Exhibit 99.1
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 | | 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 |
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Contact: Andrew D. Demott, Jr., CFO | | |
(727) 803-7135 | | FOR IMMEDIATE RELEASE |
SUPERIOR UNIFORM GROUP, INC. ANNOUNCES YEAR-END OPERATING RESULTS
SEMINOLE, Florida - February 25, 2004 – Superior Uniform Group, Inc. (AMEX: SGC), one of the nation’s largest manufacturers of uniforms, career apparel and accessories, announced today its fourth quarter and year-end operating results for 2003.
The Company announced that for the year ended December 31, 2003, sales were $134,324,365 compared to 2002 sales of $144,999,254. Net income for the year ended December 31, 2003 was $5,703,910 or $.78 per share (diluted) compared to $593,085 or $.08 per share (diluted) reported for the year ended December 31, 2002.
Net income for the year ended December 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.”
Mr. Gerald M. Benstock, Chairman of the Board, stated, “Although we continue to operate in an extremely competitive yet weak business climate in all of our major markets, we are gratified to report a 12% increase in earnings before cumulative effect of change in accounting principle and a 10% increase in diluted earnings per share before cumulative effect of change in accounting principle. Our working capital management has continued to improve and we were able to generate in excess of $13 million from operations in the current year. We anticipate that 2004 will be a roller coaster year for the economy with
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the upcoming elections, as well as the continued threat of terrorism. We have all been reading about the “jobless recovery” in the economy and our business will only experience stronger recovery when employment numbers begin to rebound. In spite of this, we feel optimistic about the Company’s prospects for 2004.”
Superior Uniform Group, through its marketing divisions – Fashion Seal Uniforms®, Martin’s®, Empire®, Fashion Seal Hospitality™, 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 for 2003 are as follows:
Superior Uniform Group, Inc. and Subsidiary
Consolidated Summary of Operations
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| | | Three Months Ended December 31,
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| | | 2003
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Net sales | | $ | 33,969,584 | | $ | 36,234,148 |
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Costs and expenses: | | | | | | |
Cost of goods sold | | | 21,585,814 | | | 23,762,338 |
Selling and administrative expenses | | | 9,417,065 | | | 9,737,605 |
Interest expense | | | 171,933 | | | 178,425 |
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| | | | 31,174,812 | | | 33,678,368 |
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Earnings before taxes on income | | | 2,794,772 | | | 2,555,780 |
Taxes on income | | | 990,000 | | | 950,000 |
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Net earnings | | $ | 1,804,772 | | $ | 1,605,780 |
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Basic net earnings per common share | | $ | 0.25 | | $ | 0.23 |
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Diluted net earnings per common share | | $ | 0.24 | | $ | 0.22 |
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Dividends per common share | | $ | 0.135 | | $ | 0.135 |
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Superior Uniform Group, Inc. and Subsidiary
Consolidated Summary of Operations
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| | | Twelve Months Ended December 31,
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| | | 2003
| | 2002
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Net sales | | $ | 134,324,365 | | $ | 144,999,254 | |
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Costs and expenses: | | | | | | | |
Cost of goods sold | | | 86,207,906 | | | 95,221,013 | |
Selling and administrative expenses | | | 38,616,045 | | | 40,932,512 | |
Interest expense | | | 696,504 | | | 853,081 | |
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| | | | 125,520,455 | | | 137,006,606 | |
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Earnings before taxes on income, and cumulative effect of change in accounting principle | | | 8,803,910 | | | 7,992,648 | |
Taxes on income | | | 3,100,000 | | | 2,895,000 | |
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Earnings before cumulative effect of change in accounting principle | | | 5,703,910 | | | 5,097,648 | |
Cumulative effect of change in accounting principle, net of tax benefit of $2,560,000 | | | — | | | (4,504,563 | ) |
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Net earnings | | $ | 5,703,910 | | $ | 593,085 | |
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Basic net earnings per common share: | | | | | | | |
Earnings before cumulative effect of change in accounting principle | | $ | 0.79 | | $ | 0.72 | |
Cumulative effect of change in accounting principle, net of tax | | | — | | | (0.64 | ) |
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Basic net earnings per common share | | $ | 0.79 | | $ | 0.08 | |
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Diluted net earnings per common share: | | | | | | | |
Earnings before extraordinary item and cumulative effect of change in accounting principle | | $ | 0.78 | | $ | 0.71 | |
Cumulative effect of change in accounting principle, net of tax | | | — | | | (0.63 | ) |
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Diluted net earnings per common share | | $ | 0.78 | | $ | 0.08 | |
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Dividends per common share | | $ | 0.54 | | $ | 0.54 | |
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Superior Uniform Group, Inc. and Subsidiary
Consolidated Balance Sheets
December 31,
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ASSETS | | | | | | | | |
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CURRENT ASSETS | | | | | | | | |
Cash and cash equivalents | | $ | 14,915,079 | | | $ | 7,470,719 | |
Accounts receivable, less allowance for doubtful accounts of $475,000 and $565,000, respectively | | | 24,419,287 | | | | 20,413,202 | |
Inventories | | | 36,380,470 | | | | 42,655,934 | |
Prepaid expenses and other current assets | | | 2,156,065 | | | | 3,270,339 | |
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TOTAL CURRENT ASSETS | | | 77,870,901 | | | | 73,810,194 | |
PROPERTY, PLANT AND EQUIPMENT, NET | | | 18,289,436 | | | | 20,059,164 | |
GOODWILL | | | 741,929 | | | | 741,929 | |
OTHER ASSETS | | | 6,071,667 | | | | 5,215,665 | |
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| | | $ | 102,973,933 | | | $ | 99,826,952 | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
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CURRENT LIABILITIES | | | | | | | | |
Accounts payable | | $ | 5,400,401 | | | $ | 5,191,993 | |
Accrued expenses | | | 5,078,982 | | | | 5,825,422 | |
Current portion of long-term debt | | | 1,179,021 | | | | 1,104,080 | |
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TOTAL CURRENT LIABILITIES | | | 11,658,404 | | | | 12,121,495 | |
LONG-TERM DEBT | | | 6,266,047 | | | | 7,445,068 | |
DEFERRED INCOME TAXES | | | 165,000 | | | | 150,000 | |
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 - 7,370,612 and 7,131,237, respectively. | | | 7,371 | | | | 7,131 | |
Additional paid-in capital | | | 13,641,223 | | | | 10,620,073 | |
Retained earnings | | | 71,883,888 | | | | 70,387,185 | |
Other comprehensive income (loss): | | | | | | | | |
Cash flow hedges | | | (648,000 | ) | | | (904,000 | ) |
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TOTAL SHAREHOLDERS’ EQUITY | | | 84,884,482 | | | | 80,110,389 | |
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| | | $ | 102,973,933 | | | $ | 99,826,952 | |
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