20 January 2003
20 January 2003
JPS Industries has announced results for the fourth quarter and year ended November 2, 2002.
For the fourth quarter of fiscal 2002, JPS reported a net income of $38,000 on sales of $34.6 million compared with a net income of $569,000 on sales of $34.5 million in the fourth quarter of fiscal 2001. EBITDA, a measure of operating cash flow, was $1.8 million, or 5.2% of sales, compared to $2.5 million, or 7.2% of sales, in the prior-year period.
For fiscal 2002, the Company reported a net loss of $0.4 million on sales of $126.4 million compared with a net income of $4.4 million on sales of $147.6 million for the same period in fiscal 2001. EBITDA was $6.0 million, or 4.7% of sales, compared to $15.4 million, or 10.4% of sales, in the prior-year period.
Michael L. Fulbright, JPS's chairman, president, and chief executive officer, stated, ""We are pleased with our performance over the course of 2002, a year that is easily characterized as the most challenging in a decade. Our Stevens(R) Urethane and JPS Glass industrial product lines enjoyed solid performance in a very difficult economy and provided a buffer to the weak performances we experienced in two of our other large markets, commercial construction and electronics, both of which clearly remained at recessionary levels throughout the year. We also take much satisfaction in our relentless focus on cost reduction and working capital management, as those efforts proved successful in reducing our long-term debt some six million dollars. Ending the year with long term debt now under thirteen million dollars, a thirty-four percent reduction, is quite an achievement and one that is a credit to our entire organization.""
Commenting further, Charles R. Tutterow, JPS's executive vice president and chief financial officer, stated, ""As we discussed in our 3rd Quarter 2002 release, the decreasing equity values and falling discount rates affecting the Company's pension plan assets, required us to eliminate the prepaid pension asset and record an additional minimum pension liability as of November 2, 2002. This resulted in a reduction in stockholder's equity of $41.0 million. Any violation of the minimum net worth covenant of the Company's credit agreement has been waived by the bank through November 2, 2003. The Company expects to make contributions to the Plan in the amount of $4.0 million to $7.0 million during Fiscal 2003. The additional minimum liability will be reversed at such time as the Plan assets again exceed the Plan obligations.""
In conclusion, Mr. Fulbright stated, ""We see no signs that would indicate any improvement in our markets over the coming year, in fact the deterioration in commercial construction over the last half of 2002 looks to be a trend that will be with us at least through mid year. That said, we are gratified to have positioned our company to withstand the economic, competitive and financial challenges that exist for manufacturing companies like ours in today's environment. Strategically, we believe that the focus we bring to our customers' needs and requirements and our low cost production facilities positions us well, and should allow us to benefit over the next several years when our markets return to a growth mode and/or there is consolidation within these markets.""
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