Delta Apparel (DLAPQ) 9 Feb 222022 Q1 Earnings call transcript

Please standby as we're about to begin. Thank you and good afternoon to everyone participating in Delta Apparel's Fiscal 2022 First Quarter Earnings Conference Call. Please note that today's call is being recorded.

Joining us from management are Bob Humphreys, Chairman and Chief Executive Officer, and Simone Walsh, Vice President, Chief Financial Officer and Treasurer.

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. suggest may involve differ statements and and and results actual materially. projections prediction risks and uncertainty Such Please refer recent to Securities Form and the periodic reports Commission, XX-Qs. the filed including company's most Form and Exchange XX-K with the documents results differ actual the or materially could in to forward-looking contained identify statements. important those These that projections cause factors from update forward-looking note any forward-looking company of even as except and law, becomes that any statements the as apparent any Please projected not required not does or if it to results commit today, statements be are made revise by that only realized. will now Delta's Chairman I'll and Humphreys. over Bob Officer, the turn call Chief to Executive

welcoming Officer and Ernst Simone is other afternoon, British, Global and I'd Corporation, in Depot joins Atlanta. finance to London citizen. she Enterprises, President Simone and in and Good manufacturing President, career and served for you Walsh, her Delta chartered our you. and a new senior Incorporated and She including Coca-Cola companies, Vice Controller. in held PRGX traded like a retail accounted. several your Financial Simone as The our U.S. Previously, Apparel. start Incorporated, publicly in Treasurer. Vice Officer, and at interest and Novelis where Chief as by Home and roles Young Simone also Deputy started at Accounting served for introducing Thank both to Chief Delta Sony you Australia thank is today from Apparel – call

meet in not for first quarter and expectations outpaced start XXXX. tell exceed about earnings outstanding strong our fiscal pleased if and place to revenue XXXX our extremely to and which We to you today put us fiscal goals are performance, our

moving of El thank financial we our and results, to on and States, The products by our a have remained been to channels fronts, employees get the to teams distribution. many last executing providing minute many nearly challenging Mexico, across our years X,XXX across but our to on business Honduras, thousands company United Salvador. plans, two recognize I our customers the have take focused services Before so outstanding innovative of and forward and want

industry of We havea success, challenging and track proven record navigating dynamics. long

we groups resulting Over past with purpose. with in labor -- disruptions, our business faced resulting quarters, which results several have head-on agility, supply we have our inflationary part a innovation been flexibility, the for and of consider pressures, teams innovative and tremendous outstanding many shortages, tackled constituent the operating chain

our quarter XXXX the As from you December December record saw for first of growth million, sales quarter. Xst, year for prior ended a represented July an in all-time quarter, XX% $XXX.X our approximately release, press the and organic for

to one consumer have drive Florida our of in to Life continue store next over months. in was a our platforms, share and higher-margin per net Texas quarter the engagement expectations. social new growth quarter We direct-to-consumer Florida planning in are the a which City, first openings was record of also of another to build value our of our complete on in opened strong our business. Boca strong Our Hilton This million distribution. income ahead same and while media Raton, time, achieved Carolina, up direct $X.X channels wholesale December Head, creation equates diluted new performance, from for store sales segments Foley, with $X.XX Lauderdale, Florida, retail store this by and in opened represented several prior broad-based channel quarter at South should million and quarter during to of continuing shareholder the both the and orders already Salt quarter internal Texas, with Group year Sarasota, XX% Fort ended the for Salt the Life $X.X Alabama,

leases, additional in several for with discussions end continuing retail approximately operation. Life planning and stores fiscal in to XX are are year Salt this We

of more became sales better e-commerce continue we the face doors site strategically us prior can space revenue to a the strong supply deliver that many we this despite our distribution six with strong current you interact same-store has longer, been environment demand consumers, saltlife.com. center have journey constrained in the holiday our our and that allow position year XX% sales Carolina, in issues channel, broad Life from executed this servicing Life products registered North December on limiting strong navigate important reserve or for that the as to of its shopping channel progressed, demand going results, with five growth has distribution. our opened existing season and our quarters within continues growth to while on quarters, Salt engagement on we challenges. over this into reconfigured designed from Salt the see chain For our organic through manage limited magnificently has our consumer quarter of and growth availability directly last and quarter. To Fayetteville, our service inventory team recently Consumer accelerated industry despite inventory these As to dedicated and revenue more

