SGC Superior Group of Companies Inc

 

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UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, DC   20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)       February 26, 2015

 

Superior Uniform Group, Inc.

 

(Exact name of registrant as specified in its charter)

 

Florida	001-05869	11-1385670
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
10055 Seminole Blvd., Seminole, Florida (Address of principal executive offices)		33772 (Zip Code)

 

Registrant's telephone number including area code: (727) 397-9611

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230 .425)
	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

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Item 2.02. Results of Operations and Financial Condition

 

The following information is being furnished under Item 2.02 of Form 8-K: Press release by Superior Uniform Group, Inc. announcing its results of operations for the year ended December 31, 2014. A copy of this press release is attached as Exhibit 99.1 to this Form 8-K.

 

 

 

Item 9.0l. Financial Statements and Exhibits

 

	(c) Exhibits
	Exhibit Number	Description
	99.1	Press Release, dated February 26, 2015

 

  

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.

 

	SUPERIOR UNIFORM GROUP, INC.
	By:	/s/ Andrew D. Demott, Jr.
		Andrew D. Demott, Jr.
		Executive Vice President, Chief Financial Officer and Treasurer

 

 

Date: February 26, 2015

 

 

 

EXHIBIT INDEX

 

 

Exhibit Number	Description
99.1	Press Release, dated February 26, 2015

 

NEWS RELEASE

EXHIBIT 99.1

 

Superior Uniform Group, Inc.

A NASDAQ Listed Company: SGC

10055 Seminole Boulevard

Seminole, Florida 33772-2539

Telephone (727) 397-9611

Fax (727) 803-9623

 

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

 

SUPERIOR UNIFORM GROUP, INC. REPORTS OPERATING RESULTS FOR 2014

●

Net Sales Increase 29.5% with 18.2% Organic Growth

●

Net Income Increases over 90%

●

Earnings per share (Diluted) Increases 78.3%

 

SEMINOLE, Fla. - February 26, 2015 – Superior Uniform Group, Inc. (NASDAQ: SGC), manufacturer of uniforms, image apparel and accessories, today announced its fourth quarter and year-end operating results for 2014.

 

The Company announced that for the year ended December 31, 2014, net sales increased 29.5% to $196.2 million, compared to 2013 net sales of $151.5 million. Net income for the year ended December 31, 2014 was $11.3 million, or $0.82 per share (diluted), compared to $5.9 million, or $0.46 per share (diluted), reported for the year ended December 31, 2013.

 

Net income for the fourth quarter ended December 31, 2014 was $2.9 million, or $0.20 per share (diluted), compared to net income of $1.7 million or $0.13 per share (diluted) reported for the fourth quarter ended December 31, 2013.

 

Michael Benstock, chief executive officer, commented: “We are very pleased to report that we had a very strong finish to a transformational year for our company. We reported phenomenal results, including two record quarters, and strengthened our business model. Net sales increased 29.5% in 2014 and, while the inclusion of HPI’s operating results for the full year in 2014 versus only six months in 2013 contributed $17.1 million, or 11.3% of this growth, organic growth in both of our operating segments contributed 18.2% of growth. HPI and the balance of our Uniforms and Related Products segment made significant inroads in taking additional market share in 2014. Additionally, we’ve made significant progress on our long-term growth strategies in place at both operating segments. Our diverse business segments offer services for which there is a growing demand. We maintain a strong competitive position from a cost efficient platform and are able to generate solid margins with potential for upside leverage.

 

– more –

 

 

 

“Favorable market and economic trends are driving forward momentum. While we don’t provide specific guidance, we currently expect our uniform segment will exceed our organic growth rate of approximately 6 percent per year, which represents our historical growth rate for the last several years prior to the HPI acquisition. Our Remote Staffing Solutions vertical should continue to post significant growth at the same dollar levels generated in the past few years. Overall, on a consolidated basis, we expect average organic growth in excess of 8 percent per year over the next three to five years. Additionally, we are aggressively seeking acquisitions with high-growth potential.

 

“We have evolved while maintaining the same entrepreneurial spirit our 95-year heritage was built upon. Our management team and entire workforce are highly motivated to reach the next level of growth and drive optimum results, strengthen the company’s enterprise value, and create long-term value for our shareholders.”

 

About Superior Uniform Group, Inc.

 

Superior Uniform Group^® (NASDAQ: SGC), established in 1920, is an award-winning provider of uniform programs, image apparel and promotional products. We provide these products as well as a wide range of value-added services to major corporations and healthcare facilities nationwide. We are leaders in innovative product and program design, global manufacturing and state-of-the-art distribution. Our customers rely on us to provide their employees and customers with an extraordinary experience which helps them to better communicate their brand identity. We provide uniforms for the healthcare, retail, food service, private security, transportation, and hospitality marketplaces.

 

Superior Uniform Group’s commitment to service, quality, value, innovation and social responsibility, combined with our financial strength and global resources enable us to meet and exceed our customers’ diverse needs. We sell our products through our signature brands, Superior I.D.™, Fashion Seal Healthcare^® and HPI Direct^®. Superior Uniform Group is also the parent company of The Office Gurus^®, our Business Process Outsourcing and Call Center vertical.

