Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Jerash Holdings Reports Financial Results for Fiscal Year 2023 First Quarter By: ACCESSWIRE August 11, 2022 at 08:00 AM EDT FAIRFIELD, NJ / ACCESSWIRE / August 11, 2022 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal year 2023 first quarter, ended June 30, 2022.First Quarter Fiscal Year 2023 HighlightsRevenue of $33.4 million, up 11.9 percent from the same quarter last yearGross profit of $6.6 million, up 17.6 percent from the same quarter last yearGross margin of 19.8 percent, up 100 basis points, from the same quarter last yearNet income of $1.7 million, or $0.14 per share, versus $1.9 million, or $0.17 per share, from the same quarter last yearFiscal Year 2023 OutlookRevenue for fiscal year 2023 second quarter: $41 million to $43 million vs. $45.7 million in fiscal year 2022 second quarterGross margin goal for fiscal year 2023: 16 percent to 18 percent"Revenue was the highest for any first quarter in Jerash's history, reflecting our reputation as a top-quality garment manufacturer in Jordan and our competitive advantage to attract new global brand customers," said Sam Choi, Jerash's chairman and chief executive officer. "Despite the challenging external retail and general economic environment, we continue to focus on diversifying and expanding our customer base."Proceeding into the new fiscal year, retailers are facing headwinds, including inflationary pressures and higher inventory levels. Nevertheless, our factories remain busy, with incoming orders through the end of this calendar year, albeit with a mix shift toward products that command lower average selling prices, along with purchase orders that are generally smaller," Choi added.Gilbert Lee, chief financial officer of Jerash, added, "With the current order flow from existing customers and initial orders from new customers being smaller in nature and taking time to ramp up, we are taking a conservative approach to forecasting revenue growth and margins, particularly in comparison with fiscal year 2022, which saw record high demand in post-COVID re-openings."We continue to focus on enhancing our ESG efforts in everything we do, including the construction of a high-quality, energy-efficient, contemporary living space, which is expected to be completed this fall. We plan to move approximately 1,500 of our multi-national workers to this new dormitory at the end of 2022, which, in turn, will save our company about $500,000 in rental expenses next year," Lee added.Fiscal Year 2023 First Quarter ResultsRevenue for the fiscal year 2023 first quarter rose by 11.9 percent to $33.4 million, from $29.9 million in the same period last year.Gross profit for the fiscal year 2023 first quarter increased 17.6 percent to $6.6 million, from $5.6 million in the same period last year.Gross margin expanded 100 basis points to 19.8 percent in the fiscal year 2023 first quarter, from 18.8 percent in the same period last year, reflecting lower average cost basis from larger production scale, after the integration of the latest acquisition of MK Garments in October 2021, and to a lesser extent, margin improvement for products sold to local customers.Operating expenses totaled $4.4 million in the fiscal year 2023 first quarter, versus $3.3 million in the same period last year. The increase was primarily due to a higher headcount from the acquisition of MK Garments, an increase of approximately $294,000 in stock-based compensation, and expenses related to the recruitment of new migrant workers and associated travel.Operating income totaled $2.2 million in the fiscal year 2023 first quarter, versus $2.3 million in the same period last year. Income tax expenses for fiscal first quarter were $560,000, compared with $418,000 in the same period last year.Net income was $1.7 million in the fiscal year 2023 first quarter, or $0.14 per share, versus $1.9 million, or $0.17 per share, in the same period last year. Comprehensive income attributable to Jerash Holdings (US), Inc.'s common stockholders totaled $1.6 million in the fiscal year 2023 first quarter, versus approximately $2.0 million in the same period last year.Balance Sheet, Cash Flow and DividendsCash totaled $21.5 million, and