DLA - Earnings call transcript Q4 2018

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Operator

Thank you. And good afternoon to everyone, participating in Delta Apparel’s Fiscal 2018 Fourth Quarter and Full Year Earnings Conference call.

Joining us from management are Bob Humphreys, Chairman and Chief Executive Officer and Deb Merrill, Chief Financial Officer and President, Delta Group.

Before we begin, I would like to remind everyone that during the course of this conference call, projections or forward-looking statements may be made by Delta Apparel’s executives. Such projections and statements suggest prediction and involve risks and uncertainty, and actual results may differ materially. periodic the with XX-K. Company’s the Exchange Securities to including Commission, most refer reports the filed and Please recent Form document contained that differ factors forward-looking identifies actual This to results statements. could materially the in cause those projections or from important that to made as will Please if any statements, update and, or any of Company the it statements by realized. that be even results required revise not as law, forward-looking any becomes does today are note only except not projected apparent commit forward-looking the now and I’ll to Chief Executive call turn over Delta’s Officer, Chairman Mr. Bob Humphreys.

Bob Humphreys

for is Good that afternoon. moment, And us results along fourth CFO, thank Deb our XXXX for business discussion we In for then financial our Delta you quarter year positioned results. will I detailed and why profitable a earnings with discuss Merrill, our call. joining the growth. fiscal a highlights our key believe call to briefly of turn Apparel well a more will I on over few future showcase

want model We businesses into expertise a reflect business our growth Before our and to current I our business us over core our across strategic operating our structure as in leverage future. change and further better manage efficiently results, planned reporting. on you to made that more segments allow cost to our realign update we into the decision a foreseeable our recently dive I

manufacturing and Soffe now print Delta are our catalog as and tees comprises our the defining our the Group which our now are includes our brand. along We business, with fun label includes Delta Delta business and Group. digital vertical divisions Salt segments platform Group private Life Activewear DTGXGo our The

Coast reporting Group brands. press was our approximately now the remaining approximately Group, Life we second from of represents segment, XX% The from which sales, see release, and XX% fiscal Delta Salt the financial derived our or comprises $XX XXXX, information can $XXX million fiscal the of sales. million Salt lifestyle our you XXXX in at our in Life provided As sales

from $X from line approximately quarter sales. offset growth turn Salt Group, was solid per year, let in prior was the simply due top was delivered X% sales than partially to this per We per almost center. this which fact The notably year-over-year X% year, results. share our bringing despite our $X.XX of in Florence. to were year eight the fourth from We share the the XX% sales to Life hurricanes million missed for major that with year's to growth the earnings DCs of The hurricane days $X.XX with much nearly the significant We shutdown Life Group last two our Now, diluted and earnings year's most diluted fourth-quarter me resulted share more in it quarter to centers hurricanes impacted segment. pleased quarter. growth, having close impact by estimate on roughly our Salt for distribution of was driven in that of bookings due finish our our distribution Delta grew the

and of XX% were only branded hurricane. right So Life quarter sales not growth impacted, Salt retailers that on our during orders major our but sales had by not to impacted not the the the we to ecommerce able were we ship retailers been at also or end volume believe quarter. nearly independent site We the

which and of than for performance by sales Group XXX%. registered business digital more growth Delta day our DTGXGo, led fulfillment was Our quarter the print

stage SSI fulfillment another announced expansion digital DTGXGo industry several digital for in growth print As and and set acquisitions in as business, digital the acquisition These a the business services. we next the year, the reminder, the of acquire years. space this print March print DTGXGo solidify leader recently meaningful over this of in high capabilities, we and

and and is to day a the digital offering We two print Delta’s prospects our deliver for only platform to offerings facilities fulfillment supplier with one customers over cost integrated edge and a and reliable and now to the a can fashion seamless as vertical core garments, DTGXGo the unique come. changing cutting solution of print reaching about growth print recent world with virtual manufacturing digital XX,XXX digital are DTGXGo market of fulfillment digital and retail network business of fulfillment has inventory, capabilities. driver capacity platform the and over revolutionizing print prints capabilities, its excited technology acquisition offering has XX% in activewear very shorts. the print and fleece a basic activity, for including six superior has across population with forefront per by of fulfillment U.S. the to years supplier a day of shipping. low service DTGXGo After the are that platform speed our

