Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 20, 2015 | |
Entity Registrant Name | SUPERIOR UNIFORM GROUP INC | |
Entity Central Index Key | 95,574 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 13,795,033 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 54,116,000 | $ 53,230,000 | $ 100,463,000 | $ 94,257,000 |
Costs and expenses: | ||||
Cost of goods sold | 35,585,000 | 34,224,000 | 66,136,000 | 61,195,000 |
Selling and administrative expenses | 13,008,000 | 13,026,000 | 25,445,000 | 25,109,000 |
Interest expense | 129,000 | 113,000 | 265,000 | 208,000 |
48,722,000 | 47,363,000 | 91,846,000 | 86,512,000 | |
Income before taxes on income | 5,394,000 | 5,867,000 | 8,617,000 | 7,745,000 |
Income tax expense | 1,770,000 | 1,960,000 | 2,950,000 | 2,620,000 |
Net income | $ 3,624,000 | $ 3,907,000 | $ 5,667,000 | $ 5,125,000 |
Weighted average number of shares outstanding during the period | ||||
(Basic) (in shares) | 13,730,646 | 13,207,804 | 13,657,784 | 13,168,375 |
(Diluted) (in shares) | 14,577,342 | 13,648,540 | 14,562,713 | 13,601,140 |
Basic | ||||
Net income (in dollars per share) | $ 0.26 | $ 0.30 | $ 0.41 | $ 0.39 |
Diluted | ||||
Net income (in dollars per share) | $ 0.25 | $ 0.29 | $ 0.39 | $ 0.38 |
Other comprehensive income, net of tax: | ||||
Recognition of net losses included in net periodic pension costs | $ 129,000 | $ 54,000 | $ 257,000 | $ 107,000 |
Recognition of settlement loss included in net periodic pension costs | 201,000 | 201,000 | ||
Gain (loss) on cash flow hedging activities | 21,000 | $ (47,000) | (1,000) | $ (62,000) |
Other comprehensive income | 351,000 | 7,000 | 457,000 | 45,000 |
Comprehensive income | $ 3,975,000 | $ 3,914,000 | $ 6,124,000 | $ 5,170,000 |
Cash dividends per common share (in dollars per share) | $ 0.075 | $ 0.068 | $ 0.15 | $ 0.135 |
Net sales | $ 54,116,000 | $ 53,230,000 | $ 100,463,000 | $ 94,257,000 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 6,402,000 | $ 4,586,000 |
Accounts receivable, less allowance for doubtful accounts of $800,000 and $680,000, respectively | 29,824,000 | 27,956,000 |
Accounts receivable - other | 3,243,000 | 4,135,000 |
Prepaid expenses and other current assets | 5,916,000 | 4,497,000 |
Inventories | 60,775,000 | 58,282,000 |
TOTAL CURRENT ASSETS | 106,160,000 | 99,456,000 |
PROPERTY, PLANT AND EQUIPMENT, NET | 17,515,000 | 16,285,000 |
OTHER INTANGIBLE ASSETS, NET | 15,255,000 | 16,288,000 |
GOODWILL | 4,135,000 | 4,135,000 |
DEFERRED INCOME TAXES | 4,105,000 | 3,636,000 |
OTHER ASSETS | 178,000 | 137,000 |
147,348,000 | 139,937,000 | |
CURRENT LIABILITIES: | ||
Accounts payable | 14,092,000 | 9,706,000 |
Other current liabilities | 6,763,000 | 8,995,000 |
Current portion of long-term debt | 2,937,000 | 2,375,000 |
Current portion of acquisition-related contigent liability | 3,169,000 | 1,189,000 |
TOTAL CURRENT LIABILITIES | 26,961,000 | 22,265,000 |
LONG TERM DEBT | 20,500,000 | 22,660,000 |
LONG-TERM PENSION LIABILITY | 7,941,000 | 8,084,000 |
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITY | 3,830,000 | 5,745,000 |
OTHER LONG-TERM LIABILITIES | 620,000 | 580,000 |
DEFERRED INCOME TAXES | $ 30,000 | $ 191,000 |
COMMITMENTS AND CONTINGENCIES (NOTE 5) | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, $.001 par value - authorized 300,000 shares (none issued) | ||
Common stock, $.001 par value - authorized 50,000,000 shares, issued and outstanding - 13,792,433 and 13,514,566, respectively. | $ 14,000 | $ 13,000 |
Additional paid-in capital | 32,583,000 | 29,501,000 |
Retained earnings | 60,357,000 | 56,843,000 |
Accumulated other comprehensive loss, net of tax: | ||
Pensions | (5,376,000) | (5,834,000) |
Cash flow hedges | (112,000) | (111,000) |
TOTAL SHAREHOLDERS' EQUITY | 87,466,000 | 80,412,000 |
147,348,000 | 139,937,000 | |
Finished goods | 48,309,000 | 44,610,000 |
Work in process | 1,019,000 | 323,000 |
