JPS TEXTILE GROUP REPORTS FISCAL 1997 RESULTS; Produces Pro Forma Net Income of $11.6 Million.GREENVILLE Greenville. 1 City (1990 pop. 45,226), seat of Washington co., W Miss., on Lake Ferguson, a deepwater harbor adjoining the Mississippi River; inc. 1886. , S.C.--(BUSINESS WIRE)--Dec. 18, 1997--JPS Textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. Group, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : JPST JPST Jewish Publication Society Torah Series ) today announced pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results for the fourth quarter and fiscal year ended November November: see month. 1, 1997. JPS JPS Jewish Publication Society JPS John Peter Smith (Hospital; Texas) JPS Justice & Public Safety JPS Jean Piaget Society JPS Juvenile Polyposis Syndrome JPS Joint Planning Staff completed a prepackaged pre·pack·age tr.v. pre·pack·aged, pre·pack·ag·ing, pre·pack·ag·es To wrap or package (a product) before marketing. Adj. 1. plan of reorganization on October October: see month. 9, 1997. The consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the plan resulted in, among other things, (i) the discharge of approximately $271.1 million in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , including accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , (ii) the issuance of 10 million shares of JPS's new common stock, (iii) the issuance of $34 million in aggregate principal amount (subject to adjustment on the maturity date) of contingent payment notes by JPS Capital (a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. ), (iv) the cancellation of the old senior preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , the old junior preferred stock and the old common stock, and (v) the issuance of warrants to purchase up to 5% of the new common stock. The financial statements for the period subsequent to the consummation of the reorganization (three weeks) were prepared under principles of fresh-start reporting for companies emerging from a plan of reorganization and are not comparable to prior periods. The Company believes that the most meaningful information is the pro forma financial statements Pro forma financial statements A firm's financial statements as adjusted to reflect a projected or planned transaction. "What-if" analysis. which are included herein. For the 13-week quarter ended November 1, 1997, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased to $117.2 million from $115.4 million for the 14-week fourth quarter ended November 2, 1996. Pro forma gross profit improved to 16.1% of sales in the 1997 fourth quarter from 13.0% in the prior year period. Pro forma net income was $4.3 million, or $0.43 per share, for the quarter compared with pro forma net income of $1.2 million, or $0.12 per share, for the same quarter last year. During the quarter, the Company sold its Dunean plant, recognizing a gain on the sale of approximately $574,000. This amount has been excluded from EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
For the fiscal year ended November 1, 1997 (52 weeks), net sales were $418.4 million compared with $448.8 million for fiscal 1996 (53 weeks). Pro forma gross profit increased to 16.4% of sales in fiscal 1997 from 14.2% of sales in fiscal 1996. Pro forma net income for fiscal 1997 was $11.6 million, or $1.16 per share, compared with a pro forma net loss of $13.1 million, of $1.31 per share, for fiscal 1996. Pro forma EBITDA, which excludes certain non-cash items, was $38.7 million for fiscal 1997 compared with $32.1 million for fiscal 1996. "We are pleased to report improved earnings for both the fourth quarter and fiscal 1997," said Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. E. Hunter, chairman, president and chief executive officer of JPS. "The increased sales and improved operating results in the fourth quarter resulted from continued strong demand for the Company's industrial fabrics and products, particularly fiberglass fiberglass, thread made from glass. It is made by forcing molten glass through a kind of sieve, thereby spinning it into threads. Fiberglass is strong, durable, and impervious to many caustics and to extreme temperatures. fabrics and roofing membrane membrane, structure composed mostly of lipid and protein that forms the external boundary of cells and of major structures within cells. Membrane organization is based on a sheet two molecules thick—a double layer of lipids aligned with their long hydrocarbon . For the full year, margin improvement was realized in all segments and was driven by productivity