GREENVILLE, S.C., Dec. 23 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (JPST.PK) today announced results for the fourth quarter and year ended November 1, 2008. For the fourth quarter of fiscal 2008, JPS reported a net income from continuing operations of $20.3 million, or $1.99 per diluted share, on sales of $73.1 million compared with a net income from continuing operations of $16.6 million, or $1.71 per diluted share, on sales of $67.0 million in the fourth quarter of fiscal 2007. The fourth quarter results include a tax benefit associated with the reduction of the deferred tax valuation allowance of $16.9 million and $14.9 million for 2008 and 2007, respectively. For fiscal year 2008, the Company reported a net income from continuing operations of $23.8 million, or $2.35 per diluted share, on sales of $232.5 million compared with a net income from continuing operations of $18.6 million, or $1.93 per diluted share, on sales of $138.8 million for fiscal year 2007. Michael L. Fulbright, JPS's chairman, president and chief executive officer, stated, "Our full year results were excellent, exceeded only by an outstanding fourth quarter performance. "It is a tribute to our entire organization and the business leaders we have throughout the Company that they dealt with the many challenges we face in today's global economic environment, and did so in such an outstanding manner. Our results were broad-based with strong contributions from both of our Stevens(R) Urethane Products and JPS Composite Materials operating units. Products we design and manufacture to meet the requirements for safety and security, alternative energy production, aerospace, medical, infrastructure and defense markets offset the weakness we saw in commercial construction and electrical/electronic based markets. "Our performance was most gratifying in light of the strategic makeover we have accomplished in the past eighteen months and it is very satisfying to have accomplished it during such turbulent economic conditions." Charles R. Tutterow, JPS's executive vice president and chief financial officer, stated, "Results for fiscal year 2008 included pension and post employment income of $576,000 versus an expense of $386,000 for fiscal year 2007. For fiscal year 2009, we anticipate pension plan payments of approximately $800,000, down significantly from the last several years. Our financial position remains strong and we expect to finish calendar year 2008 with over $30 million of availability and less than $50 million of net borrowings under our credit facilities. As such, we are capable of investing as necessary to grow our businesses and the Board of Directors has approved the repurchase, from time to time, of up to $2 million in shares of the Company's common stock in open market purchases to enhance shareholder value." Commenting further, Mr. Fulbright stated, "We have never been more solidly positioned with our businesses, our organization, and our balance sheet. With clearly the most challenging economic environment most companies have seen over the past four decades our Company is prepared and fully engaged to deal with the pressures and capitalize on the opportunities that lie ahead." 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. 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 Twelve Months Ended Nov. 1, Oct. 27, Nov. 1, Oct. 27, 2008 2007 2008 2007 NET SALES $73,086 $66,961 $232,487 $138,768 COST OF SALES 60,331 57,274 193,209 116,583 Gross profit 12,755 9,687 39,278 22,185 SELLING, GENERAL & ADMINISTRATIVE EXPENSES 7,909 5,997 23,898 14,049 Operating income 4,846 3,690 15,380 8,136 Interest expense, net 1,452 1,972 6,496 3,205 Income before income taxes and discontinued operations 3,394 1,718 8,884 4,931 Provision (Benefit) for income taxes (16,938) (14,889) (14,879) (13,684) Income from continuing operations 20,332 16,607 23,763 18,615 Discontinued operations (net of taxes): Gain on sale of Stevens Roofing 592 0 13,569 0 Loss from discontinued operations (54) 112 (1,903) (652) Net income $20,870 $16,719 $35,429 $17,963 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 9,660,750 9,545,109 9,643,252 9,516,219 Diluted 10,206,067 9,710,842 10,115,652 9,647,379 Basic earnings (loss) per common share: Income from continuing operations $2.11 $1.74 $2.46 $1.96 Discontinued operations (net of taxes): Gain on sale of Stevens Roofing 0.06 0 1.41 0 Loss from discontinued operations (0.01) 0.01 (0.20) (0.07) Net income $2.16 $ 1.75 $3.67 $1.89 Diluted earnings (loss) per common share: Income from continuing operations $1.99 $1.71 $2.35 $1.93 Discontinued operations (net of taxes): Gain on sale of Stevens Roofing 0.06 0 1.34 0 Loss from discontinued operations (0.01) 0.01 (0.19) (0.07) Net income $2.04 $1.72 $3.50 $1.86 Supplemental information (continuing operations): Depreciation $3,143 $2,386 $10,230 $5,191 Capital expenditures $1,357 $305 $3,104 $575 Cash taxes paid $6 $(2) $23 $(4) JPS INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) November 1, October 27, 2008 2007 ASSETS (Unaudited) Current Assets: Cash $1,272 $2,903 Accounts receivable 31,501 45,361 Inventories 39,119 36,411 Prepaid expenses and other 7,635 8,043 Total current assets 79,527 92,718 Property, plant and equipment, net 30,690 39,305 Deferred income taxes 50,755 38,922 Goodwill 7,953 7,641 Intangible assets, net 7,498 9,536 Other assets 1,506 2,618 Total assets $177,929 $190,740 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $18,353 $28,026 Accrued pension costs 809 0 Accrued expenses, salaries, benefits and withholding 7,492 11,574 Current portion of long-term debt 5,373 1,704 Total current liabilities 32,027 41,304 Long-term debt 56,390 76,616 Accrued pension cost 2,798 0 Other long-term liabilities 2,916 17,928 Total liabilities 94,131 135,848 Shareholders' equity: Common stock, par value 100 100 Additional paid-in capital 124,257 123,558 Treasury stock (at cost) (1,256) (1,597) Additional minimum pension liability (55,452) (49,171) Accumulated earnings (deficit) 16,149 (17,998) Total shareholders' equity 83,798 54,892 Total liabilities and shareholders' equity $177,929 $190,740 DATASOURCE: JPS Industries, Inc. CONTACT: Charles R. Tutterow, Executive Vice President and Chief Financial Officer, JPS Industries, Inc., +1-864-239-3915

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