GREENVILLE, S.C., Feb. 6 /PRNewswire-FirstCall/ -- JPS Industries,
Inc. (Pink Sheets: JPST) today announced results for the fourth
quarter and year ended October 27, 2007. For the fourth quarter of
fiscal 2007, JPS reported a net income of $16.7 million, or $1.73
per diluted share, on sales of $90.0 million compared with a net
income of $5.4 million, or $0.56 per diluted share, on sales of
$47.9 million in the fourth quarter of fiscal 2006. For fiscal
2007, the Company reported a net income of $18.0 million, or $1.86
per diluted share, on sales of $219.7 million compared with a net
income of $6.0 million, or $0.62 per diluted share, on sales of
$171.5 million for the same period in fiscal 2006. Michael L.
Fulbright, JPS's chairman, president and chief executive officer,
stated, "We had an outstanding quarter. For the fourth quarter
revenues were up 88% or $42.1 million. While most of the increase
was the result of our August acquisition, strong performances from
our JPS Composite Materials and Stevens Urethane(R) units
contributed meaningfully. Our operating income more than doubled to
$3.9 million even considering some one time transaction related
costs. We take much satisfaction from the fact that these results
were delivered in an economic environment that was clearly more
challenging than the prior year's fourth quarter as well as the
internal challenges we faced with our acquisition integration. The
transition and melding of the acquisition into our JPS Composite
Materials unit has gone smoothly and as we had planned. It is a
tribute to the attitude and work ethic of all our Composite
Material associates, old and new, that the integration has gone so
well to this point." Charles R. Tutterow, JPS's executive vice
president and chief financial officer, stated, "Our 2007 results
included twelve weeks of operations of the acquired reinforcements
business. In connection with the related purchase price accounting,
we wrote up inventory to its fair market value, which adversely
affected gross profit for the quarter by $817,000. Further, as a
result of our enhanced ability to utilize our $92 million of net
operating loss carryforwards, we released substantially all of our
deferred tax asset valuation allowance, resulting in a tax benefit
of $14.1 million for the year." Continuing, Mr. Tutterow stated,
"Pension expense declined from $420,000 in 2006 to $384,000 in 2007
and our funding position improved dramatically. We currently expect
contributions of $5.7 million in 2008 and less than $2 million in
2009. We ended the year with $78.3 million outstanding under our
$107 million credit facilities, thus we anticipate our borrowing
capacity and cash flow from operations will more than support our
ongoing $4-5 million in capital expenditures and additional growth
plans." Commenting further, Mr. Fulbright stated, "Clearly, the
first half of 2008 will present us with a challenging economic and
business environment. However, we're positioned well with our
strengthened product offerings in key markets, our expanded product
breadth as a result of the acquisition, our new product initiatives
throughout the Company, especially the commercial launch of our
Encapsolar(R) photovoltaic films from our Stevens Urethane unit,
and our strong balance sheet. We expect this will further improve
this year as a result of the earlier described decline in pension
funding requirements and our improved operating performance. As has
been our message for several years, we will be focused on operating
our businesses so they each reach their full potential, allowing
us, we believe, to take advantage of any and all opportunities to
enhance our Company for the benefit of our employees, customers,
and shareholders. We are most optimistic when we look at the
markets we serve over the next several years." JPS Industries, Inc.
is a major U.S. manufacturer of extruded urethanes, polypropylenes
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; commercial and institutional roofing; reservoir covers;
medical, automotive and industrial components; and soft body armor
for civilian and military applications. Headquartered in
Greenville, South Carolina, the Company operates five manufacturing
locations in Anderson and Slater, South Carolina; Statesville and
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 Twelve Months Ended Oct. 27, Oct.
28, Oct. 27, Oct. 28, 2007 2006 2007 2006 Net sales $ 90,048 $
47,904 $ 219,744 $ 171,545 Cost of sales 77,742 40,850 189,413
147,804 Gross profit 12,306 7,054 30,331 23,741 Selling, general
& administrative expenses 8,437 5,250 23,239 19,869 Operating
income 3,869 1,804 7,092 3,872 Interest expense 1,972 417 3,205
1,474 Income before income taxes 1,897 1,387 3,887 2,398 Provision
(Benefit) for income taxes (14,822) (3,975) (14,076) (3,586) Net
income $ 16,719 $ 5,362 $ 17,963 $ 5,984 Weighted Average Common
Shares Outstanding Basic 9,545,109 9,456,959 9,516,219 9,448,419
Diluted 9,710,842 9,593,452 9,647,379 9,619,135 Basic earnings per
common share $ 1.75 $ 0.57 $ 1.89 $ 0.63 Diluted earnings per
common share $ 1.73 $ 0.56 $ 1.86 $ 0.62 Depreciation and
amortization $ 2,619 $ 1,406 $ 6,095 $ 5,009 Capital expenditures $
365 $ 323 $ 1,022 $ 893 Cash taxes paid $ (2) $ (2) $ (4) $ (7) JPS
INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
October 27, October 28, 2007 2006 ASSETS (Unaudited) Current
Assets: Cash $ 2,903 $ 341 Accounts receivable 45,361 31,857
Inventories 36,411 16,371 Prepaid expenses and other 8,043 4,632
Total current assets 92,718 53,201 Property, plant and equipment,
net 39,305 20,813 Deferred income taxes 38,922 26,730 Goodwill
7,641 0 Intangible assets, net 9,536 0 Other assets 2,618 0 Total
assets $ 190,740 $ 100,744 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities: Accounts payable $ 28,026 $ 14,956 Accrued
pension costs 0 9,657 Accrued expenses, salaries, benefits and
withholding 11,574 5,430 Current portion of long-term debt 1,704
19,796 Total current liabilities 41,304 49,839 Long-term debt
76,616 0 Other long-term liabilities 17,928 27,850 Total
liabilities 135,848 77,689 Shareholders' equity: Common stock, par
value 100 100 Additional paid-in capital 123,558 123,507 Treasury
stock (at cost) (1,597) (1,803) Additional minimum pension
liability (49,171) (62,788) Accumulated deficit (17,998) (35,961)
Total shareholders' equity 54,892 23,055 Total liabilities and
shareholders' equity $ 190,740 $ 100,744 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
Copyright