Ever-Glory Reports Second Quarter 2015 Financial Results

Aug 12, 2015, 05:00 ET from Ever-Glory International Group, Inc.

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

expenses



7,606,070




7,539,418




14,520,019




13,934,406


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

(Expenses)



37,523




2,185




(180,835)




8,162



















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

non-controlling interest



80,394




-




80,394




-


NET INCOME ATTRIBUTABLE

TO THE COMPANY



3,598,140




5,530,144




5,993,695




7,919,872



















NET INCOME


$

3,517,746



$

5,530,144



$

5,913,301



$

7,919,872



















Foreign currency translation (loss)

gain



(127,037)




356,044




328,893




(343,382)


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


SOURCE Ever-Glory International Group, Inc.



RELATED LINKS

http://www.everglorygroup.com