Exhibit 99.1
Jerash Reports Record $33.5 Million Quarterly Revenue
$0.41 Per Share GAAP Net Income, $0.59 Per Share Adjusted EBITDA
Initiates Quarterly Dividend
New York, New York – November 8, 2018 – Jerash Holdings (US), Inc. (Nasdaq: JRSH) (the “Company” or “Jerash”), a producer of high-quality textile goods for leading global brands, today reported record results for its fiscal second quarter 2019, ended September 30, 2018. The Company also reaffirmed its full-year revenue forecast of $80 million to $82 million and its outlook for record second half results.
Fiscal Second Quarter 2019 and Recent Highlights:
| · | Revenue increased 21.5% year-over-year to a record $33.5 million in the fiscal second quarter 2019, exceeding guidance of $32 million; |
| · | Reaffirmed the full-year revenue outlook of $80-$82 million, including expected record second half revenue; |
| · | Reported GAAP net income of $4.6 million, or $0.41 per share, including $0.2 million of non-cash stock-based compensation and $1.5 million of income tax reserves; |
| · | Reported adjusted EBITDA of $6.6 million, or $0.59 per share; |
| · | Furthered the Company’s factory expansion program expected to add 8% in annual capacity; |
| · | Worked to advance contract, joint venture and acquisition efforts to add immediate capacity ahead of expected significant increases in customer demand in the next fiscal year; and |
| · | Announced plans to initiate a dividend of $0.20 per share per year, commencing with a $0.05 per share quarterly dividend reflecting the Company’s outlook for strong financial performance and sustainable cash flows from operations. |
Management Commentary
Sam Choi, Chairman and Chief Executive Officer, stated: “As expected, we reported record revenue and strong profitability in the fiscal second quarter. Revenue was a record $33.5 million, exceeding our outlook of $32 million. Additionally, we reported a record $0.59 per share in adjusted EBITDA and generated more than $8.9 million in cash flow from operations. Year-to-date revenue stands at a record $51.8 million, and we expect to build on this with record revenue in the second half as we further increase our warm season production volume with both existing and new customers.
“While we are excited by these record results, we remain focused on creating additional shareholder value through the four pillars of our strategy: continued organic growth, enhanced production efficiency, substantial capacity expansion and the opportunistic acquisition of complementary businesses.
“On organic growth, we are working closely with multiple new and existing customers to increase volumes in our fiscal second half and drive incremental efficiency gains. We are also on track for our internal capacity expansion of 500,000 pieces in early calendar year 2019, an approximately 8% annual increase. We anticipate current customer demand to immediately fill that capacity when it comes on line. Additionally, our multi-color screen printing workshop is coming online by calendar year end, which we believe will open new higher margin business opportunities going forward.
“In order to meet customer demand indications in excess of our expected capacity, we are aggressively advancing our strategic expansion efforts, including the addition of contract and joint venture capacity. Most importantly, we are evaluating strategic acquisition opportunities that would immediately expand our total annual production capacity in Jordan and abroad. We anticipate that as this capacity is added, it will immediately be filled by both existing and new customers proactively seeking to take advantage of Jerash’s high-quality production and tariff-free status.”
Fiscal 2019 Second Quarter Financial Results
Jerash reported record quarterly revenue of $33.5 million for the fiscal second quarter ended September 30, 2018, a 21.5% increase from $27.5 million in the prior year fiscal second quarter. Revenue reflected increased demand from customers seeking to maximize volumes produced by Jerash due to its high-quality production capabilities and tariff-free shipments to the United States and European Union and timing of customer orders. Additionally, the Company expects to increase business activity with warm-weather production customers for the remainder of the fiscal year and expects record second-half fiscal revenues as reflected in its full-year revenue outlook.
Operating expenses were $2.3 million for the fiscal second quarter, compared with $1.5 million in the prior year fiscal second quarter. The increase in ongoing operating expenses reflects increased headcount to support revenue growth, public company operating costs and $0.2 million in stock-based compensation expense. Jerash expects operating expenses to remain approximately stable going forward.
GAAP net income was $4.6 million in the second quarter of fiscal 2019, compared with net income of $5.8 million in the prior year fiscal second quarter. The decrease was primarily due to the addition of tax expense and increased operating expenses and stock-based compensation as a public company.
Jerash reported adjusted EBITDA of $6.6 million, after add back of non-cash stock-based compensation expense, compared with adjusted EBITDA of $6.1 million in the prior year fiscal second quarter. The prior year fiscal second quarter had zero stock-based compensation and income tax expense.
For comparison purposes, on an adjusted basis excluding stock-based compensation and tax expense, Jerash reported adjusted net income of $6.2 million, or $0.56 per share, during the fiscal second quarter of 2019 compared with $5.8 million in the prior year fiscal second quarter, as shown in the reconciliation of non-GAAP financial measures to GAAP financial measures in Appendix A.
