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Superior Uniform Group, Inc. Reports Operating Results for 2014

  • Net Sales Increase 29.5% with 18.2% Organic Growth
  • Net Income Increases over 90%
  • Earnings per share (Diluted) Increases 78.3%

SEMINOLE, Fla., Feb. 26, 2015 (GLOBE NEWSWIRE) -- Superior Uniform Group, Inc. (Nasdaq:SGC), manufacturer of uniforms, image apparel and accessories, today announced its fourth quarter and year-end operating results for 2014.

The Company announced that for the year ended December 31, 2014, net sales increased 29.5% to $196.2 million, compared to 2013 net sales of $151.5 million. Net income for the year ended December 31, 2014 was $11.3 million, or $0.82 per share (diluted), compared to $5.9 million, or $0.46 per share (diluted), reported for the year ended December 31, 2013.

Net income for the fourth quarter ended December 31, 2014 was $2.9 million, or $0.20 per share (diluted), compared to net income of $1.7 million or $0.13 per share (diluted) reported for the fourth quarter ended December 31, 2013.

Michael Benstock, chief executive officer, commented: "We are very pleased to report that we had a very strong finish to a transformational year for our company. We reported phenomenal results, including two record quarters, and strengthened our business model. Net sales increased 29.5% in 2014 and, while the inclusion of HPI's operating results for the full year in 2014 versus only six months in 2013 contributed $17.1 million, or 11.3% of this growth, organic growth in both of our operating segments contributed 18.2% of growth. HPI and the balance of our Uniforms and Related Products segment made significant inroads in taking additional market share in 2014. Additionally, we've made significant progress on our long-term growth strategies in place at both operating segments. Our diverse business segments offer services for which there is a growing demand. We maintain a strong competitive position from a cost efficient platform and are able to generate solid margins with potential for upside leverage.

"Favorable market and economic trends are driving forward momentum. While we don't provide specific guidance, we currently expect our uniform segment will exceed our organic growth rate of approximately 6 percent per year, which represents our historical growth rate for the last several years prior to the HPI acquisition. Our Remote Staffing Solutions vertical should continue to post significant growth at the same dollar levels generated in the past few years. Overall, on a consolidated basis, we expect average organic growth in excess of 8 percent per year over the next three to five years. Additionally, we are aggressively seeking acquisitions with high-growth potential.

"We have evolved while maintaining the same entrepreneurial spirit our 95-year heritage was built upon. Our management team and entire workforce are highly motivated to reach the next level of growth and drive optimum results, strengthen the company's enterprise value, and create long-term value for our shareholders."

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 for 2014 and 2013 are as follows:

Superior Uniform Group, Inc. and Subsidiaries
Consolidated Statements of Income
Three Months Ended December 31,
(Unaudited)
2014 2013
Net sales $ 49,701,000 $ 45,473,000
Costs and expenses:
Cost of goods sold 32,459,000 30,446,000
Selling and administrative expenses 12,494,000 12,397,000
Interest expense 132,000 85,000
45,085,000 42,928,000
Income before taxes on income 4,616,000 2,545,000
Income tax expense 1,760,000 870,000
Net income $ 2,856,000 $ 1,675,000
Per Share Data:
Basic:
Net income $ 0.21 $ 0.13
Diluted:
Net income $ 0.20 $ 0.13
Cash dividends per common share $ 0.075 $ 0.068
Superior Uniform Group, Inc. and Subsidiaries
Consolidated Statements of Income
Years Ended December 31,
2014 2013
Net sales $ 196,249,000 $ 151,496,000
Costs and expenses:
Cost of goods sold 127,512,000 98,938,000
Selling and administrative expenses 50,724,000 43,873,000
Interest expense 484,000 195,000
178,720,000 143,006,000
Income before taxes on income 17,529,000 8,490,000
Income tax expense 6,180,000 2,640,000
Net income $ 11,349,000 $ 5,850,000
Per Share Data:
Basic:
Net income $ 0.85 $ 0.47
Diluted:
Net income $ 0.82 $ 0.46
Cash dividends per common share $ 0.285 $ 0.068
Superior Uniform Group, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31,
ASSETS
2014 2013
CURRENT ASSETS
Cash and cash equivalents $ 4,586,000 $ 5,316,000
Accounts receivable, less allowance for doubtful accounts
of $680,000 and $560,000, respectively 27,956,000 22,735,000
Accounts receivable - other 4,135,000 4,133,000
Inventories 58,282,000 49,486,000
Prepaid expenses and other current assets 4,497,000 6,012,000
TOTAL CURRENT ASSETS 99,456,000 87,682,000
PROPERTY, PLANT AND EQUIPMENT, NET 16,285,000 13,160,000
OTHER INTANGIBLE ASSETS, NET 16,288,000 18,353,000
GOODWILL 4,135,000 4,135,000
DEFERRED INCOME TAXES 3,636,000 2,009,000
OTHER ASSETS 137,000 155,000
$ 139,937,000 $ 125,494,000
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 9,706,000 $ 8,363,000
Other current liabilities 8,995,000 7,768,000
Current portion of long-term debt 2,375,000 1,750,000
Current portion of acquisition-related contingent liability 1,189,000 --
TOTAL CURRENT LIABILITIES 22,265,000 17,881,000
LONG-TERM DEBT 22,660,000 24,500,000
LONG-TERM PENSION LIABILITY 8,084,000 3,617,000
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITY 5,745,000 6,806,000
OTHER LONG-TERM LIABILITIES 580,000 625,000
DEFERRED INCOME TAXES 191,000 130,000
COMMITMENTS AND CONTINGENCIES
TOTAL SHAREHOLDERS' EQUITY 80,412,000 71,935,000
$ 139,937,000 $ 125,494,000
Superior Uniform Group, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 11,349,000 $ 5,850,000
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 3,839,000 2,582,000
Provision for bad debts - accounts receivable 197,000 161,000
Share-based compensation expense 1,404,000 788,000
Deferred income tax provision (benefit) 1,000 (249,000)
Gain on sale of property, plant and equipment (91,000) (12,000)
Accretion of acquisition-related contingent liability 128,000 63,000
Changes in assets and liabilities, net of acquisition of business:
Accounts receivable - trade (5,418,000) (1,569,000)
Accounts receivable - other (2,000) (1,138,000)
Inventories (8,796,000) 134,000
Prepaid expenses and other current assets 1,515,000 (2,122,000)
Other assets 18,000 27,000
Accounts payable 1,343,000 1,734,000
Other current liabilities 1,180,000 1,781,000
Long-term pension liability 216,000 482,000
Other long-term liabilities (45,000) (111,000)
Net cash provided by operating activities 6,838,000 8,401,000
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (4,936,000) (1,631,000)
Proceeds from disposals of property, plant and equipment 128,000 14,000
Purchase of business -- (32,483,000)
Net cash used in investing activities (4,808,000) (34,100,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt 55,117,000 44,740,000
Repayment of long-term debt (56,332,000) (18,490,000)
Payment of cash dividends (3,663,000) (874,000)
Proceeds received on exercise of stock options 1,855,000 2,216,000
Excess tax benefit from exercise of stock options and SARs 263,000 31,000
Common stock reacquired and retired -- (162,000)
Net cash (used in) provided by financing activities (2,760,000) 27,461,000
Net (decrease) increase in cash and cash equivalents (730,000) 1,762,000
Cash and cash equivalents balance, beginning of year 5,316,000 3,554,000
Cash and cash equivalents balance, end of year $ 4,586,000 $ 5,316,000

CONTACT: Andrew D. Demott, Jr., CFO (727) 803-7135 OR Hala Elsherbini, Halliburton Investor Relations (972) 458-8000Source:Superior Uniform Group, Inc.