Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q4 2018 Earnings Presentation
22 slides from Delta Galil Industries's earnings presentation, February 2019
Slide 1: Results Overview Q4 2018
RESULTS OVERVIEW Q4 2018 FEBRUARY 2019
Slide 2: Results Overview Q4 2018
RESULTS OVERVIEW Q4 2018 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 31לדצמבר .2018 בין היתר ,העובדות והנתונים ש
Slide 3: Record Year
RESULTS OVERVIEW Q4 2018 2018 SALES INCREASED BY 10% TO $1.5B RECORD YEAR EBIT* INCREASED BY 12% TO $98M EBITDA INCREASED BY 12% TO $130M NET INCOME* INCREASED BY 19% TO $60M EPS* INCREASED BY 20% TO $2.37 3 * EXCLUDING ONE TIME ITEMS
Slide 4: Highlights
RESULTS OVERVIEW Q4 2018 HIGHEST QUARTER EVER WITH SALES OF: $454M 2018 AND EBIT OF $42M HIGHLIGHTS OPERATING CASH FLOW $22M CASH ON HAND $74M NET FINANCIAL DEBT TO EBITDA* 2.4 DOWN FROM 2.7 POST ACQUISITION DIVIDENDS DECLARED $14M * Proforma based on last 4 quarters including Eminence 4
Slide 5: Highlights
RESULTS OVERVIEW Q4 2018 STRONG H2 FOR DGUSA Full year sales +5%, EBIT +9% 2018 Stronger H2 than H1 HIGHLIGHTS +14% sales growth, +35% EBIT in H2 Q4 IMPROVEMENT IN GLOBAL UPPER MARKET Q4 sales increase of 25% Successful launch of Perfect Comfort lounge bra at VS Full year EBIT challe
Slide 6: Highlights
RESULTS OVERVIEW Q4 2018 STRONG YEAR FOR DELTA ISRAEL Full year sales up 20% 2018 Full year EBIT +$7M, up 185% +16.8% growth in comparable sales and online channel HIGHLIGHTS CONTINUED IMPROVEMENTS IN DGPB Full year Sales increase of 2%, EBIT increase of 25% Realizing cost savings and
Slide 7: Driving Growth Year over Year: Sales
38% RESULTS OVERVIEW Q4 2018 SALES CAGR 11% DRIVING $1,498 $1,368 GROWTH $1,179 YEAR OVER $1,080 $1,032 $975 YEAR $818 SALES 2009-2018 (M) 18% $679 $620 $573 GROSS MARGIN before one time items 2009-2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 GROSS MARGIN 7
Slide 8: Driving Growth Year over Year: EBIT
RESULTS OVERVIEW Q4 2018 EBIT CAGR 22% DRIVING 98.0 GROWTH 87.4 83.2 YEAR OVER 75.5 7.44 69.7 YEAR 50.7 EBIT 2009-2018 ($M) Excluding one-time items 39.7 33.2 16.2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 8
Slide 9: One-Time Items
RESULTS OVERVIEW Q4 2018 ONE-TIME ITEMS )$ MILLION( Q4 AND FULL YEAR 2018 Q4 2018 RESTRUCTURING COST IN GUM 5.4 DEAL COST EMINENCE 4.3 ACQUISITION ADJUSTMENTS 3.8 7.6 EMINENCE (inventory step up) TOTAL IMPACT ON EBIT 3.8 17.3 TAX 1.3 5.1 TOTAL IMPACT ON NET PROFIT 2.5 12.2 The numbers are rounded 9
Slide 10: Q4 2018 Results
RESULTS OVERVIEW Q4 2018 ($ million) Q4 2018 Q4 2018 Q4 2017 % change vs last year RESULTS Sales Operating Profit 454.3 38.4 371.6 32.5 22% 18% % from sales 8.4% 8.7% Operating Profit 42.1 32.5 30% +22% Sales Sales in original currency +24% Excluding one-time items % from sales 9.3% 8.7% Sales exclu
Slide 11: YTD 2018 Results
RESULTS OVERVIEW Q4 2018 ($ million) YTD 2018 2018 2017 % change vs last year RESULTS Sales Operating Profit 1,498.4 80.7 1,368.1 84.6 10% (5%) % from sales 5.4% 6.2% Operating Profit 98.0 87.4 12% +10% Sales Sales in original currency +9% Excluding one-time items % from sales 6.5% 6.4% Sales exclud
Slide 12: Q4 Sales and EBIT by Segment