We business margin speak, expecting our channels with are growth. shipping continued are spring associated growth, wholesale expansion as and we and our direct-to-consumer the

and the targeted this strong chain Moreover, currently increased in that by brands start spring from the distribution. vertically that to heavily channels our bottleneck. distribution in seeing product has chain XX% help offer. basis of retailers growth impacted of been have limited to which record Delta increase year services, a raw equipment progresses. in all supply more sewing output sales in be also continue now seek And integrated continues in other segment, suppliers normalize, additional production to Our many by COVID America, mix. shelf Group, ultimately we We're supply textile The see global industry, are continue impacted our us like for and print grew will a to mode, which additional to allow our to and all growth Central channels us the of delivered across our We're on now a first channels for quarter locations as $XXX.X Apparel we materials, to consolidated quarter million. Delta transportation Delta will in installing Group

manage these However, able we've by building integrated challenges, further date, utilizing been through to network. output to our vertically manufacturing

offerings but ability not customer new top resulted performance, only Our meet demand both and to broaden line our us has existing services with in customers. to strong allowed and

have we selling chain. the year, mitigate on the our majority our products last of prices the supply Over pressures impacting most to of increased inflationary

and than anytime providing further such services our in services, are revenues. in now value-adding digital history, average which as consolidated our addition, we In more printing prices, increases resulting screen selling or retail-ready increased

to Our growth services also increased a delivered allowing leveraging in increase is of our by fixed mix profits operating our manufacturing areas. cost with along us our unit and richer SG&A

in During also number business. of the milestones significant our December DTGXGo a reached we quarter,

new a from a delivery season. continue year. our of a Our approximately production mode additional environment production new with beta the the equipment over test revenue was install, printing record prior able to to take holiday of, XX% through to equipment quarterly we growth and on move We were while

year will customers As quarter. platform the provide the progresses. on the DTGXGo growth previously several as we announced, the This new foundation for on-boarded during

quarter. developed number in conjunction methodology, market with which was in Our we key a of digital-first the participants, implemented

will in for graph and us believe to meet prints in the feel retailers, made significant property in the digital-first the investments this differentiate through required and driver key digital model, holders. garments this quality, process look, marketplace, of retail expecting ensuring have brands, will standards and be we're DTGXGo the the high-quality of We intellectual We created continue business. growth a

In costs and in quarter in working the for creating our operation, customers, of the lower addition, capital DTGXGo on we needs garment units Garments, XX% business. produced Delta were reduced efficient more the a December printed

results, quarter Now, Simone, let for and call prior me join and review Simone. highlights call opening first the our the to over then our will I'll turn questions. business who financial to

Thank the delighted at Apparel have you, company. Delta Bob. exciting I'm for to time this joined

our Life Bob's Group echo and both me comments Let Delta Salt for Group.

results positive XXXX fiscal quarter outstanding with strong progressing are First we momentum. and were

levels of company our the Over the our certain consolidated into Soffe record integration business, manufacturing and the brand achieved completed of past modernized distributionoperations and year, active-wear output.

our at which An has in extraordinary several in already into have fiscal place growth research has resulted accelerate, relationships. customer Salt growth. development in saw foundation further we XXXX, extensive key continued First we In of new developed and to and investments Strategy, addition, in on-boarding Life organic the DTGXGo to Digital in the

nicely. many were opportunities multiyear in And our of -pandemic Our strategic to broad-based our reflective results our on market business. maturing ability are quarter of in first growth organic to are initiatives, place drive capitalize pre put which

prior segment. the sales of Brands Net Now, through year, and quarter million segment a segment compared We Group Delta to detailed across first Delta the Global saw results. go million Group serve. across our Retail with we XX.X% review strong $XX.X distributions in in growth in demand channels I'll XX.X% of of Direct, the were $XXX.X with growth and growth Salt and more Delta financial the Life Direct Group

branded of Brands supply services. from chain products, garments majority Global reminder, their the the sales a a Brands to Global partner in value-added with of our we're As Direct with being Retail and to sold products shipment development channels, custom of

their portfolio serve our both also e-commerce to Delta directly through the of Platinum, retail and We products retailers Soffe providing Delta, and by stores channels.

