-
Sales reached $176.4 million in 2011 fourth quarter, up 15% from the
same period of 2010.
-
Net profit in the fourth quarter of 2011 reached $8.3 million, a 34%
increase over the 2010 period.
-
Sales were $678.8 million for full year 2011, up 9% over 2010.
-
Net profit for full year 2011 was $27.4 million, a 30% increase.
-
Company marks 11th consecutive quarter of rising profits
and the 9th consecutive quarter of stronger year-over-year
sales growth.
-
Isaac Dabah, CEO of Delta Galil, noted: “Our growth and expansion
strategy proved itself again in 2011. We invested significant
resources in research and development, in cooperation with the leading
global brands, to continue and grow in all our operational areas.”
TEL AVIV, Israel--(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 fourth quarter of 2011.
“In 2011, we continued to
deliver a broader range of products to meet the needs of many of our
industry’s best-known brands, leading to strong growth in both top-line
and profitability. This is the 11th consecutive quarter of
increased profits, and the 9th consecutive quarter of steady
sales growth.”
Delta Galil reported sales of $176.4 million for the 2011 fourth
quarter, compared to $153.2 million for the same quarter last year, an
increase of 15%. For the 2011 full year, sales reached $678.8 million, a
9% increase over sales of $620.1 million in 2010.
Net income attributed to the company's shareholders for the 2011 fourth
quarter was $8.3 million, rising 34% from $6.2 million for the year-ago
quarter, while fully diluted earnings per share increased to $0.35 from
$0.26. Full year 2011 net income attributed to the company's
shareholders was $27.4 million, an increase of 30% from $21.1 million in
2010, while fully diluted earnings per share rose to $1.15 from $0.87
comparing the same periods.
Investments in Innovation Driving Growth
The Company attributed the sharp growth in sales and profits to its
continued investment in innovative products, including seamless
shapewear, a successful sock program with Nike, and bra programs
developed for leading global brands.
Isaac Dabah, CEO of Delta Galil, stated: “In 2011, we continued to
deliver a broader range of products to meet the needs of many of our
industry’s best-known brands, leading to strong growth in both top-line
and profitability. This is the 11th consecutive quarter of
increased profits, and the 9th consecutive quarter of steady
sales growth.” Mr. Dabah added that the improvement in results was
accomplished despite increases in the price of cotton and cost of the
finished products.
“The growth and expansion strategy of Delta Galil proved itself again in
2011,” Mr. Dabah continued. “Delta invested significant resources in
research and development, in cooperation with the leading global brands,
to grow sales to existing and new customers by developing innovative
products and expanding the portfolio of products in the categories of
shapewear, sportswear, bras and activewear. Our state-of-the-art
technology, development expertise and ‘body-before-fabric’ philosophy
allow us to deliver product advances that appeal to consumers and stand
out in the market. We also continue to grow in the Israeli market
through our new chain of Delta Kids, and continue to invest in expanding
the retail business. In addition, we recently signed an international
license agreement with the prestigious Kenneth Cole brands in the
categories of intimate apparel and socks for men and women.”
Expanding Gross Profit, Operating Profit and
EBITDA
The gross profit of Delta Galil amounted to $37.4 million in the fourth
quarter of 2011, an increase of 24% over the fourth quarter of 2010,
which had gross profit of $30.2 million. Gross margin increased to 21.2%
of sales for the 2011 fourth quarter, from 19.7% of sales in the 2010
period. In 2011, gross profit reached $136.3 million, a 12% increase
over 2010 gross profit of $121.3 million, with the gross margin
increasing to 20.1% of sales from 19.6% of sales.
Operating profit in the fourth quarter of 2011 was $11.4 million, a 40%
increase over the $8.1 million reported in the same quarter last year.
Operating profit in the fourth quarter of 2011 included a one-time
expense of $1 million in connection with the unconsummated Jones Group
acquisition and a loss from flooding in the Thailand facility estimated
at $0.9 million. For the year, operating profit grew by 28% to $39.7
million in 2011 from $31.1 million in 2010.
EBITDA grew by 22% to $14.5 million in the 2011 fourth quarter from
$11.9 million in the same period of 2010. For the full year 2011, EBITDA
grew by 16% to $51.5 million, from $44.3 million in 2010.
Strengthening Financial Position
The net financial debt was reduced to $53.8 million at the end of 2011
from $75.0 million at the end of 2010. The reduction in debt was a
result of the positive cash flow from operations in 2011. Cash flow from
operations was $36.3 in 2011, compared to $14.3 million in 2010.
Short term deposits at the end of 2011 totaled $61.1 million, compared
to $40.0 million at the end of 2010.
The Company’s equity on December 31, 2011 was $217.2 million, or 49.0%
of total assets, compared to $197.3 million, or 47.0% of total assets,
last year.
