EX-99.1 2 ex_141654.htm EXHIBIT 99.1 ex_141654.htm

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

 

SUPERIOR GROUP OF COMPANIES, INC. REPORTS OPERATING RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2019

 

●     Net Sales increased 18 percent

●     26th Consecutive Quarter with Sales Increase

 

SEMINOLE, Fla. – April 25, 2019 – Superior Group of Companies, Inc. (NASDAQ: SGC), today announced its first quarter operating results for 2019.

 

The Company announced that for the first quarter ended March 31, 2019, net sales increased 18.4 percent to $86.6 million, compared to first quarter 2018 net sales of $73.1 million. Pretax Income was $3.0 million compared to $3.3 million in 2018. Net income was $2.4 million or $0.16 per diluted share for both periods.

 

Michael Benstock, Chief Executive Officer, commented, “Our uniform segment sales were up 22% from last year’s first quarter, as a result of our acquisition of CID Resources. We’ve made substantial progress on the integration of our uniform businesses, both operationally and through product sourcing and sales channels. Our ERP and Web system integrations within our business are progressing on schedule and, once completed, will allow us to manage our entire uniform business more efficiently on a single platform. During this quarter we started the construction of our second manufacturing facility in Haiti which is scheduled for completion this summer. We also initiated our multi-year modernization initiative at our keystone distribution center in Eudora, Arkansas as well as our center supporting CID in Dallas. Our investments in these initiatives are designed to generate cost efficiencies, improve working capital usage, and allow us to better serve the needs of our customers.

 

We continue to see strong growth at BAMKO and The Office Gurus. During the first quarter, BAMKO, our Promotional Products segment, posted sales growth of 9 percent to $20.4 million compared to the first quarter of last year. The Office Gurus, our Remote Staffing segment, continues to perform to our expectations with quarterly net sales growth to outside customers of 20 percent over the comparable period.”

 

CONFERENCE CALL

 

Superior Group of Companies will hold a conference call on Thursday, April 25, 2019 at 2:00 p.m. Eastern Time to discuss the Company’s results. Interested individuals may join the teleconference by dialing (844) 861-5505 for U.S. dialers and (412) 317-6586 for International dialers. The Canadian Toll Free number is (866) 605-3852. Please ask to be joined into the Superior Group of Companies call. The live webcast and archived replay can also be accessed in the investor information section of the Company’s website at www.superiorgroupofcompanies.com.

 

-more-

 

 
 

 

A telephone replay of the teleconference will be available one hour after the end of the call through 2:00 p.m. Eastern Time on May 2, 2019. To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations. Canadian dialers can access the replay at (855) 669-9658. Please reference conference number 10130654 for all replay access.

 

About Superior Group of Companies, Inc. (SGC):

 

Superior Group of Companies™, formerly Superior Group of Companies, established in 1920, is a combination of companies that help customers unlock the power of their brands by creating extraordinary brand experiences for employees and customers. It provides customized support for each of its divisions through its shared services model.

 

Fashion Seal Healthcare®, HPI™ and CID Resources are signature uniform brands of Superior Group of Companies. Each is one of America’s leading providers of uniforms and image apparel in the markets it serves. They specialize in innovative uniform program design, global manufacturing, and state-of-the-art distribution. Every day, more than 6 million Americans go to work wearing a uniform from Superior Group of Companies.

 

BAMKO®, Tangerine Promotions® and Public Identity® are signature promotional products and branded merchandise brands of Superior Group of Companies. They provide unique custom branding, design, sourcing, and marketing solutions to some of the world’s most successful brands.

 

The Office Gurus® is a global provider of custom call and contact center support. As a true strategic partner, The Office Gurus implements customized solutions for its customers in order to accelerate their growth and improve their customers’ service experiences.

 

SGC’s commitment to service, technology, quality and value-added benefits, as well as its financial strength and resources, provides unparalleled support for its customers’ diverse needs while embracing a “Customer 1st, Every Time!” philosophy and culture in all of its business segments.

 

Visit www.superiorgroupofcompanies.com for more information.

 

Contact:

Michael Attinella                        

Chief Financial Officer & Treasurer     

(727) 803-7170               

 

-OR-

 

Hala Elsherbini

Halliburton Investor Relations

(972) 458-8000

 

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Comparative figures are as follows:

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

THREE MONTHS ENDED MARCH 31,

(Unaudited)

(In thousands, except shares and per share data)

 

   

2019

    

2018

  
                 

Net sales

   $ 86,552     $ 73,087  
                 

Costs and expenses:

                

Cost of goods sold

     56,284       48,212  

Selling and administrative expenses

     25,863       21,182  

Other periodic pension costs

     259       96  

Interest expense

     1,170       277  
      83,576       69,767  
                 

Income before taxes on income

     2,976       3,320  

Income tax expense

     600       870  
                 

Net income

   $ 2,376     $ 2,450  
                 
Weighted average number of shares outstanding during the period                

(Basic)

     14,927,341       14,821,659  

(Diluted)

     15,262,654       15,457,629  

Per Share Data:

                