Raw materials | 11,447,000 | 13,349,000 |
Inventories | $ 60,775,000 | $ 58,282,000 |
Consolidated Balance Sheets (C4
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 800,000 | $ 680,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 300,000 | 300,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 13,792,433 | 13,514,566 |
Common stock, shares outstanding (in shares) | 13,792,433 | 13,514,566 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 5,667,000 | $ 5,125,000 |
Adjustments to reconcile net income to net cash provided by (used in) used in operating activities: | ||
Depreciation and amortization | 1,890,000 | 1,887,000 |
Provision for bad debts - accounts receivable | 211,000 | 92,000 |
Share-based compensation expense | 964,000 | 955,000 |
Deferred income tax (benefit) provision | (881,000) | 230,000 |
Loss (gain) on disposals of property, plant and equipment | (12,000) | 67,000 |
Accretion of acquisition-related contingent liability | 65,000 | 64,000 |
Changes in assets and liabilities: | ||
Accounts receivable - trade | (2,079,000) | (8,591,000) |
Accounts receivable - other | 892,000 | 759,000 |
Inventories | (2,493,000) | (7,787,000) |
Prepaid expenses and other current assets | (1,419,000) | 371,000 |
Other assets | (41,000) | (10,000) |
Accounts payable | 4,386,000 | 394,000 |
Other current liabilities | (2,233,000) | (2,521,000) |
Long-term pension liability | 567,000 | 5,000 |
Other long-term liabilities | 40,000 | 40,000 |
Net cash provided by (used in) used in operating activities | 5,548,000 | (9,054,000) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | $ (2,099,000) | (1,097,000) |
Proceeds from disposals of property, plant and equipment | 104,000 | |
Net cash used in investing activities | $ (2,099,000) | (993,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 25,040,000 | 35,337,000 |
Repayment of long-term debt | (26,638,000) | (24,562,000) |
Payment of cash dividends | (2,006,000) | (1,695,000) |
Proceeds received on exercise of stock options | 1,383,000 | 685,000 |
Excess tax benefit from exercise of stock options and SARS | 588,000 | 5,000 |
Net cash (used in) provided by financing activities | (1,633,000) | 9,770,000 |
Increase (decrease) in cash and cash equivalents | 1,816,000 | (277,000) |
Cash and cash equivalents balance, beginning of year | 4,586,000 | 5,316,000 |
Cash and cash equivalents balance, end of period | $ 6,402,000 | $ 5,039,000 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Interim Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 1 – Summary of Significant Interim Accounting Policies: a) Basis of presentation The consolidated interim financial statements include the accounts of Superior Uniform Group, Inc. and its wholly-owned subsidiaries, The Office Gurus, LLC, SUG Holding and Fashion Seal Corporation; The Office Gurus, LTDA, De C.V., The Office Masters, LTDA, De C.V. and The Office Gurus, Ltd., each a subsidiary of Fashion Seal Corporation and SUG Holding; and Power Three Web, Ltda. and Superior Sourcing, each a wholly-owned subsidiary of SUG Holding. All of these entities are referred to collectively as “the Company”. Intercompany items have been eliminated in consolidation. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, and filed with the Securities and Exchange Commission. The interim financial information contained herein is not certified or audited; it reflects all adjustments (consisting of only normal recurring accruals) which are, in the opinion of management, necessary for a fair statement of the operating results for the periods presented, stated on a basis consistent with that of the audited financial statements. The results of operations for any interim period are not necessarily indicative of results to be expected for the full year. b) Revenue recognition The Company records revenue as products are shipped and title passes and as services are provided. A