 

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

 

– more –

 

 

 

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 for 2014 and 2013 are as follows:

 

Superior Uniform Group, Inc. and Subsidiaries

Consolidated Statements of Income

 

		Three Months Ended December 31,
		(Unaudited)
		2014				2013
Net sales		$	49,701,000			$	45,473,000
Costs and expenses:
Cost of goods sold			32,459,000				30,446,000
Selling and administrative expenses			12,494,000				12,397,000
Interest expense			132,000				85,000
			45,085,000				42,928,000
Income before taxes on income			4,616,000				2,545,000
Income tax expense			1,760,000				870,000
Net income		$	2,856,000			$	1,675,000
Per Share Data:
Basic:
Net income		$	0.21			$	0.13
Diluted:
Net income		$	0.20			$	0.13
Cash dividends per common share		$	0.075			$	0.068

 

– more –

 

 

 

Superior Uniform Group, Inc. and Subsidiaries

Consolidated Statements of Income

Years Ended December 31,

 

		2014				2013
Net sales		$	196,249,000			$	151,496,000
Costs and expenses:
Cost of goods sold			127,512,000				98,938,000
Selling and administrative expenses			50,724,000				43,873,000
Interest expense			484,000				195,000
			178,720,000				143,006,000
Income before taxes on income			17,529,000				8,490,000
Income tax expense			6,180,000				2,640,000
Net income		$	11,349,000			$	5,850,000
Per Share Data:
Basic:
Net income		$	0.85			$	0.47
Diluted:
Net income		$	0.82			$	0.46
Cash dividends per common share		$	0.285			$	0.068

 

– more –

 

 

 

Superior Uniform Group, Inc. and Subsidiaries

Consolidated Balance Sheets

December 31,

 

		2014				2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	4,586,000			$	5,316,000
Accounts receivable, less allowance for doubtful accounts of $680,000 and $560,000, respectively			27,956,000				22,735,000
Accounts receivable - other			4,135,000				4,133,000
Inventories			58,282,000				49,486,000
Prepaid expenses and other current assets			4,497,000				6,012,000
TOTAL CURRENT ASSETS			99,456,000				87,682,000
PROPERTY, PLANT AND EQUIPMENT, NET			16,285,000				13,160,000
OTHER INTANGIBLE ASSETS, NET			16,288,000				18,353,000
GOODWILL			4,135,000				4,135,000
DEFERRED INCOME TAXES			3,636,000				2,009,000
OTHER ASSETS			137,000				155,000
		$	139,937,000			$	125,494,000
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable		$	9,706,000			$	8,363,000
Other current liabilities			8,995,000				7,768,000
Current portion of long-term debt			2,375,000				1,750,000
Current portion of acquisition-related contingent liability			1,189,000				-
TOTAL CURRENT LIABILITIES			22,265,000				17,881,000
LONG-TERM DEBT			22,660,000				24,500,000
LONG-TERM PENSION LIABILITY			8,084,000				3,617,000
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITY			5,745,000				6,806,000
OTHER LONG-TERM LIABILITIES			580,000				625,000
DEFERRED INCOME TAXES			191,000				130,000
COMMITMENTS AND CONTINGENCIES
TOTAL SHAREHOLDERS' EQUITY			80,412,000				71,935,000
		$	139,937,000			$	125,494,000

 

– more –

 

 

 

Superior Uniform Group, Inc. and Subsidiaries        

CONSOLIDATED STATEMENTS OF CASH FLOWS        

Years Ended December 31,         

 

		2014				2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	11,349,000			$	5,850,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			3,839,000				2,582,000
Provision for bad debts - accounts receivable			197,000				161,000
Share-based compensation expense			1,404,000				788,000
Deferred income tax provision (benefit)			1,000				(249,000	)
Gain on sale of property, plant and equipment			(91,000	)			(12,000	)
Accretion of acquisition-related contingent liability			128,000				63,000
Changes in assets and liabilities, net of acquisition of business:
Accounts receivable - trade			(5,418,000	)			(1,569,000	)
Accounts receivable - other			(2,000	)			(1,138,000	)
Inventories			(8,796,000	)			134,000
Prepaid expenses and other current assets			1,515,000				(2,122,000	)
Other assets			18,000				27,000
Accounts payable			1,343,000				1,734,000
Other current liabilities			1,180,000				1,781,000
Long-term pension liability			216,000				482,000
Other long-term liabilities			(45,000	)			(111,000	)
Net cash provided by operating activities			6,838,000				8,401,000
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment			(4,936,000	)			(1,631,000	)
Proceeds from disposals of property, plant and equipment			128,000				14,000
Purchase of business			-				(32,483,000	)
Net cash used in investing activities			(4,808,000	)			(34,100,000	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt			55,117,000				44,740,000
Repayment of long-term debt			(56,332,000	)			(18,490,000	)
Payment of cash dividends			(3,663,000	)			(874,000	)
Proceeds received on exercise of stock options			1,855,000				2,216,000
Excess tax benefit from exercise of stock options and SARs			263,000				31,000
Common stock reacquired and retired			-				(162,000	)
Net cash (used in) provided by financing activities			(2,760,000	)			27,461,000
Net (decrease) increase in cash and cash equivalents			(730,000	)			1,762,000
Cash and cash equivalents balance, beginning of year			5,316,000				3,554,000
Cash and cash equivalents balance, end of year		$	4,586,000			$	5,316,000

 

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