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JRSH Record Qtr 33.5 Mill in Rev''s $0.41 Per Share GAAP Net Income, $0.59 Per Share Adjusted EBITDA

Guides for 50% growth year over year 2nd half of this fiscal year.

Current market cap 92 Million with 11.1 Million shares out and 80% Insider owned leaving a very low float under 2.2 million shares.

Financials

Fiscal year 2018 sales 69.2 Million with net income of $10.4 million dollars includes $1.4 million in taxes due to U.S tax law changes.

Fiscal year 2019 6 months sales of 51.8 Million & adjusted EBITDA of $9.3 million dollars. with current guidance adjusted EBITDA for full year approximately $1.25 per share.

Current guidance for full year fiscal 2019 is 80 to 82 million dollars all Organic growth. Also keep in mind the seasonality of JRSH business with the first half getting over 60% of sales each year. Last year the 2nd half produced $20.3 million in sales & with projected $31 million for this years 2nd half giving JRSH 50% year over year growth in the next 2 quarterly reports. Again being all organic without any new acquisitions which will happen without a doubt according to management statements this is from today's press release

"In order to meet customer demand indications in excess of our expected capacity, we are aggressively advancing our strategic expansion efforts, including the addition of contract and joint venture capacity. Most importantly, we are evaluating strategic acquisition opportunities that would immediately expand our total annual production capacity in Jordan and abroad. We anticipate that as this capacity is added, it will immediately be filled by both existing and new customers proactively seeking to take advantage of Jerash's high-quality production and tariff-free status."


Balance Sheet

Incredible balance sheet boasting over $30 million in cash NO long term debt & this Qtr generated $8.9 million in cash.JRSH net tangible assets after debt growing each & every quarter. Going back to 2015 where it stood at $7.2 million dollars to our just released 2nd quarter where net tangible assets after debt totaled $49.8 million dollars or $4.49 a share. JRSH carries NO intangible assets or any goodwill on their balance sheet.

Guidance

as stated earlier the 15 to 18% growth is all organic but this will change very soon as they have orders in excess of their current capacity including the new 8% additional capacity coming online the beginning of 2019.

Management has expressed the urgency to get additional capacity online ASAP. With their hefty $30 million dollar cash position & the recent increase in shares authorized from 15 million to 30 million coupled with no long term debt leaves JRSH in a very strong position to add sizeable manufacturing capacity.

Gross margin guidance is 27 to 28% with basically fixed SG&A costs of approximately 2 million dollars a quarter.

Customers

JRSH has been producing high quality garments for tier 1 customers for some time & additionally being in a tariff free quota free restriction free zone to the U.S.A & last December added the E.U.

JRSH truly shines here boasting tier one customers most notably their largest customer is North Face outer wear followed by Columbia, Hanes, Nautica & others.

Tariff Free trade zone

JRSH benefits from exemptions from customs duties and import quotas due to the Jerash’s location in Al Tajamouat Industrial City, a QIZ in Amman, Jordan, and the free trade agreements with the United States and the EU. Under the trade agreement between Jordan and the U.S., goods produced in QIZ areas can directly access U.S. markets without tariff or quota restrictions if they satisfy certain criteria

How important is this ? " Sam Choi, Chairman of Jerash stated: ''By manufacturing in Jordan, Jerash's customers save millions in import duties each year, which we believe can be 30% or more of the cost to produce a garment item"

In October JRSH put out a press release relating to increased new order demand from current and multiple new customers in regards to tariffs on goods produced in Asia & specifically in China.

https://finance.yahoo.com/news/china-tariff-concerns-drive-increased-103000822.html

King of Jordan visit to Jerash manufacturing link

http://www.jordantimes.com/news/local/king-joins-workers-garment-factory-labour-day-celebration

Investor Presentation link

https://s3.amazonaws.com/cdn.irdirect.net/PIR/1093/2995/JRSH-IR-Presentation%20Redesign%20V3.pdf

Link to corporate overview video

https://irdirect.net/JRSH/corporate_document/2126

In closing at 6X's EPS with a pristine balance sheet and the tools to really add large growth very soon.trading at 1X's sales makes JRSH cheap by virtually any metric you wish to use. Having tariff free status saves their customers millions of dollars each year & with growing uncertainty & much higher costs in China no wonder business outlook is so strong. Management has been very attentive to shareholder questions with easy access via

IR spokesman Matt Kreps 214-597-8200

CFO Richard Shaw 315-727-6791