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Ever-Glory Reports First Quarter 2018 Financial Resultsnew

Add: 2018   Update: 2018/05/15

 

Ever-Glory Reports F Quarter 2018 Financial Results
 
NANJING, China, May 15, 2018 /PRNewswire/ -- Ever-Glory International Group, Inc. (the “Company” or “Ever-Glory”) (NASDAQ: EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider, today reported its financial results for the first quarter ended March 31, 2018.First Quarter 2018 Financial Results
Total sales for the first quarter of 2018 were $92.8 million, an increase of 9.0% from $85.1 million in the first quarter of 2017. This increase was primarily driven by an 18.9% increase in our retail business, partially offset by a 10.8% decrease in wholesale business.
Sales for the Company’s branded fashion apparel retail division increased by % to $million for the first quarter of 2018, compared with $million for the first quarter of 2017. This increase was primarily due to an increase in same-store sales. The Company had retail stores as of March 31, 2018, compared with retail stores as of March 31, 2017.
Salesfor the Company’s wholesale divisioncreased by % to $million for the first quarter of 2018, compared with     $million for the first quarter of 2017. This was primarily attributable to decreased sales in Mainland China, Germany, the United Kingdom, other European markets and Hong Kong, partially offset for increased sales in the United States and Japan.
Total gross profit for the first quarter of 2018 creased by% to $million, compared with $million for the first quarter of 2017. Total gross margin increased to % from % for the first quarter of 2017.
Gross profit for the retail business increased by % to $million for the first quarter of 2018, compared with $million for the first quarter of 2017. Gross margin was %, compared to% for the first quarter of 2017.
Gross profitfor the wholesale business by % to $million for the first quarter of 2018, compared with $million for the first quarter of 2017. Gross margin creased to % from % for the first quarter of 2017.Selling expenses for the first quarter of 2018 increased by % to $million, or % of total sales, compared with $million, or % of total salesfor the first quarter of 2017. The increase was attributable to the increased store decoration and marketing expenses.
General and administrative expenses for the first quarter of 2018 creased by 5.8% to $million, or % of total sales,compared with $million, or % of total salesfor the first quarter of 2017. The increase was mainly attributable to the increased average salaries.
Income from operations for the first quarter of 2018 decreased by 4.2% to $ million compared with $ million for the first quarter of 2017.
Net income attributablefor the first quarter of 2018 million compared with million for the first quarter of 2017. Basic and diluted earnings per share were $0.06 for the first quarter of 2018 compared with basic and diluted earnings per share of $0.07 for the first quarter of 2017.
Balance Sheet
As of March 31, 2018, Ever-Glory had approximately $million of cash and cash equivalents, compared with approximately $million as of December 31, 2017. Ever-Glory had working capital of approximately $million as of March 31, 2018, and outstanding bank loans of approximately $ million as of March 31, 2018.
Conference Call
The Company will hold a conference call at 8:00 a.m. Eastern Time on May 15, 2018(8:00 p.m. Beijing Time on May 15, 2018). Listeners can access the conference call by dialing +1-800-289-0438 or + 1-323-794-2423 and using the access code 2785487. The conference call will also be webcast live over the Internet and can be accessed at the Company’s website at http://www.everglorygroup.com.
A replay of the conference call will be available from 11:00 a.m. Eastern Time on May 15 through 11:59 p.m. Eastern Time on May 22, by dialing +1-844-512-2921 or +1-412-317-6671 and using the access code 2785487.
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, 2015. Ever-Glory offers apparel to woman in China under its own brands “La go go”, “Velwin”, “Sea To Sky” and “idole”. 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 supply chain management services, including: fabric development and design, sampling, sourcing, quality control, manufacturing, logistics, customs clearance and distribution.
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.
For investor and media inquiries, please contact:
 
Ever-Glory International Group
Dandan Song
Tel: +86-25-5209-6817
E-Mail: sdd@ever-glory.com.cn
 
The Piacente Group, Inc.
Emilie Wu
China: +86-10-5730-6200
US: +1-212-481-2050
E-Mail: everglory@tpg-ir.com
 
