JPS Industries, Inc. Reports Improved Third Quarter Results

GREENVILLE, S.C., Aug. 27 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (Pink Sheets: JPST) today announced results for the third quarter and nine months ended July 31, 2010.

For the third quarter of fiscal 2010, JPS reported net income of $0.5 million or $0.05 per diluted share, on sales of $46.1 million compared with net loss of $0.5 million or $(0.05) per diluted share, on sales of $40.0 million in the third quarter of fiscal 2009.

For the first nine months of fiscal 2010, the Company reported net income of $2.7 million or $0.26 per diluted share, on sales of $132.3 million compared with net income of $2.5 million or $0.24 per diluted share, on sales of $155.4 million for the same period in fiscal 2009.

Michael L. Fulbright, Chairman, President and Chief Executive Officer of JPS Industries, Inc. stated, "After experiencing four quarters of revenue declines, we are pleased with the return to revenue growth for the third quarter.  Importantly, on a 15% revenue improvement we saw our gross profit improve 70% and EBITDA improve 80% to $4.1 million for the quarter.  It is gratifying to see the results of the actions we undertook in 2009 to reduce our cost structure evidenced not only in third quarter performance, but year-to-date, where EBITDA has grown 10% on a revenue decline of 15%.  Also of significance, our third quarter results were delivered even as we experienced delays on the startup of several military contracts that had been scheduled to begin shipments in May, and are now expected to begin shipments in September.  Both our business units, JPS Composite Materials and Stevens® Urethane, made significant contributions to the improvements in our quarterly and year-to-date measures and we see further improvement from both in the fourth quarter."

Charles R. (Chuck) Tutterow, EVP and CFO of JPS Industries and President of Stevens Urethane added, "At quarter's end our debt was $38 million representing an $8 million reduction since fiscal year end.  This was despite the fact that Point Blank Solutions, Inc., one of the Company's historically significant ballistics products customers, filed for bankruptcy in this same time frame.  No significant reserve has been established yet against the pre-petition $4.2 million receivable."

Commenting further, Mr. Fulbright stated, "The economic challenges we and many companies continue to face moderated somewhat in the first half of Calendar 2010, but have by no means vanished from the environment.  Our focus remains intense on service to our customer and the markets they serve, continuous improvement in the quality of our products, lowering our cost structure in all facets of the business and broadening our product and market breadth.  Challenges aside, we are confident we are well positioned to deliver solid financial performance over the next several years as the broad range of highly specialized markets we serve continues to improve and as we broaden our reach into those same markets."

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.

SOURCE JPS Industries, Inc.