The Company declared a dividend of $2 million, or $0.0852 per share, to
be paid in March 2012, in addition to the $4 million, or $0.17 per
share, in dividends previously paid for the year 2011.
Company Provides Outlook for 2012 Results
Delta Galil estimates that its 2012 sales will range between $700
million to $715 million, which would constitute an increase of 3.1% to
5.3% compared to 2011 sales of $678.8 million.
The Company estimates that its 2012 operating profit will range between
$44 million to $46 million, which would constitute an increase of 10.8%
to 15.9% compared to 2011 operating profit of $39.7 million.
The Company estimates that its 2012 net profit will range between $29
million to $31 million, which would constitute an increase of 5.8% to
13.1% compared to 2011 net profit of $27.4 million.
The Company estimates that its 2012 diluted EPS will range between $1.18
and $1.27, which would constitute an increase of 2.6% to 10.4% compared
to 2011 diluted EPS of $1.15 per share.
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, the 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.
|
|
|
Delta Galil Industries Ltd.
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
Thousands of Dollars
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
65,760
|
|
|
46,215
|
|
Accounts receivable:
|
|
|
|
|
|
|
|
|
|
Trade receivables:
|
|
|
|
|
103,444
|
|
|
90,317
|
|
Taxes on income receivable
|
|
|
|
|
1,434
|
|
|
725
|
|
Others
|
|
|
|
|
9,770
|
|
|
12,028
|
|
Inventory
|
|
|
|
|
110,824
|
|
|
121,275
|
|
Assets classified as held for sale
|
|
|
|
|
1,766
|
|
|
2,838
|
|
Total current assets
|
|
|
|
|
292,998
|
|
|
273,398
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
Long-term pre-paid expenses
|
|
|
|
|
322
|
|
|
198
|
|
Long-term debit balances
|
|
|
|
|
1,202
|
|
|
890
|
|
Fixes assets, net of accumulated depreciation
|
|
|
|
|
64,184
|
|
|
62,704
|
|
Intangible assets, net of accumulated amortization
|
|
|
|
|
77,390
|
|
|
75,464
|
|
Deferred tax assets
|
|
|
|
|
7,014
|
|
|
5,127
|
|
Financial derivative
|
|
|
|
|
-
|
|
|
1,830
|
|
Total non-current assets
|
|
|
|
|
150,112
|
|
|
146,213
|
|
Total assets
|
|
|
|
|
443,110
|
|
|
419,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
Thousands of Dollars
|
|
Liabilities and capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Short-term bank loans
|
|
|
|
|
62,053
|
|
|
|
57,439
|
|
|
Current maturities of long-term loans from
|
|
|
|
|
|
|
|
|
|
banking corporations
|
|
|
|
|
2,110
|
|
|
|
2,110
|
|
|
Current maturities of Debentures
|
|
|
|
|
12,367
|
|
|
|
-
|
|
|
Financial derivative
|
|
|
|
|
297
|
|
|
|
-
|
|
|
Accounts payable:
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
|
|
55,920
|
|
|
|
52,959
|
|
|
Taxes on income - payable
|
|
|
|
|
1,770
|
|
|
|
854
|
|
|
Others
|
|
|
|
|
39,096
|
|
|
|
41,506
|
|
|
Total current liabilities
|
|
|
|
|
173,613
|
|
|
|
154,868
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
Loans from banking corporations
|
|
|
|
|
|
|
|
|
|
Less current maturities
|
|
|
|
|
1,504
|
|
|
|
3,614
|
|
|
Severance pay liabilities, less plan assets
|
|
|
|
|
1,183
|
|
|
|
472
|
|
|
Other non-current liabilities
|
|
|
|
|
3,900
|
|
|
|
5,296
|
|
|
Debentures
|
|
|
|
|
41,506
|
|
|
|
58,023
|
|
|
Financial derivative
|
|
|
|
|
2,978
|
|
|
|
-
|
|
|
Deferred tax reserve
|
|
|
|
|
1,182
|
|
|
|
-
|
|
|
Total non-current liabilities:
|
|
|
|
|
52,253
|
|
|
|
67,405
|
|
|
Total liabilities
|
|
|
|
|
225,866
|
|
|
|
222,273
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
Equity attributable to parent company shareholders:
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
23,106
|
|
|
|
23,091
|
|
|
Share premium
|
|
|
|
|
121,216
|
|
|
|
120,966
|
|
|
Other capital reserves
|
|
|
|
|
(633
|
)
|
|
|
1,465
|
|
|
Unassigned income balance
|
|
|
|
|
81,084
|
|
|
|
58,969
|
|
|
Treasury shares
|
|
|
|
|
(9,700
|
)
|
|
|
(9,700
|
)
|
|
|
|
|
|
|
215,073
|
|
|
|
194,791
|
|
|
Non-controlling interests
|
|
|
|
|
2,171
|
|
|
|
2,547
|
|
|
Total equity
|
|
|
|
|
217,244
|
|
|
|
197,338
|
|
|
Total liabilities and equity
|
|
|
|
|
443,110
|
|
|
|
419,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delta Galil Industries Ltd.
