Ever-Glory Reports First Quarter 2019 Financial Results

Published

NANJING, China, May 14, 2019 /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, reported its financial results today for the first quarter ended March 31, 2019.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "During the first quarter, we maintained our focus on developing the retail business through our multi-brand strategy and store network optimization initiative, while improving our wholesale business by upgrading customer portfolio and enhancing our account receivables. Notably, we achieved year-over-year improvement in gross profit of 13.0% for our wholesale business."

"During the first quarter of 2019, we remained our focus on driving retail business through store network optimization strategy, as well as inventory management strategy," Mr. Kang continued. "Following the remodeling or relocation of 7 stores during 2019, we operated a nationwide network of 1,315 stores as of December 31, 2019."

"Looking at our wholesale business, we maintained focus on upgrading customer portfolio to reduce credit risk and improve margin in the light of weak micro environment and enhancing our account receivables. Going forward, we'll implement a stricter client evaluation system and remain diligent in account receivables collection. We believe the enduring strength of our wholesale business will support its long-term profitability." concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "The first quarter results, coupled with our ability to increase operating leverage, resulted in expanded wholesale operating income during this quarter. Going forward, we remain confident in the long-term prospects of our business and we will continue implementing our margin enhancement and cost control measures to further strengthen the profitability of our business."

First Quarter 2019 Financial Results 

Total sales for the first quarter of 2019 were $88.0 million, a decrease of 5.2% from $92.8 million in the first quarter of 2018. This decrease was primarily driven by an 11.4% decrease in our retail business, partially offset by an 11.3% increase in wholesale business.

Sales for the Company's branded fashion apparel retail division decreased by 11.4% to $59.9 million for the first quarter of 2019, compared with $67.5 million for the first quarter of 2018. This decrease was primarily due to a decrease in same-store sales. The Company had 1,315 retail stores as of March 31, 2019, compared with 1,409 retail stores as of March 31, 2018.

Sales for the Company's wholesale division increased by 11.3% to $28.1 million for the first quarter of 2019, compared with $25.3 million for the first quarter of 2018. This increase was primarily attributable to increased sales in Mainland China, other European markets and Japan partially offset for decreased sales in Hong Kong, the United States, the United Kingdom and Germany.

Total gross profit for the first quarter of 2019 decreased by 6.3% to $29.4 million, compared with $31.3 million for the first quarter of 2018. Total gross margin decreased to 33.4% from 33.8% for the first quarter of 2018.

Gross profit for the retail business decreased by 10.7% to $22.8 million for the first quarter of 2019, compared with $25.5 million for the first quarter of 2018. Gross margin was 38.1%, compared to 37.8% for the first quarter of 2018.

Gross profit for the wholesale business increased by 13.0% to $6.6 million for the first quarter of 2019, compared with $5.8 million for the first quarter of 2018. Gross margin increased to 23.3% from 23.0% for the first quarter of 2018.

Selling expenses for the first quarter of 2019 decreased by 5.5% to $21.0 million, or 23.9% of total sales, compared with $22.2 million, or 24.0% of total sales for the first quarter of 2018. The decrease was attributable to the decreased sales.

General and administrative expenses for the first quarter of 2019 decreased by 1.9% to $7.5 million, or 8.6% of total sales, compared with $7.7 million, or 8.3% of total sales for the first quarter of 2018. The decrease was mainly attributable to the decreased office expenses.

Income from operations for the first quarter of 2019 decreased by 43.2% to $0.8 million compared with $1.4 million for the first quarter of 2018.

Net income(loss) attributable to the Company for the first quarter of 2019 was ($0.5) million compared with $0.8 million for the first quarter of 2018. Basic and diluted earnings(loss) per share were ($0.04) for the first quarter of 2019 compared with basic and diluted earnings per share of $0.06 for the first quarter of 2018.

Balance Sheet

As of March 31, 2019, Ever-Glory had approximately $57.9 million of cash and cash equivalents, compared with approximately $47.0 million as of December 31, 2018. Ever-Glory had working capital of approximately $28.5 million as of March 31, 2019, and outstanding bank loans of approximately $28.8 million as of March 31, 2019.

