Published:
JPS Industries, Inc. Reports Net Income of $13,159,000 on Gain From Sale of Business Unit and An Improvement in Operating Income of 27% From Continuing Operations
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 inGreenville, South
Carolina, the Company operates four manufacturing locations inAnderson and
Slater, South Carolina;Statesville, North Carolina; andEasthampton,
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
SOURCE JPS Industries, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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