- Net Sales Increase 19.8 Percent
- 22nd Consecutive Quarter with Sales Increase
SEMINOLE, Fla., May 02, 2018 (GLOBE NEWSWIRE) -- Superior Uniform Group, Inc. (NASDAQ:SGC), manufacturer of
uniforms, career apparel and accessories, today announced that for the first quarter ended March 31, 2018, net sales increased 19.8
percent to $73.1 million compared with 2017 first quarter net sales of $61.0 million. Net income for the 2018 first quarter
was $2.5 million, or $0.16 per diluted share, compared with $3.8 million, or $0.26 per diluted share, reported for the quarter
ended March 31, 2017. Net income for the first quarter of 2017 included a pre-tax gain of $1.0 million related to the
sale of the Company’s former call center building in San Salvador. This gain resulted in an increase in earnings per share
(diluted) in the first quarter of 2017 of approximately $0.05.
Michael Benstock, Chief Executive Officer, commented, “Our results for the first quarter were mixed across our
various segments. Uniform segment net sales were down slightly at $48.1 million versus $48.3 million. While
organic growth in our uniform segment lagged in the first quarter, our results demonstrate our diversified approach and our ability
to maintain discipline while navigating a competitive market environment.
“Promotional Products net sales were up 109 percent with most of this increase coming from our two acquisitions
completed in the latter part of 2017. We’re making solid progress on integration efforts, leveraging our shared services model as
well as capitalizing on cross-selling opportunities across our business. The Promotional Products segment reported a pre-tax loss
of approximately $0.6 million for the quarter in comparison to pre-tax income of $0.4 million in the first quarter of 2017.
This loss is attributed to the December acquisition of Tangerine and the nature of their business. Tangerine generally
reports lower sales in the first and fourth quarter each year with a more significant portion of their annual sales volume coming
in the second and third quarters. We are still in the early stages of integrating this recent acquisition, and we still
expect the results from this acquisition to be accretive for the full year in 2018.
“The Office Gurus, our Remote Staffing segment, had a tremendous quarter with net sales to outside customers
increasing by $2.6 million or 68.8 percent as they continue to land new customers and to grow with existing customers.”
CONFERENCE CALL
Superior Uniform Group will hold a conference call on Wednesday, May 2, 2018 at 10:00 a.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 also 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 May 9, 2018. 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
10119178 for all replay access.
About Superior Uniform Group, Inc.
Superior Uniform Group® (NASDAQ:SGC), established in 1920, is a provider of
a wide range of award winning products and services. It provides customized support for each of its divisions through its shared
services model.
Fashion Seal Healthcare®, Superior I.D™, and HPI Direct® are signature uniform brands of Superior Uniform
Group®. Each is one of America’s foremost providers of fine uniforms and image apparel in its markets. They
are leaders in innovative uniform program design, global manufacturing, and state-of-the-art distribution. These brands
help their customers achieve a more professional appearance and better communicate their own brands. More
than 5 million Americans are smartly outfitted with a Superior uniform each workday.
BAMKO® is one of the nation’s largest full-service promotional
products companies. It provides unique custom branding, design, sourcing, and marketing solutions to some of the
world’s most successful brands.
The Office Gurus® is a global provider of custom call and contact center
support. As a true strategic partner, The Office Gurus implements customized solutions for its customers in order
to accelerate their growth and improve their customers’ service experiences.
Superior’s commitment to service, technology, quality and value-added benefits, as well as its financial
strength and resources, provides unparalleled support for its customers’ diverse needs while embracing a "Customer 1st, Every
Time!" philosophy and culture in all of its business segments.
Forward-Looking Statements
Statements contained in this press release, which are not historical facts, such as statements with respect to the results from
Superior’s recent acquisitions and its expected growth, 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.
For more information, call (800) 727-8643 or visit www.SuperiorUniformGroup.com.
Contact:
Andrew D. Demott, Jr.
