In This Article:
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Revenue: Increased 17.8% to $40.9 million from $34.7 million year-over-year.
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Gross Profit: $4.6 million, down from $5.6 million in the same quarter last year.
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Gross Margin: Decreased to 11.3% from 16.0% in the prior year.
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Operating Expenses: $5.5 million, up from $4.5 million year-over-year.
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SG&A Expenses: Increased 18% to $5.0 million from $4.2 million in the previous year.
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Net Loss: $1.4 million or $0.11 per share, compared to net income of $495,000 or $0.04 per share last year.
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Cash and Restricted Cash: $13 million as of June 30, 2024.
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Net Working Capital: $34.5 million.
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Inventory: $20.7 million.
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Accounts Receivables: $9.4 million.
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Net Cash Used in Operating Activities: Approximately $2.2 million for the quarter.
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Dividend: $0.05 per share, payable on August 23, 2024.
Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Jerash Holdings (US) Inc (NASDAQ:JRSH) reported a 17.8% increase in revenue for the fiscal 2025 first-quarter, reaching $40.9 million.
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The company is experiencing good growth with manufacturing facilities operating at full capacity and orders fully booked through December.
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Jerash Holdings (US) Inc (NASDAQ:JRSH) is receiving additional trial orders from major brands, indicating successful diversification of its customer base.
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The company anticipates a 20% to 25% revenue growth for the full year 2025, with strong order inflow expected in the second half.
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Contingency plans are in place to minimize disruptions due to regional instability, ensuring operational stability.
Negative Points
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Gross margin decreased to 11.3% from 16.0% in the same period last year, primarily due to higher raw material import costs and additional manufacturing expenses.
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The company reported a net loss of $1.4 million or $0.11 per share in the fiscal 2025 first-quarter, compared to a net income of $495,000 in the same period last year.
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Operating expenses increased to $5.5 million from $4.5 million in the same quarter last year, driven by higher logistics and labor costs.
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Supply chain disruptions led to significant added costs, including $300,000 in airfreight expenses to catch up on delayed deliveries.
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Interest expenses increased due to the supply chain financing program, reflecting higher costs associated with maintaining cash flow.
Q & A Highlights
Q: Can you explain the increase in revenue guidance from 15%-18% to 20%-25% for the full year? A: Gilbert Lee, CFO, explained that the revenue increase is expected more in the second half of the year. The first quarter already achieved a record, and the second quarter is strong. The third and fourth quarters are anticipated to be on par with the first half due to strong orders, with factories fully booked through December 2024. The growth is attributed to new customers placing regular orders after trial orders in previous years.