EXHIBIT 99.1
CONTACT: Charles R. Tutterow
Executive Vice President
and Chief Financial Officer
864/239-3915
JPS INDUSTRIES, INC. REPORTS FIRST QUARTER RESULTS
GREENVILLE, S.C. March 11, 2004—JPS Industries, Inc. (NASDAQ/SC: JPST) today announced results for the first quarter ended January 31, 2004.
For the first quarter of fiscal 2004, JPS reported a net loss of $0.2 million, or $(0.02) per diluted share, on sales of $31.2 million compared with a net loss of $0.6 million, or $(0.06) per diluted share, on sales of $28.8 million in the first quarter of fiscal 2003. For the quarter, sales increased 8.3%, while operating income was $22,000 compared with a net loss of $0.8 million in the first quarter of fiscal 2003.
Michael L. Fulbright, JPS’s chairman, president and chief executive officer, stated, “We are pleased that the improvement in our operating results continue a trend that began in middle of 2003. Revenue line growth coupled with strong cost controls allowed each of our businesses, Stevens® Roofing, Stevens® Urethane and JPS Glass to improve their operating results over the prior year. These results can be attributed to market share growth countering continued lackluster demand in the commercial construction and electronics markets and an overall improvement in our manufacturing operations that offset ongoing price pressures. Overall, this represents a solid performance in what can best be described as very challenging market and economic conditions.”
Commenting further, Charles R. Tutterow, JPS’s executive vice president and chief financial officer stated, “As we previously announced, the Company’s stock began trading on The Nasdaq SmallCap Market effective March 9, 2004, and we are pleased to be able to provide this market continuity for our shareholders.”
In conclusion, Mr. Fulbright stated, “We expect the trend of gradual improvement to continue; however, uncertainty in some markets and forward visibility in all markets remain at such levels as to make quarterly forecast an impractical exercise. That said, we are confident that our solid market positions, our competitive cost structures and our solid balance sheet give us much flexibility and leverage to take advantage of any overall market strengthening and other growth opportunities as they appear in each of our businesses.”
JPS Industries, Inc. is a major U.S. manufacturer of extruded urethanes, polypropylenes and mechanically formed glass substrates for specialty industrial applications. JPS specialty industrial products are used in a wide range of applications, including: printed electronic circuit boards; advanced composite materials; aerospace components; filtration and insulation products; surf boards; construction substrates; high performance glass laminates for security and transportation applications; plasma display screens; athletic shoes; commercial and institutional roofing; reservoir covers; and medical, automotive and industrial components. Headquartered in Greenville, South Carolina, the Company operates manufacturing locations in Slater, South Carolina; Westfield, 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 covenant obligations in its Credit Agreement and negotiate a new credit facility upon maturity of its existing credit facility), 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 described from time to time in the Company’s filings with the Securities and Exchange Commission. 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
| |
| | | January 31,
2004
| | | February 1,
2003
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NET SALES | | $ | 31,208 | | | $ | 28,779 | |
COSTOF SALES | | | 26,438 | | | | 25,207 | |
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Gross profit | | | 4,770 | | | | 3,572 | |
SELLING, GENERAL &ADMINISTRATIVEEXPENSES | | | 4,748 | | | | 4,395 | |
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Operating income (loss) | | | 22 | | | | (823 | ) |
Interest expense | | | 189 | | | | 155 | |
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Income (loss) before income taxes | | | (167 | ) | | | (978 | ) |
Provision (benefit) for income taxes | | | 0 | | | | (381 | ) |
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Net income (loss) | | $ | (167 | ) | | $ | (597 | ) |
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | | | | | | | | |
Basic | | | 9,319,259 | | | | 9,293,009 | |
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Diluted | | | 9,319,259 | | | | 9,293,009 | |
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Basic loss per common share | | $ | (0.02 | ) | | $ | (0.06 | ) |
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Diluted loss per common share | | $ | (0.02 | ) | | $ | (0.06 | ) |
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Depreciation | | $ | 1,321 | | | $ | 1,383 | |
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Capital expenditures | | $ | 59 | | | $ | 55 | |
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Cash taxes paid | | $ | 0 | | | $ | 27 | |
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JPS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
| | | | | | | | |
| | | January 31,
2004
| | | November 1,
2003
| |
| | | (Unaudited) | | | | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash | | $ | 367 | | | $ | 661 | |
Receivables | | | 17,946 | | | | 20,070 | |
Inventories | | | 15,764 | | | | 13,613 | |
Prepaid expenses and other | | | 4,985 | | | | 3,468 | |
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Total current assets | | | 39,062 | | | | 37,812 | |
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Property, plant and equipment, net | | | 32,523 | | | | 33,788 | |
Other assets | | | 11,783 | | | | 11,771 | |
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Total assets | | $ | 83,368 | | | $ | 83,371 | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 8,579 | | | $ | 10,062 | |
Accrued salaries, benefits and withholdings | | | 1,328 | | | | 1,017 | |
Accrued pension costs | | | 5,963 | | | | 7,446 | |
Other accrued expenses | | | 6,719 | | | | 3,997 | |
Current portion of long-term debt | | | 13,886 | | | | 722 | |
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Total current liabilities | | | 36,475 | | | | 23,244 | |
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Long-term debt | | | 955 | | | | 14,046 | |
Deferred revenue and postemployment liabilities | | | 41,069 | | | | 41,045 | |
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Total liabilities | | | 78,499 | | | | 78,335 | |
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Shareholders’ equity: | | | | | | | | |
Common stock par value | | | 100 | | | | 100 | |
Additional paid-in capital | | | 123,332 | | | | 123,332 | |
Treasury stock (at cost) | | | (1,895 | ) | | | (1,895 | ) |
Additional minimum pension liability | | | (49,835 | ) | | | (49,835 | ) |
Accumulated deficit | | | (66,833 | ) | | | (66,666 | ) |
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Total shareholders’ equity | | | 4,869 | | | | 5,036 | |
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Total liabilities and shareholders’ equity | | $ | 83,368 | | | $ | 83,371 | |
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