to business solid prior fiscal the in quadrupling to DTGXGo business margins. The usual operating Fourth due double-digit line days our distribution close in the in was with in Our years, ending also remaining at some approximately fluctuations were over reaching business the grew million. sales Soffe $XX over Delta the well generating XXXX, Group four sales with approximately Florence eight shipments business in DTGXGo to see our quarter. program forced softness in $X of significantly channel. year that next with due nearly of hurricane Results and for activewear We million. quarter year delaying generally was Delta Soffe million generally military the performance center $XXX

and in solid division. growth high fiscal our growth both FunTees at our business saw Delta activewear single sales the Catalog the digits full year, with For

printers products manufacturing customers garments. The fleece As vast four facilities. other products tees own in a majority Delta customers business channels. and reminder, and our our made are retail market Catalog basic garments licensing in serves range the spectrum, fashion The performance offered full of promotional its and more these business Catalog screen from in across our and to tees, including regional the

well Importantly, we channels BXB are double-digit growth business, in all Catalog as as growth our across site. our seeing generally sales e-commerce in

of fashion our including customers products which expectations our expect deeper our platimum Delta mix. sets to with these grew customers, exceed introduced also ago, year-over-year attracting growth our stage overall the years trend a sales we products Delta Our see family. continue larger Sales and fashion to penetration of while continued line, and existing for that sales basics activewear two line, approximately the as XX% was only new part our become basics to

sales away previously sourced from and these development parties lead products achieved XXXX. We fiscal times and on service focus platform our to many business in with of continued growth continue onto heavily is faster growth fashion Catalog We our to moved and in in for customers advantage better the positioned believe this products internal take third manufacturing XXXX of fiscal shorter our replenishment. of new XX% have well business to

private Our FunTees business, recognizable fiscal regional as and sales a to national label provides in record brands, products which XXXX. reminder achieved global, many

We have sales been increasing as diversifying to our such customer base direct channels, in and retail. newer

model offered shift our look stronger beyond. and customer hemisphere business in supply market our chain in like by improve to see business We and fiscal those and more to leveraging FunTees continued service flexible market by fueled label favorable to 'XX brands Western to speed to momentum levels. continue in forward dynamics towards private solutions, We this

Life we're which trends Life Salt by our as top encouraged business year our delivered grew by Salt business fourth of results. to and fourth and double-digit expansion seeing mentioned, remain record Salt to we this approximately our was hurricane report Moving Life site e-commerce quarter, Life.com the we growth. the dampened our the Salt I overall year-over-year, the Despite season X% impacted the in the Sales in are performance, sales business, pleased negatively which another during on of line quarter brand. in

well shopper as indicators increases size positive see average remains in growth customers. both the to new with growth order e-commerce existing that continue key and in a our We on as brads trajectory conversion,

the side, both market. additional and market brands' also in growing accounts national and partnerships reach new wholesale strongholds. regional its traditional of strategies outside to Life continues through brand and regional are target response outside foreign the markets. Salt led the brand its international Life Salt traditional the grown And strong within enthusiastic broaden key is market with retailer that has go-to-market On independent of to

a We footprint Florida. recently also are year spring geographic regions. wholesale pleased years higher six brick-and-mortar operate with backlog to XX now in are the new Sales We this healthy next and in order Life Florida, additional on including we retail the Tampa than that with channel store nicely locations, two focus one California is growing significantly targeting see over own in that are we three branded in existing with and the Salt starting-off direct-to-consumer within Georgia. year. expansion expanded last a are openings its three store in

Salt Another Life is product key strategic brand our growth pillar for expansions.

highlighted good accessories expanded performance on these that grow third within spring. traction in-house Salt with recently with SWIM market off positive continue we locations the and now Life on performance into Sales we're expanded was selection we good and start Life is to become has introduced call, marketed also ladies which our national Life this seeing key available Swimwear As continue our higher response license expect to a products and to line Swimwear growth Salt agreement Salt to bags products a previously and to and some products nicely ticket recently new line licensee its year-over-year, a USA. Salt enrollment ladies its offering is platform. a in this double-digit sunglasses, with sold sold line of quarter the Life through to strong of

its sales additional craft Finally expansion to beer of to it new on the the Florida. distribution visibility product brand This continue brands' Lager, continues side, adds as Life to expands grow Salt the throughout and extension grow.