Diluted shares outstanding were 11.1 million in the current quarter and 9.6 million in the prior year fiscal second quarter. A reconciliation of GAAP to non-GAAP measures is provided in the tables accompanying this release.
Cash Flow and Balance Sheet
During the fiscal second quarter, Jerash generated $8.9 million in cash flow from operations. Cash and restricted cash at September 30, 2018 was $30.4 million in the aggregate, compared with $16.6 million at June 30, 2018. As of September 30, 2018, inventory was $8.7 million.
Initiates Dividend Program
Jerash announced that its board of directors has approved payment of an annual dividend of $0.20 per share, paid in equal installments quarterly, commencing November 27, 2018 to shareholders of record as of November 19, 2018. The dividend will be funded from cash flow from operations generated by the business.
“We are pleased to commence dividend payments to shareholders, which reflect our strong financial health and expectation of predictable, profitable operations going forward,” said Richard Shaw, Chief Financial Officer of Jerash. “We believe Jerash is well positioned to fully fund this dividend from operating cash flows, as evidenced by our second quarter performance. This enables the Company to execute on its strategic capacity expansion plans while returning a portion of our profitability to stockholders.”
Conference Call
The Company will conduct a conference call and webcast to review its fiscal second quarter 2019 results on Thursday, November 8, 2018 at 10:30 a.m. ET. Interested parties in the United States can access the call by dialing 877-407-8133; interested parties outside the United States can access the call by dialing +1-201-689-8040. Callers should dial in at least 5 minutes prior to the call start time. A live and archived webcast will be available online in the investor relations section of Jerash’s website at www.jerashholdings.com. A replay of the conference call will be available until November 15, by calling 877-481-4010 from the United States or +1-919-882-2331 from outside the United States and entering conference ID number 40306.
About Jerash Holdings (US), Inc.
Jerash Holdings (US), Inc. (Nasdaq: JRSH) is a manufacturer utilized by many well-known brands and retailers, such as Walmart, Costco, Sears, Hanes, Columbia, Land’s End, VF Corporation (which owns brands such as The North Face, Nautica, Timberland, Wrangler, Lee, Jansport, etc.), and Philip-Van Heusen (which owns brands such as Calvin Klein, Tommy Hilfiger, IZOD, Speedo, etc.). Its production facilities are made up of three factory units and two warehouses and currently employ approximately 2,900 people. The total annual capacity at its facilities is approximately 6.5 million pieces. Additional information is available at http://www.jerashholdings.com.
Non-GAAP Financial Information
This news release contains disclosure regarding adjusted net income and adjusted EBITDA, which are determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted net income provides supplemental information that may help investors analyze our net income without regard to the effects of one-time stock-based compensation and a one-time income tax reserve, while adjusted EBITDA may help investors analyze our net income without regard to the effect of one-time stock-based compensation and before the effect of interest expenses, income taxes, and depreciation and amortization. Non-GAAP financial measures have inherent limitations and are not uniformly applied by issuers. Therefore, these non-GAAP financial measures should not be considered in isolation, or as substitutes for comparable measures prepared in accordance with GAAP. The comparable GAAP financial measures and reconciliation to the comparable GAAP financial measures can be found in Appendix A to this document.
