SGC Superior Group of Companies Inc

Superior Uniform Group, Inc. (NASDAQ:SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the first quarter ended March 31, 2016, net sales increased 25.1 percent to $58.0 million compared with 2015 first quarter net sales of $46.3 million.  Net income for the 2016 first quarter was $2.3 million, or $0.15 per diluted share, compared with $2.0 million, or $0.14 per diluted share, reported for the quarter ended March 31, 2015.  Net income for the quarter ended March 31, 2016 was reduced by pre-tax expenses, related to the BAMKO acquisition, of approximately $0.9 million.  After taxes, these expenses reduced diluted earnings per share approximately $0.04.

Michael Benstock, Chief Executive Officer, commented, “We are very pleased to report our 14th consecutive quarterly sales increase, with net sales up 25.1 percent in the first quarter of 2016.  BAMKO contributed net sales of $3.8 million in the first quarter from the March 1, 2016 effective date of the acquisition. Net sales increased by 16.9 percent excluding the impact of BAMKO.  Our income for the quarter was reduced by approximately $0.9 million in pre-tax acquisition related expenses.  Excluding the impact of these expenses, BAMKO contributed $0.1 million of pre-tax earnings in the current quarter. 

“Exclusive of the acquisition of BAMKO, our Uniforms and Related Products segment continued its sales momentum with net sales increasing by 15.7 percent in the first quarter of 2016 in comparison with the same period in 2015.

“The transition for BAMKO is proceeding very well at this point.  They are experiencing positive sales momentum. Their net sales for the full first quarter, including the two months prior to the acquisition, were approximately $10.4 million in 2016 as compared to $7.1 million in the prior year first quarter.

“We also continue to see significant growth in our Remote Staffing Solutions segment, with an increase in net sales to outside customers of approximately 36.2 percent in the first quarter of 2016 as compared to the same period of 2015.

“Our strong financial position allows us to take advantage of opportunities like the BAMKO acquisition as they arise without constraining our ability to invest in the future of our other businesses.  We will continue to seek accretive acquisitions in the future to supplement our continued growth.”

CONFERENCE CALL

Superior Uniform Group will hold a conference call on Thursday, April 28, 2016 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 May 5, 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 10084213 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 March 31,
	(Unaudited)
									2016		2015
	Net sales							$	57,968,000	$	46,347,000
	Costs and expenses:
		Cost of goods sold							37,947,000		30,551,000
		Selling and administrative expenses							16,463,000		12,437,000
		Interest expense							148,000		136,000
									54,558,000		43,124,000
	Income before taxes on income								3,410,000		3,223,000
	Income tax expense								1,150,000		1,180,000
	Net income							$	2,260,000	$	2,043,000
	Weighted average number of shares outstanding during the period
							(Basic)		13,927,063		13,584,922
							(Diluted)		14,668,658		14,548,084
	Per Share Data:
	Basic
		Net income						$	0.16	$	0.15
	Diluted
		Net income						$	0.15	$	0.14
	Cash dividends per common share							$	0.0825	$	0.075

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
							March 31,
							2016		December 31,
							(Unaudited)		2015
CURRENT ASSETS:
	Cash and cash equivalents					$	2,289,000	$	1,036,000
	Accounts receivable, less allowance for doubtful accounts
	of  $1,060,000 and $848,000, respectively						38,554,000		29,914,000
	Accounts receivable - other						3,305,000		3,262,000
	Prepaid expenses and other current assets						9,625,000		6,214,000
	Inventories*						62,810,000		63,573,000
TOTAL CURRENT ASSETS							116,583,000		103,999,000
PROPERTY, PLANT AND EQUIPMENT, NET							24,874,000		22,524,000
OTHER INTANGIBLE ASSETS, NET							25,035,000		14,222,000
GOODWILL							11,408,000		4,135,000
DEFERRED INCOME TAXES							5,218,000		4,980,000
OTHER ASSETS							2,320,000		1,871,000
						$	185,438,000	$	151,731,000
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable					$	11,324,000	$	11,775,000
	Other current liabilities						6,794,000		8,307,000
	Current portion of long-term debt						6,429,000		2,750,000
	Current portion of acquisition-related contingent liabilities						-		1,787,000
TOTAL CURRENT LIABILITIES							24,547,000		24,619,000
LONG-TERM DEBT, net of issuance costs							41,634,000		21,131,000
LONG-TERM PENSION LIABILITY							8,889,000		8,925,000
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITIES							9,284,000		3,866,000
OTHER LONG-TERM LIABILITIES							520,000		500,000
TOTAL SHAREHOLDERS' EQUITY							100,564,000		92,690,000
						$	185,438,000	$	151,731,000

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31,
(Unaudited)
							2016				2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income					$		2,260,000		$		2,043,000
Adjustments to reconcile net income
to net cash used in operating activities:
	Depreciation and amortization						1,103,000				953,000
	Provision for bad debts - accounts receivable						67,000				59,000
	Share-based compensation expense						831,000				824,000
	Deferred income tax provision						(206,000	)			62,000
	Loss on sales of property, plant and equipment						-				12,000
	Accretion of acquisition-related contingent liability						35,000				33,000
	Changes in assets and liabilities, net of acquisition of business:
		Accounts receivable - trade					(3,650,000	)			804,000
		Accounts receivable - other					(43,000	)			(435,000	)
		Inventories					1,001,000				(1,639,000	)
		Prepaid expenses and other current assets					(184,000	)			(2,230,000	)
		Other assets					(281,000	)			(2,000	)
		Accounts payable					(1,833,000	)			1,142,000
		Other current liabilities					(2,518,000	)			(2,887,000	)
		Long-term pension liability					485,000				127,000
		Other long-term liabilities					20,000				20,000
	Net cash used in operating activities						(2,913,000	)			(1,114,000	)
CASH FLOWS FROM INVESTING ACTIVITIES
	Additions to property, plant and equipment						(2,707,000	)			(906,000	)
	Acquisition of business, net of acquired cash						(15,252,000	)			-
	Net cash used in investing activities						(17,959,000	)			(906,000	)
CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from long-term debt						74,363,000				13,220,000
	Repayment of long-term debt						(50,250,000	)			(10,255,000	)
	Payment of cash dividends						(1,133,000	)			(1,000,000	)
	Payment of contingent liability						(1,800,000	)			-
	Proceeds received on exercise of stock options						322,000				356,000
	Excess tax benefit from equity-related transactions						593,000				132,000
Net cash provided by financing activities							22,095,000				2,453,000
Effect of currency exchange rates on cash							30,000				-
Net increase in cash and cash equivalents							1,253,000				433,000
Cash and cash equivalents balance, beginning of year							1,036,000				4,586,000
Cash and cash equivalents balance, end of period					$		2,289,000		$		5,019,000

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

OR

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