Conference Call

The Company will hold a conference call at 8:00 a.m. Eastern Time on May 14, 2019 (8:00 p.m. Beijing Time on May 14, 2019). Listeners can access the conference call by dialing +1-800-289-0438 or + 1-323-794-2423 and using the access code 7887070. 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 14 through 11:59 p.m. Eastern Time on May 21, by dialing +1-844-512-2921 or +1-412-317-6671 and using the access code 7887070.

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
  

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. Dollars, except share and per share data or otherwise stated)
AS OF MARCH 31, 2019 AND DECEMBER 31, 2018 (UNAUDITED)
2019 2018
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 57,876 $ 47,012
Accounts receivable, net 57,595 86,527
Inventories 55,035 65,929
Advances on inventory purchases 6,087 6,420
Value added tax receivable 1,229 2,580
Other receivables and prepaid expenses 6,365 10,204
Amounts due from related parties 75 192
Total Current Assets 184,262 218,864
NONCURRENT ASSETS
Intangible assets, net 5,046 4,962
Property and equipment, net 29,135 28,445
Operating lease right-of-use assets 64,549 -
Total Non-Current Assets 98,730 33,407
TOTAL ASSETS $ 282,992 $ 252,271
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Bank loans $ 28,839 $ 29,497
Accounts payable 51,470 78,412
Accounts payable and other payables – related parties 4,040 4,756
Other payables and accrued liabilities 13,769 21,958
Value added and other taxes payable 1,305 2,569
Income tax payable 862 1,569
Current operating lease liabilities 55,434 -
Total Current Liabilities 155,719 138,761
NONCURRENT LIABILITIES
Deferred tax liabilities 330 354
Non-current operating lease liabilities 9,127 -
TOTAL LIABILITIES 165,176 139,115
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Stockholders' equity:
Preferred stock ($0.001 par value, authorized 5,000,000 shares, no shares issued      and outstanding) - -
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,800,140 and      14,798,198 shares issued and outstanding As of March 31, 2019 and December      31, 2018, respectively) 15 15
Additional paid-in capital 3,635 3,627
Retained earnings 105,393 105,914
Statutory reserve 19,083 19,083
Accumulated other comprehensive income 394 (3,578)
Amounts due from related party (9,253) (10,354)
Total equity attributable to stockholders of the Company 119,267 114,707
Noncontrolling interest (1,451) (1,551)
Total Equity 117,816 113,156
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 282,992 $ 252,271

