JPS Industries, Inc. Reports Improved Third Quarter Results
August 27, 2010
GREENVILLE, SC – August 27, 2010 – JPS Industries, Inc. (Pink Sheets: JPST) today announced results for the third quarter and nine months ended July 31, 2010.
For the third quarter of fiscal 2010, JPS reported net income of $0.5 million or $0.05 per diluted share, on sales of $46.1 million compared with net loss of $0.5 million or $(0.05) per diluted share, on sales of $40.0 million in the third quarter of fiscal 2009.
For the first nine months of fiscal 2010, the Company reported net income of $2.7 million or $0.26 per diluted share, on sales of $132.3 million compared with net income of $2.5 million or $0.24 per diluted share, on sales of $155.4 million for the same period in fiscal 2009.
Michael L. Fulbright, Chairman, President and Chief Executive Officer of JPS Industries, Inc. stated, After experiencing four quarters of revenue declines, we are pleased with the return to revenue growth for the third quarter. Importantly, on a 15% revenue improvement we saw our gross profit improve 70% and EBITDA improve 80% to $4.1 million for the quarter. It is gratifying to see the results of the actions we undertook in 2009 to reduce our cost structure evidenced not only in third quarter performance, but year-to-date, where EBITDA has grown 10% on a revenue decline of 15%. Also of significance, our third quarter results were delivered even as we experienced delays on the startup of several military contracts that had been scheduled to begin shipments in May, and are now expected to begin shipments in September. Both our business units, JPS Composite Materials and Stevens® Urethane, made significant contributions to the improvements in our quarterly and year-to-date measures and we see further improvement from both in the fourth quarter.
Charles R. (Chuck) Tutterow, EVP and CFO of JPS Industries and President of Stevens Urethane added, At quarter’s end our debt was $38 million representing an $8 million reduction since fiscal year end. This was despite the fact that Point Blank Solutions, Inc., one of the Company’s historically significant ballistics products customers, filed for bankruptcy in this same time frame. No significant reserve has been established yet against the pre-petition $4.2 million receivable.
Commenting further, Mr. Fulbright stated, The economic challenges we and many companies continue to face moderated somewhat in the first half of Calendar 2010, but have by no means vanished from the environment. Our focus remains intense on service to our customer and the markets they serve, continuous improvement in the quality of our products, lowering our cost structure in all facets of the business and broadening our product and market breadth. Challenges aside, we are confident we are well positioned to deliver solid financial performance over the next several years as the broad range of highly specialized markets we serve continues to improve and as we broaden our reach into those same markets.
JPS Industries, Inc.
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.
JPS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
July 31, August 1, July 31, August 1,
2010 2009 2010 2009
---- ---- ---- ----
NET SALES $46,111 $40,032 $132,274 $155,449
COST OF SALES 38,531 35,587 110,061 135,114
------ ------ ------- -------
Gross profit 7,580 4,445 22,213 20,335
SELLING, GENERAL &
ADMINISTRATIVE
EXPENSES 5,751 4,400 15,205 13,594
----- ----- ------ ------
Operating profit 1,829 45 7,008 6,741
Interest expense,
net 955 831 2,699 2,784
--- --- ----- -----
Income (loss) before
income taxes 874 (786) 4,309 3,957
Provision for income
taxes (benefit) 332 (295) 1,620 1,473
--- ---- ----- -----
Net income (loss) $542 $(491) $2,689 $2,484
==== ----- ====== ======
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING:
Basic 9,805,960 9,767,460 9,781,710 9,714,105
========= ========= ========= =========
Diluted 10,366,081 10,113,305 10,348,081 10,156,999
========== ========== ========== ==========
Basic earnings
(loss) per common
share $0.06 $(0.05) $0.27 $0.26
===== ====== ===== =====
Diluted earnings
(loss) per common
share $0.05 $(0.05) $0.26 $0.24
===== ====== ===== =====
Supplemental
information:
De preciation $2,290 $2,245 $7,121 $6,030
====== ====== ====== ======
Capital expenditures $196 $2,954 $505 $4,365
==== ====== ==== ======
Cash taxes paid $5 $73 $15 $297
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JPS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
July 31, October 31,
2010 2009
---- ----
ASSETS (Unaudited)
Current Assets:
Cash $192 $3,788
Accounts receivable 25,441 21,016
Inventories 29,884 27,794
Prepaid expenses and other 3,554 4,057
----- -----
Total current assets 59,071 56,655
------ ------
Property, plant and equipment, net 25,944 29,577
Deferred income taxes 59,531 61,039
Goodwill & nbsp; 10,100 10,100
Intangible assets, net 3,999 5,499
Deferred financing costs 828 1,151
--- -----
Total assets $159,473 $164,021
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $14,364 $14,985
Accrued pension costs 430 1,179
Accrued expenses, salaries, 3,872 3,385
benefits and withholding
Current portion of long-term debt 1,704 1,704
----- -----
Total current liabilities 20,370 21,253
------ ------
Long-term debt 36,459 44,216
Accrued pension cost 26,625 26,625
Other long-term liabilities 2,141 2,179
----- -----
Total liabilities 85,595 94,273
------ ------
Shareholders' equity:
Common stock, par value 102 101
Additional paid-in capital 125,014 123,572
Accumulated other (71,077) (71,075)
comprehensive loss
Accumulated earnings 19,839 17,150
------ ------
Total shareholders' equity 73,878 69,748
------ ------
Total liabilities and shareholders' equity $159,473 $164,021
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