JPS Industries, Inc. First Quarter Results Show Seven Fold Operating Income Growth on Doubling of Revenues
14 March 2008 - 12:49AM
PR Newswire (US)
GREENVILLE, S.C., March 13 /PRNewswire-FirstCall/ -- JPS
Industries, Inc. (Pink Sheets: JPST) today announced results for
the first quarter ended January 26, 2008. For the first quarter of
fiscal 2008, JPS reported a net income of $0.9 million, or $0.09
per diluted share, on sales of $74.8 million compared with a net
income of $33,000, or $0.00 per diluted share, on sales of $37.7
million in the first quarter of fiscal 2007. EBITDA, a non GAAP
measure defined as operating income plus depreciation and
amortization, increased almost four fold to $6.0 million from $1.6
million as compared to the prior year's first quarter. Michael L.
Fulbright, JPS's chairman, president and chief executive officer,
stated, "We are very satisfied with our first quarter performance.
First quarter is traditionally our smallest in terms of revenue and
earnings because of the seasonal nature of a number of our markets
and, this year in particular, we felt the effects of winter weather
and economic headwinds. Even with these significant mitigating
factors, we delivered a solid performance, meeting our business
plan metrics. The integration of the Reinforcements businesses that
we purchased last August continues to progress smoothly, and the
melding into our JPS Composite Materials business unit is clearly
meeting our plans and expectations. During the quarter, our
Stevens(R) Urethane unit delivered its first commercial shipments
of ethylene vinyl acetate based Encapsolar(R) products, our new
proprietary encapsulation product for the photovoltaic market. This
reinforces our commitment not only to the growing solar energy
market, but to our stated objective of developing, manufacturing,
and commercializing new products for new and existing market
applications." Commenting further, Mr. Fulbright stated, "While we
expect factors such as the current credit market turmoil,
deteriorating housing market, and general economic softness to
persist through much of the year, we believe we have growth
opportunities in the markets we serve and have demonstrated that we
are well positioned to benefit from the opportunities that may
present themselves in this economic environment. We remain very
confident in realizing our potential over the coming quarters as
well as the next several years." JPS Industries, Inc. is a major
U.S. manufacturer of extruded urethanes, polypropylenes 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 broad
range of applications, including: printed electronic circuit
boards; advanced composite materials; aerospace and defense
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; commercial and institutional roofing; reservoir covers;
medical, automotive and industrial components; and soft body armor
for civilian and military applications. Headquartered in
Greenville, South Carolina, the Company operates five manufacturing
locations in Anderson and Slater, South Carolina; Statesville and
Westfield, 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 January 26, January 27, 2008 2007
NET SALES $ 74,758 $ 37,708 COST OF SALES 64,208 32,458 Gross
profit 10,550 5,250 SELLING, GENERAL & ADMINISTRATIVE EXPENSES
7,090 4,784 Operating income 3,460 466 Interest expense 2,006 413
Income before income taxes 1,454 53 Income taxes 545 20 Net income
$ 909 $ 33 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic
9,617,005 9,486,959 Diluted 9,884,477 9,602,757 Basic earnings per
common share $ 0.09 $ 0.00 Diluted earnings per common share $ 0.09
$ 0.00 Depreciation and amortization $ 2,580 $ 1,158 Capital
expenditures $ 209 $ 97 Income taxes paid (received), net $ 0 $ (2)
JPS INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in
thousands) January 26, October 27, 2008 2007 ASSETS (Unaudited)
Current assets: Cash $ 3,487 $ 2,903 Accounts receivable 37,895
45,361 Inventories 39,405 36,411 Prepaid expenses and other 7,432
8,043 Total current assets 88,219 92,718 Property, plant and
equipment, net 37,430 39,305 Deferred income taxes 38,395 38,922
Goodwill 7,661 7,641 Intangible assets, net 9,036 9,536 Other
assets 4,698 2,618 Total assets $ 185,439 $ 190,740 LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 20,900
$ 28,026 Accrued expenses, salaries, benefits and withholding 9,664
11,574 Current portion of long-term debt 1,704 1,704 Total current
liabilities 32,268 41,304 Long-term debt 79,046 76,616 Other
long-term liabilities 17,992 17,928 Total liabilities 129,306
135,848 Shareholders' equity: Common stock par value 100 100
Additional paid-in capital 123,571 123,558 Treasury stock (at cost)
(1,278) (1,597) Additional minimum pension liability (49,171)
(49,171) Accumulated deficit (17,089) (17,998) Total shareholders'
equity 56,133 54,892 Total liabilities and shareholders' equity $
185,439 $ 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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