Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q2 2015 Earnings Presentation
20 slides from Delta Galil Industries's earnings presentation, 2015
Slide 1: Results Overview Q2 2015
DELTA GALIL INDUSTRIES LTD
Slide 2: Disclaimer (Hebrew)
האמור במצגת בכל הקשור לניתוח פעילותיה של החברה הינו תמצית בלבד ,ועל מנת לקבל תמונה מלאה של פעילות החברה ושל הסיכונים עימם מתמודדת החברה ,יש לעיין בדיווחיה השוטפים של החברה לרבות בדוח הרבעוני לתקופה שהסתיימה ביום 30ביוני .2015 בין היתר ,העובדות והנתונים ששימשו בסיס למידע המפורט במצגת
Slide 3: Q2 2015 Highlights
Q2 2015 HIGHLIGHTS 8% GROWTH IN ORIGINAL CURRENCY ($ MILLION) SALES IN ORIGINAL CURRENCY % 8% UP 8%, REPORTED SALES UP 3% TO $255.5M Q2 2015 Q2 2014 CHANGE VS LAST % CHANGE IN ORIGINAL CURRENCY YEAR OPERATING PROFIT DECREASD 7% Sales 255.5 249.2 3% 8% TO $14.5M COMP. TO $15.5M (7%) INCLUDING $1.4M N
Slide 4: H1 Highlight
H1 HIGHLIGHT 11% GROWTH IN ORIGINAL CURRENCY ($ MILLION) IN ORIGINAL CURRENCY % CHANGE % CHANGE 11% UP 11%, REPORTED SALES UP 4% TO $508.4M YTD 2015 YTD 2014 VS LAST IN ORIGINAL YEAR CURRENC OPERATING PROFIT DECREASED 2% Sales 508.4 487.2 4% 11% TO $29.8M COMP. TO $30.4M (2%) INCLUDING $3.2M NEGATIV
Slide 5: Strong Balance Sheet
STRONG BALANCE SHEET ($ MILLION) JUNE 30 % JUNE 30 % 2015 FROM TOTAL 2014 FROM TOTAL $200M Cash and cash equivalents 200.0 25% 117.3 8% CASH ON HAND Other current assets 342.4 43% 330.5 49% Total current assets 542.4 68% 447.8 57% $343M EQUITY $343M Fixed assets & Intangible assets, net of accumulat
Slide 6: Improved Financial Indicators
IMPROVED FINANCIAL INDICATORS 30.06.2015 30.06.2014 Current ratio 2.98 2.66 Quick ratio 1.80 1.54 Days of Sales Outstanding 42 44 Days Payable Outstanding 47 43 Inventory Days 97 99 Operating cash flow - Q2 ($ million) 24.0 10.2 Operating cash flow - H1 ($ million) 4.2 3.6 Operating cash flow - Last
Slide 7: Results on a Quarterly Basis
RESULTS ON A QUARTERLY BASIS ($ THOUSANDS) 2014 2015 LAST 4 QUARTERS Q1 Q2 Q3 Q4 Q1 Q2 Net Sales 238,074 249,152 267,237 277,398 252,838 255,537 1,053,010 EBIT 14,838 15,538 21,672 *22,305 15,329 14,471 73,777 % 6.2% 6.2% 8.1% 8.0% 6.1% 5.7% 7.0% EBITDA 19,026 19,863 26,108 *27,959 19,646 19,074 92,
Slide 8: Sales Analysis by Geographic Area
SALES ANALYSIS BY GEOGRAPHIC AREA 8% GROWTH IN ORIGINAL CURRENCY IN Q2 2015 ($ MILLION) Q2 YTD % CHANGE % CHANGE % OF % OF % % OF % OF % 2015 SALES 2014 SALES CHANGE IN ORIGINAL 2015 SALES 2014 SALES CHANGE IN ORIGINAL CURRENCY CURRENCY U.S.A 153.9 60% 135.8 55% 13% 13% 297.3 59% 255.9 52% 16% 16% E
Slide 9: Q2 Sales and EBIT by Segment
Q2 SALES AND EBIT BY SEGMENT ($ THOUSANDS) SALES EBIT % CHANGE Q2 2015 Q2 2014 % CHANGE IN ORIGINAL Q2 2015 Q2 2014 CURRENCY Delta USA 9,536 7,945 % from segment sales 123,599 117,339 5% 5% 7.7% 6.8% Global Upper Market 71,367 63,609 12% 14% 5,579 5,643 % from segment sales 7.8% 8.9% Schiesser (1,61
Slide 10: YTD Sales and EBIT by Segment
