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 | | For Immediate Release |
(727) 803-7135 | | |
SUPERIOR UNIFORM GROUP REPORTS FIRST QUARTER EARNINGS
SEMINOLE, Florida - April 22, 2005 – Michael Benstock, Chief Executive Officer of Superior Uniform Group, Inc. (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the first quarter ended March 31, 2005, sales were $31,857,089 compared with 2004 first quarter sales of $33,765,220. Net earnings were $139,443 or $.02 per share (diluted) compared to 2004 first quarter earnings of $1,130,468 or $.15 per share (diluted).
In making the earnings announcement, Mr. Benstock stated: “Our revenues and earnings were significantly affected by the January implementation of our new Warehouse Management System. Revenues were down approximately $1.9 million or 6% as compared to the first quarter of 2004. During the latter half of January and through the month of February, we experienced significant difficulty in shipping customer orders. As a result, sales for the first two months of the quarter were down approximately $2.8 million. We continue to improve the operating efficiency of the system and were able to make up approximately $900,000 in revenues during the month of March as compared to the prior year month. Our backlog of open orders at the end of the first quarter was approximately $7.5 million as compared to $6.0 million for the same period last year. Earnings were significantly impacted as a result of the decline in revenues and as a result of approximately $375,000 of increased overtime required to process orders during the quarter ended March 31, 2005. While the system is not yet operating at peak performance levels, we are seeing decreases in the overtime requirements and increasing revenue levels.”
Superior Uniform Group, through its Signature marketing brands – Fashion Seal®, Fashion Seal Healthcare™, Martin’s®, Worklon®, 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.
SUPERIOR UNIFORM GROUP, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
THREE MONTHS ENDED MARCH 31,
(Unaudited)
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| | 2005
| | 2004
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Net sales | | $ | 31,857,089 | | $ | 33,765,220 |
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Costs and expenses: | | | | | | |
Cost of goods sold | | | 21,515,614 | | | 22,538,900 |
Selling and administrative expenses | | | 9,980,168 | | | 9,317,791 |
Interest expense | | | 141,864 | | | 158,061 |
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| | | 31,637,646 | | | 32,014,752 |
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Earnings before taxes on income | | | 219,443 | | | 1,750,468 |
Taxes on income | | | 80,000 | | | 620,000 |
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Net earnings | | $ | 139,443 | | $ | 1,130,468 |
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Basic net earnings per common share | | $ | 0.02 | | $ | 0.15 |
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Diluted net earnings per common share | | $ | 0.02 | | $ | 0.15 |
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Dividends per common share | | $ | 0.135 | | $ | 0.135 |
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SUPERIOR UNIFORM GROUP, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31,
(Unaudited)
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| | 2005
| | | 2004
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ASSETS | | | | | | | | |
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CURRENT ASSETS: | | | | | | | | |
Cash and cash equivalents | | $ | 151,821 | | | $ | 11,869,778 | |
Accounts receivable and other current assets | | | 29,672,797 | | | | 28,047,092 | |
Inventories | | | 47,714,968 | | | | 37,410,289 | |
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TOTAL CURRENT ASSETS | | | 77,539,586 | | | | 77,327,159 | |
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PROPERTY, PLANT AND EQUIPMENT, NET | | | 21,725,009 | | | | 19,156,550 | |
GOODWILL | | | 1,617,411 | | | | 1,617,411 | |
OTHER INTANGIBLE ASSETS | | | 1,428,952 | | | | 1,681,083 | |
OTHER ASSETS | | | 7,425,616 | | | | 6,078,078 | |
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| | $ | 109,736,574 | | | $ | 105,860,281 | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
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CURRENT LIABILITIES: | | | | | | | | |
Accounts payable | | $ | 9,089,225 | | | $ | 6,336,597 | |
Accrued expenses | | | 4,097,143 | | | | 6,680,755 | |
Current portion of long-term debt | | | 1,945,386 | | | | 1,200,365 | |
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TOTAL CURRENT LIABILITIES | | | 15,131,754 | | | | 14,217,717 | |
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LONG-TERM DEBT | | | 7,298,781 | | | | 5,956,839 | |
DEFERRED INCOME TAXES | | | 855,000 | | | | 100,000 | |
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 7,450,937, and 7,422,437, respectively | | | 7,451 | | | | 7,422 | |
Additional paid-in capital | | | 15,396,596 | | | | 14,215,659 | |
Retained earnings | | | 71,259,992 | | | | 72,015,644 | |
Cumulative Comprehensive Income (Loss) | | | (213,000 | ) | | | (653,000 | ) |
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TOTAL SHAREHOLDERS’ EQUITY | | | 86,451,039 | | | | 85,585,725 | |
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| | $ | 109,736,574 | | | $ | 105,860,281 | |
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