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONDENSED
CONDENSED CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME
(In thousands of U.S. Dollars, except share and per share data or otherwise stated) (In thousands of U.S. Dollars, except share and per share data or otherwise stated)
AS OF MARCH 31, 2019 AND DECEMBER 31, 2018 (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)
2019 2018 2019 2018
ASSETS
CURRENT ASSETS SALES $ 87,956 $ 92,785
Cash and cash equivalents $ 57,876 $ 47,012
Accounts receivable, net 57,595 86,527 COST OF SALES 58,598 61,440
Inventories 55,035 65,929
Advances on inventory purchases 6,087 6,420 GROSS PROFIT 29,358 31,345
Value added tax receivable 1,229 2,580
Other receivables and prepaid expenses 6,365 10,204 OPERATING EXPENSES
Amounts due from related parties 75 192 Selling expenses 21,008 22,225
Total Current Assets 184,262 218,864 General and administrative expenses 7,529 7,674
Total operating expenses 28,537 29,899
NONCURRENT ASSETS
Intangible assets, net 5,046 4,962 INCOME FROM OPERATIONS 821 1,446
Property and equipment, net 29,135 28,445
Operating lease right-of-use assets 64,549 - OTHER INCOME (EXPENSE)
Total Non-Current Assets 98,730 33,407 Interest income 207 326
TOTAL ASSETS $ 282,992 $ 252,271 Interest expense (363) (564)
Other income (expenses) (295) 136
LIABILITIES AND STOCKHOLDERS' EQUITY Total other expenses (451) (102)
CURRENT LIABILITIES INCOME BEFORE INCOME TAX EXPENSE 370 1,344
Bank loans $ 28,839 $ 29,497
Accounts payable 51,470 78,412 INCOME TAX EXPENSE (825) (757)
Accounts payable and other payables – related parties 4,040 4,756
Other payables and accrued liabilities 13,769 21,958 NET INCOME(LOSS) (455) 587
Value added and other taxes payable 1,305 2,569 Net income(loss) attributable to the non-controlling interest (66) 228
Income tax payable 862 1,569 NET INCOME(LOSS) ATTRIBUTABLE TO THE COMPANY $ (521) $ 815
Current operating lease liabilities 55,434 -
Total Current Liabilities 155,719 138,761 NET INCOME(LOSS) $ (455) $ 587
Foreign currency translation gain 3,972 4,023
NONCURRENT LIABILITIES COMPREHENSIVE INCOME $ 3,517 $ 4,610
Deferred tax liabilities 330 354
Non-current operating lease liabilities 9,127 - Comprehensive loss attributable to the noncontrolling interest 100 270
TOTAL LIABILITIES 165,176 139,115
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY $ 3,617 $ 4,880
COMMITMENTS AND CONTINGENCIES EARNINGS(LOSS) PER SHARE:
Basic and diluted $ (0.04) $ 0.06
STOCKHOLDERS' EQUITY Weighted average number of shares outstanding Basic and diluted 14,800,140 14,795,992
Stockholders' equity:
Preferred stock ($0.001 par value, authorized 5,000,000 shares, no shares issued      and outstanding) - -
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,800,140 and      14,798,198 shares issued and outstanding As of March 31, 2019 and December      31, 2018, respectively) 15 15
Additional paid-in capital 3,635 3,627
Retained earnings 105,393 105,914
Statutory reserve 19,083 19,083
Accumulated other comprehensive income 394 (3,578)
Amounts due from related party (9,253) (10,354)
Total equity attributable to stockholders of the Company 119,267 114,707
Noncontrolling interest (1,451) (1,551)
Total Equity 117,816 113,156
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 282,992 $ 252,271