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,” “outlook,” “forecast,” “guidance” and similar expressions are intended to identify forward-looking statements. Such statements reflect Jerash’s current views with respect to future events and 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. 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:
Richard J. Shaw, Chief Financial Officer
(315) 727-6791
richard.shaw@jerashholdings.com
Matt Kreps, Darrow Associates Investor Relations
(214) 597-8200
mkreps@darrowir.com
JERASH HOLDINGS (US), INC.,
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| | | September 30, | | | March 31, | |
| | | 2018 | | | 2018 | |
| | | | | | | |
| ASSETS | | | | | | | | |
| Current Assets: | | | | | | | | |
| Cash | | $ | 26,779,644 | | | $ | 8,597,830 | |
| Accounts receivable | | | 15,687,636 | | | | 5,247,090 | |
| Accounts receivable - related party | | | - | | | | 50,027 | |
| Inventories | | | 8,741,996 | | | | 20,293,392 | |
| Prepaid expenses and other current assets | | | 1,065,504 | | | | 1,533,868 | |
| Advance to suppliers | | | 72,100 | | | | 1,128,079 | |
| Total Current Assets | | | 52,346,880 | | | | 36,850,286 | |
| | | | | | | | | |
| Restricted cash | | | 3,681,308 | | | | 3,598,280 | |
| Property, plant and equipment, net | | | 2,863,998 | | | | 2,819,715 | |
| Total Assets | | $ | 58,892,186 | | | $ | 43,268,281 | |
| | | | | | | | | |
| LIABILITIES AND EQUITY | | | | | | | | |
| | | | | | | | | |
| Current Liabilities: | | | | | | | | |
| Credit facilities | | $ | 2,154,756 | | | $ | 980,195 | |
| Accounts payable | | | 1,715,767 | | | | 4,776,812 | |
| Accrued expenses | | | 1,111,544 | | | | 1,175,427 | |
| Income tax payable | | | 1,463,000 | | | | 112,000 | |
| Other payables | | | 1,065,890 | | | | 878,987 | |
| Total Current Liabilities | | | 7,510,957 | | | | 7,923,421 | |
| | | | | | | | | |
| Income tax payable – non-current | | | 1,591,000 | | | | 1,288,000 | |
| Total Liabilities | | | 9,101,957 | | | | 9,211,421 | |
| | | | | | | | | |
| Commitments and Contingencies | | | | | | | | |
| | | | | | | | | |
| Equity | | | | | | | | |
| Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding | | | - | | | | - | |
| Common stock, $0.001 par value; 30,000,000 and 15,000,000 shares authorized; 11,325,000 shares and 9,895,000 shares issued and outstanding as of September 30, 2018 and March 31, 2018, respectively. | | | 11,325 | | | | 9,895 | |
| Additional paid-in capital | | | 14,762,813 | | | | 2,742,158 | |
| Statutory reserve | | | 71,699 | | | | 71,699 | |
| Retained earnings | | | 34,649,535 | | | | 30,948,006 | |
| Accumulated other comprehensive loss | | | (14,875 | ) | | | (24,502 | ) |
| Total Shareholder's Equity | | | 49,480,497 | | | | 33,747,256 | |
| Noncontrolling interest | | | 309,732 | | | | 309,604 | |
| Total Equity | | | 49,790,229 | | | | 34,056,860 | |
| Total Liabilities & Equity | | $ | 58,892,186 | | | $ | 43,268,281 | |
JERASH HOLDINGS (US), INC.,
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
| | | For the Three Months Ended
September 30, | |
| | | 2018 | | | 2017 | |
| | | | | | | |
| Revenue, net | | $ | 33,464,397 | | | $ | 27,549,479 | |
| Cost of goods sold | | | 25,115,416 | | | | 20,334,639 | |
| Gross Profit | | | 8,348,981 | | | | 7,214,840 | |
| | | | | | | | | |
| Selling, general and administrative expenses | | | 2,292,396 | | | | 1,458,097 | |
| (including stock-based compensation of $193,954 and $0 for the three months ended September 30, 2018 and 2017, respectively) | | | | | | | | |
| | | | | | | | | |
| Total Operating Expenses | | | 2,292,396 | | | | 1,458,097 | |
| | | | | | | | | |
| Income from Operations | | | 6,056,585 | | | | 5,756,743 | |
| | | | | | | | | |
| Other Expense: | | | | | | | | |
| Other expense, net | | | 6,832 | | | | 4,612 | |
| Total other income, net | | | 6,832 | | | | 4,612 | |
| | | | | | | | | |
| Net Income before provision for income taxes | | | 6,049,753 | | | | 5,752,131 | |