contracted growing fiscal a in also holiday fiscal our sales, representing continue XXXX. points with inflationary DTGXGo wholesale on-boarding we the in of together prior XX.X% line to and The same-store strong in see sales. Salt several the was retail & our resulted store fiscal growth quarter quarter sales from XXXX. margins with During expectations, of margin of sales contracted and showing. segments. to Gross million, XX.X% business with Life sales basis strength growth sales, manufacturing the of as in first from quarter, the saw as sourcing continued XX XX.X% first in both platforms. in customers General with Selling, compared increased over we our in This Administrative increased both year $X.X business expenses in pressure of XX% the to Gross of

our $X.X for higher was period of million an mentioned business, of sales, integration for share, same benefit and year, our also sales. X.X% against in quarter while the to million per or seeing in rate. income are or diluted income Operating the of increased driven December compared or the sales of the our increased $X.X the prior-year by tax to quarter. increase the diluted We per into $X.XX of leveraging profits previously Activewear $XXX,XXX XX% $X.XX million prior costs brand to $X.X X.X% or XXX% quarter Soffe operating fixed for first the the compared Net share lower

cash-on-hand, is and balance a lease, $XXX.X Our financing, was million. including sheet capital solid. Net debt,

to make increased with While expectations from our we debt to was inventory demand. this line in September build as continue XXXX,

end hand, $XX was the inventory quarter, of million an an But below resulting costs. increase shipping spring fromSeptember. This transportation, both $XXX the raw value and increases from our Our and increase labor number million units the at on of the of in is high in season. of inventory material, for reflection a first target

as of to We we remain XXXX. the expect through inventory fiscal constrained remainder manage

$XX continue first spending continued the Central quarter invest infrastructure retail to lower planned the some invest Salt in XXXX. in facilities, of fiscal the quarter, on the anticipate than we the on the in at investments fiscal still business, DTGXGo. continue in CapEx to receiving processes CapEx we We American spending and million at doors chain delays as for is our We manufacturing experienced $X.X year production supply approximately in in Life, new we in amount as had machinery. million This

$X.X first invest XXXX, under of Additionally, the projects we continue integrated repurchase IT quarter support supply million, program, repurchased The vertically bringing our to authorization. will company in platform. infrastructure million. end XX,XXX quarter. chain previously fiscal repurchase of share remaining announced the amount the In that for to to the under had total the repurchased million shares $X.X At first $XX.X the existing the company

Q&A. prior Now, I'll turn the to call closing comments his Bob Bob? back for over to

in deal disruptions, will cotton you of XXXX chain progress these is our know see and and fiscal fiscal in We have how labor results Simone. most been shortages further without United are progressing, of high better. even XXXX we Well, States, supply the challenges XXXX known I'll and We as unknown. that full saying fiscal we our how know fiscal with what prices. we we start would Thanks, will year by headwinds, through XXXX, that have and both first interested quarter

our and XXXX as many cycles, beyond. experience here That that gives consumer are raw also challenges a has further in for We remainder law line as being top changes, we the grow changes, well-prepared trade alongside history. we company. history public inflationary The and with XX many fiscal as expand to highest know in through continued years history, we behavior successfully our economic our sit spikes we and fashion of us other seen the navigated challenges materials in today the in Delta manage as revenues its strongest profits and have opportunities profitability probably and confidence

challenges global are the current dynamics present providing us, While economic the conditions many opportunities. changing for

all-time resulting Salt we share. combined we demand which top-line Direct, full-year On we growth our reported for and when with profit and with Brands, go-to-market double-digit business revenue Direct, last expected for and strategies, revenue call, in network, per many DTGXGo, Retail with is we earnings we key Delta quarters, results, Life, across supply powerful provides reviewed full reported earnings us strong Our our growth that in further operating our the Global that year. us provides avenues Subsequently, expansion a expect fiscal vertical growth. and XXXX record platform fiscal XXXX chain

quarter momentum can first results we And Our you the in previously Operator, for our up reach have. we objectives open have positions reflect call us business, to year any questions announced. well the full that that our we and now may building

Instructions]. [Operator you. Thank

We will go Telsey first with Dana of Telsey Group.