     
 
EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. Dollars, except share and per share data or otherwise stated)
AS OF MARCH 31, 2018 (UNAUDITED) AND DECEMBER 31, 2017
 

 
 
2018
 
 
2017
 
ASSETS
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
Cash and cash equivalents
 
$
65,177
 
 
$
62,876
 
Accounts receivable, net
 
 
55,682
 
 
 
81,859
 
Inventories
 
 
56,598
 
 
 
56,182
 
Value added tax receivable
 
 
1,976
 
 
 
3,757
 
Other receivables and prepaid expenses
 
 
4,725
 
 
 
5,139
 
Advances on inventory purchases
 
 
4,320
 
 
 
3,028
 
Amounts due from related parties
 
 
248
 
 
 
265
 
Total Current Assets
 
 
188,726
 
 
 
213,106
 
 
 
 
 
 
 
 
 
 
INTANGIBLE ASSETS
 
 
6,616
 
 
 
5,995
 
PROPERTY AND EQUIPMENT, NET
 
 
26,172
 
 
 
25,891
 
TOTAL ASSETS
 
$
221,514
 
 
$
244,992
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
Bank loans
 
$
41,620
 
 
$
37,730
 
Accounts payable
 
 
58,191
 
 
 
73,788
 
Accounts payable and other payables - related parties
 
 
4,052
 
 
 
4,675
 
Other payables and accrued liabilities
 
 
11,793
 
 
 
16,454
 
Value added and other taxes payable
 
 
4,352
 
 
 
6,052
 
Income tax payable
 
 
1,005
 
 
 
1,712
 
Total Current Liabilities
 
 
121,013
 
 
 
140,411
 
 
 
 
 
 
 
 
 
 
NONCURRENT LIABILITIES
 
 
 
 
 
 
 
 
Deferred tax liabilities
 
 
1,714
 
 
 
1,883
 
TOTAL LIABILITIES
 
 
122,727
 
 
 
142,294
 
 
 
 
 
 
 
 
 
 
COMMITMENTS AND CONTINGENCIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Stockholders' equity:
 
 
 
 
 
 
 
 
Preferred stock ($.001 par value, authorized 5,000,000 shares, no shares issued and outstanding)
 
 
-
 
 
 
-
 
Common stock ($.001 par value, authorized 50,000,000 shares, 14,795,992 and 14,795,992 shares issued and outstanding As of March 31, 2018 and December 31, 2017, respectively)
 
 
15
 
 
 
15
 
Additional paid-in capital
 
 
3,620
 
 
 
3,620
 
Retained earnings
 
 
96,010
 
 
 
95,195
 
Statutory reserve
 
 
17,794
 
 
 
17,794
 
Accumulated other comprehensive income
 
 
6,608
 
 
 
2,585
 
Amounts due from related party
 
 
(23,928
)
 
 
(15,449
)
Total equity attributable to stockholders of the Company
 
 
100,119
 
 
 
103,760
 
Noncontrolling interest
 
 
(1,332
)
 
 
(1,062
)
Total Equity
 
 
98,787
 
 
 
102,698
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
221,514
 
 
$
244,992
 

 
 

 
 

 
  
EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME
(In thousands of U.S. Dollars, except share and per share data or otherwise stated)
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017 (UNAUDITED)
 

 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
SALES
 
$
92,785
 
 
$
85,120
 
 
 
 
 
 
 
 
　
 
COST OF SALES
 
 
61,440
 
 
 
56,611
 
 
 
 
 
 
 
 
　
 
GROSS PROFIT
 
 
31,345
 
 
 
28,509
 
 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
Selling expenses
 
 
22,225
 
 
 
19,745
 
General and administrative expenses
 
 
7,674
 
 
 
7,255
 
Total operating expenses
 
 
29,899
 
 
 
27,000
 
 
 
 
　  
 
 
 
　  
 
INCOME FROM OPERATIONS
 
 
1,446
 
 
 
1,509
 
 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
Interest income
 
 
326
 
 
 
