JPS Industries, Inc. Announces First Quarter 2014 Results

GREENVILLE, S.C., March 7, 2014 /PRNewswire/ -- JPS Industries, Inc. (JPST.PK), a leading manufacturer of composite and urethane materials today announced financial and operating results for our first fiscal quarter ended February 1, 2014.

First Quarter FY 2014 Highlights:

• Net Sales of $42.0 million, a 34% increase over year ago first quarter 2013 due to stronger performance in the aerospace, ballistic and electronics market segments of our Composite Materials division
• Gross profit of $6.9 million, a 19% increase over year ago first quarter, yet with lower gross margin of 16.4% compared to 18.5% due to a greater mix of lower margin product sales
• Reduced recurring SG&A of $3.9 million, down 8% from year ago first quarter due to increased efforts to reduce and control costs
• Adjusted EBITDA of $3.3 million, a 46% increase over year ago first quarter
• GAAP net income of $1.1 million, more than a three-fold increase over year ago first quarter
• Earnings per share of $0.11 vs. $0.03 in the year ago first quarter

Certain reclassifications as well as re-allocations among quarterly periods have been made to the enclosed prior year's first quarter's financial statements to conform to the current year's presentation. These changes will have no effect on the previously reported results of operations for the full fiscal year 2013.

About JPS Industries, Inc.
JPS Industries, Inc. is a major U.S. manufacturer of sheet and mechanically formed glass and aramid substrate materials, extruded urethane film, sheet and tubing and ethylene vinyl acetate film 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: advanced composite materials; civilian and military aerospace components; printed electronic circuit boards; filtration and insulation products; specialty commercial construction substrates; high performance glass laminates for security and transportation applications; 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.

Non-GAAP Financial Measures
This release includes 'adjusted EBITDA', a non-GAAP financial measure as defined in Regulation G of the Securities Exchange Act of 1934. Management believes that the disclosure of non-GAAP financial measures, when presented in conjunction with the corresponding GAAP measures, provide useful information to the Company, investors and other users of the financial statements and other financial information in identifying and understanding operating performance for a given level of net sales and business trends.  Management believes that adjusted EBITDA is an important factor of the Company's business because it reflects financial performance that is unencumbered by debt service and other non-cash, non-recurring or unusual items. This financial measure is commonly used in the Company's industry.  However, adjusted EBITDA should not be considered as an alternative to cash flow from operating activities, as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with generally accepted accounting principles.  The Company's definition of adjusted EBITDA may differ from definitions of such financial measure used by other companies. The Company has provided a reconciliation of adjusted EBITDA to GAAP financial information in the attached Schedule of Non-GAAP reconciliations.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding the Company's assumptions, projections, expectations, targets, intentions or beliefs about future events. Words or phrases such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "targets," "will likely result," "will continue," "may," "could" or similar expressions identify forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. The Company cautions that while it makes such statements in good faith and it believes such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records, and other data available from third parties, it cannot assure you that the Company's projections will be achieved. In addition to other factors and matters discussed from time to time in the Company's filings with the U.S. Securities and Exchange Commission, or the SEC, some important factors that could cause actual results or outcomes for JPS or its subsidiaries to differ materially from those discussed in forward-looking statements include changes in general economic conditions in the markets in which it may compete and fluctuations in demand in the electronics industry; the Company's ability to sustain historical margins; increased competition; increased costs; loss or retirement of key members of management; currency exchange rate fluctuations; integration of acquired operations; international operations; compliance with environmental regulations; potential impacts of natural disasters on the electronics industry and the Company's supply chain; increases in the Company's cost of borrowings or unavailability of additional debt or equity capital on terms considered reasonable by management; and adverse state, federal or foreign legislation or regulation or adverse determinations by regulators. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors.

For Further Information:
Mikel H. Williams
President and Chief Executive Officer
(864) 239-3900

SOURCE JPS Industries, Inc.