NEWS BULLETIN
JPS Industries, Inc.
55 Beattie Place
Suite 1510
Greenville, SC 29601
For Further Information:
Mikel H. Williams
President and Chief Executive Officer
(864) 239-3900
JPS Industries, Inc. Announces Third Quarter 2014 Results
GREENVILLE, S.C., August 19, 2014 – 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.
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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
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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.
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JPS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
13 Weeks Ended
August 2,
July 27,
2014
2013
Net sales
Cost of sales
$
Gross profit
Selling, general & administrative and other expenses
Litigation charge (recovery)
Severance and restructuring
Distribution expense
43,531
36,373
$
49,648
41,859
$
122,420
102,085
$
113,512
93,820
7,158 16.4%
7,789 15.7%
20,335 16.6%
19,692
3,793
3,148
(502)
4,021
1,038
10,664
10,678
(502)
4,021
2,801
890
Operating profit
39 Weeks Ended
August 2,
July 27,
2014
2013
2,475
Interest expense, net
84
5.7%
93
2,781
6,890
0.2%
325
2,694
5.6%
535
945
Income before income taxes
2,382
(241)
6,355
1,749
Income taxes
Income from continuing operations
877
1,505
(113)
(128)
2,339
4,016
611
1,138
824
7,471
999
1,612
Discontinued operations:
Gain on sale of discontinued operations, net of taxes
Income from discontinued operations, net of taxes
Net income
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING:
Basic
Diluted
$
1,505
3.5%
$
696
1.4%
$
12,486 10.2% $
2,750
10,328,960
10,281,460
10,305,210
10,258,877
10,488,675
10,339,896
10,418,828
10,342,051
Basic earnings per common share
$
0.15
$
0.07
$
1.21
$
0.27
Diluted earnings per common share
$
0.14
$
0.07
$
1.20
$
0.27
$
1,505
93
877
393
350
$
$
12,486
535
2,339
1,182
385
$
$
2,750
945
611
839
98
4,021
(502)
(1,612)
2,760
9,910
$
$
$
1,502
105
1,507
Adjusted EBITDA:
Net income
Plus interest expense
Plus income taxes
Plus depreciation and amortization
Plus stock comp expense
Severance and restructuring
Less litigation recovery in SGA
Gain on sale of discontinued operations, net of taxes
Income from discontinued operations, net of taxes
Plus pension and post retirement expense
Adjusted EBITDA
Capital expenditures
Cash taxes paid
Cash pension contributions
$
955
4,173
$
$
$
84
268
4,711
4
9.6%
$
$
$
$
696
325
(113)
279
6
4,021
(502)
(824)
920
4,808 9.7%
294
55
821
$
(7,471)
(999)
2,863
11,320
$
$
$
658
506
7,057
9.2%
17.3%
2.4%
2.4%
8.7%
JPS INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
August 2,
2014
ASSETS
Current Assets:
Cash
Restricted cash
Cash held in escrow
Accounts receivable, net of reserves
Inventories
Prepaid expenses and other
Total current assets
$
Property, plant and equipment, net
Deferred income taxes
Goodwill
Other assets
4,827
1,500
28,043
24,348
7,640
66,358
November 2,
2013
$
31,295
24,341
7,525
68,502
12,856
47,162
10,100
319
Total assets
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable
Accrued pension costs
Accrued expenses, salaries, benefits and withholding
Current portion of long-term debt
Total current liabilities
136,795
$
151,027
$
13,818
6,005
3,352
23,175
$
10,013
8,611
7,487
4,980
31,091
Total liabilities
Total shareholders' equity
$
5
16,935
54,954
10,100
536
$
Long-term debt
Accrued pension costs
Other long-term liabilities
Total liabilities and shareholders' equity
1,656
3,685
26,060
534
18,147
27,648
534
49,769
77,420
87,026
73,607
136,795
$
151,027