Basic

                

Net income

   $ 0.16     $ 0.17  

Diluted

                

Net income

   $ 0.16     $ 0.16  
                 

Cash dividends per common share

   $ 0.1000     $ 0.0950  

 

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SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

 

ASSETS

 

   

March 31,

          
   

2019

    

December 31,

  
   

(Unaudited)

    

2018

  

CURRENT ASSETS:

                

Cash and cash equivalents

   $ 6,824     $ 5,362  

Accounts receivable, less allowance for doubtful accounts of $2,004 and $2,042, respectively

     63,610       64,017  

Accounts receivable - other

     1,431       1,744  

Inventories

     65,753       67,301  

Contract assets

     47,359       49,236  

Prepaid expenses and other current assets

     11,488       9,552  

TOTAL CURRENT ASSETS

     196,465       197,212  
                 

PROPERTY, PLANT AND EQUIPMENT, NET

     29,388       28,769  

OPERATING LEASE RIGHT-OF-USE ASSETS

     4,581       -  

OTHER INTANGIBLE ASSETS, NET

     65,389       66,312  

GOODWILL

     33,955       33,961  

OTHER ASSETS

     9,796       8,832  
    $ 339,574     $ 335,086  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY  
                 

CURRENT LIABILITIES:

                

Accounts payable

   $ 24,802     $ 24,685  

Other current liabilities

     15,703       14,767  

Current portion of long-term debt

     15,286       6,000  

Current portion of acquisition-related contingent liabilities

     941       941  

TOTAL CURRENT LIABILITIES

     56,732       46,393  
                 

LONG-TERM DEBT

     101,931       111,522  

LONG-TERM PENSION LIABILITY

     8,643       8,705  

LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITIES

     5,622       5,422  

OPERATING LEASE LIABILITIES

     2,866       -  

DEFERRED TAX LIABILITY

     7,365       8,475  

OTHER LONG-TERM LIABILITIES

     4,690       3,648  

COMMITMENTS AND CONTINGENCIES (NOTE 5)

                

SHAREHOLDERS' EQUITY:

                

Preferred stock, $.001 par value - authorized 300,000 shares (none issued)

     -       -  

Common stock, $.001 par value - authorized 50,000,000 shares, issued and outstanding - 15,229,775 and 15,202,387, respectively.

     15       15  

Additional paid-in capital

     56,536       55,859  

Retained earnings

     102,945       103,032  

Accumulated other comprehensive income (loss), net of tax:

                

Pensions

     (7,426 )     (7,673 )

Cash flow hedges

     108       113  

Foreign currency translation adjustment

     (453 )     (425 )

TOTAL SHAREHOLDERS' EQUITY

     151,725       150,921  
    $ 339,574     $ 335,086  

 

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SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31,

(Unaudited)

(In thousands)

 

   

2019

    

2018

  
                 

CASH FLOWS FROM OPERATING ACTIVITIES

                

Net income

   $ 2,376     $ 2,450  

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

                

Depreciation and amortization

     2,060       1,626  

Provision for bad debts - accounts receivable

     138       157  

Share-based compensation expense

     481       1,052  

Deferred income tax benefit (provision)

     (1,182 )     162  

Gain on sale of property, plant and equipment

     (3 )     -  

Change in fair value of acquisition-related contingent liabilities

     201       209  
                 

Changes in assets and liabilities:

                

Accounts receivable - trade

     309       2,147  

Accounts receivable - other

     312       (259 )

Contract assets

     1,876       (3,780 )

Inventories

     1,522       3,742  

Prepaid expenses and other current assets

     (2,197 )     27  

Other assets

     (1,503 )     (1,564 )

Accounts payable and other current liabilities

     (12 )     (7,132 )

Long-term pension liability

     262       97  

Other long-term liabilities

     1,099       450  

Net cash provided by (used in) operating activities

     5,739       (616 )
                 

CASH FLOWS FROM INVESTING ACTIVITIES

                

Additions to property, plant and equipment

     (1,723 )     (1,055 )

Proceeds from disposals of property, plant and equipment

     3       -  

Net cash used in investing activities

     (1,720 )     (1,055 )
                 

CASH FLOWS FROM FINANCING ACTIVITIES

                

Proceeds from long-term debt

     54,856       31,657  

Repayment of long-term debt

     (55,161 )     (24,642 )

Payment of cash dividends

     (1,515 )     (1,402 )

Payment of acquisition-related contingent liability

     -       (2,000 )

Proceeds received on exercise of stock options

     210       257  

Tax benefit from vesting of acquisition-related restricted stock

     30       105  

Tax withholding on exercise of stock rights

     -       (17 )

Common stock reaquired and retired

     (992 )     -  

Net cash (used in) provided by financing activities

     (2,572 )     3,958  
                 

Effect of currency exchange rates on cash

     15       25  
                 

Net increase in cash and cash equivalents

     1,462       2,312  
                 

Cash and cash equivalents balance, beginning of year

     5,362       8,130  
                 

Cash and cash equivalents balance, end of period

   $ 6,824     $ 10,442  

 

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