Superior Group of Companies, Inc. (NASDAQ: SGC), today announced
its second quarter operating results for 2021.
The Company announced that for the
third quarter ended September 30, 2021, net sales
decreased 3.5% to $123.3 million, compared to third
quarter 2020 net sales of $127.7 million. Pretax Income was
$10.0 million compared to $12.1 million in the
third quarter of 2020. Net income was $8.2 million or
$0.51 per diluted share compared to $9.9 million, or
$0.63 per diluted share for the third quarter of
2020.
Michael Benstock, Chief Executive Officer,
commented, “We are encouraged by the momentum of our core
businesses and believe we are well positioned to take market share
across our portfolio of core products and services. Excluding the
impact of PPE sales, we saw remarkable growth in our promotional
products segment and our remote staffing solutions segment.
Uniforms and related products reported growth in net sales of 3.9
percent, excluding the impact of PPE sales and in spite of
continuing headwinds from global supply chain and logistical
issues. We continue to see increasing opportunities for growth as
business activity normalizes. We are well positioned with strong
tailwinds in all of our core businesses and expect to continue to
report strong sales and earnings for the balance of
2021.”
CONFERENCE CALL
Superior Group of Companies will hold a
conference call on Wednesday, November 3, 2021 at 2:15 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 Group of Companies call. The live webcast
and archived replay can also be accessed in the investor
information section of the Company's website at
https://ir.superiorgroupofcompanies.com/Presentations.
A telephone replay of the teleconference will be
available one hour after the end of the call through November
17, 2021. 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 10160553 for all
replay access.
Disclosure Regarding Forward Looking
Statements
Certain matters discussed in this press release
are “forward-looking statements” intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
generally be identified by use of the words “may,” “will,”
“should,” “could,” “expect,” anticipate,” “estimate,” “believe,”
“intend,” “project,” “potential,” or “plan” or the negative of
these words or other variations on these words or comparable
terminology. Forward-looking statements in this press release may
include, without limitation: (1) the projected impact of the
COVID-19 pandemic on our, our customers’, and our suppliers’
businesses, (2) projections of revenue, income, and other items
relating to our financial position and results of operations, (3)
statements of our plans, objectives, strategies, goals and
intentions, (4) statements regarding the capabilities, capacities,
market position and expected development of our business
operations, and (5) statements of expected industry and general
economic trends.
Such forward-looking statements are subject to
certain risks and uncertainties that may materially adversely
affect the anticipated results. Such risks and uncertainties
include, but are not limited to, the following: the impact of
competition; the effect of uncertainties related to the COVID-19
pandemic, including existing and possible future variants, on the
United States of America (“U.S.” or “United States”) and global
markets, our business, operations, customers, suppliers and
employees, including without limitation the length and scope of
restrictions imposed by various governments and organizations and
the success of efforts to deliver effective vaccines on a timely
basis to a number of people sufficient to prevent or substantially
lower the severity of incidents of infection or variants, among
other factors; our ability to navigate successfully the challenges
posed by current global supply disruptions; general economic
conditions, including employment levels, in the areas of the United
States in which the Company’s customers are located; changes in the
healthcare, retail, hotels, food service, transportation and other
industries where uniforms and service apparel are worn; our ability
to identify suitable acquisition targets, successfully integrate
any acquired businesses, successfully manage our expanding
operations, or discover liabilities associated with such businesses
during the diligence process; the price and availability of cotton
and other manufacturing materials; attracting and retaining senior
management and key personnel and other factors described in the
Company’s filings with the Securities and Exchange Commission,
including those described in the “Risk Factors” section of our
Annual Report on Form 10-K for the fiscal year ended December 31,
2020 and the Quarterly Report on Form 10-Q for the quarter ended
September 30, 2021. Shareholders, potential investors and other
readers are urged to consider these factors carefully in evaluating
the forward-looking statements made herein and are cautioned not to
place undue reliance on such forward-looking statements. The
forward-looking statements made herein are only made as of the date
of this press release and we disclaim any obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances, except as may be required by law.
About Superior Group of Companies, Inc.
