Delta Apparel Inc. reported earnings results for the second quarter and six months ended December 29, 2012. The company reported net sales for second quarter were $106.8 million, a 1.2% increase over 2012 second quarter sales of $105.5 million. Net income was $46,000, or $0.01 per diluted share compared with a loss in the 2012 second quarter of $13.6 million, or $1.61 per diluted share. This is a complicated comparison since, net income for fiscal 2012 second quarter and first half was negatively impacted by the onetime inventory markdown of $16.2 million that resulted from the unprecedented record high cotton costs combined with selling price discount in line of basic undecorated t-shirt. Capital spending was $2.2 million during the second quarter. Operating income was $846,000 compared to operating loss of $19,989,000 for the same period last year. Loss before
provision for income taxes was $41,000 compared to $20,981,000 for the same period last year.

For the six months, the company reported net sales increased 3.4% to $236.9 million compared to $229 million for the first six months of fiscal 2012. Net income was $3.6 million or $0.42 per diluted share, compared to a loss of $9.2 million or $1.09 per share in the prior year six month period. The total debt at December 2012 was $104.9 million compared to $120.5 million a year ago. Operating income was $6,682,000 compared to operating loss of $13,289,000 for the same period last year. Profit before provision for income taxes was $4,719,000 compared to loss before provision for income taxes of $15,174,000 for the same period last year.

For the year fiscal 2013, the company expected to record revenues in the range of $500 million to $510 million or about a 3% increase over 2012. Net income is expected to be in the range of $1.65 to $1.80 per diluted share. Effective tax rate for the full year 2013 was 23.5%.