afternoon, Couple are go What unpack inventory type through thinking you and with to levels upcoming how results. how that growth it's change and Good of expect assumptions? demand to Can everyone, on the double-digit we you the with things. about inflation? chain, revenue meet quarters of the increases you How price on? forward, as passing changed, are going Hi. order in supply your you congratulations

mix. prices, that costs. increases, maybe X% And price into changing by along that say driven product, effect price providing are going of on XX% about Dana, at they're just selling So basic probably about our increases passing where would particularly if There's overall due quarters. we're we look at I -- five average and you And business. up increased in that basic over are to of the price is XX% our services the in is more about once last

process like quarter. other Retail the are We've our As along first out rolling price speak, we to seems own our material prices it businesses, pricing Brands of and where them we with priced Direct our and when other calendar customer's seen business them in areas Global people in and increases partner forward-looking on along. those a delivered moved raw cotton have be more that

abated. So still certainly is come I think have Energy a bit Cotton more to rates abated. and right now. wage rates volatile have not not

we continue something through really how so increases we but that. ahead have, daily we're and say just it's and So talk to I'd to look about manage that at far basis and have we of good, what on almost a so the manage think work us. And through going

next do because you are over you quarters? the for few chain supply what new the all sounds at like you on it at or is -- this to get normalizing new at all hindering how customers are ability then way And DTGXGo, see certainly your you getting constraints, looking customers? any and it And

Yes.

system. been different that So these thing what had I'd problems we The other business from other of see, move the apparel things. of say and manufacturers really I chain through and bubbles seeing is are interesting a types probably be think supply couple that's you've

issue failure plant we get labor then else a as one another soon or a as in somewhere So suddenly somewhere down. it area, there's else or shipping fixed issue or equipment

pandemic, just out tirelessly and to that able around. on safe, teams where it's service through pop time lot going wasn't just of were how facilities where in so call kind so our to brands, and I depths out to this. manufacturing we if spend global really we to the next. of a start so of it of have get able it's planning were work our But it, our have people laughable Even didn't that's up the worked been serious the And keep almost amount to much manufacturing products Salvador of we up and our El

operating in people. operations, operating our distribution the with groups limited DTGXGo on schedules print kept or of centers kept different US Our

So of going and our we nice of has are operating And well, think, end us that have that of allowed to for one, folks which been figuring products. to to added do together the quarters The we have all growth, is each time we of keep how there kind get that quarter? next sequential our demand out.

continue have down So path. this to we'll just

successful were several we goes, DTGXGo as on-boarding key far strategic in As customers.

working we that do later print. digital customers have down few it to And to are new of the We've still During country we weather last parts techniques, to that continue one equipment we production adding facilities the with get shipment different and U.S. in work process more you and expectations, already levels look on shutting done, got the that the to so patterns additional facility for our partnerships to certified holiday a the is up transfer equipment in do quality, had great deck could thing at period, quarter and that this and first we'll all new these same process. facilities and the in this opened had we hand-in-hand get be quarter hands to all customers. providers develop that weeks of done over in will

locations to So and example in continue and economy, moving what a ability can testament think forward. I having to we think it's of just a operate. looking just for print non-different customers things great great consumers are new keep it's the our where of And I our

grow of supply others chain couple quarter. their our in home we as that There's We're the and year customers we expecting with DTGXGo needing a shape growth say and are I'd during promise. the our good table have current reevaluate But will this the believe they they're a significantly to I the boarded. So recruit own together in for for lot that new of fiscal customers. There's to against rest vision us go not manage on execute of we

Thank you.

Fogel to DV move we Advisors. And with next Bill

Can Hello. me? you hear

doing? Yes, Bill. are How you

growth it questions. okay. up guys doing like Bob. company numbers. you really But How's couple going, performance, me a quarter, a of I'm that of spectacular are these trading putting value Great amazes just still sort

little of more And First, and the clearly for the us year this this and numbers I are XX%. we you towards we look expect go Can we of to you go capacity we growth think How at just be mean, to or moderate? about I linearity throughout capacity margins. kind revenues clarity how And you're on talked coming year? on give progression of that? online going related can still double-digit you as you're question constrained? is that throughout quarter you expect Thank is, that. it finally, these a a the And then as Do year? margins do on sorts you. target

Sure.

as far as capacity. So

-- our call we go and facility equipment what there, it's order been we've bottleneck boat late, will on we us. of some will on talking but That processes couple a textile will bit a debottleneck, that remove moving Central So as equipment into that new in little facilities, that quarters, towards XX% is add American about about we output. a our for have

products continue leaders that expect up of with production area along way. affect and that we in will with more ways back capability. So to to say come produce our this the I innovative year our to half employees more

of material that so we around expect But thing. to to increase more And raw there's expecting. were some constraints that. as we done now there. have output producing bit go do sort Again, a that we and we continue delivery our And little

