Delta Apparel : Non-GAAP Reconciliation Q3 2023
|
|
|
Five-day Change | Changes to the 1st January | |
|
8.300 USD |
+2.09% |
-5.79% |
-21.77% |
|
RECONCILIATION GROSS MARGINS, OPERATING NET INCOME AND NET INCOME WITH NON-GAAP MEASURES ADJUSTED GROSS MARGINS, ADJUSTED OPERATING NET INCOME AND ADJUSTED NET MARGIN
Unaudited (in thousands)
|
Unaudited reconciliation of Gross Margin with Adjusted Gross margin |
Three Months ending |
Nine Months Ending |
||||||
|
June 2023 |
June 2022 |
June 2023 |
June 2022 |
|||||
|
Gross Margin |
$ |
13,935 |
$ |
30,693 |
$ |
43,768 |
$ |
87,219 |
|
Production Curtailment Costs (1) |
3,340 |
– |
7,589 |
– |
||||
|
Cotton Costs (2) |
6,906 |
– |
22,027 |
– |
|
Adjusted Gross Margin |
$ |
24,181 |
$ |
30,693 |
$ |
73,384 |
$ |
87,219 |
|
22.7% |
24.2% |
22.7% |
23.6% |
|||||
|
Unaudited reconciliation of operating income to adjusted operating income |
Three Months ending |
Nine Months Ending |
||||||
|
June 2023 |
June 2022 |
June 2023 |
June 2022 |
|||||
|
Operating (Loss) Income |
$ |
(4,461) |
$ |
9,295 |
$ |
(12,438) |
$ |
29,553 |
|
Production Curtailment Costs (1) |
3,340 |
– |
7,589 |
– |
||||
|
Cotton Costs (2) |
6,906 |
– |
22,027 |
– |
||||
|
Restructuring costs (3) |
32 |
– |
3,344 |
– |
||||
|
Adjusted Operating Income |
$ |
5,817 |
$ |
9,295 |
$ |
20,522 |
$ |
29,553 |
|
Unaudited reconciliation of net income to adjusted net income |
Three Months ending |
Nine Months Ending |
||||||
|
June 2023 |
June 2022 |
June 2023 |
June 2022 |
|||||
|
Net (Loss) Income |
$ |
(6,287) |
$ |
6,240 |
$ |
(16,841) |
$ |
20,023 |
|
Production Curtailment Costs (1) |
3,340 |
– |
7,589 |
– |
||||
|
Cotton Costs (2) |
6,906 |
– |
22,027 |
– |
||||
|
Restructuring costs (3) |
32 |
– |
3,344 |
– |
||||
|
Tax Impact |
(2,775) |
– |
(8,950) |
– |
||||
|
Adjusted Net Income |
$ |
1,216 |
$ |
6,240 |
$ |
7,169 |
$ |
20,023 |
|
Reconciliation of Delta Group segment Gross Margin with Delta Group segment Adjusted Gross Margin (Unaudited) |
||||||||
|
Three Months ending |
Nine Months – Ending |
|||||||
|
June 2023 |
June 2022 |
June 2023 |
June 2022 |
|||||
|
Gross Margin |
$ |
5,254 |
$ |
20,227 |
$ |
18,013 |
$ |
63,470 |
|
Production Curtailment Costs (1) |
3,340 |
– |
7,589 |
– |
||||
|
Cotton Costs (2) |
6,906 |
– |
22,027 |
– |
||||
|
Adjusted Gross Margin |
$ |
15,500 |
$ |
20,227 |
$ |
47,629 |
$ |
63,470 |
|
17.4% |
19.1% |
17.2% |
19.6% |
|||||
|
Reconciliation between Delta Group Segment Adjusted operating income and Delta Group Segment Operating income |
||||||||
|
Three Months ending |
Nine Months Ending |
|||||||
|
June 2023 |
June 2022 |
June 2023 |
June 2022 |
|||||
|
Operating (Loss) Income |
$ |
(3,621) |
$ |
10,701 |
$ |
(10,979) |
$ |
33,557 |
|
Production Curtailment Costs (1) |
3,340 |
– |
7,589 |
– |
||||
|
Cotton Costs (2) |
6,906 |
– |
22,027 |
– |
||||
|
Restructuring costs (3) |
32 |
– |
3,344 |
– |
||||
|
Adjusted Operating Income |
$ |
6,657 |
$ |
10,701 |
$ |
21,981 |
$ |
33,557 |
|
7.5% |
10.1% |
7.9% |
10.4% |
- Production curtailment costs consist of unabsorbed fixed cost, temporary unemployment benefits, and other expense item resulting from Company’s decision reduce production levels in order to better align to the significantly reduced demand within the activewear industry as a result of high inventory levels due to heavy replenishment activities following Supply chain challenges related to pandemics
- Cotton Costs are the excess of the Company’s sales cost over the average cotton price per pound for a recent period. The cost of the cotton over a 10-year period is $0.78 per pound. It also includes a reasonable estimate for the extra cost of what the industry calls “basis”, which must be purchased to deliver the cotton (0.15 per pound). Cotton Costs are the cost of cotton sales above $0.93 per pound.
- The Restructuring Costs include employee severance payments paid to employees in connection with our transition from our Mexico manufacturing capacity, which is more expensive, to our Central America manufacturing platform that is more efficient, employee severance payments paid in conjunction with leadership restructuring and expenses incurred for the closure of an old facility acquired through acquisition, the integration of print capacity in this facility into our network of dual-purpose digital print and blank apparel distribution facilities across the country, and other cost items incurred during restructuring activities.
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Delta Apparel Inc. This content is published on 03 August 2023 Distributed by and solely responsible for all information. Distributed by PublicThe original, unaltered version of the work. 3 August 2023 at 21:40 UTC.
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Delta Apparel, Inc., a vertically-integrated apparel company, designs, manufactures, sources, and markets a diverse portfolio of core activewear and lifestyle apparel products under our primary brands Salt Life, Soffe, Delta, etc. It designs, manufactures, sources, and markets a diverse range of activewear and lifestyle clothing products under its primary brands Salt Life, Soffe and Delta. On-demand digital print and fulfillment. The company operates in two segments: Salt Life Group, and Delta Group. Delta Group is a segment that consists of the business units DTG2Go, Delta Activewear and other business units. It offers a variety of apparel and accessory products through its Delta Direct division under the Delta, Soffe and other brands. Salt Life Group is a segment of lifestyle brands that focuses on apparel garments, accessories and headwear to meet the needs of consumers and fashion trends. It includes Salt Life and Coast, which are marketed as lifestyle brands Salt Life and COAST.
Learn more about the company