Jerash Holdings Reports Results for Fiscal 2023 Third QuarterFebruary 13, 2023 at 08:00 AM EST
Revenue Increases 17 Percent to $43 Million FAIRFIELD, NJ / ACCESSWIRE / February 13, 2023 / 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 2023 third quarter, ended December 31, 2022. Third Quarter Fiscal 2023 Results Fiscal 2023 third quarter revenue increased by 16.9 percent to a record $43.0 million, from $36.8 million in the same period last year, primarily due to increases in sales to customers in Hong Kong, Jordan, and other locations. Gross profit for the fiscal 2023 third quarter was $5.8 million, compared with $6.9 million in the same quarter last year. Gross margin was 13.5 percent in the fiscal year 2023 third quarter, compared with 18.8 percent in the same quarter last year. The decrease in gross margin was primarily driven by the lower proportion of export orders to two major customers in the U.S. that typically generate higher margins. Operating expenses totaled $4.5 million in the fiscal year 2023 third quarter, compared with $4.5 million in the same quarter last year. Operating income totaled $1.3 million in the fiscal year 2023 third quarter, versus $2.4 million in the same period last year. Total other expenses were $111,000 in the fiscal year 2023 third quarter, compared with $80,000 in the same quarter last year. Interest expenses were $249,000 in the fiscal year 2023 third quarter, versus $73,000 in the same quarter last year. Net income was $0.9 million in the fiscal year 2023 third quarter, or $0.07 per diluted share, versus $1.7 million, or $0.13 per diluted share, in the same period last year. Fiscal 2023 Fourth Quarter Outlook
"Our fiscal third quarter performance demonstrated the company's ability to navigate through continued challenging market conditions in the broad retail sector," said Sam Choi, Jerash's chairman and chief executive officer. "As previously communicated, fiscal 2023 is a transitional and opportunistic year for Jerash, as we continue our initiative to diversify our customer base and product mix. "Our plans to form a joint venture with Busana Apparel Group ("Busana") are progressing well. We anticipate launching the venture early in our new fiscal year, giving us additional opportunities to serve Busana's global branded customers that have expressed interest in shifting their production from Southeast Asia to Jordan. "We also are successfully beginning to ramp up production on orders from new customers, including Timberland and Skechers. Test runs for our first European-based, high-end apparel brand have been well received, with initial shipments to begin soon," Choi added. "During this timeframe, our larger, U.S.-based global branded customers have been placing smaller orders, reflecting the current economic environment," said Gilbert Lee, chief financial officer of Jerash. "Nevertheless, we are maintaining our full staff and keeping our facilities running at full capacity by adding supplementary production of lower-margin products for other customers. "Additionally, we are able to achieve essentially the same level of business for the full 2023 fiscal year versus fiscal 2022, which experienced the highest growth rate in the company's history. We continue to attract new global brands and work closely with our existing long-term customers to be ready for anticipated growth in fiscal 2024," Lee said. Balance Sheet, Cash Flow and Dividends Cash and restricted cash totaled $26.2 million, and net working capital was $47.1 million as of December 31, 2022. Net cash provided by operating activities was approximately $9.9 million for the nine months ended of fiscal 2023, compared with $14.6 million for the same period last year. On February 3, 2023, Jerash approved a regular quarterly dividend of $0.05 per share on its common stock, payable on February 21, 2023, to stockholders of record as of February 14, 2023. Share Repurchase Program On June 13, 2022, the Company authorized a $3.0 million share repurchase program. The share repurchase program will be in effect through March 31, 2023. As of December 31, 2022, 156,593 shares had been repurchased at market rates with a total price of $771,894, excluding broker commissions. Nine-Month Fiscal 2023 Results Revenue for the first nine months of fiscal 2023 was $114.3 million, compared with $112.4 million in the same period last year. Gross margin for the first nine months of fiscal 2023 was 16.9 percent, compared with 20.1 percent in the same period last year. The decrease in gross profit margin was primarily driven by a lower proportion of export orders to the U.S. that typically generate higher gross margins. Operating expenses for the fiscal 2023 year-to-date period were $13.1 million, compared with $12.3 million for the same period last year. Operating income was $6.2 million for the fiscal 2023 year-to-date period, compared with $10.4 million for the same period last year. Net income for the first nine months of fiscal 2023 was $4.4 million, or $0.35 per diluted share, compared with $8.1 million, or $0.69 per diluted share, in the same period last year. Comprehensive income attributable to Jerash's common stockholders was $4.1 million in the first nine months of fiscal 2023, which included a foreign currency translation loss of $296,000, compared with $8.2 million in the same period last year, which included a foreign currency translation gain of $122,000. Conference Call Jerash will host an investor conference call to discuss its fiscal 2023 third quarter results today, February 13, 2023, at 9:00 a.m. Eastern Time. Phone: 877-545-0323 (domestic); 973-528-0016 (international) Conference ID: 242313 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 Vans), New Balance, G-III (which owns 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, 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. (tables below) JERASH HOLDINGS (US), INC., AND SUBSIDIARIES
JERASH HOLDINGS (US), INC., AND SUBSIDIARIES
JERASH HOLDINGS (US), INC., AND SUBSIDIARIES
SOURCE: Jerash Holdings (US), Inc. View source version on accesswire.com: https://www.accesswire.com/739014/Jerash-Holdings-Reports-Results-for-Fiscal-2023-Third-Quarter 
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions. |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fat Pitch Financials
Special situation stocks and value investing