Superior Uniform Group, Inc. Reports First Quarter Operating Results


  • Net sales increase 25.1 percent
  • Net sales increase 16.9 percent excluding net sales from BAMKO
  • EPS (Diluted) increases over 7.1 percent
  • EPS (Diluted) increases over 35.7 percent, excluding $0.9 million in pre-tax BAMKO acquisition related expenses

SEMINOLE, Fla., April 28, 2016 (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, 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  
         

            

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