Mexico. having on we screen of We us. that. one print, than amazing value order interesting kind stronger history we it's in would maybe how have any thought started And love When additional units to our we and equipment now are additional we screen evolved El the but printing, and been it first services. digital Salvador for in day It's it's print eliminate adding and demand printing screen more see for time

every million a that. week a be will quarter, we building in impressions printing over this week are screen we maybe So to not

general as we some plan that rate system pricing we production in so where some aside And a that to can There's gross ups that the a fixed here had margins areas expect low obviously to and we achieving. if achieve today, increases we're double-digit shot quarter. in really have a totality is a for full to gross marketplace There line through and we're costs Obviously hurts in growth lot we expectation the on influence setting soon my at supply rolling be tell there. and And are our of that's the that. first shooting the so, lever to shutdown some And that our margins something level ultimately that the similar might sit helps downs going what year. is that's then for but dynamic participants more bottom can for hold our out we results. what in and too year

good control Yes. margins because had we some trend? throughout operating expenses this quarter, year should those how to And those you of expect the

Yeah.

think I margins operating are higher again to in revenue. to over going year but last full year, be So our similar

I'll is that I'll can it is kind the -- XX% double-digits XX%, XX% go. you double-digits. mean, maybe XX% to [Indiscernible] you low to all. that to I And range of or corner XX% you before -- a to low XX%, -- kind Double just bit Okay. digit little at try of let

that narrow can you. range I for Yes,

we today, of our see an where possible the proud XX% we growth we would manufacturing. think our capacity can't we not XX% of sustain stage again, it's of I anything north quarter constraints. had And would So be at that in revenue -- we with based on in organic this it this for what are

appears be Although that demand there. the would it

year, production we're them this we looking customers half point, happen our customers to that. a that service tell ones Major can't chain, platform. do We vertical no manufacturing the are at provide particularly the and for more supply in to this asking on telling are of are and to place back business, us

a of and, Delta companies is Again, dynamics, to confidence think in of have ability to for so I Apparel lot of organically bodes just built, we've world a think demand a totality. changing well deliver I our that that ability So in relationships lot lot people's grow it strong. our

constrained for Great. cumulatively Thanks I you that maybe your on being sure about guess, sold thinking so and capacity think -- might much time. out, aggressive given completely you you're more are the pricing I'm you're you side so you have be if if But touch. it people thank raise little Maybe Bye. the away. bit, anyway, help. in turning might price you much. Great about quarter. We'll

Thank you.

next Jamie Wilen, Wilen we'll go Management. And to

Impressive questions. results, fellows. Three different

you tell of First, have cost the we about the difficulty American labor. you with availability the do and Salvador operations the of and could Central States same labor that in us have of the low the -- and Honduras, the El

have countries to unemployment don't in I I day I think We up think -- but still with production still there, every a with obviously, rates. And availability to XX% problem from it, rates quote the I the recovered XX%, those don't labor. are hate of pre-COVID number probably because in keep haven't

in countries. have growing We group educated of leaders a those

or our -- periods you Manufacturing, All of time. region of or there managers, our long Almost from of and for the engineers, anyway, worked else have are plant and from of lived have all leadership what management and VP

company our of this better. is is my see and help the make work their so point comforting all it's just country, really that and enthusiasm the have and to -- for to ethic encouraging And they and

is as The good. have that infrastructure not problem. don't we So

and can transportation a them. have But other you electricity not is labor You less-developed problems, have things country. of problems one in can

Got you.

And does that the Is availability Salt of achieve? most happen that within Life last can the still year new same-store how getting stores have early Does they up even of X do is, On that Life, as margins look product number been mentioned And could trend on open growth Salt the gross similarly -- rather X, you you Salt of throughout or side, sales Life on year XX% stores? with at maturity stores? a do your sales your all still impressive. How same-store secondly, with better? that was you then of up that XX%, even they you growth XX%. sound to from

I'd and on our our was worst having that dropping up or in, Yes, business, three out reason the orders our say customers And that the inventory, our that, e-commerce got this inventory do business. something e-commerce where Cables two that, really merchandise. better to good specifically were of merchandise than merchandise, bags. can't were have to there I in down make. say said sucked want that we light don't support hey, We the sucking will suffered were not that constrained. we that stores a we for would on being things example, our wholesale particularly things be and management -- in was we so product because coming that light We the and very accessories is during team quarter.