net working capital was $55.6 million at June 30, 2022.On August 5, 2022, Jerash approved a regular quarterly dividend of $0.05 per share on its common stock, payable on August 24, 2022 to stockholders of record as of August 17, 2022.Share Repurchase ProgramOn June 13, 2022, the Company authorized a $3.0 million share repurchase program. The share repurchase program will be in effect through March 31, 2023. As of June 30, 2022, no share had been repurchased.Conference CallJerash Holdings will host an investor conference call to discuss its fiscal year 2023 first quarter results today, August 11, 2022, at 9:00 a.m. Eastern Time.Phone: 877-545-0523 (domestic); 973-528-0016 (international)Conference ID: 839418A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.About Jerash Holdings (US), Inc.Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which owns brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle and Skechers. Jerash's existing production facilities comprise six factories and four warehouses, and Jerash currently employs approximately 5,800 people. Additional information is available at www.jerashholdings.com.Forward-Looking StatementsThis news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash's current views with respect to future events and its financial forecasts, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the Securities and Exchange Commission. In addition, there is uncertainty about the further spread of the COVID-19 virus or new variants thereof, or the occurrence of another wave of cases and the impact it may have on the company's operations, the demand for the company's products, global supply chains and economic activity in general. These and other risks and uncertainties are detailed in the company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.Contact: PondelWilkinson Inc. Judy Lin Sfetcu or Roger Pondel 310-279-5980; jsfetcu@pondel.com# # #(tables below)JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(UNAUDITED) For the Three Months Ended June 30, 2022 2021 Revenue, net $33,436,561 $29,888,692Cost of goods sold 26,814,194 24,257,750Gross Profit 6,622,367 5,630,942 Selling, general and administrative expenses 4,106,540 3,314,214Stock-based compensation expenses 294,822 517Total Operating Expenses 4,401,362 3,314,731 Income from Operations 2,221,005 2,316,211 Other Income: Other income, net 60,242 36,281Total other income, net 60,242 36,281 Net income before provision for income taxes 2,281,247 2,352,492 Income tax expense 559,865 417,809 Net Income 1,721,382 1,934,683 Other Comprehensive Income: Foreign currency translation (loss) gain (117,660) 79,988Comprehensive Income Attributable to Jerash Holdings (US), Inc.'s Common Stockholders $1,603,722 $2,014,671 Earnings Per Share Attributable to Common Stockholders: Basic and diluted $0.14 $0.17 Weighted Average Number of Shares Basic 12,336,516 11,333,934Diluted 12,502,378 11,354,680 Dividend per share $0.05 $0.05 JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS June 30,2022 March 31,2022 (Unaudited) ASSETSCurrent Assets: Cash $21,497,319 $25,176,120Accounts receivable, net 11,079,713 11,049,069Tax recoverable 7,434 374,377Inventories 28,972,649 28,255,179Prepaid expenses and other current assets 2,863,884 3,233,592Investment deposits 1,767,407 500,000Advance to suppliers, net 3,451,102 1,284,601Total Current Assets 69,639,508 69,872,938 Restricted cash - non-current 1,328,033 1,407,368Long-term deposits 328,792 419,597Deferred tax assets, net 352,590 352,590Property, plant and equipment, net 12,506,257 10,933,147Goodwill 499,282 499,282Right of use assets 1,643,999 1,826,062Total Assets $86,298,461 $85,310,984 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Credit facilities $1,130,046 $-Accounts payable 4,190,669 4,840,225Accrued expenses 3,255,832 3,115,953Income tax payable - current 2,880,399 2,861,272Other payables 1,658,381 2,278,816Deferred revenue 137,982 -Amount due to a related party - 300,166Operating lease liabilities - current 750,004 739,101Total Current Liabilities 14,003,313 14,135,533 Operating lease liabilities - non-current 707,182 869,313Income tax payable - non-current 1,001,880 1,001,880Total Liabilities 15,712,375 16,006,726 Commitments