JPS Industries, Inc. Reports Fourth Quarter 2008 and Full Year Results

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., [phone]

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