Delta Galil Q1 sales zoom 35%

Highlights:
- Sales reached $227.3 million in the 2013 first quarter, up 35% from the same period of 2012.
- Delta Galil achieved its 14th consecutive quarter of year-over-year sales growth.
- Operating income was $11.6 million in the 2013 first quarter, an 81% increase from a year ago.
- Net income attributed to shareholders was $6.6 million in the 2013 first quarter, up 70% from the same 2012 period.
- Diluted earnings per share attributed to shareholders rose to $0.26 for the 2013 first quarter, a 63% increase from $0.16 a year ago.
- The Board of Directors declared a dividend of approximately $2.5 million, or $0.1019 per share, to be distributed on June 11, 2013. The determining and "ex-dividend" date will be May 29, 2013.
- Isaac Dabah, CEO of Delta Galil, noted: “The Company began 2013 on an extremely strong footing, delivering the highest first quarter sales in our history. We will continue to invest in product innovation, expanding our successful Schiesser acquisition and enhancing our capacity for continued profitable growth. We estimate that our 2013 results will be at the higher end of the forecast range."

Delta Galil reported quarterly sales of $227.3 million for the first quarter of 2013, up from $168.1 million for the same quarter last year, an increase of 35%. The continuation of the Company’s strong top-line trend reflected its acquisition of Schiesser Group in July 2012, increasing sales across all geographic regions, and higher sales to major customers in a broad range of categories.

Operating income was $11.6 million for the first quarter of 2013, increasing 81% from $6.4 million in the same quarter of 2012. A key contributor to higher operating income was the expansion of the gross profit margin to 25.0% from 18.6% comparing the first quarter of 2012. This was partly offset by higher selling, marketing, general and administrative expenses.

Net income attributable to shareholders was $6.6 million in the first quarter of 2013, compared to $3.9 million in the same quarter of 2012, a 70% increase. Diluted earnings per share attributed to shareholders increased by 63% and amounted to $0.26 for the 2013 first quarter, compared to $0.16 for the 2012 first quarter.

Management Comment:

Record First Quarter Sales Driven by Diverse Customers and Regions

Isaac Dabah, CEO of Delta Galil, stated: “The Company began 2013 on an extremely strong footing, delivering the highest first quarter sales in our history. Our top-line performance benefitted from organic growth mainly in the North American and the Israeli markets, as well as from the Schiesser acquisition.

"Basedon our excellent first quarter results, we expect that sales, EBIT, net income and EPS for 2013 will be at the higher end of the forecast ranges. At the same time, we will continue to invest in product innovation, expanding our successful Schiesser acquisition and enhancing our capacity for continued profitable growth.”

Delta Galil