and Contingencies Stockholders' Equity Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding $- $-Common stock, $0.001 par value; 30,000,000 shares authorized; 12,534,318 and 12,334,318 shares issued and outstanding respectively 12,534 12,334Additional paid-in capital 22,811,968 22,517,346Statutory reserve 379,323 379,323Retained earnings 47,372,776 46,268,110Accumulated other comprehensive gain 9,485 127,145Total Jerash Holdings (US), Inc.'s Stockholders' Equity 70,586,086 69,304,258 Total Liabilities and Stockholders' Equity $86,298,461 $85,310,984JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Three Months Ended June 30, 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $1,721,382 $1,934,683 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 630,999 404,526 Stock-based compensation expenses 294,822 517 Amortization of operating lease right-of-use assets 238,758 172,891 Changes in operating assets: Accounts receivable (30,644) (7,548,486)Inventories (717,470) (6,264,474)Prepaid expenses and other current assets 369,709 (126,087)Advance to suppliers (2,166,500) 2,925,259 Changes in operating liabilities: Accounts payable (649,556) (2,464,174)Accrued expenses 139,879 359,870 Other payables (620,436) (422,310)Deferred revenue 137,982 - Operating lease liabilities (207,923) (121,352)Income tax payable, net of recovery 386,262 (307,997)Net cash used in operating activities (472,736) (11,457,134) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, plant and equipment (151,263) (626,680)Payments for construction of properties (1,810,075) - Acquisition deposit (1,267,407) (1,082,905)Payment for long-term deposits (151,967) (62,930)Net cash used in investing activities (3,380,712) (1,772,515) CASH FLOWS FROM FINANCING ACTIVITIES Dividend payment (616,716) (566,649)Repayment from short-term loan - (612,703)Repayment to a related party (300,166) - Proceeds from short-term loan 1,130,046 - Net cash provided by (used in) financing activities 213,164 (1,179,352) EFFECT OF EXCHANGE RATE CHANGES ON CASH (117,852) 80,005 NET DECREASE IN CASH (3,758,136) (14,328,996) CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD 26,583,488 22,860,463 CASH, AND RESTRICTED CASH, END OF THE PERIOD $22,825,352 $8,531,467 CASH, AND RESTRICTED CASH, END OF THE PERIOD 22,825,352 8,531,467 LESS: NON-CURRENT RESTRICTED CASH 1,328,033 876,211 CASH, END OF THE PERIOD $21,497,319 $7,655,256 Supplemental disclosure information: Cash paid for interest $87,842 $28,639 Income tax paid $531,493 $724,443 Non-cash financing activities Equipment obtained by utilizing long-term deposit $244,667 $128,690 Right of use assets obtained in exchange for operating lease obligations $68,932 $353,611 SOURCE: Jerash HoldingsView source version on accesswire.com: https://www.accesswire.com/711695/Jerash-Holdings-Reports-Financial-Results-for-Fiscal-Year-2023-First-Quarter Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Jerash Holdings Reports Financial Results for Fiscal Year 2023 First Quarter By: ACCESSWIRE August 11, 2022 at 08:00 AM EDT FAIRFIELD, NJ / ACCESSWIRE / August 11, 2022 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal year 2023 first quarter, ended June 30, 2022.First Quarter Fiscal Year 2023 HighlightsRevenue of $33.4 million, up 11.9 percent from the same quarter last yearGross profit of $6.6 million, up 17.6 percent from the same quarter last yearGross margin of 19.8 percent, up 100 basis points, from the same quarter last yearNet income of $1.7 million, or $0.14 per share, versus $1.9 million, or $0.17 per share, from the same quarter last yearFiscal Year 2023 OutlookRevenue for fiscal year 2023 second quarter: $41 million to $43 million vs. $45.7 million in fiscal year 2022 second quarterGross margin goal for fiscal year 2023: 16 percent to 18 percent"Revenue was the highest for any first quarter in Jerash's history, reflecting our reputation as a top-quality garment manufacturer in Jordan and our competitive advantage to attract new global brand customers," said Sam Choi, Jerash's chairman and chief executive officer. "Despite the challenging external retail and general economic environment, we continue to focus on diversifying and expanding our customer base."Proceeding