EXHIBIT 99.1
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| | | NEWS RELEASE |
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| | | 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 REPORTS SECOND QUARTER RESULTS
SEMINOLE, Florida - July 22, 2004 – Superior Uniform Group, Inc., (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2004, sales were $34,470,407 compared with 2003 second quarter sales of $34,187,586. Net income was $1,277,333 or $0.17 per share (diluted), compared with net income of $1,283,065 or $0.18 per share (diluted) in the 2003 second quarter.
For the six months ended June 30, 2004, sales were $67,445,795, compared with sales of $65,142,533 in the six months ended June 30, 2003. Net income for the six months ended June 30, 2004 was $2,407,801 or $0.32 per share (diluted) versus a net income of $1,909,251 or $0.26 per share (diluted) in the first six months of 2003.
Michael Benstock, Chief Executive Officer, commented: “The slight increase in revenues for the second quarter resulted from the first quarter acquisition of UniVogue and increasing revenues from several new national account contracts signed near the end of 2003 offset by continued soft demand from our existing customers. Our earnings remained essentially flat in comparison to the prior year quarter due to several factors. We have continued to invest in our sales and marketing management team as we continue the transition from a manufacturing focused organization to a sales and marketing driven organization. We believe that these investments will enhance our ability to grow sales and earnings in the future. Additionally, we incurred approximately $190,000, in pre-tax costs relative to the upgrade of SAP, our Enterprise Resource Planning system, which was completed successfully in the second quarter and $110,000 in outside consulting to help us prepare for compliance with Section 404 of the Sarbanes-Oxley Act, which is ongoing.”
Superior Uniform Group, through its marketing divisions – Fashion Seal Uniforms®, Martin’s®, Empire®, Fashion Seal Hospitality, Worklon®, Universal®, Sope Creek® and UniVogue – 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.
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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)
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| | | Three Months Ended June 30,
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| | | 2004
| | 2003
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Net sales | | $ | 34,470,407 | | $ | 34,187,586 |
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Costs and expenses: | | | | | | |
Cost of goods sold | | | 22,389,285 | | | 22,036,004 |
Selling and administrative expenses | | | 9,987,212 | | | 9,987,399 |
Interest expense | | | 156,577 | | | 181,118 |
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| | | | 32,533,074 | | | 32,204,521 |
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Earnings before taxes on income | | | 1,937,333 | | | 1,983,065 |
Taxes on income | | | 660,000 | | | 700,000 |
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Net earnings | | $ | 1,277,333 | | $ | 1,283,065 |
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Basic net earnings per common share | | $ | 0.17 | | $ | 0.18 |
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Diluted net earnings per common share | | $ | 0.17 | | $ | 0.18 |
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Dividends per common share | | $ | 0.135 | | $ | 0.135 |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
(Unaudited)
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| | | Six Months Ended June 30,
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| | | 2004
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Net sales | | $ | 67,445,795 | | $ | 65,142,533 |
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Costs and expenses: | | | | | | |
Cost of goods sold | | | 43,691,386 | | | 42,051,459 |
Selling and administrative expenses | | | 19,751,970 | | | 19,790,064 |
Interest expense | | | 314,638 | | | 351,759 |
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| | | | 63,757,994 | | | 62,193,282 |
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Earnings before taxes on income | | | 3,687,801 | | | 2,949,251 |
Taxes on income | | | 1,280,000 | | | 1,040,000 |
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Net earnings | | $ | 2,407,801 | | $ | 1,909,251 |
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Basic net earnings per common share | | $ | 0.32 | | $ | 0.27 |
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Diluted net earnings per common share | | $ | 0.32 | | $ | 0.26 |
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Dividends per common share | | $ | 0.27 | | $ | 0.27 |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
JUNE 30,
(Unaudited)
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| | | 2004
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ASSETS | | | | | | | | |
CURRENT ASSETS | | | | | | | | |
Cash and cash equivalents | | $ | 8,353,750 | | | $ | 9,668,710 | |
Accounts receivable | | | 28,785,231 | | | | 23,104,081 | |
Inventories | | | 37,958,123 | | | | 40,445,414 | |
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TOTAL CURRENT ASSETS | | | 75,097,104 | | | | 73,218,205 | |
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PROPERTY, PLANT AND EQUIPMENT, NET | | | 19,944,151 | | | | 19,160,200 | |
GOODWILL | | | 741,929 | | | | 741,929 | |
OTHER INTANGIBLE ASSETS | | | 2,475,536 | | | | — | |
OTHER ASSETS | | | 6,200,333 | | | | 5,434,661 | |
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| | | $ | 104,459,053 | | | $ | 98,554,995 | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | |
Accounts payable | | $ | 5,909,730 | | | $ | 4,797,176 | |
Accrued expenses | | | 4,897,857 | | | | 5,660,088 | |
Current portion of long-term debt | | | 1,221,216 | | | | 1,140,809 | |
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TOTAL CURRENT LIABILITIES | | | 12,028,803 | | | | 11,598,073 | |
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LONG-TERM DEBT | | | 5,644,464 | | | | 6,865,679 | |
DEFERRED INCOME TAXES | | | 300,000 | | | | 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 7,455,387 and 7,138,762, respectively | | | 7,455 | | | | 7,139 | |
Additional paid-in capital | | | 14,593,022 | | | | 10,941,231 | |
Retained earnings | | | 72,288,309 | | | | 70,053,873 | |
Cumulative Comprehensive Income (Loss) | | | (403,000 | ) | | | (921,000 | ) |
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TOTAL SHAREHOLDERS' EQUITY | | | 86,485,786 | | | | 80,081,243 | |
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| | | $ | 104,459,053 | | | $ | 98,554,995 | |
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