![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Delta Apparel Inc | AMEX:DLA | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.07 | 0 | 01:00:00 |
Focus on Cost Restructuring and Capital Optimization Continues
Delta Apparel, Inc. (NYSE American: DLA), a leading provider of core activewear, lifestyle apparel, and on-demand digital print strategies, today announced financial results for its fiscal year 2024 first quarter ended December 30, 2023.
Chairman and Chief Executive Officer Robert W. Humphreys commented, “Many of the unfavorable market dynamics we saw across our business and the activewear industry last year persisted during our first quarter. We continued to take decisive action to improve our balance sheet and streamline our cost structure and operations. Our debt and inventory levels were down more than 20% year-over-year and we are very near completion of our plan to reduce our offshore manufacturing footprint down to two countries and consolidate production in our more efficient Central American platform. We completed similar consolidation work in our DTG2Go digital print business and significantly reduced other areas of our workforce to better align our cost structure with the lower demand we continue to see across much of our business.
Our Salt Life business registered sales growth for the quarter on the strength of its direct-to-consumer channels, and its recently opened retail location in Virginia has exceeded expectations to date. At Activewear, we continued to see sluggish overall activity across its three go-to-market channels and the excess global manufacturing capacity in the market continued to drive pricing pressure. On-quality performance and other operational metrics in our DTG2Go business continued to improve and shipments in our digital first business were above our internal plan, but overall demand during the holiday season came in below original forecasts.”
Mr. Humphreys concluded, “With the challenging start to our fiscal year and demand across most of our markets generally expected to be flat relative to last year, we remain tightly focused on managing liquidity and working capital across all aspects of our business and will continue to look for areas where we can generate efficiencies and further streamline operations. We will also continue to evaluate strategic options with the best interest of our shareholders in mind and remain committed to monetizing our real estate portfolio through a sale-leaseback transaction for the right value proposition.”
For the first quarter ended December 30, 2023:
Conference Call
On February 12, 2024, at 4:30 p.m. ET, the Company’s senior management will hold a conference call to discuss its financial results. The Company invites you to join the call by dialing 888-886-7786. If calling from outside the United States, the dial-in number is 416-764-8658. 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 12, 2024. 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 35636211.
Non-GAAP Financial Measures
Reconciliations of GAAP gross margins to non-GAAP gross margins, GAAP operating income to non-GAAP operating income, GAAP net income to non-GAAP net income, GAAP net income to non-GAAP EBITDA, GAAP net income to non-GAAP adjusted EBITDA, and GAAP operating income to non-GAAP EBITDA and adjusted EBITDA are presented in tables accompanying the selected financial data included in this release and provide useful information to evaluate the Company’s operational performance. A description of the amounts excluded on a non-GAAP basis are provided in conjunction with these tables. Non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP EBITDA and non-GAAP adjusted EBITDA should be evaluated in light of the Company’s financial statements prepared in accordance with GAAP.