Apparel. double-digits review and year we the in positive heavily site and We response markets on our Life our the turn XX% for bottom-line and are distribution e-commerce sides Florida seen have discussion well. year retail Fiscal selectively to up to line continue Lager's results year invest on To entered for great to were we financial grow another key well top financial was fiscal up to to compete into positioned our accelerating we summarize, collectively current of the sales this in due year and for Salt the as detail. to outside over delivered over expand now were XXXX new plans landscape. I'll was and growth, side more area. our We BXC BXB to-date. market XXXX the our southeastern in Deb a Delta year solid fiscal Sales

Deb Merrill

Bob. you, Thank

with strong bottom-line we with line coupled performance, mentioned Bob overall ended solid XXXX results. growth As fiscal top moderate delivering

growth future in made the our Delta During areas business. and variety rising we fast digital year, more significant in mature ourselves both our a and for DTGXGo of a in business progress put activewear print position

We also a more our growing full with new brands of our made the provide performance for Life our you, In line Bob year significant set awareness by expansion on followed there. results. quarter Salt for consumer with strides shared details now reporting in that segment I’ll channels and fourth our stage group review

in with quarter million were results as For in a our our impact net This by slight by by as group quarter $X.X Salt two markets sales the business. up fourth major DTGXGo in Life the increase These were growth activewear $XX.X well the sales in navigated from in in million, led X% offset it million growth decline from group, hurricanes XXXX. which as X% fourth our XX.X to close Delta the was quarter. was fiscal our business, sales key slightly driven significant increase of

Gross activewear the of solid product million, also better liabilities of by the lease growing year the certain current as our increased the as was from our These in in increased $XX.X in in included Delta quarter. our to year days in benefit of performance higher that primarily by Delta fiscal fourth anticipated in Soffe, reviewed in estimated cost as to rate, million $X.X was which year to SG&A in resulted compared XXX by million the As of primarily up $X.X $X.XX income North fourth was inflationary centers the facilities, Carolina to quarter our last XXXX. the earnings the fourth $X $X.X Net Bob XX.X% higher diluted prior SG&A XX% lower quarter we gross prior were quarter, and to group driven period. earlier was performance and up basis be driven offset Fayetteville, expense. DTGXGo one of service compared results for million,an million year XX.X% from million $X.X lost Delta was a just And from $X.X our well the able compared to primarily year, income $X had business. for approximately quarter increases, year facilities $XX.X to group. group, million. $XX.X expenses California. and eight driven the Salt exit to during than million increase partially the you made in fourth from $X.XX mentioned, margins a revenue distribution with to line. Operating investments the The per digital fourth prior our XX% million to share quarter million operating service counter in affecting tax that in improved distribution closed XX% I print and Life profit points year the prior expansion strong fourth interest from

turning the Net to full-year results. sales our million year. Now increased X% to for $XXX.X

by of with and million up prior million the up $XX.X we Net operating million fiscal Delta Underlying and of was increase was tax these in the we’re XX% to national business. shift XXXX. this the in the Gross Delta business, in the legislation fiscal divested what non-core strength growth favorably in partially $XX.X XXXX. XX now is the X% from and Salt hurt wins X% our on a leveraged group tax million Salt in related XXXX with with sales hurricanes from to in that again was declined and $XX.X $XX.X of consumer sales to net both year-over-year. Delta a $XX sale but to Group were in fiscal March independent performance XXXX, the due points segment, other junk by SG&A of improved $X.X driven our as a percentage XXXX, there in to income XX.X% primarily was the business. in XXXX to in segment. net year-over-year year million funds million, income up Life year. retailers from for overall in the Life basis XX basis Life prior sold $XX.X in declined point sales X% by $XX.X of profit food XX.X% Junkfood margins million to of the direct sales softness Group Operating Delta business SG&A recent XX.X the refer compared was our our Salt income fiscal group which strategic the million million the were this $XX million, for retailers, fiscal Group $XX.X compared million we benefit to Junkfood Gross reform the was increased ago from declines sales sales. generally expenses from year-over-year. XXXX, the Life included Salt group business but in brand million pretax Group year in expense year-over-year. X% recent and strong of offset U.S. year, compared XXXX, $XX.X the $XXX,XXX in to million one-time in flat Clothing in Excluding our results in to compared Group, Life which Salt stronger as year. to fiscal from mix were overall X.X% up Sales year $X.X

