JPS Industries, Inc. Reports Second Quarter Results GREENVILLE,
S.C., June 21 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (Pink
Sheets: JPST) today announced results for the second quarter and
six months ended April 30, 2005. For the second quarter of fiscal
2005, JPS reported a net income of $1.9 million or $0.20 per
diluted share, on sales of $40.4 million compared with a net income
of $0.9 million, or $0.09 per diluted share, on sales of $38.2
million in the second quarter of fiscal 2004. For the first six
months of fiscal 2005, the Company reported a net income of $2.0
million or $0.20 per diluted share, on sales of $75.1 million
compared with a net income of $0.7 million, or $0.07 per diluted
share, on sales of $69.4 million for the same period in fiscal
2004. Charles R. Tutterow, JPS's Executive Vice President, Chief
Financial Officer and Secretary stated, "The second quarter of this
year benefited from a $2.9 million reduction (before taxes) in
reserves related to the future elimination of the Company's Retiree
Life Insurance and Post-Age 65 Medical Insurance Plans which is
reflected in the lower selling, general and administrative costs
for the quarter. The second quarter of Fiscal 2004's cost of sales
benefited from the elimination of $0.8 million of reserves
associated with the resolution of outstanding litigation." Michael
L. Fulbright, Chairman, President and Chief Executive Officer of
JPS Industries, Inc. stated, "Our second quarter was as we
expected, solid revenue growth with cost increases more than
offsetting the improvement in our top line numbers. Stevens(R)
Roofing led the way with double digit revenue growth, a trend that
we see continuing into the third quarter. The surge in raw material
prices we have experienced for the past six months appears to have
plateaued, which should provide us an opportunity to recover over
the balance of the year. During the latter part of the quarter we
were able to put price increases in place across all business
units, and consequently we would expect to see our third quarter
operating results to show improvement over second quarter,
excluding the effect of the insurance reserve reduction discussed
above." 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. 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 Six Months Ended April 30, May 1,
April 30, May 1, 2005 2004 2005 2004 Net sales $40,419 $38,170
$75,131 $69,378 Cost of sales 35,076 31,771 64,763 58,209 Gross
profit 5,343 6,399 10,368 11,169 Selling, general &
administrative expenses 1,964 4,861 6,693 9,609 Operating income
3,379 1,538 3,675 1,560 Interest expense 230 199 465 388 Income
before income taxes 3,149 1,339 3,210 1,172 Provision for income
taxes 1,212 475 1,236 475 Net income $1,937 $864 $1,974 $697
Weighted Average common shares outstanding Basic 9,414,259
9,349,259 9,394,259 9,330,926 Diluted 9,735,433 9,537,842 9,683,390
9,528,089 Basic earnings per common share $0.21 $0.09 $0.21 $0.07
Diluted earnings per common share $0.20 $0.09 $0.20 $0.07
Depreciation $1,265 $1,355 $2,528 $2,676 Capital expenditures $185
$154 $301 $213 Cash taxes paid $0 $0 $8 $0 JPS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS (Dollars in thousands) April 30,
October 30, 2005 2004 ASSETS (Unaudited) Current Assets: Cash $676
$407 Receivables 23,773 26,670 Inventory 15,761 15,087 Prepaid
expenses and other 4,281 5,180 Total current assets 44,491 47,344
Property, plant and equipment, net 27,306 29,478 Other assets
18,917 20,116 Total assets $90,714 $96,938 LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $10,941
$11,952 Accrued salaries, benefits and withholdings 2,110 3,602
Accrued pension costs 7,081 9,653 Other accrued expenses 2,951
3,447 Current portion of long-term debt 0 389 Total current
liabilities 23,083 29,043 Long-term debt 17,271 16,664 Deferred
revenue and postemployment liabilities 32,285 35,187 Total
liabilities 72,639 80,894 Shareholders' equity: Common stock par
value 100 100 Additional paid-in capital 123,339 123,282 Treasury
stock (at cost) (1,749) (1,749) Additional minimum pension
liability (53,874) (53,874) Accumulated deficit (49,741) (51,715)
Total shareholders' equity 18,075 16,044 Total liabilities and
shareholders' equity $90,714 $96,938 DATASOURCE: JPS Industries,
Inc. CONTACT: CONTACT: Charles R. Tutterow, Executive Vice
President and Chief Financial Officer of JPS Industries, Inc.,
+1-864-239-3915
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