EXHIBIT 99.1
NEWS RELEASE
Superior Uniform Group, Inc.
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 REPORTS SECOND QUARTER2014OPERATING RESULTS
| | ● | Net Sales Increase 72.5% |
| | ● | Record Earnings Per Share (Diluted) of $0.57 for the Quarter compared to $0.23 in the Same Quarter of 2013 |
| | ● | HPI Reports Net Sales of $17.6 million, an Increase of 93.6% |
| | ● | The Office Gurus Reports Net Sales Increase of 47.2% |
SEMINOLE, Florida – July 23, 2014 - Superior Uniform Group, Inc. (NASDAQ: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2014, sales were $53.2 million, compared with 2013 second quarter sales of $30.9 million. Net earnings were $3.9 million, or $0.57 per share (diluted), compared with earnings of $1.4 million, or $0.23 per share (diluted), in the 2013 second quarter.
For the six months ended June 30, 2014, sales were $94.3 million, compared with sales of $61.8 million in the six months ended June 30, 2013. Net earnings for the six months ended June 30, 2014 were $5.1 million, or $0.75 per share (diluted), versus earnings of $2.7 million, or $0.43 per share (diluted), in the first six months of 2013.
Michael Benstock, chief executive officer, commented: “We are very pleased to report record earnings per share (diluted) in the current quarter of $0.57. Second quarter results exceeded our expectations, and we continue to be impressed by the strong performance of HPI since the acquisition in July 2013. HPI contributed $17.6 million to second quarter net sales in our Uniforms and Related Products segment. The balance of our Uniforms and Related Products segmentcontributed an increase in net sales of $4.2 million, or 14.3%. Our Uniforms and Related Products segment, including HPI, had shipments of significant new programs with both a transportation customer and a large supermarket customer, which combined accounted for over $7 million of our increase in net sales.
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“Obviously, several factors came together and were well aligned at the same time in order for us to deliver stellar results of this magnitude. While this level of earnings is not to be expected each quarter, our overall backlog in the Uniforms and Related Products segment remains very strong and we expect to continue to report strong earnings in this segment as we move forward.
“Our Remote Staffing Solutions segment continues to report meaningful growth in net sales as the market response has been very favorable to our service offerings and we believe there is room for us to continue to grow this business substantially.
“Our financial position remains very strong and coupled with an improving market position, we believe we can meet the demands of significant growth opportunities that lie ahead in all of our business segments.”
ABOUT SUPERIOR UNIFORM GROUP, INC.
Superior Uniform Group (NASDAQ:SGC), established in 1920, is one of America's foremost providers of fine uniforms and image apparel. Headquartered in Seminole, Fla., Superior Uniform Group manages award-winning uniform apparel programs for major corporations nationwide. Leaders in innovative uniform program design, global manufacturing, and state-of-the-art distribution, Superior Uniform Group helps companies achieve a more professional appearance and bettercommunicate their brands - particularly those in healthcare, private security, retail, hospitality, transportation and food service industries.
The Company’s commitment to service, technology, quality and value-added benefits, as well as its financial strength and resources, support customers’ diverse needs while embracing a "Customer 1st, Every Time!" philosophy and culture. Superior Uniform Group primarily sells its products through its signature brandsFashion Seal Healthcare® andHPI Direct®. Superior Uniform Group is also the parent company forThe Office Gurus®, its BPO and Contact Center vertical. For more information, call (800) 727-8643 or visitwww.superioruniformgroup.com.
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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:
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED JUNE 30,
(Unaudited)
| | | 2014 | | | 2013 | |
| | | | | | | | | |
Net sales | | $ | 53,230,000 | | | $ | 30,854,000 | |
| | | | | | | | | |
Costs and expenses: | | | | | | | | |
Cost of goods sold | | | 34,224,000 | | | | 19,676,000 | |
Selling and administrative expenses | | | 13,026,000 | | | | 9,102,000 | |
Interest expense | | | 113,000 | | | | 8,000 | |
| | | | 47,363,000 | | | | 28,786,000 | |
| | | | | | | | | |
| | | | | | | | | |
Income before taxes on income | | | 5,867,000 | | | | 2,068,000 | |
Income tax expense | | | 1,960,000 | | | | 630,000 | |
| | | | | | | | | |
Net income | | $ | 3,907,000 | | | $ | 1,438,000 | |
| | | | | | | | | |
Per Share Data: | | | | | | | | |
Basic: | | | | | | | | |
Net income | | $ | 0.59 | | | $ | 0.23 | |
| | | | | | | | | |
Diluted: | | | | | | | | |
Net income | | $ | 0.57 | | | $ | 0.23 | |
| | | | | | | | | |
Cash dividends per common share | | $ | 0.135 | | | $ | 0.00 | |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30,
(Unaudited)
| | | 2014 | | | 2013 | |
| | | | | | | | | |
Net sales | | $ | 94,257,000 | | | $ | 61,839,000 | |