into the new fiscal year, retailers are facing headwinds, including inflationary pressures and higher inventory levels. Nevertheless, our factories remain busy, with incoming orders through the end of this calendar year, albeit with a mix shift toward products that command lower average selling prices, along with purchase orders that are generally smaller," Choi added.Gilbert Lee, chief financial officer of Jerash, added, "With the current order flow from existing customers and initial orders from new customers being smaller in nature and taking time to ramp up, we are taking a conservative approach to forecasting revenue growth and margins, particularly in comparison with fiscal year 2022, which saw record high demand in post-COVID re-openings."We continue to focus on enhancing our ESG efforts in everything we do, including the construction of a high-quality, energy-efficient, contemporary living space, which is expected to be completed this fall. We plan to move approximately 1,500 of our multi-national workers to this new dormitory at the end of 2022, which, in turn, will save our company about $500,000 in rental expenses next year," Lee added.Fiscal Year 2023 First Quarter ResultsRevenue for the fiscal year 2023 first quarter rose by 11.9 percent to $33.4 million, from $29.9 million in the same period last year.Gross profit for the fiscal year 2023 first quarter increased 17.6 percent to $6.6 million, from $5.6 million in the same period last year.Gross margin expanded 100 basis points to 19.8 percent in the fiscal year 2023 first quarter, from 18.8 percent in the same period last year, reflecting lower average cost basis from larger production scale, after the integration of the latest acquisition of MK Garments in October 2021, and to a lesser extent, margin improvement for products sold to local customers.Operating expenses totaled $4.4 million in the fiscal year 2023 first quarter, versus $3.3 million in the same period last year. The increase was primarily due to a higher headcount from the acquisition of MK Garments, an increase of approximately $294,000 in stock-based compensation, and expenses related to the recruitment of new migrant workers and associated travel.Operating income totaled $2.2 million in the fiscal year 2023 first quarter, versus $2.3 million in the same period last year. Income tax expenses for fiscal first quarter were $560,000, compared with $418,000 in the same period last year.Net income was $1.7 million in the fiscal year 2023 first quarter, or $0.14 per share, versus $1.9 million, or $0.17 per share, in the same period last year. Comprehensive income attributable to Jerash Holdings (US), Inc.'s common stockholders totaled $1.6 million in the fiscal year 2023 first quarter, versus approximately $2.0 million in the same period last year.Balance Sheet, Cash Flow and DividendsCash totaled $21.5 million, and net working capital was $55.6 million at June 30, 2022.On August 5, 2022, Jerash approved a regular quarterly dividend of $0.05 per share on its common stock, payable on August 24, 2022 to stockholders of record as of August 17, 2022.Share Repurchase ProgramOn June 13, 2022, the Company authorized a $3.0 million share repurchase program. The share repurchase program will be in effect through March 31, 2023. As of June 30, 2022, no share had been repurchased.Conference CallJerash Holdings will host an investor conference call to discuss its fiscal year 2023 first quarter results today, August 11, 2022, at 9:00 a.m. Eastern Time.Phone: 877-545-0523 (domestic); 973-528-0016 (international)Conference ID: 839418A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.About Jerash Holdings (US), Inc.Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which owns brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle and Skechers. Jerash's existing production facilities comprise six factories and four warehouses, and Jerash currently employs approximately 5,800 people. Additional information is available at www.jerashholdings.com.Forward-Looking StatementsThis news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash's current views with respect to future events and its financial forecasts, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the Securities and Exchange Commission. In addition, there is uncertainty about the further spread of the COVID-19 virus or new variants thereof, or the occurrence of another wave of cases and the impact it may have on the company's operations, the demand for the company's products, global supply chains and economic activity in general. These and other risks and uncertainties are detailed in the company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.Contact: PondelWilkinson Inc. Judy Lin Sfetcu or Roger Pondel 310-279-5980; jsfetcu@pondel.com# # #(tables below)JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(UNAUDITED) For the Three Months Ended June 30, 2022 2021 Revenue, net $33,436,561 $29,888,692Cost of goods sold 26,814,194 24,257,750Gross Profit 6,622,367 5,630,942 Selling, general and administrative expenses 4,106,540 3,314,214Stock-based compensation expenses 294,822 517Total Operating Expenses 4,401,362 3,314,731 Income from Operations 2,221,005 2,316,211 Other Income: Other income, net 60,242 36,281Total other income, net 60,242 36,281 Net income before provision for income taxes 2,281,247 2,352,492 Income tax expense 559,865 417,809 Net Income 1,721,382 1,934,683 Other Comprehensive Income: Foreign currency translation (loss) gain (117,660) 79,988Comprehensive Income Attributable to Jerash Holdings (US), Inc.'s Common Stockholders $1,603,722 $2,014,671 Earnings Per Share Attributable to Common Stockholders: Basic and diluted $0.14 $0.17 Weighted Average Number of Shares Basic 12,336,516 11,333,934Diluted 12,502,378 11,354,680 Dividend per share $0.05 $0.05 JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS June 30,2022 March 31,2022 (Unaudited) ASSETSCurrent Assets: Cash $21,497,319 $25,176,120Accounts receivable, net 11,079,713 11,049,069Tax recoverable 7,434 374,377Inventories 28,972,649 28,255,179Prepaid expenses and other current assets 2,863,884 3,233,592Investment deposits 1,767,407 500,000Advance to suppliers, net 3,451,102 1,284,601Total Current Assets 69,639,508 69,872,938 Restricted cash - non-current 1,328,033 1,407,368Long-term deposits 328,792 419,597Deferred tax assets, net 352,590 352,590Property, plant and equipment, net 12,506,257 10,933,147Goodwill 499,282 499,282Right of use assets 1,643,999 1,826,062Total Assets $86,298,461 $85,310,984 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Credit facilities $1,130,046 $-Accounts payable 4,190,669 4,840,225Accrued expenses 3,255,832 3,115,953Income tax payable - current 2,880,399 2,861,272Other payables 1,658,381 2,278,816Deferred revenue 137,982 -Amount due to a related party - 300,166Operating lease liabilities - current 750,004 739,101Total Current Liabilities 14,003,313 14,135,533 Operating lease liabilities - non-current 707,182 869,313Income tax payable - non-current 1,001,880 1,001,880Total Liabilities 15,712,375 16,006,726 Commitments and Contingencies Stockholders' Equity Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding $- $-Common stock, $0.001 par value; 30,000,000 shares authorized; 12,534,318 and 12,334,318 shares issued and outstanding respectively 12,534 12,334Additional paid-in capital 22,811,968 22,517,346Statutory reserve 379,323 379,323Retained earnings 47,372,776 46,268,110Accumulated other comprehensive gain 9,485 127,145Total Jerash Holdings (US), Inc.'s Stockholders' Equity 70,586,086 69,304,258 Total Liabilities and Stockholders' Equity $86,298,461 $85,310,984JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Three Months Ended June 30, 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $1,721,382 $1,934,683 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 630,999 404,526 Stock-based compensation expenses 294,822 517 Amortization of operating lease right-of-use assets 238,758 172,891 Changes in operating assets: Accounts receivable (30,644) (7,548,486)Inventories (717,470) (6,264,474)Prepaid expenses and other current assets 369,709 (126,087)Advance to suppliers (2,166,500) 2,925,259 Changes in operating liabilities: Accounts payable (649,556) (2,464,174)Accrued expenses 139,879 359,870 Other payables (620,436) (422,310)Deferred revenue 137,982 - Operating lease liabilities (207,923) (121,352)Income tax payable, net of recovery 