Jerash Holdings (US), Inc. (NASDAQ:JRSH) Q2 2019 Earnings Conference Call Transcript
Nov 08, 2018 • 10:30 am ET
Greetings, and welcome to the Jerash Holdings Fiscal Second Quarter Results Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Mr. Matt Kreps of Darrow Associates, Investor Relations for Jerash Holdings. Thank you. You may begin.
Thank you, and good morning, everyone. Welcome to the Jerash Holdings' fiscal second quarter 2018 results conference call. With me today are Sam Choi, Chief Executive Officer; Richard Shaw, Chief Financial Officer; and Karl Brenza, Head of US Operations.
Today's call is being recorded and will be available for playback. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions)
(Forward-Looking Cautionary Statements)
We will be discussing non-GAAP measures on this call. A reconciliation of non-GAAP measures we discuss during this call is available as Appendix A to the press release we issued this morning.
I will now turn the call over to Sam Choi, Chief Executive Officer of Jerash. Please go ahead.
Hello, and thank you for joining us today. Jerash posted record quarter of $33.5 million in sales for the period ended September 30, 2018. This is the more than 21% increase year-over-year and see out guidance of $32 million. Even more exciting, we reported $6.6 million in adjusted EBITDA or $0.59 per share. We generated $8.9 million in cash flow from operations and converted working capital back to cash to increase our total cash and restricted cash guidance to more than $30 million.
We are also well positioned going into our second half and expect to report second half -- record second half revenue this year. Our guidance of $80 million to $82 million for the full year compares to approximately $30 million plus or minus than expected top line sales for the second half, an increase of about 50% year-over-year. This outstanding performance was the result of hard work by our team, and in particular our factory employees in Jordan, as they went above and beyond to meet very high customer standard.
This demand is filled by Jerash's reputation for high quality work, attractive manufacturing costs and tariff free status due to our location in Jordan. In short, we believe working with Jerash is a significant source of epic culture for our customers. We are already in conversation with separate customers asking for additional capacity allocations in this year's first half.
And I would like to reiterate our strong commitment to our -- to the four pillars of our growth strategy we shared previously, which are continued organic growth, enhanced production efficiency, substantial capacity expansion, and opportunistic acquisition of complementary businesses. We are executing very well on the first two points through the first six months of the year. We are moving aggressively on the second two in order to meet customer demand for the next fiscal year