| | | | | | | | | |
Costs and expenses: | | | | | | | | |
Cost of goods sold | | | 61,195,000 | | | | 39,348,000 | |
Selling and administrative expenses | | | 25,109,000 | | | | 18,659,000 | |
Interest expense | | | 208,000 | | | | 15,000 | |
| | | | 86,512,000 | | | | 58,022,000 | |
| | | | | | | | | |
Income before taxes on income | | | 7,745,000 | | | | 3,817,000 | |
Income tax expense | | | 2,620,000 | | | | 1,150,000 | |
| | | | | | | | | |
Net income | | $ | 5,125,000 | | | $ | 2,667,000 | |
| | | | | | | | | |
Per Share Data: | | | | | | | | |
Basic: | | | | | | | | |
Net income | | $ | 0.78 | | | $ | 0.44 | |
| | | | | | | | | |
Diluted: | | | | | | | | |
Net income | | $ | 0.75 | | | $ | 0.43 | |
| | | | | | | | | |
Cash dividends per common share | | $ | 0.27 | | | $ | 0.00 | |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| | | June 30, 2014 (Unaudited) | | | December 31, 2013 | |
| ASSETS | | | | | | | | |
CURRENT ASSETS: | | | | | | | | |
Cash and cash equivalents | | $ | 5,039,000 | | | $ | 5,316,000 | |
Accounts receivable - trade | | | 31,234,000 | | | | 22,735,000 | |
Accounts receivable - other | | | 3,374,000 | | | | 4,133,000 | |
Prepaid expenses and other current assets | | | 5,641,000 | | | | 6,012,000 | |
Inventories | | | 57,273,000 | | | | 49,486,000 | |
TOTAL CURRENT ASSETS | | | 102,561,000 | | | | 87,682,000 | |
| | | | | | | | | |
PROPERTY, PLANT AND EQUIPMENT, NET | | | 13,366,000 | | | | 13,160,000 | |
OTHER INTANGIBLE ASSETS, NET | | | 17,320,000 | | | | 18,353,000 | |
GOODWILL | | | 4,135,000 | | | | 4,135,000 | |
DEFERRED INCOME TAXES | | | 1,795,000 | | | | 2,009,000 | |
OTHER ASSETS | | | 165,000 | | | | 155,000 | |
| | | $ | 139,342,000 | | | $ | 125,494,000 | |
| | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | |
| | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | |
Accounts payable | | $ | 8,757,000 | | | $ | 8,363,000 | |
Other current liabilities | | | 5,350,000 | | | | 7,768,000 | |
Current portion of long term debt | | | 2,250,000 | | | | 1,750,000 | |
TOTAL CURRENT LIABILITIES | | | 16,357,000 | | | | 17,881,000 | |
| | | | | | | | | |
LONG-TERM DEBT | | | 34,775,000 | | | | 24,500,000 | |
LONG-TERM PENSION LIABILITY | | | 3,460,000 | | | | 3,617,000 | |
ACQUISITION-RELATED CONTINGENT LIABILITY | | | 6,870,000 | | | | 6,806,000 | |
OTHER LONG-TERM LIABILITIES | | | 665,000 | | | | 625,000 | |
DEFERRED INCOME TAXES | | | 160,000 | | | | 130,000 | |
SHAREHOLDERS' EQUITY | | | 77,055,000 | | | | 71,935,000 | |
| | | $ | 139,342,000 | | | $ | 125,494,000 | |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30,
(Unaudited)
| | | 2014 | | | 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | |
Net income | | $ | 5,125,000 | | | | 2,667,000 | |
Adjustments to reconcile net incometo net cash provided from (used in) operating activities: | | | | | | | | |
Depreciation and amortization | | | 1,887,000 | | | | 709,000 | |
Provision for bad debts - accounts receivable | | | 92,000 | | | | 51,000 | |
Share-based compensation expense | | | 955,000 | | | | 618,000 | |
Deferred income tax provision (benefit) | | | 230,000 | | | | (651,000 | ) |
Gain on sales of property, plant and equipment | | | (67,000 | ) | | | (12,000 | ) |
Accretion of acquisition-related contingent liability | | | 64,000 | | | | - | |
Changes in assets and liabilities: | | | | | | | | |
Accounts receivable - trade | | | (8,591,000 | ) | | | (606,000 | ) |
Accounts receivable - other | | | 759,000 | | | | (175,000 | ) |
Inventories | | | (7,787,000 | ) | | | (253,000 | ) |
Prepaid expenses and other current assets | | | 371,000 | | | | (392,000 | ) |
Other assets | | | (10,000 | ) | | | 15,000 | |
Accounts payable | | | 394,000 | | | | 307,000 | |
Other current liabilities | | | (2,521,000 | ) | | | 486,000 | |
Pension liability | | | 5,000 | | | | 482,000 | |
Other long-term liabilities | | | 40,000 | | | | (36,000 | ) |
| | | | | | | | | |
Net cash (used in) provided from operating activities | | | (9,054,000 | ) | | | 3,210,000 | |
| | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
Additions to property, plant and equipment | | | (1,097,000 | ) | | | (965,000 | ) |
Disposals of property, plant and equipment | | | 104,000 | | | | 14,000 | |
Net cash used in investing activities | | | (993,000 | ) | | | (951,000 | ) |
| | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
Proceeds from long-term debt | | | 35,337,000 | | | | 14,560,000 | |
Repayment of long-term debt | | | (24,562,000 | ) | | | (9,560,000 | ) |
Payment of cash dividends | | | (1,695,000 | ) | | | - | |
Proceeds received on exercise of stock options | | | 685,000 | | | | 140,000 | |
Excess tax benefit from exercise of stock options | | | 5,000 | | | | - | |
| | | | | | | | | |
Net cash provided from financing activities | | | 9,770,000 | | | | 5,140,000 | |
| | | | | | | | | |
Net (decrease) increase in cash and cash equivalents | | | (277,000 | ) | | | 7,399,000 | |
| | | | | | | | | |
Cash and cash equivalents balance, beginning of year | | | 5,316,000 | | | | 3,554,000 | |
| | | | | | | | | |
Cash and cash equivalents balance, end of period | | $ | 5,039,000 | | | $ | 10,953,000 | |
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