Attached files
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| 8-K - FORM 8-K - SUPERIOR GROUP OF COMPANIES, INC. | sgc20151022_8k.htm |
EXHIBIT 99.1
NEWS RELEASE
Superior Uniform Group, Inc.
A NASDAQ Listed Company: SGC
10055 Seminole Boulevard
Seminole, Florida 33772-2539
Telephone (727) 397-9611
Fax (727) 803-2642
Contact:
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Andrew D. Demott, Jr. |
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Hala Elsherbini, Halliburton Investor Relations |
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COO, CFO & Treasurer |
OR |
(972) 458-8000 |
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(727) 803-7135 |
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For Immediate Release
SUPERIOR UNIFORM GROUP, INC. REPORTS THIRD QUARTER
OPERATING RESULTS
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Net Sales Increase 8.4% |
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Earnings Per Share (Diluted) Increases over 16% |
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12th Consecutive Quarter with Sales Increase |
SEMINOLE, Florida – October 22, 2015 - Superior Uniform Group, Inc. (NASDAQ: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the third quarter ended September 30, 2015, net sales increased 8.4 percent to $56.7 million compared with 2014 third quarter net sales of $52.3 million. Net income for the 2015 third quarter was $4.0 million, or $0.28 per diluted share, compared with $3.4 million, or $0.24 per diluted share, reported for the quarter ended September 30, 2014.
Michael Benstock, Chief Executive Officer, commented, “We are pleased to report an increase of 8.4 percent in net sales representing our 12th consecutive quarterly net sales increase. We continue to see positive results from our growth strategies, demonstrated by our recently awarded second GPO (Group Purchasing Organization) contract. We are also quite pleased to report an increase of approximately 16.7 percent in our earnings per diluted share in the current quarter.
“Operationally, we are meeting our growth milestones, and customer response to our product offerings remains strong in all areas of our business. Our solid financial position and healthy balance sheet allows us to respond more easily to changing market and economic conditions while continuing to deliver organic growth supplemented by accretive acquisitions.”
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CONFERENCE CALL
Superior Uniform Group will hold a conference call on Thursday, October 22, 2015 at 2:00 p.m. Eastern Time to discuss the Company’s results. Interested individuals may join the teleconference by dialing (877) 317-6789 for U.S. dialers and (412) 317-6789 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 October 29, 2015. 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 10073406 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.
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Comparative figures are as follows:
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
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2015 |
2014 |
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Net sales |
$ | 56,662,000 | $ | 52,291,000 | ||||
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Costs and expenses: |
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Cost of goods sold |
37,438,000 | 33,858,000 | ||||||
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Selling and administrative expenses |
13,513,000 | 13,121,000 | ||||||
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Interest expense |
130,000 | 144,000 | ||||||
| 51,081,000 | 47,123,000 | |||||||
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Income before taxes on income |
5,581,000 | 5,168,000 | ||||||
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Income tax expense |
1,550,000 | 1,800,000 | ||||||
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Net income |
$ | 4,031,000 | $ | 3,368,000 | ||||
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Weighted average number of shares outstanding during the period |
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(Basic) |
13,833,561 | 13,375,566 | ||||||
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(Diluted) |
14,585,688 | 14,004,202 | ||||||
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Per Share Data: |
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Basic |
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Net income |
$ | 0.29 | $ | 0.25 | ||||
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Diluted |
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Net income |
$ | 0.28 | $ | 0.24 | ||||
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Cash dividends per common share |
$ | 0.083 | $ | 0.075 | ||||
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NINE MONTHS ENDED SEPTEMBER 30,
(Continued)
(Unaudited)
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2015 |
2014 |
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Net sales |
$ | 157,125,000 | $ | 146,548,000 | ||||
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Costs and expenses: |
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Cost of goods sold |
103,574,000 | 95,053,000 | ||||||
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Selling and administrative expenses |
38,958,000 | 38,230,000 | ||||||
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Interest expense |
395,000 | 352,000 | ||||||
| 142,927,000 | 133,635,000 | |||||||
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Income before taxes on income |
14,198,000 | 12,913,000 | ||||||
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Income tax expense |
4,500,000 | 4,420,000 | ||||||
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Net income |
$ | 9,698,000 | $ | 8,493,000 | ||||
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Weighted average number of shares outstanding during the period |
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(Basic) |
13,716,376 | 13,237,438 | ||||||
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(Diluted) |
14,570,371 | 13,735,494 | ||||||
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Per Share Data: |
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Basic |
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Net income |
$ | 0.71 | $ | 0.64 | ||||
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Diluted |
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Net income |
$ | 0.67 | $ | 0.62 | ||||
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Cash dividends per common share |
$ | 0.233 | $ | 0.210 | ||||
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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September 30, |
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2015 |
December 31, |
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(Unaudited) |
2014 |
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| ASSETS | ||||||||
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CURRENT ASSETS: |