could've higher yes, had think I So revenue. we

interesting. same-store As sales really goes, as far

our the to If each and in as go their do you do Stores was period just what [Indiscernible] started, a for dig behind a into that as that of we already by-store, measuring we growth open quarter, come for before one. what measurement new open try story kind But stores there's basically that. at were look we is a stores. But and exit ago exit now, an X.X there's that if it. sales of that ride I that Daytona think great is outstanding. really there maybe outlet, that by X, we But stuff you been now, beach opened to new being was go was same-store a added the example growth has lot it is a years developed,

are going to there, get So our going areas where seeing we're these business. what destination fair we're people is share

areas, the do to sell people in those them stop So have who the stuff. more opportunity more we

say consumers a building longest to do, make efficiently, doing sure in again, our for need kinds permit with Usually good to thing more and there. I'd whatever only quickly there have to them being products and teams And hold-up open our is that. and we getting our then team's having so, when those our planning we our stores they shop customers. our getting is our of enough do are of aggressive product to job service a And available

on for the season? on as in And also outlook line orders the you Okay. see wholesale your Salt what's the the Life, channel

Unbelievable. The demand --

Okay.

for [Indiscernible] product it. very of customers strong, and want wholesale our more

coming geographical where's of doors, most is number And expansion, it that from? or

broad-based. but in say shipping continues have retailers to that East it strong we're up the the who The very mean, grow with It's amount opened still to I'll Coast, areas. Southeast, increase, more I to Midwest. non-traditional in, California up continues

want probably omni good customers pretty retail it's our with consumer. -channel for people, the that it's it's Life number a us, and Salt has example So for model think of products worked Life resonating and of Salt and I this in working there, a whole

right being so now, by there e-commerce are growing out to only And channels our lack get all with consumers. of limited to our product of

And you. questions. DTGXGo two on Got side, the

for digital. Does that that You or can that talked exist I on-boarding And you customers? customers? several nature different than revenue themselves, unto And you what the of what already in thought Topic mean you existing Hot within Are about in did new customers a last year footprint. -- they about facilities these new exist facilities distribution new didn't today? new achieve your of within also, the who not growth talk as had your is. sure you done center percentage could I'm

Yeah.

So new I probably clear about not was facilities.

So in facilities. existing is equipment first new our digital

has It the have parked That's at production. holiday, one So that and we to Dallas that two one go. in already have third was in who equipment our facility. in certified people we three have and now,

or on really retailers the or industry global I think brands but larger you And customers that this own, license quality. where customers garment between sets is really primarily or go-to-market OP all or just think really onboarding the in they these is extensive not extensive understand printed. thing the it's I printed, strategies. experts and are quality, e-retailers, differentiate that. that or e-retailers so stage it's whether and this screen this cannot is key about not it have agreements combination, digital-first how the business, who they when aesthetics, that either our digitally, different are some just think And and or it's even But the

get that's level, brand you own acceptance all, that of and first you the that the when an they're quality, customer or want that quality comfort consistency of and so, that expecting. have you a you level the what if to IP of And the

do indistinguishable And versus and that's long digital a we you might so then long, on that had. standard quality But as we time well better I will very a we and matter having like it can a for the produced. previously long, and equipment make like still from high how it's as it really not might of,

good stuff of lots So there.

on-boarded the help be key. will I that the no these and year, which our of is business, time will -- further growth think will over majority already there's three for reduce this also customers doubt seasonality that

Bob. Thanks, Excellent.

Neuberger Reynolds Chris And next from we'll Berman. of hear

the the mean you taking question Yes. buyback of One, what is buyback, Bob, you, for And it kind what is have on the exactly Thank and that And question. put second does equipment like into when that two questions. facilities, I and great you some equipment a is how quick say deal. it? to and new expensive

had shares, gone You've you. low, Thank has your assume your three philosophy of growth Because but company of multiple that. of is your the keep a things last have your What's record obviously, rate positioned. years buying up stock to consistent over company for five in you'll repurchase. the is I changed lot the doing terms so how a but

were the of beta most first gearing period got time. test that. for They will production and basically it's I new just We've top exactly say are new some their equipment confidentiality of some this There's my significant So up and beyond head, the familiar agreements new off of not is we stop where for they so right I'm of technology. equipment, sites. refusal start