(SGC):
Superior Group of Companies™ formerly Superior
Uniform Group, established in 1920, is a combination of companies
that help our customers unlock the power of their brands by
creating extraordinary brand engagement experiences for their
employees and customers. We provide customized support for each of
our divisions through our shared services model.
Fashion Seal Healthcare®, HPI® and WonderWink®
are our core uniform brands. Each is one of America’s leading
providers of uniforms and image apparel in the markets we serve. We
specialize in innovative uniform program design, global
manufacturing, and state-of-the-art distribution. Every workday,
more than 7 million Americans go to work wearing a uniform from
Superior Group of Companies.
BAMKO®, Tangerine Promotions®, Public Identity®
and Gifts By Design™ are our signature promotional product
companies. We provide 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 our customers in
order to accelerate their growth and improve our customers’ service
experiences.
SGC’s commitment to service, technology, quality
and value-added benefits, as well as our financial strength and
resources, provides unparalleled support for our customers’ diverse
needs while embracing a “Customer 1st, Every Time!” philosophy and
culture in all of our business segments.
Visit www.superiorgroupofcompanies.com for more information.
Contact: |
|
Hala
Elsherbini |
Andrew D. Demott, Jr. |
|
Three Part Advisors |
COO & CFO |
-OR- |
Senior Managing Director |
727-803-7135 |
|
214-442-0016 |
Comparative figures are as follows:
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
(In thousands, except share and per
share data)
|
|
Three Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
Net sales |
|
$ |
123,326 |
|
|
$ |
127,737 |
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
77,512 |
|
|
|
80,285 |
|
Selling and administrative expenses |
|
|
35,059 |
|
|
|
34,917 |
|
Other periodic pension costs |
|
|
459 |
|
|
|
212 |
|
Interest expense |
|
|
320 |
|
|
|
239 |
|
|
|
|
113,350 |
|
|
|
115,653 |
|
Income before taxes on
income |
|
|
9,976 |
|
|
|
12,084 |
|
Income tax expense |
|
|
1,780 |
|
|
|
2,140 |
|
Net income |
|
$ |
8,196 |
|
|
$ |
9,944 |
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.53 |
|
|
$ |
0.66 |
|
Diluted |
|
$ |
0.51 |
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding during the period: |
|
|
|
|
|
|
|
|
Basic |
|
|
15,528,534 |
|
|
|
15,084,300 |
|
Diluted |
|
|
16,099,850 |
|
|
|
15,711,122 |
|
|
|
|
|
|
|
|
|
|
Cash dividends per common
share |
|
$ |
0.12 |
|
|
$ |
0.20 |
|
SUPERIOR GROUP OF COMPANIES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)(In thousands, except share and per
share data)
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
Net sales |
|
$ |
394,960 |
|
|
$ |
381,341 |
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
252,945 |
|
|
|
244,500 |
|
Selling and administrative expenses |
|
|
104,076 |
|
|
|
98,704 |
|
Other periodic pension costs |
|
|
1,328 |
|
|
|
830 |
|
Pension plan termination charge |
|
|
6,945 |
|
|
|
- |
|
Interest expense |
|
|
925 |
|
|
|
1,732 |
|
|
|
|
366,219 |
|
|
|
345,766 |
|
Income before taxes on
income |
|
|
28,741 |
|
|
|
35,575 |
|
Income tax expense |
|
|
5,490 |
|
|
|
7,090 |
|
Net income |
|
$ |
23,251 |
|
|
$ |
28,485 |
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.51 |
|
|
$ |
1.89 |
|
Diluted |
|
$ |
1.45 |
|
|
$ |
1.85 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding during the period |
|
|
|
|
|
|
|
|
Basic |
|
|
15,394,427 |
|
|
|
15,041,738 |
