JPS Industries, Inc. Announces 2011 Results and Engagement of Houlihan Lokey as Financial Advisor to Explore Strategic Alternatives

GREENVILLE, S.C., March 16, 2012 /PRNewswire/ -- JPS Industries, Inc. (JPST.PK) today announced results for the twelve months ended October 29, 2011.

For 2011, JPS reported sales of $190.3 million versus prior year sales of $186.7, an increase of 1.9%.  The Company reported a net loss of $0.9 million versus net income of $3.2 million in the prior period.  Excluding the effects of litigation in 2011, operating income in 2011 was $11.1 million versus $10.5 million in 2010, an increase of 5.7%.  Adjusted EBITDA for 2011 was $22.4 million versus $20.7 million in 2010, an increase of 8.2%.  The full 2011 Annual Report and Proxy has been mailed to shareholders and is also available at the Company's website.

Michael L. Fulbright, Chairman, President and Chief Executive Officer of JPS Industries, Inc. stated, "Our 2011 operating results show solid improvement over 2010 and continue the strong recovery from the economic challenges of 2009.  We achieved these results despite an economic environment that remained uncertain throughout the year and was further affected by geopolitical events that influenced supply, demand and raw material prices.  We are especially gratified to have reduced our debt over these past two years from $46 million to $29 million even as we further invested in modern equipment to support our growth businesses and contributed $5 million to our pension plan."

Commenting further, Mr. Fulbright stated, "Given our current performance and market positions, the Board of Directors has determined that now is an appropriate time to explore potential strategic alternatives we believe may exist for the Company.  We have engaged Houlihan Lokey to advise us in these matters and assist the Board in developing and executing those alternatives should the Board determine that they would enhance shareholder value.  We believe Houlihan's experience and their understanding of the markets we serve make them well qualified to advise our Board."

Commenting further, "As we communicated last September, a Special Committee of the Board of Directors of JPS was formed to assess a conditional, unsolicited $8.00 offer received from Steel Partners Holdings to acquire the Company.  After extensive discussions with Steel Partners and review with their advisors, the Special Committee determined and the Board of Directors unanimously agreed that the offer (which was subsequently lowered to $7.50) is inadequate and not in the best interest of our shareholders.  Discussions between the Special Committee and Steel Partners Holdings have not led to an acceptable transaction to date and, as such, the standstill agreement entered into on October 14, 2011 has expired.  The Special Committee and the entire Board believe engaging Houlihan Lokey to manage a complete process to explore strategic alternatives is the best way to maximize value for all shareholders."

Concluding his comments, Mr. Fulbright stated, "We are pleased with our overall performance and how we have positioned JPS Industries.  We believe our business strategies, balance sheet,  modernized facilities, new products for new and existing markets, and the resolution, albeit costly, of a four-year litigation matter in Massachusetts, combined with the strength of our organization, work together to create the solid positioning we currently enjoy.  We believe this will enhance our ability to execute acquisitions, dispositions or take further action to enhance value for all of our shareholders."

JPS Industries, Inc. is a major U.S. manufacturer of extruded urethane film, sheet and tubing, ethylene vinyl acetate film and sheet 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

SOURCE JPS Industries, Inc.