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its operating subsidiaries DTG2Go, LLC, Salt Life, LLC, and M.J. Soffe, LLC, is a vertically-integrated, international apparel company that designs, manufactures, sources, and markets a diverse portfolio of core activewear and lifestyle apparel products under the primary brands of Salt Life®, Soffe®, and Delta. The Company is a market leader in the direct-to-garment digital print and fulfillment industry, bringing proprietary DTG2Go technology and innovation to customer supply chains. The Company specializes in selling casual and athletic products through a variety of distribution channels and tiers, including outdoor and sporting goods retailers, independent and specialty stores, better department stores and mid-tier retailers, mass merchants and e-retailers, the U.S. military, and through its business-to-business e-commerce sites. The Company’s products are also made available direct-to-consumer on its websites at www.saltlife.com, www.soffe.com and www.deltaapparel.com as well as through its branded retail stores. The Company’s operations are located throughout the United States, Honduras, El Salvador, and Mexico, and it employs approximately 6,600 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, our ability to access capital or that it will be available on terms acceptable to us or at all; the general U.S. and international economic conditions; the impact of the COVID-19 pandemic and government/social actions taken to contain its spread on our operations, financial condition, liquidity, and capital investments, including recent labor shortages, inventory constraints, and supply chain disruptions; significant interruptions or disruptions within our manufacturing, distribution or other operations; deterioration in the financial condition of our customers and suppliers and changes in the operations and strategies of our customers and suppliers; the volatility and uncertainty of cotton and other raw material prices and availability; the competitive conditions in the apparel industry; 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; the ability to grow, achieve synergies and realize the expected profitability of acquisitions; changes in economic, political or social stability at our offshore locations or in areas in which we, or our suppliers or vendors, operate; our ability to attract and retain key management; the volatility and uncertainty of energy, fuel and related costs; material disruptions in our information systems related to our business operations; compromises of our data security; significant changes in our effective tax rate; 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; changes in international trade regulations; our ability to comply with trade regulations; changes in employment laws or regulations or our relationship with employees; negative publicity resulting from violations of manufacturing standards or labor laws or unethical business practices by our suppliers and independent contractors; the inability or refusal of suppliers or other third-parties, including those related to transportation, to fulfill the terms of their contracts with us; continued operating losses and restrictions on our ability to borrow capital or service our indebtedness; interest rate fluctuations increasing our obligations under our variable rate indebtedness; the ability to raise additional capital; the impairment of acquired intangible assets; foreign currency exchange rate fluctuations; the illiquidity of our shares; price volatility in our shares and the general volatility of the stock market; 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 and as updated in our subsequently filed Quarterly Reports on Form 10-Q. 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.
SELECTED FINANCIAL DATA:(In thousands, except per share amounts)
Three Months Ended
December 2023
December 2022
Net Sales
$
79,934
$
107,295
Cost of Goods Sold
71,187
93,672
Gross Profit
8,747
13,623
Selling, General and Administrative Expenses
18,614
18,870
Other Income, Net
(4,921
)
(2,621
)
Operating Loss
(4,946
)
(2,626
)
Interest Expense, Net
3,577
2,890
Loss Before Provision For (Benefit From) Income Taxes
(8,523
)
(5,516
)
Provision For (Benefit From) Income Taxes
10
(1,917
)
Consolidated Net Loss
(8,533
)
(3,599
)
Net Loss Attributable to Non-Controlling Interest
6
34
Net Loss Attributable to Shareholders
$
(8,527
)
$
(3,565
)
Weighted Average Shares Outstanding
Basic
7,003
6,954
Diluted
7,003
6,954
Net Loss per Common Share
Basic
$
(1.22
)
$
(0.51
)
Diluted
$
(1.22
)
$
(0.51
)
December 2023
September 2023
December 2022
Current Assets
Cash
$
377
$
187
$
327
Receivables, Net
34,488
47,868
61,514
Inventories, Net
196,348
212,365
258,891
Prepaids and Other Assets
3,526
2,542
4,114
Total Current Assets
234,739
262,962
324,846
