• Fourth quarter net sales up 14.1% and Annual net sales up 8.8%

SEMINOLE, Fla., Feb. 20, 2020 (GLOBE NEWSWIRE) --  Superior Group of Companies, Inc. (NASDAQ: SGC), today announced its fourth quarter and year-end operating results for 2019.

The Company announced that for the year ended December 31, 2019, net sales increased $30.4 million or 8.8% percent to $376.7 million. Pre-tax income was $15.3 million compared to $21.4 million in 2018. Net income for the fiscal year 2019 was $12.1 million, or $0.79 per diluted share, compared to $17.0 million, or $1.10 per diluted share, in 2018.

Net sales for the fourth quarter ended December 31, 2019 were $108.4 million, an increase of 14.1% compared to the 2018 fourth quarter of $95.0 million. Pre-tax income was $4.0 million compared to $5.7 million in the 2018 fourth quarter. Net income for the fourth quarter ended December 31, 2019 was $3.0 million, or $0.20 per diluted share, compared to $4.6 million, or $0.30 per diluted share, reported for the fourth quarter 2018.

Michael Benstock, Chief Executive Officer, commented, “We were pleased with our overall performance in the fourth quarter and 2019 as a whole. Sales at BAMKO, which comprises our Promotional Products Segment, grew 54% for the quarter and 33% for the year, eclipsing $107 million. Sales at The Office Gurus, our Remote Staffing Segment, grew nicely at 17% and 16% for the quarter and year, respectively.  In our Uniform Segment we made significant progress to position ourselves for growth through the appointment of new leadership and re-organizations within our Healthcare and Employee ID businesses; the integration of our ERP system across the segment; expansion of our manufacturing capabilities in Haiti; and initiating the expansion and modernization of our largest automated warehouse facility in Arkansas. We are better positioned than ever with our leadership, teams, systems, infrastructure, expanded product assortment and service lines to meet and exceed our existing customers’ expectations and gain market share.  I’m quite satisfied with our progress in these areas during 2019 and am confident in the overall trajectory of our businesses as we enter 2020.”

CONFERENCE CALL
Superior Group of Companies will hold a conference call on Thursday, February 20, 2020 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 March 5, 2020. 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 10139049 for all replay access.

About Superior Group of Companies, Inc. (SGC):

Superior Group of Companies, formerly Superior Group of Companies, 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  Hala Elsherbini
Chief Financial Officer & Treasurer-OR- Halliburton Investor Relations
(727) 803-7170  (972) 458-8000

Comparative figures are as follows:


SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31,
(In thousands, except shares and per share data)
       
  Years Ended December 31,
   2019  2018  2017
Net sales $ 376,701 $346,350 $266,814
       
Costs and expenses:      
Cost of goods sold  247,772  224,653  170,462
Selling and administrative expenses  107,282  96,710  70,592
Other periodic pension costs  1,962  385  1,224
Interest expense  4,399  3,207  802
   361,415  324,955  243,080
Gain on sale of property, plant and equipment  -  -  1,048
Income before taxes on income  15,286  21,395  24,782
Income tax expense  3,220  4,420  9,760
Net income $ 12,066 $16,975 $15,022
       
Net income per share:      
Basic $ 0.81 $1.14 $1.04
Diluted $ 0.79 $1.10 $0.99
       
Weighted average number of shares outstanding during the period      
Basic  14,945,165  14,937,786  14,510,156
Diluted  15,266,408  15,472,133  15,118,768
       
Cash dividends per common share $ 0.400 $0.390 $0.365
       



SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES 
 CONDENSED CONSOLIDATED BALANCE SHEETS 
YEARS ENDED DECEMBER 31, 
(In thousands, except share and par value data) 
      
  December 31, 
   2019   2018  
ASSETS     
Current assets:     
Cash and cash equivalents $ 9,038  $5,362  
Accounts receivable, less allowance for doubtful accounts of $2,964 and $2,042, respectively  79,746   64,017  
Accounts receivable - other  1,083   1,744  
Inventories  73,379   70,203  
Contract assets  38,533   49,236  
Prepaid expenses and other current assets  9,934   6,650  
Total current assets  211,713   197,212  
Property, plant and equipment, net  32,825   28,769  
Operating lease right-of-use assets  5,445   -  
Intangible assets, net  62,536   66,312  
Goodwill  36,292   33,961  
Other assets  10,122   8,832  
Total assets $ 358,933  $335,086  
      
