EXHIBIT 99.1
| CONTACT: | Charles R. Tutterow | |
| Executive Vice President and Chief Financial Officer | ||
| 864/239-3915 |
JPS INDUSTRIES, INC. REPORTS IMPROVED THIRD QUARTER
NET INCOME OF $0.13 PER SHARE
GREENVILLE, S.C. (August 24, 2004) – JPS Industries, Inc. (NASDAQ: JPST) today announced results for the third quarter and nine months ended July 31, 2004.
For the third quarter of fiscal 2004, JPS reported a net income of $1.3 million, or $0.13 per diluted share, on sales of $42.0 million compared with a net income of $0.6 million, or $0.06 per diluted share, on sales of $35.2 million in the third quarter of fiscal 2003. For the quarter, sales increased 19.4%.
For the first nine months of fiscal 2004, the Company reported a net income of $2.0 million, or $0.21 per diluted share, on sales of $111.4 million compared with a net loss of $1.6 million, or $(0.17) per diluted share, on sales of $93.5 million for the same period in fiscal 2003.
Michael L. Fulbright, JPS’s chairman, president and chief executive officer, stated, “We are pleased with our overall results this quarter. We enjoyed solid revenue growth at Stevens®Roofing, Stevens® Urethane, and JPS Glass, which allowed us to improve our manufacturing performance as a result of higher production levels at each of our facilities. Along with improving demand, we are experiencing increases in raw materials and energy cost, which we intend to pass along wherever they are unable to be offset internally with our ongoing cost reduction initiatives.”
Charles R. Tutterow, JPS’s executive vice president and chief financial officer, stated, “As announced on August 5th, we intend to deregister with the SEC on August 31, 2004 and anticipate that our shares will move to the over-the-counter markets shortly thereafter. We expect future quarterly updates will encompass a similar level of financial detail.”
In conclusion, Mr. Fulbright stated, “There remains enough uncertainty in today’s business environment to preclude us from issuing a detailed forecast for the fourth quarter or full year; however, our performance through nine months gives us an encouraging view for the full year. Finally, we remain confident that our solid market positions, our competitive cost structures, and our solid balance sheet will give us the ability to take advantage of any further market strengthening and other growth opportunities as they occur in each of our businesses.”
JPST Reports Third Quarter Results
Page 2
August 24, 2004
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 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 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.
JPST Reports Third Quarter Results
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August 24, 2004
JPS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||
July 31, 2004 | August 2, 2003 | July 31, 2004 | August 2, 2003 | ||||||||||
NETSALES | $ | 42,035 | $ | 35,212 | $ | 111,413 | $ | 93,484 | |||||
COSTOFSALES | 34,493 | 29,557 | 92,702 | 80,753 | |||||||||
Gross profit | 7,542 | 5,655 | 18,711 | 12,731 | |||||||||
SELLING,GENERAL &ADMINISTRATIVEEXPENSES | 5,275 | 4,522 | 14,884 | 13,785 | |||||||||
Operating income (loss) | 2,267 | 1,133 | 3,827 | (1,054 | ) | ||||||||
Interest expense | 187 | 190 | 575 | 510 | |||||||||
Income (loss) before income taxes | 2,080 | 943 | 3,252 | (1,564 | ) | ||||||||
Provision for income taxes | 806 | 381 | 1,281 | 0 | |||||||||
Net income (loss) | $ | 1,274 | $ | 562 | $ | 1,971 | $ | (1,564 | ) | ||||
WEIGHTED AVERAGE COMMONSHARESOUTSTANDING | |||||||||||||
Basic | 9,354,259 | 9,294,259 | 9,336,759 | 9,293,634 | |||||||||
Diluted | 9,561,442 | 9,294,259 | 9,536,692 | 9,293,634 | |||||||||
Basic earnings (loss) per common share | $ | 0.14 | $ | 0.06 | $ | 0.21 | $ | (0.17 | ) | ||||
Diluted earnings (loss) per common share | $ | 0.13 | $ | 0.06 | $ | 0.21 | $ | (0.17 | ) | ||||
Depreciation | $ | 1,312 | $ | 1,338 | $ | 3,988 | $ | 4,100 | |||||
Capital expenditures | $ | 282 | $ | 78 | $ | 495 | $ | 243 | |||||
Cash taxes paid | $ | 3 | $ | 0 | $ | 3 | $ | 36 | |||||
JPST Reports Third Quarter Results
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August 24, 2004
JPS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
July 31, 2004 | November 1, 2003 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 746 | $ | 661 | ||||
Receivables | 23,652 | 20,070 | ||||||
Inventory | 15,553 | 13,613 | ||||||
Prepaid expenses and other | 3,978 | 3,468 | ||||||
Total current assets | 43,929 | 37,812 | ||||||
Property, plant and equipment, net | 30,399 | 33,788 | ||||||
Other assets | 10,531 | 11,771 | ||||||
Total assets | $ | 84,859 | $ | 83,371 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 11,056 | $ | 10,062 | ||||
Accrued salaries, benefits and withholdings | 2,737 | 1,017 | ||||||
Accrued pension costs | 1,700 | 7,446 | ||||||
Other accrued expenses | 3,954 | 3,997 | ||||||
Current portion of long-term debt | 1,153 | 722 | ||||||
Total current liabilities | 20,600 | 23,244 | ||||||
Long-term debt | 16,049 | 14,046 | ||||||
Deferred revenue and postemployment liabilities | 41,135 | 41,045 | ||||||
Total liabilities | 77,784 | 78,335 | ||||||
Shareholders’ equity: | ||||||||
Common stock: | ||||||||
Par value | 100 | 100 | ||||||
Additional paid-in capital | 123,254 | 123,332 | ||||||
Treasury stock (at cost) | (1,749 | ) | (1,895 | ) | ||||
Additional minimum pension liability | (49,835 | ) | (49,835 | ) | ||||
Accumulated deficit | (64,695 | ) | (66,666 | ) | ||||
Total shareholders’ equity | 7,075 | 5,036 | ||||||
Total liabilities and shareholders’ equity | $ | 84,859 | $ | 83,371 | ||||
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