per $X.XX Excluding compared $X.XX both share XX% per-share adjusted the diluted prior year, was for items, in to earnings. in of improvement earnings those fiscal a XXXX

with and depreciation non-cash continue $XX.X in as equipment, print $XX.X With as initiative. the spending for invest to and direct-to-consumer -- for CapEx balance other prior now including we year Turning as in to amortization, was million million and our the machinery regards our and line well approximately sheet, to guidance digital our comp the total year. incurred

our remainder we paid Print Digital was $X reminder, and under fiscal of facility. for lease our a financed As acquisition which the XXXX, capital through the credit million million $XX.X revolving financed U.S.-based during

repurchase of our total cost price approximately million, million. shares total common at cost about of quarter, fourth share of and purchases we Regarding $XX.XX the an the $X.X per an a approximately repurchased XXX,XXX $XX.XX our share our $X the year-to-date at average shares during bringing XXX,XXX of to for average activity, price stock of

had approved fiscal our we million share program. of for our purchases $XX.X year-end, approximately As remaining under

operating of lower cost Finally, nearly year year in cash flat end offset being higher by end $XXX of $XXX.X inventory on our capital to at of flow from the XXXX at including with with we ago year. million improved a $XX.X million the $X million partially at the lease million hand, Total $XX.X was XXXX. inflationary relatively Total by end units debt, fiscal cost resulting the remained at million to fiscal unit per compared fiscal inventory, prior the financing the increases.

to to Looking ahead opportunities fiscal the work due the year. be we ahead our XXXX, to to in position made we're and a excited capitalize of on this the team investments that hard lay

here Bob Now his final for again comment. is

Bob Humphreys

Thanks Deb.

progress leadership the business, our here markets we print with continue business. pleased our fulfillment develop in new are we and fiscal and We products made activewear to exciting in new digital this strengthened We in and year. customers gain the position

XXXX. steps to strong we We brand, our well also had Salt positioned and it took awareness variety believe Life increase of of lifestyle the growth a important in for fiscal

the years. of as quadruple the us already fast off positions in we digital a and to to markets look print are We business as which completion next several our new in of fiscal a start the over the fulfillment DTGXGo acquisition year SSI, with leader our

in January. Our we'll off a with business book, a start which Salt shipping to spring strong is solid also begin Life order

These for our to few distribution that the licensee. additional brands' new standpoint Life Central build Fernandina Salt beyond. also the One year. other consumers of expansion milestones, in States. in will overlooking currently upcoming bring have continued we of of the position offerings the products combined topic Beach, restaurant like and year also expansion products vast United Lager the price well Apparel locations product the increased the We majority We swimwear The out addition our on on brand. and manufacture higher lady In extensions Salt the for to with the opened weeks, should of success Florida us Life fiscal XXXX ocean for and help in is a points Delta should plans tariffs be sell China. America, a restaurant from Mexico I'd additional address from the the with

We also other manufacture brands same these facilities. a significant apparel major for amount of from

You've increased heard should to see hemisphere me that has more drive been in We our region. years move which performance say now we be affected service this this products help long production continued for tariffs. accessories consumers by production of our term store facilities. for currently in various many into trend small amounts manufacturing from brands, that This and a growth China can

to not chain these are While material for alternative taking we steps our products. supply to currently overall results, find

close, to you would any dedication hard progress their Deb all glad line now now. the Stephanie, thanks Apparel Delta teams and work the Before open another up and be questions my of to I'll year year. for open solid I of like our up questions. can add forward We for for look to I call this past to and

Operator

go with onto Instructions]. Roth we’ll ahead. Please King Capital [Operator Partners. move And you Dave Thank

Unidentified Analyst

acquire as And that space further start excited expecting and a acquisition Dave. talk that the grow I bit look made then you to be prints for DTGXGo? maybe so further it? in on you get Andrew did to little capabilities you And first we any you SSI and if should -- acquisitions what more, into about is business? how the add guess Thanks. to off, about what complements then This could digital

Bob Humphreys

was size substantial a we aware business business. DTGXGo certainly what had it similar we that that and were to of, acquired we Art So and Gun that was a in before

scratch. to business in ability had and that from planned were and move start locations to need production out And so meaningful leverage geographic another to, fulfillment facilities manufacturing use garments It consolidate eliminated places we over production from further own was our it So in our obviously we that player time. growing our had that the to there.

