Superior Uniform Group, Inc. Reports First Quarter Operating Results

  • Net Sales Increase 13.0%
  • Net Income Increases over 67%
  • Earnings per share (Diluted) Increases over 55%

SEMINOLE, Fla., April 22, 2015 (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, 2015, net sales for the 2015 first quarter increased 13.0 percent to $46.3 million compared with 2014 first quarter net sales of $41.0 million. Net income for the 2015 first quarter was $2.0 million or $0.14 per share (diluted) compared with $1.2 million, or $0.09 per share (diluted) reported for the quarter ended March 31, 2014.

Michael Benstock, Chief Executive Officer, commented, "We are very pleased to report a 13 percent increase in our net sales, all from organic growth. We have continued to see positive results from our growth strategies discussed in our year-end earnings release. Market and economic trends remain favorable. We continue to leverage our operating structure with the significant growth in net sales and as a result, we reported a 67.7 percent increase in net income for the first quarter of 2015 as compared to the same period in 2014. Our financial position remains very strong and we remain committed to actively pursuing accretive acquisitions to supplement our strong organic growth in net sales."

CONFERENCE CALL

Superior Uniform Group will hold a conference call on Wednesday, April 22, 2015 at 2:00 p.m. Eastern Time to discuss the Company's results. Interested individuals may join the teleconference by dialing (877) 317-6789 for U.S. dialers and (412) 317-6789 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 April 29, 2015. 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 10062858 for all replay access.

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 are as follows:

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2015
(Unaudited)
2015 2014
Net sales $ 46,347,000 $ 41,027,000
Costs and expenses:
Cost of goods sold 30,551,000 26,971,000
Selling and administrative expenses 12,437,000 12,083,000
Interest expense 136,000 95,000
43,124,000 39,149,000
Income before taxes on income 3,223,000 1,878,000
Income tax expense 1,180,000 660,000
Net income $ 2,043,000 $ 1,218,000
Per Share Data:
Basic:
Net income $ 0.15 $ 0.09
Diluted:
Net income $ 0.14 $ 0.09
Cash dividends per common share $ 0.075 $ 0.068
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2015
(Unaudited)
ASSETS
2015 2014
CURRENT ASSETS:
Cash and cash equivalents $ 5,019,000 $ 4,414,000
Accounts receivable, less allowance for doubtful accounts of $670,000 and $680,000, respectively 27,093,000 23,467,000
Accounts receivable - other 4,570,000 4,811,000
Prepaid expenses and other current assets 6,727,000 7,472,000
Inventories 59,921,000 54,692,000
TOTAL CURRENT ASSETS 103,330,000 94,856,000
PROPERTY, PLANT AND EQUIPMENT, NET 16,743,000 13,521,000
OTHER INTANGIBLE ASSETS, NET 15,771,000 17,837,000
GOODWILL 4,135,000 4,135,000
DEFERRED INCOME TAXES 3,546,000 1,740,000
OTHER ASSETS 139,000 148,000
$ 143,664,000 $ 132,237,000
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 10,848,000 $ 9,839,000
Other current liabilities 6,143,000 3,868,000
Current portion of long-term debt 2,750,000 2,063,000
Current portion of acquisition-related contingent liability 3,155,000 --
TOTAL CURRENT LIABILITIES 22,896,000 15,770,000
LONG-TERM DEBT 25,250,000 31,867,000
LONG-TERM PENSION LIABILITY 8,012,000 3,539,000
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITY 3,812,000 6,838,000
OTHER LONG-TERM LIABILITIES 600,000 645,000
DEFERRED INCOME TAXES 221,000 150,000
SHAREHOLDERS' EQUITY 82,873,000 73,428,000
$ 143,664,000 $ 132,237,000
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31,
(Unaudited)
2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 2,043,000 $ 1,218,000
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization 953,000 938,000
Provision for bad debts - accounts receivable 59,000 53,000
Share-based compensation expense 824,000 827,000
Deferred income tax provision 62,000 276,000
Loss (gain) on sales of property, plant and equipment 12,000 (49,000)
Accretion of acquisition-related contingent liability 33,000 32,000
Changes in assets and liabilities:
Accounts receivable - trade 804,000 (785,000)
Accounts receivable - other (435,000) (678,000)
Inventories (1,639,000) (5,206,000)
Prepaid expenses and other current assets (2,230,000) (1,460,000)
Other assets (2,000) 7,000
Accounts payable 1,142,000 1,476,000
Other current liabilities (2,887,000) (3,929,000)
Long-term pension liability 127,000 3,000
Other long-term liabilities 20,000 20,000
Net cash used in operating activities (1,114,000) (7,257,000)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (906,000) (809,000)
Proceeds from disposals of property, plant and equipment -- 75,000
Net cash used in investing activities (906,000) (734,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt 13,220,000 18,450,000
Repayment of long-term debt (10,255,000) (10,770,000)
Payment of cash dividends (1,000,000) (833,000)
Proceeds received on exercise of stock options 356,000 236,000
Excess tax benefit from exercise of stock options 132,000 6,000
Net cash provided by financing activities 2,453,000 7,089,000
Net increase (decrease) in cash and cash equivalents 433,000 (902,000)
Cash and cash equivalents balance, beginning of year 4,586,000 5,316,000
Cash and cash equivalents balance, end of period $ 5,019,000 $ 4,414,000

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