COO, CFO & Treasurer
(727) 803-7135
OR
Hala Elsherbini, Halliburton Investor Relations
(972) 458-8000
Comparative figures are as follows:
| |
|
| SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES |
|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
| |
|
|
|
|
|
|
|
|
| THREE MONTHS ENDED MARCH 31, |
|
| (Unaudited) |
|
| (In thousands, except shares and per share data) |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
2018 |
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
| Net sales |
|
|
$ |
73,087 |
|
$ |
60,987 |
|
| |
|
|
|
|
|
|
|
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
|
48,212 |
|
|
38,773 |
|
| Selling and administrative expenses |
|
|
|
21,182 |
|
|
17,429 |
|
| Other periodic pension costs |
|
|
|
96 |
|
|
214 |
|
| Interest expense |
|
|
|
277 |
|
|
184 |
|
| |
|
|
|
69,767 |
|
|
56,600 |
|
| |
|
|
|
|
|
|
|
|
| Gain on sale of property, plant and equipment |
|
|
|
- |
|
|
1,018 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Income before taxes on income |
|
|
|
3,320 |
|
|
5,405 |
|
| Income tax expense |
|
|
|
870 |
|
|
1,570 |
|
| |
|
|
|
|
|
|
|
|
| Net income |
|
|
$ |
2,450 |
|
$ |
3,835 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average number of shares outstanding during the period |
|
|
|
|
|
| (Basic) |
|
|
|
14,821,659 |
|
|
14,350,721 |
|
| (Diluted) |
|
|
|
15,457,629 |
|
|
14,929,695 |
|
| Per Share Data: |
|
|
|
|
|
|
|
|
| Basic |
|
|
|
|
|
|
|
|
| Net income |
|
|
$ |
0.17 |
|
$ |
0.27 |
|
| Diluted |
|
|
|
|
|
|
|
|
| Net income |
|
|
$ |
0.16 |
|
$ |
0.26 |
|
| |
|
|
|
|
|
|
|
|
| Cash dividends per common share |
|
|
$ |
0.0950 |
|
$ |
0.0875 |
|
| |
|
|
|
|
|
|
|
|
| |
|
| SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES |
|
| CONSOLIDATED BALANCE SHEETS |
|
| (In thousands, except share and par value data) |
|
| |
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
March 31, |
|
|
|
| |
|
|
|
2018 |
|
December 31, |
|
| |
|
|
|
(Unaudited) |
|
2017 |
|
| CURRENT ASSETS: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
$ |
10,442 |
|
$ |
8,130 |
|
|
| Accounts receivable, less allowance for doubtful accounts
of $1,510 and $1,382, respectively |
|
|
|
48,275 |
|
|
50,569 |
|
|
| Accounts receivable - other |
|
|
|
2,107 |
|
|
1,848 |
|
|
| Inventories |
|
|
|
36,380 |
|
|
64,979 |
|
|
| Contract assets |
|
|
|
47,098 |
|
|
- |
|
|
| Prepaid expenses and other current assets |
|
|
10,005 |
|
|
11,011 |
|
|
| TOTAL CURRENT ASSETS |
|
|
|
154,307 |
|
|
136,537 |
|
|
| |
|
|
|
|
|
|
|
| PROPERTY, PLANT AND EQUIPMENT, NET |
|
|
27,033 |
|
|
26,844 |
|
|
| OTHER INTANGIBLE ASSETS, NET |
|
|
|
28,302 |
|
|
29,061 |
|
|
| GOODWILL |
|
|
|
16,042 |
|
|
16,032 |
|
|
| DEFERRED INCOME TAXES |
|
|
|
215 |
|
|
2,900 |
|
|
| OTHER ASSETS |
|
|
|
9,180 |
|
|
7,564 |
|
|
| |
|
|
$ |
235,079 |
|
$ |
218,938 |
|
|
| |
|
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
|
|
|
| Accounts payable |
|
|
$ |
19,263 |
|
$ |
19,752 |
|
|
| Other current liabilities |
|
|
|
9,375 |
|
|
12,409 |
|
|
| Current portion of long-term debt |
|
|
|
6,000 |
|
|
6,000 |
|
|
| Current portion of acquisition-related contingent
liabilities |
|
1,080 |
|
|
3,061 |
|
|
| TOTAL CURRENT LIABILITIES |
|
|
|
35,718 |
|
|
41,222 |
|
|
| |
|
|
|
|
|
|
|
| LONG-TERM DEBT |
|
|
|
39,949 |
|
|
32,933 |
|
|
| LONG-TERM PENSION LIABILITY |
|
|
|
8,133 |
|
|
8,319 |
|
|
| LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITIES |
|
7,469 |
|
|
7,283 |
|
|
