Delta Apparel’s Board of Directors Increases Share Repurchase Program
Board adds $10 million to stock buyback program
GREENVILLE, S.C. -- January 25, 2013
Delta Apparel, Inc. (NYSE MKT: DLA) announced today that its Board of
Directors has authorized management to use an additional $10.0 million to
repurchase Delta Apparel common stock in open market transactions under the
Company’s stock repurchase program. Since the inception of its stock
repurchase program, the Company has used an aggregate $18.0 million to
purchase 1,634,080 shares at an average price of $11.01 per share. Prior to
the Board’s action, only $2.0 million remained of the original $20 million
authorization under the program.
Robert W. Humphreys, Delta Apparel’s Chairman and Chief Executive Officer,
commented that under current conditions buying back the Company's stock
represents a prudent use of cash. “As our stock trades at a price we believe
is below its intrinsic value, in our view periodic repurchases are a sound
investment opportunity and something that we can pursue without sacrificing
future growth plans. We are pleased that the Board has provided us with the
ability to continue to take advantage of this program as we deem appropriate.”
Mr. Humphrey’s concluded, “Another benefit of our share repurchase program has
been to offset the dilutive effect of our equity compensation programs to
shareholders. Since the inception of the program and including shares bought
through the Dutch tender we completed in 2002, we have repurchased more shares
than we have issued through these equity compensation programs.”
The Company intends to make its stock repurchases pursuant to 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, and share
repurchases may be suspended or discontinued at any time.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its operating subsidiaries, M. J. Soffe, LLC,
Junkfood Clothing Company, To The Game, LLC and Art Gun, LLC, is an
international design, marketing, manufacturing, and sourcing company that
features a diverse portfolio of lifestyle branded activewear apparel and
headwear, and produces high quality private label programs. The Company
specializes in selling casual and athletic products across distribution tiers
and in most store types, including specialty stores, boutiques, department
stores, mid-tier and mass chains. From a niche distribution standpoint, the
Company also has strong distribution at college bookstores and the U.S.
military. The Company’s products are made available direct-to-consumer on its
websites at www.soffe.com, www.junkfoodclothing.com, www.saltlife.com and
www.deltaapparel.com. Additional products can be viewed at www.2thegame.com
and www.thecottonexchange.com. The Company's operations are located throughout
the United States, Honduras, El Salvador, and Mexico, and it employs
approximately 7,100 people worldwide. Additional information about the Company
is available at www.deltaapparelinc.com.
Statements and other information in this press release that are not reported
financial results or other historical information are forward-looking
statements subject to the safe harbor created by the Private Securities
Litigation Reform Act of 1995. These are based on our expectations and are
necessarily dependent upon assumptions, estimates and data that we believe are
reasonable and accurate but may be incorrect, incomplete or imprecise.
Forward-looking statements are also subject to a number of business risks and
uncertainties, any of which could cause actual results to differ materially
from those set forth in or implied by the forward-looking statements. The
risks and uncertainties include, among others, the general U.S and
international economic conditions; the ability to grow, achieve synergies and
realize the expected profitability of recent acquisitions; the volatility and
uncertainty of raw material, transportation and energy prices and the
availability of these products and services; changes in consumer confidence,
consumer spending, and demand for apparel products; the ability of our brands
and products to meet consumer preferences within the prevailing retail
environment; significant interruptions in our distribution network or
information systems; the financial difficulties encountered by our customers
and higher credit risk exposure; the competitive conditions in the apparel and
textile industries; changes in environmental, tax, trade, employment and other
laws and regulations; changes in the economic, political and social stability
of our offshore locations; significant litigation in either domestic or
international jurisdictions, the relative strength of the United States dollar
as against other currencies; and other risks described from time to time in
our reports filed with the Securities and Exchange Commission. Accordingly,
any forward-looking statements do not purport to be predictions of future
events or circumstances and may not be realized. Further, any forward-looking
statements are made only as of the date of this press release and we do not
undertake publicly to update or revise the forward-looking statements even if
it becomes clear that any projected results will not be realized.
Delta Apparel, Inc.
Deborah Merrill, 864-232-5200 x6620
Chief Financial Officer
Sally Wallick, 404-806-1398
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