FAIRFIELD, NJ / ACCESSWIRE / November 10, 2021 / Jerash Holdings (US), Inc. ("Jerash") (NASDAQ:JRSH), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2022 second quarter, ended September 30, 2021.

Financial Highlights - Fiscal 2022 Second Quarter Versus Fiscal 2021 Second Quarter

• Revenue of $45.7 million, an increase of 68.8 percent, reflecting higher shipments
• Gross profit of $10.1 million, an increase of 71.8 percent, due to higher revenue and gross margin
• Gross margin of 22.1 percent versus 21.7 percent, reflecting improved product mix and higher sales volumes
• Comprehensive income attributable to Jerash's common stockholders of $4.4 million, or $0.39 per share, vs. $2.6 million, or $0.23 per share

Fiscal 2022 Guidance

• Fiscal 2022 revenue expected to be in the range of $125 million to $130 million versus $90.2 million in fiscal 2021
• Revenue in fiscal 2022 expected to be at record levels
• Fiscal 2022 third quarter revenue expected to be in the range of $31 million to $33 million

Sam Choi, chairman and chief executive officer, said, "Our fiscal 2022 second quarter results demonstrated continued strong progress, with robust performance in revenue and margin. Revenue and gross profit were at record levels for the second quarter, reflecting an increase in shipments to our largest customers as a result of strong demand and expanded capacity, as well as an improved mix of products sold.

"We continue to advance our plans to increase capacity and secure additional space to meet our customers' needs," Choi said. "We anticipate the momentum to continue into fiscal 2023. All of our existing factories in Jordan are fully booked through May 2022, with orders from existing top global brand-name customers. As a result, we have increased our fiscal 2022 revenue outlook to reflect the robust momentum and expanded capacity."

Fiscal 2022 Second Quarter Results

Fiscal 2022 second quarter revenue rose 68.8 percent to a record $45.7 million from $27.1 million in the same period last year, primarily due to higher shipments to the company's largest customers as a result of stronger demand and expanded capacity.

Gross profit increased to $10.1 million in the fiscal 2022 second quarter, from $5.9 million in the same period last year, primarily due to higher revenue and gross margin. Gross margin expanded 40 basis points to 22.1 percent in the fiscal 2022 second quarter, from 21.7 percent in the same period last year, reflecting an improved product mix and higher sales volumes.

Operating expenses totaled $4.5 million in the fiscal 2022 second quarter, versus $2.9 million in the same period last year. The increase was primarily due to higher headcount to support the company's growth, an increase in shipping costs, stock-based compensation, and expenses related to COVID-19 measures and recruitment for new migrant workers.

Operating income rose to $5.6 million in the fiscal 2022 second quarter, from $3.0 million in the same period last year. Net income advanced to $4.4 million in the fiscal 2022 second quarter, from $2.6 million in the same period last year. Comprehensive income attributable to Jerash's common stockholders increased to $4.4 million, or $0.39 per share, in the fiscal 2022 second quarter, from $2.6 million, or $0.23 per share, in the same period last year.

Gilbert Lee, chief financial officer, said, "Our updated outlook for the remainder of this fiscal year reflects our expectation for continued strong customer demand and increased capacity with orders reflective of typical customer patterns. However, it is important to note that potential risks from supply chain issues that some of our customers are facing could affect the timing of shipments in the near term."

Cash and restricted cash totaled $26.3 million, and net working capital was $54.3 million at September 30, 2021. Net cash provided by operating activities was $21.7 million in the fiscal 2022 second quarter, compared with $9.3 million in the same period last year. The increase was primarily due to changes in working capital.

On November 2, 2021, Jerash approved a regular quarterly dividend of $0.05 per share on its common stock, payable on November 29, 2021, to stockholders of record as of November 22, 2021.

On October 4, 2021, Jerash completed a public offering of 1.4 million shares of common stock at a price of $7.00 per share, which included 1.0 million shares issued and sold by the company and 400,000 shares sold by a selling shareholder. Jerash received net proceeds of approximately $6.25 million from the offering, after deducting the underwriting discount and estimated offering expenses payable by the company.

On October 11, 2021, Jerash completed the acquisition of Mustafa and Kamal Ashraf Trading Company (Jordan) for Manufacture of Ready-Made Clothes LLC ("MK Garments"), which operates a 71,000 square-foot apparel manufacturing facility. Jerash assumed production at the MK Garments facility and retained its 500 employees in August 2021.

Conference Call

Jerash will host an investor conference call to discuss its fiscal 2022 second quarter results tomorrow, November 11, 2021, at 9:00 a.m. Eastern Time.

Phone: 888-506-0062 (domestic); 973-528-0011 (international)
Conference ID: 470920

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 Holdings (US), Inc. manufactures and exports custom, ready-made, sportwear and outerwear for leading global brands and retailers, including Walmart, Costco, New Balance, G-III (which owns brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle, and VF Corporation (which owns brands such as The North Face, Timberland, and JanSport). Jerash's existing production facilities comprise six factory units and four warehouses. Jerash currently employs approximately 5,100 people, and the total annual capacity at its facilities is approximately 15 million pieces. 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, 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

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SOURCE: Jerash Holdings (US), Inc.