EX-99.1 3 dex991.htm PRESS RELEASE DATED JULY 24, 2003 Press Release dated July 24, 2003

EXHIBIT 99.1

 

[SUPERIOR UNIFORM GROUP, INC. LOGO]

 

NEWS RELEASE

 

Superior Uniform Group, Inc.

An American Stock Exchange Listed Company

10055 Seminole Boulevard

Seminole, Florida 33772-2539

Telephone (727) 397-9611

Fax (727) 803-9623

 

Contact: Andrew D. Demott, Jr., CFO  

FOR IMMEDIATE RELEASE

(727) 803-7135    

 

 

SUPERIOR UNIFORM GROUP REPORTS SECOND QUARTER RESULTS

 

SEMINOLE, Florida—July 24, 2003 – Superior Uniform Group, Inc., (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2003, sales were $34,187,586 compared with 2002 second quarter sales of $38,442,104. Net income was $1,283,065 or $.18 per share (diluted), compared with net income of $1,489,494 or $.21 per share (diluted) in the 2002 second quarter.

 

For the six months ended June 30, 2003, sales were $65,142,533, compared with sales of $72,090,330 in the six months ended June 30, 2002. Income before cumulative effect of change in accounting principle for the six months ended June 30, 2003 was $1,909,251 or $0.26 per share (diluted), compared to $1,910,985 or $0.27 per share (diluted) reported in the first six months of 2002. Net income for the six months ended June 30, 2003 was $1,909,251 or $0.26 per common share (diluted) versus a net loss of $2,593,578 or $.36 per common share (diluted) in the first six months of 2002.

 

Gerald M. Benstock, Chairman and C.E.O., commented: “As the economy remains sluggish and our customers continue to limit hiring and spending, and employee turnover remains very low, our sales have continued to be negatively affected. As a result, our sales declined 11% in the current quarter. We are upgrading our sales force and are aggressively pursuing new sales opportunities despite the weak economic conditions and are poised to capitalize when the economy does rebound. We are working to upgrade our management team and continue to actively review our corporate cost structure. We have further improved our gross margins in the current quarter through improved sourcing and are in an excellent position to provide competitively priced product

 

 

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to the market. Our financial condition is extremely strong and allows us to continue to invest in our business despite the severe economic conditions. We continue to generate significant cash from operations and have reduced our outstanding debt below our cash balance at the end of the current quarter.”

 

Superior Uniform Group, through its marketing divisions – Fashion Seal Uniforms, Martin’s, Empire, Appel, Worklon, Universal, and Sope Creek – manufactures and sells a wide range of uniforms, corporate I.D., career apparel and accessories for the hospital and healthcare fields; hotels; fast food and other restaurants; and public safety, industrial, transportation and commercial markets, as well as corporate and resort embroidered sportswear.

 

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 SUBSIDIARY
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS

(Unaudited)

 

     Three Months Ended June 30,

     2003

   2002

Net sales

   $ 34,187,586    $ 38,442,104
    

  

Costs and expenses:

             

Cost of goods sold

     22,036,004      25,256,461

Selling and administrative expenses

     9,987,399      10,653,193

Interest expense

     181,118      192,956
    

  

       32,204,521      36,102,610
    

  

Earnings before taxes on income

     1,983,065      2,339,494

Taxes on income

     700,000      850,000
    

  

Net earnings

   $ 1,283,065    $ 1,489,494
    

  

Basic net earnings per common share

   $ 0.18    $ 0.21
    

  

Diluted net earnings per common share

   $ 0.18    $ 0.21
    

  

Dividends per common share

   $ 0.135    $ 0.135
    

  

 

 

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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY                
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS                

(Unaudited)

 

               
     Six Months Ended June 30,

 
     2003

   2002

 

Net sales

   $ 65,142,533    $ 72,090,330  
    

  


Costs and expenses:

               

Cost of goods sold

     42,051,459      47,363,346  

Selling and administrative expenses

     19,790,064      21,233,239  

Interest expense

     351,759      487,760  
    

  


       62,193,282      69,084,345  
    

  


Earnings before taxes on income and cumulativeeffect of change in accounting principle

     2,949,251      3,005,985  

Taxes on income

     1,040,000      1,095,000  
    

  


Earnings before cumulative effect of change in accounting principle

     1,909,251      1,910,985  

Cumulative effect of change in accounting principle, net of tax benefit of $2,560,000

     —        (4,504,563 )

Net earnings (loss)

   $ 1,909,251    $ (2,593,578 )
    

  


Basic earnings (loss) per common share before cumulative effect of change in accounting principle

   $ 0.27    $ 0.27  

Cumulative effect of change in accounting principle, net of tax

     —        (0.64 )
    

  


Basic net earnings (loss) per common share

   $ 0.27    $ (0.37 )
    

  


Diluted earnings (loss) per common share before cumulative effect of change in accounting principle

   $ 0.26    $ 0.27  

Cumulative effect of change in accounting principle, net of tax

     —        (0.63 )
    

  


Diluted net earnings (loss) per common share

   $ 0.26    $ (0.36 )
    

  


Dividends per common share

   $ 0.27    $ 0.27  
    

  


 

 

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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY   
  
  
  
CONSOLIDATED BALANCE SHEETS
JUNE 30,

(Unaudited)

 

ASSETS
     2003

    2002

 

CURRENT ASSETS

                

Cash and cash equivalents

   $ 9,668,710     $ 3,374,941  

Accounts receivable and other current assets

     23,104,081       26,213,673  

Inventories

     40,445,414       42,824,277  
    


 


TOTAL CURRENT ASSETS

     73,218,205       72,412,891  

PROPERTY, PLANT AND EQUIPMENT, NET

     19,160,200       21,585,597  

GOODWILL

     741,929       741,929  

OTHER ASSETS

     5,434,661       3,655,131  

DEFERRED INCOME TAXES

     —         950,000  
    


 


     $ 98,554,995     $ 99,345,548  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY        

CURRENT LIABILITIES

                

Accounts payable

   $ 4,797,176     $ 5,401,108  

Other current liabilities

     5,660,088       6,325,170  

Current portion of long-term debt

     1,140,809       1,067,293  
    


 


TOTAL CURRENT LIABILITIES

     11,598,073       12,793,571  

LONG-TERM DEBT

     6,865,679       8,006,488  

DEFERRED INCOME TAXES

     10,000       —    

SHAREHOLDERS’ EQUITY:

                

Preferred stock, $1 par value—authorized 300,000 shares (none issued)

                

Common stock, $.001 par value—authorized 50,000,000 shares; issued and outstanding 7,138,762 and 7,080,012, respectively

  

 

7,139

 

 

 

7,080

 

Additional paid-in capital

     10,941,231       10,058,065  

Retained earnings

     70,053,873       69,270,536  

Cumulative Comprehensive Income (Loss)

     (921,000 )     (790,192 )
    


 


TOTAL SHAREHOLDERS’ EQUITY

     80,081,243       78,545,489  
    


 


     $ 98,554,995     $ 99,345,548  
    


 


 

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