So our other significant we really backroom and operations cash together with earn, ableness keep our and orders. our can saw technology, it flow how equipment we to manage and players and finance three incoming including

about good So that. we feel

for by to We them marketplace And we geographically Deb, have expect future. of footprint anything grow broadest the the service in you do to want where you that? we marketplace. to here add foreseeable to organically the more locations review have geographic the probably far from

Deb Merrill

I pace, currently market, really for the business. and grow growth 'XX covers. come. forward leadership And fiscal growth was in years which It to the that in strategic we overall and that fast are continue a position to is a of think in that future to looking to so

Operator

We'll move Management. to Wilen with Wilen Jamie

Jamie Wilen

you add Just And together, in in year's a coming an levels would year? these EPS you be so on to sales and this DTGXGo, anticipate that, three acquisition March. then as much sales put fiscal going the How follow-up impact beyond the what that have to your it does well? did when

Deb Merrill

It a SSI combined year. we can't the little that then out. annualized to an earnings you the and Art business $XX everything additional had. But else remaining about And the don't we was 'XX, running the SSI part on integrated on businesses can't the with million we've half break necessarily is $X break in of have the SSI and added million effectively the would that we the accretive business of year pace the basis. BTG organic fiscal then for DTGXGo the look of about growth reason that them is we was at business acquisition Gun of out in for this necessarily have year, Gun first Art and entire then year. the you because to combine revenue this the together, it of as you'll the addition of you'll top and so hard It's business estimate additional

$XX that $XX business looking million short be pushing should to have in we consolidated in altogether. fairly business million order So

Jamie Wilen

our obviously a And the game retailers advantage of to the expertise? we're of plan, but sell part job to with digital printing, printing garments taking whoever as good Delta doing or

Bob Humphreys

Yes, we've the go show own and have benefits using obviously, cases we capacity of growing these acquisitions the their we seen print absolutely And to then and several that garments own center. of distribution inventory centers, our our to the shipping are and there. handling other of the we get already and garments in cost We do distribution we and utilize own garments. our can bringing in cost customers from in eliminate cost already

So win-win vertical on it's a really a platform.

Jamie Wilen

your of your the store percent to and Art percentage your use What was garments SSI prior Gun original business of what of garments using acquisition?

Bob Humphreys

in would on with we say we out of basics as we use platinum Gun and XX% came XX% pretty growing started to time I our others, were and fashion Art line that garments the our more adopting and line fleece and acquiring rapidly, by the that. own were particularly people

obviously that. below And so it’s well

We these companies. are acquiring

reasons, specifying where were garments were our them customers times often of various for some them. using Although,

and that where were anyway, but well. the growth be additional as bringing Gun this old would So with if on volume a we business, great opportunity Art

Deb Merrill

add to be to our that as continue we then we And activewear Delta product into expand season. able new

getting the customers print digital a response that well. from a good to We’re as

business. the product going of continues the the able that product to we see being to line to expand, digital print as So increase capabilities Delta

Jamie Wilen

our that? from at And separate own garment accounting sales that $XX and million look I you DTGXGo perspective, assume to distinct does as from include, $XX or million an when not business,

Bob Humphreys

be including out value garment No, more. going the would that

Jamie Wilen

Salt Life. to over Moving

where the to in national all retailers. with those differences next are talk there hear thoughts your to just growth regional wins as Could how wanted get Just about we the far to performance losses you as about and together? still level, is

Bob Humphreys

last two that lost to any or the Life retailers them. consider of business, couple We’ve, consistently and the on rolled years, regional for big haven't we one we or national of Salt

maybe New Maryland business XX hurricanes driven nicely of that's the So exclusively Jersey East the good or months particularly say I’d last from for even significantly New but Florida growth. more independent steady Coast the have not York. and up and hurt a the and been so, bit the dealers growing into but in new up, net and been

So that's been see. nice to

where our brand, had space we XX% would in so them think the of own business, XX% give and is or by better us our about for and success customers. support to of which wholesale with what about and larger these products retailers a of these I we’ve stores and with sites, embrace see So our a our retail really like accessories better some that performance XX% the are business, store only displays, on e-commerce of In brand. other selling

our So also consumer business good them that a they're is that to missing job products to that it educate and with them. higher-margin for

Jamie Wilen

When you talk that is about of of you an indicator moving much for significantly higher wholesale orders, business how the forward?

