Delta Apparel (DLA) Prelim. Q1 Revenue Misses Views

Delta Apparel, Inc. (NYSE American: DLA), a leading provider of core activewear and lifestyle apparel, today announced preliminary results for its 2019 fiscal first quarter ended December 29, 2018.

The Company anticipates overall net sales for the first quarter of its 2019 fiscal year to come in ahead of expectations at approximately $101 million, or about a 12% increase from prior year net sales of $90.3 million. The growth was driven by solid double-digit gains in the Company’s Salt Life business, as well as in its digital print business, which successfully completed its first holiday season with consolidated operations including the DTG2Go and SSI Digital Print businesses acquired in the last 10 months.

(*Street sees Q1 revenue of $103.8 million)

The Company expects earnings per share for the quarter to be above the prior year period’s reported earnings per share. Results during the first quarter of fiscal year 2019 were impacted by a discrete expense of $2.5 million associated with the resolution of litigation stemming from The Sports Authority's March 2016 bankruptcy. The Company anticipates adjusted earnings per share for the quarter to be approximately in line with prior year adjusted results of $0.08 after excluding the financial impact of this expense and the impact of United States tax reform legislation.

Robert W. Humphreys, Delta Apparel, Inc.’s Chairman and Chief Executive Officer, stated, “We are pleased with our start to the new fiscal year and the broad-based momentum we are seeing across our business segments. We have delivered sequential growth in our Salt Life Group, and our Delta Group continues its strong expansion driven by our DTG2Go digital print business. We look forward to providing our full results for the first quarter during our upcoming earnings call.”

ICR Conference

As previously announced, the Company is scheduled to present today at 8 a.m. Eastern Time at the ICR Conference being held at the JW Marriott Grand Lakes located in Orlando, Florida. A webcast of the conference presentation will be available on Delta Apparel's website at www.deltaapparelinc.com. Real Player or Windows Media Player is required to listen to the webcast.

First Quarter Fiscal 2019 Results on February 4, 2019

Final and complete financial results for the fiscal year 2019 first quarter ended December 29, 2018, will be released after the market close on February 4, 2019. At 4:30 p.m. ET on that day, the Company will also hold a conference call with senior management to discuss its financial results and business outlook. The Company invites you to join the call by dialing 866-575-6539. If calling from outside the United States, please dial 323-794-2423. A live webcast of the conference call will be available at www.deltaapparelinc.com. Please visit the website at least 15 minutes early to register for the teleconference webcast and download any necessary software. A replay of the call will be available through March 4, 2019. To access the telephone replay, participants should dial toll-free 844-512-2921. International callers can dial 412-317-6671. The access code for the replay is 7993355.

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