NEWS RELEASE
[Logo Superior Uniform Group]
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 RESULTS
SEMINOLE, Florida—April 24, 2003 – Gerald M. Benstock, Chairman and C.E.O. of Superior Uniform Group, Inc. (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the first quarter ended March 31, 2003, sales were $30,954,947 compared with 2002 first quarter sales of $33,648,226. Earnings before cumulative effect of change in accounting principle were $626,186 or $.09 per share (diluted) compared to 2002 first quarter earnings before cumulative effect of change in accounting principle of $421,491 or $.06 per share (diluted). Net earnings were $626,186 or $.09 per share (diluted) compared to 2002 first quarter loss of $4,083,072 or $(.58) per share (diluted). Net loss for the quarter ended March 31, 2002 includes a $4.5 million, non-cash charge reflected as a cumulative effect of change in accounting principle, net of tax in accordance with the Statement of Financial Accounting Standards No. 142 “Goodwill and Other Intangible Assets” that was adopted effective January 1, 2002. Additionally, net loss for the 2002 quarter included $360,000 in pre-tax expenses associated with the review of a potential merger that was not completed and approximately $292,000 of pre-tax costs related to the prepayment of approximately $6.2 million of borrowings. This amount was shown as an extraordinary item, net of tax benefit of $105,000, in the amount of $187,000 in the 2002 financial statements. As a result of the adoption of Statement of Financial Accounting Standards No. 145“Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections”, this amount has been reclassified to selling and administrative expenses in the 2002 results.
In making the earnings announcement, Mr. Benstock stated: “The employment numbers and generally slow economic conditions have continued to weigh heavily on the company’s operating results in the first quarter. Our customers are continuing to limit spending as much as possible. In these difficult times, we are taking a very hard look at our organization and are working diligently to streamline our operations wherever possible. We currently anticipate completing the consolidation of our sales and administration functions from our two largest divisions early in the second quarter. This consolidation is expected to make the organization more effective and efficient in its marketing efforts. We continue to place a significant emphasis on improving our sourcing of goods and as a result, have been able to achieve significant improvement in our gross margins in the current quarter. We are actively reviewing our sales coverage and are looking to add additional sales
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associates to increase our market coverage and to ultimately improve our sales results. The financial strength of our company remains very strong and we continue to generate significant cash from operations in spite of the difficult economic environment in which we are operating.
Superior Uniform Group, through its marketing divisions – Fashion Seal Uniforms, Martin’s, Empire, Appel, Worklon, Universal, and Sope Creek – 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.
SUPERIOR UNIFORM GROUP, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
THREE MONTHS ENDED MARCH 31,
(Unaudited)
2003 | 2002 | ||||||
Net sales | $ | 30,954,947 | $ | 33,648,226 |
| ||
Costs and expenses: | |||||||
Cost of goods sold |
| 20,015,455 |
| 22,106,885 |
| ||
Selling and administrative expenses |
| 9,802,665 |
| 10,580,046 |
| ||
Interest expense |
| 170,641 |
| 294,804 |
| ||
| 29,988,761 |
| 32,981,735 |
| |||
Earnings before taxes on income and cumulative effect of change in accounting principle |
| 966,186 |
| 666,491 |
| ||
Taxes on income |
| 340,000 |
| 245,000 |
| ||
Earnings before cumulative effect of change in accounting principle |
| 626,186 |
| 421,491 |
| ||
Cumulative effect of change in accounting principle, net of tax benefit of $2,560,000 |
| — |
| (4,504,563 | ) | ||
Net earnings (loss) | $ | 626,186 | $ | (4,083,072 | ) | ||
Basic net earnings per common share before cumulative effect of change in accounting principle | $ | 0.09 | $ | 0.06 |
| ||
Cumulative effect of change in accounting principle, net of tax |
| — |
| (0.64 | ) | ||
Basic net earnings per common share | $ | 0.09 | $ | (0.58 | ) | ||
Diluted net earnings per common share before cumulative effect of change in accounting principle | $ | 0.09 | $ | 0.06 |
| ||
Cumulative effect of change in accounting principle, net of tax |
| — |
| (0.64 | ) | ||
Diluted net earnings (loss) per common share | $ | 0.09 | $ | (0.58 | ) | ||
Dividends per common share | $ | 0.135 | $ | 0.135 |
| ||
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SUPERIOR UNIFORM GROUP, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31,
(Unaudited)
ASSETS
2003 | 2002 | |||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 8,379,346 |
| $ | 882,193 |
| ||
Accounts receivable and other current assets |
| 22,329,554 |
|
| 24,516,901 |
| ||
Inventories |
| 42,518,137 |
|
| 46,591,078 |
| ||
TOTAL CURRENT ASSETS | $ | 73,227,037 |
| $ | 71,990,172 |
| ||
PROPERTY, PLANT AND EQUIPMENT, NET |
| 19,302,414 |
|
| 22,409,222 |
| ||
EXCESS OF COST OVER FAIR VALUE OF ASSETS | ||||||||
ACQUIRED |
| 741,929 |
|
| 741,929 |
| ||
OTHER ASSETS |
| 5,421,273 |
|
| 3,621,290 |
| ||
DEFERRED INCOME TAXES |
| 20,000 |
|
| 745,000 |
| ||
$ | 98,712,653 |
| $ | 99,507,613 |
| |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 4,192,836 |
| $ | 6,310,091 |
| ||
Accrued expenses |
| 6,437,085 |
|
| 5,944,658 |
| ||
Current portion of long-term debt |
| 1,122,999 |
|
| 1,044,122 |
| ||
TOTAL CURRENT LIABILITIES | $ | 11,752,920 |
| $ | 13,298,871 |
| ||
LONG-TERM DEBT |
| 7,157,204 |
|
| 8,280,203 |
| ||
SHAREHOLDERS’ EQUITY: | ||||||||
Preferred stock, $1 par value – authorized | $ | — |
| $ | — |
| ||
Common stock, $.001 par value – authorized |
| 7,138 |
|
| 7,042 |
| ||
Additional paid-in capital |
| 10,933,969 |
|
| 9,732,818 |
| ||
Retained earnings |
| 69,734,422 |
|
| 68,734,871 |
| ||
Cumulative Comprehensive Income (Loss) |
| (873,000 | ) |
| (546,192 | ) | ||
TOTAL SHAREHOLDERS’ EQUITY | $ | 79,802,529 |
| $ | 77,928,539 |
| ||
$ | 98,712,653 |
| $ | 99,507,613 |
| |||
