Delta Apparel Q4 net sales rise 11.3% to record $91.8 mn
17 Aug '07
3 min read
In addition, the inclusion of FunTees reduced overall gross margins for the fourth quarter as sales from the FunTees private label business carry lower margins than the Company's branded businesses.
Selling, general and administrative expenses for the fiscal 2007 fourth quarter were 17.7% of sales compared to 15.9% of sales in the prior year period due to the higher selling, general and administrative costs associated with the higher Junkfood sales in the quarter, offset partially by lower management incentive costs.
The Company also incurred a $1.5 million non-cash asset impairment charge in its fiscal fourth quarter 2007 related to the reduction of its U.S. textile operations. Net income was $0.7 million, or $0.08 per diluted share, in the fiscal fourth quarter of 2007 compared to the prior year's level of $6.3 million, or $0.73 per diluted share. The Company's fourth quarter 2007 diluted earnings per share results include a restructuring related charge of $0.51.
For the year ended June 30, 2007, net sales increased 15.7% to a record $312.4 million compared to $270.1 million in the prior year. Gross margins were 23.4% compared to 29.6% in the prior year due to the restructuring related charges, higher raw material pricing, lower sales in the higher margin Junkfood business, and the inclusion of the private label FunTees business that carries lower margins than the Company's branded businesses.
marketing@alchempro.com
