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 REPORTS SECOND QUARTER RESULTS

 

SEMINOLE, Florida - July 28, 2005 - Superior Uniform Group, Inc., (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2005, sales were $34,858,915 compared with 2004 second quarter sales of $35,400,090. Net income was $646,533 or $.09 per share (diluted), compared with net income of $1,277,333 or $0.17 per share (diluted) in the 2004 second quarter.

 

For the six months ended June 30, 2005, sales were $66,716,004, compared with sales of $69,165,310 in the six months ended June 30, 2004. Net income for the six months ended June 30, 2005 was $785,975 or $.10 per share (diluted) versus a net income of $2,407,801 or $0.32 per share (diluted) in the first six months of 2004.

 

Michael Benstock, Chief Executive Officer, commented: “During the first quarter of 2005, the difficulties that we experienced with the implementation of our upgraded warehouse were very tough on the company and on our customers. While we were able to correct the operational problems at the beginning of the second quarter, our sales results were impacted as certain customers reduced their volume of business at that time. We recognize that this has resulted in a loss of certain business in the short-term, but we believe that this upgrade in warehouse technology will help to keep our company in the forefront of distribution technology and will give us the competitive advantage that we need to better service our customers in a very competitive marketplace in the future. Despite the current setback in our customer base, we are continuing to focus our efforts on building a world-class sales force and top grading our organization. Our financial strength has allowed us to weather these difficult times. We believe that we are building the right sales and marketing teams and that our efforts will ultimately result in a much-improved sales profile going forward.

 

Earnings for the quarter were improved in comparison to the first quarter of this year. However, they are still down significantly from the second quarter of 2004. Lower sales and manufacturing volumes available to absorb fixed overheads have negatively impacted gross margins. Management is

 

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focused on the overhead structure of the company and has implemented staffing reductions that are expected to result in annualized payroll reductions of over $1.4 million, while still allowing the company to achieve improved results in the future.”

 

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.

 

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,

     2005

   2004

Net sales

   $ 34,858,915    $ 35,400,090
    

  

Costs and expenses:

             

Cost of goods sold

     24,057,231      23,828,577

Selling and administrative expenses

     9,663,516      9,477,603

Interest expense

     161,635      156,577
    

  

       33,882,382      33,462,757
    

  

Earnings before taxes on income

     976,533      1,937,333

Taxes on income

     330,000      660,000
    

  

Net earnings

   $ 646,533    $ 1,277,333
    

  

Basic net earnings per common share

   $ 0.09    $ 0.17
    

  

Diluted net earnings per common share

   $ 0.09    $ 0.17
    

  

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,

     2005

   2004

Net sales

   $ 66,716,004    $ 69,165,310
    

  

Costs and expenses:

             

Cost of goods sold

     45,572,844      46,367,477

Selling and administrative expenses

     19,643,686      18,795,394

Interest expense

     303,499      314,638
    

  

       65,520,029      65,477,509
    

  

Earnings before taxes on income

     1,195,975      3,687,801

Taxes on income

     410,000      1,280,000
    

  

Net earnings

   $ 785,975    $ 2,407,801
    

  

Basic net earnings per common share

   $ 0.11    $ 0.32
    

  

Diluted net earnings per common share

   $ 0.10    $ 0.32
    

  

Dividends per common share

   $ 0.27    $ 0.27
    

  

 

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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY

 

CONSOLIDATED BALANCE SHEETS

 

JUNE 30,

(Unaudited)

 

     2005

    2004

 
ASSETS                 

CURRENT ASSETS

                

Cash and cash equivalents

   $ 152,128     $ 8,353,750  

Accounts receivable and other current assets

     29,580,704       29,040,637  

Inventories

     44,895,222       37,958,123  
    


 


TOTAL CURRENT ASSETS

     74,628,054       75,352,510  

PROPERTY, PLANT AND EQUIPMENT, NET

     21,786,395       19,944,151  

GOODWILL

     1,617,411       741,929  

OTHER INTANGIBLE ASSETS

     1,369,413       2,475,536  

OTHER ASSETS

     7,466,794       6,200,333  
    


 


     $ 106,868,067     $ 104,714,459  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY                 

CURRENT LIABILITIES

                

Accounts payable

   $ 5,605,736     $ 5,578,207  

Accrued expenses

     4,181,252       5,484,786  

Current portion of long-term debt

     1,967,658       1,221,216  
    


 


TOTAL CURRENT LIABILITIES

     11,754,646       12,284,209  

LONG-TERM DEBT

     8,153,135       5,644,464  

DEFERRED INCOME TAXES

     960,000       300,000  

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 7,445,555 and 7,455,387, respectively

     7,446       7,455  

Additional paid-in capital

     15,452,463       14,593,022  

Retained earnings

     70,760,377       72,288,309  

Cumulative Comprehensive Income (Loss)

     (220,000 )     (403,000 )
    


 


TOTAL SHAREHOLDERS’ EQUITY

     86,000,286       86,485,786  
    


 


     $ 106,868,067     $ 104,714,459  
    


 


 

 

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