Delta Apparel Q4 net sales rise 11.3% to record $91.8 mn
17 Aug '07
3 min read
Delta Apparel Inc reported financial results for its fourth fiscal quarter and fiscal year ended June 30, 2007. The Company's results for the fiscal 2007 fourth quarter and annual period include the operations of FunTees, which was acquired on October 2, 2006. The Company's results are in-line with the preliminary results announced on July 18, 2007.
Textile Restructuring: On July 18, 2007, the Company announced its plans to restructure its U.S. textile operations by closing its manufacturing facility in Fayette, Alabama.
As a part of the Company's overall restructuring of its textile manufacturing operations, the Company is also expensing its start-up and excess manufacturing costs associated with the integration of FunTees and the opening of its Honduran textile facility.
The closing of the Alabama textile facility is expected to occur in the Company's fiscal first quarter of 2008, leaving the Company with two U.S. textile operations, one located in Maiden, North Carolina and the other in Fayetteville, North Carolina.
The Company expects its restructuring initiatives will result in costs savings per diluted share of approximately $0.26 in fiscal 2008, $0.62 in fiscal 2009, and $0.80 in fiscal 2010.
Fiscal Year 2007 Results: For the three months ended June 30, 2007, net sales increased 11.3% to a record $91.8 million compared to $82.5 million in the prior year's fourth quarter. Gross margins for the fiscal fourth quarter were 20.6% compared to 28.7% in the prior year fourth quarter principally as a result of the $5.4 million in restructuring related charges.
marketing@alchempro.com
