SGC Superior Group of Companies Inc

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

For the year ended December 31, 2015, net sales increased 7.2 percent to $210.3 million, compared to 2014 net sales of $196.2 million. Net income for the year ended December 31, 2015 was $13.1 million, or $0.90 per diluted share, compared to $11.3 million, or $0.82 per diluted share, reported for the year ended December 31, 2014.

Net income for the fourth quarter ended December 31, 2015 was $3.4 million, or $0.23 per diluted share, compared to net income of $2.9 million or $0.20 per diluted share reported for the fourth quarter ended December 31, 2014.              Michael Benstock, Chief Executive Officer, commented, “We are pleased to report an increase in net sales of 7.2 percent for 2015 and an increase in net income of 15.1 percent.  While we believe these results are impressive, we are especially proud of the net sales gain when taking into account 2014 net sales included the rollout of a new program to one of our airline customers that exceeded $5 million. 

“While we continued to service this customer on an ongoing basis, the rollout amount from 2014 is not recurring.  Additionally, we continue to see positive results from our ongoing growth strategies.  During 2015, we landed our second GPO (Group Purchasing Organization) contract, and we are working diligently to take advantage of these GPO agreements to further penetrate the direct healthcare market.     

“We are reiterating our previous guidance relative to net sales.  We expect that organic growth in our uniform segment will exceed 6 percent and our remote staffing vertical will continue to generate significant growth consistent with the levels experienced over the last several years.  Overall, on a consolidated basis, we expect average organic growth in excess of 8 percent over the next three to five years.  Additionally, we expect to supplement this growth by seeking acquisitions with high growth potential.”

Conference Call

Superior Uniform Group will hold a conference call today 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 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 March 3, 2016. 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 10080864 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 primarily sells its 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®, its BPO and Contact Center vertical.

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 for 2015 and 2014 are as follows:

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
THREE MONTHS ENDED DECEMBER 31,
				2015			2014
Net sales			$	53,192,000		$	49,701,000
Costs and expenses:
		Cost of goods sold		35,310,000			32,459,000
		Selling and administrative expenses		13,060,000			12,494,000
		Interest expense		124,000			132,000
				48,494,000			45,085,000
Income before taxes on income				4,698,000			4,616,000
Taxes on income				1,330,000			1,760,000
Net income			$	3,368,000		$	2,856,000
Per Share Data:
Basic
	Net earnings		$	0.24		$	0.21
Diluted
	Net earnings		$	0.23		$	0.20
Dividends per common share			$	0.083		$	0.075

 

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31,
				2015			2014
Net sales			$	210,317,000		$	196,249,000
Costs and expenses:
		Cost of goods sold		138,884,000			127,512,000
		Selling and administrative expenses		52,018,000			50,724,000
		Interest expense		519,000			484,000
				191,421,000			178,720,000
Income before taxes on income				18,896,000			17,529,000
Taxes on income				5,830,000			6,180,000
Net income			$	13,066,000		$	11,349,000
Per Share Data:
Basic
	Net earnings		$	0.95		$	0.85
Diluted
	Net earnings		$	0.90		$	0.82
Dividends per common share			$	0.315		$	0.285

 

	SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
	CONSOLIDATED BALANCE SHEETS
	YEARS ENDED DECEMBER 31,
	ASSETS
								2015		2014
	CURRENT ASSETS:
		Cash and cash equivalents					$	1,036,000	$	4,586,000
		Accounts receivable, less allowance for doubtful accounts
		of  $848,000 and $680,000, respectively						29,914,000		27,956,000
		Accounts receivable - other						3,262,000		4,135,000
		Inventories						63,573,000		58,282,000
		Prepaid expenses and other current assets						6,214,000		4,497,000
	TOTAL CURRENT ASSETS							103,999,000		99,456,000
	PROPERTY, PLANT AND EQUIPMENT, NET							22,524,000		16,285,000
	OTHER INTANGIBLE ASSETS, NET							14,222,000		16,288,000
	GOODWILL							4,135,000		4,135,000
	DEFERRED INCOME TAXES							4,980,000		3,636,000
	OTHER ASSETS							1,940,000		137,000
							$	151,800,000	$	139,937,000
	LIABILITIES AND SHAREHOLDERS' EQUITY
	CURRENT LIABILITIES:
		Accounts payable					$	11,775,000	$	9,706,000
		Other current liabilities						8,307,000		8,995,000
		Current portion of long-term debt						2,750,000		2,375,000
		Current portion of acquisition-related contingent liability						1,787,000		1,189,000
	TOTAL CURRENT LIABILITIES							24,619,000		22,265,000
	LONG-TERM DEBT							21,200,000		22,660,000
	LONG-TERM PENSION LIABILITY							8,925,000		8,084,000
	LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITY							3,866,000		5,745,000
	OTHER LONG-TERM LIABILITIES							500,000		580,000
	DEFERRED INCOME TAXES							-		191,000
	COMMITMENTS AND CONTINGENCIES
	TOTAL SHAREHOLDERS' EQUITY							92,690,000		80,412,000
							$	151,800,000	$	139,937,000

 

	SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
	CONSOLIDATED STATEMENTS OF CASH FLOWS
	YEARS ENDED DECEMBER 31,
										2015				2014
	CASH FLOWS FROM OPERATING ACTIVITIES
		Net income						$		13,066,000		$		11,349,000
		Adjustments to reconcile net income
		to net cash provided from operating activities:
			Depreciation and amortization							3,873,000				3,839,000
			Provision for bad debts - accounts receivable							266,000				197,000
			Share-based compensation expense							1,361,000				1,404,000
			Deferred income tax (benefit) provision							(1,216,000	)			1,000
			(Gain) on disposals of property, plant and equipment							(1,000	)			(91,000	)
			Adjustment to acquisition-related contingent liability							(200,000	)			-
			Accretion of acquisition-related contingent liability							119,000				128,000
			Changes in assets and liabilities:
				Accounts receivable - trade						(2,224,000	)			(5,418,000	)
				Accounts receivable - other						873,000				(2,000	)
				Inventories						(5,291,000	)			(8,796,000	)
				Prepaid expenses and other current assets						(1,717,000	)			1,515,000
				Other assets						(1,803,000	)			18,000
				Accounts payable						2,069,000				1,343,000
				Other current liabilities						(631,000	)			1,180,000
				Long-term pension liability						(112,000	)			216,000
				Other long-term liabilities						(80,000	)			(45,000	)
		Net cash provided from operating activities								8,352,000				6,838,000
	CASH FLOWS FROM INVESTING ACTIVITIES
			Additions to property, plant and equipment							(8,069,000	)			(4,936,000	)
			Proceeds from disposals of property, plant and equipment							24,000				128,000
			Net cash used in investing activities							(8,045,000	)			(4,808,000	)
	CASH FLOWS FROM FINANCING ACTIVITIES
			Proceeds from long-term debt							67,331,000				55,117,000
			Repayment of long-term debt							(68,416,000	)			(56,332,000	)
			Payment of cash dividends							(4,255,000	)			(3,663,000	)
			Payment of contingent liability							(1,200,000	)			-
			Proceeds received on exercise of stock options							1,840,000				1,855,000
			Excess tax benefit from exercise of stock options and SARS							843,000				263,000
		Net cash used in financing activities								(3,857,000	)			(2,760,000	)
		Net decrease in cash and cash equivalents								(3,550,000	)			(730,000	)
	Cash and cash equivalents balance, beginning of year									4,586,000				5,316,000
	Cash and cash equivalents balance, end of year							$		1,036,000		$		4,586,000

Contact:
Andrew D. Demott, Jr.,
COO, CFO & Treasurer 
(727) 803-7135

OR 

Hala Elsherbini,
Halliburton Investor Relations
 (972) 458-8000