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Cash and cash equivalents |
$ | 3,074,000 | $ | 4,586,000 | ||||
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Accounts receivable, less allowance for doubtful accounts of $840,000 and $680,000, respectively |
35,059,000 | 27,956,000 | ||||||
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Accounts receivable - other |
3,088,000 | 4,135,000 | ||||||
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Inventories |
62,284,000 | 58,282,000 | ||||||
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Prepaid expenses and other current assets |
4,813,000 | 4,497,000 | ||||||
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TOTAL CURRENT ASSETS |
108,318,000 | 99,456,000 | ||||||
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PROPERTY, PLANT AND EQUIPMENT, NET |
19,106,000 | 16,285,000 | ||||||
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OTHER INTANGIBLE ASSETS, NET |
14,738,000 | 16,288,000 | ||||||
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GOODWILL |
4,135,000 | 4,135,000 | ||||||
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DEFERRED INCOME TAXES |
4,485,000 | 3,636,000 | ||||||
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OTHER ASSETS |
1,180,000 | 137,000 | ||||||
| $ | 151,962,000 | $ | 139,937,000 | |||||
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LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
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CURRENT LIABILITIES: |
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Accounts payable |
$ | 15,497,000 | $ | 9,706,000 | ||||
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Other current liabilities |
8,125,000 | 8,995,000 | ||||||
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Current portion of long-term debt |
3,000,000 | 2,375,000 | ||||||
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Current portion of acquisition-related contigent liability |
1,978,000 | 1,189,000 | ||||||
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TOTAL CURRENT LIABILITIES |
28,600,000 | 22,265,000 | ||||||
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LONG TERM DEBT |
21,130,000 | 22,660,000 | ||||||
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LONG-TERM PENSION LIABILITY |
6,826,000 | 8,084,000 | ||||||
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LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITY |
3,848,000 | 5,745,000 | ||||||
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OTHER LONG-TERM LIABILITIES |
480,000 | 580,000 | ||||||
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DEFERRED INCOME TAXES |
- | 191,000 | ||||||
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TOTAL SHAREHOLDERS' EQUITY |
91,078,000 | 80,412,000 | ||||||
| $ | 151,962,000 | $ | 139,937,000 | |||||
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
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2015 |
2014 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Net income |
$ | 9,698,000 | $ | 8,493,000 | ||||
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Adjustments to reconcile net income to net cash provided from operating activities: |
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Depreciation and amortization |
2,834,000 | 2,842,000 | ||||||
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Provision for bad debts - accounts receivable |
232,000 | 141,000 | ||||||
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Share-based compensation expense |
1,285,000 | 1,338,000 | ||||||
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Deferred income tax (benefit) provision |
(1,361,000 | ) | 130,000 | |||||
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Loss (gain) on disposals of property, plant and equipment |
13,000 | (91,000 | ) | |||||
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Accretion of acquisition-related contingent liability |
92,000 | 96,000 | ||||||
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Changes in assets and liabilities, net of acquisition of business: |
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Accounts receivable - trade |
(7,335,000 | ) | (7,091,000 | ) | ||||
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Accounts receivable - other |
1,047,000 | 530,000 | ||||||
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Inventories |
(4,002,000 | ) | (5,958,000 | ) | ||||
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Prepaid expenses and other current assets |
(316,000 | ) | 608,000 | |||||
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Other assets |
(1,043,000 | ) | 14,000 | |||||
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Accounts payable |
5,791,000 | 2,918,000 | ||||||
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Other current liabilities |
(890,000 | ) | 91,000 | |||||
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Long-term pension liability |
(333,000 | ) | 68,000 | |||||
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Other long-term liabilities |
(100,000 | ) | (65,000 | ) | ||||
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Net cash provided from operating activities |
5,612,000 | 4,064,000 | ||||||
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Additions to property, plant and equipment |
(4,118,000 | ) | (4,334,000 | ) | ||||
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Disposals of property, plant and equipment |
- | 128,000 | ||||||
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Net cash used in investing activities |
(4,118,000 | ) | (4,206,000 | ) | ||||
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CASH FLOWS FROM FINANCING ACTIVITIES |
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Proceeds from long-term debt |
44,460,000 | 46,197,000 | ||||||
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Repayment of long-term debt |
(45,365,000 | ) | (47,322,000 | ) | ||||
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Payment of cash dividends |
(3,128,000 | ) | (2,675,000 | ) | ||||
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Payment of contingent liability |
(1,200,000 | ) | - | |||||
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Proceeds received on exercise of stock options |
1,501,000 | 1,461,000 | ||||||
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Excess tax benefit from exercise of stock options and SARS |
726,000 | 188,000 | ||||||
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Net cash used in financing activities |
(3,006,000 | ) | (2,151,000 | ) | ||||
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Net decrease in cash and cash equivalents |
(1,512,000 | ) | (2,293,000 | ) | ||||
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Cash and cash equivalents balance, beginning of year |
4,586,000 | 5,316,000 | ||||||
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Cash and cash equivalents balance, end of period |
$ | 3,074,000 | $ | 3,023,000 | ||||
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