Delta Apparel Added to the Russell 2000® Index
GREENVILLE, S.C., June 27, 2016 (GLOBE NEWSWIRE) -- Delta Apparel, Inc. (NYSE:DLA) today announced that is has been added to the Russell 2000® Index. The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity market. Each June, Russell realigns its equity indexes to reflect market changes in the largest U.S. listed stocks by market capitalization. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
Delta Apparel's inclusion in the Russell 2000® index follows a year of solid performance. During the 12 months ended April 2, 2016, the Company's operating profit increased to $20.2 million or 4.6% of net sales from $2.3 million or 0.5% of net sales in the prior 12 months and diluted earnings increased to $1.60 per share from $0.10 per share in the prior 12 months. The quarter ended April 2, 2016, marked the fourth consecutive quarter in which Delta Apparel reported margin expansion and improved profitability.
Delta Apparel's strong operating performance was driven in part by the successful implementation of strategic initiatives announced in the past 18 months. These initiatives include streamlining the Company's administrative workforce; rationalizing its business units, product lines and sales channels to better focus on areas most strategic to the business; and enhancing its manufacturing platform to increase capacity and improve product flexibility. The result has been higher demand for Delta Apparel products, lower manufacturing costs, significant margin expansion and increased profitability.
The implementation of margin and profit improvement initiatives has continued into fiscal 2016. During the first half of the year, Delta Apparel expanded its production capabilities into open-width fabrics, which should reduce reliance on purchased fabric, enhance customer service, expand product offerings, and leverage fixed cost of internal production. In addition, Delta Apparel recently announced a further manufacturing realignment aimed at maximizing production at the Company’s lower-cost Honduras facility and eliminating duplicative fixed costs. Once completed, the realignment is expected to significantly lower production costs, improve gross margins and increase earnings by up to $0.70 per diluted share.
Robert W. Humphreys, Delta Apparel, Inc.’s Chairman and Chief Executive Officer, commented, “The Company’s recent strong performance is a testament to the impact of the strategic initiatives we announced 18 months ago and our team’s ability to execute on them. While conditions in the retail apparel marketplace remain difficult, we have improved our business both financially and operationally. Although there is a lot of work to be done in the coming months to complete the newly announced manufacturing initiatives, we are excited about the positive impact it should have on our results for fiscal year 2017 and beyond.”
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its operating subsidiaries, M. J. Soffe, LLC, Junkfood Clothing Company, Salt Life, LLC and Art Gun, LLC, is an international design, marketing, manufacturing, and sourcing company that features a diverse portfolio of lifestyle basic and branded activewear apparel and headwear. The Company specializes in selling casual and athletic products across distribution tiers, including specialty stores, boutiques, department stores, mid-tier and mass chains, and the U.S. military. The Company’s products are made available direct-to-consumer on its websites at www.soffe.com, www.junkfoodclothing.com, www.saltlife.com and www.deltaapparel.com. The Company's operations are located throughout the United States, Honduras, El Salvador, and Mexico, and it employs approximately 7,900 people worldwide. Additional information about the Company is available at www.deltaapparelinc.com.
Cautionary Note Regarding Forward Looking Statements
Statements and other information in this press release that are not reported financial results or other historical information are forward-looking statements subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. These are based on our expectations and are necessarily dependent upon assumptions, estimates and data that we believe are reasonable and accurate but may be incorrect, incomplete or imprecise. Forward-looking statements are also subject to a number of business risks and uncertainties, any of which could cause actual results to differ materially from those set forth in or implied by the forward-looking statements. The risks and uncertainties include, among others, the volatility and uncertainty of cotton and other raw material prices; the general U.S. and international economic conditions; deterioration in the financial condition of our customers and suppliers and changes in the operations and strategies of our customers and suppliers; the competitive conditions in the apparel and textile industries; the inability to successfully implement certain strategic initiatives; our ability to predict or react to changing consumer preferences or trends; pricing pressures and the implementation of cost reduction strategies; changes in the economic, political and social stability of our offshore locations; our ability to retain key management; the effect of unseasonable weather conditions on purchases of our products; significant changes in our effective tax rate; restrictions on our ability to borrow capital or service our indebtedness; interest rate fluctuations increasing our obligations under our variable rate indebtedness; the ability to raise additional capital; the ability to grow, achieve synergies and realize the expected profitability of acquisitions; the volatility and uncertainty of energy and fuel prices; material disruptions in our information systems related to our business operations; data security or privacy breaches; significant interruptions within our distribution network; changes in or our ability to comply with safety, health and environmental regulations; significant litigation in either domestic or international jurisdictions; the ability to protect our trademarks and other intellectual property; the ability to obtain and renew our significant license agreements; the impairment of acquired intangible assets; changes in ecommerce laws and regulations; changes to international trade regulations; changes in employment laws or regulations or our relationship with our employees; cost increases and reduction in future profitability due to recent healthcare legislation; foreign currency exchange rate fluctuations; violations of manufacturing or employee safety standards, labor laws, or unethical business practices by our suppliers and independent contractors; the illiquidity of our shares; price volatility in our shares and the general volatility of the stock market; and the costs required to comply with the regulatory landscape regarding public company governance and disclosure; and other risks described from time to time in our reports filed with the Securities and Exchange Commission. Accordingly, any forward-looking statements do not purport to be predictions of future events or circumstances and may not be realized. Further, any forward-looking statements are made only as of the date of this press release and we do not undertake publicly to update or revise the forward-looking statements even if it becomes clear that any projected results will not be realized.
Company Contact: Deborah Merrill Chief Financial Officer (864) 232-5200 x6620 Investor Relations Contact: Sally Wallick, CFA (404) 806-1398 investor.relations@deltaapparel.com
Released June 27, 2016