386,262 (307,997)Net cash used in operating activities (472,736) (11,457,134) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, plant and equipment (151,263) (626,680)Payments for construction of properties (1,810,075) - Acquisition deposit (1,267,407) (1,082,905)Payment for long-term deposits (151,967) (62,930)Net cash used in investing activities (3,380,712) (1,772,515) CASH FLOWS FROM FINANCING ACTIVITIES Dividend payment (616,716) (566,649)Repayment from short-term loan - (612,703)Repayment to a related party (300,166) - Proceeds from short-term loan 1,130,046 - Net cash provided by (used in) financing activities 213,164 (1,179,352) EFFECT OF EXCHANGE RATE CHANGES ON CASH (117,852) 80,005 NET DECREASE IN CASH (3,758,136) (14,328,996) CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD 26,583,488 22,860,463 CASH, AND RESTRICTED CASH, END OF THE PERIOD $22,825,352 $8,531,467 CASH, AND RESTRICTED CASH, END OF THE PERIOD 22,825,352 8,531,467 LESS: NON-CURRENT RESTRICTED CASH 1,328,033 876,211 CASH, END OF THE PERIOD $21,497,319 $7,655,256 Supplemental disclosure information: Cash paid for interest $87,842 $28,639 Income tax paid $531,493 $724,443 Non-cash financing activities Equipment obtained by utilizing long-term deposit $244,667 $128,690 Right of use assets obtained in exchange for operating lease obligations $68,932 $353,611 SOURCE: Jerash HoldingsView source version on accesswire.com: https://www.accesswire.com/711695/Jerash-Holdings-Reports-Financial-Results-for-Fiscal-Year-2023-First-Quarter
FAIRFIELD, NJ / ACCESSWIRE / August 11, 2022 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal year 2023 first quarter, ended June 30, 2022.First Quarter Fiscal Year 2023 HighlightsRevenue of $33.4 million, up 11.9 percent from the same quarter last yearGross profit of $6.6 million, up 17.6 percent from the same quarter last yearGross margin of 19.8 percent, up 100 basis points, from the same quarter last yearNet income of $1.7 million, or $0.14 per share, versus $1.9 million, or $0.17 per share, from the same quarter last yearFiscal Year 2023 OutlookRevenue for fiscal year 2023 second quarter: $41 million to $43 million vs. $45.7 million in fiscal year 2022 second quarterGross margin goal for fiscal year 2023: 16 percent to 18 percent"Revenue was the highest for any first quarter in Jerash's history, reflecting our reputation as a top-quality garment manufacturer in Jordan and our competitive advantage to attract new global brand customers," said Sam Choi, Jerash's chairman and chief executive officer. "Despite the challenging external retail and general economic environment, we continue to focus on diversifying and expanding our customer base."Proceeding into the new fiscal year, retailers are facing headwinds, including inflationary pressures and higher inventory levels. Nevertheless, our factories remain busy, with incoming orders through the end of this calendar year, albeit with a mix shift toward products that command lower average selling prices, along with purchase orders that are generally smaller," Choi added.Gilbert Lee, chief financial officer of Jerash, added, "With the current order flow from existing customers and initial orders from new customers being smaller in nature and taking time to ramp up, we are taking a conservative approach to forecasting revenue growth and margins, particularly in comparison with fiscal year 2022, which saw record high demand in post-COVID re-openings."We continue to focus on enhancing our ESG efforts in everything we do, including the construction of a high-quality, energy-efficient, contemporary living space, which is expected to be completed this fall. We plan to move approximately 1,500 of our multi-national workers to this new dormitory at the end of 2022, which, in turn, will save our company about $500,000 in rental expenses next year," Lee added.Fiscal Year 2023 First Quarter ResultsRevenue for the fiscal year 2023 first quarter rose by 11.9 percent to $33.4 million, from $29.9 million in the same period last year.Gross profit for the fiscal year 2023 first quarter increased 17.6 percent to $6.6 million, from $5.6 million in the same period last year.Gross margin expanded 100 basis points to 19.8 percent