GREENVILLE, S.C., June 29 /PRNewswire-FirstCall/ -- JPS Industries,
Inc. (OTC Pink Sheets: JPST) today announced results for the second
quarter and six months ended April 29, 2006. For the second quarter
of fiscal 2006, JPS reported a net income of $19,000 or $0.00 per
diluted share, on sales of $39.7 million compared with a net income
of $1.9 million, or $0.20 per diluted share, on sales of $40.4
million in the second quarter of fiscal 2005. The second quarter of
2005 included a one time pre-tax benefit of $2.9 million associated
with the elimination of certain post employment benefits. For the
first six months of fiscal 2006, the Company reported a net income
of $0.2 million or $0.03 per diluted share, on sales of $81.0
million compared with a net income of $2.0 million, or $0.20 per
diluted share, on sales of $75.1 million for the same period in
fiscal 2005. Michael L. Fulbright, Chairman, President and Chief
Executive Officer of JPS Industries, Inc. stated, "Our second
quarter proved to be much more of a challenge than we anticipated
earlier this year. That said, excluding the accounting gain of $2.9
million in last year's second quarter, we were essentially flat
with prior year on the operating income line on a 2% revenue
decline. The performance of our three businesses was quite
different with results across the spectrum from very solid to fair.
Our JPS Composite Materials unit delivered a strong performance,
growing their revenue and earnings despite continued weakness in
the North American electronics market. Stevens Roofing delivered
improved results on the revenue and operating lines for the quarter
and are much improved for the six months as compared to 2005.
Stevens Urethane results for the quarter were reduced from the
prior year as a result of slower market demand and delivery
interruptions caused by a supplier quality problem." Commenting
further, Mr. Fulbright stated, "While we expect higher interest
rates, oil and energy related cost pressures, and a continuation of
elevated raw material prices to be negative factors for the
industrial products economic picture in the second half, we
anticipate our performance will show improvement over first half
results." 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. JPS INDUSTRIES,
INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands,
except per share data) (Unaudited) Three Months Ended Six Months
Ended April 29, April 30, April 29, April 30, 2006 2005 2006 2005
Net sales $39,685 $40,419 $80,967 $75,131 Cost of sales 34,434
35,076 70,239 64,763 Gross profit 5,251 5,343 10,728 10,368
Selling, general & administrative expenses 4,885 1,964 9,805
6,693 Operating income 366 3,379 923 3,675 Interest expense 346 230
668 465 Income before income taxes 20 3,149 255 3,210 Provision for
income taxes 1 1,212 10 1,236 Net income $ 19 $1,937 $ 245 $1,974
Weighted Average common shares outstanding Basic 9,456,959
9,414,259 9,442,726 9,394,259 Diluted 9,590,921 9,735,433 9,636,257
9,683,390 Basic earnings per common share $0.00 0.21 $ 0.03 $0.21
Diluted earnings per common share $0.00 $0.20 $ 0.03 $0.20
Depreciation $1,277 $1,265 $2,538 $2,528 Capital expenditures $203
$185 $371 $301 Cash taxes paid $0 $0 $(5) $8 JPS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS (Dollars in thousands) April 29,
October 28, 2006 2005 ASSETS (Unaudited) Current Assets: Cash $190
$348 Receivables 25,317 30,743 Inventory 17,423 14,290 Prepaid
expenses and other 4,125 3,916 Total current assets 47,055 49,297
Property, plant and equipment, net 23,054 25,164 Other assets
24,111 24,085 Total assets $94,220 $98,546 LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $11,652
$14,709 Accrued salaries, benefits and withholdings 1,978 2,259
Accrued pension costs 4,136 7,688 Other accrued expenses 1,511
2,335 Total current liabilities 19,277 26,991 Long-term debt 19,614
16,652 Deferred revenue and postemployment liabilities 37,881
37,702 Total liabilities 76,772 81,345 Shareholders' equity: Common
stock par value 100 100 Additional paid-in capital 123,451 123,395
Treasury stock (at cost) (1,803) (1,749) Additional minimum pension
liability (62,811) (62,811) Accumulated deficit (41,489) (41,734)
Total shareholders' equity 17,448 17,201 Total liabilities and
shareholders' equity $94,220 $98,546 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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