2017 Q1 Form 10-K Financial Statement

#000114420418036362 Filed on June 28, 2018

View on sec.gov

Income Statement

Concept 2017 Q1 2017 2016 Q2
Revenue $12.17M $62.04M $18.51M
YoY Change 70.21% 18.04%
Cost Of Revenue $7.960M $46.64M $14.72M
YoY Change 55.77% 16.86%
Gross Profit $4.210M $15.40M $3.790M
YoY Change 106.37% 21.77%
Gross Profit Margin 34.59% 24.83% 20.48%
Selling, General & Admin $1.410M $4.705M $950.0K
YoY Change -21.67% 31.81%
% of Gross Profit 33.49% 30.55% 25.07%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $290.0K $1.323M $350.0K
YoY Change -12.12% 30.98%
% of Gross Profit 6.89% 8.59% 9.23%
Operating Expenses $1.420M $4.705M $940.0K
YoY Change -21.11% 31.81%
Operating Profit $2.790M $10.70M $2.850M
YoY Change 1062.5% 17.82%
Interest Expense
YoY Change
% of Operating Profit
Other Income/Expense, Net -$20.00K $50.32K -$20.00K
YoY Change -33.33% -171.88%
Pretax Income $2.770M $10.65M $2.830M
YoY Change 1219.05% 18.18%
Income Tax $0.00 $1.400M
% Of Pretax Income 0.0% 49.47%
Net Earnings $2.790M $10.69M $2.840M
YoY Change 1113.04% 17.76%
Net Earnings / Revenue 22.93% 17.23% 15.34%
Basic Earnings Per Share
Diluted Earnings Per Share $317.4K $1.216M $323.1K
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q1 2017 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $3.654M
Short-Term Investments
Other Short-Term Assets $4.950M $4.950M
YoY Change 22.52%
Inventory $19.15M $19.15M
Prepaid Expenses
Receivables $2.776M $2.780M
Other Receivables $3.370M $3.370M
Total Short-Term Assets $30.26M $30.26M
YoY Change 47.18%
LONG-TERM ASSETS
Property, Plant & Equipment $3.160M $3.160M
YoY Change -20.8%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $480.0K $480.0K
YoY Change 0.0%
Total Long-Term Assets $3.639M $3.640M
YoY Change -18.39%
TOTAL ASSETS
Total Short-Term Assets $30.26M $30.26M
Total Long-Term Assets $3.639M $3.640M
Total Assets $33.90M $33.90M
YoY Change 35.49%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.25M $10.25M
YoY Change 3696.3%
Accrued Expenses $464.5K $460.0K
YoY Change -2.13%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $11.88M $11.88M
YoY Change 43.13%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $11.88M $11.88M
Total Long-Term Liabilities $0.00 $0.00
Total Liabilities $11.88M $12.20M
YoY Change 40.72%
SHAREHOLDERS EQUITY
Retained Earnings $20.54M
YoY Change
Common Stock $8.788K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $21.70M $21.70M
YoY Change
Total Liabilities & Shareholders Equity $33.90M $33.90M
YoY Change 35.49%

Cashflow Statement

Concept 2017 Q1 2017 2016 Q2
OPERATING ACTIVITIES
Net Income $2.790M $10.69M $2.840M
YoY Change 1113.04% 17.76%
Depreciation, Depletion And Amortization $290.0K $1.323M $350.0K
YoY Change -12.12% 30.98%
Cash From Operating Activities $1.130M $7.677M $420.0K
YoY Change -34.3% 232.35%
INVESTING ACTIVITIES
Capital Expenditures -$120.0K $491.6K -$220.0K
YoY Change -88.68% -120.83%
Acquisitions
YoY Change
Other Investing Activities -$340.0K -$340.0K $0.00
YoY Change
Cash From Investing Activities -$460.0K -$828.6K -$220.0K
YoY Change -56.6% -64.89%
FINANCING ACTIVITIES
Cash Dividend Paid $5.308M
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 -$6.000M 0.000
YoY Change
NET CHANGE
Cash From Operating Activities 1.130M $7.677M 420.0K
Cash From Investing Activities -460.0K -$828.6K -220.0K
Cash From Financing Activities 0.000 -$6.000M 0.000
Net Change In Cash 670.0K $848.7K 200.0K
YoY Change 1.52% -1797.38%
FREE CASH FLOW
Cash From Operating Activities $1.130M $7.677M $420.0K
Capital Expenditures -$120.0K $491.6K -$220.0K
Free Cash Flow $1.250M $7.186M $640.0K
YoY Change -55.04% 53.87%

