Georgia | ||
(State or Other Jurisdiction of Incorporation) | ||
1-15583 | 58-2508794 | |
(Commission File Number) | (IRS Employer Identification No.) |
322 South Main Street, Greenville, South Carolina | 29601 | |
(Address of principal executive offices) | (Zip Code) |
(864) 232-5200 | ||
(Registrant's Telephone Number Including Area Code) |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging growth company |
¨ | þ | ¨ | ¨ | ¨ |
(Do not check if a smaller reporting company) |
Exhibit Number | Description |
Press release issued by Delta Apparel, Inc. on November 15, 2018. |
DELTA APPAREL, INC. | ||
Date: | November 15, 2018 | /s/ Deborah H. Merrill |
Deborah H. Merrill | ||
Chief Financial Officer & President, Delta Group | ||
Company Contact: | Deborah Merrill | |
(864)232-5200 x 6620 | ||
investor.relations@deltaapparel.com | ||
Investor Relations and Media Contact: ICR, Inc. | Tom Filandro/Caitlin Morahan | |
(203)682-8200 | ||
Investors: | Tom.Filandro@icrinc.com/ Caitlin.Morahan@icrinc.com | |
Media: | Jessica Liddell | |
(203)682-8208 | ||
DLAPR@icrinc.com |
• | Net sales were $92.9 million, up 2% from $91.3 million in the prior year fourth quarter. The Delta Group drove the sales increase, with revenue up 4%, partially offset by lower sales in the Salt Life Group. |
• | Gross profit was $19.2 million, up 15% from $16.7 million in the prior year fourth quarter. Gross margin improved 240 basis points to 20.6% compared to 18.2% in the prior year period. |
• | Selling, general and administrative ("SG&A") expenses increased $2.4 million to $17.3 million, or 18.6% of sales, compared to $14.9 million, or 16.3% of sales, in the prior year fourth quarter. The prior year fourth quarter included benefit from the earlier than anticipated exit from certain lease liabilities in California. |
• | Operating income was $3.5 million, up 50% from $2.3 million in the prior year fourth quarter. Delta Group operating income was $6.8 million, up 81% from $3.7 million in the prior year fourth quarter. Salt Life Group operating income was $0.5 million, down 38% from $0.7 million in the prior year fourth quarter. |
• | Net income was $3.1 million, an increase of $1.0 million from $2.1 million in the prior year fourth quarter. |
• | Diluted earnings per share increased 59% to $0.43 from $0.27 in the prior year fourth quarter. |
• | Net sales were $395.5 million, up 3% from $385.1 million in fiscal year 2017. Excluding $15.6 million of sales in the prior fiscal year from the Junkfood Clothing business, which was sold in March 2017, net sales increased 7% compared to the prior year. Delta Group net sales were $356.0 million, up 9% from $326.6 million in fiscal year 2017. Salt Life Group net sales were $39.4 million compared to $58.5 million in the prior year, with the decline due to the since-divested Junkfood business and other strategic shifts in non-core business. Sales in our Salt Life brand were up 2.4% for the year, driven from the recent wins with national retailers and our direct-to-consumer business, partially offset by softness with independent retailers, which were hurt by the hurricanes a year ago and again this year. |
• | Gross profit was $82.0 million, up 2% from $80.7 million in fiscal year 2017. Gross margins improved in both the Delta Group and Salt Life Group, but declined 30 basis points overall from the stronger mix of Delta Group sales. |
• | SG&A expenses improved to 16.9% of sales, or $67.0 million, compared to 17.5% of sales, or $67.4 million in fiscal year 2017. |
• | Operating income was $17.5 million, up 8% from $16.2 million in fiscal year 2017. Delta Group operating income was $26.1 million, up 12% from $23.3 million in fiscal year 2017 and Salt Life Group operating income was comparable with the prior year at $4.8 million. |
• | Net income was $1.3 million in fiscal year 2018 but, adjusted for the $10.7 million tax expense associated with the recent tax reform legislation, was $12.0 million, compared to $10.5 million in fiscal year 2017, which included the gain on the sale of the Junkfood business realized in the second quarter of fiscal year 2017. |
