Delta Apparel, Inc. is resuming the open market repurchase of its stock pursuant to the stock repurchase program previously authorized by the company's board of directors.
“We believe that this is an effective use of our cash at this time,” commented Robert W. Humphreys, Delta Apparel's chairman and chief executive officer. “Over the past several quarters we have invested a considerable amount of our cash flow to implement strategic initiatives designed to improve net profitability, and the success of those initiatives became evident in the previous quarter. Today we are a leaner, more agile company with the ability to respond quickly to periodic shifts in the marketplace. Our June quarter is on track with expectations, and we believe our second half will provide a strong finish to the fiscal year. Taking into consideration these positive trends, our stronger balance sheet, and our stock currently trading at prices we believe to be below its intrinsic value, it's our view that Delta Apparel shares continue to be a sound investment opportunity. Therefore, we intend to begin open market repurchases of our stock immediately.”
The company's board of directors previously authorized management to use up to $30.0 million to repurchase Delta Apparel common stock in open market transactions, of which $4.7 million remains currently available for repurchases. The company intends to make stock repurchases pursuant to SEC Rule 10b-18, and the timing and number of shares repurchased will depend on a variety of factors such as price, corporate and regulatory requirements, alternative investment opportunities and other market and economic conditions, and share repurchases may be suspended or discontinued at any time.
Delta Apparel, Inc., along with its operating subsidiaries, M. J. Soffe, LLC, Junkfood Clothing company, Salt Life, LLC and Art Gun, LLC, is an international design, marketing, manufacturing, and sourcing company that features a diverse portfolio of lifestyle basic and branded activewear apparel and headwear.
