EXHIBIT 99.1
Superior Uniform Group, Inc. Reports Operating Results for 2009
- Cash flows from operations increases 67.4% to $17.5 million
- Debt free balance sheet
SEMINOLE, Fla., Feb. 25, 2010 (GLOBE NEWSWIRE) -- Superior Uniform Group, Inc. (Nasdaq:SGC), manufacturer of uniforms, image apparel and accessories, today announced its fourth quarter and year-end operating results for 2009.
The Company announced that for the year ended December 31, 2009, net sales decreased 16.9% to $102,801,921, compared to 2008 net sales of $123,745,201. Earnings from continuing operations were $1,966,882 or $.33 per share (diluted) compared to $2,290,333 or $.35 per share (diluted) reported for the year ended December 31, 2008. Earnings from continuing operations for the year and for the fourth quarter ended December 31, 2008 include a non-cash goodwill impairment loss of $1,617,411. Net of the related tax benefit, the goodwill impairment loss amounted to approximately ($.20) per share (diluted).
Net earnings for the year ended December 31, 2009 were $1,966,882 or $.33 per share (diluted) compared to $2,133,773 or $.33 per share (diluted) reported for the year ended December 31, 2008.
Earnings from continuing operations for the fourth quarter ended December 31, 2009, were $511,601 or $0.09 per share (diluted) compared to a loss from continuing operations for the fourth quarter ended December 31, 2008, of $(820,065) or $(.13) per share (diluted).
Net earnings for the fourth quarter ended December 31, 2009 was $511,601 or $0.09 per share (diluted) compared to a net loss of $(822,015) or $(.13) per share (diluted) reported for the fourth quarter ended December 31, 2008.
Michael Benstock, Chief Executive Officer, commented: "From an overall economic standpoint, 2009 was one of the most challenging years in our history. While our sales were down 16.9% on a year over year basis, we showed steady improvement in our sales profile from a first quarter decrease in net sales of 28.7% to a decrease in net sales of 5.8% in the fourth quarter. Additionally, we made significant progress reducing our operating costs through the increased use of our Central American subsidiary, The Office Gurus, and improved operating efficiency. We have generated in excess of $17 million in cash from operations this year and we have eliminated all of our outstanding debt. Our financial position remains very strong and has allowed us to successfully weather this current economic storm while continuing to invest in the future growth of our company. We completed the acquisition of Blade Sportswear at the beginning of November and we are actively pursuing other potential strate gic acquisitions to help further this objective. 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 441,000 shares as of December 31, 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 (www.theofficegurus.com) enhances the overall customer experience for their strategic partners' internal and external customers.
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 for 2009 and 2008 are as follows:
| Superior Uniform Group, Inc. and Subsidiaries | | | | |
| Consolidated Summary of Operations | | | | |
| | | | | |
| | | Three Months Ended December 31, |
| | | (Unaudited) |
| | | 2009 | | 2008 |
| Net sales | | $ 26,508,907 | | $ 28,150,111 |
| | | | | |
| Costs and expenses: | | | | |
| Cost of goods sold | | 17,945,367 | | 19,438,191 |
| Selling and administrative expenses | | 7,855,370 | | 7,883,310 |
| Goodwill impairment loss | | -- | | 1,617,411 |
| Interest expense | | 26,569 | | 71,264 |
| | | 25,827,306 | | 29,010,176 |
| | | | | |
| Earnings (loss) from continuing operations before taxes on income | | 681,601 | | (860,065) |