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONDENSED EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In thousands of U.S. Dollars, except share and per share data or otherwise stated) (In thousands of U.S. Dollars, except share and per share data or otherwise stated) (In thousands of U.S. Dollars, except share and per share data or otherwise stated)
AS OF MARCH 31, 2019 AND DECEMBER 31, 2018 (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED) FOR THE THREE MONTHS ENDED March 31, 2019 AND 2018 (Unaudited)
2019 2018 2019 2018 Additional Retained Earnings Accumulatedother Amountsdue from Totalequityattributableto stockholders Non-
ASSETS Common Stock paid-in Statutory Comprehensive related of the controlling Total
CURRENT ASSETS SALES $ 87,956 $ 92,785 Shares Amount capital Unrestricted reserve income party Company Interest equity
Cash and cash equivalents $ 57,876 $ 47,012 Balance at  January 1,  2019 14,798,198 $ 15 $ 3,627 $ 105,914 $ 19,083 $ (3,578) $ (10,354) $ 114,707 (1,551) $ 113,156
Accounts receivable, net 57,595 86,527 COST OF SALES 58,598 61,440
Inventories 55,035 65,929 Stock issued   for compensation 1,942 0.004 8 - - - - 8 8
Advances on inventory purchases 6,087 6,420 GROSS PROFIT 29,358 31,345 Net income (loss) - - - (521) - - - (521) 66 (455)
Value added tax receivable 1,229 2,580 Net cash paid to  related party under  counter guarantee agreement - - - - - - 1,101 1,101 - 1,101
Other receivables and prepaid expenses 6,365 10,204 OPERATING EXPENSES Foreign currency  translation loss 3,972 - 3,972 34 4,006
Amounts due from related parties 75 192 Selling expenses 21,008 22,225 Balance at March  31, 2019 14,800,140 $ 15 $ 3,635 $ 105,393 $ 19,083 $ 394 $ (9,253) $ 119,267 (1,451) $ 117,816
Total Current Assets 184,262 218,864 General and administrative expenses 7,529 7,674
Total operating expenses 28,537 29,899
NONCURRENT ASSETS
Intangible assets, net 5,046 4,962 INCOME FROM OPERATIONS 821 1,446
Property and equipment, net 29,135 28,445
Operating lease right-of-use assets 64,549 - OTHER INCOME (EXPENSE)
Total Non-Current Assets 98,730 33,407 Interest income 207 326
TOTAL ASSETS $ 282,992 $ 252,271 Interest expense (363) (564)
Other income (expenses) (295) 136
LIABILITIES AND STOCKHOLDERS' EQUITY Total other expenses (451) (102)
CURRENT LIABILITIES INCOME BEFORE INCOME TAX EXPENSE 370 1,344
Bank loans $ 28,839 $ 29,497
Accounts payable 51,470 78,412 INCOME TAX EXPENSE (825) (757)
Accounts payable and other payables – related parties 4,040 4,756
Other payables and accrued liabilities 13,769 21,958 NET INCOME(LOSS) (455) 587
Value added and other taxes payable 1,305 2,569 Net income(loss) attributable to the non-controlling interest (66) 228
Income tax payable 862 1,569 NET INCOME(LOSS) ATTRIBUTABLE TO THE COMPANY $ (521) $ 815
Current operating lease liabilities 55,434 -
Total Current Liabilities 155,719 138,761 NET INCOME(LOSS) $ (455) $ 587
Foreign currency translation gain 3,972 4,023
NONCURRENT LIABILITIES COMPREHENSIVE INCOME $ 3,517 $ 4,610
Deferred tax liabilities 330 354
Non-current operating lease liabilities 9,127 - Comprehensive loss attributable to the noncontrolling interest 100 270
TOTAL LIABILITIES 165,176 139,115
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY $ 3,617 $ 4,880
COMMITMENTS AND CONTINGENCIES EARNINGS(LOSS) PER SHARE:
Basic and diluted $ (0.04) $ 0.06
STOCKHOLDERS' EQUITY Weighted average number of shares outstanding Basic and diluted 14,800,140 14,795,992
Stockholders' equity:
Preferred stock ($0.001 par value, authorized 5,000,000 shares, no shares issued      and outstanding) - -
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,800,140 and      14,798,198 shares issued and outstanding As of March 31, 2019 and December      31, 2018, respectively) 15 15
Additional paid-in capital 3,635 3,627
Retained earnings 105,393 105,914
Statutory reserve 19,083 19,083
Accumulated other comprehensive income 394 (3,578)
Amounts due from related party (9,253) (10,354)
Total equity attributable to stockholders of the Company 119,267 114,707
Noncontrolling interest (1,451) (1,551)
Total Equity 117,816 113,156
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 282,992 $ 252,271