|
|
|
|
Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
For the Year Ending December 31
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
Thousands of Dollars
|
|
|
|
|
|
|
(Except for per-share data)
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
678,819
|
|
|
|
620,074
|
|
|
|
572,534
|
|
|
Cost of sales
|
|
|
|
|
542,496
|
|
|
|
498,805
|
|
|
|
468,831
|
|
|
Gross profit
|
|
|
|
|
136,323
|
|
|
|
121,269
|
|
|
|
103,703
|
|
|
Selling and marketing expenses
|
|
|
|
|
73,815
|
|
|
|
65,207
|
|
|
|
66,342
|
|
|
General and administrative expenses
|
|
|
|
|
25,705
|
|
|
|
25,347
|
|
|
|
21,956
|
|
|
Other revenues, net
|
|
|
|
|
2,858
|
|
|
|
2,494
|
|
|
|
761
|
|
|
Restructuring expenses (income), net
|
|
|
|
|
-
|
|
|
|
485
|
|
|
|
(1,331
|
)
|
|
Impairment of fixed assets
|
|
|
|
|
-
|
|
|
|
992
|
|
|
|
1,945
|
|
|
Loss of capital from the sale of subsidiary
|
|
|
|
|
-
|
|
|
|
666
|
|
|
|
-
|
|
|
Operating profit
|
|
|
|
|
39,661
|
|
|
|
31,066
|
|
|
|
15,552
|
|
|
Finance expenses, net
|
|
|
|
|
7,077
|
|
|
|
7,817
|
|
|
|
6,369
|
|
|
The Company’s share in profits of affiliate
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(41
|
)
|
|
Profit before taxes on income
|
|
|
|
|
32,584
|
|
|
|
23,249
|
|
|
|
9,224
|
|
|
Taxes on income
|
|
|
|
|
5,009
|
|
|
|
2,067
|
|
|
|
1,574
|
|
|
Yearly profit
|
|
|
|
|
27,575
|
|
|
|
21,182
|
|
|
|
7,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive profit (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial profits (losses) – defined employees benefit plan
|
|
|
|
|
(559
|
)
|
|
|
(139
|
)
|
|
|
23
|
|
|
Net change in cash flow hedging transactions
|
|
|
|
|
(959
|
)
|
|
|
47
|
|
|
|
-
|
|
|
Adjustments from the translation of financial statements
prepared
in foreign currency
|
|
|
|
|
(1,381
|
)
|
|
|
1,429
|
|
|
|
-
|
|
|
Taxes on income and expenses charged directly to other
comprehensive
profit (loss)
|
|
|
|
|
545
|
|
|
|
54
|
|
|
|
(105
|
)
|
|
Other comprehensive profit (loss) for the year, net of tax
|
|
|
|
|
(2,354
|
)
|
|
|
1,391
|
|
|
|
(82
|
)
|
|
Net comprehensive income for the year
|
|
|
|
|
25,221
|
|
|
|
22,573
|
|
|
|
7,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attribution of net income (loss) for the year:
|
|
|
|
|
|
|
|
|
|
|
|
|
To shareholders of the parent company
|
|
|
|
|
27,447
|
|
|
|
21,060
|
|
|
|
7,662
|
|
|
To non-controlling interests
|
|
|
|
|
128
|
|
|
|
122
|
|
|
|
(12
|
)
|
|
Total net income for the year:
|
|
|
|
|
27,575
|
|
|
|
21,182
|
|
|
|
7,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attribution of total comprehensive profit (loss) for the year:
|
|
|
|
|
|
|
|
|
|
|
|
|
To shareholders of the parent company
|
|
|
|
|
25,093
|
|
|
|
22,451
|
|
|
|
7,580
|
|
|
To non-controlling interests
|
|
|
|
|
128
|
|
|
|
122
|
|
|
|
(12
|
)
|
|
Net comprehensive income for the year
|
|
|
|
|
25,221
|
|
|
|
22,573
|
|
|
|
7,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In USD
|
|
Earnings per share attributable to equity holders of the
parent
company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
1.17
|
|
|
|
0.90
|
|
|
|
0.40
|
|
|
Diluted
|
|
|
|
|
1.15
|
|
|
|
0.87
|
|
|
|
0.40
|
|
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