EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

NEWS RELEASE   LOGO
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 FIRST QUARTER EARNINGS

 

SEMINOLE, Florida - April 22, 2005 – Michael Benstock, Chief Executive Officer of Superior Uniform Group, Inc. (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the first quarter ended March 31, 2005, sales were $31,857,089 compared with 2004 first quarter sales of $33,765,220. Net earnings were $139,443 or $.02 per share (diluted) compared to 2004 first quarter earnings of $1,130,468 or $.15 per share (diluted).

 

In making the earnings announcement, Mr. Benstock stated: “Our revenues and earnings were significantly affected by the January implementation of our new Warehouse Management System. Revenues were down approximately $1.9 million or 6% as compared to the first quarter of 2004. During the latter half of January and through the month of February, we experienced significant difficulty in shipping customer orders. As a result, sales for the first two months of the quarter were down approximately $2.8 million. We continue to improve the operating efficiency of the system and were able to make up approximately $900,000 in revenues during the month of March as compared to the prior year month. Our backlog of open orders at the end of the first quarter was approximately $7.5 million as compared to $6.0 million for the same period last year. Earnings were significantly impacted as a result of the decline in revenues and as a result of approximately $375,000 of increased overtime required to process orders during the quarter ended March 31, 2005. While the system is not yet operating at peak performance levels, we are seeing decreases in the overtime requirements and increasing revenue levels.”

 

Superior Uniform Group, through its Signature marketing brands – Fashion Seal®, Fashion Seal Healthcare, Martin’s®, Worklon®, 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.

 

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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.

 

SUPERIOR UNIFORM GROUP, INC.

 

CONSOLIDATED STATEMENTS OF EARNINGS

 

THREE MONTHS ENDED MARCH 31,

(Unaudited)

 

     2005

   2004

Net sales

   $ 31,857,089    $ 33,765,220
    

  

Costs and expenses:

             

Cost of goods sold

     21,515,614      22,538,900

Selling and administrative expenses

     9,980,168      9,317,791

Interest expense

     141,864      158,061
    

  

       31,637,646      32,014,752
    

  

Earnings before taxes on income

     219,443      1,750,468

Taxes on income

     80,000      620,000
    

  

Net earnings

   $ 139,443    $ 1,130,468
    

  

Basic net earnings per common share

   $ 0.02    $ 0.15
    

  

Diluted net earnings per common share

   $ 0.02    $ 0.15
    

  

Dividends per common share

   $ 0.135    $ 0.135
    

  

 

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SUPERIOR UNIFORM GROUP, INC.

 

CONSOLIDATED BALANCE SHEETS

 

MARCH 31,

(Unaudited)

 

     2005

    2004

 
ASSETS                 

CURRENT ASSETS:

                

Cash and cash equivalents

   $ 151,821     $ 11,869,778  

Accounts receivable and other current assets

     29,672,797       28,047,092  

Inventories

     47,714,968       37,410,289  
    


 


TOTAL CURRENT ASSETS

     77,539,586       77,327,159  

PROPERTY, PLANT AND EQUIPMENT, NET

     21,725,009       19,156,550  

GOODWILL

     1,617,411       1,617,411  

OTHER INTANGIBLE ASSETS

     1,428,952       1,681,083  

OTHER ASSETS

     7,425,616       6,078,078  
    


 


     $ 109,736,574     $ 105,860,281  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY                 

CURRENT LIABILITIES:

                

Accounts payable

   $ 9,089,225     $ 6,336,597  

Accrued expenses

     4,097,143       6,680,755  

Current portion of long-term debt

     1,945,386       1,200,365  
    


 


TOTAL CURRENT LIABILITIES

     15,131,754       14,217,717  

LONG-TERM DEBT

     7,298,781       5,956,839  

DEFERRED INCOME TAXES

     855,000       100,000  

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 7,450,937, and 7,422,437, respectively

     7,451       7,422  

Additional paid-in capital

     15,396,596       14,215,659  

Retained earnings

     71,259,992       72,015,644  

Cumulative Comprehensive Income (Loss)

     (213,000 )     (653,000 )
    


 


TOTAL SHAREHOLDERS’ EQUITY

     86,451,039       85,585,725  
    


 


     $ 109,736,574     $ 105,860,281  
    


 


 

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