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JPS Industries, Inc. Reports Quarter and Full Year Results

Submitted by: John Warner on Feb 11, 2008 at 1:45 pm Tagged with: Advanced Materials, earnings Source: JPS Industries

GREENVILLE, S.C., Feb. 6 /PRNewswire-FirstCall/ -- JPS Industries, Inc.
(Pink Sheets: JPST) today announced results for the fourth quarter and year
ended October 27, 2007.

For the fourth quarter of fiscal 2007, JPS reported a net income of
$16.7 million, or $1.73 per diluted share, on sales of $90.0 million
compared with a net income of $5.4 million, or $0.56 per diluted share, on
sales of $47.9 million in the fourth quarter of fiscal 2006.

For fiscal 2007, the Company reported a net income of $18.0 million, or
$1.86 per diluted share, on sales of $219.7 million compared with a net
income of $6.0 million, or $0.62 per diluted share, on sales of $171.5
million for the same period in fiscal 2006.

Michael L. Fulbright, JPS's chairman, president and chief executive
officer, stated, "We had an outstanding quarter. For the fourth quarter
revenues were up 88% or $42.1 million. While most of the increase was the
result of our August acquisition, strong performances from our JPS
Composite Materials and Stevens Urethane(R) units contributed meaningfully.
Our operating income more than doubled to $3.9 million even considering
some one time transaction related costs.

We take much satisfaction from the fact that these results were
delivered in an economic environment that was clearly more challenging than
the prior year's fourth quarter as well as the internal challenges we faced
with our acquisition integration. The transition and melding of the
acquisition into our JPS Composite Materials unit has gone smoothly and as
we had planned. It is a tribute to the attitude and work ethic of all our
Composite Material associates, old and new, that the integration has gone
so well to this point."

Charles R. Tutterow, JPS's executive vice president and chief financial
officer, stated, "Our 2007 results included twelve weeks of operations of
the acquired reinforcements business. In connection with the related
purchase price accounting, we wrote up inventory to its fair market value,
which adversely affected gross profit for the quarter by $817,000. Further,
as a result of our enhanced ability to utilize our $92 million of net
operating loss carryforwards, we released substantially all of our deferred
tax asset valuation allowance, resulting in a tax benefit of $14.1 million
for the year."

Continuing, Mr. Tutterow stated, "Pension expense declined from
$420,000 in 2006 to $384,000 in 2007 and our funding position improved
dramatically. We currently expect contributions of $5.7 million in 2008 and
less than $2 million in 2009. We ended the year with $78.3 million
outstanding under our $107 million credit facilities, thus we anticipate
our borrowing capacity and cash flow from operations will more than support
our ongoing $4-5 million in capital expenditures and additional growth
plans."

Commenting further, Mr. Fulbright stated, "Clearly, the first half of
2008 will present us with a challenging economic and business environment.
However, we're positioned well with our strengthened product offerings in
key markets, our expanded product breadth as a result of the acquisition,
our new product initiatives throughout the Company, especially the
commercial launch of our Encapsolar(R) photovoltaic films from our Stevens
Urethane unit, and our strong balance sheet. We expect this will further
improve this year as a result of the earlier described decline in pension
funding requirements and our improved operating performance. As has been
our message for several years, we will be focused on operating our
businesses so they each reach their full potential, allowing us, we
believe, to take advantage of any and all opportunities to enhance our
Company for the benefit of our employees, customers, and shareholders. We
are most optimistic when we look at the markets we serve over the next
several years."

JPS Industries, Inc. is a major U.S. manufacturer of extruded
urethanes, polypropylenes and mechanically formed glass and aramid
substrate 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: printed electronic circuit boards;
advanced composite materials; civilian and military aerospace components;
filtration and insulation products; specialty commercial construction
substrates; high performance glass laminates for security and
transportation applications; photovoltaic solar modules; paint protection
films; plasma display screens; commercial and institutional roofing;
reservoir covers; medical, automotive and industrial components; and soft
body armor for civilian and military applications. Headquartered in
Greenville, South Carolina, the Company operates five manufacturing
locations in Anderson and Slater, South Carolina; Statesville and
Westfield, North Carolina; and Easthampton, Massachusetts.