257
 
Interest expense
 
 
(564
)
 
 
(327
)
Other income
 
 
136
 
 
 
577
 
Total other expenses
 
 
(102
)
 
 
507
 
 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAX EXPENSE
 
 
1,344
 
 
 
2,016
 
 
 
 
 
 
 
 
 
 
INCOME TAX EXPENSE
 
 
(757
)
 
 
(1,217
)
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
587
 
 
 
799
 
Net loss attributable to the non-controlling interest
 
 
228
 
 
 
175
 
NET INCOME ATTRIBUTABLE TO THE COMPANY
 
$
815
 
 
$
974
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
$
587
 
 
$
799
 
Foreign currency translation income
 
 
4,023
 
 
 
459
 
COMPREHENSIVE INCOME
 
$
4,610
 
 
$
1,258
 
 
 
 
 
 
 
 
 
 
Comprehensive loss attributable to the noncontrolling interest
 
 
270
 
 
 
180
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY
 
$
4,880
 
 
$
1,438
 
EARNINGS PER SHARE:
 
 
 
 
 
 
 
 
Basic and diluted
 
$
0.06
 
 
$
0.07
 
Weighted average number of shares outstanding Basic and diluted
 
 
14,795,992
 
 
 
14,789,626
 

 
 

 
 

 
  
EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. Dollars, except share and per share data or otherwise stated)
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017 (UNAUDITED)
 

 
 
2018
 
 
2017
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
 
Net income
 
$
587
 
 
$
799
 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
　
 
 
 
　
 
Depreciation and amortization
 
 
2,537
 
 
 
2,241
 
Loss from sale of property and equipment
 
 
4
 
 
 
5
 
Provision for obsolete inventories
 
 
1,626
 
 
 
4,105
 
Deferred income tax
 
 
(234
)
 
 
(1,180
)
Stock-based compensation
 
 
-
 
 
 
10
 
Changes in operating assets and liabilities
 
 
 
 
 
 
 
 
Accounts receivable
 
 
28,466
 
 
 
23,487
 
Inventories
 
 
(129
)
 
 
5,541
 
Value added tax receivable
 
 
1,895
 
 
 
1,236
 
Other receivables and prepaid expenses
 
 
832
 
 
 
(543
)
Advances on inventory purchases
 
 
(1,175
)
 
 
(1,730
)
Amounts due from related parties
 
 
(165
)
 
 
(495
)
Accounts payable
 
 
(17,944
)
 
 
(11,762
)
Accounts payable and other payables- related parties
 
 
(653
)
 
 
(1,527
)
Other payables and accrued liabilities
 
 
(5,182
)
 
 
(1,794
)
Value added and other taxes payable
 
 
(1,988
)
 
 
(2,713
)
Income tax payable
 
 
(670
)
 
 
(755
)
Net cash provided by operating activities
 
 
7,807
 
 
 
14,925
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
Purchases of property and equipment
 
 
(2,552
)
 
 
(1,209
)
Net cash used in investing activities
 
 
(2,552
)
 
 
(1,209
)
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
Proceeds from bank loans
 
 
17,346
 
 
 
15,671
 
Repayment of bank loans
 
 
(14,780
)
 
 
(12,913
)
Advances to related party
 
 
(7,692
)
 
 
(1,742
)
Net cash provided by (used in) financing activities
 
 
(5,126
)
 
 
1,016
 
 
 
 
 
 
 
 
 
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH
 
 
2,172
 
 
 
80
 
 
 
 
　
 
 
 
　
 
NET INCREASE IN CASH AND CASH EQUIVALENTS
 
 
2,301
 
 
 
14,812
 
 
 
 
　
 
 
 
　
 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
 
 
62,876
 
 
 
45,288
 
 
 
 
　
 
 
 
　
 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
65,177
 
 
$
60,100
 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid during the period for:
 
 
 
 
 
 
 
 
Interest
 
$
564
 
 
$
327
 
Income taxes
 
$
1,938
 
 
$
1,853
 

 

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