Delta Apparel Announces Fiscal 2014 Fourth Quarter and Year-end Results
Delta Apparel, Greenville, S.C., recently reported its fourth quarter and year-end results for 2014. Net sales for the fiscal year ended Sept. 27, 2014 were $452.9 million, versus $483.0 million in the prior year. The company's net income, adjusted for the $4.0 million pre-tax impact of strategic initiatives, was $1.5 million, compared with net income in the prior year of $6.2 million. Without adjustment for the impact of strategic initiatives, the company experienced a net loss for the fiscal year ended Sept. 27, 2014 of $1.0 million.
Fourth quarter sales were $114.9 million, compared with $122.6 million in the prior year September quarter. The company's adjusted net income of $1.7 million for the fourth quarter was an improvement over its net income of $0.6 million in the prior year period.
In response to prolonged sluggishness within the apparel markets and to better position the company as market conditions improve, in its fourth fiscal quarter Delta Apparel initiated a reorganization of its administrative structure at all levels to streamline decision-making and information flow, as well as reduce duplicative and excess fixed costs. The company also began evaluating other initiatives focused on improving net profitability in the face of this continued marketplace weakness.
"With minor exceptions, we have streamlined our administrative workforce and completed the planned reductions, effectively delayering the management structure across all business units," said Robert W. Humphreys, chairman and CEO of Delta Apparel. "We recorded $2.2 million of severance-related expenses associated with this initiative in the fourth quarter of fiscal 2014, and anticipate recognizing almost $6 million of the expected $7 million in annualized savings in fiscal year 2015."