EX-99.1 2 ex_151978.htm EXHIBIT 99.1 ex_151978.htm

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

 

SUPERIOR GROUP OF COMPANIES, INC. REPORTS OPERATING RESULTS FOR THE SECOND QUARTER JUNE 30, 2019

 

●     Net Sales increased 12 percent

●     27th Consecutive Quarter with Sales Increase

 

SEMINOLE, Fla. – July 30, 2019 – Superior Group of Companies, Inc. (NASDAQ: SGC), today announced its second quarter operating results for 2019.

 

The Company announced that for the second quarter ended June 30, 2019, net sales increased 12.0 percent to $92.3 million, compared to second quarter 2018 net sales of $82.4 million. Pretax Income was $3.7 million compared to $5.1 million in 2018. Net income was $2.8 million or $0.18 per diluted share, compared to $0.25 per diluted share in 2018.

 

Michael Benstock, Chief Executive Officer, commented, “Across all of our segments, we continue to perform well in a challenging business environment. We’re currently investing in our companies and making the organizational changes necessary to support our current business and prepare for our next level of growth; all while realizing increased sales for our 27th consecutive quarter.

 

Our uniform segment sales were up 7.7% from last year, as we reached the first anniversary of our acquisition of CID Resources. We’re making good progress on the integration of our uniform businesses enabling operational efficiencies, improved resource alignment, product sourcing, and sales channels. Technology upgrades are moving forward in our distribution centers in Arkansas and Texas, and construction continues on our second manufacturing facility in Haiti. Our investments in these initiatives are designed to generate cost efficiencies, improve working capital usage, and better serve the needs of our customers.

 

We continue to see strong growth at BAMKO and The Office Gurus. During the second quarter, BAMKO, our promotional products segment posted sales growth of 24.9% to $23.7 million compared to the second 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 11.6% over the comparable period.”

  

CONFERENCE CALL

 

Superior Group of Companies will hold a conference call on Tuesday, July 30, 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.

 

 

 

 

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 August 13, 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 10132243 for all replay access.

 

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

 

Superior Group of Companies, formerly Superior Uniform Group, 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   Hala Elsherbini  
Chief Financial Officer & Treasurer OR Halliburton Investor Relations
(727) 803-7170   (972) 458-8000

 

 

 

 

Comparative figures are as follows:

 

 SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

THREE MONTHS ENDED JUNE 30,

(Unaudited)

(In thousands, except shares and per share data)

 

   

2019

   

2018

 
                 

Net sales

  $ 92,270     $ 82,392  
                 

Costs and expenses:

               

Cost of goods sold

    59,927       53,114  

Selling and administrative expenses

    26,885       23,327  

Other periodic pension costs

    547       96  

Interest expense

    1,259       758  
      88,618       77,295  
                 

Income before taxes on income

    3,652       5,097  

Income tax expense

    871       1,280  
                 

Net income

  $ 2,781     $ 3,817  
                 

Weighted average number of shares outstanding during the period

         

(Basic)

    14,952,802       14,956,221  

(Diluted)

    15,287,357       15,559,404  

Per Share Data:

               

Basic

               

Net income

  $ 0.19     $ 0.26  

Diluted

               

Net income

  $ 0.18     $ 0.25  
                 

Cash dividends per common share

  $ 0.100     $ 0.095  

 

 

 

 

 SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

SIX MONTHS ENDED JUNE 30,

(Unaudited)

(In thousands, except shares and per share data)

 

   

2019

   

2018

 
                 

Net sales

  $ 178,822     $ 155,479  
                 

Costs and expenses:

               

Cost of goods sold

    116,211       101,326  

Selling and administrative expenses

    52,748       44,509  

Other periodic pension costs

    806       192  

Interest expense

    2,429       1,035  
      172,194       147,062  
                 

Income before taxes on income

    6,628       8,417  

Income tax expense

    1,471       2,150  
                 

Net income

  $ 5,157     $ 6,267  
                 

Weighted average number of shares outstanding during the period

         

(Basic)

    14,940,072       14,888,940  

(Diluted)

    15,275,006       15,508,517  

Per Share Data:

               

Basic

               

Net income

  $ 0.35     $ 0.42  

Diluted

               

Net income

  $ 0.34     $ 0.40  
                 

Cash dividends per common share

  $ 0.20     $ 0.19  

 

 

 

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)

 

   

June 30,

   

December 31,

 
   

2019

   

2018

 
                 
ASSETS  

CURRENT ASSETS:

