GREENVILLE, S.C., Oct. 9 /PRNewswire-FirstCall/ -- JPS Industries,
Inc. (JPST.PK) today announced results for the third quarter and
nine months ended July 26, 2008. For the third quarter of fiscal
2008, JPS reported net income from continuing operations of $0.6
million or $0.06 per diluted share, on sales of $47.8 million
compared with net income from continuing operations of $0.9 million
or $0.09 per diluted share, on sales of $26.0 million in the third
quarter of fiscal 2007. For the first nine months of fiscal 2008,
the Company reported net income from continuing operations of $3.4
million or $0.35 per diluted share, on sales of $159.4 million
compared with net income from continuing operations of $2.0 million
or $0.21 per diluted share, on sales of $71.8 million for the same
period in fiscal 2007. Michael L. Fulbright, Chairman, President
and Chief Executive Officer of JPS Industries, Inc. stated, "The
third quarter marks a watershed in the strategic transformation of
our Company on which I'll comment further. First, however, let me
say the solid growth in revenue and operating results from our
continuing operations is most gratifying and clearly reinforces our
confidence in the potential of our "recast" Company. The quarter
was every bit as challenging as the prior six months, with
macroeconomic forces continuing to affect our various markets and a
continuation of the practically non-existent soft body armor market
we first experienced beginning in the second quarter this year. Our
solid results are especially satisfying in such a negatively-
impacted business environment. We made significant strides during
the quarter on a number of tactical fronts including initial
shipments of new products to new markets. Two of these new
products, hard armor ballistic products for the U.S. military's
MRAP(R) vehicles and our Encapsolar(R) TPU and EVA based
encapsulation films for the photovoltaic solar modular market are
now fully commercialized with shipments underway. These initiatives
along with recently received orders to support the restart of
production for the military's Improved Outer Tactical Vest (IOTV's)
will have a significant positive impact on our fourth quarter
performance. Charles R. "Chuck" Tutterow, EVP and CFO of JPS
Industries and President of Stevens Urethane added, "Our results
include a gain of $13 million, net of tax, from the sale of our
Stevens(R) Roofing business and comparable periods have been
adjusted to reflect it as a discontinued operation. EBITDA for the
third quarter increased 69% from $2.8 million to $4.7 million and
included $0.7 million of expenses related to the legal matter
described in our previous press release. Year to date, our net debt
has been reduced from $75.4 million to $54.4 million." Commenting
further, Mr. Fulbright stated, "Strategically, on July 1st we
completed the repositioning of our Company when we closed on the
sale of the Stevens(R) Roofing business unit to Dow Building
Solutions. The funds from this transaction were used to reduce our
long-term debt, making our already healthy, solid balance sheet
even more so. The flexibility this provides us to pursue all manner
of strategic and tactical opportunities is enormous in today's
environment. The domestic and global events of the past few weeks
have brought a new round of challenges and no doubt new
opportunities. We are well positioned for both and confident in our
ability to execute and deliver results to benefit our Company and
our shareholders." 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
Nine Months Ended July 26, July 28, July 26, July 28, 2008 2007
2008 2007 NET SALES $47,791 $26,036 $159,401 $71,807 COST OF SALES
39,882 21,434 132,878 59,309 Gross profit 7,909 4,602 26,523 12,498
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 5,526 2,732 15,989
8,052 Operating profit 2,383 1,870 10,534 4,446 Interest expense,
net 1,424 419 5,044 1,233 Income before income taxes and
discontinued operations 959 1,451 5,490 3,213 Provision for income
taxes 360 544 2,059 1,205 Income from continuing operations 599 907
3,431 2,008 Discontinued operations (net of taxes): Gain on sale of
Stevens Roofing 12,977 12,977 Loss from discontinued operations
(417) 233 (1,849) (764) Net income $13,159 $1,140 $14,559 $1,244
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic
9,660,750 9,516,959 9,638,877 9,501,959 Diluted 10,031,745
9,624,217 9,958,111 9,613,487 Basic earnings (loss) per common
share: Income from continuing operations $0.06 $0.10 $0.36 $0.21
Discontinued operations (net of taxes): Gain on sale of Stevens
Roofing 1.34 - 1.35 - Loss from discontinued operations (0.04) 0.02
(0.20) (0.08) Net income $1.36 $0.12 $1.51 $0.13 Diluted earnings
(loss) per common share: Income from continuing operations $0.06
$0.09 $0.35 $0.21 Discontinued operations (net of taxes): Gain on
sale of Stevens Roofing 1.29 - 1.30 - Loss from discontinued
operations (0.04) 0.02 (0.19) (0.08) Net income $1.31 $0.11 $1.46
$0.13 Supplemental information (continuing operations):
Depreciation $2,365 $934 $7,087 $2,805 Capital expenditures $825
$88 $1,747 $270 Cash taxes paid $17 $0 $17 $(2) JPS INDUSTRIES,
INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (Net Assets
from divested operations are not classified as assets held for
sale) July 26, October 27, 2008 2007 ASSETS (Unaudited) Current
Assets: Cash $306 $2,903 Receivables 24,207 45,361 Inventory 34,413
36,411 Prepaid expenses and other 1,812 3,301 Deferred income taxes
4,742 4,742 Total current assets 65,480 92,718 Property, plant and
equipment, net 31,271 39,305 Deferred income taxes 30,361 38,922
Goodwill 7,610 7,641 Intangible assets, net 8,036 9,536 Other
assets 7,377 2,618 Total assets $150,135 $190,740 LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $17,224
$28,026 Accrued salaries, benefits and withholdings 3,925 6,860
Other accrued expenses 3,474 4,714 Current portion of long-term
debt 1,704 1,704 Total current liabilities 26,327 41,304 Long-term
debt 52,981 76,616 Other long-term liabilities 1,030 17,928 Total
liabilities 80,338 135,848 Shareholders' equity: Common stock par
value 100 100 Additional paid-in capital 123,563 123,558 Treasury
stock (at cost) (1,256) (1,597) Additional minimum pension
liability (49,171) (49,171) Accumulated deficit (3,439) (17,998)
Total shareholders' equity 69,797 54,892 Total liabilities and
shareholders' equity $150,135 $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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