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Superior Uniform Group Reports Second Quarter 2014 Operating Results

  • Net Sales Increase 72.5%
  • Record Earnings Per Share (Diluted) of $0.57 for the Quarter compared to $0.23 in the Same Quarter of 2013
  • HPI Reports Net Sales of $17.6 million, an Increase of 93.6%
  • The Office Gurus Reports Net Sales Increase of 47.2%

SEMINOLE, Fla., July 23, 2014 (GLOBE NEWSWIRE) -- Superior Uniform Group, Inc. (Nasdaq:SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2014, sales were $53.2 million, compared with 2013 second quarter sales of $30.9 million. Net earnings were $3.9 million, or $0.57 per share (diluted), compared with earnings of $1.4 million, or $0.23 per share (diluted), in the 2013 second quarter.

For the six months ended June 30, 2014, sales were $94.3 million, compared with sales of $61.8 million in the six months ended June 30, 2013. Net earnings for the six months ended June 30, 2014 were $5.1 million, or $0.75 per share (diluted), versus earnings of $2.7 million, or $0.43 per share (diluted), in the first six months of 2013.

Michael Benstock, chief executive officer, commented: "We are very pleased to report record earnings per share (diluted) in the current quarter of $0.57. Second quarter results exceeded our expectations, and we continue to be impressed by the strong performance of HPI since the acquisition in July 2013. HPI contributed $17.6 million to second quarter net sales in our Uniforms and Related Products segment. The balance of our Uniforms and Related Products segment contributed an increase in net sales of $4.2 million, or 14.3%. Our Uniforms and Related Products segment, including HPI, had shipments of significant new programs with both a transportation customer and a large supermarket customer, which combined accounted for over $7 million of our increase in net sales.

"Obviously, several factors came together and were well aligned at the same time in order for us to deliver stellar results of this magnitude. While this level of earnings is not to be expected each quarter, our overall backlog in the Uniforms and Related Products segment remains very strong and we expect to continue to report strong earnings in this segment as we move forward.

"Our Remote Staffing Solutions segment continues to report meaningful growth in net sales as the market response has been very favorable to our service offerings and we believe there is room for us to continue to grow this business substantially.

"Our financial position remains very strong and coupled with an improving market position, we believe we can meet the demands of significant growth opportunities that lie ahead in all of our business segments."

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 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.

Comparative figures are as follows:

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED JUNE 30,
(Unaudited)
2014 2013
Net sales $ 53,230,000 $ 30,854,000
Costs and expenses:
Cost of goods sold 34,224,000 19,676,000
Selling and administrative expenses 13,026,000 9,102,000
Interest expense 113,000 8,000
47,363,000 28,786,000
Income before taxes on income 5,867,000 2,068,000
Income tax expense 1,960,000 630,000
Net income $ 3,907,000 $ 1,438,000
Per Share Data:
Basic:
Net income $ 0.59 $ 0.23
Diluted:
Net income $ 0.57 $ 0.23
Cash dividends per common share $ 0.135 $ 0.00
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30,
(Unaudited)
2014 2013
Net sales $ 94,257,000 $ 61,839,000
Costs and expenses:
Cost of goods sold 61,195,000 39,348,000
Selling and administrative expenses 25,109,000 18,659,000
Interest expense 208,000 15,000
86,512,000 58,022,000
Income before taxes on income 7,745,000 3,817,000
Income tax expense 2,620,000 1,150,000
Net income $ 5,125,000 $ 2,667,000
Per Share Data:
Basic:
Net income $ 0.78 $ 0.44
Diluted:
Net income $ 0.75 $ 0.43
Cash dividends per common share $ 0.27 $ 0.00
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30,
2014 December 31,
(Unaudited) 2013
CURRENT ASSETS:
Cash and cash equivalents $ 5,039,000 $ 5,316,000
Accounts receivable - trade 31,234,000 22,735,000
Accounts receivable - other 3,374,000 4,133,000
Prepaid expenses and other current assets 5,641,000 6,012,000
Inventories 57,273,000 49,486,000
TOTAL CURRENT ASSETS 102,561,000 87,682,000
PROPERTY, PLANT AND EQUIPMENT, NET 13,366,000 13,160,000
OTHER INTANGIBLE ASSETS, NET 17,320,000 18,353,000
GOODWILL 4,135,000 4,135,000
DEFERRED INCOME TAXES 1,795,000 2,009,000
OTHER ASSETS 165,000 155,000
$ 139,342,000 $ 125,494,000
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 8,757,000 $ 8,363,000
Other current liabilities 5,350,000 7,768,000
Current portion of long term debt 2,250,000 1,750,000
TOTAL CURRENT LIABILITIES 16,357,000 17,881,000
LONG-TERM DEBT 34,775,000 24,500,000
LONG-TERM PENSION LIABILITY 3,460,000 3,617,000
ACQUISITION-RELATED CONTINGENT LIABILITY 6,870,000 6,806,000
OTHER LONG-TERM LIABILITIES 665,000 625,000
DEFERRED INCOME TAXES 160,000 130,000
SHAREHOLDERS' EQUITY 77,055,000 71,935,000
$ 139,342,000 $ 125,494,000
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30,
(Unaudited)
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 5,125,000 $ 2,667,000
Adjustments to reconcile net income to net cash provided from (used in) operating activities:
Depreciation and amortization 1,887,000 709,000
Provision for bad debts - accounts receivable 92,000 51,000
Share-based compensation expense 955,000 618,000
Deferred income tax provision (benefit) 230,000 (651,000)
Gain on sales of property, plant and equipment (67,000) (12,000)
Accretion of acquisition-related contingent liability 64,000 --
Changes in assets and liabilities:
Accounts receivable - trade (8,591,000) (606,000)
Accounts receivable - other 759,000 (175,000)
Inventories (7,787,000) (253,000)
Prepaid expenses and other current assets 371,000 (392,000)
Other assets (10,000) 15,000
Accounts payable 394,000 307,000
Other current liabilities (2,521,000) 486,000
Pension liability 5,000 482,000
Other long-term liabilities 40,000 (36,000)
Net cash (used in) provided from operating activities (9,054,000) 3,210,000
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (1,097,000) (965,000)
Disposals of property, plant and equipment 104,000 14,000
Net cash used in investing activities (993,000) (951,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt 35,337,000 14,560,000
Repayment of long-term debt (24,562,000) (9,560,000)
Payment of cash dividends (1,695,000) --
Proceeds received on exercise of stock options 685,000 140,000
Excess tax benefit from exercise of stock options 5,000 --
Net cash provided from financing activities 9,770,000 5,140,000
Net (decrease) increase in cash and cash equivalents (277,000) 7,399,000
Cash and cash equivalents balance, beginning of year 5,316,000 3,554,000
Cash and cash equivalents balance, end of period $ 5,039,000 $ 10,953,000

CONTACT: Superior Uniform Group, Inc. Andrew D. Demott, Jr., CFO (727) 803-7135Source:Superior Uniform Group, Inc.