improvements and our exit from certain unprofitable products lines, including the sale of the Company's rubber products division in fiscal 1996 and the closure of the Company's Dunean plant, also in fiscal 1996. This improving mix and continued sales growth in higher margin industrial fabrics and products were the primary factors affecting improved profitability in 1997. "Many of the difficult actions taken in fiscal 1996, combined with the effect of a more aggressive capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. plan, are beginning to show results. The financial restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). that was completed in October will allow us the financial flexibility to proceed with our strategic plan to take advantage of the potential in the industrial fabrics markets by expanding our capacity while reducing cost and improving productivity in our apparel and home furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. segments. With this emphasis and our strong market position in the industrial fabrics markets, we believe that we can continue to improve the overall profitability of JPS and enhance the value of this company." JPS Textile Group, Inc. manufactures textiles and textile-related products for the apparel (unfinished woven A woven is a cloth formed by weaving. It only stretches in the Bias directions (between the warp and weft directions), unless the threads are elastic. Woven cloth usually frays at the edges, unless measures are taken to counter this, such as the use of pinking shears or hemming. fabrics and yarn yarn, fibers or filaments formed into a continuous strand for use in weaving textiles or for the manufacture of thread. A staple fiber, such as cotton, linen, or wool, is made into yarn by carding, combing (for fine, long staples only), drawing out into roving, then ), industrial fabrics (membrane roofing Membrane roofing is a type of roofing system for a building. It is used on flat or nearly flat roofs to prevent leaks and move water off the roof. Membrane roofs are most commonly made from synthetic rubber, thermoplastic (PVC or similar material), or modified bitumen ("torch down"). and fiberglass reinforcement reinforcement /re·in·force·ment/ (-in-fors´ment) in behavioral science, the presentation of a stimulus following a response that increases the frequency of subsequent responses, whether positive to desirable events, or fabrics), and home fashion textiles (drapery fabrics) markets. The Company operates through its JPS Elastomerics and JPS Converter (1) A device that changes one set of codes, modes, sequences or frequencies to a different set. See A/D converter. (2) A device that changes current from 60Hz to 50Hz and vice versa. and Industrial subsidiaries and has 10 manufacturing plants in five states. Statements contained in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements involve unknown uncertainties and risks which may cause the Company's actual results in the future to differ materially from expected results. These risks and uncertainties include, among others, economic or competitive conditions, the availability of financing at satisfactory terms, the demand for the Company~s products, the ability of the Company to successfully implement its strategic plans, and the risks and uncertainties identified in the Company's filings with the Securities and Exchange Commission. -0-
JPS TEXTILE GROUP, INC.
Pro Forma Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Fourth Quarter Ended Year Ended
Nov. 1, Nov. 2, Nov. 1, Nov. 2,
1997 1996 1997 1996
Net sales $117,189 $115,380 $418,371 $448,824
Cost of sales 98,300 100,423 349,844 385,020
Gross profit 18,889 14,957 68,527 63,804
Selling, general &
administrative expenses 10,019 10,306 40,744 41,909
Other income (expense) (127) (525) (611) (3,998)
Charges for plant closing,
loss on sale of certain
operations, and writedown of
certain long-lived assets 574 - 574 (30,028)
Operating profit (loss) 9,317 4,126 27,746 (12,131)
Interest expense 1,817 1,857 7,484 7,431
Income (loss) before income
taxes 7,500 2,269 20,262 (19,562)
Provision (benefit ) for
income taxes 3,199 1,111 8,643 (6,436)
Net income (loss) $ 4,301 $ 1,158 $ 11,619 $(13,126)
Earnings (loss) per
common share $ 0.43 $ 0.12 $ 1.16 $ (1.31)
Weighted average number
of common shares
outstanding 10,000,000 10,000,000 10,000,000 10,000,000
EBITDA $ 11,626 $ 7,196 $ 38,715 $32,070
Depreciation 2,308 2,492 9,230 9,235
Amortization of goodwill
and excess reorganization
costs 575 578 2,313 2,313
Plant closing, loss on sale
