Delta Apparel Inc. (NYSE MKT:DLA) Q3 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 04:30 pm ET


Delta Apparel Inc. (NYSE MKT:DLA) Q3 2020 Earnings Conference Call - Final Transcript


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Good afternoon to everyone participating in Delta Apparel's Fiscal 2020 Third Quarter Earnings Conference Call. Joining us from management are Bob Humphreys, Chairman and Chief Executive Officer; and Deb Merrill, Chief Financial Officer and President of Delta Group.

Before we begin, I'd like to remind everyone that during the course of this conference call, projections or other forward-looking statements may be made by Delta Apparel's executives. Such projections and statements suggest prediction and involve risk and uncertainty, and actual results may differ materially. Please refer to the periodic reports filed with the Securities and Exchange Commission, including the Company's most recent Form 10-K and Form 10-Q filed today. These documents identify important factors that could cause actual results to differ materially from those contained in the projections or forward-looking statements. Please note that any forward-looking statements are made only as of today. And except as required by law, the Company does not commit to update or revise any forward-looking statements even if it becomes apparent that any projected result will not be realized. Today's conference is being recorded.

I'll now turn the call over to Delta's Chairman and Chief Executive Officer, Bob Humphreys. Please go ahead.

Robert W. Humphreys

Good afternoon, and thank you for joining us on our Fiscal 2020 Third Quarter Earnings Call. I'll discuss our business results, highlighting the progress and momentum that we have experienced all of our business units, validating that Delta Apparel is not only prevailing through this difficult period but is on a clear path to returning to profitable growth and providing continued value for all of our stakeholders. I will then turn the call over to our CFO, Deb Merrill, for a more detailed discussion of our financial results, including the strong improvement in our liquidity as the quarter progressed, placing Delta Apparel in a solid and flexible financial position entering the final quarter of the year. I'm sorry. I'm having a minor technical problem here. Please bear with me.

In light of the COVID-19, there was no playbook that we or our customers could use to predict how the third quarter would play out. With that said, the momentum we experienced across our businesses as the third quarter progressed has been extremely encouraging and has further validated Delta Apparel's strategic advantages. Our diversification of sales channels, our broad geographic footprint and the strong emotional connection our Salt Life and Soffe brands have with consumers resulted in third quarter sales that exceeded our internal expectations. In fact, as we highlighted in our most recent press release, by the final month of the quarter, we were tracking at nearly 90% of our prior year sales. This strong momentum has continued through July with orders accelerating and derived from an even broader base of sales channels.

We are truly seeing incredible digital print demand from our unique DTG2Go model with COVID-19-related disruptions and supply chains this quarter. And the inability for consumers to shop in traditional retail stores, the benefits of our DTG2Go model have become even more