Delta Apparel posts 5.3% sale rise in Q1 FY'13

“The market share gains realized in our basics segment during the first quarter are encouraging and our expectation is to build on this large base as the year progresses. We anticipate revenue growth at Junkfood, The Game and Art Gun during the remainder of the year, offset to some degree by sales declines in Soffe branded product at department stores.

“While we believe Delta will achieve a tenth consecutive year of record revenue growth, we also expect continued margin improvement driven by lower materials and energy costs and increased manufacturing efficiencies. Excellent progress has been made in leveraging our creative talent and retail relationships across all of our operating units.

"We are currently evaluating several strategies to better leverage our Soffe brand assets to accelerate growth, and have recently added a strong business-to-business platform aimed at gaining market position in the sporting goods channel. Our continued focus on information technology initiatives are designed to streamline business operations and enhance service levels to our customers.

“In addition to improving our profitability during the quarter, we took action to improve the Company’s balance sheet. We reduced debt by nearly $12 million compared to fiscal year-end 2012 and improved our days sales outstanding and inventory turns from the prior year. During the quarter, we repurchased nearly 73 thousand shares of Delta common stock, which we believe currently is an effective use of funds, especially since the stock has been trading below what we believe is its intrinsic value.”

Mr. Humphreys concluded, “We consider our fiscal 2013 first quarter an important start to meet our goals for the year. While there is a lot yet to be accomplished, we believe we are well positioned for further revenue growth and improved earnings.”

Fiscal 2013 Guidance

The Company believes that the guidance previously provided for fiscal 2013, inclusive of the previously mentioned $1.2 million first quarter charge, can be achieved. Based on anticipated net sales growth and higher unit volume leveraging fixed costs, the Company expects to reach record revenues in the range of $500 to $510 million for fiscal 2013, or about a three percent increase over 2012. Net income is expected to 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.