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 27, 2006 - Superior Uniform Group, Inc., (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2006, sales were $31,504,585 compared with 2005 second quarter sales of $34,858,915. Net income was $629,668 or $.09 per share (diluted), compared with net income of $646,533 or $.09 per share (diluted) in the 2005 second quarter.
For the six months ended June 30, 2006, sales were $62,641,128, compared with sales of $66,716,004 in the six months ended June 30, 2005. Net income for the six months ended June 30, 2006 was $1,181,894 or $.17 per share (diluted), versus a net income of $785,975 or $.10 per share (diluted) in the first six months of 2005.
Michael Benstock, Chief Executive Officer, commented: “Our decrease in sales revenue in the second quarter is attributed to several factors: First, the prior year second quarter included revenues of approximately $1.5 million carried over from the first quarter of 2005 due to the difficulties we encountered in delivering product during the warehouse upgrade. Secondly, approximately $0.9 million in sales to one customer that shipped in the second quarter of 2005 will be shipping in the third quarter of 2006. The remainder of the decline is attributed primarily to lost volume due to service issues experienced early in 2005. These declines have more than offset the additional business that we have added in the hospitality and government services markets in the current period. We are continuing to see increased opportunities in these markets; however, we are still in a position of having to replace business that was lost during the last year primarily as a result of our service
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issues. While we are disappointed with the sales profile of the Company, we continue to see benefits from our prior year cost savings measures and expect to continue to report improved earnings results. We are actively engaged in pursuing our newest sales initiatives, as well as evaluating our sales coverage in all markets. Additionally, our Customer Excellence (C1) program is in full swing and is geared towards improving the customer experience at every point of contact with the Company as we continue to focus our efforts on tapping the potential of our primary markets.”
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, image apparel and accessories. Superior specializes in managing comprehensive uniform programs, and is dedicated to servicing the Healthcare, Hospitality, Restaurant/Food Services, Retail Employee I.D., Governmental/Public Safety, Entertainment, Commercial, Transportation, Cleanroom, Corporate Identity and Resortwear markets. For more information, please visitwww.superioruniformgroup.com.
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
Three Months Ended June 30,
(Unaudited)
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| | | 2006 | | 2005 |
Net sales | | $ | 31,504,585 | | $ | 34,858,915 |
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Costs and expenses: | | | | | | |
Cost of goods sold | | | 21,550,704 | | | 24,057,231 |
Selling and administrative expenses | | | 8,858,648 | | | 9,663,516 |
Interest expense | | | 115,565 | | | 161,635 |
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| | | 30,524,917 | | | 33,882,382 |
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Earnings before taxes on income | | | 979,668 | | | 976,533 |
Taxes on income | | | 350,000 | | | 330,000 |
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Net earnings | | $ | 629,668 | | $ | 646,533 |
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Basic net earnings per common share | | $ | 0.09 | | $ | 0.09 |
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Diluted net earnings per common share | | $ | 0.09 | | $ | 0.09 |
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Dividends per common share | | $ | 0.135 | | $ | 0.135 |
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Six Months Ended June 30,
(Unaudited)
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| | | 2006 | | 2005 |
Net sales | | $ | 62,641,128 | | $ | 66,716,004 |
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Costs and expenses: | | | | | | |
Cost of goods sold | | | 42,582,114 | | | 45,572,844 |
Selling and administrative expenses | | | 17,891,473 | | | 19,643,686 |
Interest expense | | | 235,647 | | | 303,499 |
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| | | 60,709,234 | | | 65,520,029 |
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Earnings before taxes on income | | | 1,931,894 | | | 1,195,975 |
Taxes on income | | | 750,000 | | | 410,000 |
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Net earnings | | $ | 1,181,894 | | $ | 785,975 |
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Basic net earnings per common share | | $ | 0.17 | | $ | 0.11 |
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Diluted net earnings per common share | | $ | 0.17 | | $ | 0.10 |
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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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| | | 2006 | | | 2005 | |
| ASSETS | | | | | | | | |
CURRENT ASSETS | | | | | | | | |
Cash and cash equivalents | | $ | 4,841,570 | | | $ | 152,128 | |
Accounts receivable and other current assets | | | 28,885,598 | | | | 31,203,207 | |
Inventories | | | 34,036,505 | | | | 44,895,222 | |
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TOTAL CURRENT ASSETS | | | 67,763,673 | | | | 76,250,557 | |
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PROPERTY, PLANT AND EQUIPMENT, NET | | | 16,620,321 | | | | 21,786,395 | |
GOODWILL | | | 1,617,411 | | | | 1,617,411 | |
OTHER INTANGIBLE ASSETS | | | 1,131,254 | | | | 1,369,413 | |
OTHER ASSETS | | | 2,832,631 | | | | 7,466,794 | |
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| | $ | 89,965,290 | | | $ | 108,490,570 | |
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | |
Accounts payable | | $ | 5,776,013 | | | $ | 7,228,239 | |
Accrued expenses | | | 3,625,919 | | | | 4,181,252 | |
Current portion of long-term debt | | | 1,729,909 | | | | 1,967,658 | |
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TOTAL CURRENT LIABILITIES | | | 11,131,841 | | | | 13,377,149 | |
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LONG-TERM DEBT | | | 2,937,226 | | | | 8,153,135 | |
DEFERRED INCOME TAXES | | | 809,000 | | | | 960,000 | |
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 6,716,564 and 7,445,555, respectively | | | 6,717 | | | | 7,446 | |
Additional paid-in capital | | | 15,212,000 | | | | 15,452,463 | |
Retained earnings | | | 59,896,506 | | | | 70,760,377 | |
Cumulative Comprehensive Income (Loss) | | | (28,000 | ) | | | (220,000 | ) |
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TOTAL SHAREHOLDERS’ EQUITY | | | 75,087,223 | | | | 86,000,286 | |
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| | $ | 89,965,290 | | | $ | 108,490,570 | |
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