Delta Apparel Provides Preliminary Second Quarter Financial Results
DULUTH, Ga.--(BUSINESS WIRE)--Jan. 11, 2005--Delta Apparel, Inc. (AMEX: DLA), a marketer, manufacturer and distributor of activewear apparel, today announced preliminary financial results for its fiscal 2005 second quarter ended January 1, 2005.
The Company expects net sales for the second quarter of fiscal 2005 to be approximately $49 million, an increase of approximately 8% from the prior year's second quarter of $45.6 million. Net income is expected to be in the range of $1.0 to $1.2 million, or $0.25 to $0.28 per diluted share compared to a net loss of $0.1 million, or ($0.02) per diluted share in the prior year's second quarter. Based on these expected results for the second quarter ended January 1, 2005, the Company's trailing twelve months net income is estimated to be in the range of $2.76 to $2.79 per diluted share.
Delta Apparel will be reporting its second quarter fiscal 2005 results on Friday, January 28, 2005.
On January 5, 2005, Delta Apparel completed the sale of its yarn manufacturing plant in Edgefield, South Carolina to Parkdale America, LLC for $10 million. This accomplishes the Company's long-term yarn strategy of obtaining high quality, low cost yarn while reducing its working capital investment and eliminating the need for future capital expenditures in yarn manufacturing. The sale of the Edgefield Plant is expected to result in a financial gain of approximately $3.5 million, or $0.51 per diluted share. This gain will be recorded in the fiscal quarter ending April 2, 2005. In addition, Delta Apparel expects that the sale of the facility will allow it to lower its working capital by approximately $4.0 million.
Preliminary second quarter financial results are being reported in anticipation of the Company's participation at Integrated Corporate Relations' 7th Annual Xchange Conference. Delta Apparel's President and CEO, Robert W. Humphreys and Vice President and CFO, Herb Mueller, will deliver a presentation on behalf of the company on Thursday, January 13, 2005 at 5:00pm Eastern Time. Investors may access the presentation webcast at: http://www.corporate-ir.net/ireye/confLobby.zhtml?ticker=DLA&item_id=990733 (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)
Real Player or Windows Media Player is required to listen to the webcast and may be downloaded for free by accessing the enclosed webcast link.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its wholly owned subsidiary M. J. Soffe Co., is a marketer, manufacturer and distributor of high quality branded and private label activewear apparel. We specialize in selling a variety of casual and athletic activewear tops and bottoms, embellished and unembellished T-shirts, and fleece products for the ever-changing apparel market. We focus on our broad distribution of products, currently serving over 13,000 customers. We sell our products to screen printers, private label accounts, sporting goods stores, department stores and distributors. In addition, certain products are sold in college bookstores and to the U.S. Military. Our operations are in the United States, Honduras, Mexico and Costa Rica and we employ approximately 4,400 worldwide. Additional information on our company is available at www.deltaapparel.com.
Statements and other information in this press release that are not reported financial results or other historical information are forward-looking statements. 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, changes in the retail demand for apparel products, the cost of raw materials, competitive conditions in the apparel and textile industries, the relative strength of the United States dollar as against other currencies, changes in United States trade regulations, the discovery of unknown conditions (such as with respect to environmental matters and similar items) 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. 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.
CONTACT: Company Contact
Delta Apparel, Inc.
Herb Mueller, 678-775-6900
or
Investor Relations Contact
ICR, Inc.
Bill Zima, 203-682-8200
SOURCE: Delta Apparel, Inc.
Released January 11, 2005