EXHIBIT 99.1
[SUPERIOR UNIFORM GROUP, INC. LOGO]
NEWS RELEASE
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 SECOND QUARTER RESULTS
SEMINOLE, Florida—July 24, 2003 – Superior Uniform Group, Inc., (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2003, sales were $34,187,586 compared with 2002 second quarter sales of $38,442,104. Net income was $1,283,065 or $.18 per share (diluted), compared with net income of $1,489,494 or $.21 per share (diluted) in the 2002 second quarter.
For the six months ended June 30, 2003, sales were $65,142,533, compared with sales of $72,090,330 in the six months ended June 30, 2002. Income before cumulative effect of change in accounting principle for the six months ended June 30, 2003 was $1,909,251 or $0.26 per share (diluted), compared to $1,910,985 or $0.27 per share (diluted) reported in the first six months of 2002. Net income for the six months ended June 30, 2003 was $1,909,251 or $0.26 per common share (diluted) versus a net loss of $2,593,578 or $.36 per common share (diluted) in the first six months of 2002.
Gerald M. Benstock, Chairman and C.E.O., commented: “As the economy remains sluggish and our customers continue to limit hiring and spending, and employee turnover remains very low, our sales have continued to be negatively affected. As a result, our sales declined 11% in the current quarter. We are upgrading our sales force and are aggressively pursuing new sales opportunities despite the weak economic conditions and are poised to capitalize when the economy does rebound. We are working to upgrade our management team and continue to actively review our corporate cost structure. We have further improved our gross margins in the current quarter through improved sourcing and are in an excellent position to provide competitively priced product
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to the market. Our financial condition is extremely strong and allows us to continue to invest in our business despite the severe economic conditions. We continue to generate significant cash from operations and have reduced our outstanding debt below our cash balance at the end of the current quarter.”
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.
Comparative figures are as follows:
| SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY | ||||||
| CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS | ||||||
(Unaudited)
| ||||||
| Three Months Ended June 30, | ||||||
| 2003 | 2002 | |||||
Net sales | $ | 34,187,586 | $ | 38,442,104 | ||
Costs and expenses: | ||||||
Cost of goods sold | 22,036,004 | 25,256,461 | ||||
Selling and administrative expenses | 9,987,399 | 10,653,193 | ||||
Interest expense | 181,118 | 192,956 | ||||
| 32,204,521 | 36,102,610 | |||||
Earnings before taxes on income | 1,983,065 | 2,339,494 | ||||
Taxes on income | 700,000 | 850,000 | ||||
Net earnings | $ | 1,283,065 | $ | 1,489,494 | ||
Basic net earnings per common share | $ | 0.18 | $ | 0.21 | ||
Diluted net earnings per common share | $ | 0.18 | $ | 0.21 | ||
Dividends per common share | $ | 0.135 | $ | 0.135 | ||
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| SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY | |||||||
| CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS | |||||||
(Unaudited)
| |||||||
| Six Months Ended June 30, | |||||||
| 2003 | 2002 | ||||||
Net sales | $ | 65,142,533 | $ | 72,090,330 | |||
Costs and expenses: | |||||||
Cost of goods sold | 42,051,459 | 47,363,346 | |||||
Selling and administrative expenses | 19,790,064 | 21,233,239 | |||||
Interest expense | 351,759 | 487,760 | |||||
| 62,193,282 | 69,084,345 | ||||||
Earnings before taxes on income and cumulativeeffect of change in accounting principle | 2,949,251 | 3,005,985 | |||||
Taxes on income | 1,040,000 | 1,095,000 | |||||
Earnings before cumulative effect of change in accounting principle | 1,909,251 | 1,910,985 | |||||
Cumulative effect of change in accounting principle, net of tax benefit of $2,560,000 | — | (4,504,563 | ) | ||||
Net earnings (loss) | $ | 1,909,251 | $ | (2,593,578 | ) | ||
Basic earnings (loss) per common share before cumulative effect of change in accounting principle | $ | 0.27 | $ | 0.27 | |||
Cumulative effect of change in accounting principle, net of tax | — | (0.64 | ) | ||||
Basic net earnings (loss) per common share | $ | 0.27 | $ | (0.37 | ) | ||
Diluted earnings (loss) per common share before cumulative effect of change in accounting principle | $ | 0.26 | $ | 0.27 | |||
Cumulative effect of change in accounting principle, net of tax | — | (0.63 | ) | ||||
Diluted net earnings (loss) per common share | $ | 0.26 | $ | (0.36 | ) | ||
Dividends per common share | $ | 0.27 | $ | 0.27 | |||
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| SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| JUNE 30, | ||||||||
(Unaudited)
| ||||||||
| ASSETS | ||||||||
| 2003 | 2002 | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 9,668,710 | $ | 3,374,941 | ||||
Accounts receivable and other current assets | 23,104,081 | 26,213,673 | ||||||
Inventories | 40,445,414 | 42,824,277 | ||||||
TOTAL CURRENT ASSETS | 73,218,205 | 72,412,891 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 19,160,200 | 21,585,597 | ||||||
GOODWILL | 741,929 | 741,929 | ||||||
OTHER ASSETS | 5,434,661 | 3,655,131 | ||||||
DEFERRED INCOME TAXES | — | 950,000 | ||||||
| $ | 98,554,995 | $ | 99,345,548 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 4,797,176 | $ | 5,401,108 | ||||
Other current liabilities | 5,660,088 | 6,325,170 | ||||||
Current portion of long-term debt | 1,140,809 | 1,067,293 | ||||||
TOTAL CURRENT LIABILITIES | 11,598,073 | 12,793,571 | ||||||
LONG-TERM DEBT | 6,865,679 | 8,006,488 | ||||||
DEFERRED INCOME TAXES | 10,000 | — | ||||||
SHAREHOLDERS’ EQUITY: | ||||||||
Preferred stock, $1 par value—authorized 300,000 shares (none issued) | ||||||||
Common stock, $.001 par value—authorized 50,000,000 shares; issued and outstanding 7,138,762 and 7,080,012, respectively |
| 7,139 |
|
| 7,080 |
| ||
Additional paid-in capital | 10,941,231 | 10,058,065 | ||||||
Retained earnings | 70,053,873 | 69,270,536 | ||||||
Cumulative Comprehensive Income (Loss) | (921,000 | ) | (790,192 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 80,081,243 | 78,545,489 | ||||||
| $ | 98,554,995 | $ | 99,345,548 | |||||
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