| OTHER LONG-TERM LIABILITIES |
|
|
|
4,744 |
|
|
4,213 |
|
|
| 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 - 15,143,328 and 15,081,947, respectively. |
|
|
15 |
|
|
15 |
|
|
| Additional paid-in capital |
|
|
|
50,626 |
|
|
49,103 |
|
|
| Retained earnings |
|
|
|
95,296 |
|
|
83,129 |
|
|
| Accumulated other comprehensive income (loss), net of
tax: |
|
|
|
|
|
| Pensions |
|
|
|
(7,066 |
) |
|
(7,282 |
) |
|
| Cash flow hedges |
|
|
|
50 |
|
|
(90 |
) |
|
| Foreign currency translation adjustment |
|
|
145 |
|
|
93 |
|
|
| TOTAL SHAREHOLDERS' EQUITY |
|
|
|
139,066 |
|
|
124,968 |
|
|
| |
|
|
$ |
235,079 |
|
$ |
218,938 |
|
|
| |
|
|
|
|
|
|
|
| |
| SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| THREE MONTHS ENDED MARCH 31, |
| (Unaudited) |
| (In thousands) |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
2018 |
|
2017 |
| |
|
|
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
| Net income |
|
|
$ |
2,450 |
|
$ |
3,835 |
|
| |
|
|
|
|
| Adjustments to reconcile net income to net cash (used in)
provided by operating activities: |
|
|
|
|
| Depreciation and amortization |
|
1,626 |
|
|
1,358 |
|
| Provision for bad debts - accounts receivable |
|
157 |
|
|
146 |
|
| Share-based compensation expense |
|
1,052 |
|
|
842 |
|
| Deferred income tax provision (benefit) |
|
162 |
|
|
(320 |
) |
| Gain on sale of property, plant and equipment |
|
- |
|
|
(1,018 |
) |
| Change in fair value of acquisition-related contingent
liabilities |
|
209 |
|
|
44 |
|
| |
|
|
|
|
|
|
| Changes in assets and liabilities: |
|
|
|
|
| Accounts receivable - trade |
|
2,147 |
|
|
7,164 |
|
| Accounts receivable - other |
|
(259 |
) |
|
689 |
|
| Contract assets |
|
|
(3,780 |
) |
|
- |
|
| Inventories |
|
|
3,742 |
|
|
(1,078 |
) |
| Prepaid expenses and other current assets |
|
27 |
|
|
(1,892 |
) |
| Other assets |
|
|
(1,564 |
) |
|
(1,522 |
) |
| Accounts payable and other current liabilities |
|
(7,132 |
) |
|
(1,016 |
) |
| Long-term pension liability |
|
97 |
|
|
(920 |
) |
| Other long-term liabilities |
|
450 |
|
|
696 |
|
| Net cash (used in) provided by operating activities |
|
(616 |
) |
|
7,008 |
|
| |
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
| Additions to property, plant and equipment |
|
(1,055 |
) |
|
(930 |
) |
| Proceeds from disposals of property, plant and
equipment |
|
- |
|
|
2,808 |
|
| Net cash (used in) provided by investing
activities |
|
(1,055 |
) |
|
1,878 |
|
| |
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
| Proceeds from long-term debt |
|
31,657 |
|
|
71,209 |
|
| Repayment of long-term debt |
|
(24,642 |
) |
|
(71,367 |
) |
| Payment of cash dividends |
|
|
(1,402 |
) |
|
(1,231 |
) |
| Payment of acquisition-related contingent liability |
|
(2,000 |
) |
|
(1,800 |
) |
| Proceeds received on exercise of stock options |
|
257 |
|
|
105 |
|
| Tax benefit from vesting of acquisition-related
restricted stock |
|
105 |
|
|
70 |
|
| Tax withholding on exercise of stock rights |
|
(17 |
) |
|
(201 |
) |
| |
|
|
|
|
|
|
| Net cash provided by (used in) financing activities |
|
3,958 |
|
|
(3,215 |
) |
| |
|
|
|
|
|
|
| Effect of currency exchange rates on cash |
|
25 |
|
|
52 |
|
| |
|
|
|
|
|
|
| Net increase in cash and cash equivalents |
|
2,312 |
|
|
5,723 |
|
| |
|
|
|
|
|
|
| Cash and cash equivalents balance, beginning of
year |
|
8,130 |
|
|
3,649 |
|
| |
|
|
|
|
|
|
| Cash and cash equivalents balance, end of period |
$ |
10,442 |
|
$ |
9,372 |
|
| |
|
|
|
|
|
|
