Jerash Holdings Reports Financial Results for Fiscal 2024 First Quarter
- Jerash Holdings (US), Inc. announced a slight increase in revenue for Q1 2024, reaching $34.7 million, up 3.9% from the same period last year. The company is receiving new inquiries from global brands and expects meaningful orders for its joint venture in Q4. They are also in discussions for a joint venture in sustainable textile dyeing technology. Gross profit for the quarter was $5.6 million, operating income was $1.1 million, and net income was $495,000.
- None.
FAIRFIELD, NJ / ACCESSWIRE / August 9, 2023 / 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 2024 first quarter, ended June 30, 2023.
"Our first quarter demonstrated the Company's resiliency in a challenging retail environment. Revenue was up slightly, although, as expected, profitability was impacted, principally caused by a product mix shift to lower margin items," said Sam Choi, Jerash's chairman and chief executive officer. "We are beginning to see improvement in the retail market and are receiving new inquiries from global brands, including orders to produce sample products.
"The Initial marketing efforts by our joint venture partner, Busana Apparel Group, to its global customers are being well received. Jerash has begun working on pricing and sample development for more than ten new brands. We anticipate receiving meaningful orders for the joint venture during the fourth quarter of the current fiscal year.
"Additionally, we have been in discussion with one of the global leaders in sustainable textile dyeing technology to form a joint venture to provide vertical integration for our customers. The plan is to bring about a new era of sustainable and innovative textile dyeing process in Jordan, with a proprietary technology that, according to the presentation and information from the potential partner, could result in more than 80 percent water usage reduction and 50 percent carbon footprint reduction from traditional textile dyeing process. The proposed joint venture is expected to benefit our customers through shortening fabric sourcing lead times and will further reduce dependency on suppliers in South East and Eastern Asia," Choi added.
Fiscal 2024 First Quarter Results
Fiscal 2024 first quarter revenue advanced to
Gross profit was
Operating expenses totaled
Operating income totaled
Total other expenses were
The effective tax rate amounted to 38 percent for the three months ended June 30, 2023, compared with 25 percent for the three months ended June 30, 2022. The increase primarily resulted from a higher corporate income tax rate in Jordan, higher proportion of the operating loss of the Company's holding company and Hong Kong subsidiary.
Net income was
Balance Sheet, Cash Flow, and Dividends
Cash and restricted cash totaled
On August 4, 2023, Jerash approved a regular quarterly dividend of
Outlook
- Revenue for the full fiscal 2024 year is expected to be approximately the same as fiscal 2023.
- Gross margin goal for the full fiscal 2024 year is expected to be approximately 15-16 percent.
Conference Call
Jerash Holdings will host an investor conference call to discuss its fiscal 2024 first quarter results today, August 9, 2023, at 9:00 a.m. Eastern Time.
Phone: 888-506-0062 (domestic); 973-528-0011 (international)
Conference ID: 666417
A 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 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 licenses brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle, and Skechers. Jerash's existing production facilities comprise six factory units and four warehouses, and Jerash currently employs approximately 5,000 people. Additional information is available at www.jerashholdings.com.
Forward-Looking Statements
This 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, and expansion of the customer base among high-profile global brands, 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 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 or Roger Pondel
310-279-5980; jlin@pondel.com
# # #
(tables below)
JERASH HOLDINGS (US), INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
| For the Three Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
Revenue, net | $ | 34,735,657 | $ | 33,436,561 | ||||
Cost of goods sold | 29,168,117 | 26,814,194 | ||||||
Gross Profit | 5,567,540 | 6,622,367 | ||||||
Selling, general and administrative expenses | 4,234,918 | 4,018,698 | ||||||
Stock-based compensation expenses | 240,802 | 294,822 | ||||||
Total Operating Expenses | 4,475,720 | 4,313,520 | ||||||
Income from Operations | 1,091,820 | 2,308,847 | ||||||
Other Income (Expenses) | ||||||||
Interest expenses | (388,951 | ) | (87,842 | ) | ||||
Other income, net | 90,227 | 60,242 | ||||||
Total other expenses, net | (298,724 | ) | (27,600 | ) | ||||
Net income before provision for income taxes | 793,096 | 2,281,247 | ||||||
Income tax expenses | 297,981 | 559,865 | ||||||
Net income | 495,115 | 1,721,382 | ||||||
Net loss attributable to noncontrolling interest | 1,411 | - | ||||||
Net income attributable to Jerash Holdings (US), Inc.'s Common Stockholders | $ | 496,526 | $ | 1,721,382 | ||||
Net income | $ | 495,115 | $ | 1,721,382 | ||||
Other Comprehensive Loss | ||||||||
Foreign currency translation loss | (94,659 | ) | (117,660 | ) | ||||
Total Comprehensive Income | 400,456 | 1,603,722 | ||||||
Comprehensive loss attributable to noncontrolling interest | 1,411 | - | ||||||
Comprehensive Income Attributable to Jerash Holdings (US), Inc.'s Common Stockholders | $ | 401,867 | $ | 1,603,722 | ||||
Earnings Per Share Attributable to Common Stockholders | ||||||||
