NEW YORK — In the midst of a substantial restructuring that will split the company into three parts, Delta Woodside Industries reported an improved bottom line in the third quarter due to a gain related to the early retirement of debt.
For the three months ended April 1, the Greenville, S.C.-based company reported net income of $7 million, or 30 cents a diluted share. That figure includes a $5.6 million extraordinary gain for debt retirement. In the prior-year quarter, the company recorded a $2.7 million net loss.
Sales were $62.1 million, off 14.8 percent from $72.9 million. Results by business segment varied.
Delta Mills Inc. — the textile concern that will be Delta Woodside’s sole business after it completes the planned spin-offs of its Delta Apparel Co. and Duck Head Apparel Co. units — reported improved earnings due to a one-time gain. Delta Woodside’s overall results treat Delta Apparel and Duck Head as discontinued operations.
The segment reported net income of $4.4 million, including a $3.5 million extraordinary boost for the early retiring of debt. That compares with net income of $3.4 million a year ago. Income from continuing operations was $918,000, off 59.4 percent from $2.3 million.
Delta Mills reports net income figures because it has issued publicly traded debt. Net sales were $70.6 million, down 12.9 percent from $81 million.
Delta Apparel, which produces T-shirts and sweatshirts, reported operating profits of $2.9 million, compared with a $3.4 million operating loss in the prior year. Sales were $27.3 million, up 33.3 percent from $20.5 million.
Duck Head, a maker of branded apparel, narrowed its operating losses in the quarter to $394,000, compared with $4.1 million. Sales were $13.9 million, down 13.3 percent from $16.1 million.