JPS Industries, Inc. Reports First Quarter Results
GREENVILLE, S.C., March 4 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (JPST.PK) today announced results for the first quarter ended January 30, 2010.
For the first quarter of fiscal 2010, JPS reported a net income of $1.3 million, or $0.13 per diluted share, on sales of $45.5 million compared with a net income of $2.0 million, or $0.19 per diluted share, on sales of $64.8 million in the first quarter of fiscal 2009.
Michael L. Fulbright, JPS's chairman, president and chief executive officer, stated, "Our first quarter results demonstrate quite clearly that the actions we took in 2009 to reduce cost, strengthen our organization, and streamline our facilities are on point to deliver solid financial results in today's still weak economic environment. Our first quarter revenue, while off last year's record first quarter performance, was some 26% higher than our prior quarter which we believe to be the low point from a revenue measure. Importantly, EBITDA, though modestly off last year's first quarter results, was $5.4 million, some 30% higher than last year's third and fourth quarters combined. Illustrative of and contributing to our results was a 200 basis point improvement in our gross profit margins to 16.30% for the quarter, a 12% reduction of SGA expenses, and a 17% reduction in our interest expense as we continue to reduce our long term debt level."
Commenting further, Mr. Fulbright stated, "While we continue to expect 2010 to be a most challenging year, we are confident the actions we have taken position us very well to navigate the current economic environment and deliver a solid earnings performance for the year. Importantly, when and as conditions improve in our broad array of markets, we believe our operational structure gives us significant leverage to deliver results that would exceed 2008's record performance."
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.
JPS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
------------------
Jan. 30 Jan. 31
2010 2009
---- ---
Net sales $45,483 $64,800
Cost of sales 38,042 55,553
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Gross profit 7,441 9,247
Selling, general &
administrative expenses 4,421 5,051
----- -----
Operating income 3,020 4,196
Interest expense, net 885 1,062
--- -----
Income before income taxes 2,135 3,134
Provision for income taxes 801 1,175
--- -----
Net income $1,334 $1,959
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Weighted average common
shares outstanding
Basic 9,757,460 9,660,750
========= =========
Diluted 10,330,081 10,200,693
========== ==========
Basic earnings per
common share $0.14 $0.20
===== =====
Diluted earnings per
common share $0.13 $0.19
===== =====
Supplemental information
Depreciation $2,361 $2,002
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Capital expenditures $27 $803
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Cash taxes paid $4 $221
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JPS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
January 30, October 31,
2010 2009
---- ----
ASSETS (Unaudited)
Current Assets:
Cash $1,118 $3,788
Accounts receivable 22,048 21,016
Inventories 25,021 27,794
Prepaid expenses and other 3,649 4,057
----- -----
Total current assets 51,836 56,655
------ ------
Property, plant and equipment, net 28,169 29,577
Deferred income taxes 60,292 61,039
Goodwill 10,100 10,100
Intangible assets, net 4,999 5,499
Deferred financing costs 1,049 1,151
----- -----
Total assets $156,445 $164,021
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $9,251 $14,985
Accrued pension costs 945 1,179
Accrued expenses, salaries, benefits and
withholding 2,554 3,385
Current portion of long-term debt 1,704 1,704
----- -----
Total current liabilities 14,454 21,253
------ ------
Long-term debt 41,719 44,216
Accrued pension cost 26,625 26,625
Other long-term liabilities 2,225 2,179
----- -----
Total liabilities 85,023 94,273
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Shareholders' equity:
Common stock, par value 101 101
Additional paid-in capital 123,957 123,572
Accumulated other comprehensive loss (71,120) (71,075)
Accumulated earnings 18,484 17,150
------ ------
Total shareholders' equity 71,422 69,748
------ ------
Total liabilities and shareholders' equity $156,445 $164,021
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CONTACT: Charles R. Tutterow |
|
Executive Vice President |
|
and Chief Financial Officer |
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864/239-3915 |
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SOURCE JPS Industries, Inc.
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