Delta Apparel would have doubled their fiscal 2002 results if the Soffe acquisition has been completed last year, according to company president & CEO Robert Humphreys.
In a release announcing DLA’s fiscal first quarter results for the period ended September 27, 2003, Humphreys said that pro forma sales including MJ Soffe would have been approximately $223.3 million and net income would have been approximately $12.0 million for the twelve months ended June 28, 2003. Diluted EPS on a pro forma basis would have increased $1.43 to $2.88 per share.

“We are pleased to have completed the acquisition this month”, said Humphreys. ” M. J. Soffe Co. has a strong management team in place that will continue to direct this business. We welcome all of the Soffe employees to Delta Apparel and look forward to working with them in the coming years.”

Getting back to reality, Delta saw net sales for its fiscal Q1 rise 6.6% to $30.8 million, fueled by a 21.3% increase in unit volume, partially offset by a 12.1% decrease in average selling prices. The price declines were primarily in the basic white and colored tees.

The company said the higher unit volume resulted primarily from “increased sales in heavyweight and private label styles”. Unit sales also increased in the DLA's specialty tee products, which generated “above average margins”, partially offsetting declining margins on basic tees.

Gross profit margins fell 750 basis points to 13.3% from 20.8% in the year-ago period.

Net earnings for the quarter were $0.6 million, or 14 cents per diluted share, down 67.1% from $1.8 million, or 43 cents per diluted share, in the prior year quarter.
Accounts receivable increased 19.2% to $17.4 million and inventories were up 3.7% to $50.2 million versus the year-ago quarter-end.