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONDENSED EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES Additional Retained Earnings Accumulatedother Amountsdue from Totalequityattributableto stockholders Non-
CONDENSED CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME CONDENSED CONSOLIDATED STATEMENTS OF EQUITY Common Stock paid-in Statutory Comprehensive related of the controlling Total
(In thousands of U.S. Dollars, except share and per share data or otherwise stated) (In thousands of U.S. Dollars, except share and per share data or otherwise stated) (In thousands of U.S. Dollars, except share and per share data or otherwise stated) Shares Amount capital Unrestricted reserve income party Company Interest equity
AS OF MARCH 31, 2019 AND DECEMBER 31, 2018 (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED) FOR THE THREE MONTHS ENDED March 31, 2019 AND 2018 (Unaudited) Balance at  January 1,  2018 14,795,992 $ 15 $ 3,620 $ 95,195 $ 17,794 $ 2,585 $ (15,449) $ 103,760 (1,062) $ 102,698
2019 2018 2019 2018 Additional Retained Earnings Accumulatedother Amountsdue from Totalequityattributableto stockholders Non- Net income (loss) - - - 815 - - - 815 (228) 587
ASSETS Common Stock paid-in Statutory Comprehensive related of the controlling Total Net cash paid to  related party under  counter guarantee  agreement - - - - - - (8,480) (8,480) - (8,480)
CURRENT ASSETS SALES $ 87,956 $ 92,785 Shares Amount capital Unrestricted reserve income party Company Interest equity Foreign currency  translation loss 4,023 - 4,023 (94) 3,929
Cash and cash equivalents $ 57,876 $ 47,012 Balance at  January 1,  2019 14,798,198 $ 15 $ 3,627 $ 105,914 $ 19,083 $ (3,578) $ (10,354) $ 114,707 (1,551) $ 113,156 Balance at March  31, 2018 14,795,992 $ 15 $ 3,620 $ 96,010 $ 17,794 $ 6,608 $ (23,929) $ 100,118 (1,384) $ 98,734
Accounts receivable, net 57,595 86,527 COST OF SALES 58,598 61,440
Inventories 55,035 65,929 Stock issued   for compensation 1,942 0.004 8 - - - - 8 8
Advances on inventory purchases 6,087 6,420 GROSS PROFIT 29,358 31,345 Net income (loss) - - - (521) - - - (521) 66 (455)
Value added tax receivable 1,229 2,580 Net cash paid to  related party under  counter guarantee agreement - - - - - - 1,101 1,101 - 1,101
Other receivables and prepaid expenses 6,365 10,204 OPERATING EXPENSES Foreign currency  translation loss 3,972 - 3,972 34 4,006
Amounts due from related parties 75 192 Selling expenses 21,008 22,225 Balance at March  31, 2019 14,800,140 $ 15 $ 3,635 $ 105,393 $ 19,083 $ 394 $ (9,253) $ 119,267 (1,451) $ 117,816
Total Current Assets 184,262 218,864 General and administrative expenses 7,529 7,674
Total operating expenses 28,537 29,899
NONCURRENT ASSETS
Intangible assets, net 5,046 4,962 INCOME FROM OPERATIONS 821 1,446
Property and equipment, net 29,135 28,445
Operating lease right-of-use assets 64,549 - OTHER INCOME (EXPENSE)
Total Non-Current Assets 98,730 33,407 Interest income 207 326
TOTAL ASSETS $ 282,992 $ 252,271 Interest expense (363) (564)
Other income (expenses) (295) 136
LIABILITIES AND STOCKHOLDERS' EQUITY Total other expenses (451) (102)
CURRENT LIABILITIES INCOME BEFORE INCOME TAX EXPENSE 370 1,344
Bank loans $ 28,839 $ 29,497
Accounts payable 51,470 78,412 INCOME TAX EXPENSE (825) (757)
Accounts payable and other payables – related parties 4,040 4,756
Other payables and accrued liabilities 13,769 21,958 NET INCOME(LOSS) (455) 587
Value added and other taxes payable 1,305 2,569 Net income(loss) attributable to the non-controlling interest (66) 228
Income tax payable 862 1,569 NET INCOME(LOSS) ATTRIBUTABLE TO THE COMPANY $ (521) $ 815
Current operating lease liabilities 55,434 -
Total Current Liabilities 155,719 138,761 NET INCOME(LOSS) $ (455) $ 587
Foreign currency translation gain 3,972 4,023
NONCURRENT LIABILITIES COMPREHENSIVE INCOME $ 3,517 $ 4,610
Deferred tax liabilities 330 354
Non-current operating lease liabilities 9,127 - Comprehensive loss attributable to the noncontrolling interest 100 270
TOTAL LIABILITIES 165,176 139,115
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY $ 3,617 $ 4,880
COMMITMENTS AND CONTINGENCIES EARNINGS(LOSS) PER SHARE:
Basic and diluted $ (0.04) $ 0.06
STOCKHOLDERS' EQUITY Weighted average number of shares outstanding Basic and diluted 14,800,140 14,795,992
Stockholders' equity:
Preferred stock ($0.001 par value, authorized 5,000,000 shares, no shares issued      and outstanding) - -
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,800,140 and      14,798,198 shares issued and outstanding As of March 31, 2019 and December      31, 2018, respectively) 15 15
Additional paid-in capital 3,635 3,627
Retained earnings 105,393 105,914
Statutory reserve 19,083 19,083
Accumulated other comprehensive income 394 (3,578)
Amounts due from related party (9,253) (10,354)
Total equity attributable to stockholders of the Company 119,267 114,707
Noncontrolling interest (1,451) (1,551)
Total Equity 117,816 113,156
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 282,992 $ 252,271

