• Promotional Products sales up 38 percent
  • Remote Staffing Solutions segment sales up 17 percent
  • Consolidated Net Sales decreased 7 percent

SEMINOLE, Fla., Oct. 23, 2019 (GLOBE NEWSWIRE) -- Superior Group of Companies, Inc. (NASDAQ: SGC), today announced its third quarter operating results for 2019.

The Company announced that for the third quarter ended September 30, 2019, net sales decreased 7.0 percent to $89.5 million, compared to third quarter 2018 net sales of $95.9 million. Pretax Income was $4.6 million compared to $7.3 million in 2018. Net income was $3.9 million or $0.26 per diluted share, compared to $0.39 per diluted share in 2018.  

Michael Benstock, Chief Executive Officer commented “We are very pleased with the performance at BAMKO and The Office Gurus whose businesses continued to grow significantly in very competitive environments. Uniform segment sales were down between comparable periods, largely the result of initiatives taken by the company to reduce merchandise levels, resulting in fewer receipts, and lower revenues based upon current revenue recognition standards.  Also during the quarter we experienced sales disruption at CID caused by a warehouse system implementation. On an overall basis, we made good progress and remain on schedule on our ERP integration initiatives intended to align infrastructure, support enterprise growth and value creation for all stakeholders” concluded Mr. Benstock.

CONFERENCE CALL

Superior Group of Companies will hold a conference call on Wednesday, October 23, 2019 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 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 www.superiorgroupofcompanies.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 November 6, 2019. 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 10135411 for all replay access.

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 customers unlock the power of their brands by creating extraordinary brand experiences for employees and customers. It provides customized support for each of its divisions through its shared services model.

Fashion Seal Healthcare®, HPI and CID Resources are signature uniform brands of Superior Group of Companies. Each is one of America’s leading providers of uniforms and image apparel in the markets it serves. They specialize in innovative uniform program design, global manufacturing, and state-of-the-art distribution. Every day, more than 6 million Americans go to work wearing a uniform from Superior Group of Companies.

BAMKO®, Tangerine Promotions® and Public Identity® are signature promotional products and branded merchandise brands of Superior Group of Companies. They 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 its customers in order to accelerate their growth and improve their customers’ service experiences.

SGC’s commitment to service, technology, quality and value-added benefits, as well as its financial strength and resources, provides unparalleled support for its customers’ diverse needs while embracing a “Customer 1st, Every Time!” philosophy and culture in all of its business segments.

Visit www.superiorgroupofcompanies.com for more information.

Contact:
Michael Attinella
Chief Financial Officer & Treasurer
(727) 803-7170

OR

Hala Elsherbini
Halliburton Investor Relations
(972) 458-8000

Comparative figures are as follows:

 SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    
Three Months Ended September 30,
(Unaudited)
(In thousands, except shares and per share data)
    
  2019   2018
    
Net sales$89,466 $95,870
    
Costs and expenses:   
Cost of goods sold 58,015  62,070
Selling and administrative expenses 25,260  25,482
Other periodic pension costs 476  96
Interest expense 1,085  940
  84,836  88,588
Income before taxes on income 4,630  7,282
Income tax expense 709  1,160
Net income$3,921 $6,122
    
Net income per share:   
Basic$0.26 $0.41
Diluted$0.26 $0.39
    
Weighted average number of shares outstanding during the period   
Basic 14,947,552  15,010,660
Diluted 15,266,850  15,499,894
    
Cash dividends per common share$0.10 $0.10
    


SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    
Nine Months Ended September 30,
(Unaudited)
(In thousands, except shares and per share data)
    
  2019   2018
    
Net sales$268,288 $251,349
    
Costs and expenses:   
Cost of goods sold 174,226  163,396
Selling and administrative expenses 78,008  69,991
Other periodic pension costs 1,282  289
Interest expense 3,514  1,974
  257,030  235,650
Income before taxes on income 11,258  15,699
Income tax expense 2,180  3,310
Net income$9,078 $12,389
    
Net income per share:   
Basic$0.61 $0.83
Diluted$0.59 $0.80
    
Weighted average number of shares outstanding during the period   
Basic 14,942,565  14,929,513
Diluted 15,272,287  15,505,642
    
