EXHIBIT 99.1
* Debt Free Balance Sheet * Generates in Excess of $11 Million, Year-To-Date, in Cash From Operations * Returns to Profitability After First Quarter Operating Loss
SEMINOLE, Fla., July 23, 2009 (GLOBE NEWSWIRE) -- Superior Uniform Group, Inc. (Nasdaq:SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2009, sales were $24,971,523, compared with 2008 second quarter sales of $31,699,285. Earnings from continuing operations were $701,272 or $.12 per share (diluted), compared with earnings from continuing operations of $1,210,804 or $.18 per share (diluted) in the 2008 second quarter.
For the six months ended June 30, 2009, sales were $48,687,617, compared with sales of $64,981,915 in the six months ended June 30, 2008. Earnings from continuing operations for the six months ended June 30, 2009 were $198,327 or $.03 per share (diluted), versus earnings from continuing operations of $2,125,612 or $.32 per share (diluted) in the first six months of 2008.
Michael Benstock, Chief Executive Officer, commented: "Our sales continue to be impacted by the current economic environment. However, as a result of the cost reduction initiatives that we discussed in our first quarter earnings release, we were able to realize significant improvements in our earnings in the second quarter in comparison to the first quarter of 2009. These initiatives are aimed at eliminating nonessential positions, streamlining our existing processes and shifting administrative positions to our Central American subsidiary where possible. Additionally, when economic conditions do improve, we expect to see significant improvement in our earnings as a result of these cost reduction initiatives. Year to date, we have generated over $11 million in cash from operations and we have eliminated all of our outstanding debt. We remain focused on generating positive cash flows through both expense control and working capital management. Given our current position of financial strength, we will weather t he current economic environment. Our ability to still support our long-term growth initiatives will ultimately allow us to emerge from this economic malaise as a stronger and more profitable organization while maintaining our priority of providing superior service to our customers. We are pursuing potential strategic acquisitions to help achieve these objectives. Finally, we remain committed to reacquiring shares of our common stock. We have an active repurchase program with an outstanding authorization to repurchase an additional 557,000 shares as of June 30, 2009."
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, through their subsidiary "The Office Gurus" is also a near-shore premium provider of cost effective bilingual contact center and office solutions.
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. The Office Gurus enhance the overall customer experience for their strategic partners' internal and external customers through impeccable execution and the consistent achievement of results. For more information regarding the Office Gurus please visit their Web site at: www.theofficegurus.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 EARNINGS
THREE MONTHS ENDED JUNE 30,
(Unaudited)
2009 2008
----------- -----------
Net sales $24,971,523 $31,699,285
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Costs and expenses:
Cost of goods sold 16,689,786 21,041,384
Selling and administrative expenses 7,235,529 8,609,888
Interest expense 24,936 77,209
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23,950,251 29,728,481
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Earnings from continuing operations before
taxes on income 1,021,272 1,970,804
Taxes on income 320,000 760,000
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Earnings from continuing operations 701,272 1,210,804
Loss from discontinued operations, net of
tax benefits of $0 and $15,000,
respectively -- (32,531)
----------- -----------
Net earnings $ 701,272 $ 1,178,273
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Per Share Data:
Basic
Earnings from continuing operations $ 0.12 $ 0.18
Loss from discontinued operations,
net of tax benefits 0.00 0.00
----------- -----------
Net earnings $ 0.12 $ 0.18
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Diluted
Earnings from continuing operations $ 0.12 $ 0.18
Loss from discontinued operations,
net of tax benefits 0.00 0.00
----------- -----------
Net earnings $ 0.12 $ 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 EARNINGS
SIX MONTHS ENDED JUNE 30,
(Unaudited)
2009 2008
------------ ------------
Net sales $ 48,687,617 $ 64,981,915
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Costs and expenses:
Cost of goods sold 32,998,920 43,415,437
Selling and administrative expenses 15,305,657 17,909,516
Interest expense 64,713 181,350
------------ ------------
48,369,290 61,506,303
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Earnings from continuing operations
before taxes on income 318,327 3,475,612
Taxes on income 120,000 1,350,000
------------ ------------
Earnings from continuing operations 198,327 2,125,612
Loss from discontinued operations, net
of tax benefits of $0 and $80,000,
respectively -- (145,969)
------------ ------------
Net earnings $ 198,327 $ 1,979,643
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Per Share Data:
Basic
Earnings from continuing operations $ 0.03 $ 0.32
Loss from discontinued operations,
net of tax benefits 0.00 (0.02)
------------ ------------
Net earnings $ 0.03 $ 0.30
============ ============
Diluted
Earnings from continuing operations $ 0.03 $ 0.32
Loss from discontinued operations,
net of tax benefits 0.00 (0.02)
------------ ------------
Net earnings $ 0.03 $ 0.30
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Cash dividends per common share $ 0.27 $ 0.27
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30,
(Unaudited)
ASSETS
------
2009 2008
----------- -----------
CURRENT ASSETS
Cash and cash equivalents $ 5,634,150 $ 879,333
Accounts receivable and other current
assets 18,246,222 21,868,605
Inventories 35,282,883 46,216,785
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TOTAL CURRENT ASSETS 59,163,255 68,964,723
PROPERTY, PLANT AND EQUIPMENT, NET 11,389,504 12,300,965
GOODWILL -- 1,617,411
OTHER INTANGIBLE ASSETS 416,778 654,936
DEFERRED INCOME TAXES 3,025,000 --
OTHER ASSETS 252,381 2,256,049
----------- -----------
$74,246,918 $85,794,084
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LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Accounts payable $ 4,730,988 $ 5,558,063
Other current liabilities 2,342,173 3,104,816
Current portion of long-term debt -- 1,439,337
----------- -----------
TOTAL CURRENT LIABILITIES 7,073,161 10,102,216
LONG-TERM DEBT -- 2,426,000
LONG-TERM PENSION LIABILITY 7,020,296 956,124
OTHER LONG-TERM LIABILITIES 690,000 690,000
DEFERRED INCOME TAXES -- 495,000
SHAREHOLDERS' EQUITY 59,463,461 71,124,744
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$74,246,918 $85,794,084
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CONTACT: Superior Uniform Group, Inc.
Andrew D. Demott, Jr., CFO
(727) 803-7135
Edelman
Michael McCullough
(404) 832-6372