Jerash Holdings (us), Inc. · NASDAQ:JRSH
Jerash Holdings (us) — Investor Presentation (March 2019)
18 slides from Jerash Holdings (us)'s investor presentation, Mar 1, 2019
Slide 1: Jerash Holdings (US), Inc. Premium Global Garment Manufacturing
JERASH HOLDINGS (US), INC. Premium Global Garment Manufacturing February 201 9
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
WHY JERASH 0 3 ▪ Global manufacturer and exporter of ready - made sport and outerwear garments at facilities located in US & EU tariff - free zones ▪ Established history of growth and profitability ▪ Strong organic trend growing orders from current and new top global brand customers ▪ Diversifying c
Slide 4: Why Jordan
0 4 Stable US ally, central to middle eastern peace More than $1.3 billion in US aid payments annually Global crossroads for highly skilled, low cost imported workforce Favorable trade agreements with US and EU Manufacturing focused national economy Recognized by world - renowned brands and retailer
Slide 5: A Profitable, Growing Business
▪ FY2019 revenue forecast $82M+ 1 ▪ $70.5 million revenue, $5.3M net income, $11.1M Adj EBITDA through first nine months ▪ Multiple new customers ▪ 1.5M+ piece capacity expansion ▪ $0.20 per share annual dividend A PROFITABLE, GROWING BUSINESS ▪ Pay living wage for multinational, long - tenured work
Slide 6: Large and Untapped Addressable Market; Long-Standing Relationships with Top Global Brands
PLUS A LARGE AND UNTAPPED ADDRESSABLE MARKET FOR U . S AND GLOBAL GROWTH Growing demand from global customer base 0 6 JERASH HAS LONG - STANDING RELATIONSHIPS WITH TOP GLOBAL BRANDS
Slide 7: Diversifying Product Offerings
8% PANTS & SHORTS 48% JACKET 0 7 Product sales by type for fiscal year ended 2018 (% of total pieces) DIVERSIFYING PRODUCT OFFERINGS 34% CREW NECKS 10% POLO
Slide 8: US QIZ and EU FTA Advantages
08 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 9: No Tariff Engineering Required
No Tariff Engineering Required ▪ Add a super - thin sheath of fabric to a boot sole to cut a 37.5% tariff on rubber soles to 12.5%. ▪ Add water resistance to a jacket to cut a 27.7% tariff to 7.1%. ▪ Fill a jacket at least 10 percent by weight with down, to get a tariff down to 4.4%. ▪ Produce in co
Slide 10: Rapid Demand Growth Drives Capacity Expansion
10 RAPID DEMAND GROWTH DRIVES CAPACITY EXPANSION 3,000 Valued employees 3 Factory Facilities 25% Local Jordanian workers 75% Import labor from Bangladesh, Sri Lanka, India, Myanmar and Nepal Tariff concerns, labor costs, trade tensions increasing demand from current customers Opened multi - color sc
Slide 11: Jerash 1.5M+ Annual Capacity
JERASH 4 1.5M+ ANNUAL CAPACITY 11 ▪ Acquiring existing factory operation adjacent to current factories ▪ Projected annual capacity of 1.5+ million pieces per year ▪ ~$1 million USD up - front cost ▪ Capacity available April 2019 for 1H FY2020 production ▪ Secured 800,000 pieces in new customer order
Slide 12: Record Nine Months Fiscal 2019 Results
RECORD NINE MONTHS FISCAL 2019 RESULTS 12 ▪ Record $70.5 million revenue, +16.6% year - over - year; increased FY guidance to $82+ million ▪ GAAP net income $5.3 million YTD, $0.47 per share ▪ YTD Includes $3.4 million stock - based compensation expense, $1.3 million of income tax reserves ▪ Adjuste
Slide 13: Proven Financial Results FY2015-2018
$42,872 17.9% $4,710 $5,436 $52,557 24.1% $9,010 $10,019 $62,041 24.8% $10,648 $11,971 $69,296 25.9% $10,403 $13,164 $82,000+ 23 - 24% Revenue (in thousands) Gross Profit Net Income Adj EBITDA (Non GAAP) FYE 2015A* FYE 2016A* FYE 2017A* FYE 2018A FYE 2019E (Projected) 13 PROVEN FINANCIAL RESULTS FY2
Slide 14: Diversifying Product Offerings: Seasonality of Products
14 DIVERSIFYING PRODUCT OFFERINGS Seasonality of Products (% of total revenue) 1H 2H 63% 37% 2019E 61% 39% 2017 $ 62,041 $ 69,296 71% 29% 2018 $ 82,000+ 1 1H 2H 1. Based on company guidance of FY2019 revenue of $82+ million as of February 8, 2018 and is not being confirmed or updated.
Slide 15: 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 1,400
Slide 16: Strong Balance Sheet
(in thousands) Dec 31, 2018 March 31, 2018 Cash and Restricted Cash $30,391 $12,196 Accounts Receivable 13,141 5,297 Inventories 12,121 20,293 Property, Plant & Equipment 2,615 2,820 Total Assets $60,191 $43,268 Credit Facilities $21 $980 Accounts Payable 4,593 4,777 Income Tax Payable 885 879 Total
Slide 17: Creating Shareholder Value
17 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 18: Contacts
18 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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