GREENVILLE, S.C., June 22 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (OTC Pink Sheets: JPST.PK) today announced results for the second quarter and six months ended April 28, 2007. For the second quarter of fiscal 2007, JPS reported a net income of $0.5 million or $0.01 per diluted share, on sales of $44.0 million compared with a net income of $0.4 million, or $0.00 per diluted share, on sales of $39.7 million in the second quarter of fiscal 2006. For the first six months of fiscal 2007, the Company reported a net income of $1.0 million or $0.01 per diluted share, on sales of $81.7 million compared with a net income of $0.9 million, or $0.03 per diluted share, on sales of $81.0 million for the same period in fiscal 2006. Michael L. Fulbright, Chairman, President and Chief Executive Officer of JPS Industries, Inc. stated, "Our second quarter and first half have been very challenging. Strong performance in our Stevens(R) Urethane business and solid results from Composite Materials were mitigated by results from Stevens(R) Roofing business. The two primary factors driving Stevens(R) Roofing first half results were a very competitive pricing environment and weak market demand compared to last year's post 2005 hurricane season surge that lasted well into the spring months. Our May results were quite good across all three units, however, and that gives us the confidence that the second half of the year will show continued improvement." Commenting further, Mr. Fulbright stated, "Yesterday, we announced our planned acquisition of Hexcel Corporation's electronics, ballistics and general industrial reinforcement product lines, including the Anderson, South Carolina and Statesville, North Carolina facilities. We expect to close on this transaction this summer and look forward to the beginning of a new chapter for JPS Industries." Charles R. "Chuck" Tutterow, EVP and CFO of JPS Industries and President of Stevens Urethane added, "As previously discussed, the acquisition will be funded by a new $105 million senior and second lien credit facility arranged by Wachovia that will replace our existing facility currently set to expire on September 30, 2007. Also, favorable investment performance and actuarial results associated with legislative changes surrounding required funding will significantly lower our cash pension funding requirements beginning in Fiscal 2008." 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. JPS INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended April 28, April 29, April 28, April 29, 2007 2006 2007 2006 Net sales $ 44,036 $ 39,685 $ 81,744 $ 80,967 Cost of sales 38,694 34,434 71,152 70,239 Gross profit 5,342 5,251 10,592 10,728 Selling, general & administrative expenses 4,828 4,885 9,612 9,805 Operating profit 514 366 980 923 Interest expense. net 401 346 814 668 Income before income taxes 113 20 166 255 Provision for income taxes 42 1 62 10 Net income $ 71 $ 19 $ 104 $ 245 Weighted Average Number of common shares outstanding: Basic 9,516.959 9,456,959 9,496,959 9,442,726 Diluted 9,611,453 9,590,921 9,605,071 9,636,257 Basic earnings per common share $ 0.01 $ 0.00 $ 0.01 $ 0.03 Diluted earnings per common share $ 0.01 $ 0.00 $ 0.01 $ 0.03 Depreciation $ 1,153 1,277 $ 2,311 $ 2,538 Capital expenditures $ 441 $ 203 $ 538 $ 371 Cash taxes paid $ 0 $ 0 $ (2) $ (5) JPS INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) April 28, October 29, 2007 2006 ASSETS (Unaudited) Current Assets: Cash $ 1,098 $ 341 Receivables 29,775 31,857 Inventory 16,532 16,371 Prepaid expenses and other 2,038 1,773 Deferred income taxes 2,859 2,859 Total current assets 52,302 53,201 Property, plant and equipment, net 19,048 20,813 Deferred income taxes 26,703 26,730 Other assets 37 0 Total assets $ 98,090 $ 100,744 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 13,454 $ 14,956 Accrued salaries, benefits and withholdings 1,989 2,370 Accrued pension costs 4,665 9,657 Other accrued expenses 2,434 3,060 Current portion of long-term debt 22,589 19,796 Total current liabilities 45,131 49,839 Long-term debt 0 0 Other long-term liabilities 29,793 27,850 Total liabilities 74,924 77,689 Shareholders' equity: Common stock par value 100 100 Additional paid-in capital 123,514 123,507 Treasury stock (at cost) (1,803) (1,803) Additional minimum pension liability (62,788) (62,788) Accumulated deficit (35,857) (35,961) Total shareholders' equity 23,166 23,055 Total liabilities and shareholders' equity $ 98,090 $ 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

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