GREENVILLE, S.C., June 4 /PRNewswire-FirstCall/ -- JPS Industries,
Inc. (OTC:JPST) today announced results for the second quarter and
six months ended May 2, 2009. For the second quarter of fiscal
2009, JPS reported net income of $1.0 million or $0.10 per diluted
share, on sales of $50.6 million compared with net income from
continuing operations of $1.4 million or $0.14 per diluted share,
on sales of $54.7 million in the second quarter of fiscal 2008. For
the first six months of fiscal 2009, the Company reported net
income of $3.0 million or $0.29 per diluted share, on sales of
$115.4 million compared with net income from continuing operations
of $2.8 million or $0.28 per diluted share, on sales of $111.6
million for the same period in fiscal 2008. Michael L. Fulbright,
Chairman, President and Chief Executive Officer of JPS Industries,
Inc. stated, "We are pleased with our performance for the second
quarter and first half of 2009. Over the longer term we would not
be satisfied with these results, but in the current economic
environment they are quite solid. During the quarter we experienced
weakness across all our markets, however, our breadth of product
offerings and our broad market reach allowed us to avoid the
significant drop in revenue and earnings that many manufacturing
companies with a narrow product and market focus experienced.
Importantly, these results facilitated a significant reduction in
our net debt over the first six months. These accomplishments are a
credit to our entire organization." Charles R. "Chuck" Tutterow,
EVP and CFO of JPS Industries and President of Stevens Urethane
added, "At the end of April, net debt declined $13 million to $47.5
million allowing us to maintain a debt to trailing 12 month EBITDA
rate of approximately 2X. Further, funding for our frozen pension
plans is expected to be $800,000 in FY 2009 and $1.2 million in FY
2010, significantly lower than previous periods and forecasts.
Capital expenses are expected to be higher in the second half given
the completion of several projects, but our continued focus on
minimizing working capital and improving performance should permit
further meaningful reductions in our long term debt in the second
half." Commenting further, Mr. Fulbright stated, "As we
communicated in our first quarter release, we expect 2009 to be as
challenging an economic environment as we experienced in decades.
That sentiment was reinforced in the second quarter. Like many
companies our order cycle is a very short time horizon, so
predicting a bottom or an upturn in our markets is not a productive
exercise. All this said, we are positioned well with our broad
product and market reach, our very strong balance sheet, our
relentless focus on cost reduction initiatives, our strong
attention to working capital management, our product quality
improvement initiatives, and our development efforts geared to new
products and new markets. We're confident in our future potential,
and while no one enjoys these cycles, we are well situated to take
advantage of the opportunities this type environment produces." 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 hard and soft 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. CONTACT: Charles R.
Tutterow Executive Vice President and Chief Financial Officer
864/239-3915 JPS INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF
OPERATIONS (Dollars in thousands, except per share data)
(Unaudited) Three Months Ended Six Months Ended May 2, April 26,
May 2, April 26, 2009 2008 2009 2008 Net sales $50,617 $54,720
$115,417 $111,610 Cost of sales 43,974 45,500 99,527 92,996 Gross
profit 6,643 9,220 15,890 18,614 Selling, general &
administrative expenses 4,143 5,371 9,194 10,463 Operating profit
2,500 3,849 6,696 8,151 Interest expense, net 891 1,614 1,953 3,620
Income before income taxes and discontinued operations 1,609 2,235
4,743 4,531 Provision for income taxes 593 838 1,768 1,699 Income
from continuing operations 1,016 1,397 2,975 2,832 Discontinued
operations (net of taxes): Loss from discontinued operations 0
(906) 0 (1,432) Net income $1,016 $491 $2,975 $1,400 Weighted
Average Number of common shares outstanding: Basic 9,719,105
9,660,750 9,699,653 9,631,586 Diluted 10,067,353 9,997,566
10,112,397 9,926,026 Basic earnings per common share: Income from
continuing operations $0.10 $0.14 $0.31 $0.30 Discontinued
operations (net of taxes): Loss from discontinued operations 0
(0.09) 0 (0.15) Net income $0.10 $0.05 $0.31 $0.15 Diluted earnings
per common share: Income from continuing operations $0.10 $0.14
$0.29 $0.28 Discontinued operations (net of taxes): Loss from
discontinued operations 0 (0.09) 0 (0.14) Net income $0.10 $0.05
$0.29 $0.14 Supplemental information (continuing operations):
Depreciation $1,783 $2,374 $3,785 $4,722 Capital expenditures $608
$728 $1,411 $922 Cash taxes paid $3 $0 $224 $0 JPS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS (Dollars in thousands) May 2, November
1, 2009 2008 ASSETS (Unaudited) Current Assets: Cash $219 $1,272
Accounts receivable 21,103 31,501 Inventories 29,744 39,119 Prepaid
expenses and other 6,817 7,635 Total current assets 57,883 79,527
Property, plant and equipment, net 29,110 30,690 Deferred income
taxes 48,967 50,616 Goodwill 7,953 7,953 Intangible assets, net
6,498 7,498 Other assets 1,313 1,506 Total assets $151,724 $177,790
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts
payable $8,186 $18,353 Accrued pension costs 575 809 Accrued
salaries, benefits and withholdings 1,898 4,994 Other accrued
expenses 1,546 2,498 Current portion of long-term debt 1,704 5,373
Total current liabilities 13,909 32,027 Long-term debt 45,980
56,390 Accrued pension cost 2,798 2,798 Other long-term liabilities
2,317 2,329 Total liabilities 65,004 93,544 Shareholders' equity:
Common stock par value 100 100 Additional paid-in capital 123,525
124,257 Treasury stock (at cost) (1,025) (1,256) Net actuarial
pension loss (55,452) (55,452) Accumulated equity 19,572 16,597
Total shareholders' equity 86,720 84,246 Total liabilities and
shareholders' equity $151,724 $177,790 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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