LIABILITIES AND SHAREHOLDERS’ EQUITY     
Current liabilities:     
Accounts payable $ 33,271  $24,685  
Other current liabilities  18,894   14,767  
Current portion of long-term debt  15,286   6,000  
Current portion of acquisition-related contingent liabilities  1,905   941  
Total current liabilities  69,356   46,393  
Long-term debt  104,003   111,522  
Long-term pension liability  10,253   8,705  
Long-term acquisition-related contingent liabilities  3,423   5,422  
Long-term operating lease liabilities  2,380   -  
Deferred tax liability  7,042   8,475  
Other long-term liabilities  4,922   3,648  
Commitments and contingencies (Note 11)     
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 - 15,227,604 and 15,202,387 shares, respectively.  15   15  
Additional paid-in capital  57,442   55,859  
Retained earnings  107,581   103,032  
Accumulated other comprehensive income (loss), net of tax:     
Pensions  (7,224)  (7,673) 
Cash flow hedges  91   113  
Foreign currency translation adjustment  (351)  (425) 
Total shareholders’ equity  157,554   150,921  
Total liabilities and shareholders’ equity $ 358,933  $335,086  
      



 SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
YEARS ENDED DECEMBER 31, 
(In thousands) 
        
  Years Ended December 31, 
   2019   2018   2017  
CASH FLOWS FROM OPERATING ACTIVITIES       
Net income $ 12,066  $16,975  $15,022  
Adjustments to reconcile net income to net cash provided from operating activities:       
Depreciation and amortization  8,272   7,906   5,653  
Provision for bad debts - accounts receivable  1,323   867   1,002  
Share-based compensation expense  1,484   2,264   1,664  
Deferred income tax (benefit) provision  (1,595)  (665)  5,114  
Gain on disposals of property, plant and equipment  (5)  -   (1,048) 
Change in fair value of acquisition-related contingent liabilities  (74)  (1,116)  (89) 
Changes in assets and liabilities, net of acquisition of businesses:       
Accounts receivable - trade  (17,104)  (4,886)  (4,731) 
Accounts receivable - other  660   105   1,237  
Contract asset  10,703   (3,382)  -  
Inventories  (4,984)  2,429   4,250  
Prepaid expenses and other current assets  (3,479)  2,622   (4,151) 
Other assets  (1,717)  (1,257)  (4,504) 
Accounts payable and other current liabilities  10,904   (1,344)  3,362  
Long-term pension liability  2,138   (128)  (2,577) 
Other long-term liabilities  1,415   (526)  2,523  
Net cash provided from operating activities  20,007   19,864   22,727  
        
CASH FLOWS FROM INVESTING ACTIVITIES       
Additions to property, plant and equipment  (9,672)  (4,869)  (4,248) 
Proceeds from disposals of property, plant and equipment  5   -   2,858  
Acquisition of businesses, net of acquired cash  -   (85,597)  (7,988) 
Net cash used in investing activities  (9,667)  (90,466)  (9,378) 
        
CASH FLOWS FROM FINANCING ACTIVITIES       
Proceeds from long-term debt  165,314   206,025   74,387  
Repayment of long-term debt  (163,645)  (127,439)  (77,573) 
Payment of cash dividends  (6,046)  (5,836)  (5,269) 
Payment of acquisition-related contingent liabilities  (961)  (2,861)  (1,800) 
Proceeds received on exercise of stock options  283   727   1,872  
Tax benefit from vesting of acquisition related restricted stock  30   445   650  
Tax withholdings on exercise of stock rights  -   (17)  (1,186) 
Common stock reacquired and retired  (1,685)  (2,906)  -  
Net cash provided from (used in) financing activities  (6,710)  68,138   (8,919) 
        
Effect of exchange rates on cash  46   (304)  51  
Net increase (decrease) in cash and cash equivalents  3,676   (2,768)  4,481  
Cash and cash equivalents balance, beginning of year  5,362   8,130   3,649  
Cash and cash equivalents balance, end of year $ 9,038  $5,362  $8,130