Cash dividends per common share$0.30 $0.29
    


SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and par value data)
    
    
 September 30, December 31,
  2019   2018 
    
ASSETS
Current assets:   
Cash and cash equivalents$5,452  $5,362 
Accounts receivable, less allowance for doubtful accounts of $2,259 and $2,042, respectively 75,597   64,017 
Accounts receivable - other 1,262   1,744 
Inventories 66,076   67,301 
Contract assets 38,030   49,236 
Prepaid expenses and other current assets 16,481   9,552 
Total current assets 202,898   197,212 
    
Property, plant and equipment, net 31,725   28,769 
Operating lease right-of-use assets 4,576   - 
Intangible assets, net 63,491   66,312 
Goodwill 36,252   33,961 
Other assets 10,443   8,832 
Total assets$349,385  $335,086 
    
LIABILITIES AND SHAREHOLDERS’ EQUITY
    
Current liabilities:   
Accounts payable$30,768  $24,685 
Other current liabilities 16,110   14,767 
Current portion of long-term debt 15,286   6,000 
Current portion of acquisition-related contingent liabilities 1,374   941 
Total current liabilities 63,538   46,393 
    
Long-term debt 103,812   111,522 
Long-term pension liability 8,422   8,705 
Long-term acquisition-related contingent liabilities 3,753   5,422 
Long-term operating lease liabilities 2,590   - 
Deferred tax liability 6,620   8,475 
Other long-term liabilities 4,230   3,648 
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 15,240,317 and 15,202,387 shares, respectively.
 15    15 
Additional paid-in capital 57,077    55,859 
Retained earnings 106,426    103,032 
Accumulated other comprehensive income (loss), net of tax:   
Pensions (6,475)  (7,673)
Cash flow hedges   97    113 
Foreign currency translation adjustment   (720)  (425)
Total shareholders’ equity 156,420    150,921 
Total liabilities and shareholders’ equity$349,385   $335,086 
    


SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30,
(Unaudited)
(In thousands)
    
    
  2019   2018 
    
CASH FLOWS FROM OPERATING ACTIVITIES   
Net income$9,078  $12,389 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization 6,339   5,745 
Provision for bad debts - accounts receivable 719   409 
Share-based compensation expense 997   1,867 
Deferred income tax benefit (2,136)  (278)
Gain on sale of property, plant and equipment (5)  - 
Change in fair value of acquisition-related contingent liabilities (272)  (1,212)
Changes in assets and liabilities, net of acquisition of business:   
Accounts receivable - trade (12,251)  (5,542)
Accounts receivable - other 481   (401)
Contract assets 11,206   (3,779)
Inventories (595)  5,742 
Prepaid expenses and other current assets (7,051)  (226)
Other assets (2,233)  (2,343)
Accounts payable and other current liabilities 5,523   (1,077)
Long-term pension liability 1,292   292 
Other long-term liabilities 750   (283)
Net cash provided by operating activities 11,842   11,303 
    
CASH FLOWS FROM INVESTING ACTIVITIES   
Additions to property, plant and equipment (6,424)  (3,881)
Proceeds from disposals of property, plant and equipment 5   - 
Acquisition of businesses, net of acquired cash -   (85,597)
Net cash used in investing activities (6,419)  (89,478)
    
CASH FLOWS FROM FINANCING ACTIVITIES   
Proceeds from borrowings of debt 125,121   170,713 
Repayment of debt (123,600)  (91,423)
Payment of cash dividends (4,533)  (4,335)
Payment of acquisition-related contingent liability (961)  (3,032)
Proceeds received on exercise of stock options 283   432 
Tax benefit from vesting of acquisition-related restricted stock 30   445 
Tax withholding on exercise of stock rights -   (17)
Common stock reacquired and retired (1,243)  (268)
Net cash provided by (used in) financing activities (4,903)  72,515 
    
Effect of currency exchange rates on cash (430)  (174)
Net increase (decrease) in cash and cash equivalents 90   (5,834)
Cash and cash equivalents balance, beginning of year 5,362   8,130 
Cash and cash equivalents balance, end of period$5,452  $2,296