Delta Apparel, Inc. said its board of directors has approved a $5 million increase in the company's stock repurchase program, bringing the total authorization to $20 million. This marks the fourth increase since the inception of the program in November 2000.
Over this period, the company has spent $11.9 million under the Stock Repurchase Program, buying back 1.2 million shares at an average price of $9.74. In fiscal year 2011, the company spent a total of $2.5 million repurchasing 177 thousand shares at an average of $14.18 per share. As of yesterday, $8.1 million remains available for future stock repurchases pursuant to the Stock Repurchase Program.
Robert W. Humphreys, president and CEO, commented, “Fiscal year 2011 was another strong year for Delta Apparel, Inc., marking our eighth consecutive year of revenue growth and an all-time record earnings for our Company. This expansion of our share repurchase program speaks to both management's and our Board of Director's belief that when market conditions undervalue our stock, one of the better decisions that we can make to both demonstrate our confidence in the future and to build shareholder value is to invest in our own shares. We should be able to pursue this expanded share repurchase program without sacrifice to any of our future growth plans.”
The company intends to make its stock repurchases in compliance with SEC Rule 10B-18. The timing and the number of shares repurchased will depend upon a variety of factors, such as price, corporate and regulatory requirements, alternative investment opportunities and other market and economic conditions. This program does not require the Company to acquire any specific number of shares and may be modified, suspended, or terminated at management's discretion without notice.
Delta Apparel, Inc.'s businesses include M. J. Soffe, LLC, Junkfood Clothing Company, To The Game, LLC, Art Gun, LLC and TCX, LLC.