Delta Apparel, Inc. Investor Presentation October 2019 Forward - - PowerPoint PPT Presentation

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Delta Apparel, Inc. Investor Presentation October 2019 Forward - - PowerPoint PPT Presentation

Jul 20, 2023 322 likes •670 views

Delta Apparel, Inc. Investor Presentation October 2019 Forward Looking Statements This presentation contains Forward Looking statements which reflect the Company's current expectations regarding future events and which involve risks

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Delta Apparel, Inc.

Investor Presentation

October 2019

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Forward Looking Statements

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This presentation contains “Forward Looking” statements which reflect the Company's current expectations regarding future events and which involve risks and uncertainties. Although we believe that our expectations are based on reasonable assumptions, actual results could differ materially from those projected in this presentation.

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Please refer to the written materials made available to you in connection with this presentation as well as the Company’s most recent Form 10-K and other SEC filings for a more detailed discussion of some of the risks facing the Company that could affect the forward looking statements in this presentation.

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Finally, please note that any “Forward Looking” statements are made only as of the date of this presentation and the Company does not commit to update or revise these statements even if it becomes apparent that any projected results will not be realized.

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MANUFACTURING REALIGNMENT

  • M. J. Soffe

Acquired October 2003 Junkfood Clothing Co. Acquired August 2005 Intensity Athletics Acquired October 2005 Offshore Textiles Ceiba Textile August 2006 FunTees Acquired October 2006 The Game Acquired March 2009 Art Gun, LLC Acquired December 2009 The Cotton Exchange Acquired July 2010 Salt Life Exclusive License December 2010 Coast Apparel Acquired August 2016

STRATEGIC INITIATIVES

Salt Life Acquired August 2013 The Game Divestiture March 2015

.biz

Public Company June 2000

Junkfood Clothing Co. Divestiture March 2017 DTG2GO Acquired March 2018 Launch of Salt Life Beer June 2018 SSI Acquired October 2018

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019

Delta Apparel, Inc.

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* Approximate for FY19

DELTA GROUP ~$385M * SALT LIFE GROUP ~$45M *

MANUFACTURING PLATFORM

Delta Apparel, Inc.

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ACTIVEWEAR

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Delta Apparel, Inc. – Sales Growth

$76 $98 $104 $91 $90 $100 $112 $93 $102 $103 $119 $104 - $106

Qtr 1 Qtr 2 Qtr 3 Qtr 4

FY17 * FY18 FY19 Annual

(in millions) $396 $370

* Excludes $9.4 million of sales from the since-divested Junkfood Clothing Company business

~$428 - $430 5 Delta Apparel, Inc. Investor Presentation |

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Growth Initiatives

▲ Strong core business, Delta Activewear, continues to

gain market share and expand customer base

▲ DTG2Go’s cutting edge technology is revolutionizing

the changing retail platform with digital print and fulfillment capabilities

▲ Significant growth potential with lifestyle brand, Salt

Life

▲ Double-digit growth across our eCommerce sites;

remains our most profitable sales channel

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Delta Activewear

CATALOG CORE BASICS CATALOG FASHION BASICS

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FUNTEES PRIVATE LABEL

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▲ Consistent 5% Sales CAGR over eighteen years ▲ Generating ~10% EBITDA margins

FY00 FY08 FY18

$115

~ $180 ~

$284

Sales

(in millions)

Strong Core Business, Delta Activewear

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$150 $98 $14 $137 $109 $37 $134 $102 $49

CORE BASICS PRIVATE LABEL FASHION BASICS

FY16 FY18 FY19 (in millions)

(4%) CAGR +6% CAGR (2yr) +1% CAGR (3yr) +52% CAGR

Lowest margins Highest margins

Sales

FY16 FY18 FY19 FY16 FY18 FY19

Strong Core Business, Delta Activewear

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Strategically Expanding Margins

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San Pedro Sula, HN

Strong Core Business, Delta Activewear

MANUFACTURING

§ Fayetteville, NC § Rowland, NC § Ceiba Textiles, Honduras § Campeche, Mexico § La Paz, El Salvador § San Pedro Sula, Honduras

DISTRIBUTION § Clinton, TN § Columbus, OH § Cranbury, NJ § Fayetteville, NC § Lewisville, TX § Miami, FL § Opelika, AL § Los Angeles, CA