| | | | | | | | | |
| Income tax expense | | | 1,463,000 | | | | - | |
| | | | | | | | | |
| Net Income | | | 4,586,753 | | | | 5,752,131 | |
| | | | | | | | | |
| Net loss attributable to noncontrolling interest | | | 17 | | | | 1 | |
| Net income attributable to Jerash Holdings (US), Inc.'s Common Shareholders | | $ | 4,586,770 | | | $ | 5,752,132 | |
| | | | | | | | | |
| Net Income | | $ | 4,586,753 | | | $ | 5,752,131 | |
| Other Comprehensive Income: | | | | | | | | |
| Foreign currency translation gain | | | 817 | | | | 45,860 | |
| Total Comprehensive Income | | | 4,587,570 | | | | 5,797,991 | |
| Comprehensive gain (loss) attributable to noncontrolling interest | | | (17 | ) | | | 467 | |
| Comprehensive Income Attributable to Jerash Holdings (US), Inc.'s Common Shareholders | | $ | 4,587,587 | | | $ | 5,797,524 | |
| | | | | | | | | |
| Earnings Per Share Attributable to Common Shareholders: | | | | | | | | |
| Basic | | $ | 0.41 | | | $ | 0.60 | |
| Diluted | | $ | 0.41 | | | $ | 0.60 | |
| Weighted Average Number of Shares: | | | | | | | | |
| Basic | | | 11,074,945 | | | | 9,577,172 | |
| Diluted | | | 11,130,333 | | | | 9,577,172 | |
JERASH HOLDINGS (US), INC.,
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
| | | For the Six Months Ended
September 30, | |
| | | 2018 | | | 2017 | |
| | | | | | | |
| Revenue, net | | $ | 51,827,482 | | | $ | 48,899,637 | |
| Cost of goods sold | | | 38,818,710 | | | | 36,832,253 | |
| Gross Profit | | | 13,008,772 | | | | 12,067,384 | |
| | | | | | | | | |
| Selling, general and administrative expenses | | | 7,477,016 | | | | 2,875,653 | |
| (including stock-based compensation of $3,399,934 and $116,578 for the six months ended September 30, 2018 and 2017, respectively) | | | | | | | | |
| | | | | | | | | |
| Total Operating Expenses | | | 7,477,016 | | | | 2,875,653 | |
| | | | | | | | | |
| Income from Operations | | | 5,531,756 | | | | 9,191,731 | |
| | | | | | | | | |
| Other Expense: | | | | | | | | |
| Other expense, net | | | 1,252 | | | | 10,928 | |
| Total other income, net | | | 1,252 | | | | 10,928 | |
| | | | | | | | | |
| Net Income before provision for income taxes | | | 5,530,504 | | | | 9,180,803 | |
| | | | | | | | | |
| Income tax expense | | | 1,829,000 | | | | - | |
| | | | | | | | | |
| Net Income | | | 3,701,504 | | | | 9,180,803 | |
| | | | | | | | | |
| Net loss attributable to noncontrolling interest | | | 25 | | | | 2,819 | |
| Net income attributable to Jerash Holdings (US), Inc.'s Common Shareholders | | $ | 3,701,529 | | | $ | 9,183,622 | |
| | | | | | | | | |
| Net Income | | $ | 3,701,504 | | | $ | 9,180,803 | |
| Other Comprehensive Income: | | | | | | | | |
| Foreign currency translation gain | | | 9,780 | | | | 23,544 | |
| Total Comprehensive Income (Loss) | | | 3,711,284 | | | | 9,204,347 | |
| Comprehensive gain (loss) attributable to noncontrolling interest | | | 128 | | | | (2,620 | ) |
| Comprehensive Income Attributable to Jerash Holdings (US), Inc.'s Common Shareholders | | $ | 3,711,156 | | | $ | 9,206,967 | |
| | | | | | | | | |
| Earnings Per Share Attributable to Common Shareholders: | | | | | | | | |
| Basic | | $ | 0.33 | | | $ | 0.96 | |
| Diluted | | $ | 0.33 | | | $ | 0.96 | |
| Weighted Average Number of Shares: | | | | | | | | |
| Basic | | | 11,074,945 | | | | 9,577,172 | |
| Diluted | | | 11,130,333 | | | | 9,577,172 | |
JERASH HOLDINGS (US), INC.,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| | | For the Six Months Ended September 30, | |
| | | 2018 | | | 2017 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | |
| Net income | | $ | 3,701,504 | | | $ | 9,180,803 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 653,542 | | | | 588,324 | |
| Stock-based compensation expense | | | 3,399,934 | | | | 116,578 | |
| Income tax paid | | | (175,000 | ) | | | - | |
| Changes in operating assets: | | | | | | | | |
| Accounts receivable | | | (10,435,721 | ) | | | (10,071,211 | ) |