of certain operations,
and writedown of certain
long-lived assets (574) - (574) 30,028
Early retirement offer - - - 1,125
Loss on sale of carpet
division - - - 1,500
JPS TEXTILE GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
Predecessor Reorganized
Company Company
Period Period
From From
Year Year Nov. 3, Oct. 10,
Ended Ended 1996 to 1997 to
Oct. 28, Nov. 2, Oct. 9, Nov. 1,
1995 1996 1997 1997
Net sales $ 472,565 $ 448,824 $ 379,643 $ 38,728
Cost of sales 406,070 397,804 327,667 31,058
Gross profit 66,495 51,020 51,976 7,670
Selling, general &
administrative expenses 39,586 40,579 37,146 2,466
Other income (expense) (6,248) (2,498) (622) 11
Charges for plant closing,
loss on sale of certain
operations and writedown
of certain long-lived
assets - (30,028) 574 -
Operating profit (loss) 20,661 (22,085) 14,782 5,215
Valuation allowance on
Gulistan securities - (4,242) (5,070) -
Interest income 2,821 2,856 2,744 93
Interest expense (39,946) (40,510) (32,164) (584)
Income (loss) before
reorganization items,
income taxes,
discontinued operations
and extraordinary items (16,464) (63,981) (19,708) 4,724
Reorganization items:
Fair-value adjustments - - (4,651) -
Reorganization-related
professional fees and
expenses - (2,255) (8,420)
Income (loss) before
income taxes, discontinued
operations and
extraordinary items (16,464) (66,236) (32,779) 4,724
Provision (benefit) for
income taxes 1,200 (300) (8,822) 2,007
Income (loss) before
discontinued operations
and extraordinary items (17,664) (65,936) (23,957) 2,717
Discontinued operations:
Loss from discontinued
operations 7,079 - - -
Loss on sale of
discontinued operations,
net of taxes 26,241 1,500 - -
Income (loss) before
extraordinary items (50,984) (67,436) (23,957) 2,717
Extraordinary gain on early
extinguishment of debt,
net of taxes 20,120 - 100,235 -
Net income (loss) (30,864) (67,436) 76,278 2,717
Senior redeemable preferred
stock in-kind dividends
and discount accretion (3,831) (4,505) (3,827) -
Income (loss) applicable
to common stock $(34,695) $ (71,941) $ 72,451 $ 2,717
Weighted average number
of common shares
outstanding 1,000,000 1,000,000 1,000,000 10,000,000
Earnings (loss) per
common share:
Income (loss) before
discontinued operations
and extraordinary
items $ (21.50) $ (70.44) $ (27,78) $ 0.27
Discontinued operations:
Loss from discontinued
operations (7.08) - - -
Loss on sale of
discontinued
operations (26.24) (1.50) - -
Income (loss) before
extraordinary items (54.82) (71.94) (27.78) 0.27
Extraordinary gain on
early extinguishment
of debt 20.12 - 100.23 -
Net income (loss) $ (34.70) $ (71.94) $ 72.45 $ 0.27
JPS TEXTILE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
November 1, November 2,
1997 1996
Assets:
Cash $ 3,888 $ 1,460
Receivables 79,569 75,166
Inventory 44,770 48,374
Sundry current assets 37,085 1,967
Total current assets 165,312 126,967
Property, plant and equipment, net 104,554 124,004
Reorganization value in excess of
amounts allocable to identifiable
assets, net 45,690 -
Excess of cost over fair value of
net assets acquired, net - 30,506
Deferred income taxes 3,344 -
Other assets 3,481 54,450
Total assets $322,381 $ 335,927
Liabilities and Shareholders' Equity (Deficit):
Accounts payable $ 24,353 $ 24,708
Accrued interest 421 9,608
Accrued salaries, benefits and withholdings 9,147 10,440
Other accrued expenses 13,183 13,987
Senior credit facility, revolving line
of credit - 85,639
Current portion of long-term debt 36,076 240,451
Total current liabilities 83,180 384,833
Long-term debt 94,891 4,226
Deferred income taxes - 3,665
Other long-term liabilities 18,263 19,513
Total liabilities 196,334 412,237
Senior redeemable preferred stock - 32,676
Shareholders~ equity (deficit):
Junior preferred stock - 250
Common stock (historical):
Class A, $0.01 par value,
490,000 shares issued and
outstanding - 5
Class B, $0.01 par value,
510,000 shares issued and
outstanding - 5
Common stock (reorganized):
$0.01 par value, 22,000,000
shares authorized, 10,000,000
shares issued and outstanding 100 -
Additional paid-in capital 123,230 25,108
Retained earnings (deficit) 2,717 (134,354)
Total shareholders' equity 126,047 (108,986)
Total liabilities and shareholders'
equity $322,381 $ 335,927
CONTACT: JPS Textile Group Inc. David H. Taylor Taylor, city (1990 pop. 70,811), Wayne co., SE Mich., a suburb of Detroit adjacent to Dearborn; founded 1847 as a township, inc. as a city 1968. A small rural village until World War II, it developed significantly in the second half of the 20th cent. , 864/239-3900 |
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