YTD SALES AND EBIT BY SEGMENT ($ MILLION) SALES EBIT % CHANGE YTD 2015 YTD 2014 % CHANGE IN ORIGINAL YTD 2015 YTD 2014 CURRENCY Delta USA 14,414 11,851 % from segment sales 235,271 209,254 12% 12% 6.1% 5.7% Global Upper Market 137,473 133,867 3% 5% 9,968 11,381 % from segment sales 7.3% 8.5% Schiess
Slide 11: Euro/USD Ex-Rate Impact on H1 2015 EBIT
EURO / USD EX-RATE IMPACT ON H1 2015 EBIT ASSUMING CONSTANT CURRENCY ($ MILLION) 2015 Q1 Q2 H1 2015 1.128 2015 1.107 2015 1.117 EURO/USD EX-RATES 2014 1.370 2014 1.372 2014 1.371 CHG. (18%) CHG. (19%) CHG. (19%) EX-RATE IMPACT ON EBIT (3.2) (0.7) (3.9) HEDGING GAIN (LOSS) 1.4 (0.7) 0.7 TOTAL IMPACT
Slide 12: Segmental Results on a Quarterly Basis
SEGMENTAL RESULTS ON A QUARTERLY BASIS EXCLUDING ONE TIME ITEMS ($ THOUSANDS) 2014 2015 TRAILING TWELVE Q2 Q3 Q4 Q1 Q2 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 7,945 117,339 7,841 116,680 7,254 123,023 4,878 111,673 9,536 123,599 29,509 474,975 % from sales
Slide 13: Capital Expenditures
CAPITAL EXPENDITURES INVESTING IN OUR FUTURE GROWTH ($ MILLION) OTHER INVESTMENTS EGYPT– COMPLETION OF NEW DYE HOUSE ACQUISITION (TOTAL INVESTMENT $3.5M) 2.0 18.0 CAPEX 12.1 MANUFACTURING 6.6 SCHIESSER (MAINLY IN STORES AND EXCLUDING MANUFACTURING) 1.6 ISRAELI MARKET (MAINLY IN RETAIL STORES) 2.1 NE
Slide 14: Diversified Portfolio
DIVERSIFIED PORTFOLIO % FROM SALES (FOR H1 2015) BUSINESS SEGMENTS DELTA USA GLOBAL UPPER MARKET SCHIESSER DELTA ISRAEL 46% 26% 17% 11% PRODUCT CATEGORIES LADIES MENS SOCKS KIDS 51% 20% 15% 14% GEOGRAPHIC AREA U.S.A EUROPE ISRAEL OTHER 59% 27% 11% 3% BRANDED / PRIVATE LABEL BRANDED PRIVATE LABEL 50%
Slide 15: Reiterating 2015 Guidance
REITERATING 2015 GUIDANCE EXCLUDING ONE TIME ITEMS BASED ON CURRENT MARKET CONDITIONS EX-RATES USED: EURO/USD 1.10; USD/NIS 3.80 ($ MILLION EXCEPT PER SHARE DATA) % INCREASE 2012 2013 2014 2015 2015 GUIDANCE IN ORIGINAL ACTUAL ACTUAL ACTUAL GUIDANCE COMPARED TO CURRENCY 2014 ACTUAL Sales 817.8 974.7
Slide 16: PJ Salvage Acquisition
PJ SALVAGE ACQUISITION CONTEMPORARY BRAND SERVING THE MILLENNIAL CUSTOMER 25-35 YEARS OLD SELLING SLEEPWEAR INTO LOUNGWEAR UPPER MARKET CUSTOMERS: NORDSTROM, BLOOMINGDALES AND 1,000 SPECIALITY STORES GROWTH POTENTIAL IN INTERNATIONAL SALES GROWTH POTENTIAL IN DAY WEAR AND INTIMATES MANAGEMENT WILL C
Slide 17: Results Overview
R E S U LT S O V E R V I E W | Q 2 2 0 1 5 17
Slide 18: 2015 Highlights
2015 HIGHLIGHTS CONTINUE TO GROW TOP LINE ORGANICALLY BY 7-9% IN ORIGINAL CURRENCY - LED BY ACTIVEWEAR CONTINUES IMPROVEMENT IN DELTA USA PERFORMANCE HEADWINDS FROM EX-RATES FLUCTUATIONS INTEGRATING NEW JV’S IN SOCKS AND SEAMLESS PRODUCTION YTD DIVIDEND $7.0 MILLION WE PUBLISHED OUR 4TH CORPORATE C
Slide 19: Growth Engines
GROWTH ENGINES WE OPENED OUR NEW SEAMLESS R&D CENTER AT NIKE HQ IN PORTLAND, OREGON SIGNED COLUMBIA MEN’S & LADIES UNDERWEAR LICENSE AGREEMENT TO BE LAUNCHED IN 2016 WE ARE ON TRACK TO OPEN OUR NEW VIETNAMESE FACTORY IN Q1 2016 STRENGTHENING OUR MANAGEMENT TO SUPPORT FUTURE GROWTH CONTINUE TO PURSUE
Slide 20: Thank You
THANK YOU
Delta Galil Industries — Q2 2015 Earnings Presentation on 6ix