               

Cash and cash equivalents

  $ 8,267     $ 5,362  

Accounts receivable, less allowance for doubtful accounts of $2,141 and $2,042, respectively

    70,927       64,017  

Accounts receivable - other

    1,463       1,744  

Inventories

    63,370       67,301  

Contract assets

    43,674       49,236  

Prepaid expenses and other current assets

    12,090       9,552  

TOTAL CURRENT ASSETS

    199,791       197,212  
                 

PROPERTY, PLANT AND EQUIPMENT, NET

    31,448       28,769  

OPERATING LEASE RIGHT-OF-USE ASSETS

    4,716       -  

INTANGIBLE ASSETS, NET

    64,437       66,312  

GOODWILL

    36,321       33,961  

OTHER ASSETS

    10,299       8,832  

TOTAL ASSETS

  $ 347,012     $ 335,086  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY  

CURRENT LIABILITIES:

               

Accounts payable

  $ 25,903     $ 24,685  

Other current liabilities

    15,375       14,767  

Current portion of long-term debt

    15,286       6,000  

Current portion of acquisition-related contingent liabilities

    2,212       941  

TOTAL CURRENT LIABILITIES

    58,776       46,393  
                 

LONG-TERM DEBT

    108,035       111,522  

LONG-TERM PENSION LIABILITY

    8,532       8,705  

LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITIES

    3,605       5,422  

LONG-TERM OPERATING LEASE LIABILITIES

    2,864       -  

DEFERRED TAX LIABILITY

    6,730       8,475  

OTHER LONG-TERM LIABILITIES

    4,350       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 - 15,255,694 and 15,202,387, respectively.

    15       15  

Additional paid-in capital

    57,166       55,859  

Retained earnings

    104,165       103,032  

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

               

Pensions

    (6,924 )     (7,673 )

Cash flow hedges

    102       113  

Foreign currency translation adjustment

    (404 )     (425 )

TOTAL SHAREHOLDERS' EQUITY

    154,120       150,921  

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

  $ 347,012     $ 335,086  

 

 

 

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30,

(Unaudited)

(In thousands)

 

   

2019

   

2018

 
                 

CASH FLOWS FROM OPERATING ACTIVITIES

               

Net income

  $ 5,157     $ 6,267  

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

               

Depreciation and amortization

    4,211       3,646  

Provision for bad debts - accounts receivable

    361       323  

Share-based compensation expense

    1,032       1,490  

Deferred income tax benefit (provision)

    (1,979 )     302  

Gain on sale of property, plant and equipment

    (3 )     -  

Change in fair value of acquisition-related contingent liabilities

    417       (840 )
                 

Changes in assets and liabilities, net of acquisition of business:

               

Accounts receivable - trade

    (7,230 )     (3,492 )

Accounts receivable - other

    280       (674 )

Contract assets

    5,562       (972 )

Inventories

    2,113       2,953  

Prepaid expenses and other current assets

    (2,625 )     242  

Other assets

    (2,102 )     (1,827 )

Accounts payable and other current liabilities

    (14 )     (7,368 )

Long-term pension liability

    812       195  

Other long-term liabilities

    759       (497 )

Net cash provided by (used in) operating activities

    6,751       (252 )
                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Additions to property, plant and equipment

    (4,979 )     (2,414 )

Proceeds from disposals of property, plant and equipment

    3       -  

Acquisition of businesses, net of acquired cash

    -       (85,597 )

Net cash used in investing activities

    (4,976 )     (88,011 )
                 

CASH FLOWS FROM FINANCING ACTIVITIES

               

Proceeds from long-term debt

    94,466       146,157  

Repayment of long-term debt

    (88,667 )     (56,289 )

Payment of cash dividends

    (3,023 )     (2,827 )

Payment of acquisition-related contingent liability

    (961 )     (3,033 )

Proceeds received on exercise of stock options

    280       405  

Tax benefit from vesting of acquisition-related restricted stock

    30       105  

Tax withholding on exercise of stock rights

    -       (17 )

Common stock reacquired and retired

    (1,036 )     -  

Net cash provided by financing activities

    1,089       84,501  
                 

Effect of currency exchange rates on cash

    41       (204 )
                 

Net increase (decrease) in cash and cash equivalents

    2,905       (3,966 )
                 

Cash and cash equivalents balance, beginning of year

    5,362       8,130  
                 

Cash and cash equivalents balance, end of period

  $ 8,267     $ 4,164