Delta Apparel Inc. announced that its Board of Directors has approved a new authorization under the company’s stock repurchase program for the repurchase of up to an additional $10 million of the company’s outstanding common stock, bringing the total amount authorized under the program to $50 million.
The company has repurchased approximately 2.59 million shares to date under its stock repurchase program at a cost of approximately $38.7 million, or $14.93 per share. With this $10 million increase in authorization, the company currently has approximately $11.3 million remaining for share repurchases under the program.
“This additional authorization reflects our Board of Directors’ continued confidence in our diversified business model and the strength of our balance sheet,” said Robert W. Humphreys, Delta Apparel’s chairman and chief executive officer. “This action also underscores our commitment to creating value for our shareholders as we execute on our growth strategies. Share repurchases will continue to be an important consideration as we allocate our capital and seek opportunities to improve shareholder value.”
The company intends to continue to make stock purchases through open-market transactions pursuant to SEC Rule 10b-18 as well as through privately negotiated transactions, with the timing and number of shares purchased depending upon a variety of factors such as price, corporate and regulatory requirements, alternative investment opportunities and other market and economic conditions. Share repurchases are subject to suspension or discontinuation at the company’s discretion and the company’s Board of Directors may modify, extend or terminate the stock repurchase program at any time.
Delta Apparel, Inc., along with its operating subsidiaries, M. J. Soffe, LLC, Salt Life, LLC and Art Gun, LLC, makes a wide range of basic and branded activewear apparel, headwear and related accessories.
