JPS Industries, Inc. Reports Second Quarter Results
Jun 4, 2009 6:36:00 PM
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View Additional ProfilesGREENVILLE, S.C., June 4 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (OTC: JPST) today announced results for the second quarter and six months ended May 2, 2009.
For the second quarter of fiscal 2009, JPS reported net income of $1.0 million or $0.10 per diluted share, on sales of $50.6 million compared with net income from continuing operations of $1.4 million or $0.14 per diluted share, on sales of $54.7 million in the second quarter of fiscal 2008.
For the first six months of fiscal 2009, the Company reported net income of $3.0 million or $0.29 per diluted share, on sales of $115.4 million compared with net income from continuing operations of $2.8 million or $0.28 per diluted share, on sales of $111.6 million for the same period in fiscal 2008.
Michael L. Fulbright, Chairman, President and Chief Executive Officer of JPS Industries, Inc. stated, "We are pleased with our performance for the second quarter and first half of 2009. Over the longer term we would not be satisfied with these results, but in the current economic environment they are quite solid. During the quarter we experienced weakness across all our markets, however, our breadth of product offerings and our broad market reach allowed us to avoid the significant drop in revenue and earnings that many manufacturing companies with a narrow product and market focus experienced. Importantly, these results facilitated a significant reduction in our net debt over the first six months. These accomplishments are a credit to our entire organization."
Charles R. "Chuck" Tutterow, EVP and CFO of JPS Industries and President of Stevens Urethane added, "At the end of April, net debt declined $13 million to $47.5 million allowing us to maintain a debt to trailing 12 month EBITDA rate of approximately 2X. Further, funding for our frozen pension plans is expected to be $800,000 in FY 2009 and $1.2 million in FY 2010, significantly lower than previous periods and forecasts. Capital expenses are expected to be higher in the second half given the completion of several projects, but our continued focus on minimizing working capital and improving performance should permit further meaningful reductions in our long term debt in the second half."
Commenting further, Mr. Fulbright stated, "As we communicated in our first quarter release, we expect 2009 to be as challenging an economic environment as we experienced in decades. That sentiment was reinforced in the second quarter. Like many companies our order cycle is a very short time horizon, so predicting a bottom or an upturn in our markets is not a productive exercise. All this said, we are positioned well with our broad product and market reach, our very strong balance sheet, our relentless focus on cost reduction initiatives, our strong attention to working capital management, our product quality improvement initiatives, and our development efforts geared to new products and new markets. We're confident in our future potential, and while no one enjoys these cycles, we are well situated to take advantage of the opportunities this type environment produces."
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 hard and soft 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
JPS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
May 2, April 26, May 2, April 26,
2009 2008 2009 2008
Net sales $50,617 $54,720 $115,417 $111,610
Cost of sales 43,974 45,500 99,527 92,996
Gross profit 6,643 9,220 15,890 18,614
Selling, general &
administrative
expenses 4,143 5,371 9,194 10,463
Operating profit 2,500 3,849 6,696 8,151
Interest expense, net 891 1,614 1,953 3,620
Income before income taxes
and discontinued
operations 1,609 2,235 4,743 4,531
Provision for income taxes 593 838 1,768 1,699
Income from continuing
operations 1,016 1,397 2,975 2,832
Discontinued operations
(net of taxes):
Loss from discontinued
operations 0 (906) 0 (1,432)
Net income $1,016 $491 $2,975 $1,400
Weighted Average Number of
common shares outstanding:
Basic 9,719,105 9,660,750 9,699,653 9,631,586
Diluted 10,067,353 9,997,566 10,112,397 9,926,026
Basic earnings per common
share:
Income from continuing
operations $0.10 $0.14 $0.31 $0.30
Discontinued operations
(net of taxes):
Loss from discontinued
operations 0 (0.09) 0 (0.15)
Net income $0.10 $0.05 $0.31 $0.15
Diluted earnings per common
share:
Income from continuing
operations $0.10 $0.14 $0.29 $0.28
Discontinued operations
(net of taxes):
Loss from discontinued
operations 0 (0.09) 0 (0.14)
Net income $0.10 $0.05 $0.29 $0.14
Supplemental information
(continuing operations):
Depreciation $1,783 $2,374 $3,785 $4,722
Capital expenditures $608 $728 $1,411 $922
Cash taxes paid $3 $0 $224 $0
JPS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
May 2, November 1,
2009 2008
ASSETS (Unaudited)
Current Assets:
Cash $219 $1,272
Accounts receivable 21,103 31,501
Inventories 29,744 39,119
Prepaid expenses and other 6,817 7,635
Total current assets 57,883 79,527
Property, plant and equipment, net 29,110 30,690
Deferred income taxes 48,967 50,616
Goodwill 7,953 7,953
Intangible assets, net 6,498 7,498
Other assets 1,313 1,506
Total assets $151,724 $177,790
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $8,186 $18,353
Accrued pension costs 575 809
Accrued salaries, benefits and
withholdings 1,898 4,994
Other accrued expenses 1,546 2,498
Current portion of long-term debt 1,704 5,373
Total current liabilities 13,909 32,027
Long-term debt 45,980 56,390
Accrued pension cost 2,798 2,798
Other long-term liabilities 2,317 2,329
Total liabilities 65,004 93,544
Shareholders' equity:
Common stock par value 100 100
Additional paid-in capital 123,525 124,257
Treasury stock (at cost) (1,025) (1,256)
Net actuarial pension loss (55,452) (55,452)
Accumulated equity 19,572 16,597
Total shareholders' equity 86,720 84,246
Total liabilities and shareholders'
equity $151,724 $177,790
SOURCE JPS Industries, Inc.
----------------------------------------------
Charles R. Tutterow
Executive Vice President and Chief Financial Officer of JPS Industries
Inc.
+1-864-239-3915
