Revenue Grows 14% and Net Income Improves 43% GREENVILLE, S.C.,
Feb. 17 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (JPST.PK)
today announced results for the first quarter ended January 31,
2009. For the first quarter of fiscal 2009, JPS reported a net
income of $2.0 million, or $0.19 per diluted share, on sales of
$64.8 million compared with a net income from continuing operations
of $1.4 million, or $0.15 per diluted share, on sales of $56.9
million in the first quarter of fiscal 2008. Michael L. Fulbright,
JPS's chairman, president and chief executive officer, stated, "We
are pleased with the Company's performance for the quarter,
especially when considering the current business environment. Our
results varied broadly from November through January, as the first
half of the quarter was quite strong and well balanced, with the
second half exhibiting significant weakness in a number of our
markets. Even as markets deteriorated, we were able to achieve
revenue growth in several product lines allowing us to offset
weakness in others. Our organization's performance provided the
basis for significant improvement in net income, meaningful
reduction in inventories for the quarter, and importantly,
substantial reduction in our debt level. All-in-all a solid
performance in challenging times." Charles R. "Chuck" Tutterow, EVP
and CFO of JPS Industries and President of Stevens Urethane added,
"EBITDA for the first quarter declined $452,000, or 6.8% as
compared to the prior year, primarily as a result of lower volumes
in January. Interest expense was about half of the prior year
amount, driven by lower debt levels and substantially lower
interest rates. During the quarter, net debt decreased from $60.5
million to $53.7 million, allowing us to maintain a debt to EBITDA
ratio of approximately 2X and availability under our revolving
credit facility of approximately $25 million. Commenting further,
Mr. Fulbright stated, "The quarter's performance further
strengthened our financial and strategic positioning of the Company
at a time when clear weakness in the financial and business
communities will be pervasive. While we expect the next several
quarters to be as challenging and weak as we have experienced in
many years, our Company's strong balance sheet and the strategic
repositioning we executed over the past eighteen months provides us
the ability to pursue tactical and strategic opportunities that may
well arise in the current economic chaos. The balance of the year
will be difficult, but our future likely never more filled with
opportunity and potential." 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. JPS INDUSTRIES,
INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands,
except per share data) (Unaudited) Three Months Ended Jan. 31 Jan.
26 2009 2008 Net sales $ 64,800 $56,890 Cost of sales 55,553 47,496
Gross profit 9,247 9,394 Selling, general & administrative
expenses 5,051 5,092 Operating income 4,196 4,302 Interest expense,
net 1,062 2,006 Income before income taxes and discontinued
operations 3,134 2,296 Provision for income taxes 1,175 861 Income
from continuing operations 1,959 1,435 Discontinued operations (net
of taxes): Loss from discontinued operations 0 (526) Net income
$1,959 $909 Weighted Average common shares outstanding Basic
9,660,750 9,617,005 Diluted 10,200,693 9,884,477 Basic earnings per
common share: Income from continuing operations $0.20 $0.15
Discontinued operations (net of taxes): Loss from discontinued
operations 0 (0.06) Net income $0.20 $0.09 Diluted earnings per
common share: Income from continuing operations $0.19 $0.15
Discontinued operations (net of taxes): Loss from discontinued
operations 0 (0.06) Net income $0.19 $0.09 Supplemental information
(continuing operations): Depreciation $2,002 $ 2,348 Capital
expenditures $803 $195 Cash taxes paid $221 $0 JPS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS (Dollars in thousands) January 31,
November 1, 2009 2008 ASSETS (Unaudited) Current Assets: Cash $180
$1,272 Accounts receivable 22,216 31,501 Inventories 36,944 39,119
Prepaid expenses and other 6,934 7,635 Total current assets 66,274
79,527 Property, plant and equipment, net 30,008 30,690 Deferred
income taxes 49,519 50,616 Goodwill 7,953 7,953 Intangible assets,
net 6,998 7,498 Other assets 1,397 1,506 Total assets $162,149
$177,790 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities:
Accounts payable $11,679 $18,353 Accrued pension costs 809 809
Accrued expenses, salaries, benefits and withholding 4,410 7,492
Current portion of long-term debt 2,373 5,373 Total current
liabilities 19,271 32,027 Long-term debt 51,531 56,390 Accrued
pension cost 2,798 2,798 Other long-term liabilities 2,327 2,329
Total liabilities 75,927 93,544 Shareholders' equity: Common stock,
par value 100 100 Additional paid-in capital 124,274 124,257
Treasury stock (at cost) (1,256) (1,256) Additional minimum pension
liability (55,452) (55,452) Accumulated earnings 18,556 16,597
Total shareholders' equity 86,222 84,246 Total liabilities and
shareholders' equity $162,149 $177,790 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,
+1-864-239-3915, of JPS Industries, Inc.
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