JPS Industries, Inc. Announces First Quarter 2015 Results

GREENVILLE, S.C., March 5, 2015 /PRNewswire/ -- JPS Industries, Inc. JPST, a leading manufacturer of composite materials, today announced financial and operating results for our first fiscal quarter ended January 31, 2015.

First Quarter FY 2015 Highlights:

• Net Sales of $33.8 million vs. $35.0 million in the year ago first quarter, as softer ballistics markets offset continued stability and growth in our other markets
• Gross profit of $5.7 million, with a 16.7% gross margin, up slightly from the year ago quarter as the mix of business was favorable towards our higher margin products
• SG&A of $3.0 million, including $0.7 million of non-recurring additional legal and other costs related to the proxy contest and tender offer from Steel Partners. Excluding these costs, recurring SG&A was $2.3 million, down 10% from the year ago first quarter
• Adjusted EBITDA of $3.1 million, a 25% increase over year ago first quarter adjusted EBITDA of $2.5 million
• GAAP net income of $0.6 million, after $0.7 million of non-recurring costs associated with the proxy contest and tender offer, vs. $1.1 million in the year ago first quarter
• GAAP earnings per share of $0.06 vs. $0.11 in the year ago first quarter

Mikel H. Williams, JPS's CEO, stated: "The first quarter reflects a solid quarter of operational performance as margins and adjusted EBITDA improved from the prior year's quarter, despite the 18% softer ballistics/aramid market not fully offset by gains in our other core end markets served.  We have anticipated this softness, and for the quarter our ballistics/aramid sales performance was ahead of plan.  We expect this market to strengthen as we move through the year. Our gross margin improvement reflects a favorable product sales mix coupled with a focus on operational excellence and cost reduction.  Further, we continue to reduce our controllable operating expenses, with yet another quarter of year over year reductions."

Williams continued, "We are pleased that we were able to keep the recent proxy contest from significantly impacting operating performance.  We did incur significant legal, proxy and other non-recurring expenses related to the proxy contest and tender offer launched by Steel Partners Holdings and its affiliate Handy & Harman, Ltd. (SP).  As recently announced, our non-SP shareholders overwhelmingly elected the Company's slate of nominees to represent their interests and not the slate put forward by SP.  I am pleased to see this vote of confidence in our board and management and thank our shareholders for their support.  As we have stated many times, we continue to be open to a fair transaction for the benefit of all shareholders and with the Company's board in place, we can work towards this end."

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. 

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 ­­­­­­products.  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.  This release also includes net income adjusted for non-recurring items, a non-GAAP financial measure as defined in Regulation G of the Securities 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 and net income adjusted for non-recurring items are important factors of the Company's business because they reflect financial performance that is unencumbered by debt service and other non-cash, non-recurring or unusual items.  However, they 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 and net income adjusted for non-recurring items to GAAP financial information in the attached Schedule of Non-GAAP reconciliations.

Caution Regarding Forward-Looking Statements
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. 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; the Company's ability to sustain historical margins; increased competition and the risk of lost customer business; increased costs; loss or retirement of key members of management; currency exchange rate fluctuations; integration of acquired operations; international operations; compliance with environmental regulations and other laws; product compliance issues; potential impacts of natural disasters on the 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

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SOURCE JPS Industries, Inc.