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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