JPS Industries, Inc. Announces Third Quarter 2014 Results

GREENVILLE, S.C., Aug. 19, 2014 /PRNewswire/ -- JPS Industries, Inc. (JPST.PK), a leading manufacturer of composite materials, today announced financial and operating results for our third fiscal quarter ended August 2, 2014.

Highlights:

• Third quarter net sales of $43.5 million, a 12% decrease vs. the year ago quarter 2013 net sales of $49.6 million as the result of $7.6 million lower ballistics market net sales, as the prior year quarter's results were particularly strong
• Year to date net sales of $122.4 million, an 8% increase over the prior year
• Third quarter gross profit of $7.2 million, a 16.4% gross margin vs. a 15.7% gross margin in the year ago third quarter, as lower margin ballistics business comprised a smaller portion of our overall business mix
• Third quarter SG&A of $3.8 million, increased over the prior year quarter of $3.2 million due to higher non-cash stock related compensation, book pension expense and employee incentive accruals
• Third quarter adjusted EBITDA of $4.2 million
• Third quarter GAAP net income of $1.5 million, or $0.14 per share, fully diluted
• Cash of $4.8 million and escrow cash of $1.5 million with no debt outstanding
• Contributed $7.1 million in cash to the pension plan in the year to date period

Mikel H. Williams, JPS's CEO stated: "I am pleased to report another solid quarter of operating performance.  Last year the ballistics business was back half year loaded, and this year this business is more evenly distributed through the year, as our year to date net sales to this market are up 16% over the prior year's nine month period.  Contributing to the quarter were stronger sales in the electronics and general industrial markets. 

"We also continue our focus on cost management and operational efficiency.  We have strengthened our team with a focus to drive lean and '5S' manufacturing principals.  Further, we are in a solid financial position, with sufficient cash to execute our business plan and no outstanding debt.  Our banking facility remains in place with approximately $25 million available," Williams concluded.

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 for comparison purposes 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 third 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.