Despite this, 2012 fourth quarter unit shipments of Delta Tees were up 8.0 percent over the same period in 2011, although average selling prices declined 15.1 percent from the prior year fourth quarter.

For the 2012 fourth quarter, the Basics segment net sales were up slightly to $77.5 million compared with $77.1 million in the 2011 fourth quarter. The results were due to excellent gains in the FunTees business offset by lower selling prices in the catalog business.

Robert W. Humphreys, Delta Apparel’s Chairman and Chief Executive Officer, commented, “We are pleased Delta Apparel, Inc. was able to deliver yet another record-sales year. Unfortunately, the volatility in cotton prices and disruption this caused in wholesale and retail markets, and ultimately consumer demand, did not allow us to meet our profit objectives for the year.

“As these conditions return to normal, resulting in a more stable retail environment, we anticipate renewed growth and stronger margins in 2013. Various strategies have been initiated and other aggressive plans are under evaluation to better leverage our businesses and accelerate growth.

“We are encouraged with the performance our new Salt Life store that opened in March of this year. It is performing well and meeting our objectives to have an environment to show case the Salt Life brand to consumers and our retail partners.

“We have recently hired a sales and marketing manager for Salt Life on the West Coast, with the objective of assisting retailers with the marketing and promotion of Salt Life products, further expanding the geographical reach of the brand.

“Our belief is that cotton prices have stabilized to some degree; but at current levels we are remaining short on future cotton commitments in order to give the Company the most flexibility on future material costs.

“We also anticipate additional margin improvement as we gain traction with our strategies of leveraging our creative talent and retail relationships across our operating units. We plan to spend about $7 million for capital improvements in 2013, most of which will focus on screen print modernization and expansion, branding, and point of sales displays for branded products.

Mr. Humphreys concluded, “Delta Apparel is poised for additional organic growth in both of our business segments in 2013. Our product development, merchandising and marketing initiatives, combined with our diverse customer base across many channels of distribution should be the catalyst for achieving that goal and drive us toward our tenthconsecutive year of record sales.”

Fiscal 2013 Guidance

From Delta’s perspective, 2013 looks like a year in which we could make further sales gains and improvement in profitability. While there are many unknowns that are outside of our sphere of control, we remain cautiously optimistic about the opportunities ahead.

“The Company believes that it will achieve sales in the range of $500 to $510 million for fiscal 2013, or about a 3.0 percent increase over 2012. Net income should be in a range of $1.65 to $1.80 per diluted share.

Delta Apparel, Inc., along with its operating subsidiaries, M. J. Soffe, LLC, Junkfood Clothing Company, To The Game, LLC and Art Gun, LLC, is an international design, marketing, manufacturing, and sourcing company that features a diverse portfolio of lifestyle branded activewear apparel and headwear, and produces high quality private label programs.

Delta Apparel Inc.