JPS Industries, Inc. Reports Second Quarter Results

JPS Industries, Inc. Reports Second Quarter Results GREENVILLE, S.C., June 21 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (Pink Sheets: JPST) today announced results for the second quarter and six months ended April 30, 2005. For the second quarter of fiscal 2005, JPS reported a net income of $1.9 million or $0.20 per diluted share, on sales of $40.4 million compared with a net income of $0.9 million, or $0.09 per diluted share, on sales of $38.2 million in the second quarter of fiscal 2004. For the first six months of fiscal 2005, the Company reported a net income of $2.0 million or $0.20 per diluted share, on sales of $75.1 million compared with a net income of $0.7 million, or $0.07 per diluted share, on sales of $69.4 million for the same period in fiscal 2004. Charles R. Tutterow, JPS's Executive Vice President, Chief Financial Officer and Secretary stated, "The second quarter of this year benefited from a $2.9 million reduction (before taxes) in reserves related to the future elimination of the Company's Retiree Life Insurance and Post-Age 65 Medical Insurance Plans which is reflected in the lower selling, general and administrative costs for the quarter. The second quarter of Fiscal 2004's cost of sales benefited from the elimination of $0.8 million of reserves associated with the resolution of outstanding litigation." Michael L. Fulbright, Chairman, President and Chief Executive Officer of JPS Industries, Inc. stated, "Our second quarter was as we expected, solid revenue growth with cost increases more than offsetting the improvement in our top line numbers. Stevens(R) Roofing led the way with double digit revenue growth, a trend that we see continuing into the third quarter. The surge in raw material prices we have experienced for the past six months appears to have plateaued, which should provide us an opportunity to recover over the balance of the year. During the latter part of the quarter we were able to put price increases in place across all business units, and consequently we would expect to see our third quarter operating results to show improvement over second quarter, excluding the effect of the insurance reserve reduction discussed above." JPS Industries, Inc. is a major U.S. manufacturer of extruded urethanes, polypropylenes and mechanically formed glass substrates for specialty industrial applications. JPS specialty industrial products are used in a wide range of applications, including: printed electronic circuit boards; advanced composite materials; aerospace components; filtration and insulation products; surf boards; construction substrates; high performance glass laminates for security and transportation applications; plasma display screens; athletic shoes; commercial and institutional roofing; reservoir covers; and medical, automotive and industrial components. Headquartered in Greenville, South Carolina, the Company operates manufacturing locations in Slater, South Carolina; Westfield, 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 Six Months Ended April 30, May 1, April 30, May 1, 2005 2004 2005 2004 Net sales $40,419 $38,170 $75,131 $69,378 Cost of sales 35,076 31,771 64,763 58,209 Gross profit 5,343 6,399 10,368 11,169 Selling, general & administrative expenses 1,964 4,861 6,693 9,609 Operating income 3,379 1,538 3,675 1,560 Interest expense 230 199 465 388 Income before income taxes 3,149 1,339 3,210 1,172 Provision for income taxes 1,212 475 1,236 475 Net income $1,937 $864 $1,974 $697 Weighted Average common shares outstanding Basic 9,414,259 9,349,259 9,394,259 9,330,926 Diluted 9,735,433 9,537,842 9,683,390 9,528,089 Basic earnings per common share $0.21 $0.09 $0.21 $0.07 Diluted earnings per common share $0.20 $0.09 $0.20 $0.07 Depreciation $1,265 $1,355 $2,528 $2,676 Capital expenditures $185 $154 $301 $213 Cash taxes paid $0 $0 $8 $0 JPS INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) April 30, October 30, 2005 2004 ASSETS (Unaudited) Current Assets: Cash $676 $407 Receivables 23,773 26,670 Inventory 15,761 15,087 Prepaid expenses and other 4,281 5,180 Total current assets 44,491 47,344 Property, plant and equipment, net 27,306 29,478 Other assets 18,917 20,116 Total assets $90,714 $96,938 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $10,941 $11,952 Accrued salaries, benefits and withholdings 2,110 3,602 Accrued pension costs 7,081 9,653 Other accrued expenses 2,951 3,447 Current portion of long-term debt 0 389 Total current liabilities 23,083 29,043 Long-term debt 17,271 16,664 Deferred revenue and postemployment liabilities 32,285 35,187 Total liabilities 72,639 80,894 Shareholders' equity: Common stock par value 100 100 Additional paid-in capital 123,339 123,282 Treasury stock (at cost) (1,749) (1,749) Additional minimum pension liability (53,874) (53,874) Accumulated deficit (49,741) (51,715) Total shareholders' equity 18,075 16,044 Total liabilities and shareholders' equity $90,714 $96,938 DATASOURCE: JPS Industries, Inc. CONTACT: CONTACT: Charles R. Tutterow, Executive Vice President and Chief Financial Officer of JPS Industries, Inc., +1-864-239-3915