NEW YORK, June 30, 2017 (GLOBE NEWSWIRE) -- iFresh, Inc. (“iFresh” or “the Company”) (Nasdaq:IFMK), a leading Asian American grocery supermarket chain and online grocer in the United States, today reported audited financial results for the fiscal year ended March 31, 2017.
Fiscal 2017 Highlights:
- Total net sales decrease of 0.3% to $130.9 million from $131.2 million compared to fiscal 2016
- Retail segment net sales decrease of 5.0% to $106.8 million from $112.4 million compared to fiscal 2016
- Total wholesale segment net sales increase of 27.7% to $24.1 million from $18.9 million compared to fiscal 2016
- Gross margin increase to 21.3% from 20.3% in fiscal 2016
- Net income of $1.6 million or $0.13 per diluted share compared to $3.6 million or $0.30 in fiscal 2016
Long Deng, Chairman of the board of directors and CEO of iFresh, commented, “We are pleased to see strong results in the competitive environment of fiscal 2017. Retail store sales dipped because of non-recurring interruptions in one of our bigger stores, impacting net income, but net sales remained stable due to robust growth in our wholesale business. Gross margin increased due to improved efficiencies in our procurement system, and our cash position is strong.
We are also proud of our public listing through the business combination with E-Compass Acquisition Corporation. While this impacted net income through a significant increase in selling, general, and administrative expenses, becoming a publicly listed company adds tremendous intangible value to our brand. We look forward to carrying this momentum through fiscal 2018, during which we will continue to drive growth by refining our vertically-integrated model, expanding our store presence along the I-95 corridor, and further promoting our online and mobile platforms to reach more customers. We expect to have a promising future ahead as we gain importance in a niche market and evolve to become a major player. We look forward to sharing our progress with our investors in the coming months ahead.”
Fiscal Year 2017
In the fiscal year ended March 31, 2017, total net sales were $130.9 million, a decrease of 0.3% as compared to $131.2 million in the previous year. This was driven by a retail segment net sales decrease of 5.0% to $106.8 million from $112.4 million compared to fiscal 2016 and a total wholesale segment net sales increase of 27.7% to $24.1 million from $18.9 million compared to fiscal 2016.
Gross profit for 2017 increased by 4.8% to $27.9 million compared to $26.6 million in the prior year driven by growth and efficiencies in the wholesale business. Gross margin was 21.3% and 20.3% for the fiscal years 2017 and 2016, respectively.
SG&A expense was $25.7 million in fiscal 2017 compared to $20.7 million in the same period last fiscal year due to an increase in payroll and fees related to the NYM/E-Compass business combination.
Income from operations was $2.1 million compared to $5.9 million in fiscal 2016. Profit margin was 1.6% and 4.5% for the fiscal years 2017 and 2016, respectively.
Net income was $1.6 million or $0.13 per basic and diluted share in fiscal 2017 compared to $3.6 million or $0.30 per basic and diluted share in fiscal 2016.
As of March 31, 2017, the Company had cash and cash equivalents of $2.5 million, compared to $0.6 million as of March 31, 2016. Working capital was a positive $13.4 million, compared to a negative $3.3 million as at the end of fiscal 2016. As of March 31, 2017, the Company had $1.1 million of bank loans due within one year.
For the full year of 2017, net cash provided by operating activities was $2.6 million. Net cash used in investing activities was $10.6 million. Net cash provided by financing activities was $10.0 million.
In the coming months, as the Company continues to make investments in its business to expand, management expects its financial performance to remain stable. Costs may rise due to planned expansions, but these are expected to be offset in later quarters due to expected increases in sales. On a quarter-to-quarter basis, the Company expects to see slightly lower sales in its fiscal 2018 first quarter than in the previous quarter due to the impact of seasonality --the Company’s fiscal fourth quarter sales that concludes March 31st are typically sharply boosted by the Chinese Spring Festival, which in 2017 was celebrated at the end of January, and while the Dragon Boat Festival in June presents a sales bump, it does not present as sharp of a sales increase as the Spring Festival.
About iFresh, Inc.
iFresh Inc., headquartered in New York, New York, is a leading Asian American grocery supermarket chain and online grocer. With eight retail supermarkets along the US eastern seaboard and two in-house wholesale businesses strategically located in cities with a highly concentrated Asian population, the Company aims to satisfy the increasing demands of Asian Americans, whose purchasing power has been growing rapidly, for fresh and culturally unique produce, seafood and other groceries that are not found in mainstream supermarkets. With an in-house proprietary delivery network, online sales channel and strong relations with farms that produce Chinese specialty vegetables and fruits, iFresh is able to offer fresh, high-quality specialty perishables at competitive prices to a growing base of customers. For more information, please visit: http://www.ifreshmarket.com/.
