GREENVILLE, S.C., Sept. 16 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (Pink Sheets: JPST) today announced results for the third quarter and nine months ended August 1, 2009. For the third quarter of fiscal 2009, JPS reported net loss of $0.5 million or $(0.05) per diluted share, on sales of $40.0 million compared with net income from continuing operations of $0.6 million or $0.06 per diluted share, on sales of $47.8 million in the third quarter of fiscal 2008. For the first nine months of fiscal 2009, the Company reported net income of $2.5 million or $0.24 per diluted share, on sales of $155.4 million compared with net income from continuing operations of $3.4 million or $0.35 per diluted share, on sales of $159.4 million for the same period in fiscal 2008. Michael L. Fulbright, Chairman, President and Chief Executive Officer of JPS Industries, Inc. stated, "The market deterioration that we began to see in the second quarter accelerated throughout the third quarter and encompassed our entire range of products and markets. Current business conditions indicate that the deterioration in our markets will continue into the fourth quarter with the possibility of reaching bottom towards the end of the year. At this juncture predicting when and at what pace a rebound in market and business growth will return would be pure conjecture. That said, our focus has been and remains on taking all appropriate measures to weather what continues to be the most severe business and economic downturn we experienced in decades. Our organization's management of working capital, comprehensive cost reduction efforts, and product development initiatives remain the centerpiece of our efforts to position our Company to deal with today's economic reality. There are several measurements that clearly demonstrate the results of these initiatives; our debt at the end of the third quarter totaled $47.6 million versus $61.7 million at the beginning of our fiscal year, and our headcount has been reduced 20% since the beginning of the year which equates to roughly $7 million on an annualized basis in cost savings." Commenting further, Mr. Fulbright stated, "These past twelve months have been extraordinary in terms of the severity of the economic downturn we have encountered yet we remain confident that the markets we serve position us well to return to a solid growth scenario over the coming years as the general economic and business conditions stabilize and begin to improve." 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 Nine Months Ended ------------------- ------------------ August 1, July 26, August 1, July 26, 2009 2008 2009 2008 -------- ------- -------- ------- NET SALES $40,032 $47,791 $155,449 $159,401 COST OF SALES 35,587 39,882 135,114 132,878 Gross profit 4,445 7,909 20,335 26,523 SELLING, GENERAL & ADMINISTRATIVE EXPENSES 4,400 5,526 13,594 15,989 Operating profit 45 2,383 6,741 10,534 Interest expense, net 831 1,424 2,784 5,044 Income (loss) before income taxes and discontinued operations (786) 959 3,957 5,490 Provision for income taxes (benefit) (295) 360 1,473 2,059 Income (loss) from continuing operations (491) 599 2,484 3,431 Discontinued operations (net of taxes): Gain on sale of Stevens Roofing 0 12,977 0 12,977 Loss from discontinued operations 0 (417) 0 (1,849) Net income (loss) $(491) $13,159 $2,484 $14,559 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic 9,767,460 9,660,750 9,714,105 9,638,877 Diluted 10,113,305 10,031,745 10,156,999 9,958,111 Basic earnings (loss) per common share: Income (loss) from continuing operations $(0.05) $0.06 $0.26 $0.36 Discontinued operations (net of taxes): Gain on sale of Stevens Roofing 0 1.34 0 1.35 Loss from discontinued operations 0 (0.04) 0 (0.20) Net income (loss) $(0.05) $1.36 $0.26 $1.51 Diluted earnings (loss) per common share: Income (loss) from continuing operations $(0.05) $0.06 $0.24 $0.35 Discontinued operations (net of taxes): Gain on sale of Stevens Roofing 0 1.29 0 1.30 Loss from discontinued operations 0 (0.04) 0 (0.19) Net income (loss) $(0.05) $1.31 $0.24 $1.46 Supplemental information (continuing operations): Depreciation $2,245 $2,365 $6,030 $7,087 Capital expenditures $2,954 $825 $4,365 $1,747 Cash taxes paid $73 $17 $297 $17 JPS INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) August 1, November 1, 2009 2008 -------- ---------- ASSETS (Unaudited) Current Assets: Cash $582 $1,272 Accounts receivable 18,982 31,501 Inventories 26,067 39,119 Prepaid expenses and other 6,800 7,635 Total current assets 52,431 79,527 Property, plant and equipment, net 30,587 30,690 Deferred income taxes 49,242 50,616 Goodwill 7,953 7,953 Intangible assets, net 5,998 7,498 Other assets 1,202 1,506 Total assets $147,413 $177,790 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $4,746 $18,353 Accrued pension costs 341 809 Accrued salaries, benefits and withholdings 1,600 4,994 Other accrued expenses 1,643 2,498 Current portion of long-term debt 1,704 5,373 Total current liabilities 10,034 32,027 Long-term debt 45,854 56,390 Accrued pension cost 2,798 2,798 Other long-term liabilities 2,301 2,329 Total liabilities 60,987 93,544 Shareholders' equity: Common stock par value 101 100 Additional paid-in capital 122,696 124,257 Treasury stock (at cost) 0 (1,256) Net actuarial pension loss (55,452) (55,452) Accumulated equity 19,081 16,597 Total shareholders' equity 86,426 84,246 $147,413 $177,790 DATASOURCE: JPS Industries, Inc. CONTACT: Charles R. Tutterow, Executive Vice President and Chief Financial Officer, +1-864-239-3915

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