| Accounts receivable- related party | | | 50,040 | | | | (3,757,365 | ) |
| Inventories | | | 11,559,013 | | | | 13,735,903 | |
| Prepaid expenses and other current assets | | | 160,848 | | | | (22,930 | ) |
| Advance to suppliers | | | 1,056,316 | | | | - | |
| Changes in operating liabilities: | | | | | | | | |
| Accounts payable | | | (3,062,764 | ) | | | (7,916,065 | ) |
| Accrued expenses | | | (64,450 | ) | | | (3,028 | ) |
| Other payables | | | 186,427 | | | | (140,258 | ) |
| Income tax payable | | | 1,829,000 | | | | - | |
| Net cash provided by operating activities | | | 8,858,689 | | | | 1,710,751 | |
| | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
| Purchases of property, plant and equipment | | | (716,728 | ) | | | (671,742 | ) |
| Other receivable - related party | | | - | | | | 336,746 | |
| Net cash used in investing activities | | | (716,728 | ) | | | (334,996 | ) |
| | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
| Proceeds from short-term loan | | | 1,173,825 | | | | 350,150 | |
| Due from shareholders | | | - | | | | 692,500 | |
| Net proceeds from private placement | | | - | | | | 1,772,845 | |
| Net proceeds from Common stock | | | 8,930,300 | | | | - | |
| Warrants issued to the underwriter | | | 30 | | | | - | |
| Net cash provided by financing activities | | | 10,104,155 | | | | 2,815,495 | |
| | | | | | | | | |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | | | 18,726 | | | | 5,081 | |
| NET INCREASE IN CASH AND RESTRICTED CASH | | | 18,264,842 | | | | 4,196,331 | |
| CASH AND RESTRICTED CASH, BEGINNING OF THE PERIOD | | | 12,196,110 | | | | 4,132,761 | |
| CASH AND RESTRICTED CASH, END OF THE PERIOD | | $ | 30,460,952 | | | $ | 8,329,092 | |
| CASH AND RESTRICTED CASH, END OF THE PERIOD | | | 30,460,952 | | | | 8,329,092 | |
| LESS: NON-CURRENT RESTRICTED CASH | | | 3,681,308 | | | | 3,476,281 | |
| CASH, END OF PERIOD | | | 26,779,644 | | | | 4,852,811 | |
| | | | | | | | | |
| Non-cash financing activities | | | | | | | | |
| Warrants issued to underwriters in connection with the IPO in fiscal 2019 and the private placement in fiscal 2018 | | $ | 160,732 | | | $ | 161,926 | |
| Prepaid stock issuance cost netted with proceeds from the IPO in fiscal 2019 and the private placement in fiscal 2018 | | $ | 308,179 | | | $ | 239,105 | |
APPENDIX A – Reconciliation of Non-GAAP Financial Measures
JERASH HOLDINGS (US), INC.,
SUBSIDIARIES AND AFFILIATE
RECONCILIATION OF ADJUSTED EBITDA AND PER SHARE AMOUNTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| | | Three Months Ended September, 30 | |
| | | 2018 | | | 2017 | |
| | | | | | | |
| Net income (loss) | | $ | 4,587 | | | $ | 5,752 | |
| | | | | | | | | |
| Income taxes | | | 1,463 | | | | -- | |
| Interest expense | | | 43 | | | | -- | |
| Depreciation and amortization | | | 335 | | | | 300 | |
| Stock-based compensation expense | | | 194 | | | | 0 | |
| | | | | | | | | |
| Adjusted EBITDA | | $ | 6,622 | | | $ | 6,052 | |
| Adjusted EBITDA Per Share | | | | | | | | |
| Basic | | $ | 0.60 | | | $ | 0.63 | |
| Diluted | | $ | 0.59 | | | $ | 0.63 | |
| Weighted Average Number of Shares | | | | | | | | |
| Basic | | | 11,075 | | | | 9,577 | |
| Diluted | | | 11,130 | | | | 9,577 | |
JERASH HOLDINGS (US), INC.,
SUBSIDIARIES AND AFFILIATE
ADJUSTED NET INCOME RECONCILIATION – UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| | | Three Months Ended September 30 | |
| | | 2018 | | | 2017 | |
| | | | | | | |
| Net income (loss) | | $ | 4,587 | | | $ | 5,752 | |
| | | | | | | | | |
| Stock-based compensation expense | | | 194 | | | | -- | |
| Income taxes | | | 1,463 | | | | -- | |
| Amounts before charges | | $ | 6,244 | | | $ | 5,752 | |
| Adjusted Net Income Per Share | | | | | | | | |
| Basic | | $ | 0.56 | | | $ | 0.60 | |
| Diluted | | $ | 0.56 | | | $ | 0.60 | |
| Weighted Average Number of Shares | | | | | | | | |
| Basic | | | 11,075 | | | | 9,577 | |
| Diluted | | | 11,130 | | | | 9,577 | |
APPENDIX A – Reconciliation of Non-GAAP Financial Measures
