JPS Industries, Inc. Announces Second Quarter 2014 Results

GREENVILLE, S.C., May 21, 2014 /PRNewswire/ -- JPS Industries, Inc. (OTC-PINK: JPST), a leading manufacturer of composite materials today announced financial and operating results for our second fiscal quarter ended May 3, 2014.

Second Quarter FY 2014 Highlights:

• Net Sales of $43.9 million, a 11% increase over year ago second quarter 2013 due to stronger performance in the aerospace, ballistic and electronics market segments
• Gross profit of $7.6 million, a 9% increase over year ago second quarter, yet with lower gross margin of 17.3% compared to 17.7% due to a greater mix of lower margin product sales
• Reduced recurring SG&A of $3.4 million, down 10% from year ago second quarter due to increased efforts to reduce and control costs
• Adjusted EBITDA of $4.7 million, a 39% increase over year ago second quarter
• GAAP net income of $9.8 million, inclusive of a $7.5 million gain on sale and $437 thousand income during the quarter from the Urethane operating division sold on April 30, 2014, both net of tax
• Diluted earnings per share of $0.95 vs. $0.16 in the year ago quarter, inclusive of $0.72 from the one-time gain on the sale, or $0.23 excluding the gain
• Urethane operating division was sold on April 30
• Repaid in full and terminated our outstanding term note facility of $5.9 million
• Repaid in full the outstanding balance on our line of credit facility, which remains in place with $25.7 million available based upon our quarter end collateral base

Mikel H. Williams, JPS's CEO stated: "I am pleased to report another solid quarter of improved business performance as well as the sale of our Urethane division.  This sale allows us to focus on our core composite materials business with a stronger financial profile."  Williams continued, "The comprehensive process of considering the sale of our Urethane division occurred over the past couple of years, and culminated in the sale to Argotec, LLC, a privately held strategic purchaser.  With this transaction now behind us, our focus is to strengthen and grow our composite materials business.  While this business can be cyclical, and one should not annualize any one period, our long term goal will continue to be on driving top line growth and operational excellence, supporting both with prudent investment as necessary, to improve cash flows and value for our shareholders."

The Statement of Operations for both the current year and the prior year periods have been prepared reflecting the Stevens Urethane division as a discontinued operation, as the sale was closed on April 30, 2014.  The prior year balance sheet has not been restated since the division was not an asset held for sale at that time.  Certain reclassifications as well as re-allocations among quarterly periods have been made to the prior year's second quarter's financial statements to conform to the current year's presentation. These changes will have no effect on the previously reported results of operations for the full fiscal year 2013.

About JPS Industries, Inc. 
JPS Industries, Inc. is a major U.S. manufacturer of sheet and mechanically formed glass and aramid 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: advanced composite materials; civilian and military aerospace components; printed electronic circuit boards; filtration and insulation products; specialty commercial construction substrates; automotive and industrial components; soft body armor for civilian and military applications.   Headquartered in Greenville, South Carolina, the Company operates three manufacturing locations in Anderson and Slater, South Carolina and Statesville, North Carolina.

Non-GAAP Financial Measures 
This release includes 'adjusted EBITDA', a non-GAAP financial measure as defined in Regulation G of the Securities Exchange Act of 1934. Management believes that the disclosure of non-GAAP financial measures, when presented in conjunction with the corresponding GAAP measures, provide useful information to the Company, investors and other users of the financial statements and other financial information in identifying and understanding operating performance for a given level of net sales and business trends.  Management believes that adjusted EBITDA is an important factor of the Company's business because it reflects financial performance that is unencumbered by debt service and other non-cash, non-recurring or unusual items. This financial measure is commonly used in the Company's industry. However, adjusted EBITDA should not be considered as an alternative to cash flow from operating activities, as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with generally accepted accounting principles.  The Company's definition of adjusted EBITDA may differ from definitions of such financial measure used by other companies. The Company has provided a reconciliation of adjusted EBITDA to GAAP financial information in the attached Schedule of Non-GAAP reconciliations.

"SafeHarbor" Statement under the Private Securities Litigation Reform Act of 1995 
Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding the Company's assumptions, projections, expectations, targets, intentions or beliefs about future events. Words or phrases such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "targets," "will likely result," "will continue," "may," "could" or similar expressions identify forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. The Company cautions that while it makes such statements in good faith and it believes such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records, and other data available from third parties, it cannot assure you that the Company's projections will be achieved. In addition to other factors and matters discussed from time to time in the Company's filings with the U.S. Securities and Exchange Commission, or the SEC, some important factors that could cause actual results or outcomes for JPS or its subsidiaries to differ materially from those discussed in forward-looking statements include changes in general economic conditions in the markets in which it may compete and fluctuations in demand in the electronics industry; the Company's ability to sustain historical margins; increased competition; increased costs; loss or retirement of key members of management; currency exchange rate fluctuations; integration of acquired operations; international operations; compliance with environmental regulations; potential impacts of natural disasters on the electronics industry and the Company's supply chain; increases in the Company's cost of borrowings or unavailability of additional debt or equity capital on terms considered reasonable by management; and adverse state, federal or foreign legislation or regulation or adverse determinations by regulators. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors.

For Further Information:  
Mikel H. Williams  
President and Chief Executive Officer 
(864) 239-3900

SOURCE JPS Industries, Inc.