Delta Apparel Updates Preliminary Fourth Quarter and Full Year Results
November 08 2019 - 7:26AM
Delta Apparel, Inc. (NYSE American: DLA), a leading provider of
core activewear and lifestyle apparel products, today updated its
previously announced preliminary results for the 2019 fourth
quarter and fiscal year ended September 28, 2019.
The Company now anticipates overall net sales
for the fourth quarter of its 2019 fiscal year to be up 16.2% to
$108.0 million from $92.9 million in the prior year period. This
compares to the Company’s preliminary expectation for overall net
sales of $104 to $106 million for the fourth quarter. The Company
also expects to report fourth quarter earnings per diluted share
within a range of $0.46 to $0.49 compared to $0.43 in the prior
year period.
For the full year, the Company expects overall
net sales of $431.7 million, exceeding its prior preliminary
expectation of $428 to $430 million and well above overall net
sales of $395.5 million in the prior year. The Company also expects
to report full year earnings per diluted share within a range of
$1.13 to $1.16. Adjusting for the $0.31 per diluted share
expense the Company took in its first fiscal quarter related to
litigation surrounding a 2016 bankruptcy of a significant customer
and the $0.10 per diluted share benefit arising in the Company’s
third quarter from a favorable settlement of a commercial
litigation matter, the adjusted earnings are expected to be in the
range of $1.34 to $1.37 per diluted share.
Robert W. Humphreys, Delta Apparel, Inc.’s
Chairman and Chief Executive Officer, commented, “We are extremely
pleased to see our sales come in above expectations and our strong
overall performance for both the quarter and full year. We
achieved positive top-line growth during the quarter across all of
our businesses and both of our segments closed out the year with
sales growth. Our gross margins expanded sequentially through
the year, and we leveraged our growth to deliver solid
profitability for our shareholders.”
Mr. Humphreys added, “We see a variety of
strategic growth opportunities across our business and our team
remains focused on the initiatives we have in place to take
advantage of them. In addition to the accelerating momentum in our
DTG2Go and Salt Life businesses, we are excited to announce our
plans to launch a full-service, vertical distributor model in our
Activewear business in 2020. This will include a broad
offering of nationally-recognized branded products comprised of
polos, outerwear, headwear and accessories. We believe this
additional go-to-market strategy can become a game-changer for us
and for our shareholders as it grows over time, and we look forward
to discussing it in more detail on our earnings call later this
month.”
Fourth Quarter and Full Year Fiscal 2019 Results on
November 21, 2019
Final and complete financial results for the
fiscal year 2019 fourth quarter and full year ended September 28,
2019, will be released after the market close on November 21,
2019. 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 1-800-458-4121. If calling from outside
the United States, please dial 1-323-794-2093. 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 December 21, 2019. To access the telephone
replay, participants should dial toll-free 1-844-512-2921.
International callers can dial 1-412-317-6671. The access
code for the replay is 6600025.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its operating
subsidiaries, Salt Life, LLC, M. J. Soffe,
LLC, and DTG2Go, LLC, is an international design,
marketing, manufacturing, and sourcing company that features a
diverse portfolio of core activewear and lifestyle apparel and
related accessory products. The Company sells casual and
athletic products through a variety of distribution channels and
distribution tiers, including department stores, mid and mass
channels, e-retailers, sporting goods and outdoor retailers,
independent and specialty stores, and the U.S.
military. The Company’s products are also made
available direct-to-consumer at its branded retail stores and 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 8,300 people worldwide. Additional
information about the Company is available
at www.deltaapparelinc.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release may contain “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 and availability; the general U.S. and international
economic conditions; 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; changing consumer
preferences or trends; our ability to successfully open and operate
new retail stores; changes in economic, political or social
stability at our offshore locations; significant interruptions
within our manufacturing or distribution facilities or other
operations; our ability to attract and retain key management;
significant changes in our effective tax rate; interest rate
fluctuations increasing our obligations under our variable rate
indebtedness; the ability to raise additional capital; the ability
to grow, achieve synergies and realize the expected profitability
of acquisitions; the volatility and uncertainty of energy, fuel and
other costs; material disruptions in our information systems;
compromises of our data security; significant litigation in either
domestic or international jurisdictions; recalls, claims and
negative publicity associated with product liability issues; the
ability to protect our trademarks and other intellectual property;
and the other factors set forth in the "Risk Factors" contained in
our most recent Annual Report 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, 864-232-5200 x6620
investor.relations@deltaapparel.com
Investor Relations and Media Contact: ICR, Inc.
Investors: Tom Filandro/Caitlin Morahan,
203-682-8200Tom.Filandro@icrinc.com /
Caitlin.Morahan@icrinc.com
Media: Jessica Liddell, 203-682-8208 DLAPR@icrinc.com
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