JERASH HOLDINGS (US), INC.,
SUBSIDIARIES AND AFFILIATE
RECONCILIATION OF ADJUSTED EBITDA AND PER SHARE AMOUNTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| | | Six Months Ended September, 30 | |
| | | 2018 | | | 2017 | |
| | | | | | | |
| Net income (loss) | | $ | 3,702 | | | $ | 9,181 | |
| | | | | | | | | |
| Income taxes | | | 1,829 | | | | -- | |
| Interest expense | | | 86 | | | | -- | |
| Depreciation and amortization | | | 654 | | | | 588 | |
| Stock-based compensation expense | | | 3,400 | | | | 117 | |
| | | | | | | | | |
| Adjusted EBITDA | | $ | 9,671 | | | $ | 9,886 | |
| Adjusted Earnings Per Share | | | | | | | | |
| Basic | | $ | 0.87 | | | $ | 1.03 | |
| Diluted | | $ | 0.87 | | | $ | 1.03 | |
| Weighted Average Number of Shares | | | | | | | | |
| Basic | | | 11,075 | | | | 9,577 | |
| Diluted | | | 11,130 | | | | 9,577 | |
JERASH HOLDINGS (US), INC.,
SUBSIDIARIES AND AFFILIATE
ADJUSTED NET INCOME RECONCILIATION – UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| | | Six Months Ended September 30 | |
| | | 2018 | | | 2017 | |
| | | | | | | |
| Net income (loss) | | $ | 3,702 | | | $ | 9,181 | |
| | | | | | | | | |
| Stock-based compensation expense | | | 3,400 | | | | 117 | |
| Income taxes | | | 1,829 | | | | -- | |
| Amounts before charges | | $ | 8,931 | | | $ | 9,298 | |
| Adjusted Net Income Per Share | | | | | | | | |
| Basic | | $ | 0.81 | | | $ | 0.97 | |
| Diluted | | $ | 0.80 | | | $ | 0.97 | |
| Weighted Average Number of Shares | | | | | | | | |
| Basic | | | 11,075 | | | | 9,577 | |
| Diluted | | | 11,130 | | | | 9,577 | |
JERASH HOLDINGS (US), INC
QUARTERLY HISTORICAL INFORMATION
| | | FY 2019 | |
| | | 1st Qtr | | | 2nd Qtr | | | 3rd Qtr | | | 4th Qtr | | | YTD | |
| $ in 000s | | 6/30/2018A | | | 9/30/2018A | | | 12/31/2018P | | | 3/31/2019P | | | | |
| | | | | | | | | | | | | | | | |
| Revenue | | $ | 18,363 | | | $ | 33,464 | | | $ | - | | | $ | - | | | $ | 51,827 | |
| Cost of revenue | | | 13,703 | | | | 25,115 | | | | - | | | | - | | | | 38,818 | |
| Gross profit | | | 4,660 | | | | 8,349 | | | | - | | | | - | | | | 13,009 | |
| | | | 25.4 | % | | | 24.9 | % | | | | | | | | | | | 25.1 | % |
| Expenses | | | | | | | | | | | | | | | | | | | | |
| Selling, general and administrative expenses | | | 5,185 | | | | 2,292 | | | | - | | | | - | | | | 7,477 | |
| Total operating expenses | | | 5,185 | | | | 2,292 | | | | - | | | | - | | | | 7,477 | |
| | | | | | | | | | | | | | | | | | | | | |
| Profit (loss) from operations | | | (525 | ) | | | 6,057 | | | | - | | | | - | | | | 5,532 | |
| | | | | | | | | | | | | | | | | | | | 10.7 | % |
| Other income (expense) | | | | | | | | | | | | | | | | | | | | |
| Other income (expense) net | | | 6 | | | | (7 | ) | | | - | | | | - | | | | (1 | ) |
| Total other income (expense), net | | | 6 | | | | (7 | ) | | | | | | | | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) before taxes | | | (519 | ) | | | 6,050 | | | | - | | | | - | | | | 5,531 | |
| Income tax (expense) | | | (366 | ) | | | (1,463 | ) | | | - | | | | - | | | | (1,829 | ) |
| Net income (loss) | | $ | (885 | ) | | $ | 4,587 | | | $ | - | | | $ | - | | | $ | 3,702 | |
| Net loss attributable to noncontrolling interest | | | - | | | | - | | | | - | | | | - | | | | - | |
| Net income (loss) attributable to Jerash Holdings (US), Inc.'s Common Shareholders | | $ | (885 | ) | | $ | 4,587 | | | $ | - | | | $ | - | | | $ | 3,702 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | $ | (885 | ) | | $ | 4,587 | | | $ | - | | | $ | - | | | $ | 3,702 | |
| Other Comprehensive Income (Loss) | | | - | | | | - | | | | - | | | | - | | | | - | |
| Foreign currency translation gain (loss) | | | 9 | | | | 1 | | | | - | | | | - | | | | 10 | |
| Total Comprehensive Income (Loss) | | | (876 | ) | | | 4,588 | | | | - | | | | - | | | | 3,712 | |
| Comprehensive (gain) loss attributable to noncontrolling interest | | | - | | | | - | | | | - | | | | - | | | | - | |