|
Diluted |
|
|
16,059,686 |
|
|
|
15,361,035 |
|
|
|
|
|
|
|
|
|
|
Cash dividends per common
share |
|
$ |
0.34 |
|
|
$ |
0.30 |
|
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(In thousands, except share and par value data) |
|
|
September 30, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,408 |
|
|
$ |
5,172 |
|
Accounts receivable, less allowance for doubtful accounts of $5,852
and $7,667, respectively |
|
|
92,500 |
|
|
|
101,902 |
|
Accounts receivable - other |
|
|
2,338 |
|
|
|
1,356 |
|
Inventories |
|
|
103,371 |
|
|
|
89,766 |
|
Contract assets |
|
|
37,575 |
|
|
|
39,231 |
|
Prepaid expenses and other current assets |
|
|
15,633 |
|
|
|
11,030 |
|
Total current assets |
|
|
257,825 |
|
|
|
248,457 |
|
Property, plant and equipment,
net |
|
|
46,928 |
|
|
|
36,644 |
|
Operating lease right-of-use
assets |
|
|
6,299 |
|
|
|
3,826 |
|
Intangible assets, net |
|
|
59,414 |
|
|
|
58,746 |
|
Goodwill |
|
|
38,557 |
|
|
|
36,116 |
|
Other assets |
|
|
13,154 |
|
|
|
10,135 |
|
Total assets |
|
$ |
422,177 |
|
|
$ |
393,924 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
38,096 |
|
|
$ |
39,327 |
|
Other current liabilities |
|
|
36,069 |
|
|
|
44,670 |
|
Current portion of long-term debt |
|
|
15,286 |
|
|
|
15,286 |
|
Current portion of acquisition-related contingent liabilities |
|
|
3,929 |
|
|
|
5,589 |
|
Total current liabilities |
|
|
93,380 |
|
|
|
104,872 |
|
Long-term debt |
|
|
80,882 |
|
|
|
72,372 |
|
Long-term pension
liability |
|
|
14,548 |
|
|
|
14,574 |
|
Long-term acquisition-related
contingent liabilities |
|
|
- |
|
|
|
1,892 |
|
Long-term operating lease
liabilities |
|
|
2,189 |
|
|
|
1,599 |
|
Deferred tax liability |
|
|
1,448 |
|
|
|
450 |
|
Other long-term
liabilities |
|
|
8,795 |
|
|
|
6,535 |
|
Commitments and contingencies
(Note 6) |
|
|
|
|
|
|
|
|
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 15,960,253 and 15,391,660 shares,
respectively. |
|
|
16 |
|
|
|
15 |
|
Additional paid-in capital |
|
|
66,996 |
|
|
|
61,844 |
|
Retained earnings |
|
|
159,711 |
|
|
|
141,972 |
|
Accumulated other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
Pensions |
|
|
(4,285 |
) |
|
|
(10,898 |
) |
Cash flow hedges |
|
|
53 |
|
|
|
69 |
|
Foreign currency translation adjustment |
|
|
(1,556 |
) |
|
|
(1,372 |
) |
Total shareholders’ equity |
|
|
220,935 |
|
|
|
191,630 |
|
Total liabilities and shareholders’ equity |
|
$ |
422,177 |
|
|
$ |
393,924 |
|
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
(In thousands) |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
|
$ |
23,251 |
|
|
$ |
28,485 |
|
Adjustments to reconcile net
income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
6,719 |
|
|
|
5,972 |
|
Provision for bad debts - accounts receivable |
|
|
1,715 |
|
|
|
6,099 |
|
Share-based compensation expense |
|
|
2,757 |
|
|
|
1,790 |
|
Deferred income tax benefit |
|
|
(1,127 |
) |
|
|
(3,654 |
) |
Change in fair value of acquisition-related contingent
liabilities |
|
|
2,310 |
|
|
|
2,759 |
|
Pension plan termination charge |
|
|
6,945 |
|
|
|
- |
|
Changes in assets and liabilities, net of acquisition of
business: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
7,544 |
|
|
|
(12,225 |
) |
Accounts receivable - other |
|
|
(732 |
) |
|
|
(1,121 |
) |
Contract assets |
|
|
1,656 |
|
|
|
3,049 |
|
Inventories |
|
|
(13,667 |
) |
|
|
(7,306 |
) |
Prepaid expenses and other current assets |
|
|
(4,445 |
) |
|
|
(3,592 |
) |
Other assets |
|
|
(1,462 |
) |
|
|
1 |
|
Accounts payable and other current liabilities |
|
|
(12,287 |
