The first quarterly results posted by Delta Apparel Inc(AMEX: DLA)since it became an independent business at the end of June, showed on-target sales of $30.6 million, up 6.9 per cent from $28.7 million in the first fiscal quarter of last year.

The company, a vertically integrated supplier of knit apparel, particularly T-shirts, also benefited from increased output at all of its factory facilities. The gross margin increased to $7.2 million, or 23.6 per cent of sales, compared to $3.7 million, or 12.9 per cent of sales, in the prior year quarter. Operating earnings were $4.6 million, up $2.8 million from $1.8 million in the first fiscal quarter of last year.

"Delta Apparel made considerable progress during the first quarter of fiscal 2001 in accomplishing its short term and long term business objectives," said president and CEO Robert W Humphreys.

"Sales growth was on target, and we exceeded our gross profit expectations for the quarter. This performance was driven by a further improvement in our sales mix."

"We also made progress on the manufacturing front with increased output at all of our facilities compared to the first quarter of last year. During the quarter, we started training sewing operators for our Mexico expansion and are now making first quality garments in our training center."

About Delta Apparel Inc
Delta Apparel Inc is a vertically integrated supplier of knit apparel, particularly T-shirts. The company sells its products as blanks, which are then screen printed or embroidered with designs and logos for sales to consumers. Delta Apparel was spun-off on June 30 2000 as an independent business when Delta Woodside Industries Inc. separated into three businesses. Delta Apparel has operations in four states and two company-operated sewing facilities in Honduras, and employs about 2,200 worldwide. 

SELECTED FINANCIAL DATA:
 (In thousands, except per share amounts)
 
                                             Quarter Ended
                                  Sept 30, 2000          Oct 2, 1999
                                 ---------------       ---------------
 Net Sales                       $       30,649                28,659
 Cost of Goods Sold                      23,408                24,966
                                 ---------------       ---------------
 Gross Margin                             7,241                 3,693
 
 SG&A                                     2,660                 1,905
 Other Expense/(Income)                      (6)                   11
                                 ---------------       ---------------
 Operating Income                         4,586                 1,777
 
 Interest Expense                           295                 2,213
 Taxes                                      774                    23
 
                                 ---------------       ---------------
 
 Net Income                      $        3,518         $        (459)
                                 ===============       ===============
 
 Weighted Average Shares
  Outstanding (1999 Proforma)
   Basic                                  2,408                 2,380
   Diluted                                2,417                 2,380
 
 Net Income per Common Share
  (1999 Proforma)
   Basic                         $         1.46         $       (0.19)
   Diluted                       $         1.46         $       (0.19)
 
 
                                  Sept 30, 2000          Oct 2, 1999
                                 ---------------       ---------------
 Current Assets
   Cash                          $        3,899         $         102
   Receivables                           18,599                16,268
   Inventories                           32,016                25,716
   Other Assets                           1,951                 1,323
                                 ---------------       ---------------
 Total Current Assets                    56,464                43,409
 
 Noncurrent Assets
   Property, Plant & Equipment           25,634                29,880
   Other Noncurrent Assets                  308                   197
                                 ---------------       ---------------
 Total Noncurrent Assets                 25,942                30,077
 
                                 ---------------       ---------------
 
 Total Assets                    $       82,406         $      73,486
                                 ===============       ===============
 
 Current Liabilities
   Current Portion of Long-Term
    Debt                         $        2,000         $         239
   Other Current Liabilities             15,114               109,456
                                 ---------------       ---------------
 Total Current Liabilities               17,114               109,695
 
 Noncurrent Liabilities
   Long-Term Debt                         7,167                30,457
   Other Noncurrent Liabilities             696                   349
                                 ---------------       ---------------
 Total Noncurrent Liabilities             7,863                30,806
 
 Stockholders' Equity/
  (Divisional Deficit)                   57,429               (67,015)
 
                                 ---------------       ---------------
 
 Total Liabilities and
  Stockholders' Equity/
  (Divisional Deficit)           $       82,406         $      73,486
                                 ===============       ===============