Apparel supply chain manager Ever-Glory's total net sales up
17 Nov '11
5 min read
General and administrative expenses increased 37.7% to $3.4 million in the third quarter of 2011 from $2.5 million in the third quarter of 2010. As a percentage of total sales, general and administrative expenses decreased to 6.4% of total sales for the three months ended September 30, 2011, compared to 7.8% of total sales for the three months ended September 30, 2010. This decrease was due to the increase of our sales.
Income from operations for the third quarter of 2011 increased 123.0% to $3.5 million, compared to $1.6 million in the third quarter of 2010.
For the third quarter of 2011, GAAP net income attributable to the Company was $2.7 million, or $0.18 per diluted share, an increase of 48.0% from $1.8 million, or $0.12 per diluted share in the third quarter of 2010. GAAP net income attributable to the Company in the third quarter of 2010 include approximately $0.6 million, or $0.04 per diluted share, of non-cash income related to the change in fair value of a derivative liability.
The change in fair value of a derivative liability in the third quarter of 2011 was not significant. Excluding this non-cash items for the third quarter 2011 and 2010, non-GAAP diluted earnings per share were $0.18 in the third quarter of 2011 compared to $0.08 in the third quarter of 2010.
Balance Sheet and Cash Flow As of September 30, 2011, the Company had approximately $8.2 million of cash and cash equivalents, compared to approximately $3.7 million as of December 31, 2010. Ever-Glory had working capital of approximately $32.4 million as of September 30, 2011, and outstanding bank loans of approximately $30.1 million as of September 30, 2011.
Business Outlook For the fourth quarter of 2011, the Company anticipates total net sales of $52 to $66 million and net income of $2.3 to $3.3 million. For full year 2011, Ever-Glory anticipates total net sales between $200 and $220 million and net income between $8.5 and $10.5 million. The full year revenue forecast is comprised of $145 to $155 million in expected wholesale revenue and $55 to $65 million in expected revenue from retail operations.
Based in Nanjing, China, Ever-Glory International Group Inc. is a leading apparel supply chain manager and retailer in China. Ever-Glory is the first Chinese apparel Company listed on the American Stock Exchange, and has a focus on middle-to-high grade casual wear, outerwear, and sportswear brands.