This announcement contains forward-looking statements. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Words or phrases such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “will” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. Examples of forward-looking statements in this announcement include, but are not limited to, statements regarding our disclosure concerning the Company’s operations, cash flows, financial position and dividend policy.
Financial statements below:
|iFRESH INC. AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF INCOME|
|For the years ended|
|March 31,||March 31,|
|Net sales-related parties||9,050,553||6,203,277|
|Total net sales||130,876,760||131,225,224|
|Cost of sales||87,610,153||91,738,333|
|Cost of sales-related parties||8,162,545||5,520,917|
|Selling, general and administrative expenses||25,734,216||20,718,062|
|Income from operations||2,149,986||5,880,757|
|Interest expense, net||(303,894||)||(215,494||)|
|Income before income taxes||3,206,708||6,657,883|
|Income tax provision||(1,656,334||)||(3,016,874||)|
|Net income per share:|
|Weighted average shares outstanding:|
|iFRESH INC. AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|March 31,||March 31,|
|Cash and cash equivalents||$||2,508,362||$||551,782|
|Accounts receivable, net||2,272,011||1,814,533|
|Prepaid expenses and other current assets||981,017||473,608|
|Advances to related parties||14,852,083||-|
|Total current assets||30,410,457||11,040,480|
|Property and equipment, net||9,290,674||9,770,382|
|Intangible assets, net||1,300,001||1,433,333|
|Deferred income taxes||86,799||-|
|Advances to related parties||-||5,368,002|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Bank loans, current, net||1,144,568||30,185|
|Notes payable, current||262,578||208,059|
|Capital lease obligations, current||51,376||48,303|
|Other payables, current||501,213||654,175|
|Total current liabilities||17,030,333||14,352,304|
|Bank loans, non-current, net||12,779,838||3,561,609|
|Notes payable, non-current||379,376||424,291|
|Capital lease obligations, non-current||59,907||40,468|
|Other payables, non-current||34,800||37,800|
|Deferred income taxes, net||-||79,422|
|Commitments and contingencies|
|Preferred shares, $.0001 par value, 1,000,000 shares authorized; none issued.||-||-|
|Common stock, $0.0001 par value; 100,000,000 shares authorized, 14,103,033 and 12,000,000 shares issued and outstanding as of March 31, 2017 and 2016, respectively||1,410||1,200|
|Additional paid-in capital||9,075,025||9,445,346|
|Total shareholders’ equity||6,291,889||5,111,626|
|Total liabilities and shareholders’ equity||$||42,000,277||28,537,674|
|iFRESH INC. AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF CASH FLOWS|
|For the Years Ended|
|March 31,||March 31,|
|Cash flows from operating activities|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Allowance for bad debt||-||26,931|
|Deferred income taxes||(166,221||)||1,102,505|
|Loss on disposal of property and equipment||-||36,454|
|Changes in operating assets and liabilities:|
|Prepaid expenses and other current assets||(507,409||)||52,897|
|Net cash provided by operating activities||2,574,005||8,018,462|
|Cash flows from investing activities|
|Advances to related parties||(9,854,432||)||(5,368,002||)|
|Acquisition of property and equipment||(736,767||)||(1,961,225||)|
|Cash proceeds from acquisition of E-Compass||240||-|
|Net cash used in investing activities||(10,590,959||)||(7,329,227||)|
|Cash flows from financing activities|
|Payments on amount due to shareholder||-||(1,124,407||)|
|Borrowings against Term loan||15,000,000||-|
|Borrowings against lines of credit||200,000||3,612,138|
|Repayments on term loan||(3,791,795||)||-|
|Repayments on lines of credit borrowings||(208,719||)||(2,884,464||)|
|Borrowings on notes payable||-||167,658|
|Repayments on notes payable||(258,254||)||(335,139||)|
|Payments on capital lease obligations||(55,198||)||(67,977||)|
|Payment for debt issuance cost||(912,500||)||-|
|Net cash used in financing activities||9,973,534||(632,191||)|
|Net increase in cash and cash equivalents||1,956,580||57,044|
|Cash and cash equivalents at beginning of the year||551,782||494,738|
|Cash and cash equivalents at the end of the year||$||2,508,362||$||551,782|
|Supplemental disclosure of cash flow information|
|Cash paid for interest||$||304,483||$||218,619|
|Cash paid for income taxes||$||1,747,028||$||461,435|
|Supplemental disclosure of non-cash investing and financing activities|
|Capital expenditures funded by capital lease obligations||$||345,567||$||6,993|
Contact: ICR Inc. Rose Zu email@example.com Tel: 347-436-8368