EXHIBIT 99.1
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 ANNOUNCES CONTINUED
IMPROVEMENT IN OPERATING RESULTS
SEMINOLE, Florida – October 26, 2006 – Superior Uniform Group, Inc. (AMEX: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the third quarter ended September 30, 2006, net sales were $33,440,168 compared with 2005 third quarter net sales of $34,194,000. Net earnings were $912,215 or $.14 per common share (diluted), compared with net earnings of $158,550 or $.02 per common share (diluted) in the 2005 third quarter.
For the nine months ended September 30, 2006, net sales were $96,081,293, compared with net sales of $100,910,004 in the nine months ended September 30, 2005. Net earnings for the nine months ended September 30, 2006 were $2,094,109 or $.30 per common share (diluted) versus net earnings of $944,524 or $.13 per common share (diluted) in the first nine months of 2005.
Michael Benstock, Chief Executive Officer, commented: “We are very pleased with our operating results for the current quarter. Net earnings increased over 475% as a result of our previously announced cost-saving measures as well as continued improvements in our gross margins. Our service issues that we experienced in the first half of 2005 are behind us and we are actively working to improve our customers’ experience at every point of contact with the Company.
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While our sales were down slightly for the quarter in comparison to the prior year quarter, they have increased almost 7% versus the average sales in our first two quarters of this year. We are experiencing success in our sales initiatives in our target markets and continue to rebuild our sales base. We are very optimistic about our position in the market and expect to continue to report improving operating results as we go forward.”
Superior Uniform Group®, through its Signature marketing brands – Fashion Seal®, Fashion Seal Healthcare™, Martin’s®, Worklon®, UniVogue™ and Sope Creek® – 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
(Unaudited)
| | | | | | | | |
| | | | | Three Months Ended
September 30, |
| | | | | 2006 | | 2005 |
Net sales | | | | $ | 33,440,168 | | $ | 34,194,000 |
| | | | | | | | |
Costs and expenses: | | | | | | | | |
Cost of goods sold | | | | | 22,917,781 | | | 24,336,581 |
Selling and administrative expenses | | | | | 8,939,397 | | | 9,465,415 |
Interest expense | | | | | 110,775 | | | 163,454 |
| | | | | | | | |
| | | | | 31,967,953 | | | 33,965,450 |
| | | | | | | | |
Earnings before taxes on income | | | | | 1,472,215 | | | 228,550 |
Taxes on income | | | | | 560,000 | | | 70,000 |
| | | | | | | | |
Net earnings | | | | $ | 912,215 | | $ | 158,550 |
| | | | | | | | |
| | | |
Weighted average number of shares outstanding during the period | | (Basic) | | | 6,619,404 | | | 7,447,700 |
| | (Diluted) | | | 6,661,217 | | | 7,511,157 |
| | | |
Basic net earnings per common share | | | | $ | 0.14 | | $ | 0.02 |
| | | | | | | | |
Diluted net earnings per common share | | | | $ | 0.14 | | $ | 0.02 |
| | | | | | | | |
| | | |
Dividends per common share | | | | $ | 0.135 | | $ | 0.135 |
| | | | | | | | |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
(Continued)
(Unaudited)
| | | | | | | | |
| | | | | Nine Months Ended
September 30, |
| | | | | 2006 | | 2005 |
Net sales | | | | $ | 96,081,293 | | $ | 100,910,004 |
| | | | | | | | |
Costs and expenses: | | | | | | | | |
Cost of goods sold | | | | | 65,499,895 | | | 69,909,426 |
Selling and administrative expenses | | | | | 26,830,867 | | | 29,109,101 |
Interest expense | | | | | 346,422 | | | 466,953 |
| | | | | | | | |
| | | | | 92,677,184 | | | 99,485,480 |
| | | | | | | | |
Earnings before taxes on income | | | | | 3,404,109 | | | 1,424,524 |
Taxes on income | | | | | 1,310,000 | | | 480,000 |
| | | | | | | | |
Net earnings | | | | $ | 2,094,109 | | $ | 944,524 |
| | | | | | | | |
| | | |
Weighted average number of shares outstanding during the period | | (Basic) | | | 6,933,373 | | | 7,446,681 |
| | (Diluted) | | | 6,966,694 | | | 7,527,380 |
| | | |
Basic net earnings per common share | | | | $ | 0.30 | | $ | 0.13 |
| | | | | | | | |
Diluted net earnings per common share | | | | $ | 0.30 | | $ | 0.13 |
| | | | | | | | |
| | | |
Dividends per common share | | | | $ | 0.405 | | $ | 0.405 |
| | | | | | | | |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(Unaudited)
| | | | | | | | |
| | | September 30,
2006 | | | September 30,
2005 | |
CURRENT ASSETS: | | | | | | | | |
Cash and cash equivalents | | $ | 4,602,985 | | | $ | 172,233 | |
Accounts receivable and other current assets | | | 29,956,508 | | | | 32,747,705 | |
Inventories | | | 32,759,012 | | | | 39,868,816 | |
| | | | | | | | |
| | |
TOTAL CURRENT ASSETS | | | 67,318,505 | | | | 72,788,754 | |
| | |
PROPERTY, PLANT AND EQUIPMENT, NET | | | 16,034,839 | | | | 21,128,490 | |
GOODWILL | | | 1,617,411 | | | | 1,617,411 | |
OTHER INTANGIBLE ASSETS | | | 1,071,714 | | | | 1,309,873 | |
OTHER ASSETS | | | 2,702,533 | | | | 7,658,088 | |
| | | | | | | | |
| | $ | 88,745,002 | | | $ | 104,502,616 | |
| | | | | | | | |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | |
| | |
CURRENT LIABILITIES: | | | | | | | | |
Accounts payable | | $ | 6,697,411 | | | $ | 7,638,823 | |
Other current liabilities | | | 3,294,872 | | | | 3,697,342 | |
Current portion of long-term debt | | | 1,752,705 | | | | 1,660,180 | |
| | | | | | | | |
| | |
TOTAL CURRENT LIABILITIES | | | 11,744,988 | | | | 12,996,345 | |
| | |
LONG-TERM DEBT | | | 2,573,953 | | | | 6,805,657 | |
DEFERRED INCOME TAXES | | | 790,000 | | | | 865,000 | |
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 6,597,994 and 7,342,393, respectively | | | 6,598 | | | | 7,343 | |
Additional paid-in capital | | | 15,134,380 | | | | 15,455,031 | |
Retained earnings | | | 58,542,083 | | | | 68,515,240 | |
Cumulative comprehensive loss | | | (47,000 | ) | | | (142,000 | ) |
| | | | | | | | |
| | |
TOTAL SHAREHOLDERS' EQUITY | | | 73,636,061 | | | | 83,835,614 | |
| | | | | | | | |
| | |
| | $ | 88,745,002 | | | $ | 104,502,616 | |
| | | | | | | | |
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