Jerash Holdings (us), Inc. · NASDAQ:JRSH
Jerash Holdings (us) — Investor Presentation (August 2018)
20 slides from Jerash Holdings (us)'s investor presentation, Aug 16, 2018
Slide 1: Jerash Holdings (US), Inc. Premium Global Textile Manufacturing
JERASH HOLDINGS (US), INC. Premium Global Textile Manufacturing August 2018
Slide 2: Forward-Looking Statements
0 2 FORWARD - LOOKING STATEMENTS This document contains forward - looking statements within the meaning of the U . S . Private Securities Litigation Reform Act of 1995 , including statements relating to earnings expectations . The terms and phrases “commitment”, “guidance”, “expects”, “would”, “will
Slide 3: Why Jerash
Positioned for organic growth from current accounts, maximizing utilization with new customers, and strategic transactions 0 3 WHY JERASH Global manufacturer and exporter of customized, ready - made knit fabric sport and outerwear US & EU tariff - free production facilities in Jordan H istory of gro
Slide 4: Financial Overview
04 FINANCIAL OVERVIEW JERASH HOLDINGS (US), INC. NASDAQ: JRSH Shares Outstanding: 11.3 million Market Cap: (A s of August 11 , 2018) $ 85 . 2 million Insider Ownership: 82% Cash: (At June 3 0 , 2018) $ 16 .6 million Long - term Debt: $0 FY2018 Revenue : $69.3 million, +12% YoY Net Income, EPS : (FY2
Slide 5: Multiple Diverse Growth Drivers
MULTIPLE DIVERSE GROWTH DRIVERS 0 5 Strong organic trend: growing orders from current and new top global brand customers 1 Diversifying customer base and increasing warm weather seasonal line utilization 2 3 Build or buy additional capacity and capabilities: ▪ Line expansion and new capabilities at
Slide 6: Long-Standing Relationships with Top Global Brands
JERASH HAS LONG - STANDING RELATIONSHIPS WITH TOP GLOBAL BRANDS 0 6 Growing demand from global customer base
Slide 7: Large and Untapped Total Addressable Market for U.S. and Global Growth
LARGE AND UNTAPPED TOTAL ADDRESSABLE MARKET FOR U . S AND GLOBAL GROWTH Growing demand from global customer base 0 7
Slide 8: Diversifying Product Offerings
8% PANTS & SHORTS 48% JACKET 0 8 Product sales by type for fiscal year ended 2018 (% of total pieces) DIVERSIFYING PRODUCT OFFERINGS 34% CREW NECKS 10% POLO
Slide 9: Diversifying Product Offerings: Seasonality
0 9 DIVERSIFYING PRODUCT OFFERINGS Seasonality of Products (% of total revenue) 1H 2H 62% 38% 2019E 61% 39% 2017 $ 62,041 $ 69,296 71% 29% 2018 $ 80,000+ 1H 2H
Slide 10: Increasing Production Capacity
10 INCREASING PRODUCTION CAPACITY 2,900 Valued employees 3 Factory Facilities 25% Local Jordanian workers 75% Import labor from Bangladesh, Sri Lanka, India, Myanmar and Nepal Vertically integrated production Cutting and embroidery Administrative and HR Merchandising Finance and management
Slide 11: Increasing Production Capacity: Adding 500,000 Pieces
INCREASING PRODUCTION CAPACITY Adding 500,000 pieces annual capacity: +8% YoY 11 Adding multi - color screen printing shop: Expected higher margin orders
Slide 12: Increasing Production Capacity: Additional Facilities
INCREASING PRODUCTION CAPACITY Seeking additional facilities: Buy vs build Microsites Expanded capabilities: Multicolor screen printing, etc. 12
Slide 13: US QIZ and EU FTA Advantages
13 US QIZ AND EU FTA ADVANTAGES ▪ Established in 2000 under Bill Clinton ▪ Provides for free movement of industrial goods between Jordan and the USA ▪ Saved $18 million in tariffs for The North Face brand in last fiscal year UNITED STATES QUALIF YING INDUSTRIAL ZONE 1 ▪ Established in 2002, updated
Slide 14: Recognized for Global Social Responsibility
RECOGNIZED FOR GLOBAL SOCIAL RESPONSIBILITY 14 ▪ Worldwide Responsible Accredited Production ▪ C - TPAT certified facility ▪ Facility is monitored and supervised by Better Work Jordan, an audit wing of International Labor Organization (ILO) and International Finance Corporation (IFC) for social & et
Slide 15: Proven Financial Results 2015-2018
$42,872 $7,679 $4,721 $4,706 $52,557 $12,645 $9,075 $9,010 $62,041 $15,405 $10,699 $10,649 $69,296 $17,954 $11,835 $11,946 $80,000 - $82,000 ~27% REVENUE (in thousands) GROSS MARGIN OPERATING PROFIT ADJ NET INCOME (Non GAAP) FYE 2015A* FYE 2016A* FYE 2017A* FYE 2018A FYE 2019E (Projected) 15 PROVEN
Slide 16: Proven Growth Drives Profitability
16 PROVEN GROWTH DRIVES PROFITABILITY FY 2016* FY 2017* FY 2018 FY 2019 E 1 FY 2019 YTD Revenue $52,557 $62,041 $69,296 $80,000 - 82,000 $18,363 Gross Profit 24.1% 24.8% 25.9% ~27% 25.4% Selling, General & Admin. $3,570 $4,706 $6,119 $5,185 Operating Income $9,075 $10,698 $11,835 $(525) Tax $0 $0 $1
Slide 17: Reference Financial Results
REFERENCE FINANCIAL RESULTS FY 2018 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD $000's 6/30 9/30 12/31 3/31 Actual Revenue $21,350 $27,549 $11,544 $ 8,853 $69,296 Gross profit 22.7% 26.2% 32.5% 24.1% 25.9% Net Income (Loss) $ 3,429 $ 5,752 $ 2,207 $ (985) $10,403 Adjusted Add back income taxes - - - 1,400 1
Slide 18: Strong Balance Sheet
(in thousands) June 30, 2018 March 31, 2018 Cash and Restricted Cash $16,602 $12,196 Accounts Receivable 13,240 5,297 Inventories 20,007 20,293 Property, Plant & Equipment 2,984 2,820 Total Assets $56,950 $43,268 Credit Facilities $7,060 $980 Accounts Payable 1,134 4,777 Other Long term liabilities
Slide 19: Creating Shareholder Value
1 9 Fully integrated global manufacturer ▪ Comprehensive production capabilities capture value from entire manufacturing chain ▪ Dedicated to high levels of quality control and international manufacturing standards Growth drivers in place ▪ Profitable company with established strong organic growth ▪
Slide 20: Contacts
20 CONTACTS (315) 727 - 6791 richard.shaw@jerashholdings.com RICHARD J. SHAW (214) 597 - 8200 mkreps@darrowir.com MATT KREPS C hief Financial Officer Darrow Associates Investor Relations
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