EXHIBIT 99.1
SEMINOLE, Fla., Oct. 23, 2008 (GLOBE NEWSWIRE) -- Superior Uniform Group, Inc. (Nasdaq:SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the third quarter ended September 30, 2008, net sales were $30,613,175 compared with 2007 third quarter net sales of $30,391,919. Earnings from continuing operations were $984,766 or $.15 per share (diluted), compared with earnings from continuing operations of $1,352,277 or $.20 per share (diluted) in the 2007 third quarter. Net earnings were $976,145 or $.15 per common share (diluted), compared with net earnings of $1,217,372 or $.18 per common share (diluted) in the 2007 third quarter. Earnings from continuing operations and net earnings in the 2007 third quarter included approximately $185,000 or $.03 per common share (diluted) of earnings related to the Internal Revenue Service completing an audit of the Company's federal tax returns for 2004 and 2005 and the reversal of accruals for uncertain tax positions.
For the nine months ended September 30, 2008, net sales were up approximately 7.4% to $95,595,090, compared with net sales of $89,043,720 in the nine months ended September 30, 2007. Earnings from continuing operations for the nine months ended September 30, 2008 were up approximately 29.5% to $3,110,398 or $.47 per share (diluted), versus earnings from continuing operations of $2,401,160 or $.36 per share (diluted) in the first nine months of 2007. Net earnings for the nine months ended September 30, 2008 were up approximately 47.6% to $2,955,788 or $.45 per common share (diluted) versus net earnings of $2,002,010 or $.30 per common share (diluted) in the first nine months of 2007.
Michael Benstock, Chief Executive Officer, commented: "We are pleased to be able to report even a small increase in net sales in the current economic environment in which we are operating. We were able to report this increase as sales to new customers and additional penetration of certain existing customers offset overall soft demand from the rest of our customer base. Pre-tax earnings from continuing operations were down slightly from the prior year as our cost reduction strategies were offset by general increases in operating costs in most areas of our business. We will continue to focus our efforts on additional cost saving measures as we move forward. We recognize the difficult current economic environment in which we are operating. We believe that our current customer service levels, commitment to customer excellence, new, already implemented sales strategies, as well as our strong financial position, have us well positioned to take additional market share. Additionally, we continue to believe that the market has undervalued our common shares and we remain committed to our share repurchase program. We have repurchased in excess of 400,000 shares under this program in the current year."
ABOUT SUPERIOR
Superior Uniform Group, Inc., established in 1920, is one of America's foremost providers of fine uniforms and image apparel. Superior manages award-winning apparel programs for major corporations. They are leaders in innovative uniform program designs, global manufacturing, and state-of-the-art distribution.
Superior's financial strength and resources support a customer's diverse needs while embracing a "Customer 1st, Every Time!" philosophy and culture. Their commitment to service, technology, quality and value-added benefits separates them from the competition in each of their seven primary markets: Healthcare, Hospitality, Food Service, Retail Employee I.D., Government Service, Private Security, and Rental Service. For more information please call (800) 727-8643, or visit their Web site at: 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:
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
2008 2007
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Net sales $ 30,613,175 $ 30,391,919
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Costs and expenses:
Cost of goods sold 20,548,954 20,450,821
Selling and administrative expenses 8,470,924 8,169,454
Interest expense 68,511 79,367
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29,088,389 28,699,642
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Earnings from continuing operations
before taxes on income 1,524,786 1,692,277
Taxes on income 540,000 340,000
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Earnings from continuing operations 984,786 1,352,277
Loss from discontinued operations (8,641) (134,905)
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Net earnings $ 976,145 $ 1,217,372
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Weighted average number of shares out-
standing during the period (Basic) 6,459,751 6,656,214
(Diluted) 6,472,142 6,676,054
Per Share Data:
Basic
Earnings from continuing operations $ 0.15 $ 0.20
Loss from discontinued operations,
net of tax benefits 0.00 (0.02)
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Net earnings $ 0.15 $ 0.18
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Diluted
Earnings from continuing operations $ 0.15 $ 0.20
Loss from discontinued operations,
net of tax benefits 0.00 (0.02)
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Net earnings $ 0.15 $ 0.18
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Cash dividends per common share $ $0.135 $ 0.135
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
2008 2007
------------ ------------
Net sales $ 95,595,090 $ 89,043,720
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Costs and expenses:
Cost of goods sold 63,964,391 59,761,409
Selling and administrative expenses 26,380,440 25,695,311
Interest expense 249,861 255,840
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90,594,692 85,712,560
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Earnings from continuing operations
before taxes on income 5,000,398 3,331,160
Taxes on income 1,890,000 930,000
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Earnings from continuing operations 3,110,398 2,401,160
Loss from discontinued operations (154,610) (399,150)
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Net earnings $ 2,955,788 $ 2,002,010
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Weighted average number of shares out-
standing during the period (Basic) 6,580,554 6,642,178
(Diluted) 6,586,108 6,674,418
Per Share Data:
Basic
Earnings from continuing operations $ 0.47 $ 0.36
Loss from discontinued operations,
net of tax benefits (0.02) (0.06)
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Net earnings $ 0.45 $ 0.30
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Diluted
Earnings from continuing operations $ 0.47 $ 0.36
Loss from discontinued operations,
net of tax benefits (0.02) (0.06)
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Net earnings $ 0.45 $ 0.30
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Cash dividends per common share 0.405 0.405
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30,
ASSETS
------
(Unaudited)
2008 2007
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 219,099 $ 3,245,182
Accounts receivable and other current
assets 22,172,895 23,584,223
Inventories 45,630,943 41,163,980
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TOTAL CURRENT ASSETS 68,022,937 67,993,385
PROPERTY, PLANT AND EQUIPMENT, NET 13,049,885 14,067,291
GOODWILL 1,617,411 1,617,411
OTHER INTANGIBLE ASSETS 595,397 833,555
OTHER ASSETS 2,154,623 1,654,456
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$ 85,440,253 $ 86,166,098
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
Accounts payable $ 5,411,924 $ 6,838,140
Other current liabilities 3,273,196 2,525,700
Current portion of long-term debt 1,048,482 1,525,470
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TOTAL CURRENT LIABILITIES 9,733,602 10,889,310
LONG-TERM DEBT 3,277,000 1,048,482
LONG-TERM PENSION LIABILITY 972,593 1,131,008
OTHER LONG-TERM LIABILITIES 635,000 565,000
DEFERRED INCOME TAXES 145,000 240,000
SHAREHOLDERS' EQUITY 70,677,058 72,292,298
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$ 85,440,253 $ 86,166,098
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CONTACT: Superior Uniform Group, Inc.
Andrew D. Demott, Jr., CFO
(727) 803-7135