Delta Apparel Investor Presentation 2022-03-15-22.pdf

An investor presentation prepared by Delta Apparel that focuses on future expansion of manufacturing capacity and future sales growth.

1. DELTA APPAREL, INC.
INVESTOR PRESENTATION
MARCH 2022

2. Forward Looking Statements
•Thispresentation,relatedremarks,andresponsestoquestionsmaycontain“forward-lookingstatements”withinthe
meaningofthePrivateSecuritiesLitigationReformActof1995. Forward-lookingstatementsreflecttheCompany's
currentexpectationsregardingfutureeventsandinvolverisksanduncertainties.Althoughwebelievethatour
expectationsarebasedonreasonableassumptions,actualresultscoulddiffermateriallyfromthoseprojectedinthis
presentation.Youshouldnotundulyrelyonforward-looking statements.
•PleaserefertothewrittenmaterialsmadeavailabletoyouinconnectionwiththispresentationaswellastheCompany’s
mostrecentForm10-K andotherSECfilingsforamoredetaileddiscussionofsomeoftherisksthatcouldcauseactual
resultstodiffermateriallyfromthoseindicatedintheforward-looking statements.
•Finally,pleasenotethatanyforward-looking statementsaremadeonlyasofthedateofthispresentationandthe
Companyexpresslydisclaimsanyobligationtoupdateorrevisethesestatementsafterthepresentationtoreflect
additionaleventsorcircumstancesortheoccurrenceofunanticipatedevents,exceptasmayberequiredbylaw.
2Delta Apparel, Inc. Investor Presentation -March 2022

3. Delta Apparel, Inc.
3
2000 | | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016| 2017 | 2018 | 2019 | 2020 | 2021
PublicCompany
June2000
ArtGun, LLC
Acquired
December2009
.biz
SaltLife
ExclusiveLicense
December2010
SaltLife
Acquired
August2013
DTG2Go
Acquired
March2018
Launchof
SaltLifeBeer
June2018
SSI
Acquired
October2018
Autoscale
Acquired
June2021
SaltLifeBeer
ToLicenseMode
2021
CoastApparel
Acquired
August2016
Soffeintegrated
intoActivewear
June2021
Coast
Divestiture
September2021
Delta Apparel, Inc. Investor Presentation -March 2022

4. DLA Strong Recovery
94% 94%
60%
108%
93%
106%
100%
106%
109%
2020
Q1
2020
Q2
2020
Q3
2020
Q4
2021
Q1
2021
Q2
2021
Q3
2021
Q4
2022
Q1
Delta Apparel, Inc. Investor Presentation -March 2022 4
% of 2019 Sales

5. P
RODUCTS
C
HANNELS
•Retailers
•Wholesalers
•eCommerce
•Salt Life
•Delta sourced
•Decals
•Sourced fashion
•Sourced accessories
•Licensed restaurants
•Licensed beer
•eRetailers
•eCommerce platforms
•Brands
•Retailers
•IP holders
•Delta
•Delta Platinum
•Soffe
•Sourced brands
•Other brands
•Brick and mortar
retailers
•eCommerce
•Delta
•Delta Platinum
•Soffe
•Retail brands
Retail Direct
•Global & regional brands
•US Military
•Custom garments
•Supply chain partner
Brand Direct
•Retail license
•Regional screenprint
•ASI / Promotional
•eRetailers
•Team dealers
•Delta
•Delta Platinum
•Soffe
•Sourced brands
Delta Direct
Vertically-Integrated Supply Chain
5Delta Apparel, Inc. Investor Presentation -March 2022

6. Manufacturing Expansion Strategies
Honduras
•Increase textiles by 150k lbs/week (~10%)
-Expand open-width fabrics
-Fleece expansion
-Increase sew capacity
El Salvador
•Grow sew capacity
•Expand screenprint
Mexico
•Cut and Sew: Expansion underway
•Screenprint: Recent growth to continue
Delta Apparel, Inc. Investor Presentation -March 2022 6
HONDURAS
ELSALVADOR
CAMPECHE

