MRO Magazine

Ever-Glory Reports Second Quarter 2015 Financial Results


August 12, 2015
By PRN NewsWire

NANJING, China, Aug. 12, 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 second quarter ended June 30, 2015.

Total sales for the quarter were $75.7 million, a decrease of 11.6% compared to $85.7 million in the second quarter of last year. This decrease was primarily due to a 6.8% decreased sales in retail business as well as an 18.1% decreased sales in wholesale business.

For the second quarter of 2015, retail sales from the Company’s branded fashion apparel retail division, decreased 6.8% to $45.9 million compared to $49.3 million last year. This decrease was primarily due to the decrease in same store sales. Ever-Glory had 1,204 retail stores as of June 30, 2015, compared to 1055 retail stores at June 30, 2014.

For the second quarter of 2015, wholesale sales decreased 18.1% to $29.8 million, compared to $36.4 million last year. This decrease was primarily due to decreased sales in P.R.C, Germany, the United Kingdom and the United States.

Total gross profit for the quarter increased 2.4% to $30.0 million, compared to $29.3 million last year. Total gross margin increased 540 basis points to 39.7% compared to 34.3% last year.

Gross profit for retail business increased 14.4% to $23.8 million, compared to $20.8 million last year. Gross margin increased 960 basis points to 51.8% compared to 42.2% last year.

Gross profit for wholesale business decreased 26.9% to $6.2 million, compared to $8.5 million last year. Gross margin decreased 250 basis points to 21.0% compared to 23.5% last year.

Selling expenses for the quarter increased 22.1% to $17.6 million compared to $14.4 million last year. As a percentage of sales, selling expenses increased 640 basis points to 23.2% compared to 16.8% last year.

General and administrative expenses for the quarter increased 0.9% to $7.6 million compared to $7.5 million last year. As a percentage of total sales, general and administrative expenses increased 120 basis points to 10.0% compared to 8.8% last year.

Income from operations for the quarter decreased 34.4% to $4.9 million compared to $7.4 million last year. As a percentage of sales, income from operations decreased 220 basis points to 6.4% compared to 8.6% last year.

Net income for the quarter decreased 36.4% to $3.5 million compared to $5.5 million last year. Basic and diluted earnings per share were $0.24 and $0.37 for the three months ended June 30, 2015 and 2014, respectively.

Balance Sheet and Cash Flow

As of June 30, 2015, Ever-Glory had approximately $28.3 million of cash and cash equivalents, compared to approximately $34.1 million as of December 31, 2014. Ever-Glory had working capital of approximately $52.6 million as of June 30, 2015, and outstanding bank loans of approximately $40.9 million as of June 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 # 1-719-325-2315 and referring to the confirmation code 8659011. 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. August 12, 2015 through August 19, 2015 Eastern Time by calling # 1-858-384-5517; pin number: 8659011.

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 SIX MONTHS ENDED JUNE 30, 2015 AND 2014 (UNAUDITED) Three months ended Six months ended June 30, June 30, ——– ——– 2015 2014 2015 2014 —- —- —- —- NET SALES $75,726,998 $85,667,780 $173,629,960 $191,682,949 COST OF SALES 45,679,590 56,317,989 112,974,179 136,552,201 ———- ———- ———– ———– GROSS PROFIT 30,047,408 29,349,791 60,655,781 55,130,748 ———- ———- ———- ———- OPERATING EXPENSES Selling expenses 17,582,288 14,402,662 37,837,662 30,525,958 General and administrative 7,606,070 7,539,418 14,520,019 13,934,406 expenses Total Operating Expenses 25,188,358 21,942,080 52,357,681 44,460,364 ———- ———- ———- ———- INCOME FROM OPERATIONS 4,859,050 7,407,711 8,298,100 10,670,384 ——— ——— ——— ———- OTHER INCOME (EXPENSES) Interest income 215,351 336,414 538,755 577,747 Interest expense (716,441) (774,693) (1,492,287) (1,481,808) Other income (expenses) 538,613 440,464 772,697 912,223 ——- ——- ——- ——- Total Other Income 37,523 2,185 (180,835) 8,162 (Expenses) INCOME BEFORE INCOME TAX EXPENSE 4,896,573 7,409,896 8,117,265 10,678,546 Income tax expense (1,378,827) (1,879,752) (2,203,964) (2,758,674) ———- ———- ———- ———- NET INCOME 3,517,746 5,530,144 5,913,301 7,919,872 Net (income) loss attributable to the 80,394 – 80,394 – non-controlling interest NET INCOME ATTRIBUTABLE 3,598,140 5,530,144 5,993,695 7,919,872 TO THE COMPANY NET INCOME $3,517,746 $5,530,144 $5,913,301 $7,919,872 Foreign currency translation (loss) (127,037) 356,044 328,893 (343,382) gain COMPREHENSIVE INCOME 3,390,709 5,886,188 6,242,194 7,576,490 Comprehensive (income) loss attributable to the non-controlling interest 80,560 – 80,560 – —— — —— — COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY $3,471,269 $5,886,188 $6,322,754 $7,576,490 ========== ========== ========== ========== EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY’S STOCKHOLDERS Basic and diluted $0.24 $0.37 $0.41 $0.54 ===== ===== ===== ===== Weighted average number of shares outstanding Basic and diluted 14,784,094 14,781,241 14,784,094 14,781,241 ========== ========== ========== ==========

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ever-glory-reports-second-quarter-2015-financial-results-300127373.html

Ever-Glory International Group, Inc.

CONTACT: Huang Yanhua, +86-25-52096875, xxnfff@126.com

Web site: http://www.everglorygroup.com/