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Jerash Reports 36% Revenue Growth in Fiscal Third Quarter
GAAP EPS $0.63 Through First 9 Months
New Customers, Capacity Expansion Drive Revenue and Net Income Growth
Fairfield, New Jersey – February 13, 2020 – Jerash Holdings (US), Inc. (Nasdaq: JRSH) (the “Company” or “Jerash”), a producer of high-quality textile goods for leading global brands, today reported results for its fiscal 2020 third quarter, ended December 31, 2019.
Third Quarter Fiscal 2020 and Recent Highlights
|·||Reported $25.4 million third quarter revenue, an increase of 36.2% year-over-year, driven by increased customer order volumes and the addition of new customers;|
|·||Generated quarterly gross margin of 19.3%, up from 17.1% in the prior-year third quarter, as volume and mix continue to improve, in spite of the ongoing absorption of ramp-up costs for the acquired Paramount facility (“Paramount”);|
|·||Reported GAAP net income of $2.1 million, or $0.18 per diluted share, compared with net income of $1.6 million, or $0.14 per diluted share in the prior year quarter;|
|·||Year-to-date Jerash reported $78.6 million in revenue, 21.3% gross margin and $0.63 GAAP EPS, compared with GAAP EPS of $0.47 through the first nine months of fiscal 2019;|
|·||Paramount ramp progressed with over 750 employees now trained and production expected to continue scaling through the remainder of Fiscal 2020; and|
|·||On track to achieve an anticipated 8.0 million pieces in annual capacity with the Paramount factory assets expected to begin contributing to profitability in the fourth quarter of fiscal 2020.|
Sam Choi, Chairman and Chief Executive Officer, stated: “The quarter represented our second year in a row with substantial fiscal third quarter revenue gains as we work to expand second half production and fully utilize our factory capabilities on a year-round basis. In addition to 36% revenue growth, we also increased gross margins due to improved warmer season product mix, helping drive $0.18 per share in GAAP net income for the quarter, and $0.63 per share year-to-date.
“We continue to execute on new customer orders as well as deliver increased volumes to existing customers as Jerash is increasingly recognized for its tariff-advantaged, high-quality global production capabilities. Our 23% capacity expansion via the Paramount asset acquisition is progressing well, with the second wave of new workers now in training. We expect Paramount to be fully staffed by fiscal year end, driving our total annual production capabilities to more than 8 million pieces per year, which we expect to be fully booked going forward. Additionally, we have secured land in Jordan for both dormitory and factory construction to begin in calendar 2020 to ensure we continue to meet the expected rising customer demand in the future.”
Fiscal 2020 Third Quarter Financial Results
For the third fiscal quarter of 2020, Jerash reported total revenue of $25.4 million, an increase of $6.8 million or 36.2% from $18.7 million in the same period in fiscal 2019. The increase in fiscal third quarter sales reflected higher volumes sold to both existing and new customers, as well as increased utilization of the Company’s manufacturing capacity in the second fiscal half as the company continues to deliver on its goal of maximizing factory capacity on a year-round basis.
The following information was filed by Jerash Holdings (JRSH) on Thursday, February 13, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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