Bob Humphreys

and think for done Well, significantly on we’ve and gone recently back the we actually analytics that several years.

indicator months obviously, us, stores retail our January wholesale or obviously us not So in because is nine last of shipments channel, spring, this it big the business gives really for in which a kicks off e-commerce. to the

we’re for And sitting pre-book spring. business our a significant here with wholesale increase today so in

say our that’s thing independent that’s other primarily I’d The interesting on retailers. driven that by

pre-books retailers business economy so all can and limited them. and We two for that can do basis Our you season or us out, ready give reluctant Life. asking a like larger most we'd are they that to are in they product to do more about, retailers indicator for on travel anyway, also a operated patterns realize today, Salt a the and for and got weather digest have but and what leading into also we're go and encouraged ultimately it longer feel have not. that But show. one better you what brand we significant is a We

Jamie Wilen

you it make first Life, brand of model? your When store off wondering hope on metrics you store, lastly retail was awareness Salt about money some and a into almost can it. talk the And we as of we of it, go

program outlined open to these the what and over be the Now, are it you how talk but several next appears, stores for you've profit about going years, center. you're stores profitable? volumes especially could it with reasonable many Can really a

Bob Humphreys

growth of a continued generally stores taken not What retail are get profitable us each is slowed those them on for they basis. the store it's now, yet. significant full-year too by a couple as we we that. operate right to So realized all years seen we store That and true and as have profitable model

we what to e-commerce that have and good the per build foot that's our stores hired particularly pick And from West continue square opportunities, to we've Coast consultant of California. them growth to help branding financial We and retailer thing. see This are sales we sort growth and like our and on a retail those more year, working. as traditional used think good a us shipments our and sites model expectations in on

selected not but in of process or as is to us yet, have they select that helped any So sites place.

So, be all the longer-term. for to we expect do profitable locations of

We horse still we get these make a to sure take into slow orders cart also of don’t on store ahead the the will movement retail operations.

Jamie Wilen

I'm the the numbers you write confused what put going rate rate, year's to and fiscal what coming us quarter. is this would what be you your every And tell when on earnings tax expected in year? rate to as Could be tax always lastly your you tax as

Deb Merrill

year it, prior changes came it tax the Well, a on interpretations out in after already made of legislation of the what changes of I this has meant it will challenge was try. the implementation more and challenge it and Unfortunately, that. all even a to and

by year. upcoming a on a which were in was XX% again, actually And exclude of low most that were the zero tax in reform rate. jurisdictions, foreign tax from in that lower being just if the implementation items this have driven tax that situation. a said, them All in there profits and U.S. benefit put have our year able you in others that at and fiscal come tax So to rate that begin On this upcoming we tax fiscal looking are its legislation forward will we double-digit rate year. tax and go maybe than basis, is for XX%, we

Bob Humphreys

add to Jamie, And would that. then, I just

earn As money. highly Deb it's talking, where that important was of obviously we

profits, Salt And profits. DTGXGo U.S. so as Life based grows, U.S. based that’s that’s as grows

we years expect, way work that or mid the year. in So to in current the while expect up as be rate we would understand tax our the make expect, profit know go in more would the said, still over she we and that upcoming business laws. plans this but country, would If teens tax out as fiscal as we the next less we XX% several

Operator

Chris Neuberger to Berman. from on move We’ll Reynolds

Chris Reynolds

general I inventory. question about just your a had

good. So customers orders seems pull the was you nice can looks and the outlook about choppy and and big like terrific quarter talked apparel categories pretty But were back. just

You inventory would levels out overall disappointing How your today. dealers today? you had of characterize numbers

Bob Humphreys

good. think, We

still other costs in less year. higher have inventory. Obviously, inventory in costs did last this we We time and input you units got cotton than

levels We’re manufacturing in business own and actually our off tweaking our based anticipated up facilities inventory output level.

