Delta Galil Industries, Ltd., the global manufacturer and marketer of branded and private label apparel products for men, women and children, reported its financial results for the third quarter and nine months ended September 30, 2013.
The Company reported sales of $257.2 million for the third quarter of 2013, up from $234.0 million for the same quarter last year, an increase of 10%. Sales in the first nine months of 2013 were $718.8 million, compared to $571.2 million in the same period of 2012, an increase of 26%, representing an organic sales growth of 11%.
Operating income excluding non-recurring items was $21.3 million for third quarter 2013, up 35% from $15.8 million in the same quarter of 2012. In the first nine months of 2013, operating income excluding non-recurring items was $46.8 million, compared to $31.0 million in the same period of 2012, a 51% increase.
In the year-ago nine month period, total non-recurring items included a net gain of $24.2 million pre-tax, relating to a capital gain from a real estate sale and negative goodwill relating to the Schiesser acquisition, net of Schiesser acquisition costs, fixed asset impairment and restructuring expenses. In 2013, non-recurring items included a restructuring expense of $3.5 million relating to the consolidation of 6 manufacturing sites into 4 sites in Egypt, offset by restructuring income of $2.0 million from the reversal of a prior year restructuring accrual.
A key contributor to the higher operating income was an expanding gross profit margin, which rose to 27.4% in the 2013 third quarter from 24.3% a year ago. This was partly offset by higher selling, marketing, general and administrative expenses as Delta Galil invested in the growth of its business.
Net income attributable to shareholders excluding non-recurring items was $14.2 million in the 2013 third quarter, compared to $10.0 million excluding non-recurring items in the same quarter of 2012, a 43% increase.
Diluted earnings per share attributed to shareholders excluding non-recurring items were $0.56 for the 2013 third quarter, up from $0.41 for the 2012 third quarter excluding non-recurring items. For the first nine months of 2013, net income attributable to shareholders excluding non-recurring items was $29.6 million or $1.18 per diluted share, compared to $20.0 million or $0.81 per diluted share excluding non-recurring items for the same period of 2012.
