Delta Apparel Inc (DLA, Financial) filed Quarterly Report for the period ended 2010-03-27.
Delta Apparel Inc has a market cap of $143.4 million; its shares were traded at around $16.84 with a P/E ratio of 13.5 and P/S ratio of 0.4. DLA is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates.
On March 2, 2010, we raised our guidance for the 2010 fiscal year ending July 3, 2010, expecting net sales in the range of $395 to $400 million and earnings of $1.20 to $1.30 per diluted share. Based on stronger than anticipated third quarter sales, on April 23, 2010, we raised our expectations for net sales to be in the range of $400 million to $405 million and reiterated our expectations for earnings to be in the range of $1.20 to $1.30 per diluted share for the 2010 fiscal year. This compares to fiscal year 2009 net sales of $355.2 million and earnings of $0.76 per diluted share in fiscal year 2009.
Operating income for the third quarter of fiscal year 2010 was $4.9 million, an increase of $2.6 million from the third quarter of the prior year. For the first nine months of fiscal year 2010 operating income was $11.6 million, a $5.4 million increase over the operating income of $6.2 million during the same period of fiscal year 2009.
Accounts receivable as of March 27, 2010 was $62.3 million, an increase of $4.4 million from June 27, 2009. The increase in accounts receivable from the prior year end was primarily due to higher sales during the third quarter of fiscal year 2010 combined with a slight increase in the days sales outstanding, from 52 days at June 27, 2009 to 53 days as of March 27, 2010. Accounts receivable as of March 27, 2010 also increased by $12.5 million compared to $49.7 million as of March 27, 2009 primarily due to the sales growth achieved in the third quarter of fiscal year 2010.
Capital expenditures in the third quarter of fiscal year 2010 were $1.7 million compared, to $0.7 million in the third quarter of the prior year. Capital expenditures for the first nine months of fiscal year 2010 were $3.9 million compared to $2.7 million in expenditures for the first nine months of fiscal year 2009. Expenditures for the first nine months of fiscal years 2010 and 2009 were primarily for continued improvements in our information technology in our retail-ready segment and capital expenditures intended to lower costs in our manufacturing facilities in our activewear segment. Total capital expenditures are expected to be approximately $5 to $6 million in fiscal year 2010.
Capital expenditures for the first nine months of fiscal year 2010 were $3.9 million compared to $2.7 million for the first nine months of the prior year. Expenditures for the first nine months of fiscal years 2010 and 2009 were primarily for continued improvements in our information technology in our retail-ready segment and capital expenditures intended to lower costs in our manufacturing facilities which supports both our activewear and retail-ready segments. During the third quarter of fiscal year 2010, we completed the acquisition of Art Gun Technologies, LLC through our wholly-owned subsidiary, Art Gun, LLC for $1.0 million. During the first quarter of fiscal year 2010, we also made a final payment of $0.7 million in connection with the acquisition of To The Game, LLC. During the first quarter of fiscal year 2009, we paid an earnout payment of $2.6 million to the former Junkfood shareholders based on the performance of Junkfood for the fiscal year ended June 28, 2008.
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Delta Apparel Inc has a market cap of $143.4 million; its shares were traded at around $16.84 with a P/E ratio of 13.5 and P/S ratio of 0.4. DLA is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Our third quarter revenue increased 26.0% to a record $107.9 million compared to $85.7 million in the prior year quarter. The $22.2 million sales expansion was driven by organic growth of 16.5% and the net sales contributed by our headwear business that we acquired in the fourth quarter of fiscal 2009. Each of our business segments experienced sales growth during the third quarter and the manufacturing cost improvements achieved during the first half of fiscal year 2010 continued during the quarter. Net income was $3.0 million, or $0.34 per diluted share, a 143% increase from the $0.14 per share earnings in the prior year third quarter.On March 2, 2010, we raised our guidance for the 2010 fiscal year ending July 3, 2010, expecting net sales in the range of $395 to $400 million and earnings of $1.20 to $1.30 per diluted share. Based on stronger than anticipated third quarter sales, on April 23, 2010, we raised our expectations for net sales to be in the range of $400 million to $405 million and reiterated our expectations for earnings to be in the range of $1.20 to $1.30 per diluted share for the 2010 fiscal year. This compares to fiscal year 2009 net sales of $355.2 million and earnings of $0.76 per diluted share in fiscal year 2009.
Operating income for the third quarter of fiscal year 2010 was $4.9 million, an increase of $2.6 million from the third quarter of the prior year. For the first nine months of fiscal year 2010 operating income was $11.6 million, a $5.4 million increase over the operating income of $6.2 million during the same period of fiscal year 2009.
Accounts receivable as of March 27, 2010 was $62.3 million, an increase of $4.4 million from June 27, 2009. The increase in accounts receivable from the prior year end was primarily due to higher sales during the third quarter of fiscal year 2010 combined with a slight increase in the days sales outstanding, from 52 days at June 27, 2009 to 53 days as of March 27, 2010. Accounts receivable as of March 27, 2010 also increased by $12.5 million compared to $49.7 million as of March 27, 2009 primarily due to the sales growth achieved in the third quarter of fiscal year 2010.
Capital expenditures in the third quarter of fiscal year 2010 were $1.7 million compared, to $0.7 million in the third quarter of the prior year. Capital expenditures for the first nine months of fiscal year 2010 were $3.9 million compared to $2.7 million in expenditures for the first nine months of fiscal year 2009. Expenditures for the first nine months of fiscal years 2010 and 2009 were primarily for continued improvements in our information technology in our retail-ready segment and capital expenditures intended to lower costs in our manufacturing facilities in our activewear segment. Total capital expenditures are expected to be approximately $5 to $6 million in fiscal year 2010.
Capital expenditures for the first nine months of fiscal year 2010 were $3.9 million compared to $2.7 million for the first nine months of the prior year. Expenditures for the first nine months of fiscal years 2010 and 2009 were primarily for continued improvements in our information technology in our retail-ready segment and capital expenditures intended to lower costs in our manufacturing facilities which supports both our activewear and retail-ready segments. During the third quarter of fiscal year 2010, we completed the acquisition of Art Gun Technologies, LLC through our wholly-owned subsidiary, Art Gun, LLC for $1.0 million. During the first quarter of fiscal year 2010, we also made a final payment of $0.7 million in connection with the acquisition of To The Game, LLC. During the first quarter of fiscal year 2009, we paid an earnout payment of $2.6 million to the former Junkfood shareholders based on the performance of Junkfood for the fiscal year ended June 28, 2008.
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