Facts In Submission

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CY2018 us-gaap Use Of Estimates
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><strong>Use of Estimates</strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><strong>&#160;</strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">The preparation of the consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company&#8217;s most significant estimates include allowance for doubtful accounts, valuation of inventory reserve and useful lives of buildings and other property. Actual results could differ from these estimates.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2017 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.14 pure
CY2018 us-gaap Income Tax Holiday Aggregate Dollar Amount
IncomeTaxHolidayAggregateDollarAmount
1800000 USD
CY2017 us-gaap Income Tax Holiday Aggregate Dollar Amount
IncomeTaxHolidayAggregateDollarAmount
1500000 USD
CY2018 us-gaap Income Tax Holiday Income Tax Benefits Per Share
IncomeTaxHolidayIncomeTaxBenefitsPerShare
0.18
CY2017 us-gaap Income Tax Holiday Income Tax Benefits Per Share
IncomeTaxHolidayIncomeTaxBenefitsPerShare
0.17
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
CY2018 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: bold 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Concentrations and Credit Risk</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal"> <u>Credit risk</u></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of March 31, 2018, and 2017, $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">4,192,448</font> and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">3,404,508</font> of the Company&#8217;s cash was on deposit at financial institutions in Jordan, where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. As of March 31, 2018, and 2017, $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">4,402,910</font> and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">249,865</font> of the Company&#8217;s cash was on deposit at financial institutions in Hong Kong, which are insured by the Hong Kong Deposit Protection Board subject to certain limitations. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. As of March 31, 2018, and 2017, $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">2,472</font> and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">0</font> of the Company&#8217;s cash was on deposit in the United States and are insured by the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;) up to $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">250,000</font>. The Company periodically monitors its cash management strategy to ensure that it is not subject to significant undue credit risk.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">&#160;</div> Accounts receivable are typically unsecured and derived from revenue earned from customers, and therefore are exposed to credit risk. The risk is mitigated by the Company's assessment of its customers' creditworthiness and its ongoing monitoring of outstanding balances.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;CLEAR: both"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal"> <u>Customer and vendor concentration risk</u></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">Prior to August 2016, substantially all of the Company&#8217;s sales were made to end-customers, through its affiliate (see Note 8), that are located primarily in the United States (see Note 10). Thereafter, the Company began selling directly to its customers. The Company&#8217;s operating results could be adversely affected by the U.S. government policy on exporting business, foreign exchange rate fluctuations, and change of local market conditions. The Company has a concentration of its revenues and purchases with specific customers and suppliers. For the fiscal years ended March 31, 2018 and &#160;2017, one customer accounted for <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 79</font></font>% of total revenue. For the fiscal year ended March 31, 2018, two customers accounted for <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 57</font>% and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 22</font>% of the total accounts receivable balance, respectively. As of March 31, 2017, one customer accounted for <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 94</font>% of the total accounts receivable balance.