in the fiscal year 2023 first quarter, from 18.8 percent in the same period last year, reflecting lower average cost basis from larger production scale, after the integration of the latest acquisition of MK Garments in October 2021, and to a lesser extent, margin improvement for products sold to local customers.Operating expenses totaled $4.4 million in the fiscal year 2023 first quarter, versus $3.3 million in the same period last year. The increase was primarily due to a higher headcount from the acquisition of MK Garments, an increase of approximately $294,000 in stock-based compensation, and expenses related to the recruitment of new migrant workers and associated travel.Operating income totaled $2.2 million in the fiscal year 2023 first quarter, versus $2.3 million in the same period last year. Income tax expenses for fiscal first quarter were $560,000, compared with $418,000 in the same period last year.Net income was $1.7 million in the fiscal year 2023 first quarter, or $0.14 per share, versus $1.9 million, or $0.17 per share, in the same period last year. Comprehensive income attributable to Jerash Holdings (US), Inc.'s common stockholders totaled $1.6 million in the fiscal year 2023 first quarter, versus approximately $2.0 million in the same period last year.Balance Sheet, Cash Flow and DividendsCash totaled $21.5 million, and net working capital was $55.6 million at June 30, 2022.On August 5, 2022, Jerash approved a regular quarterly dividend of $0.05 per share on its common stock, payable on August 24, 2022 to stockholders of record as of August 17, 2022.Share Repurchase ProgramOn June 13, 2022, the Company authorized a $3.0 million share repurchase program. The share repurchase program will be in effect through March 31, 2023. As of June 30, 2022, no share had been repurchased.Conference CallJerash Holdings will host an investor conference call to discuss its fiscal year 2023 first quarter results today, August 11, 2022, at 9:00 a.m. Eastern Time.Phone: 877-545-0523 (domestic); 973-528-0016 (international)Conference ID: 839418A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.About Jerash Holdings (US), Inc.Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which owns brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle and Skechers. Jerash's existing production facilities comprise six factories and four warehouses, and Jerash currently employs approximately 5,800 people. Additional information is available at www.jerashholdings.com.Forward-Looking StatementsThis news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash's current views with respect to future events and its financial forecasts, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the Securities and Exchange Commission. In addition, there is uncertainty about the further spread of the COVID-19 virus or new variants thereof, or the occurrence of another wave of cases and the impact it may have on the company's operations, the demand for the company's products, global supply chains and economic activity in general. These and other risks and uncertainties are detailed in the company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.Contact: PondelWilkinson Inc. Judy Lin Sfetcu or Roger Pondel 310-279-5980; jsfetcu@pondel.com# # #(tables below)JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(UNAUDITED) For the Three Months Ended June 30, 2022 2021 Revenue, net $33,436,561 $29,888,692Cost of goods sold 26,814,194 24,257,750Gross Profit 6,622,367 5,630,942 Selling, general and administrative expenses 4,106,540 3,314,214Stock-based compensation expenses 294,822 517Total Operating Expenses 4,401,362 3,314,731 Income from Operations 2,221,005 2,316,211 Other Income: Other income, net 60,242 36,281Total other income, net 60,242 36,281 Net income before provision for income taxes 2,281,247 2,352,492 Income tax expense 559,865 417,809 Net Income 1,721,382 1,934,683 Other Comprehensive Income: Foreign currency translation (loss) gain (117,660) 79,988Comprehensive Income Attributable to Jerash Holdings (US), Inc.'s Common Stockholders $1,603,722 $2,014,671 Earnings Per Share Attributable to Common Stockholders: Basic and diluted $0.14 $0.17 Weighted Average Number of Shares Basic 