SGC Superior Group of Companies Inc

 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

 

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

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Hala Elsherbini 
Halliburton Investor Relations
(972) 458-8000