-- Catch-Luck generated pro forma consolidated net sales of $30.5 million,
net income of $2.3 million and diluted EPS of $0.02 for the first half
of 2007
NANJING, China, Sept. 6 /Xinhua-PRNewswire-FirstCall/ -- Ever-Glory International Group, Inc. (OTC Bulletin Board: EGLY) ("Ever-Glory"), a leading apparel manufacturer in the People’s Republic of China ("PRC"), today announced that it has completed the acquisition of Nanjing Catch-Luck Garments Co., Ltd. ("Catch-Luck").
The transaction was funded by a combination of $0.6 million in cash and $9.4 million in common stock. Upon completion of this transaction, Catch-Luck became a wholly-owned subsidiary of Ever-Glory.
"The acquisition of Catch-Luck increases our existing production capacity, expands our product lines and provides an additional source of revenue and income," said Mr. Yihua Kang, Chairman and Chief Executive Officer of Ever-Glory. "We expect to achieve greater economies of scale in the areas of production, administration and purchasing as we integrate the operations of our two companies."
Catch-Luck is primarily engaged in the manufacturing and sale of garments to China, Europe, Japan and the United States. Founded in 1995, Catch-Luck has more than 500 non-union employees with annual production capacity of 1.2 million garment pieces. It currently operates one factory spanning 6,000 square meters in the Nanjing Jiangning Economic and Technological Development Zone.
During the first half of 2007, Catch-Luck generated revenues of $9.7 million and net income of $1.2 million. Approximately 78% of revenues came from customers in Europe, 9% from customers in the U.S., 8% from customers in China and 4% from customers in Japan.
About Nanjing Catch-luck Garments Co., Ltd.
Nanjing Catch-luck Garments Co., Ltd. (the "Company") is a Chinese limited liability company. The Company is principally engaged in the manufacturing and sale of casual wear, sportswear, jackets, trousers and shorts for high to middle brands and international chain stores. It has a staff of more than 500 employees with an annual production capacity of 1.2 million garment pieces.
About Ever-Glory International Group, Inc.
Ever-Glory International Group is a U.S. publicly traded company engaged in international garment manufacturing for well-known middle- to high-grade casual, outer, and sportswear brands. The Company’s U.S. headquarters is based in Los Angeles, CA, although Ever-Glory also owns three full subsidiary companies, Goldenway Nanjing Garments Co. Ltd., Nanjing New-Tailun Garments Co, Ltd and Nanjing Catch-Luck Garments Co., Ltd., Ever-Glory has strategic business partners in countries including China, Europe and the U.S. The Company cooperates with well-respected garment retailer chains such as Itochu, Shinko, Debenhams, Next, C&A, Itoyokado and others in handling high- and middle-grade casual wear and sportswear. The Company entered into production and sales cooperation agreements with a number of internationally famous brands such as Matalan, Eddie Bauer, Best-Seller, BB Dakota and others. Ever-Glory employs more than 2,000 people. At present, the market distribution is segmented as 15 % in Japan, 54% in Europe, 27% in United States and 3% in China. For more information about Ever-Glory International Group, please visit: http://www.everglorygroup.com .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management’s current expectations. Such factors include, but are not limited to the Company’s ability to accurately complete product orders, coordinate product design with its customers, ability to expand and grow its distribution channels, political and economic factors in the People’s Republic of China, the company’s ability to find attractive acquisition candidates, dependence on a limited number of larger customers and other factors detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
-- FINANCIAL TABLE FOLLOWS --
EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED CONDENSED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2007
EGLY Catch-Luck Pro Forma Pro Forma
(Historical) (Historical) Adjustments Combined
NET SALES $21,006,831 $ 9,656,704 140,101 $30,523,434
COST OF SALES (17,880,051) (8,152,343) (140,101) (25,892,293)
GROSS PROFIT 3,126,780 1,504,361 4,631,141
OPERATING EXPENSES 1,651,008 380,865 2,031,873
INCOME FROM
OPERATIONS 1,475,772 1,123,496 2,599,268
OTHER INCOME
(EXPENSES) (253,028) 802 (252,226)
INCOME BEFORE
INCOME TAX EXPENSE 1,222,744 1,124,298 2,347,042
INCOME TAX EXPENSE (82,323) -- (82,323)
NET INCOME 1,140,421 1,124,298 2,264,719
OTHER COMPREHENSIVE
INCOME 362,080 88,626 450,706
COMPREHENSIVE
INCOME $ 1,502,501 $ 1,212,924 $ 2,715,425
Net income per
share - basic $ 0.03 $ 0.15 $ 0.05
Net income per
share - diluted $ 0.01 $ 0.15 $ 0.02
Weighted average
number of shares
outstanding during
the period - basic 40,805,091 7,391,305 48,196,396
Weighted average
number of shares
outstanding during
the period -
diluted 100,720,079 7,391,305 108,111,384
For more information, please contact:
Ever-Glory International Group, Inc.
Mr. Devin Jean, Corporate Secretary
Tel: +86-25-5209-6801
Email: jinqiu@ever-glory.com
CCG Elite Investor Relations
Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