) |
|
|
29,167 |
|
Payment of acquisition-related contingent liabilities |
|
|
(4,220 |
) |
|
|
- |
|
Long-term pension liability |
|
|
860 |
|
|
|
864 |
|
Other long-term liabilities |
|
|
2,344 |
|
|
|
779 |
|
Net cash provided by operating activities |
|
|
18,161 |
|
|
|
51,067 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
|
Additions to property, plant
and equipment |
|
|
(14,455 |
) |
|
|
(5,711 |
) |
Acquisition of business |
|
|
(6,026 |
) |
|
|
- |
|
Net cash used in investing activities |
|
|
(20,481 |
) |
|
|
(5,711 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from borrowings of
debt |
|
|
173,436 |
|
|
|
137,559 |
|
Repayment of debt |
|
|
(165,023 |
) |
|
|
(180,112 |
) |
Payment of cash dividends |
|
|
(5,334 |
) |
|
|
(4,574 |
) |
Payment of acquisition-related
contingent liability |
|
|
(1,641 |
) |
|
|
(1,966 |
) |
Proceeds received on exercise
of stock options |
|
|
2,452 |
|
|
|
1,407 |
|
Tax withholdings on exercise
of performance based stock |
|
|
(405 |
) |
|
|
(32 |
) |
Tax (provision) benefit from
vesting of acquisition-related restricted stock |
|
|
171 |
|
|
|
(13 |
) |
Common stock reacquired and
retired |
|
|
- |
|
|
|
(500 |
) |
Net cash provided by (used in) financing activities |
|
|
3,656 |
|
|
|
(48,231 |
) |
|
|
|
|
|
|
|
|
|
Effect of currency exchange
rates on cash |
|
|
(100 |
) |
|
|
(512 |
) |
Net increase (decrease) in
cash and cash equivalents |
|
|
1,236 |
|
|
|
(3,387 |
) |
Cash and cash equivalents
balance, beginning of period |
|
|
5,172 |
|
|
|
9,038 |
|
Cash and cash equivalents
balance, end of period |
|
$ |
6,408 |
|
|
$ |
5,651 |
|
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES |
NON-GAAP FINANCIAL MEASURES |
(Unaudited) |
(In thousands, except share and par value data) |
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income |
|
$ |
8,196 |
|
|
$ |
9,944 |
|
|
$ |
23,251 |
|
|
$ |
28,485 |
|
Adjustment for items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension plan termination charge |
|
|
- |
|
|
|
- |
|
|
|
6,945 |
|
|
|
- |
|
Tax impact of adjustment |
|
|
- |
|
|
|
- |
|
|
|
(610 |
) |
|
|
- |
|
Adjusted net income(1) |
|
$ |
8,196 |
|
|
$ |
9,944 |
|
|
$ |
29,586 |
|
|
$ |
28,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share |
|
$ |
0.51 |
|
|
$ |
0.63 |
|
|
$ |
1.45 |
|
|
$ |
1.85 |
|
Adjustment for items,
after-tax, per diluted share |
|
|
- |
|
|
|
- |
|
|
|
0.39 |
|
|
|
- |
|
Diluted adjusted net income
per share(1) |
|
$ |
0.51 |
|
|
$ |
0.63 |
|
|
$ |
1.84 |
|
|
$ |
1.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding during the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
16,099,850 |
|
|
|
15,711,122 |
|
|
|
16,059,686 |
|
|
|
15,361,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted net income and
diluted adjusted net income per share, which are non-GAAP measures,
are defined as net income and net income per share, excluding the
impact of pension plan termination charges (net of tax). Management
believes adjusted net income and diluted adjusted net income per
share provides useful information to investors because it allows
management, investors and others to evaluate and compare our
operating results from period to period by removing the impact of
pension plan termination charges not appropriately reflective of
our core business. |
Superior Group of Compan... (NASDAQ:SGC)
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From Jun 2024 to Jul 2024
Superior Group of Compan... (NASDAQ:SGC)
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From Jul 2023 to Jul 2024