Delta Apparel Inc. Reports Earnings Results for the Second Quarter and Six Months Ended December 29, 2012; Provides Earnings Guidance for the Full Fiscal Year 2013
January 28, 2013 at 04:30 pm
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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%.
Delta Apparel, Inc. is a vertically integrated, international apparel company. The Company designs, manufactures, sources, and market a diverse portfolio of core activewear and lifestyle apparel products under its primary brands of Salt Life, Soffe, and Delta. It operates through two segments: Delta Group and Salt Life Group. The Delta Group segment consists of its business units primarily focused on activewear styles: DTG2Go and Delta Activewear. The Salt Life Group segment comprises its Salt Life business, which is built on the authentic, aspirational Salt Life lifestyle brand. Delta Activewear is a preferred supplier of activewear apparel to regional and global brands, as well as direct-to-retail and wholesale markets. It also specializes in selling casual and athletic products through a variety of distribution channels and tiers. Its On-Demand DC digital solution provides retailers and brands with immediate access to utilize DTG2Goâs network of print and fulfillment facilities.
Delta Apparel Inc. Reports Earnings Results for the Second Quarter and Six Months Ended December 29, 2012; Provides Earnings Guidance for the Full Fiscal Year 2013