Delta Apparel Inc., Greenville, S.C., announced today that its board of directors has authorized management to use an additional $10 million to repurchase Delta Apparel common stock in open market transactions under the company’s stock repurchase program. Since the inception of its stock repurchase program, the company has used an aggregate $18 million to purchase 1,634,080 shares at an average price of $11.01 per share. Prior to the board’s action, only $2 million remained of the original $20 million authorization under the program.
Robert W. Humphreys, Delta Apparel’s chairman and chief executive officer, commented that under current conditions buying back the company’s stock represents a prudent use of cash. “As our stock trades at a price we believe is below its intrinsic value, in our view periodic repurchases are a sound investment opportunity and something that we can pursue without sacrificing future growth plans. We are pleased that the board has provided us with the ability to continue to take advantage of this program as we deem appropriate.”
Another benefit of our share repurchase program has been to offset the dilutive effect of our equity compensation programs to shareholders,” Humphreys added. “Since the inception of the program and including shares bought through the Dutch tender we completed in 2002, we have repurchased more shares than we have issued through these equity compensation programs.”
The company intends to make its stock repurchases pursuant to SEC Rule 10b-18. The timing and the number of shares repurchased will depend upon a variety of factors such as price, corporate and regulatory requirements, alternative investment opportunities and other market and economic conditions, and share repurchases may be suspended or discontinued at any time.
For more information, visit www.deltaapparelinc.com.
