USA: JPS Industries Sells Off Textile Division, Announces Q4 Results
For the fourth quarter of fiscal 2000, JPS reported a net loss of $45.9m, or $4.66 per diluted share. The fourth quarter results include a $47.4m loss, net of taxes, on the sale of the company's apparel division on November 17, 2000, that was previously announced. This compares with net income of $1.5m, or $0.15 per share, for the fourth quarter of fiscal 1999. Net sales from continuing operations for the fourth quarter of fiscal 2000 rose to $48m compared with sales of $41.7m in the same quarter of fiscal 1999. Excluding the effect of the apparel division sale, income from continuing operations increased more than three-fold as sales increased 15 per cent. EBITDA from continuing operations, a measure of operating cash flow, increased 35 per cent to $6m, or 12.4 per cent of sales, in the fourth quarter of fiscal 2000 compared with $4.4m, or 10.6 per cent of sales, in the prior-year period.
For fiscal 2000, the Company reported a loss of $41.2m, or $4.15 per diluted share, on sales from continuing operations of $168m compared with a net loss of $21.4m, or $2.14 per diluted share, on sales from continuing operations of $156.9m for fiscal 1999. Both periods include charges for discontinued operations. Excluding the effects of discontinued operations, income from continuing operations increased 5.5 times from $1.1m in fiscal 1999 to $6.3m in fiscal 2000 on a sales increase of 7 per cent. EBITDA from continuing operations increased 39 per cent to $20.4m, or 12.1 per cent of sales, from $14.7m, or 9.4 per cent of sales, in the prior-year period.
Michael L. Fulbright, JPS's chairman, president and chief executive officer, said, "We are very pleased with our fourth quarter and full year results. It is especially satisfying to have achieved performance improvements across all divisions of the company and, more so, because of the diverse and competitive nature of each market we serve. Further, we believe the results we achieved solidly position us for fiscal 2001.
"Beyond our financial performance, the sale of the JPS apparel division several weeks ago was the final step in the strategic transformation we outlined in May of 1999. The sale completes JPS Industries' exit from the textile portion of our businesses and clearly positions us as a major marketer and manufacturer of specialty-engineered products for a myriad of commercial and industrial applications. We are excited about our future potential as we now focus all our energies and resources on the growing JPS Elastomerics and JPS Glass businesses."
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