FAIRFIELD, NJ / ACCESSWIRE / February 10, 2022 / 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 third quarter, ended December 31, 2021.

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

• Record revenue of $36.8 million, an increase of 78.2 percent.
• Gross profit of $6.9 million, an increase of 186.7 percent.
• Gross margin of 18.8 percent, vs. 11.7 percent.
• Net income of $1.7 million, or $0.13 per diluted share, vs. $94,000, or $0.01 per diluted share.

Fiscal 2022 Fourth Quarter Revenue Guidance

• Fiscal 2022 fourth quarter revenue is expected to be in the range of $29 million to $31 million, vs. $23.8 million in fiscal 2021 fourth quarter.

"Continued strong demand from our global brand customers, along with our expanded manufacturing capacity, resulted in a significantly greater number of shipments during the third quarter," said Sam Choi, Jerash's chairman and chief executive officer. "As a result, we reported record high third quarter revenue, along with sharply increased profitability that, in part, reflected increased orders from higher margin, branded products.

"Our strong performance is also attributable to a loyal, dedicated and highly skilled workforce, including approximately 500 new employees who joined Jerash from our recently acquired operation, MK Garments," said Choi. "It is gratifying that our progress is continuing and highly visible, with our existing factories in Jordan essentially booked through July 2022, and inquiries coming in from new customers that market quality global brands."

Early in the third quarter, Jerash announced it had completed the acquisition of MK Garments, which operates a 71,000 square-foot manufacturing facility. The company assumed production at the facility in August 2021 and retained its employees.

Gilbert Lee, chief financial officer of Jerash, added, "We will continue to explore opportunities to further expand our manufacturing capacity in a prudent and strategic manner, based on commitments for new business from our existing and established customer prospects. Our balance sheet and cash position remain strong, with an added $6.3 million in net proceeds from a public offering of common stock that was completed in October 2021."

Third Quarter Fiscal 2022 Results

Fiscal 2022 third quarter revenue rose 78.2 percent to a record $36.8 million, from $20.7 million in the same period last year, primarily due to higher shipments to the company's two largest customers resulting from stronger demand and expanded capacity.

Gross profit increased 186.7 percent to $6.9 million in the fiscal 2022 third quarter, from $2.4 million in the same period last year. Gross margin expanded 710 basis points to 18.8 percent in the fiscal 2022 third quarter, up from 11.7 percent in the same period last year, reflecting a higher proportion of export sales to global brand customers in the U.S. with higher profit margin.

Operating expenses totaled $4.6 million in the fiscal 2022 third quarter, versus $2.4 million in the same period last year. The increase was primarily due to higher headcount following the completion of the acquisition of MK Garments in October 2021, an increase in stock-based compensation, and recruitment for new migrant workers.

Operating income rose to $2.3 million in the fiscal 2022 third quarter, up from $48,000 in the same period last year. Net income advanced to $1.7 million, or $0.13 per diluted share, in the fiscal 2022 third quarter, growing from $94,000, or $0.01 per diluted share, in the same period last year. Comprehensive income attributable to Jerash's common stockholders increased to $1.7 million in the fiscal 2022 third quarter, from $111,000 in the same period last year.

Balance Sheet, Cash Flow and Dividends

Cash and restricted cash totaled $34.4 million, and net working capital was $57.7 million as of December 31, 2021. Net cash provided by operating activities was approximately $4.4 million for the fiscal 2022 third quarter, compared with $2.0 million for the same period last year.

On February 4, 2022, Jerash approved a regular quarterly dividend of $0.05 per share on its common stock, payable on February 22, 2022, to stockholders of record as of February 15, 2022.

Nine-Month Fiscal 2022 Results

Revenue for the first nine months of fiscal 2022 increased 69.2 percent to $112.4 million, from $66.5 million in the same period last year.

Gross profit doubled to $22.6 million for the first nine months of fiscal 2022, compared with $11.3 million for the same period last year. Gross margin increased 300 basis points to 20.1 percent for the first nine months of fiscal 2022, up from 17.1 percent in the same period last year.

Operating expenses for the fiscal 2022 year-to-date period was $12.4 million, compared with $7.1 million for the same period last year. Operating income rose to $10.2 million for the fiscal 2022 year-to-date period, or 9.1 percent of revenue, compared with $4.2 million, or 6.4 percent of revenue, for the same period last year.

Net income for the first nine months of fiscal 2022 advanced to $8.0 million, or $0.69 per diluted share, up from $3.5 million, or $0.31 per diluted share, in the same period last year. Comprehensive income attributable to Jerash's common stockholders increased 134.5 percent to $8.2 million in the first nine months of fiscal 2022, compared with $3.5 million in the same period last year.

Conference Call

Jerash will host an investor conference call to discuss its fiscal 2022 third quarter results today, February 10, 2022, at 9:00 a.m. Eastern Time.

Phone: 877-545-0320 (domestic); 973-528-0002 (international)

Conference ID: 479811

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, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and JanSport), New Balance, G-III (which owns brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle, Walmart and Costco. Jerash's existing production facilities comprise six factory units and four warehouses, and Jerash currently employs approximately 5,500 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, 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