Noncurrent Assets
Property, Plant & Equipment, Net
62,598
65,611
72,771
Goodwill and Other Intangibles, Net
49,822
50,391
61,324
Deferred Income Taxes
7,822
7,822
1,342
Operating Lease Assets
56,909
55,464
49,313
Investment in Joint Venture
9,751
10,082
9,045
Other Noncurrent Assets
3,263
2,906
2,800
Total Noncurrent Assets
190,165
192,276
196,595
Total Assets
$
424,904
$
455,238
$
521,441
Current Liabilities
Accounts Payable and Accrued Expenses
$
77,308
$
80,321
$
100,652
Income Taxes Payable
700
710
321
Current Portion of Finance Leases
8,246
8,442
8,603
Current Portion of Operating Leases
9,741
9,124
8,585
Current Portion of Long-Term Debt
117,275
16,567
9,514
Total Current Liabilities
213,270
115,164
127,675
Noncurrent Liabilities
Long-Term Taxes Payable
2,131
2,131
2,841
Deferred Income Taxes
-
-
2,232
Long-Term Finance Leases
12,007
14,029
18,465
Long-Term Operating Leases
48,259
47,254
42,015
Long-Term Debt
7,260
126,465
148,899
Total Noncurrent Liabilities
69,657
189,879
214,452
Common Stock
96
96
96
Additional Paid-In Capital
60,643
61,315
60,559
Equity Attributable to Non-Controlling Interest
(713
)
(707
)
(690
)
Retained Earnings
124,860
133,387
163,035
Accumulated Other Comprehensive Gain (Loss)
-
-
210
Treasury Stock
(42,909
)
(43,896
)
(43,896
)
Total Equity
141,977
150,195
179,314
Total Liabilities and Equity
$
424,904
$
455,238
$
521,441
Reconciliations of GAAP Net Loss to Non-GAAP Measures Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA"), Adjusted Net Loss, and Adjusted EBITDA Unaudited (in thousands) Reconciliation of GAAP Measure Net Loss to Non-GAAP Measures EBITDA, Adjusted Net Loss, and Adjusted EBITDA – Unaudited Three Months Ending December 2023 Net Loss
$
(8,527
)
Interest Expense, Net
3,577
Provision For Income Taxes
10
Delta Group Segment Depreciation and Amortization
3,041
Salt Life Group Segment Depreciation and Amortization
534
Unallocated Depreciation and Amortization
57
EBITDA
(1,308
)
Production Curtailment Costs (1)
1,348
Restructuring Costs (2)
813
Tax Impact
(216
)
Adjusted Net Loss
(6,582
)
Interest Expense, Net
3,577
Provision For Income Taxes
226
Delta Group Segment Depreciation and Amortization
3,041
Salt Life Group Segment Depreciation and Amortization
534
Unallocated Depreciation and Amortization
57
Adjusted EBITDA
$
853
Reconciliation of GAAP Measure Delta Group Segment Operating Income to Non-GAAP Measures Delta Group Segment EBITDA, Adjusted Delta Group Segment Operating Income, and Adjusted Delta Group Segment EBITDA – Unaudited Three Months Ending December 2023 Delta Group Segment Operating Income
$
492
Delta Group Segment Depreciation and Amortization
3,041
Delta Group Segment EBITDA
3,533
Production Curtailment Costs (1)
1,348
Restructuring Costs (2)
813
Adjusted Delta Group Segment Operating Income
2,653
Delta Group Segment Depreciation and Amortization
3,041
Adjusted Delta Group Segment EBITDA
$
5,694
Reconciliation of GAAP Measure Salt Life Group Segment Operating Loss to Non-GAAP Measure Salt Life Group Segment EBITDA – Unaudited Three Months Ending December 2023 Salt Life Group Segment Operating Loss
$
(2,130
)
Salt Life Group Segment Depreciation and Amortization
534
Salt Life Group Segment EBITDA
$
(1,596
)
(1) Production Curtailment Costs consist of unabsorbed fixed costs, temporary unemployment benefit payments, and other expense items resulting from the Company’s decision to reduce production levels to better align with the significantly reduced demand across the activewear industry due to high inventory levels stemming from the heavy replenishment activity following pandemic-related supply chain challenges. (2) Restructuring Costs consist of employee severance benefits paid in connection with the transition of our more expensive Mexico manufacturing capacity to our more efficient Central America manufacturing platform, employee severance benefits paid in connection with leadership restructuring, and additional cost items incurred from restructuring activities.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240212240772/en/
Company Contact: Justin Grow, 864-232-5200 x6604 investor.relations@deltaapparel.com Investor Relations Contact: ICR, Inc. Investors: Tom Filandro, 646-277-1235
1 Year Delta Apparel Chart |
1 Month Delta Apparel Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions