Business
Jerash Reports $0.23 GAAP EPS Fiscal Second Quarter, Factories Fully Booked
Expands Annual Capacity Estimate to 12 Million PiecesFAIRFIELD, NJ / ACCESSWIRE / November 12, 2020 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company"
About this update from Jerash Holdings (us), Inc.
[{"type":"text","content":"Expands Annual Capacity Estimate to 12 Million PiecesFAIRFIELD, NJ / ACCESSWIRE / November 12, 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 second quarter of fiscal year 2021, ended September 30, 2020.Second Quarter of Fiscal 2021 and Recent HighlightsReported $27.1 million in revenue, an increase of 45% from $18.7 million in the fiscal first quarter, reflecting rapid reinstatement of customer orders;Increased gross margin to 22%, from 16% in the fiscal first quarter;GAAP net income increased to $2.6 million, or $0.23 per diluted share, compared with net income of $0.8 million, or $0.07 per diluted share in the fiscal first quarter;Further diversified its customer base in both order volume and revenue;Reported factories are fully booked with customer orders through summer 2021;Updated factory capacity to an estimated 12 million pieces per year, reflecting improved productivity and more favorable product mix; andEnded the quarter with cash of $28.1 million and working capital of $51.0 million.Management CommentarySam Choi, Chairman and Chief Executive Officer, stated: \"Our second quarter performance improved sequentially across all of our key operating metrics, leading to quarterly net income of $0.23 per diluted share. Customers have rapidly reinstated orders and fully booked our available manufacturing capacity well into 2021. Increased orders from many of our new customers have also fueled further diversification of our customer and revenue base, a key strategic goal. Additionally, increased productivity and changes in our order mix have expanded Jerash's total annual capacity to an estimated 12 million pieces.\"In addition to the performance of our core garment business, Jerash's PPE (personal protective equipment) business continues to advance. We expanded shipments of both face masks and medical gowns in the third quarter and are currently participating in direct or partnered tenders to supply PPE products to a growing customer list.\"With both our core garment and PPE businesses expanding, we are actively seeking opportunities to further increase our annual capacity, both through contracted capacity and acquisition of additional production assets should a suitable opportunity arise. Our fo...