-
Operating Profit in Q3 rose 40% compared to the same quarter last year
and amounted to $12.8 million
-
Operating Cash flow in Q3 amounted to $12.5 million
-
EBITDA in Q3 totaled $15.9 million, up 35% over last year
-
Tenth consecutive quarter of rising net profit
-
Eighth consecutive quarter of growing sales
-
Cash and cash equivalents balances as of the end of Q3 amounted to
approximately $58 million
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Delta Galil CEO Isaac Dabah states, “We remain committed to an
expansion strategy designed to make us a leader in intimate apparel
and socks, as well as to drive continued strong growth in the future."
NEW YORK--(BUSINESS WIRE)--Delta Galil Industries, Ltd. (DELT/Tel
Aviv Stock Exchange, DELTY.PK/OTCQX),
the global manufacturer and marketer of branded and private label
apparel products for men, women and children, today reported its
financial results for the third quarter of 2011. The company reported
sales of $184.8 million for Q3 2011, up from $169.7 million in Q3 2010,
an increase of approximately 9%. This solid performance was driven by
sales growth in all of the company’s geographic areas of operation:
North America, Europe, UK and Israel.
“The negotiations with the Jones Group and the banks are continuing. We
currently expect that the transaction will be finalized by the end of
this year.”
For the first nine months of 2011, Delta Galil reported sales of $502.4
million, compared to $466.9 million in the same period last year, an
increase of approximately 8%.
Net profit in the third quarter of 2011 totaled $7.7 million, compared
to $6.5 million in the same quarter last year, an increase of
approximately 19%. Earnings per share on a diluted basis rose to $0.32
for the third quarter of 2011, up 19% from $0.27 in the same period last
year.
In the first nine months of 2011, the company's net profit amounted to
$19.2 million, compared to $14.9 million in the same period last year,
an increase of 28%. Earnings per share on a diluted basis rose 27%, to
$0.79 for the first nine months of 2011, from $0.62 in the same period
last year.
Delta Galil CEO Isaac Dabah stated: "We are pleased to deliver
another excellent quarter for Delta Galil. This is the tenth consecutive
quarter in which we have reported rising net profit, thanks to our
continuing focus on innovation and enhanced customer service, leading to
steady growth. We remain committed to an expansion strategy designed to
make us a leader in intimate apparel and socks, as well as to drive
continued strong growth in the future."
Commenting on the previous announcement that Delta Galil was in
negotiations to acquire the jeanswear
business and related assets of The Jones Group Inc., Mr. Dabah said:
“The negotiations with the Jones Group and the banks are continuing. We
currently expect that the transaction will be finalized by the end of
this year.”
“Among the key developments that contributed to our solid 2011
year-to-date results, our seamless business has shown continued strength
and we have enhanced our leadership position in the seamless business,
primarily in shapewear and sportswear. In addition, we saw significant
growth in our performance sport socks in Europe , as well as in our
upper market business in lingerie and men's underwear,” Mr. Dabah noted.
Continued Focus on Innovation
In other recent developments announced during the quarter, Delta Galil
continued its commitment to innovation by introducing its latest groundbreaking
fabric technology, ReaLasting
Softness™. This new patent pending technology ensures
that garments using man-made fabrics can retain their softness and
smoothness with no pilling wash after wash, allowing for longer wear and
use.
Delta Galil also launched another breakthrough in the man-made fabrics
area called RealCool
Softness™ Pro. This new technology is not only anti-pill
after many washes, but is a true performance man-made fabric with
moisture management properties. It wicks away perspiration from the skin
to the fabric's surface for evaporation, leaving the body cool, dry and
thus more comfortable.
Growth in Gross Profit, Operating Profit and
EBITDA
The company noted that higher gross profit and a stronger margin
contributed to the growth in profitability in the 2011 periods. The
company's gross profit in Q3 2011 amounted to $37.2 million,
representing 20.1% of overall sales, compared to $33.4 million in Q3
2010, or 19.7% of overall sales, an increase of some 11%. In the first
nine months of 2011, gross profit totaled $98.9 million, or 19.7% of
sales, compared to $91.1 million in the first nine months of 2010, or
19.5% of sales – an increase of approximately 9%.
The operating profit in the third quarter of 2011 was $12.8 million,
compared to $9.2 million in Q3 2010, an increase of approximately 40%.
The operating profit in the first nine months of 2011 was $28.3 million,
compared to $22.9 million in the first nine months of last year, an
increase of 23%. The improvement in the operating profit in the 2011
third quarter and nine month periods resulted primarily from the growth
in sales and gross profit, as described above.
EBITDA amounted to $15.9 million in Q3 2011, versus $11.8 million in the
same period of last year, an increase of 35%. For the first nine months
of 2011, EBITDA was $36.9 million, rising 14% compared to $32.3 million
in the same period last year.
Increase in Sales – In Israel and Around the
World
Delta Galil reported an increase in sales in all of its geographic areas
of operation.
Sales in Europe grew in the third quarter and first nine months
of this year at 40% and 32% respectively, compared to the same periods
last year. The sales increase in Europe was driven mainly by growth in
the company’s socks and seamless shapewear and sportswear products.
Sales in Israel grew in the third quarter of this year by 18% in
US dollars and 11% in NIS, compared to the corresponding quarter last
year. Sales in the first nine months of this year rose by 17% in dollars
and 10% in NIS, compared to the corresponding period last year.
The growth in sales in Israel in the third quarter and first nine months
of this year resulted from the addition of five new standalone stores,
and the remodeling of nine existing stores, which combine intimates with
the new Delta Kids concept for children.
Sales in the UK grew in the third quarter and first nine months
of 2011 by 14% and 8% respectively, compared to same periods last year,
mainly due to the growth in lingerie sales to existing customers.
Additionally, sales in North America grew by 1% in both the third
quarter and first nine months of this year, compared to the
corresponding periods, as sales growth in the upper market sector offset
the relative weakness in the US mass market.
About Delta Galil Industries
Delta Galil Industries is a global manufacturer and marketer of branded
and private label apparel products for men, women and children. Since
its inception in 1975, Company has continually strived to create
products that follow a body-before-fabric philosophy, placing equal
emphasis on comfort, aesthetics and quality. Delta Galil develops
innovative seamless apparel including bras, shapewear and socks;
intimate apparel for women; extensive lines of underwear for men;
babywear, activewear, sleepwear, and leisurewear. For more information,
visit www.deltagalil.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in this press release, the words
"anticipate," "believe," "estimate," "may," "intend," "expect" and
similar expressions identify such forward-looking statements. Actual
results, performance or achievements could differ materially from those
contemplated, expressed or implied by the forward-looking statements
contained herein, and while expected, there is no guarantee that we will
attain the aforementioned anticipated developmental milestones. These
forward-looking statements are based largely on the expectations of the
Company and are subject to a number of risks and uncertainties. These
include, but are not limited to, risks and uncertainties associated
with: the impact of economic, competitive and other factors affecting
the Company and its operations, markets, product, and distributor
performance, the impact on the national and local economies resulting
from terrorist actions, and U.S. actions subsequently; and other factors
detailed in reports filed by the Company.
Contacts
Nissim Duek
Meital Levi Tal
054-7739677
UNIK
meitall@unik.co.il
or
U.S.
Media Contact:
Stacy Berns/Jessica Liddell
Berns
Communications Group
+1-212-994-4660
sberns@bcg-pr.com