technology managing the type is and into to delivery the how automatically is and and about will then art, where and equipment have the be machine manage the apparel, the adjust R&D, other there it's how be technology to of we've equipment. it's the as garment talked But digital equipment that garment the people a for ending to customer. on in decade to understanding to the the just to now, it's that garment, applied everything it's for then that's know not So the having the print going for ultimately pile understanding what is

systems where print consumer. have and different differentiates years costs garment garments that over the the we a lowers have which lot to that or competitors we've locations on where speed nine to is the there's what what's now, part the closest we now. technology electronically of and end move can developed to secondly, And print to the So one, us shipping XX consumer, it. A into that we having goes significant from then our right is

you to say, that apparel we been compete And lot DCs. them is is a with are. producer, of from to people pretty to and t-shirt of in them huge and number there which I extra the sitting Apparel. use Those there's majority that vertical there garments compete can think, that only printers. add for most are you where So components with our We've Delta eliminate here business, we've digital going who getting out barriers separates an to on a shipping for players the print-on, of so the got a really, that I'm in get create garments I the that, cost the really then printers can to are us to way be by working entry daunting

that I'm So I work those that expect all rambling us forgot. with continue. to and part sorry, question, the make that are things second for we With of your that that

like mobile is. the to made so sounds able where you've the senses, very production plants It almost helpful. was demand shift to in That many you're your

like stock, the So that's stock it me. trajectory all? I'm of changed, seems opportunistic very repurchase been you've at wondering company changed years helpful and terrific, that's been But and over but repurchase. stock what's has of philosophy and the Has bought for your that the program, your growth

we week. time. an And Back do stock mean, too got I buy you to excited buy was can was you ourselves for over told lot it to else. much evolved easy and buy it our work math back could your can acquisitions, has to somebody because what weekends, pay certainly joke you little were pretty you acquisitions, the acquisition, It during get we and doing fun no and an a internally can in when do, day need the to of or where we

I the less are something about And in trading reason, than probably had but we $X our that. have million current today in half doubt, about I we and it a XXXX, if do repurchases -- just about of head share So think to see exactly I for $X what happen values. my today different off outstanding. was outstanding million prices shares know our probably of but average top don't shares

So I works believe pretty that for good. out shareholders

So would on philosophy -- our for return shareholders. intrinsic trading our versus and is of where say is versus where our stock think the that that of for I we opportunities the and use then value the company we is growth, see really look particularly. organic capital at

well know for organic as all per-share can value we calls. growth do can of You do as the other what when earnings I lever

that So buy lowest expand expand, for formula will debt-to-EBITDA our the say if been into in back we can debt. think modern about of it's our we history, Quarter-End, versus really put I our that production, was X.Xx and continue to at our output. I see shares much manufacturing we'll then demand how

and think than think still stock we we organically our have So to good it flexibility traded, be. thinly is business grow our should more I thinly

we'd like programs buying than more out pressure pressure. to selling buy there there's And have to so shares when

Thank you.

of question Advisors. from follow-up DV Fogel a have we And Bill

Yes, just one follow-up.

pieces market quickly, is, current obviously thoughts what company probably not maybe Would lot and they're consider of your is. on than And time worth where DTGXGo right more Given entities. but the wondering are that. those growing so of cap or some Life the the spin the point at you still a it's the sale of Salt either because stock a just

got things. We've done, again, maybe DTGXGo over but consider view don't and how someone have business capital. feel a else that some And Salt money will over would Life that made back and had well is by think, significant there carrying we've think, profits, years valued does, to success, have selling our and them I else. us either We all and out take just We of businesses value and been things, we much to businesses that like Salt we divestitures. when redeploy our good. sold selling for to I the harvest the those that's history. at we somewhere them always over three look worked consequences point back And Life we future DTGXGo, for us. just tax carrying sell value. of also now, to above capital allowed all their out are I And looking those that consolidated

conversations got into amount public a you you fix, of But company too. and or remaining small you relatively in being got costs, here, So public [Indiscernible]. account it's a that And the take suddenly business. to room that's that over some smaller be might we're whether and normal spreading around still board

very you Thank much.

will over any the Bob or additional call queue, Humphreys with other remarks. turn no the back questions to I closing in for now And

look second we all Hope a one. your quarter thank and have months talking questions. good you meeting a you telephonically and forward interest Well, about And in results. few for to you with

That for participation. your concludes today's you call. Thank

disconnect. now may You