EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

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 ANNOUNCES EARNINGS

FOR THE QUARTER ENDED SEPTEMBER 30, 2004

 

SEMINOLE, Florida - October 25, 2004 - Superior Uniform Group, Inc. (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the third quarter ended September 30, 2004, sales were $36,960,340 compared with 2003 third quarter sales of $36,016,237. Net income was $1,803,113 or $.24 per common share (diluted), compared with net income of $1,989,887 or $.27 per common share (diluted) in the 2003 third quarter.

 

For the nine months ended September 30, 2004, sales were $106,125,651, compared with sales of $102,559,641 in the nine months ended September 30, 2003. Net earnings for the nine months ended September 30, 2004 were $4,210,914 or $.55 per common share (diluted) versus net earnings of $3,899,138 or $.53 per common share (diluted) in the first nine months of 2003.

 

Michael Benstock, Chief Executive Officer, commented: “The increase in revenues for the quarter resulted from the first quarter acquisition of UniVogue and increasing revenues from new national accounts landed over the previous year, offset by continued soft demand from our existing customer base. Earnings for the quarter continued to be negatively impacted by the costs associated with our efforts to prepare for compliance with Section 404 of the Sarbanes-Oxley Act. We incurred an additional $272,000 in pre-tax costs for outside consultants to assist in this process during the third quarter of 2004. While this phase of the project is now winding down, we will continue to incur increased costs in this area. We are optimistic that the investments we have made, and will continue to make, in our sales and marketing management team over the previous year will begin to show positive results in our sales and earnings as the economy improves.”

 

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Superior Uniform Group, through its marketing brands – Fashion Seal®, Fashion Seal Healthcare Martin’s®, Empire®, Fashion Seal Hospitality, Worklon®, Universal®, Sope Creek® and UniVogue – 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 September 30,

     2004

   2003

Net sales

   $ 36,960,340    $ 36,016,237
    

  

Costs and expenses:

             

Cost of goods sold

     24,509,825      23,706,890

Selling and administrative expenses

     9,530,370      9,076,648

Interest expense

     157,032      172,812
    

  

       34,197,227      32,956,350
    

  

Earnings before taxes on income

     2,763,113      3,059,887

Taxes on income

     960,000      1,070,000
    

  

Net earnings

   $ 1,803,113    $ 1,989,887
    

  

Weighted average number of shares outstanding during the period

     7,464,850 Shs.      7,225,470 Shs.

(Basic)

             

(Diluted)

     7,592,817 Shs.      7,407,808 Shs.

Basic net earnings per common share

   $ 0.24    $ 0.28
    

  

Diluted net earnings per common share

   $ 0.24    $ 0.27
    

  

Dividends per common share

   $ 0.135    $ 0.135
    

  

 

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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS

(Continued)

(Unaudited)

     Nine Months Ended September 30,

     2004

   2003

Net sales

   $ 106,125,651    $ 102,559,641
    

  

Costs and expenses:

             

Cost of goods sold

     70,877,302      67,708,746

Selling and administrative expenses

     28,325,765      28,317,186

Interest expense

     471,670      524,571
    

  

       99,674,737      96,550,503
    

  

Earnings before taxes on income

     6,450,914      6,009,138

Taxes on income

     2,240,000      2,110,000
    

  

Net earnings

   $ 4,210,914    $ 3,899,138
    

  

Weighted average number of shares outstanding during the period

             

(Basic)

     7,434,006 Shs.      7,171,451 Shs.

(Diluted)

     7,605,264 Shs.      7,298,633 Shs.

Basic net earnings per common share

   $ 0.57    $ 0.54
    

  

Diluted net earnings per common share

   $ 0.55    $ 0.53
    

  

Dividends per common share

   $ 0.405    $ 0.405
    

  

 

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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

 

ASSETS

 

(Unaudited)

 

     September 30,
2004


    September 30,
2003


 

CURRENT ASSETS:

                

Cash and cash equivalents

   $ 4,366,795     $ 13,639,339  

Accounts receivable and other current assets

     30,316,483       24,084,048  

Inventories

     40,196,662       37,007,165  
    


 


TOTAL CURRENT ASSETS

     74,879,940       74,730,552  

PROPERTY, PLANT AND EQUIPMENT, NET

     22,477,591       18,462,546  

GOODWILL

     1,615,512       741,929  

OTHER INTANGIBLE ASSETS

     1,567,878       —    

OTHER ASSETS

     6,405,527       5,709,611  
    


 


     $ 106,946,448     $ 99,644,638  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY

 

CURRENT LIABILITIES:

                

Accounts payable

   $ 8,549,358     $ 4,269,996  

Accrued expenses

     3,122,189       4,897,261  

Current portion of long-term debt

     1,466,328       1,160,523  
    


 


TOTAL CURRENT LIABILITIES

     13,137,875       10,327,780  

LONG-TERM DEBT

     6,093,047       6,569,046  

DEFERRED INCOME TAXES

     365,000       115,000  

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 7,465,712 and 7,282,362, respectively

     7,466       7,282  

Additional paid-in capital

     14,800,962       12,326,136  

Retained earnings

     72,962,098       71,071,394  

Cumulative Comprehensive Loss

     (420,000 )     (772,000 )
    


 


TOTAL SHAREHOLDERS’ EQUITY

     87,350,526       82,632,812  
    


 


     $ 106,946,448     $ 99,644,638  
    


 


 

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