| Comprehensive Income (Loss) Attributable to Jerash Holdings (US), Inc.s Common Shareholders | | $ | (876 | ) | | $ | 4,588 | | | $ | - | | | $ | - | | | $ | 3,712 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings (Loss) Per Share Attributable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | (0.08 | ) | | $ | 0.41 | | | | | | | | | | | $ | 0.33 | |
| Diluted | | $ | (0.08 | ) | | $ | 0.41 | | | | | | | | | | | $ | 0.33 | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic Shares Outstanding | | | 10,822 | | | | 11,075 | | | | - | | | | - | | | | - | |
| Diluted Shares Outstanding | | | 10,822 | | | | 11,195 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | $ | (885 | ) | | $ | 4,587 | | | $ | - | | | $ | - | | | $ | 3,702 | |
| Add back stock based compensation | | | 3,206 | | | | 194 | | | | - | | | | - | | | | 3,400 | |
| Add back income taxes | | | 366 | | | | 1,463 | | | | - | | | | - | | | | 1,829 | |
| Adj. Net Income | | $ | 2,687 | | | $ | 6,244 | | | $ | - | | | $ | - | | | $ | 8,931 | |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted Earnings (Loss) Per Share Attributable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.25 | | | $ | 0.56 | | | | | | | | | | | $ | 0.81 | |
| Diluted | | $ | 0.25 | | | $ | 0.56 | | | | | | | | | | | $ | 0.81 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | $ | (885 | ) | | $ | 4,587 | | | $ | - | | | $ | - | | | $ | 3,702 | |
| Add back income taxes | | | 366 | | | | 1,463 | | | | - | | | | - | | | | 1,829 | |
| Add back interest expense | | | 43 | | | | 43 | | | | - | | | | - | | | | 86 | |
| Add back depreciation and amortization | | | 319 | | | | 335 | | | | - | | | | - | | | | 654 | |
| Add back stock based compensation | | | 3,206 | | | | 194 | | | | | | | | | | | | 3,400 | |
| Adjusted EBITDA | | $ | 3,049 | | | | 6,622 | | | | - | | | | - | | | $ | 9,671 | |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted EBITDA Per Share Attributable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.28 | | | $ | 0.60 | | | | | | | | | | | $ | 0.88 | |
| Diluted | | $ | 0.28 | | | $ | 0.59 | | | | | | | | | | | $ | 0.87 | |
JERASH HOLDINGS (US), INC
QUARTERLY HISTORICAL INFORMATION
| | | FY 2018 | |
| | | 1st Qtr | | | 2nd Qtr | | | 3rd Qtr | | | 4th Qtr | | | YTD | |
| $ in 000s | | 6/30/2017A | | | 9/30/2017A | | | 12/31/2017A | | | 3/31/2018A | | | | |
| | | | | | | | | | | | | | | | |
| Revenue | | $ | 21,350 | | | $ | 27,549 | | | $ | 11,544 | | | $ | 8,853 | | | $ | 69,296 | |
| Cost of revenue | | | 16,498 | | | | 20,334 | | | | 7,791 | | | | 6,719 | | | | 51,342 | |
| Gross profit | | | 4,852 | | | | 7,215 | | | | 3,753 | | | | 2,134 | | | | 17,954 | |
| | | | 22.7 | % | | | 26.2 | % | | | 32.5 | % | | | 24.1 | % | | | 25.9 | % |
| Expenses | | | | | | | | | | | | | | | | | | | | |
| Selling, general and administrative expenses | | | 1,417 | | | | 1,458 | | | | 1,558 | | | | 1,686 | | | | 6,119 | |
| Total operating expenses | | | 1,417 | | | | 1,458 | | | | 1,558 | | | | 1,686 | | | | 6,119 | |
| | | | | | | | | | | | | | | | | | | | | |
| Profit (loss) from operations | | | 3,435 | | | | 5,757 | | | | 2,195 | | | | 448 | | | | 11,835 | |
| | | | | | | | | | | | | | | | | | | | 17.1 | % |
| Other income (expense) | | | | | | | | | | | | | | | | | | | | |
| Other income (expense) net | | | (6 | ) | | | (5 | ) | | | 12 | | | | (33 | ) | | | (32 | ) |
| Total other income (expense), net | | | (6 | ) | | | (5 | ) | | | 12 | | | | (33 | ) | | | (32 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) before taxes | | | 3,429 | | | | 5,752 | | | | 2,207 | | | | 415 | | | | 11,803 | |
| Income tax (expense) | | | - | | | | - | | | | - | | | | (1,400 | ) | | | (1,400 | ) |
| Net income (loss) | | $ | 3,429 | | | $ | 5,752 | | | $ | 2,207 | | | $ | (985 | ) | | $ | 10,403 | |
| Net loss attributable to noncontrolling interest | | | 3 | | | | - | | | | - | | | | 4 | | | | 7 | |