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONDENSED EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES Additional Retained Earnings Accumulatedother Amountsdue from Totalequityattributableto stockholders Non- EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME CONDENSED CONSOLIDATED STATEMENTS OF EQUITY Common Stock paid-in Statutory Comprehensive related of the controlling Total CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. Dollars, except share and per share data or otherwise stated) (In thousands of U.S. Dollars, except share and per share data or otherwise stated) (In thousands of U.S. Dollars, except share and per share data or otherwise stated) Shares Amount capital Unrestricted reserve income party Company Interest equity (In thousands of U.S. Dollars, except share and per share data or otherwise stated)
AS OF MARCH 31, 2019 AND DECEMBER 31, 2018 (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED) FOR THE THREE MONTHS ENDED March 31, 2019 AND 2018 (Unaudited) Balance at  January 1,  2018 14,795,992 $ 15 $ 3,620 $ 95,195 $ 17,794 $ 2,585 $ (15,449) $ 103,760 (1,062) $ 102,698 FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)
2019 2018 2019 2018 Additional Retained Earnings Accumulatedother Amountsdue from Totalequityattributableto stockholders Non- Net income (loss) - - - 815 - - - 815 (228) 587 2019 2018
ASSETS Common Stock paid-in Statutory Comprehensive related of the controlling Total Net cash paid to  related party under  counter guarantee  agreement - - - - - - (8,480) (8,480) - (8,480) CASH FLOWS FROM OPERATING ACTIVITIES
CURRENT ASSETS SALES $ 87,956 $ 92,785 Shares Amount capital Unrestricted reserve income party Company Interest equity Foreign currency  translation loss 4,023 - 4,023 (94) 3,929 Net income (loss) $ (455) $ 587
Cash and cash equivalents $ 57,876 $ 47,012 Balance at  January 1,  2019 14,798,198 $ 15 $ 3,627 $ 105,914 $ 19,083 $ (3,578) $ (10,354) $ 114,707 (1,551) $ 113,156 Balance at March  31, 2018 14,795,992 $ 15 $ 3,620 $ 96,010 $ 17,794 $ 6,608 $ (23,929) $ 100,118 (1,384) $ 98,734 Adjustments to reconcile net income to cash provided by operating activities:
Accounts receivable, net 57,595 86,527 COST OF SALES 58,598 61,440 Depreciation and amortization 2,225 2,537
Inventories 55,035 65,929 Stock issued   for compensation 1,942 0.004 8 - - - - 8 8 Loss from sale of property and equipment 52 4
Advances on inventory purchases 6,087 6,420 GROSS PROFIT 29,358 31,345 Net income (loss) - - - (521) - - - (521) 66 (455) Provision for obsolete inventories 1,824 1,626
Value added tax receivable 1,229 2,580 Net cash paid to  related party under  counter guarantee agreement - - - - - - 1,101 1,101 - 1,101 Deferred income tax (145) (234)
Other receivables and prepaid expenses 6,365 10,204 OPERATING EXPENSES Foreign currency  translation loss 3,972 - 3,972 34 4,006 Stock-based compensation 8 -
Amounts due from related parties 75 192 Selling expenses 21,008 22,225 Balance at March  31, 2019 14,800,140 $ 15 $ 3,635 $ 105,393 $ 19,083 $ 394 $ (9,253) $ 119,267 (1,451) $ 117,816 Changes in operating assets and liabilities
Total Current Assets 184,262 218,864 General and administrative expenses 7,529 7,674 Accounts receivable 31,027 28,466
Total operating expenses 28,537 29,899 Inventories 10,557 (129)
NONCURRENT ASSETS Value added tax receivable 1,406 1,895
Intangible assets, net 5,046 4,962 INCOME FROM OPERATIONS 821 1,446 Other receivables and prepaid expenses 3,975 832
Property and equipment, net 29,135 28,445 Advances on inventory purchases 490 (1,175)
