Delta Galil Q2 operating income grows 11% to $15.5mn

29 Jul '14

3 min read

Delta Galil Industries, Ltd., the global manufacturer and marketer of branded and private label apparel products for men, women and children, reported its financial results for the second quarter and six months ended June 30, 2014.

Highlights:

-Sales increased to $249.2 million in the 2014 second quarter, up 6% from the same period of 2013.

-Delta Galil delivered its 19th consecutive quarter of year-over-year organic sales growth.

-Operating income was $15.5 million in the 2014 second quarter, growing 11% from the comparable amount a year ago.

-EBITDA was $19.9 million or 8.0% of sales in the 2014 second quarter, increasing 9% compared with $18.3 million or 7.8% of sales in the 2013 second quarter.

-Net income attributed to shareholders rose to $9.7 million in the 2014 second quarter, increasing 11% from the comparable amount of $8.8 million a year ago.

-Diluted earnings per share attributed to shareholders rose to $0.38 for the 2014 second quarter, up 9% from the comparable amount of $0.35 a year ago.

-Financial guidance for 2014 was reaffirmed: sales are expected to be $1,045 million-$1,075 million. Full-year 2014 EBITDA is expected to range between $95 million-$101 million. Full-year 2014 diluted EPS is expected to be $1.95- $2.14.

-The Board of Directors declared a dividend of $3.5 million or $0.141 per share, to be distributed on August 20, 2014. The determining and “ex-dividend” date will be August 6, 2014, per the Tel Aviv Stock Exchange.

-Strong balance sheet was highlighted by a record $336.3 million in equity as of June 30, 2014, and approximately $117 million in cash and equivalents.

The Company reported sales of $249.2 million for the second quarter of 2014, an increase of 6% from $234.4 million for the same quarter of 2013. Sales in the first six months of 2014 were $487.2 million, an increase of 6% from $461.6 million in the same period of 2013.

Operating income was $15.5 million for second quarter of 2014, up 11% from $14.0 million in the same quarter of 2013. For the first six months of 2014, operating income grew 19%, to $30.4 million from $25.5 million a year earlier.

The increase in operating income reflected both the rising sales and an expanding gross profit margin. Gross profit increased to 31.2% of sales in the second quarter and 30.8% in the first half of 2014, up from 29.5% and 29.0% in the respective periods a year ago. This was partly offset by higher selling and marketing expenses as Delta Galil invested in the growth of its business.

Net income attributable to shareholders was $9.7 million in the 2014 second quarter, compared to $8.8 million in the same quarter of 2013, an 11% increase. Diluted earnings per share attributed to shareholders rose to $0.38 for the 2014 second quarter, from $0.35 for the 2013 period.

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Delta Galil

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