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News   Press Releases

Superior Uniform Group, Inc. Reports Second Quarter Operating Results

SGC | July 27, 2017

  • Net Income up 31.2% on 1.5% Increase in Net Sales
  • 19th Consecutive Quarter with Sales Increase

SEMINOLE, Fla., July 27, 2017 (GLOBE NEWSWIRE) --  Superior Uniform Group, Inc. (NASDAQ:SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2017, net sales increased 1.5 percent to $65.6 million compared with 2016 second quarter net sales of $64.7 million.  Net income for the 2017 second quarter was $4.3 million, or $0.29 per diluted share, compared with $3.3 million, or $0.22 per diluted share, reported for the quarter ended June 30, 2016. 

Michael Benstock, Chief Executive Officer, commented, “We are very pleased to report a 31.2 percent increase in net income despite net sales only increasing 1.5 percent.  Net sales in our Uniforms and Related Products segment increased 1.7 percent in the second quarter as customer purchases continue to be somewhat stalled, awaiting more clarity in the political arena.  We are seeing increases in our sales activity with larger volumes of opportunities although they are moving through the pipeline at a slower pace.  The Office Gurus, our Remote Staffing Solutions segment, delivered an excellent second quarter reporting a 28.8 percent increase in net sales.  We are seeing a significant increase in activity in this segment as we continue to broaden our footprint in this underserved market niche.  BAMKO, our Promotional Products segment, reported a decrease in net sales of 10.0 percent.  As we have stated in the past, BAMKO’s sales will fluctuate more widely on a quarter to quarter basis, given the nature of their sales cycle, in contrast with our other segments.  We are very confident in the BAMKO team, and we expect sales performance to return to strong double-digit growth in the third quarter. We are actively pursuing acquisition opportunities in promotional products and are working through a solid pipeline of candidates.”

CONFERENCE CALL

Superior Uniform Group will hold a conference call on Thursday, July 27, 2017 at 2:00 p.m. Eastern Time to discuss the Company’s results. Interested individuals may join the teleconference by dialing (844) 861-5505 for U.S. dialers and (412) 317-6586 for International dialers. The Canadian Toll Free number is (866) 605-3852. Please ask to be joined into the Superior Uniform Group call. The live webcast and archived replay can be accessed in the investor information section of the Company’s website at www.superioruniformgroup.com.

A telephone replay of the teleconference will be available one hour after the end of the call through 2:00 p.m. Eastern Time on August 3, 2017. To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations.  Canadian dialers can access the replay at (855) 669-9658.  Please reference conference number 10110251 for all replay access.

About Superior Uniform Group, Inc.

Superior Uniform Group® (NASDAQ:SGC), established in 1920, is one of America’s foremost providers of fine uniforms and image apparel.  Headquartered in Seminole, Fla., Superior Uniform Group manages award-winning uniform apparel programs for major corporations nationwide.  Leaders in innovative uniform program design, global manufacturing, and state-of-the-art distribution, Superior Uniform Group helps companies achieve a more professional appearance and better communicate their brands – particularly those in healthcare, private security, retail, hospitality, transportation and food service industries.

The company’s commitment to service, technology, quality and value-added benefits, as well as its financial strength and resources, support customers’ diverse needs while embracing a “Customer 1st, Every Time!” philosophy and culture.  Superior Uniform Group sells its wide range of products through its signature brands Superior I.D.™, Fashion Seal Healthcare® and HPI Direct®.  Superior Uniform Group is also the parent company for The Office Gurus®, which provides call center and BPO solutions to a variety of customers, and BAMKO®, its innovative promotional products company that provides custom branding solutions to some of the nation’s strongest brands.

For more information, call (800) 727-8643 or visit www.SuperiorUniformGroup.com.

Statements contained in this press release which are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  All forward-looking statements are subject to risks and uncertainties, including without limitation, those identified in the Company’s SEC filings, which could cause actual results to differ from those projected.