Campeche, MX Ceiba, HN La Paz, ES Miami, FL Opelika, AL Rowland, NC Fayetteville, NC Cranbury, NJ Los Angeles, CA Columbus, OH Lewisville, TX Clinton, TN

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… Achieving 20%+ Sales CAGR

§

Only vertical digital print supplier in the world

  • Seamless fulfillment integrated with Delta garments
  • Fashion and core basics, fleece, shorts and athletic uniforms

§

Industry leader in digital print and fulfillment capabilities

  • Innovative technology
  • Polyester printing
  • Ability to produce over 90,000 unique prints per day

§

State-of-the-art equipment

§

World class quality assurance

§

Speed-to-market

  • Orders shipped in 24-48 hours
  • Worldwide shipping to over 100 countries

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Reaching 99% of US population in 1-2 day ship with ~50% in 1 day

Reno, NV Miami, FL * Clearwater, FL Fayetteville, NC Storm Lake, IA Cranbury, NJ * Lewisville, TX *

* DTG facility integrated with Delta Activewear distribution

…Achieving 20%+ Sales CAGR

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

FY18 FY19 Projected FY20

Transition Customers to Delta Products

Non-Delta Delta Non-Delta Delta Non-Delta Delta

…Achieving 20%+ Sales CAGR

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DELTA DIGITAL DECORATION

powered by:

www.DeltaApparel.com/DigitalDecoration

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Graphic Impressions

Digital Impressions < 5% of total

How large is the potential digital print market?

…Achieving 20%+ Sales CAGR

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FY17 FY18 FY19 FY20 100% 99% 98% 86%

eCommerce Promotional Traditional Retail Screen Printers

1% 1% 2% 1% 10% 2%

…Achieving 20%+ Sales CAGR

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FY10 FY14 FY17 FY18 FY19E 3 Year Outlook

Acquired Art Gun December 2009 Built proprietary technology and grew business Acquired DTG2Go March 2018 Acquired SSI Digital Print October 2018

~ $100m

$10m

~ $15m ~ $60m ~ $27m

$0m

DTG2Go achieving double-digit operating profits with 20%+ EBITDA margins

… Achieving 20%+ Sales CAGR

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…Positioned for Double-Digit Growth

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Over 2 Million Decals Sold

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1 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,00 9,000 10,000

Salt Life Decals

Cumulative Decals Sold

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SALT LIFE SLX – THUNDER JACKET AND PANTS

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Optics

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Swim

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Salt Life Beverage

June 2019 SC June 2018 FL March 2019 GA May 2019 AL & TN FUTURE

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Salt Life Retail

EXISTING

Orlando, Florida - NEW Tampa, Florida Daytona Beach, Florida Jacksonville Beach, Florida Huntington Beach, California San Clemente, California Columbus, Georgia

COMING SOON

Key West, Florida Destin, Florida North Palm Beach, Florida

Salt Life Retail

EXISTING

Orlando, Florida - NEW Tampa, Florida Daytona Beach, Florida Jacksonville Beach, Florida Huntington Beach, California San Clemente, California Columbus, Georgia

COMING SOON

Key West, Florida Destin, Florida North Palm Beach, Florida

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B to C

Salt Life and Soffe

(in millions)

B to B

Delta Activewear and Soffe

$4.6 $5.1 $5.4 FY17 FY19

eCommerce – Sales Growth

FY18

+8% CAGR +21% CAGR

$17.1 $20.8 $25.1 FY17 FY19 FY18

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Uniquely Positioned….Tariffs

▲ Western hemisphere vertical manufacturing platform

servicing both Delta Group and Salt Life Group

▲ Less than 5% of total sales are sourced from China

  • Opportunity to internally produce certain of these garments

▲ Expanding manufacturing capacities to support anticipated

private label growth

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Growth Initiatives

▲ Strong core business, Delta Activewear, continues to

gain market share and expand customer base

▲ DTG2Go’s cutting edge technology is revolutionizing

the changing retail platform with digital print and fulfillment capabilities

▲ Significant growth potential with lifestyle brand, Salt

Life

▲ Double-digit growth across our eCommerce sites;

remains our most profitable sales channel

32 Delta Apparel, Inc. Investor Presentation |

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Delta Apparel, Inc. Investor Presentation |

Q & A

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