EX-99.1 2 dex991.htm PRESS RELEASE Press Release

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, 2005

 

SEMINOLE, Florida—October 27, 2005—Superior Uniform Group, Inc. (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the third quarter ended September 30, 2005, sales were $34,194,000 compared with 2004 third quarter sales of $36,960,340. Net earnings were $158,550 or $.02 per common share (diluted), compared with net earnings of $1,803,113 or $.24 per common share (diluted) in the 2004 third quarter.

 

For the nine months ended September 30, 2005, sales were $100,910,004, compared with sales of $106,125,651 in the nine months ended September 30, 2004. Net earnings for the nine months ended September 30, 2005 were $944,524 or $.13 per common share (diluted) versus net earnings of $4,210,914 or $.55 per common share (diluted) in the first nine months of 2004.

 

Michael Benstock, Chief Executive Officer, commented: “Sales for the third quarter were disappointing. We continue to operate in a very price-sensitive and competitive environment. A large part of our customer base has been significantly impacted by rising fuel, energy and transportation costs. Two significant hurricanes caused some disruption to our primary supply chain as well as directly impacting the operations of several of our customers. Our volume was also lower as a result of the service difficulties that we experienced earlier in the year from our warehouse implementation. We are pleased with the operation of the warehouse at this point and we strongly believe that this is a very good investment for the future of the Company.

 

In September, we launched our largest-ever catalog, Defining Uniforms, which introduced our newest uniform collections. Our customers will now have unprecedented access to high-quality

 

– more –


and fashionable work attire at an exceptional value. These products will help us to grow several of our focal markets, particularly Hospitality and Healthcare where we see tremendous opportunity for increased market penetration.

 

Our gross margins were significantly lower in the quarter as a result of several factors; primarily lower production volume to absorb overhead costs and increased charges for obsolescence as a result of declining sales prior to the release of the new products in the Defining Uniforms catalog.

 

Selling and administrative expenses for the third quarter were down slightly from the prior year period despite recognizing approximately $250,000 in costs associated with settlements of pension liabilities as a result of the significant number of positions eliminated in our work force during the current year.

 

We recognize that our results have been less than satisfactory in this tumultuous year. However, we strongly believe that the moves we have made this year will benefit the Company and its shareholders in the long-term.”

 

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, image apparel and accessories. Superior specializes in managing comprehensive uniform programs, and is dedicated to servicing the Healthcare, Hospitality, Restaurant/Food Services, Retail Employee I.D., Governmental/Public Safety, Entertainment, Commercial, Transportation, Cleanroom, Corporate Identity and Resortwear markets. For more information, please visit www.superioruniformgroup.com.

 

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:

 

– more –


SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS

(Unaudited)

 

         Three Months Ended September 30,

 
         2005

    2004

 

Net sales

       $ 34,194,000     $ 36,960,340  
        


 


Costs and expenses:

                    

Cost of goods sold

         24,336,581       24,509,825  

Selling and administrative expenses

         9,465,415       9,530,370  

Interest expense

         163,454       157,032  
        


 


           33,965,450       34,197,227  
        


 


Earnings before taxes on income

         228,550       2,763,113  

Taxes on income

         70,000       960,000  
        


 


Net earnings

       $ 158,550     $ 1,803,113  
        


 


Weighted average number of shares outstanding during the period

                    
     (Basic)     7,447,700  Shs.     7,464,850  Shs.
     (Diluted)     7,511,157  Shs.     7,592,817  Shs.

Basic net earnings per common share

       $ 0.02     $ 0.24  
        


 


Diluted net earnings per common share

       $ 0.02     $ 0.24  
        


 


Dividends per common share

       $ 0.135     $ 0.135  
        


 


 

– more –


SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS

(Continued)

(Unaudited)

 

         Nine Months Ended September 30,

 
         2005

    2004

 

Net sales

       $ 100,910,004     $ 106,125,651  
        


 


Costs and expenses:

                    

Cost of goods sold

         69,909,426       70,877,302  

Selling and administrative expenses

         29,109,101       28,325,765  

Interest expense

         466,953       471,670  
        


 


           99,485,480       99,674,737  
        


 


Earnings before taxes on income

         1,424,524       6,450,914  

Taxes on income

         480,000       2,240,000  
        


 


Net earnings

       $ 944,524     $ 4,210,914  
        


 


Weighted average number of shares outstanding during the period

                    
     (Basic)     7,446,681  Shs.     7,434,006  Shs.
     (Diluted)     7,527,380  Shs.     7,605,264  Shs.

Basic net earnings per common share

       $ 0.13     $ 0.57  
        


 


Diluted net earnings per common share

       $ 0.13     $ 0.55  
        


 


Dividends per common share

       $ 0.405     $ 0.405  
        


 


 

– more –


SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

ASSETS

(Unaudited)

 

 

     September 30,
2005


    September 30,
2004


 

CURRENT ASSETS:

                

Cash and cash equivalents

   $ 172,233     $ 4,366,795  

Accounts receivable and other current assets

     31,059,285       30,378,504  

Inventories

     39,868,816       40,196,662  
    


 


TOTAL CURRENT ASSETS

     71,100,334       74,941,961  

PROPERTY, PLANT AND EQUIPMENT, NET

     21,128,490       22,477,591  

GOODWILL

     1,617,411       1,615,512  

OTHER INTANGIBLE ASSETS

     1,309,873       1,567,878  

OTHER ASSETS

     7,658,088       6,405,527  
    


 


     $ 102,814,196     $ 107,008,469  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY  

CURRENT LIABILITIES:

                

Accounts payable

   $ 5,950,403     $ 8,063,485  

Other current liabilities

     3,697,342       3,670,083  

Current portion of long-term debt

     1,660,180       1,466,328  
    


 


TOTAL CURRENT LIABILITIES

     11,307,925       13,199,896  

LONG-TERM DEBT

     6,805,657       6,093,047  

DEFERRED INCOME TAXES

     865,000       365,000  

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 7,342,393 and 7,465,712, respectively

     7,343       7,466  

Additional paid-in capital

     15,455,031       14,800,962  

Retained earnings

     68,515,240       72,962,098  

Cumulative comprehensive loss

     (142,000 )     (420,000 )
    


 


TOTAL SHAREHOLDERS’ EQUITY

     83,835,614       87,350,526  
    


 


     $ 102,814,196     $ 107,008,469