• | Diluted earnings per share were $0.18 compared to $1.33 in fiscal year 2017. Adjusting for the $1.44 per share impact of tax reform in fiscal 2018 and for the $0.11 benefit on the sale of Junkfood in the prior year, adjusted earnings per diluted share were $1.62, a 33% improvement from the $1.22 adjusted earnings per diluted share in fiscal year 2017. |
SELECTED FINANCIAL DATA: | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
Sep 29, 2018 | Sep 30, 2017 | Sep 29, 2018 | Sep 30, 2017 | |||||||||||||
Net Sales | $ | 92,922 | $ | 91,327 | $ | 395,450 | $ | 385,082 | ||||||||
Cost of Goods Sold | 73,769 | 74,663 | 313,429 | 304,360 | ||||||||||||
Gross Profit | 19,153 | 16,664 | 82,021 | 80,722 | ||||||||||||
Selling, General and Administrative | 17,317 | 14,884 | 66,969 | 67,408 | ||||||||||||
Other Income, Net | (1,622 | ) | (557 | ) | (2,351 | ) | (2,865 | ) | ||||||||
Operating Income | 3,458 | 2,337 | 17,403 | 16,179 | ||||||||||||
Interest Expense, Net | 1,507 | 1,143 | 5,713 | 5,011 | ||||||||||||
Income Before Provision for Income Taxes | 1,951 | 1,194 | 11,690 | 11,168 | ||||||||||||
(Benefit From) Provision for Income Taxes | (1,124 | ) | (905 | ) | 10,460 | 657 | ||||||||||
Consolidated Net Earnings | 3,075 | 2,099 | 1,230 | 10,511 | ||||||||||||
Net Loss Attributable to Non-Controlling Interest | (32 | ) | — | (107 | ) | — | ||||||||||
Net Earnings Attributable to Shareholders | $ | 3,107 | $ | 2,099 | $ | 1,337 | $ | 10,511 | ||||||||
Weighted Average Shares Outstanding | ||||||||||||||||
Basic | 7,018 | 7,387 | 7,149 | 7,531 | ||||||||||||
Diluted | 7,304 | 7,713 | 7,425 | 7,882 | ||||||||||||
Net Income per Common Share | ||||||||||||||||
Basic | $ | 0.44 | $ | 0.28 | $ | 0.19 | $ | 1.40 | ||||||||
Diluted | $ | 0.43 | $ | 0.27 | $ | 0.18 | $ | 1.33 | ||||||||
Sep 29, 2018 | Sep 30, 2017 | |||||||||||||||
Current Assets | ||||||||||||||||
Cash | $ | 460 | $ | 572 | ||||||||||||
Receivables, Net | 46,879 | 47,557 | ||||||||||||||
Income Tax Receivable | 38 | 352 | ||||||||||||||
Inventories, Net | 174,983 | 174,551 | ||||||||||||||
Prepaids and Other Assets | 3,062 | 4,662 | ||||||||||||||
Total Current Assets | 225,422 | 227,694 | ||||||||||||||
Noncurrent Assets | ||||||||||||||||
Property, Plant & Equipment, Net | 52,114 | 42,706 |
Goodwill and Other Intangibles, Net | 53,715 | 36,068 | ||||||||||||||
Deferred Income Taxes | 1,374 | 5,002 | ||||||||||||||
Investment in Joint Venture | 8,980 | 4,140 | ||||||||||||||
Other Noncurrent Assets | 2,004 | 2,192 | ||||||||||||||
Total Noncurrent Assets | 118,187 | 90,108 | ||||||||||||||
Total Assets | $ | 343,609 | $ | 317,802 | ||||||||||||
Current Liabilities | ||||||||||||||||
Accounts Payable and Accrued Expenses | $ | 64,750 | $ | 64,039 | ||||||||||||
Current Portion of Contingent Consideration | 638 | — | ||||||||||||||
Current Portion of Capital Lease Financing | 3,846 | 848 | ||||||||||||||
Current Portion of Long-Term Debt | 6,577 | 7,548 | ||||||||||||||
Total Current Liabilities | 75,811 | 72,435 | ||||||||||||||
Noncurrent Liabilities | ||||||||||||||||
Long-Term Taxes Payable | 4,259 | — | ||||||||||||||
Long-Term Contingent Consideration | 9,904 | 1,600 | ||||||||||||||
Long-Term Capital Lease Financing | 9,302 | 2,519 | ||||||||||||||
Long-Term Debt | 92,083 | 85,306 | ||||||||||||||
Deferred Income Taxes | 2,132 | — | ||||||||||||||
Other Noncurrent Liabilities | — | 55 | ||||||||||||||
Total Noncurrent Liabilities | 117,680 | 89,480 | ||||||||||||||
Common Stock | 96 | 96 | ||||||||||||||
Additional Paid-In Capital | 61,979 | 61,065 | ||||||||||||||
Equity Attributable to Non-Controlling Interest | 93 | — | ||||||||||||||
Retained Earnings | 128,695 | 127,358 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 136 | (35 | ) | |||||||||||||
Treasury Stock | (40,881 | ) | (32,597 | ) | ||||||||||||
Equity Attributable to Delta Apparel, Inc. | 150,118 | 155,887 | ||||||||||||||
Total Liabilities and Equity | $ | 343,609 | $ | 317,802 |
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