JPS Industries, Inc. First Quarter Results

Revenue Grows 14% and Net Income Improves 43% 


GREENVILLE, S.C., Feb. 17  /PRNewswire-FirstCall/ -- JPS Industries, Inc. (JPST.PK) today announced results for the first quarter ended January 31, 2009.

For the first quarter of fiscal 2009, JPS reported a net income of $2.0 million, or $0.19 per diluted share, on sales of $64.8 million compared with a net income from continuing operations of $1.4 million, or $0.15 per diluted share, on sales of $56.9 million in the first quarter of fiscal 2008.

Michael L. Fulbright, JPS's chairman, president and chief executive officer, stated, "We are pleased with the Company's performance for the quarter, especially when considering the current business environment.  Our results varied broadly from November through January, as the first half of the quarter was quite strong and well balanced, with the second half exhibiting significant weakness in a number of our markets.  Even as markets deteriorated, we were able to achieve revenue growth in several product lines allowing us to offset weakness in others.  Our organization's performance provided the basis for significant improvement in net income, meaningful reduction in inventories for the quarter, and importantly, substantial reduction in our debt level.  All-in-all a solid performance in challenging times."

Charles R. "Chuck" Tutterow, EVP and CFO of JPS Industries and President of Stevens Urethane added, "EBITDA for the first quarter declined $452,000, or 6.8% as compared to the prior year, primarily as a result of lower volumes in January.   Interest expense was about half of the prior year amount, driven by lower debt levels and substantially lower interest rates.  During the quarter, net debt decreased from $60.5 million to $53.7 million, allowing us to maintain a debt to EBITDA ratio of approximately 2X and availability under our revolving credit facility of approximately $25 million.

Commenting further, Mr. Fulbright stated, "The quarter's performance further strengthened our financial and strategic positioning of the Company at a time when clear weakness in the financial and business communities will be pervasive.  While we expect the next several quarters to be as challenging and weak as we have experienced in many years, our Company's strong balance sheet and the strategic repositioning we executed over the past eighteen months provides us the ability to pursue tactical and strategic opportunities that may well arise in the current economic chaos.  The balance of the year will be difficult, but our future likely never more filled with opportunity and potential."

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 hard and soft 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.

                              JPS INDUSTRIES, INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                (Dollars in thousands, except per share data)
                                   (Unaudited)

                                                     Three Months Ended
                                                    Jan. 31       Jan. 26
                                                     2009           2008

  Net sales                                       $ 64,800        $56,890
  Cost of sales                                     55,553         47,496
     Gross profit                                    9,247          9,394

  Selling, general & administrative expenses         5,051          5,092
     Operating income                                4,196          4,302

  Interest expense, net                              1,062          2,006
  Income before income taxes and discontinued
   operations                                        3,134          2,296

  Provision for income taxes                         1,175            861
  Income from continuing operations                  1,959          1,435

  Discontinued operations (net of taxes):
     Loss from discontinued operations                   0           (526)

  Net income                                        $1,959           $909

  Weighted Average common shares outstanding
     Basic                                       9,660,750      9,617,005
     Diluted                                    10,200,693      9,884,477

  Basic earnings per common share:
     Income from continuing operations               $0.20          $0.15
     Discontinued operations (net of taxes):
       Loss from discontinued operations                 0          (0.06)
  Net income                                         $0.20          $0.09

  Diluted earnings per common share:
     Income from continuing operations               $0.19          $0.15
     Discontinued operations (net of taxes):
       Loss from discontinued operations                 0          (0.06)

  Net income                                         $0.19          $0.09


  Supplemental information (continuing operations):
  Depreciation                                      $2,002        $ 2,348
  Capital expenditures                                $803           $195
  Cash taxes paid                                     $221             $0



                              JPS INDUSTRIES, INC.
                          CONSOLIDATED BALANCE SHEETS
                             (Dollars in thousands)

                                                   January 31,  November 1,
                                                      2009        2008
  ASSETS                                           (Unaudited)
  Current Assets:
    Cash                                                $180      $1,272
    Accounts receivable                               22,216      31,501
    Inventories                                       36,944      39,119
    Prepaid expenses and other                         6,934       7,635
    Total current assets                              66,274      79,527

  Property, plant and equipment, net                  30,008      30,690
  Deferred income taxes                               49,519      50,616
  Goodwill                                             7,953       7,953
  Intangible assets, net                               6,998       7,498
  Other assets                                         1,397       1,506

       Total assets                                 $162,149    $177,790

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current Liabilities:
    Accounts payable                                 $11,679     $18,353
    Accrued pension costs                                809         809
    Accrued expenses, salaries, benefits and
     withholding                                       4,410       7,492
    Current portion of long-term debt                  2,373       5,373

       Total current liabilities                      19,271      32,027

  Long-term debt                                      51,531      56,390
  Accrued pension cost                                 2,798       2,798
  Other long-term liabilities                          2,327       2,329

       Total liabilities                              75,927      93,544


  Shareholders' equity:
     Common stock, par value                             100         100
     Additional paid-in capital                      124,274     124,257
       Treasury stock (at cost)                       (1,256)     (1,256)
     Additional minimum pension liability            (55,452)    (55,452)
     Accumulated earnings                             18,556      16,597
       Total shareholders' equity                     86,222      84,246

         Total liabilities and shareholders' equity $162,149    $177,790


  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, [phone], of JPS Industries, Inc.

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