Ever-Glory Reports First Quarter 2015 Financial Results
By PRN NewsWire
By PRN NewsWire
NANJING, China, May 15, 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 first quarter ended March 31, 2015.
Total sales for the quarter were $97.9 million, a decrease of 7.7% compared to $106.0 million in the first quarter of last year. This decrease was primarily attributable to a 2.9% decreased sales in retail business as well as a 15.6% decreased sales in wholesale business.
For the first quarter of 2015, retail sales from the Company’s branded fashion apparel retail division, decreased 2.9% to $64.6 million compared to $66.6 million last year. This decrease was primarily due to the decrease in same store sales. Ever-Glory had 1,206 retail stores as of March 31, 2015, compared to 976 retail stores at March 31, 2014.
For the first quarter of 2015, wholesale sales decreased 15.6% to $33.3 million, compared to $39.4 million last year. This decrease was primarily attributable to decreased sales in the Germany, France, Europe-Other, Japan and United States partially offset for increased sales in the United Kingdom and PRC.
Total gross profit for the quarter increased 18.7% to $30.6 million, compared to $25.8 million last year. Total gross margin increased 700 basis points to 31.3% compared to 24.3% last year.
Gross profit for retail business increased 19.4% to $23.5 million, compared to $19.6 million last year. Gross margin increased 680 basis points to 36.3% compared to 29.5% last year.
Gross profit for wholesale business increased 16.5% to $7.2 million, compared to $6.1 million last year. Gross margin increased 590 basis points to 21.5% compared to 15.6% last year.
Selling expenses for the quarter increased 25.6% to $20.3 million compared to $16.1 million last year. As a percentage of sales, selling expenses increased 550 basis points to 20.7% compared to 15.2% last year.
General and administrative expenses for the quarter increased 8.1% to $6.9 million compared to $6.4 million last year. As a percentage of total sales, general and administrative expenses increased 110 basis points to 7.1% compared to 6.0% last year.
Income from operations for the quarter increased 5.4% to $3.4 million compared to $3.3 million last year. As a percentage of sales, income from operations increased 40 basis points to 3.5% compared to 3.1% last year.
Net income for the first quarter of 2015 and 2014 was $2.4 million, respectively. Basic and diluted earnings per share were $0.16 for the first quarter of 2015 and 2014, respectively.
Balance Sheet and Cash Flow
As of March 31, 2015, Ever-Glory had approximately $32.0 million of cash and cash equivalents, compared to approximately $34.1 million as of December 31, 2014. Ever-Glory had working capital of approximately $47.3 million as of March 31, 2015, and outstanding bank loans of approximately $45.7 million as of March 31, 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” and “Sea To Sky” 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.
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 # 1-913-312-1443 and referring to the confirmation code 5326295. 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. May 15, 2015 through May 22, 2015 Eastern Time by calling # 1-858-384-5517; pin number: 5326295.
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 MONTHS ENDED MARCH 31, 2015 AND 2014 (UNAUDITED) 2015 2014 —- —- NET SALES $97,902,962 $106,015,169 COST OF SALES 67,294,589 80,234,212 ———- ———- GROSS PROFIT 30,608,373 25,780,957 ———- ———- OPERATING EXPENSES Selling expenses 20,255,374 16,123,296 General and administrative expenses 6,913,949 6,394,988 ——— ——— Total Operating Expenses 27,169,323 22,518,284 ———- ———- INCOME FROM OPERATIONS 3,439,050 3,262,673 ——— ——— OTHER (EXPENSES) INCOME Interest income 323,404 241,333 Interest expense (775,846) (707,115) Other income 234,084 471,759 ——- ——- Total Other (Expenses) Income (218,358) 5,977 ——– —– INCOME BEFORE INCOME TAX EXPENSE 3,220,692 3,268,650 INCOME TAX EXPENSE (825,137) (878,922) ——– ——– NET INCOME 2,395,555 2,389,728 OTHER COMPREHENSIVE INCOME: Foreign currency translation gain (loss) 455,930 (699,426) ——- ——– COMPREHENSIVE INCOME $2,851,485 $1,690,302 ========== ========== NET INCOME PER SHARE Basic and diluted $0.16 $0.16 ===== ===== Weighted average number of shares outstanding Basic and diluted 14,784,094 14,781,241 ========== ==========
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Ever-Glory International Group, Inc.
Web site: http://www.everglorygroup.com/
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