Jerash Holdings (us), Inc. · NASDAQ:JRSH
Jerash Holdings (us) — Investor Presentation (July 2019)
16 slides from Jerash Holdings (us)'s investor presentation, Jul 8, 2019
Slide 1: Jerash Holdings (US), Inc. Premium Global Garment Manufacturing
JERASH HOLDINGS (US), INC. Premium Global Garment Manufacturing July 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 sport and outerwear garments at facilities located in US & EU tariff - free zones ▪ Proven profitability and cash flows ▪ G rowing revenue from 19 top global brand customers ▪ Diversifying customer base and increasing warm weather seasonal line ut
Slide 4: A Profitable, Growing Business / Socially Responsible Partner
▪ FY2019 revenue $85M ▪ $5.1M net income, $0.45 EPS ▪ $11.3M Adj EBITDA, $1.01 per share 1 ▪ $0.20 per share annual dividend ▪ Multiple new customers ▪ 1.5M+ piece capacity expansion A PROFITABLE, GROWING BUSINESS ▪ Living wage for multinational workforce ▪ Highly credentialed workplace ▪ Recognized
Slide 5: Why Jordan
0 5 ▪ Stable US ally, central to middle eastern peace ▪ Favorable trade agreements with US and EU ▪ Low - cost, high - quality manufacturing focused national economy ▪ Global crossroads for highly skilled, affordable imported workforce ▪ Recognized by world - renowned brands and retailers WHY JORDAN
Slide 6: 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
16% CREW NECKS 25% POLO 7% PANTS & SHORTS 52% JACKET 0 7 Product sales by type for fiscal year ended 2019 (% of total pieces) DIVERSIFYING PRODUCT OFFERINGS
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: Demand Drives Capacity Expansion
10 DEMAND DRIVES CAPACITY EXPANSION 3,600 Valued employees 4 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 Expected to achieve 8M+ pieces annua
Slide 11: Jerash 1.5M+ Annual Capacity
JERASH 4 1.5M+ ANNUAL CAPACITY 11 ▪ Acquired existing factory operation adjacent to current factories ▪ Projected base capacity of 1.5 - 1.8 million pieces per year; up to 3M at full ramp ▪ ~$1 million USD up - front cost ▪ Commenced production April 2019 with ~500 workers ▪ 800,000 pieces in new cu
Slide 12: Proven Financial Results
Revenue (in thousands) Gross Profit Net Income Adj EBITDA (Non GAAP) FY 2015A* FY 2016A* FY 2017A* FY 2018A FY 2019A FY 2020E (Projected) 12 PROVEN FINANCIAL RESULTS 1 . Outlook provided June 28, 2019 and not being updated or revised at this time. 2. Adjusted EBITDA is not a United States generally
Slide 13: Diversifying Product Offerings: Seasonality
13 DIVERSIFYING PRODUCT OFFERINGS Seasonality of Products (% of total revenue) 1H 2H 61% 39% 2019 61% 39% 2017 $ 62,041 $ 69,296 71% 29% 2018 $ 85,000 1H 2H
Slide 14: Reference Financial Results
REFERENCE FINANCIAL RESULTS FY 2018 $000's 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Annual 6/30 9/30 12/31 3/31 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 Add
Slide 15: Strong Balance Sheet
(in thousands) Mar 31, 2019 March 31, 2018 Cash and Restricted Cash $27,834 $12,196 Accounts Receivable 4,020 5,297 Inventories 21,074 20,293 Property, Plant & Equipment 2,356 2,820 Total Assets $59,251 $43,268 Credit Facilities $649 $980 Accounts Payable 3,378 4,777 Income Tax Payable 1,164 879 Tot
Slide 16: Record FY2019 Results and Contacts
Nasdaq: JRSH 16 Record FY2019 Results ▪ Record $85.0 million revenue, +23% year - over - year ▪ GAAP net income $5.1 million, $0.45 per share ▪ Adjusted EBITDA of $11.3 million, $1.01 per share ▪ Expected $0.20 per share annual dividend ▪ Expanding capacity to drive growth in FY2020 ▪ FY2020 revenue
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