- Net Sales Increase 13.0%
- Net Income Increases over 67%
- Earnings per share (Diluted) Increases over 55%
SEMINOLE, Fla., April 22, 2015 (GLOBE NEWSWIRE) -- Superior Uniform Group, Inc. (Nasdaq:SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the first quarter ended March 31, 2015, net sales for the 2015 first quarter increased 13.0 percent to $46.3 million compared with 2014 first quarter net sales of $41.0 million. Net income for the 2015 first quarter was $2.0 million or $0.14 per share (diluted) compared with $1.2 million, or $0.09 per share (diluted) reported for the quarter ended March 31, 2014.
Michael Benstock, Chief Executive Officer, commented, "We are very pleased to report a 13 percent increase in our net sales, all from organic growth. We have continued to see positive results from our growth strategies discussed in our year-end earnings release. Market and economic trends remain favorable. We continue to leverage our operating structure with the significant growth in net sales and as a result, we reported a 67.7 percent increase in net income for the first quarter of 2015 as compared to the same period in 2014. Our financial position remains very strong and we remain committed to actively pursuing accretive acquisitions to supplement our strong organic growth in net sales."
CONFERENCE CALL
Superior Uniform Group will hold a conference call on Wednesday, April 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 April 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 10062858 for all replay access.
About Superior Uniform Group, Inc.
Superior Uniform Group® (Nasdaq:SGC), established in 1920, is an award-winning provider of uniform programs, image apparel and promotional products. We provide these products as well as a wide range of value-added services to major corporations and healthcare facilities nationwide. We are leaders in innovative product and program design, global manufacturing and state-of-the-art distribution. Our customers rely on us to provide their employees and customers with an extraordinary experience which helps them to better communicate their brand identity. We provide uniforms for the healthcare, retail, food service, private security, transportation, and hospitality marketplaces.
Superior Uniform Group's commitment to service, quality, value, innovation and social responsibility, combined with our financial strength and global resources enable us to meet and exceed our customers' diverse needs. We sell our products through our signature brands, Superior I.D.™, Fashion Seal Healthcare® and HPI Direct®. Superior Uniform Group is also the parent company of The Office Gurus®, our Business Process Outsourcing and Call 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 are as follows:
| SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF INCOME | ||
| THREE MONTHS ENDED MARCH 31, 2015 | ||
| (Unaudited) | ||
| 2015 | 2014 | |
| Net sales | $ 46,347,000 | $ 41,027,000 |
| Costs and expenses: | ||
| Cost of goods sold | 30,551,000 | 26,971,000 |
| Selling and administrative expenses | 12,437,000 | 12,083,000 |
| Interest expense | 136,000 | 95,000 |
| 43,124,000 | 39,149,000 | |
| Income before taxes on income | 3,223,000 | 1,878,000 |
| Income tax expense | 1,180,000 | 660,000 |
| Net income | $ 2,043,000 | $ 1,218,000 |
| Per Share Data: | ||
| Basic: | ||
| Net income | $ 0.15 | $ 0.09 |
| Diluted: | ||
| Net income | $ 0.14 | $ 0.09 |
| Cash dividends per common share | $ 0.075 | $ 0.068 |
| SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| MARCH 31, 2015 | ||
| (Unaudited) | ||
| ASSETS | ||
| 2015 | 2014 | |
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 5,019,000 | $ 4,414,000 |
| Accounts receivable, less allowance for doubtful accounts of $670,000 and $680,000, respectively | 27,093,000 | 23,467,000 |
| Accounts receivable - other | 4,570,000 | 4,811,000 |
| Prepaid expenses and other current assets | 6,727,000 | 7,472,000 |
| Inventories | 59,921,000 | 54,692,000 |
| TOTAL CURRENT ASSETS | 103,330,000 | 94,856,000 |
| PROPERTY, PLANT AND EQUIPMENT, NET | 16,743,000 | 13,521,000 |
| OTHER INTANGIBLE ASSETS, NET | 15,771,000 | 17,837,000 |
| GOODWILL | 4,135,000 | 4,135,000 |
| DEFERRED INCOME TAXES | 3,546,000 | 1,740,000 |
| OTHER ASSETS | 139,000 | 148,000 |
| $ 143,664,000 | $ 132,237,000 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 10,848,000 | $ 9,839,000 |
| Other current liabilities | 6,143,000 | 3,868,000 |
| Current portion of long-term debt | 2,750,000 | 2,063,000 |
| Current portion of acquisition-related contingent liability | 3,155,000 | -- |
| TOTAL CURRENT LIABILITIES | 22,896,000 | 15,770,000 |
| LONG-TERM DEBT | 25,250,000 | 31,867,000 |
| LONG-TERM PENSION LIABILITY | 8,012,000 | 3,539,000 |
| LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITY | 3,812,000 | 6,838,000 |
| OTHER LONG-TERM LIABILITIES | 600,000 | 645,000 |
| DEFERRED INCOME TAXES | 221,000 | 150,000 |
| SHAREHOLDERS' EQUITY | 82,873,000 | 73,428,000 |
| $ 143,664,000 | $ 132,237,000 | |
| SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| Three Months Ended March 31, | ||
| (Unaudited) | ||
| 2015 | 2014 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income | $ 2,043,000 | $ 1,218,000 |
| Adjustments to reconcile net income to net cash used in operating activities: | ||
| Depreciation and amortization | 953,000 | 938,000 |
| Provision for bad debts - accounts receivable | 59,000 | 53,000 |
| Share-based compensation expense | 824,000 | 827,000 |
| Deferred income tax provision | 62,000 | 276,000 |
| Loss (gain) on sales of property, plant and equipment | 12,000 | (49,000) |
| Accretion of acquisition-related contingent liability | 33,000 | 32,000 |
| Changes in assets and liabilities: | ||
| Accounts receivable - trade | 804,000 | (785,000) |
| Accounts receivable - other | (435,000) | (678,000) |
| Inventories | (1,639,000) | (5,206,000) |
| Prepaid expenses and other current assets | (2,230,000) | (1,460,000) |
| Other assets | (2,000) | 7,000 |
| Accounts payable | 1,142,000 | 1,476,000 |
| Other current liabilities | (2,887,000) | (3,929,000) |
| Long-term pension liability | 127,000 | 3,000 |
| Other long-term liabilities | 20,000 | 20,000 |
| Net cash used in operating activities | (1,114,000) | (7,257,000) |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Additions to property, plant and equipment | (906,000) | (809,000) |
| Proceeds from disposals of property, plant and equipment | -- | 75,000 |
| Net cash used in investing activities | (906,000) | (734,000) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from long-term debt | 13,220,000 | 18,450,000 |
| Repayment of long-term debt | (10,255,000) | (10,770,000) |
| Payment of cash dividends | (1,000,000) | (833,000) |
| Proceeds received on exercise of stock options | 356,000 | 236,000 |
| Excess tax benefit from exercise of stock options | 132,000 | 6,000 |
| Net cash provided by financing activities | 2,453,000 | 7,089,000 |
| Net increase (decrease) in cash and cash equivalents | 433,000 | (902,000) |
| Cash and cash equivalents balance, beginning of year | 4,586,000 | 5,316,000 |
| Cash and cash equivalents balance, end of period | $ 5,019,000 | $ 4,414,000 |