| Net income (loss) attributable to Jerash Holdings (US), Inc.'s Common Shareholders | | $ | 3,432 | | | $ | 5,752 | | | $ | 2,207 | | | $ | (981 | ) | | $ | 10,410 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | $ | 3,429 | | | $ | 5,752 | | | $ | 2,207 | | | $ | (985 | ) | | $ | 10,403 | |
| Other Comprehensive Income (Loss) | | | - | | | | - | | | | - | | | | - | | | | - | |
| Foreign currency translation gain (loss) | | | (22 | ) | | | 46 | | | | (54 | ) | | | 14 | | | | (16 | ) |
| Total Comprehensive Income (Loss) | | | 3,407 | | | | 5,798 | | | | 2,153 | | | | (971 | ) | | | 10,387 | |
| Comprehensive (gain) loss attributable to noncontrolling interest | | | 3 | | | | 0 | | | | 1 | | | | 3 | | | | 7 | |
| Comprehensive Income (Loss) Attributable to Jerash Holdings (US), Inc.s Common Shareholders | | $ | 3,410 | | | $ | 5,798 | | | $ | 2,154 | | | $ | (968 | ) | | $ | 10,394 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings (Loss) Per Share Attributable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.37 | | | $ | 0.61 | | | $ | 0.22 | | | $ | (0.10 | ) | | $ | 1.07 | |
| Diluted | | $ | 0.37 | | | $ | 0.61 | | | $ | 0.22 | | | $ | (0.10 | ) | | $ | 1.07 | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic Shares Outstanding | | | 9,315 | | | | 9,577 | | | | 9,684 | | | | 9,736 | | | | 9,736 | |
| Diluted Shares Outstanding | | | 9,315 | | | | 9,577 | | | | 9,684 | | | | 9,736 | | | | 9,736 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | $ | 3,429 | | | $ | 5,752 | | | $ | 2,207 | | | $ | (985 | ) | | $ | 10,403 | |
| Add back stock based compensation | | | 117 | | | | - | | | | - | | | | - | | | | 117 | |
| Add back income taxes | | | - | | | | | | | | | | | | | | | | - | |
| Adj. Net Income | | $ | 3,546 | | | $ | 5,752 | | | $ | 2,207 | | | $ | (985 | ) | | $ | 10,520 | |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted Earnings (Loss) Per Share Attributable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.38 | | | $ | 0.60 | | | $ | 0.23 | | | $ | (0.10 | ) | | $ | 1.08 | |
| Diluted | | $ | 0.38 | | | $ | 0.60 | | | $ | 0.23 | | | $ | (0.10 | ) | | $ | 1.08 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | $ | 3,429 | | | $ | 5,752 | | | $ | 2,207 | | | $ | (985 | ) | | $ | 10,403 | |
| Add back income taxes | | | - | | | | - | | | | - | | | | 1,400 | | | | 1,400 | |
| Add back interest expense | | | - | | | | | | | | 4 | | | | 23 | | | | 27 | |
| Add back depreciation and amortization | | | 288 | | | | 300 | | | | 311 | | | | 318 | | | | 1,217 | |
| Add back stock based compensation | | | 117 | | | | | | | | | | | | | | | | 117 | |
| Adjusted EBITDA | | $ | 3,834 | | | | 6,052 | | | | 2,522 | | | | 756 | | | $ | 13,164 | |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted EBITDA Per Share Attributable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.41 | | | $ | 0.63 | | | $ | 0.26 | | | $ | 0.08 | | | $ | 1.35 | |
| Diluted | | $ | 0.41 | | | $ | 0.63 | | | $ | 0.26 | | | $ | 0.08 | | | $ | 1.35 | |
JERASH HOLDINGS (US), INC
QUARTERLY KEY PERFORMANCE INDICATORS
| | | FY 2019 | |
| | | 1st Qtr | | | 2nd Qtr | | | 3rd Qtr | | | 4th Qtr | | | YTD | |
| | | 6/30/2018A | | | 9/30/2018A | | | 12/31/2018P | | | 3/31/2019P | | | | |
| Gross margin | | | 25.4 | % | | | 24.9 | % | | | | | | | | | | | | |
| Operating margin | | | -2.9 | % | | | 18.1 | % | | | | | | | | | | | | |
| Quarter over Quarter | | | | | | | | | | | | | | | | | | | | |
| Revenue Change % | | | 107.4 | % | | | 82.2 | % | | | | | | | | | | | | |
| | | FY 2018 | |
| | | 1st Qtr | | | 2nd Qtr | | | 3rd Qtr | | | 4th Qtr | | | YTD | |
| | | 6/30/2017A | | | 9/30/2017A | | | 12/31/2017A | | | 3/31/2018A | | | | |
| Gross margin | | | 22.7 | % | | | 26.2 | % | | | 32.5 | % | | | 24.1 | % | | | 25.9 | % |
| Operating margin | | | 16.1 | % | | | 20.9 | % | | | 19.0 | % | | | 5.1 | % | | | 17.1 | % |
| Quarter over Quarter | | | | | | | | | | | | | | | | | | | | |
| Revenue Change % | | | 75.4 | % | | | 29.0 | % | | | -58.1 | % | | | -22.3 | % | | | | |
