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Investor Presentaiton

Non-GAAP Reconciliation Gross Profit Gross Margins Operating Income Operating Income Margins Net Earnings (Loss) Attributable to Shareholders Diluted Net Earnings (Loss) per Common Share ** Fiscal 2020 Non-GAAP GAAP Measure GAAP Measure Measure Reported COVID-Related Expenses (1) Adjusted * Reported 68,375 17.9% 14,700 83,075 85,152 3.9% 21.8% 19.7% DELTA EST. 1903 Fiscal 2019 Non-GAAP Measure Litigation Settlements (2) Adjusted* 85,152 19.7% (7,075) 25,200 18,125 15,895 1,529 17,424 (1.9%) 6.6% 4.8% 3.7% 0.4% 4.0% (10,577) ($1.53) 19,152 $2.73 8,575 $1.22 8,242 $1.17 1,492 9,734 $0.21 $1.38 * Adjusted results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments. ** Reported earnings per share are calculated based on diluted weighted average shares of 6,922 thousand shares and 7,064 shares for fiscal years 2020 and 2019, respectively. Adjustments and adjusted earnings per share are calculated based on diluted weighted average shares of 7,008 thousand shares and 7,064 thousand shares for fiscal years 2020 and 2019, respectively. (1) Approximately $25.2 million of expenses associated with the impacts from the COVID-19 pandemic and primarily related to the curtailment of manufacturing operations ($11.9 million), incremental costs to right size production to new forecasted demand ($2.6 million), increased accounts receivable and inventory reserves related to the heightened risks in the market as the U.S. continues its recovery ($6.6 million), and other expenses ($4.1 million). (2) Approximately $2.5 million of unfavorable litigation settlement due to the bankruptcy of a customer in the Delta Group segment in the first quarter fiscal year 2019, partially offset by approximately $1.3 million in other income as the result of a favorable litigation settlement in the Salt Life Group segment in the third quarter fiscal year 2019. Delta Apparel, Inc. 2021 Annual Meeting of Shareholders 23
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