JPS Industries, Inc. Reports Quarter and Full Year Results GREENVILLE, S.C., Dec. 21 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (Pink Sheets: JPST) today announced results for the fourth quarter and year ended October 30, 2004. For the fourth quarter of fiscal 2004, JPS reported a net income of $13.0 million, or $1.36 per diluted share, on sales of $43.6 million compared with a net income of $1.5 million, or $0.16 per diluted share, on sales of $35.2 million in the fourth quarter of fiscal 2003. Net income for the current quarter included a tax benefit of $11.2 million related to the reduction of the valuation allowance established against the Company's deferred tax assets. For fiscal 2004, the Company reported a net income of $15.0 million, or $1.57 per diluted share, on sales of $155.0 million compared with a net loss of $0.1 million, or $(0.01) per diluted share, on sales of $128.7 million for the same period in fiscal 2003. Michael L. Fulbright, JPS's chairman, president and chief executive officer, stated, "We are very pleased with our performance in the fourth quarter, as well as our overall results for 2004. We enjoyed solid revenue growth in each of our businesses: Stevens(R) Roofing and Geomembrane, Stevens(R) Urethane, and JPS Glass. As has been the case throughout the year, the increased volume led to improved manufacturing performance, which in turn allowed significant bottom line growth. Importantly, our continuous focus on cost reduction and containment allowed us to manage raw material and energy cost increases through the combination of selected higher selling prices and cost savings in other areas of our operations. Additionally, we were able to increase our revenues for the full year by $26.3 million or roughly 20%, while keeping inventory growth to about $1.5 million. Finally, it is most gratifying to have realized the benefits derived from the actions we took throughout the very difficult environment of 2002 and 2003, and clearly our performance is a tribute to the dedication, discipline and effort that our entire organization brings to their daily responsibilities." Charles R. Tutterow, JPS's executive vice president and chief financial officer, stated, "The fourth quarter included pension income of $643,000 compared with income of $986,000 in the prior year. Net debt increased from $14.1 million on October 31, 2003 to $16.6 million at year end primarily as a result of a $6.5 million increase in receivables attributed to the higher sales volumes and $7.4 million of pension payments during the year. As of year end, we are in compliance with all of the debt covenants of our $25 million senior credit facility that expires on April 30, 2007 and have excess availability of $8.3 million with borrowings at a rate of 4.1%. During the year, we exercised early purchase options on $1.4 million of equipment under capital lease, with the final payment of $390,000 being made tomorrow. Currently, we are finalizing certain balance sheet disclosures related to the current portion of deferred taxes, the amounts due for pension funding for 2005, and the resolution of the classification of our revolver under EITF 95- 22: Balance Sheet Classification of Borrowings Outstanding under Revolving Credit Agreements that include both a Subjective Acceleration Clause and a Lock-Box Arrangement. We will provide final disclosure in connection with the issuance of the audited financial statements in January; however, none of these items are expected to affect the income statement." In conclusion, Mr. Fulbright stated, "Though we are pleased with what we have accomplished, we remain focused and conservative in the management of our Company and our approach to the markets we serve. With the degree of uncertainty in the economic recovery and demand levels for our products, as well as continuing upward pressures on the cost of various raw materials, energy, transportation, and health care, forecasting 2005 is not practical at this time. That said, we like our market positions, our cost structure, our debt level, and are confident that we can navigate whatever business conditions and/or economic climate in which we find ourselves. We look to the future with the assurance that any market strengthening or other growth opportunities that might present themselves will allow us to further leverage our potential." 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. 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 Twelve Months Ended Oct. 30, Nov. 1, Oct. 30, Nov. 1, 2004 2003 2004 2003 NET SALES $43,589 $35,245 $155,002 $128,729 COST OF SALES 37,001 29,834 129,703 110,587 Gross profit 6,588 5,411 25,299 18,142 SELLING, GENERAL & ADMINISTRATIVE EXPENSES 4,587 3,749 19,471 17,534 Operating income 2,001 1,662 5,828 608 Interest expense 187 205 762 715 Income (loss) before income taxes 1,814 1,457 5,066 (107) Provision (benefit) for income taxes (11,166) 0 (9,885) 0 Net income (loss) $12,980 $1,457 $ 14,951 $(107) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 9,354,259 9,394,259 9,340,259 9,333,759 Diluted 9,570,902 9,401,421 9,545,214 9,333,759 Basic earnings (loss) per common share $1.39 $0.16 $1.60 $(0.01) Diluted earnings (loss) per common share $1.36 $0.16 $1.57 $(0.01) Depreciation $1,299 $1,325 $5,287 $5,425 Capital expenditures $376 $4 $871 $247 Cash taxes paid $0 $(12) $3 $24 DATASOURCE: JPS Industries, Inc. CONTACT: Charles R. Tutterow, Executive Vice President and Chief Financial Officer of JPS Industries, Inc., +1-864-239-3915

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