Delta Apparel, Inc. (NYSE:DLA)

Fourth Quarter and Full Year 2011 Results

Fourth Quarter Highlights 

• Net sales increased 9.1% to a record $137.6 million from $126.2 in the prior year period
• Gross margins improved 340 basis points to 27.3%
• Net income increased 50.6% to $8.5 million from $5.7 million in the prior year
• Diluted EPS increased 51.6% to $0.97 from $0.64 in the prior year period

Fiscal 2011 Highlights 

• Net sales increased 12.0% to a record $475.2 million from $424.4 million in the prior year
• Gross margins improved 80 basis points to 24.5%
• Net income increased 42.2% to $17.3 million from $12.2 million in fiscal year 2010
• Diluted EPS increased 41.4% to $1.98 compared to $1.40 last fiscal year

Robert W. Humphreys, Chairman and Chief Executive Officer, commented, “Fiscal year 2011 was exciting for us at Delta Apparel, Inc. and we are proud of our many accomplishments. Despite less than ideal market conditions, we achieved our eighth consecutive year of record sales, driven by organic sales growth, the acquisition of The Cotton Exchange and new license agreements. We continued to penetrate new markets and reach more consumers with our lifestyle branded activewear apparel and headwear. Having a vertically integrated, flexible manufacturing platform allows us to leverage our scale efficiencies while providing consistently high-quality products and reliable service to our customers.”

Stock Repurchases 

On August 17, 2011, the Company’s Board of Directors approved a $5 million increase in the Company’s Stock Repurchase Program, bringing the total authorization to $20 million. This marked the fourth increase since the program began in November 2000. Since inception, the Company has spent approximately $12.1 million under the Stock Repurchase Program, buying back approximately 1.2 million shares at an average price of $9.81. In fiscal year 2011, the Company spent $2.5 million repurchasing 177 thousand shares at an average of $14.18 per share. Approximately $8.0 million remains available for future stock repurchases pursuant to the Stock Repurchase Program.

Fiscal 2012 Guidance 

The Company is maintaining its fiscal year 2012 outlook for sales and earnings. For the fiscal year ending June 30, 2012, the Company still expects net sales to be in the range of $500 to $520 million and earnings to be in the range of $2.00 to $2.15 per diluted share.