JPS Industries, Inc. Announces Second Quarter 2015 Results

ANDERSON, S.C., June 2, 2015 /PRNewswire/ -- JPS Industries, Inc. JPST, a leading manufacturer of composite materials, today announced financial and operating results for its second fiscal quarter ended May 2, 2015.

JPS and Handy & Harman Ltd. ("HNH") jointly announced on June 1 that they entered into a merger agreement pursuant to which HNH will acquire JPS for $11.00 per share in cash.  The agreement is subject to customary closing conditions.

Second Quarter FY 2015 Highlights:

• Net Sales of $44.9 million vs. $43.9 million in the year ago second quarter
• Gross profit of $7.9 million, with a 17.6% gross margin, both up from the year ago second quarter gross profit of $7.6 million and gross margin of 17.3%
• SG&A of $4.0 million, including $1.2 million of non-recurring legal and other costs related to the proxy contest and tender offer by affiliates of HNH. Excluding these costs, recurring SG&A was $2.8 million vs. $2.4 million in the year ago second quarter
• Adjusted EBITDA of $4.7 million, in line with the prior year's quarter
• GAAP net income of $1.3 million, including $1.2 million of non-recurring costs associated with the proxy contest and tender offer, vs. $9.8 million in the year ago second quarter, which included $7.9 million of income on the disposition of our Urethane division
• GAAP earnings per share of $0.12 vs. $0.95 in the year ago second quarter
• Closed the Greenville, SC office and moved our corporate function into the Anderson and Slater, SC operating facilities

The Statement of Operations for the prior year periods have been prepared reflecting the Urethane division as a discontinued operation, as the sale was closed on April 30, 2014. 

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.  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) 260-3201

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SOURCE JPS Industries, Inc.