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Ever-Glory Reports Third Quarter 2015 Financial Results

Add: 2015   Update: 2015/11/13

NANJING, China, Nov. 13, 2015 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (NASDAQ-GM: EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider based in China, today reported its financial results for the third quarter ended September 30, 2015.

Total sales for the quarter were $118.6 million, a decrease of 15.3% compared to $139.9 million in the third quarter of last year. This decrease was primarily due to a 21.1% decreased sales in our retail business and a 10.9% decreased sales in our wholesale business.

For the third quarter of 2015, retail sales from the Company's branded fashion apparel retail division, decreased 21.1% to $47.3 million compared to $59.9 million last year. This decrease was primarily due to the decrease in same store sales. We had 1,188 retail stores as of September 30, 2015, compared to 1,137 retail stores at September 30, 2014.

For the third quarter of 2015, wholesale sales decreased 10.9% to $71.3 million, compared to $80.1 million last year. This decrease was primarily due to decreased sales in P.R.C, Germany, Europe-Other and Japan.

Total gross profit for the quarter decreased 4.4% to $32.3 million, compared to $33.8 million last year. Total gross margin increased 310 basis points to 27.3% compared to 24.2% last year.

Gross profit for retail business increased 3.6% to $22.4 million, compared to $21.7 million last year. Gross margin increased 1130 basis points to 47.5% compared to 36.2% last year.

Gross profit for wholesale business decreased 18.6% to $9.9 million, compared to $12.2 million last year. Gross margin decreased 130 basis points to 13.9% compared to 15.2% last year.

Selling expenses for the quarter increased 7.8% to $19.2 million compared to $17.8 million last year. As a percentage of sales, selling expenses increased 350 basis points to 16.2% compared to 12.7% last year.

General and administrative expenses for the quarter decreased 3.8% to $9.3 million compared to $9.7 million last year. As a percentage of total sales, general and administrative expenses increased 100 basis points to 7.9% compared to 6.9% last year.

Income from operations for the quarter decreased 39.8% to $3.8 million compared to $6.3 million last year. As a percentage of sales, income from operations decreased 130 basis points to 3.2% compared to 4.5% last year.

Net income for the quarter decreased 47.0% to $2.7 million compared to $5.1 million last year. Basic and diluted earnings per share were $0.19 and $0.35 for the three months ended September30, 2015 and 2014, respectively.

Balance Sheet and Cash Flow

As of September 30, 2015, Ever-Glory had approximately $26.9 million of cash and cash equivalents, compared to approximately $34.1 million as of December 31, 2014. Ever-Glory had working capital of approximately $50.2 million as of September 30, 2015, and outstanding bank loans of approximately $51.3 million as of September 30, 2015.

About Ever-Glory International Group,Inc.

Based in Nanjing, China, Ever-Glory International Group, Inc. is a retailer of branded fashion apparel and a leading global apparel supply chain solution provider. Ever-Glory is the first Chinese apparel Company listed on the American Stock Exchange (now named as NYSE MKT) in July 2008 and then transferred to The NASDAQ Global Market on December 31, 2014. Ever-Glory offers apparel to woman under its own brands "La go go", "Velwin" ,"Sea To Sky" and "idole" in China. Ever-Glory is also a leading global apparel supply chain solution provider with a focus on middle-to-high end casual wear, outerwear, and sportswear brands. Ever-Glory services a number of well-known brands and retail stores by providing a complete set of services of supply chain management on fabric development and design, sampling, sourcing, quality control, manufacturing, logistics, customs clearance and distribution etc.

Conference Call

The Company will hold a conference call today at 8:00 a.m. Eastern Time which will be hosted by Jason Jiansong Wang, Chief Financial Officer. Listeners can access the conference call by dialing # 1-719-325-2144 and referring to the confirmation code 4060101. The conference call will also be broadcast live over the Internet and can be accessed at the Company's web site at the following URL: http://www.everglorygroup.com.

A replay of the call will be available from 11:00 a.m. November 13, 2015 through November 20, 2015 Eastern Time by calling # 1-858-384-5517; pin number: 4060101.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this release and other written or oral statements made by or on behalf of Ever-Glory International Group, Inc. (the "Company") are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and the Company's future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including, without limitation, market acceptance of the Company's products and offerings, development and expansion of the Company's wholesale and retail operations, the Company's continued access to capital, currency exchange rate fluctuation and other risks and uncertainties. The actual results the Company achieves (including, without limitation, the results stemming from the future implementation of the Company's strategies and the revenue, net income and new retail store projections set forth herein) may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties (many of which are beyond the Company's control). These statements are based on management's current expectations and speak only as of the date of such statements. Readers should carefully review the risks and uncertainties described in the Company's latest Annual Report on Form 10-K and other documents that the Company files from time to time with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014 (UNAUDITED)

 


 

 

Three months ended



Nine months ended




September 30,



September 30,




2015



2014



2015



2014


NET SALES


$

118,601,207



$

139,949,325



$

292,231,167



$

331,632,274


COST OF SALES



86,258,066




106,118,870




199,232,245




242,671,071



















GROSS PROFIT



32,343,141




33,830,455




92,998,922




88,961,203



















OPERATING EXPENSES

















Selling expenses



19,198,576




17,806,645




57,036,328




48,332,603


General and administrative expenses



9,335,443




9,699,667




23,855,462




23,634,073


Total Operating Expenses



28,534,019




27,506,312




80,891,700




71,966,676



















INCOME FROM OPERATIONS



3,809,122




6,324,143




12,107,222




16,994,527



















OTHER INCOME (EXPENSES)

















Interest income



212,134




327,031




750,889




904,778


Interest expense



(571,883)




(914,480)




(2,064,170)




(2,396,288)


Other income



341,182




1,006,019




1,113,879




1,918,242


Total Other Income (Expenses)



(18,567)




418,570




(199,402)




426,732



















INCOME BEFORE INCOME TAX EXPENSE



3,790,555




6,742,713




11,907,820




17,421,259


Income tax expense



(1,065,946)




(1,606,015)




(3,269,910)




(4,364,689)



















NET INCOME



2,724,609




5,136,698




8,637,910




13,056,570



















Net loss attributable to the non-controlling interest



86,751




-




167,145




-


NET INCOME ATTRIBUTABLE TO THE COMPANY



2,811,360




5,136,698




8,805,055




13,056,570



















NET INCOME


$

2,724,609



$

5,136,698



$

8,637,910



$

13,056,570



















Foreign currency translation loss



(3,265,584)




(121,307)




(2,936,691)




(464,689)


COMPREHENSIVE (LOSS) INCOME



(540,975)




5,015,391




5,701,219




12,591,881



















Comprehensive loss attributable to the non-controlling interest



89,528




-




170,088




-


COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY


$

(451,447)



$

5,015,391



$

5,871,307



$

12,591,881



















EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY'S STOCKHOLDERS

















Basic and diluted


$

0.19



$

0.35



$

0.60



$

0.88


Weighted average number of shares outstanding

















Basic and diluted



14,785,309




14,782,668




14,784,503




14,781,722