| Taxes on income | | 170,000 | | (40,000) |
| Earnings (loss) from continuing operations | | 511,601 | | (820,065) |
| Loss from discontinued operations, net of tax benefit of $-0- and $-0--, respectively | -- | | (1,950) |
| Net earnings (loss) | | $ 511,601 | | $ (822,015) |
| | | | | |
| Per Share Data: | | | | |
| Basic: | | | | |
| Earnings (loss) from continuing operations | | $ 0.09 | | $ (0.13) |
| Loss from discontinued operations | | -- | | -- |
| Net earnings (loss) | | $ 0.09 | | $ (0.13) |
| Diluted: | | | | |
| Earnings (loss) from continuing operations | | $ 0.09 | | $ (0.13) |
| Loss from discontinued operations | | -- | | -- |
| Net earnings (loss) | | $ 0.09 | | $ (0.13) |
| | | | | |
| Cash dividends per common share | | $ 0.135 | | $ 0.135 |
| Superior Uniform Group, Inc. and Subsidiaries | | | | |
| Consolidated Summary of Operations | | | | |
| | | | | |
| | | | | |
| | | Twelve Months Ended December 31, |
| | | (Unaudited) |
| | | 2009 | | 2008 |
| Net sales | | $ 102,801,921 | | $ 123,745,201 |
| | | | | |
| Costs and expenses: | | | | |
| Cost of goods sold | | 69,583,043 | | 83,402,581 |
| Selling and administrative expenses | | 30,402,389 | | 34,263,750 |
| Goodwill impairment loss | | -- | | 1,617,411 |
| Interest expense | | 119,607 | | 321,126 |
| | | 100,105,039 | | 119,604,868 |
| | | | | |
| Earnings from continuing operations before taxes on income | | 2,696,882 | | 4,140,333 |
| Taxes on income | | 730,000 | | 1,850,000 |
| Earnings from continuing operations | | 1,966,882 | | 2,290,333 |
| Loss from discontinued operations, net of tax benefits of $-0- and $90,000, respectively | | -- | | (156,560) |
| Net earnings | | $ 1,966,882 | | $ 2,133,773 |
| | | | | |
| Per Share Data: | | | | |
| Basic: | | | | |
| Earnings from continuing operations | | $ 0.33 | | $ 0.35 |
| Loss from discontinued operations | | 0.00 | | (0.02) |
| Net earnings | | $ 0.33 | | $ 0.33 |
| Diluted: | | | | |
| Earnings from continuing operations | | $ 0.33 | | $ 0.35 |
| Loss from discontinued operations | | 0.00 | | (0.02) |
| Net earnings | | $ 0.33 | | $ 0.33 |
| | | | | |
| Cash dividends per common share | | $ 0.54 | | $ 0.54 |
| Superior Uniform Group, Inc. and Subsidiaries | | | | |
| | | | | | |
| Consolidated Balance Sheets | | | | |
| December 31, | | | | | |
| | | | | | |
| ASSETS |
| (Unaudited) |
| | | | 2009 | | 2008 |
| CURRENT ASSETS | | | | |
| Cash and cash equivalents | | $ 6,365,557 | | $ 133,152 |
| Accounts receivable | | 17,944,529 | | 17,464,279 |
| Inventories | | | 32,053,504 | | 43,410,146 |
| Prepaid expenses and other current assets | | 2,764,434 | | 2,590,350 |
| TOTAL CURRENT ASSETS | | 59,128,024 | | 63,597,927 |
| PROPERTY, PLANT AND EQUIPMENT, NET | | 10,868,296 | | 12,587,454 |
| OTHER INTANGIBLE ASSETS | | 1,295,859 | | 535,857 |
| DEFERRED INCOME TAXES | | 2,060,000 | | 2,610,000 |
| OTHER ASSETS | | 215,684 | | 260,039 |
| | | $ 73,567,863 | | $79,591,277 |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY |
| | | | | | |
| CURRENT LIABILITIES | | | | |
| Accounts payable | | 5,426,433 | | 4,626,789 |
| Accrued expenses | | 2,226,653 | | 2,518,956 |
| Current portion of long-term debt | | -- | | 650,604 |
| TOTAL CURRENT LIABILITIES | | 7,653,086 | | 7,796,349 |
| LONG-TERM DEBT | | -- | | 3,379,000 |
| LONG-TERM PENSION LIABILITY | | 5,115,817 | | 7,056,055 |
| OTHER LONG-TERM LIABILITIES | | 680,000 | | 665,000 |
| COMMITMENTS AND CONTINGENCIES | | | | |
| TOTAL SHAREHOLDERS' EQUITY | | 60,118,960 | | 60,694,873 |
| | 73,567,863 | | 79,591,277 |
CONTACT: Superior Uniform Group, Inc.
Andrew D. Demott, Jr., CFO
(727) 803-7135