Business News

JPS Industries, Inc. First Quarter Results Show Seven Fold Operating Income Growth on Doubling of Revenues

Friday 14. March 2008 - JPS Industries, Inc. (Pink Sheets: JPST) today announced results for the first quarter ended January 26, 2008.

For the first quarter of fiscal 2008, JPS reported a net income of $0.9 million, or $0.09 per diluted share, on sales of $74.8 million compared with a net income of $33,000, or $0.00 per diluted share, on sales of $37.7 million in the first quarter of fiscal 2007. EBITDA, a non GAAP measure defined as operating income plus depreciation and amortization, increased almost four fold to $6.0 million from $1.6 million as compared to the prior year’s first quarter.

Michael L. Fulbright, JPS’s chairman, president and chief executive officer, stated, “We are very satisfied with our first quarter performance. First quarter is traditionally our smallest in terms of revenue and earnings because of the seasonal nature of a number of our markets and, this year in particular, we felt the effects of winter weather and economic headwinds. Even with these significant mitigating factors, we delivered a solid performance, meeting our business plan metrics. The integration of the Reinforcements businesses that we purchased last August continues to progress smoothly, and the melding into our JPS Composite Materials business unit is clearly meeting our plans and expectations. During the quarter, our Stevens(R) Urethane unit delivered its first commercial shipments of ethylene vinyl acetate based Encapsolar(R) products, our new proprietary encapsulation product for the photovoltaic market. This reinforces our commitment not only to the growing solar energy market, but to our stated objective of developing, manufacturing, and commercializing new products for new and existing market applications.”

Commenting further, Mr. Fulbright stated, “While we expect factors such as the current credit market turmoil, deteriorating housing market, and general economic softness to persist through much of the year, we believe we have growth opportunities in the markets we serve and have demonstrated that we are well positioned to benefit from the opportunities that may present themselves in this economic environment. We remain very confident in realizing our potential over the coming quarters as well as the next several years.”