Basic and diluted | $ | 0.04 | $ | 0.14 | ||||
Weighted Average Number of Shares | ||||||||
Basic | 12,294,840 | 12,336,516 | ||||||
Diluted | 12,294,840 | 12,502,378 | ||||||
Dividend per share | $ | 0.05 | $ | 0.05 | ||||
JERASH HOLDINGS (US), INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, 2023 | March 31, 2023 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 18,459,939 | $ | 17,801,614 | ||||
Accounts receivable, net | 6,410,457 | 2,240,537 | ||||||
Bills receivable | - | 87,573 | ||||||
Tax recoverable | - | 16,763 | ||||||
Amount due from a related party | 31,365 | - | ||||||
Inventories | 23,800,407 | 32,656,833 | ||||||
Prepaid expenses and other current assets | 2,885,651 | 2,947,815 | ||||||
Advance to suppliers, net | 3,212,701 | 1,533,091 | ||||||
Total Current Assets | 54,800,520 | 57,284,226 | ||||||
Restricted cash - non-current | 1,611,294 | 1,609,989 | ||||||
Long-term deposits | 1,105,790 | 841,628 | ||||||
Deferred tax assets, net | 153,873 | 153,873 | ||||||
Property, plant and equipment, net | 23,255,357 | 22,355,574 | ||||||
Goodwill | 499,282 | 499,282 | ||||||
Right of use assets | 940,800 | 974,761 | ||||||
Total Assets | $ | 82,366,916 | $ | 83,719,333 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 3,571,002 | $ | 5,782,570 | ||||
Accrued expenses | 2,444,811 | 2,930,533 | ||||||
Credit facilities | 3,117,337 | - | ||||||
Income tax payable - current | 1,892,181 | 2,846,201 | ||||||
Other payables | 1,273,690 | 1,477,243 | ||||||
Deferred revenue | 625,132 | 928,393 | ||||||
Operating lease liabilities - current | 413,412 | 481,502 | ||||||
Total Current Liabilities | 13,337,565 | 14,446,442 | ||||||
Operating lease liabilities - non-current | 319,786 | 287,247 | ||||||
Income tax payable - non-current | 417,450 | 751,410 | ||||||
Total Liabilities | 14,074,801 | 15,485,099 | ||||||
Equity | ||||||||
Preferred stock, | $ | - | $ | - | ||||
Common stock, | 12,534 | 12,534 | ||||||
Additional paid-in capital | 23,171,848 | 22,931,046 | ||||||
Treasury stock, 239,478 shares | (1,169,046 | ) | (1,169,046 | ) | ||||
Statutory reserve | 410,847 | 410,847 | ||||||
Retained earnings | 46,053,866 | 46,172,082 | ||||||
Accumulated other comprehensive loss | (217,888 | ) | (123,229 | ) | ||||
Total Jerash Holdings (US), Inc. Stockholders` Equity | 68,262,161 | 68,234,234 | ||||||
Noncontrolling interest | 29,954 | - | ||||||
Total Equity | 68,292,115 | 68,234,234 | ||||||
Total Liabilities and Equity | $ | 82,366,916 | $ | 83,719,333 | ||||
JERASH HOLDINGS (US), INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Three Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | 495,115 | $ | 1,721,382 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 608,776 | 630,999 | ||||||
Stock-based compensation expenses | 240,802 | 294,822 | ||||||
Amortization of operating lease right-of-use assets | 205,112 | 238,758 | ||||||
Changes in operating assets: | ||||||||
Accounts receivable | (4,169,920 | ) | (30,644 | ) | ||||
Bills receivable | 87,573 | - | ||||||
Inventories | 8,856,426 | (717,470 | ) | |||||
Prepaid expenses and other current assets | 62,161 | 369,709 | ||||||
Advance to suppliers | (1,679,610 | ) | (2,166,500 | ) | ||||
Changes in operating liabilities: | ||||||||
Accounts payable | (2,211,568 | ) | (649,556 | ) | ||||
Accrued expenses | (485,721 | ) | 139,879 | |||||
Other payables | (203,553 | ) | (620,436 | ) | ||||
Deferred revenue | (303,261 | ) | 137,982 | |||||
Operating lease liabilities | (206,702 | ) | (207,923 | ) | ||||
Income tax payable, net of recovery | (1,270,858 | ) | 386,262 | |||||
Net cash provided by (used in) operating activities | 24,772 | (472,736 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchases of property, plant and equipment | (61,258 | ) | (151,263 | ) | ||||
Payments for construction of properties | (1,434,965 | ) | (1,810,075 | ) | ||||
Acquisition deposit | - | (1,267,407 | ) | |||||
Payments for long-term deposits | (276,498 | ) | (151,967 | ) | ||||
Net cash used in investing activities | (1,772,721 | ) | (3,380,712 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividend payment | (614,742 | ) | (616,716 | ) | ||||
Repayment to a related party | - | (300,166 | ) | |||||
Proceeds from short-term loan | 3,117,337 | - | ||||||
Net proceeds from issuance of common stock | - | 1,130,046 | ||||||
Net cash provided by financing activities | 2,502,595 | 213,164 | ||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH | (95,016 | ) | (117,852 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH | 659,630 | (3,758,136 | ) | |||||
CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD | 19,411,603 | 26,583,488 | ||||||
CASH, AND RESTRICTED CASH, END OF THE PERIOD | $ | 20,071,233 | $ | 22,825,352 | ||||
CASH, AND RESTRICTED CASH, END OF THE PERIOD | 20,071,233 | 22,825,352 | ||||||
LESS: NON-CURRENT RESTRICTED CASH | 1,611,294 | 1,328,033 | ||||||
CASH, END OF THE PERIOD | $ | 18,459,939 | $ | 21,497,319 | ||||
Supplemental disclosure information: | ||||||||
Cash paid for interest | $ | 388,951 | $ | 87,842 | ||||
Income tax paid | $ | 1,585,961 | $ | 531,493 | ||||
Non-cash investing and financing activities | ||||||||
Equipment obtained by utilizing long-term deposit | $ | 25,464 | $ | 244,667 | ||||
Investment of noncontrolling interest | $ | 31,365 | $ | - | ||||
Right of use assets obtained in exchange for operating lease obligations | $ | 177,068 | $ | 68,932 | ||||
SOURCE: Jerash Holdings (US), Inc.
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FAQ
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