Operating lease right-of-use assets 64,549 - OTHER INCOME (EXPENSE) Amounts due from related parties 103 (165)
Total Non-Current Assets 98,730 33,407 Interest income 207 326 Accounts payable (26,505) (17,944)
TOTAL ASSETS $ 282,992 $ 252,271 Interest expense (363) (564) Accounts payable and other payables- related parties (741) (653)
Other income (expenses) (295) 136 Other payables and accrued liabilities (9,565) (5,182)
LIABILITIES AND STOCKHOLDERS' EQUITY Total other expenses (451) (102) Value added and other taxes payable (2,788) (1,988)
Income tax payable (327) (670)
CURRENT LIABILITIES INCOME BEFORE INCOME TAX EXPENSE 370 1,344 Net cash provided by operating activities 11,141 7,807
Bank loans $ 28,839 $ 29,497
Accounts payable 51,470 78,412 INCOME TAX EXPENSE (825) (757) CASH FLOWS FROM INVESTING ACTIVITIES
Accounts payable and other payables – related parties 4,040 4,756 Purchases of property and equipment (2,131) (2,552)
Other payables and accrued liabilities 13,769 21,958 NET INCOME(LOSS) (455) 587 Net cash used in investing activities (2,131) (2,552)
Value added and other taxes payable 1,305 2,569 Net income(loss) attributable to the non-controlling interest (66) 228
Income tax payable 862 1,569 NET INCOME(LOSS) ATTRIBUTABLE TO THE COMPANY $ (521) $ 815 CASH FLOWS FROM FINANCING ACTIVITIES
Current operating lease liabilities 55,434 - Proceeds from bank loans 6,029 17,346
Total Current Liabilities 155,719 138,761 NET INCOME(LOSS) $ (455) $ 587 Repayment of bank loans (7,408) (14,780)
Foreign currency translation gain 3,972 4,023 Repayment of loans from related party 3,488 -
NONCURRENT LIABILITIES COMPREHENSIVE INCOME $ 3,517 $ 4,610 Advances to related party (2,163) (7,692)
Deferred tax liabilities 330 354 Net cash used in financing activities (54) (5,126)
Non-current operating lease liabilities 9,127 - Comprehensive loss attributable to the noncontrolling interest 100 270
TOTAL LIABILITIES 165,176 139,115 EFFECT OF EXCHANGE RATE CHANGES ON CASH 1,908 2,172
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY $ 3,617 $ 4,880
COMMITMENTS AND CONTINGENCIES EARNINGS(LOSS) PER SHARE: NET INCREASE IN CASH AND CASH EQUIVALENTS 10,864 2,301
Basic and diluted $ (0.04) $ 0.06
STOCKHOLDERS' EQUITY Weighted average number of shares outstanding Basic and diluted 14,800,140 14,795,992 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 47,012 62,876
Stockholders' equity:
Preferred stock ($0.001 par value, authorized 5,000,000 shares, no shares issued      and outstanding) - - CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 57,876 $ 65,177
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,800,140 and      14,798,198 shares issued and outstanding As of March 31, 2019 and December      31, 2018, respectively) 15 15
Additional paid-in capital 3,635 3,627 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Retained earnings 105,393 105,914
Statutory reserve 19,083 19,083 Cash paid during the period for:
Accumulated other comprehensive income 394 (3,578) Interest $ 363 $ 564
Amounts due from related party (9,253) (10,354) Income taxes $ 126 $ 1,938
Total equity attributable to stockholders of the Company 119,267 114,707
Noncontrolling interest (1,451) (1,551)
Total Equity 117,816 113,156
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 282,992 $ 252,271

 

Cision View original content:http://www.prnewswire.com/news-releases/ever-glory-reports-first-quarter-2019-financial-results-300849590.html

SOURCE Ever-Glory International Group, Inc.

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