R E S U L T S O V E R V I E W Q 4 2 0 1 8 Q4 SALES AND EBIT BY SEGMENT % change in ($ thousands) SALES EBIT original Q4 2018 Q4 2017 % change currency Q4 2018 Q4 2017 Delta USA 139,019 117,174 19% 19% 12,600 10,016 % from segment sales 9.1% 8.5% Global Upper Market 85,909 68,975 25% 25% 5,595 5,465
Slide 13: YTD Sales and EBIT by Segment
R E S U L T S O V E R V I E W Q 4 2 0 1 8 YTD SALES AND EBIT BY SEGMENT % change in ($ thousands) SALES EBIT original 2018 2017 % change currency 2018 2017 Delta USA 469,321 445,321 5% 5% 32,988 30,300 % from segment sales 7.0% 6.8% Global Upper Market 308,365 290,556 6% 6% 21,023 29,881 % from segm
Slide 14: Sales Analysis by Geographic Area
R E S U L T S O V E R V I E W Q 4 2 0 1 8 SALES ANALYSIS BY GEOGRAPHIC AREA ($ thousands) Q4 YTD % change % change % of % of % % of % of % 2018 2017 in original 2018 2017 in original sales sales change currency sales sales change currency U.S.A 237,407 52% 197,245 53% 20% 20% 794,316 53% 760,480 56%
Slide 15: Segmental Results on a Quarterly Basis
R E S U L T S O V E R V I E W Q 4 2 0 1 8 SEGMENTAL RESULTS ON A QUARTERLY BASIS Excluding one time items 2017 2018 TRAILING TWELVE ($ thousands) Q4 Q1 Q2 Q3 Q4 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 10,016 117,174 4,966 102,688 6,586 118,911 8,836 108,704
Slide 16: Capital Expenditures
RESULTS OVERVIEW Q4 2018 CAPITAL EXPENDITURES 45.5 ($ million) Manufacturing .…….……………….. 22.9 34.0 Schiesser * ……….……………...…. 4.5 Delta Israel ….……………………....... 5.2 DGPB ** ….……………………….….. 7.7 Others ….………………………..….... 5.1 Total ……...………………………..….. 45.5 YTD YTD 2017 2018 * excluding manufacturing *
Slide 17: Balance Sheet
RESULTS OVERVIEW Q4 2018 BALANCE % FROM ($ million) % FROM SHEET Dec. 31 2018 Dec. 31 2017 TOTAL TOTAL Cash and cash equivalents 74.0 6% 138.9 14% Increased following Other current assets 561.2 47% 443.4 43% Eminence acquisition Total current assets 635.2 53% 582.3 57% Non current assets 570.7 47% 4
Slide 18: Financial Indicators
R E S U L T S O V E R V I E W Q 4 2 0 1 8 FINANCIAL INDICATORS 31.12.2018 31.12.2017 Current ratio 1.70 2.25 Quick ratio 0.87 1.21 Days of Sales Outstanding 44 36 Days Payable Outstanding 45 45 Inventory Days 99 107 Operating cash flow - Q4 ($ million) 56.5 55.0 Operating cash flow - Last 4 Quarters
Slide 19: Diversified Portfolio
Enables Delta to mitigate the market changes RESULTS OVERVIEW Q4 2018 % from sales (for Q4.2018) DIVERSIFIED 13% 10% 14% 4% OTHER PORTFOLIO SOCKS KIDS 28% ISRAEL PRIVATELABEL 27% GEOGRAPHIC 52% BRANDED/ MENS PRODUCT USA CAREGORIES AREA PRIVATE LABEL 50% 29% LADIES EUROPE 72% BRANDED 14% 28% GUM 31%
Slide 20: 2019 Guidance
R E S U L T S O V E R V I E W Q 4 2 0 1 8 2019 GUIDANCE Excluding one time items Based on current market conditions Ex-rates used: Euro/USD 1.14; USD/NIS 3.65 % INCREASE 2019 GUIDANCE 2018 ACTUAL 2019 GUIDANCE COMPARED TO 2018 ACTUAL Sales 1,498 1550 - 1590 3% - 6% EBIT 98 104 - 109 6% - 11% EBITDA
Slide 21: Future Growth
RESULTS OVERVIEW Q4 2018 DGPB will increase EBITDA to 15% and FUTURE Continued double digit sales growth annually GROWTH growth in direct to consumer channel Factories Expanding our full for 2019 distribution of Delta core products through Eminence acquisition Focusing on growing our sales in Asia a
Slide 22: Thank You
Delta Galil Industries — Q4 2018 Earnings Presentation on 6ix