7. HOWDOWEGROWFROMHERE?

8. Current Manufacturing Expansion
1,121
1,167
1,020
1,077
1,133 1,141 1,129 1,150
1,300
1,600
1,800
FY20
OCT
FY20
FEB
FY20
SEPT
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY22 FY23 FY24 FUTURE
Weekly Textile Lbs
Delta Apparel, Inc. Investor Presentation -March 2022 8
TENTERFRAME JUMBOHIGHSPEEDBATCHERJUMBOKNITTINGFABCONSTEAMDRYER
EXPANSIONHISTORICAL

9. 289
301
341
411
FY22 FY23 FY24FUTURE
Weekly Sew Dozens
1,300 1,300
1,600
1,800
FY22 FY23 FY24FUTURE
Weekly Textile Lbs
Current Manufacturing Expansion
65
83
98
122
FY22 FY23 FY24FUTURE
Screen Print
Delta Apparel, Inc. Investor Presentation -March 2022 9
Addition of 18 color machine is
already in serviceAddition of floor space in TLP
already in service yielding 10%
additional capacityAddition of 2nd tenter frame for
open-width fabric, upgrade of
knitting equipment for jumbo rolls,
and addition of tubular dryer

10. DTG2Go
Developed and Implemented Digital-First Strategy
•Technology systems
-Cutting edge order processing API integration with any potential partner
•Research and Development
-Technology and equipment adoption
-Quality control systems specific to client requirement
•Quality systems and R&D implementation
•New beta test sites
•New equipment adoption and implementation
-Currently installing in 4 DTC print locations
•Onboard new customers adopting this technology
•Quality and aesthetics best in class
Delta Apparel, Inc. Investor Presentation -March 2022 10

11. On-Demand Solutions for Brands and Retailers
Delta Apparel, Inc. Investor Presentation -March 2022 11
On Demand Economy:
•Keeping up with the ever-changing consumer expectations
•Negative impact of stock outages
Markdowns and excess inventory:
•Significant lost margins from liquidating excess
inventory
Merchandise limitations:
•Balance between selection and excess inventory; working capital
requirements
•Product consistency across omni-channel sales opportunities
•Integration across eCommerce and retail doors for product returns
and replenishments
Consumer selection:
•Limitless selections for consumers, including personalization
options
•Never out of stock
Broad supply chain:
•Access to DTG2Go’s network of 9 fulfillment facilities; reduces
risk in supply chain
Seamless fulfillment:
•Integrated “On Demand DC” avoids split shipments, reducing freight
costs, and improving consumer experience
•Retail packaging, including UPCs allow consumers a seamless
eCommerce to retail door experience
•“Digital-first” model offers indistinguishable quality across
production methods: digital, hybrid, screenprint
Brick and Mortar Challenges DTG2Go’s “Digital First” Retail Solution

13. Strong Recovery
95% 94%
53%
114%
98%
109%
137%
121%
124%
2020
Q1
2020
Q2
2020
Q3
2020
Q4
2021
Q1
2021
Q2
2021
Q3
2021
Q4
2022
Q1
Delta Apparel, Inc. Investor Presentation -March 2022 13
% of 2019 Sales

14. Salt Life Branded Retail
Delta Apparel, Inc. Investor Presentation -March 2022 14
-15
-5

15. Salt Life Branded Retail
Delta Apparel, Inc. Investor Presentation -March 2022 15
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
FY17 FY18 FY19 FY20 FY21
Store Sales
Atlanta GA Sa vanna h GA Columbus GA Myrtle Beach Sa n Cle mente CA
Orl ando FL Huntington Beach CA Ja ck sonvill e FL Charleston SC Pa lm B ea ch F L
Key West F L Day tona Beach FL Tampa FL Des tin FL Este ro FL