</div> <strong>&#160;</strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="COLOR: windowtext"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify"><font style="COLOR: windowtext"><font style="COLOR: windowtext">For the fiscal year ended March 31, 2018, the Company purchased approximately <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 43</font>% and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 18</font>% of its raw materials from two major suppliers, Onset Time Limited ("ONSET") and Duck San Enterprise Co., Ltd., respectively. For the fiscal year ended March 31, 2017, the Company purchased</font> approximately <font style="COLOR: windowtext"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 64</font>% and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 24</font>%</font> of its raw materials from ONSET and Value Plus (Macao Commercial Offshore) Limited (&#8220;VPMCO&#8221;), respectively (see Note 8). As of March 31, 2018, two suppliers accounted for <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 78</font>% and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 22</font>% of the total advance to vendors balance, respectively. As of March 31, 2017, accounts payable to one major supplier accounted for <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 96</font>% of the total accounts payable balance.</font></div> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" align="justify">A loss of either of these customers or suppliers could adversely affect the operating results or cash flows of the Company.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2018 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
611481 USD
CY2017 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
503818 USD
CY2018 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.14 pure
CY2018 us-gaap Income Tax Holiday Description
IncomeTaxHolidayDescription
In accordance with the Investment Encouragement Law, Jerash Garments' export sales to overseas customers is entitled to a 100% income tax exemption for a period of 10 years commencing from the first day of production. This exemption has been extended for 5 years until December 31, 2018.
CY2018Q1 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
112000 USD
CY2017Q1 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
0 USD
CY2018Q1 us-gaap Accrued Income Taxes Noncurrent
AccruedIncomeTaxesNoncurrent
1288000 USD
CY2017Q1 us-gaap Accrued Income Taxes Noncurrent
AccruedIncomeTaxesNoncurrent
0 USD
CY2018Q1 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
CY2017Q1 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
11803279 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
10647781 USD
CY2018 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1400000 USD
CY2017 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
USD
CY2017 us-gaap Dividends
Dividends
5307500 USD
CY2018 us-gaap Dividends
Dividends
USD
CY2018 us-gaap Increase Decrease In Accrued Taxes Payable
IncreaseDecreaseInAccruedTaxesPayable
1400000 USD
CY2017 us-gaap Increase Decrease In Accrued Taxes Payable
IncreaseDecreaseInAccruedTaxesPayable
0 USD
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0 pure
CY2017Q4 jrsh Description Of New Tax Rate On Certain Offshore Earnings
DescriptionOfNewTaxRateOnCertainOffshoreEarnings
The Tax Act also imposed a global intangible low-taxed income tax (&#8220;GILTI&#8221;), which is a new tax on certain off-shore earnings at an effective rate of 10.5% for tax years beginning after December 31, 2017 (increasing to 13.125% for tax years beginning after December 31, 2025) with a partial offset for foreign tax credits.
CY2018 jrsh Retained Earnings Appropriation Description
RetainedEarningsAppropriationDescription
Appropriations to the statutory reserve are required to be 10% of net income until the reserve is equal to 100% of the entitys share capital.
CY2018Q1 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
5247090 USD
CY2017Q1 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
2776314 USD
CY2018Q1 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
0 USD
CY2017Q1 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
0 USD
CY2016Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1400000 USD
CY2018Q1 us-gaap Accrued Income Taxes
AccruedIncomeTaxes
1400000 USD
CY2018Q1 jrsh Marketing Services And Advisoryamount
MarketingServicesAndAdvisoryamount
300000 USD
CY2018Q1 jrsh Consulting Fees
ConsultingFees
75000 USD
CY2018Q1 jrsh Marketing Services And Advisoryamount
MarketingServicesAndAdvisoryamount
300000 USD
CY2018Q1 jrsh Consulting Fees
ConsultingFees
75000 USD
CY2018Q1 us-gaap Area Of Land
AreaOfLand
5000 sqft
CY2018Q1 us-gaap Lines Of Credit Current
LinesOfCreditCurrent
980195 USD
CY2017Q1 us-gaap Lines Of Credit Current
LinesOfCreditCurrent
0 USD
CY2018Q1 us-gaap Supplies
Supplies
1128079 USD
CY2017Q1 us-gaap Supplies
Supplies
0 USD
CY2018 jrsh Reverse Recapitalization
ReverseRecapitalization
1000 USD
CY2018 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
1534475 USD
CY2018 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
116578 USD
CY2018 dei Trading Symbol
TradingSymbol
JRSH
CY2018Q1 jrsh Factored Accounts Receivable
FactoredAccountsReceivable
470659 USD
CY2017Q1 jrsh Factored Accounts Receivable
FactoredAccountsReceivable
0 USD

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