12,336,516 11,333,934Diluted 12,502,378 11,354,680 Dividend per share $0.05 $0.05 JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS June 30,2022 March 31,2022 (Unaudited) ASSETSCurrent Assets: Cash $21,497,319 $25,176,120Accounts receivable, net 11,079,713 11,049,069Tax recoverable 7,434 374,377Inventories 28,972,649 28,255,179Prepaid expenses and other current assets 2,863,884 3,233,592Investment deposits 1,767,407 500,000Advance to suppliers, net 3,451,102 1,284,601Total Current Assets 69,639,508 69,872,938 Restricted cash - non-current 1,328,033 1,407,368Long-term deposits 328,792 419,597Deferred tax assets, net 352,590 352,590Property, plant and equipment, net 12,506,257 10,933,147Goodwill 499,282 499,282Right of use assets 1,643,999 1,826,062Total Assets $86,298,461 $85,310,984 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Credit facilities $1,130,046 $-Accounts payable 4,190,669 4,840,225Accrued expenses 3,255,832 3,115,953Income tax payable - current 2,880,399 2,861,272Other payables 1,658,381 2,278,816Deferred revenue 137,982 -Amount due to a related party - 300,166Operating lease liabilities - current 750,004 739,101Total Current Liabilities 14,003,313 14,135,533 Operating lease liabilities - non-current 707,182 869,313Income tax payable - non-current 1,001,880 1,001,880Total Liabilities 15,712,375 16,006,726 Commitments and Contingencies Stockholders' Equity Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding $- $-Common stock, $0.001 par value; 30,000,000 shares authorized; 12,534,318 and 12,334,318 shares issued and outstanding respectively 12,534 12,334Additional paid-in capital 22,811,968 22,517,346Statutory reserve 379,323 379,323Retained earnings 47,372,776 46,268,110Accumulated other comprehensive gain 9,485 127,145Total Jerash Holdings (US), Inc.'s Stockholders' Equity 70,586,086 69,304,258 Total Liabilities and Stockholders' Equity $86,298,461 $85,310,984JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Three Months Ended June 30, 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $1,721,382 $1,934,683 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 630,999 404,526 Stock-based compensation expenses 294,822 517 Amortization of operating lease right-of-use assets 238,758 172,891 Changes in operating assets: Accounts receivable (30,644) (7,548,486)Inventories (717,470) (6,264,474)Prepaid expenses and other current assets 369,709 (126,087)Advance to suppliers (2,166,500) 2,925,259 Changes in operating liabilities: Accounts payable (649,556) (2,464,174)Accrued expenses 139,879 359,870 Other payables (620,436) (422,310)Deferred revenue 137,982 - Operating lease liabilities (207,923) (121,352)Income tax payable, net of recovery 386,262 (307,997)Net cash used in operating activities (472,736) (11,457,134) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, plant and equipment (151,263) (626,680)Payments for construction of properties (1,810,075) - Acquisition deposit (1,267,407) (1,082,905)Payment for long-term deposits (151,967) (62,930)Net cash used in investing activities (3,380,712) (1,772,515) CASH FLOWS FROM FINANCING ACTIVITIES Dividend payment (616,716) (566,649)Repayment from short-term loan - (612,703)Repayment to a related party (300,166) - Proceeds from short-term loan 1,130,046 - Net cash provided by (used in) financing activities 213,164 (1,179,352) EFFECT OF EXCHANGE RATE CHANGES ON CASH (117,852) 80,005 NET DECREASE IN CASH (3,758,136) (14,328,996) CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD 26,583,488 22,860,463 CASH, AND RESTRICTED CASH, END OF THE PERIOD $22,825,352 $8,531,467 CASH, AND RESTRICTED CASH, END OF THE PERIOD 22,825,352 8,531,467 LESS: NON-CURRENT RESTRICTED CASH 1,328,033 876,211 CASH, END OF THE PERIOD $21,497,319 $7,655,256 Supplemental disclosure information: Cash paid for interest $87,842 $28,639 Income tax paid $531,493 $724,443 Non-cash financing activities Equipment obtained by utilizing long-term deposit $244,667 $128,690 Right of use assets obtained in exchange for operating lease obligations $68,932 $353,611 SOURCE: Jerash HoldingsView source version on accesswire.com: https://www.accesswire.com/711695/Jerash-Holdings-Reports-Financial-Results-for-Fiscal-Year-2023-First-Quarter