wide
range of applications including: printed electronic circuit boards;
advanced composite materials; civilian and military aerospace
components; filtration and insulation products; specialty
commercial construction substrates; high performance glass
laminates for security and transportation applications;
photovoltaic solar modules; paint protection films; plasma display
screens; medical, automotive and industrial components; and soft
body armor for civilian and military applications. Headquartered in
Greenville, South Carolina, the Company operates four manufacturing
locations in Anderson and Slater, South Carolina; Statesville,
North Carolina; and Easthampton, Massachusetts. This press release
contains statements that are forward-looking statements regarding
future events. These statements are only predictions and there are
a number of important factors that could cause future events to
differ materially from those expressed in any such forward-looking
statements. These factors include, without limitation, the general
economic and business conditions affecting the Company's
industries, actions of competitors, changes in demand in certain
markets, the Company's ability to meet its debt service and pension
plan obligations (including its ability to meet the financial
obligations in its Credit Agreement), the Company's ability to
realize its deferred tax asset, the seasonality of the Company's
sales, the volatility of the Company's raw material, claims and
energy costs, the Company's dependence on key personnel and certain
large customers and other risk factors. The Company assumes no
responsibility to update the forward-looking statements contained
in this release as a result of new information, future events or
otherwise. JPS Industries, Inc. is not responsible for changes made
to this document by wire services or Internet Services. JPS
INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in
thousands, except per share data) (Unaudited) Three Months Ended
Six Months Ended April 26, April 28, April 26, April 28, 2008 2007
2008 2007 Net sales $54,720 $24,815 $111,610 $45,771 Cost of sales
45,500 20,819 92,996 37,875 Gross profit 9,220 3,996 18,614 7,896
Selling, general & administrative expenses 5,371 2,531 10,463
5,320 Operating profit 3,849 1,465 8,151 2,576 Interest expense,
net 1,223 231 2,742 468 Income before income taxes and discontinued
operations 2,626 1,234 5,409 2,108 Provision for income taxes 838
399 1,699 661 Income from continuing operations 1,788 835 3,710
1,447 Discontinued operations (net of income tax benefit of $543 in
2nd Qtr 2008, $357 in 2nd Qtr 2007, $859 in YTD 2008, and $599 in
YTD 2007) (1,297) (764) (2,310) (1,343) Net income $491 $71 $1,400
$104 Weighted Average Number of common shares outstanding: Basic
9,660,750 9,516,959 9,631,586 9,496,959 Diluted 9,997,566 9,611,453
9,926,026 9,605,071 Basic earnings (loss) per common share: Income
from continuing operations $0.18 $ 0.09 $0.39 $ 0.15 Discontinued
operations (net of taxes) (0.13) (0.08) (0.24) (0.14) Net income
(loss) $0.05 $ 0.01 $0.15 $0.01 Diluted earnings (loss) per common
share: Income from continuing operations $0.18 $ 0.09 $0.37 $ 0.15
Discontinued operations (net of taxes) (0.13) (0.08) (0.23) (0.14)
Net income (loss) $0.05 $ 0.01 $0.14 $ 0.01 Supplemental
information (continuing operations): Depreciation $2,374 $933
$4,722 $1,871 Capital expenditures $728 $117 $922 $182 Cash taxes
paid $0 $0 $0 $(2) JPS INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS
(Dollars in thousands) (Net Assets from divested operations are not
classified as assets held for sale) April 26, October 27, 2008 2007
ASSETS (Unaudited) Current Assets: Cash $1,699 $2,903 Receivables
38,611 45,361 Inventory 35,136 36,411 Prepaid expenses and other
2,734 3,301 Deferred income taxes 4,742 4,742 Total current assets
82,922 92,718 Property, plant and equipment, net 36,036 39,305
Deferred income taxes 38,118 38,922 Goodwill 7,610 7,641 Intangible
assets, net 8,536 9,536 Other assets 5,859 2,618 Total assets
$179,081 $190,740 LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities: Accounts payable $18,679 $28,026 Accrued salaries,
benefits and withholdings 4,997 6,860 Other accrued expenses 4,773
4,714 Current portion of long-term debt 1,704 1,704 Total current
liabilities 30,153 41,304 Long-term debt 74,385 76,616 Other
long-term liabilities 17,920 17,928 Total liabilities 122,458
135,848 Shareholders' equity: Common stock par value 100 100
Additional paid-in capital 123,570 123,558 Treasury stock (at cost)
(1,278) (1,597) Additional minimum pension liability (49,171)
(49,171) Accumulated deficit (16,598) (17,998) Total shareholders'
equity 56,623 54,892 Total liabilities and shareholders' equity
$179,081 $190,740 CONTACT: Charles R. Tutterow Executive Vice
President and Chief Financial Officer 864/239-3915 DATASOURCE: JPS
Industries, Inc. CONTACT: Charles R. Tutterow, Executive Vice
President and Chief Financial Officer of JPS Industries, Inc.,
+1-864-239-3915
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