Comparative figures are as follows:

 

   SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES  
  CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  
                         
  THREE MONTHS ENDED JUNE 30,  
  (Unaudited)  
                         
                  2017   2016  
                         
  Net sales           $ 65,604,000   $ 64,660,000  
                         
  Costs and expenses:                
    Cost of goods sold         42,230,000   42,897,000  
    Selling and administrative expenses       17,478,000   16,956,000  
    Interest expense         195,000   192,000  
                  59,903,000   60,045,000  
                         
  Income before taxes on income         5,701,000   4,615,000  
  Income tax expense         1,360,000   1,307,000  
                         
  Net income           $ 4,341,000   $ 3,308,000  
                         
  Weighted average number of shares outstanding during the period        
               (Basic)     14,501,399     14,120,617  
              (Diluted)     15,040,431     14,957,469  
  Per Share Data:                  
  Basic                    
    Net income       $   0.30 $   0.23  
  Diluted                    
    Net income       $   0.29 $   0.22  
                         
                         
  Cash dividends per common share       $   0.0875 $   0.0825  
                         

 

   SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES  
  CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  
                         
  SIX MONTHS ENDED JUNE 30,  
  (Unaudited)  
                         
                  2017   2016  
                         
  Net sales           $ 126,591,000   $ 122,628,000  
                         
  Costs and expenses:                
    Cost of goods sold         81,003,000   80,844,000  
    Selling and administrative expenses       35,121,000   33,419,000  
    Interest expense         379,000   340,000  
                  116,503,000   114,603,000  
                         
  Gain on sale of property, plant and equipment       1,018,000     -  
                         
  Income before taxes on income         11,106,000   8,025,000  
  Income tax expense         2,930,000   2,275,000  
                         
  Net income           $ 8,176,000   $ 5,750,000  
                         
  Weighted average number of shares outstanding during the period        
               (Basic)     14,426,060     14,023,840  
              (Diluted)     14,985,063     14,813,064  
  Per Share Data:                  
  Basic                    
    Net income       $   0.57 $   0.41  
  Diluted                    
    Net income       $   0.55 $   0.39  
                         
                         
  Cash dividends per common share       $ 0.175 $ 0.165  
                         

 

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES  
 CONSOLIDATED BALANCE SHEETS  
                     
ASSETS  
                     
              June 30,      
              2017     December 31,  
              (Unaudited)   2016    
CURRENT ASSETS:             
  Cash and cash equivalents       $ 7,583,000     $ 3,649,000    
  Accounts receivable, less allowance for doubtful accounts          
  of  $1,755,000 and $1,276,000, respectively     40,620,000     41,823,000    
   Accounts receivable - other       2,412,000       3,085,000    
  Inventories*         67,596,000       69,240,000    
  Prepaid expenses and other current assets       8,567,000       7,214,000    
          TOTAL CURRENT ASSETS       126,778,000     125,011,000    
                     
PROPERTY, PLANT AND EQUIPMENT, NET     26,173,000       27,533,000    
OTHER INTANGIBLE ASSETS, NET         22,097,000       23,238,000    
GOODWILL             11,265,000       11,269,000    
DEFERRED INCOME TAXES         7,090,000       6,800,000    
OTHER ASSETS         4,780,000       2,997,000    
              $ 198,183,000     $ 196,848,000    
                     
LIABILITIES AND SHAREHOLDERS' EQUITY  
                     
CURRENT LIABILITIES:                
  Accounts payable         $ 13,988,000   $ 13,507,000    
  Other current liabilities       8,247,000       10,716,000    
  Current portion of long-term debt       6,000,000       5,893,000    
  Current portion of acquisition-related contigent liabilities   3,135,000       1,788,000    
          TOTAL CURRENT LIABILITIES       31,370,000       31,904,000    
                     
