Delta Apparel Announces Preliminary First Quarter Results
January 08 2018 - 7:00AM
Delta Apparel, Inc. (NYSE American:DLA), a leading provider of
basic and branded apparel, headwear and related accessories, today
announced preliminary results for its 2018 fiscal first quarter
ended December 30, 2017.
The Company expects overall net sales for the
first quarter of its 2018 fiscal year to be in the range of $88 to
$90 million, a 3-5% increase from the $85.3 million in revenue in
the prior year quarter, and 16-18% sales growth after adjusting for
the $9.4 million in revenue in the prior year quarter from the
since-divested Junkfood Clothing business. Notable to the
overall sales increase is that each business unit achieved
double-digit sales growth over the prior year. Driven
by the strong sales performance, the Company expects to show
pre-tax profitability in the fiscal 2018 first quarter, which is
typically its most challenging quarter, compared to a net loss of
$0.08 per diluted share in the prior year period.
“We are extremely pleased with our strong start
to fiscal year 2018,” said Robert W. Humphreys, Delta Apparel,
Inc.’s Chairman and Chief Executive Officer. “Our
double-digit revenue growth and expected profitability in our
seasonally slowest quarter reflects solid execution within each of
our businesses and builds upon our strong finish to fiscal year
2017. Our team has done an excellent job of expanding product
offerings, increasing distribution, and winning market share. Our
brands continue to resonate with consumers and the new Salt Life
and Soffe retail stores opened during the quarter provide exciting
brand-building and consumer awareness opportunities in key markets
for those businesses. We look forward to providing our full
results for the first quarter during our upcoming earnings
call.”
The Company continued to repurchase its shares
during the fiscal year 2018 first quarter, acquiring 145 thousand
shares on the open market at a cost of $3.0 million, or an average
price of $20.69 per share. As of December 30, 2017, the
Company had 7.2 million shares outstanding.
Conference CallFinal and
complete financial results for the fiscal year 2018 first quarter
ended December 30, 2017, will be released after the market close on
February 5, 2018. At 4:30 p.m. ET on that day, the Company
will also hold a conference call with senior management to discuss
its financial results and business outlook. The Company
invites you to join the call by dialing 800-281-7973. If
calling from outside the United States, please dial
323-794-2093. A live webcast of the conference call will be
available at www.deltaapparelinc.com. Please visit the
website at least 15 minutes early to register for the
teleconference webcast and download any necessary software. A
replay of the call will be available through March 5, 2018.
To access the telephone replay, participants should dial toll-free
844-512-2921. International callers can dial
412-317-6671. The access code for the replay is 9469905.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its operating
subsidiaries, M. J. Soffe, LLC, Salt Life, LLC and Art Gun, LLC, is
an international design, marketing, manufacturing, and sourcing
company that features a diverse portfolio of lifestyle basic and
branded activewear apparel, headwear and related accessories.
The Company specializes in selling casual and athletic products
across distribution tiers, including specialty stores, boutiques,
department stores, mid-tier and mass chains, and the U.S.
military. The Company’s products are made available
direct-to-consumer on its websites at www.saltlife.com,
www.coastapparel.com, www.soffe.com, and
www.deltaapparel.com. The Company's operations are located
throughout the United States, Honduras, El Salvador, and Mexico,
and it employs approximately 7,700 people worldwide. Additional
information about the Company is available at
www.deltaapparelinc.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains “forward-looking”
statements that involve risks and uncertainties. Any number
of factors could cause actual results to differ materially from
anticipated or forecasted results, including, but not limited to,
the volatility and uncertainty of cotton and other raw material
prices, the general U.S. and international economic conditions, the
competitive conditions in the apparel industry, restrictions on our
ability to borrow capital or service our indebtedness,
deterioration in the financial condition of our customers and
suppliers and changes in the operations and strategies of our
customers and suppliers, our ability to predict or react to
changing consumer preferences or trends, our ability to
successfully open and operate new retail stores in a timely and
cost-effective manner, pricing pressures and the implementation of
cost reduction strategies, changes in economic, political or social
stability at our offshore locations, disruptions at our
manufacturing and other facilities, our ability to attract and
retain key management, the effect of unseasonable or significant
weather conditions on purchases of our products, and other factors
set forth in the "Risk Factors" contained in our Annual Reports on
Form 10-K filed with the Securities and Exchange
Commission. Except as may be required by law, Delta Apparel,
Inc. expressly disclaims any obligation to update these
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events.
Company
Contact:
Deborah Merrill Chief Financial Officer(864) 232-5200 x6620
Investor Relations Contact:
Sally Wallick, CFA(404)
806-1398investor.relations@deltaapparel.com
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