on always we’ve So from better but I we're off we a more operate business speaking, would standpoint last been or than to an generally efficiently the matched or focused and that two. bit little are year like inventory our well over think

Operator

Moving onto Associates. First [Richard from McGee]

Unidentified Analyst

forward? refinancing with rising, repayment interest your like, schedules concerns what I have as go was if debt we you wondering about rates any look and

Deb Merrill

is the for that. programs. flows our answer We outside our concerns making about do that for free the been and cash with concerns our year has group stage but use use that a XXXX do after typically a we our the not that, anticipate the We our at no. every So investments growth through from will of not flow down cash business, that But of long our we have game, share any do business flows the from from and repurchase standpoint. debt. pay have lasts that cash debt very do to time, this agreement excess continued We we’ve have

Of continues year. improve so up. leverage standpoint, concerns going debt to that this But no in course overall from which time, rates is cost our point rising at each of interest are and

Operator

Dave from next is Roth Capital And Partners. King

Dave King

to wanted I I more just one could. squeeze in, if

targeting Just consumer? on business. And quarter then the Soffe talk you operating business, military between that you margins about the possibly and last think single-digit I the mid on if performance were for

to Just when Thanks. get do how level you close get to and that there? can

Bob Humphreys

they solid, choppy is of military of it's little order and with flow. call some business on a the out military but out a the any, bit product calls the might these and it's So then haphazard not programs lot

quarter areas short year. fairly through also fiscal ecommerce that; are good end so are ran that feel was all at other having of our about a the issue a growing some feel good about retail so and growing increasing distribution military, growth are in military BXB It with growing nicely of we that; site, about last number process we and good enjoyed for in that good big it's on of business; Soffe. those and the business, our for store, that we We the so Soffe channels our box success we third some of supporting years

on growing several labor into dollars shortly so lost prison year. Just was care But areas year. which they in-house that take will their that business, we this a and that concept, of other a have brought million

we line Soffe out would slight of growth some this expect year. So top

Our to cost come continuing are Soffe down. at

expect And to operating a in so, two the get mid Soffe. into single-digit at or we would that year next maybe to profit start

Operator

[Operator Wilen Jamie take Instructions] Wilen We'll from Management.

Jamie Wilen

relative quarter. talk way indications half sales first You levels are of are year? through how going Any about now could the to that last your you

Bob Humphreys

October off started for good us.

had that of that We've really inflows this a to start. doing so file maybe closing shipments good order good from have Monday. busy that’s bit some year, been in days and our K hurricane go out all really XX been fiscal this but felt didn't we that discussing, we a anyway, expect the little with about of and good October, earlier that in year And tailwinds got shipments we've about we're

that the focused getting starting behind that And and get making more sales and excited we're we're on analysis so of this. it, while And next week. to product get into we'll obviously shipping

Jamie Wilen

cotton And to relatively it anticipate stable? goes, pricing now. relatively margins is like stable seem Would far be as you

Bob Humphreys

as pricing. goes steady cost say over those made we progress XX-months I'd did on by last getting Yes, marketplace. accepted the of our cotton really good And and the she increases pricing into

we consolidated… margins that and to expect continue on expect to have 'XX slightly in now, would right a better fiscal So

Jamie Wilen

And how you us Could multiple tell below nice of earnings. book lastly, outstanding? back and you a buying where stock did many shares currently are

Deb Merrill

it's Jamie, believe I $X.X million… about

Bob Humphreys

I fully basis. on higher about so million, a fully $X.X believe, a diluted But diluted, on

Deb Merrill

Yes, fully million about of $X.X $X.X fiscal an diluted said, there's average $X.X and fully now. ended million, for as with 'XX Bob probably, diluted right million,

Operator

the no back like I’d there’re And Instructions]. [Operator further closing no over comments. to queue the for call Humphreys further in questions queue. questions the there’re in to Bob And hand

Bob Humphreys

a excited look first we Okay, our quarter fiscal well very thanks in you months. will call We're on joining us about our to XXXX XXXX our you here as earnings forward in And for progress today. Thank on updating speak. and for much. hard are our fiscal few just working we

Operator

This concludes today’s presentation. participation. Thank you for your

disconnect. now may You

Delta Apparel (DLAPQ) 15 Nov 182018 Q4 Earnings call transcript