16. Salt Life Branded Retail
Delta Apparel, Inc. Investor Presentation -March 2022 16
Salt Life currently has 15 branded retail doors spanning Florida,
Georgia, South Carolina, Texas and California. What began as a
marketing initiative has proven to be a compelling growth
opportunity for the Salt Life brand.
~ 2,000
~ $450k
~$500
~$100k
18%
6-8
FINANCIALOVERVIEW RETAILSPACE
RETAILDOOROVERVIEW
$400k
$825k
$1,600k
$85k
$550k
Marketin g D oors (4)Average Doors (6) To p D oors (2 )
SALE SEBI T
Square feet retail space
Build out cost
Average sales / sq. ft.
Average inventory per store
FY22 Q1 Same store growth
Expected new doors per year

17. 14,98378850
24,542450187
32,62479538
43,88155951
52,34256246
62,27531560
72,19733949
86,08032927
91,73631388
102,31151821
Salt Life Consumer Engagement
•Note: Based on summary of 65 leading lifestyle brands•(a) Numerator represents followers for Instagram, Twitter, and Facebook; Numerator represents views for YouTube
Delta Apparel, Inc. Investor Presentation -March 2022 17
Social Media Activity#1 Ranked Website Engagement#8Ranked Social Media Engagement#3
Tweets Per
Year
Posts Per
Year
Videos Per
Year
128411142
23379106
39232988
4521279
581579
651647
7132538
850599
991458
1052540
Followers / Views per Revenue Dollar
15.736%10.3
25.636%10.4
38.740%11.1
46.539%10.5
55.737%9.1
66.338%9.2
75.936%8.2
87.641%9.0
95.037%8.3
107.238%7.1
Pages per
Visit
Bounce
Rate
Visit
Duration
(min.)

18. eCommerce Platform Upgrades
Delta Apparel, Inc. Investor Presentation -March 2022 18

19. DLA Sales Growth
$90
$100
$112
$93
$102
$103
$119
$106
$96
$97
$72
$117
$95
$109
$119
$114
$111
Qtr 1 Qtr 2 Qtr 3 Qtr 4
FY18 FY19 FY20 FY21 FY22
(in millions)
Delta Apparel, Inc. Investor Presentation -March 2022 19

20. DLA Sales Growth
20
$385.1
$395.4
$431.7
$381.0
$436.8
FY17 FY18FY19 FY20FY21
(in millions)
Sales
$16.2
$17.4
$15.9
($7.1)
$32.7
FY17 FY18FY19 FY20FY21
EBIT EPS
$1.33
$0.18
$1.17
($1.53)
$2.86
FY17 FY18FY19 FY20FY21
(in millions)
Delta Apparel, Inc. Investor Presentation -March 2022
(in millions)

21. DLA Financial Highlights
Balance Sheet December
FY22
AR, Net 65,243
DSO 49
Inventory, Net 183,058
Ave Inv Turns 2.2
Total Net Debt, incl Seller Note & Cap Lease 145,940
Equity 164,981
Debt/Capital 47%
Debt/TTM EBITDA 2.9x
YTD Capital Spending 1,822
YTD Stock Repurchases 2,154
Capital Expenditures FY22 Q1 Anticipated Total
Delta Apparel $1.2m $14m $15.2m
Salt Life $0.6m $4m $4.6m
Total $1.8m $18m $19.8m
•Textile expansion
•Sewing expansion
•Screen print
•Digital print
•Innovation/R&D and IT infrastructure
•Salt Life retail expansion
Delta Apparel, Inc. Investor Presentation -March 2022 21

22. -100.0%
100.0%
300.0%
500.0%
700.0%
900.0%
1,100.0%
1,300.0%
1,500.0%
1,700.0%
DLA S&P 500
DLA Stock Comparison
22
From July 3, 2000 to February 25, 2022
DLA
$2.19
Jul 2000
DLA
$30.80
Feb 2022
+198%
+1,306%
Delta Apparel, Inc. Investor Presentation -March 2022

23. DELTA APPAREL, INC.
Q&A