EX-99.1 3 dex991.htm PRESS RELEASE PRESS RELEASE

Exhibit 99.1

 

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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

   

                (727) 803-7135

  FOR IMMEDIATE RELEASE

 

SUPERIOR UNIFORM GROUP, INC. ANNOUNCES YEAR-END OPERATING RESULTS

 

SEMINOLE, Florida - February 25, 2004 – Superior Uniform Group, Inc. (AMEX: SGC), one of the nation’s largest manufacturers of uniforms, career apparel and accessories, announced today its fourth quarter and year-end operating results for 2003.

 

The Company announced that for the year ended December 31, 2003, sales were $134,324,365 compared to 2002 sales of $144,999,254. Net income for the year ended December 31, 2003 was $5,703,910 or $.78 per share (diluted) compared to $593,085 or $.08 per share (diluted) reported for the year ended December 31, 2002.

 

Net income for the year ended December 31, 2002 includes a $4.5 million, non-cash charge reflected as a cumulative effect of change in accounting principle, net of tax in accordance with the Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets.”

 

Mr. Gerald M. Benstock, Chairman of the Board, stated, “Although we continue to operate in an extremely competitive yet weak business climate in all of our major markets, we are gratified to report a 12% increase in earnings before cumulative effect of change in accounting principle and a 10% increase in diluted earnings per share before cumulative effect of change in accounting principle. Our working capital management has continued to improve and we were able to generate in excess of $13 million from operations in the current year. We anticipate that 2004 will be a roller coaster year for the economy with

 

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the upcoming elections, as well as the continued threat of terrorism. We have all been reading about the “jobless recovery” in the economy and our business will only experience stronger recovery when employment numbers begin to rebound. In spite of this, we feel optimistic about the Company’s prospects for 2004.”

 

Superior Uniform Group, through its marketing divisions – Fashion Seal Uniforms®, Martin’s®, Empire®, Fashion Seal Hospitality, 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 for 2003 are as follows:

 

Superior Uniform Group, Inc. and Subsidiary

Consolidated Summary of Operations

 

    

Three Months Ended

December 31,


     2003

   2002

Net sales

   $ 33,969,584    $ 36,234,148
    

  

Costs and expenses:

             

Cost of goods sold

     21,585,814      23,762,338

Selling and administrative expenses

     9,417,065      9,737,605

Interest expense

     171,933      178,425
    

  

       31,174,812      33,678,368
    

  

Earnings before taxes on income

     2,794,772      2,555,780

Taxes on income

     990,000      950,000
    

  

Net earnings

   $ 1,804,772    $ 1,605,780
    

  

Basic net earnings per common share

   $ 0.25    $ 0.23
    

  

Diluted net earnings per common share

   $ 0.24    $ 0.22
    

  

Dividends per common share

   $ 0.135    $ 0.135
    

  

 

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Superior Uniform Group, Inc. and Subsidiary

Consolidated Summary of Operations

 

    

Twelve Months Ended

December 31,


 
     2003

   2002

 

Net sales

   $ 134,324,365    $ 144,999,254  
    

  


Costs and expenses:

               

Cost of goods sold

     86,207,906      95,221,013  

Selling and administrative expenses

     38,616,045      40,932,512  

Interest expense

     696,504      853,081  
    

  


       125,520,455      137,006,606  
    

  


Earnings before taxes on income, and cumulative effect of change in accounting principle

     8,803,910      7,992,648  

Taxes on income

     3,100,000      2,895,000  
    

  


Earnings before cumulative effect of change in accounting principle

     5,703,910      5,097,648  

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

     —        (4,504,563 )
    

  


Net earnings

   $ 5,703,910    $ 593,085  
    

  


Basic net earnings per common share:

               

Earnings before cumulative effect of change in accounting principle

   $ 0.79    $ 0.72  

Cumulative effect of change in accounting principle, net of tax

     —        (0.64 )
    

  


Basic net earnings per common share

   $ 0.79    $ 0.08  
    

  


Diluted net earnings per common share:

               

Earnings before extraordinary item and cumulative effect of change in accounting principle

   $ 0.78    $ 0.71  

Cumulative effect of change in accounting principle, net of tax

     —        (0.63 )
    

  


Diluted net earnings per common share

   $ 0.78    $ 0.08  
    

  


Dividends per common share

   $ 0.54    $ 0.54  
    

  


 

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Superior Uniform Group, Inc. and Subsidiary

 

Consolidated Balance Sheets

December 31,

 

     2003

    2002

 

ASSETS

                

CURRENT ASSETS

                

Cash and cash equivalents

   $ 14,915,079     $ 7,470,719  

Accounts receivable, less allowance for doubtful accounts of $475,000 and $565,000, respectively

     24,419,287       20,413,202  

Inventories

     36,380,470       42,655,934  

Prepaid expenses and other current assets

     2,156,065       3,270,339  
    


 


TOTAL CURRENT ASSETS

     77,870,901       73,810,194  

PROPERTY, PLANT AND EQUIPMENT, NET

     18,289,436       20,059,164  

GOODWILL

     741,929       741,929  

OTHER ASSETS

     6,071,667       5,215,665  
    


 


     $ 102,973,933     $ 99,826,952  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY

                

CURRENT LIABILITIES

                

Accounts payable

   $ 5,400,401     $ 5,191,993  

Accrued expenses

     5,078,982       5,825,422  

Current portion of long-term debt

     1,179,021       1,104,080  
    


 


TOTAL CURRENT LIABILITIES

     11,658,404       12,121,495  

LONG-TERM DEBT

     6,266,047       7,445,068  

DEFERRED INCOME TAXES

     165,000       150,000  

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 - 7,370,612 and 7,131,237, respectively.

     7,371       7,131  

Additional paid-in capital

     13,641,223       10,620,073  

Retained earnings

     71,883,888       70,387,185  

Other comprehensive income (loss):

                

Cash flow hedges

     (648,000 )     (904,000 )
    


 


TOTAL SHAREHOLDERS’ EQUITY

     84,884,482       80,110,389  
    


 


     $ 102,973,933     $ 99,826,952