LONG-TERM DEBT         34,454,000     36,227,000    
LONG-TERM PENSION LIABILITY       7,780,000     9,467,000    
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITY   4,173,000     7,238,000    
OTHER LONG-TERM LIABILITIES       2,292,000     1,462,000    
COMMITMENTS AND CONTINGENCIES (NOTE 5)          
SHAREHOLDERS' EQUITY:              
  Preferred stock, $.001 par value - authorized 300,000 shares (none issued)     -       -    
  Common stock, $.001 par value - authorized 50,000,000 shares, issued and          
    outstanding - 14,768,272 and  14,513,207, respectively.   15,000     15,000    
  Additional paid-in capital       44,701,000     42,416,000    
  Retained earnings          79,239,000     74,283,000    
  Accumulated other comprehensive income (loss), net of tax:          
    Pensions           (5,762,000 )     (6,258,000 )  
    Cash flow hedges         (159,000 )     21,000    
    Foreign currency translation adjustment     80,000       73,000    
TOTAL SHAREHOLDERS' EQUITY       118,114,000     110,550,000    
              $ 198,183,000     $ 196,848,000    
                     

 

  SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF CASH FLOWS
   
  SIX MONTHS ENDED JUNE 30,
  (Unaudited)
                   
                 
              2017     2016  
                   
CASH FLOWS FROM OPERATING ACTIVITIES        
  Net income       $ 8,176,000     $ 5,750,000  
   Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation and amortization   2,715,000     2,333,000  
    Provision for bad debts - accounts receivable   575,000     180,000  
    Share-based compensation expense   1,108,000     1,097,000  
    Deferred income tax benefit     (509,000 )   (69,000 )
    Gain on sale of property, plant and equipment   (1,018,000 )   -  
    Accretion of acquisition-related contingent liability   81,000     81,000  
                   
    Changes in assets and liabilities, net of acquisition of business:        
      Accounts receivable - trade   552,000     (2,181,000 )
      Accounts receivable - other   674,000     1,125,000  
      Inventories     1,632,000     653,000  
      Prepaid expenses and other current assets   (1,353,000 )   (1,648,000 )
      Other assets     (1,784,000 )   (353,000 )
      Accounts payable     585,000     2,238,000  
      Other current liabilities     (2,808,000 )   (1,464,000 )
      Long-term pension liability   (894,000 )   259,000  
      Other long-term liabilities   829,000     40,000  
    Net cash provided by operating activities    8,561,000     8,041,000  
                   
  CASH FLOWS FROM INVESTING ACTIVITIES        
    Additions to property, plant and equipment    (2,004,000 )   (5,527,000 )
    Proceeds from disposals of property, plant and equipment   2,810,000     -  
    Purchase of business net of acquired cash   -     (15,252,000 )
    Net cash provided by (used in) investing activities   806,000     (20,779,000 )
               
  CASH FLOWS FROM FINANCING ACTIVITIES        
    Proceeds from long-term debt   72,422,000     90,514,000  
    Repayment of long-term debt   (74,088,000 )   (71,138,000 )
    Payment of cash dividends     (2,490,000 )   (2,270,000 )
    Payment of contingent liability   (1,800,000 )   (1,800,000 )
    Proceeds received on exercise of stock options   798,000     781,000  
    Tax benefit from vesting of acquisition related restricted stock   70,000     535,000  
    Tax withholding on exercise of stock rights   (421,000 )   (267,000 )
                   
  Net cash (used in) provided by financing activities   (5,509,000 )   16,355,000  
                   
  Effect of currency exchange rates on cash   76,000     82,000  
                   
  Net increase in cash and cash equivalents   3,934,000     3,699,000  
                 
  Cash and cash equivalents balance, beginning of year   3,649,000     1,036,000  
                   
  Cash and cash equivalents balance, end of period   $ 7,583,000     $ 4,735,000  
                   

  

Contact: Andrew D. Demott, Jr. COO, CFO & Treasurer (727) 803-7135 OR Hala Elsherbini Halliburton Investor Relations (972) 458-8000

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