provision for estimated returns and allowances is recorded based on historical experience and current allowance programs. c) Recognition of costs and expenses Costs and expenses other than product costs are charged to income in interim periods as incurred, or allocated among interim periods based on an estimate of time expired, benefit received or activity associated with the periods. Procedures adopted for assigning specific cost and expense items to an interim period are consistent with the basis followed by the Company in reporting results of operations at annual reporting dates. However, when a specific cost or expense item charged to expense for annual reporting purposes benefits more than one interim period, the cost or expense item is allocated to the interim periods. d) Amortization of other intangible assets The Company amortizes identifiable intangible assets on a straight line basis over their expected useful lives. Amortization expense for other intangible assets was $516,000 for each of the three-month periods ended June 30, 2015 and 2014, and $1,033,000 for each of the six-month periods ended June 30, 2015 and 2014, respectively. e) Advertising expenses The Company expenses advertising costs as incurred. Advertising costs for the three-month periods ended June 30, 2015 and 2014, respectively, were $64,000 and $32,000. Advertising costs for the six-month periods ended June 30, 2015 and 2014, respectively, were $90,000 and $65,000. f) Shipping and handling fees and costs The Company includes shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with in-bound and out-bound freight are generally recorded in cost of goods sold. Other shipping and handling costs such as labor and overhead are included in selling and g) Inventories Inventories at interim dates are determined by using both perpetual records on a first-in, first-out basis and gross profit calculations. h) Accounting for income taxes The provision for income taxes is calculated by using the effective tax rate anticipated for the full year. i) Employee benefit plan settlements The Company recognizes settlement gains and losses in its financial statements when the cost of all settlements in a year is greater than the sum of the service cost and interest cost components of net periodic pension cost for the plan for the year. j) Earnings per share Historical basic per share data is based on the weighted average number of shares outstanding. Historical diluted per share data is reconciled by adding to weighted average shares outstanding the dilutive impact of the exercise of outstanding stock options and stock appreciation rights. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net earnings used in the computation of basic and diluted earnings per share $ 3,624,000 $ 3,907,000 $ 5,667,000 $ 5,125,000 Weighted average shares outstanding - basic 13,730,646 13,207,804 13,657,784 13,168,375 Common stock equivalents 846,696 440,736 904,929 432,765 Weighted average shares outstanding - diluted 14,577,342 13,648,540 14,562,713 13,601,140 Per Share Data: Basic Net earnings $ 0.26 $ 0.30 $ 0.41 $ 0.39 Diluted Net earnings $ 0.25 $ 0.29 $ 0.39 $ 0.38 Awards to purchase 10,000 shares of common stock with a weighted average exercise price of $8.00 per share were outstanding during the six-month period ending June 30, 2014 but were not included in the computation of diluted EPS because the awards’ exercise price was greater than the average market price of the shares of common stock. There were no such awards outstanding during the first six months of 2015. k) Derivative financial instruments The Company uses certain financial derivatives to mitigate its exposure to volatility in interest rates. The Company records derivatives on the balance sheet at fair value and establishes criteria for designation and effectiveness of hedging relationships. On the date a derivative contract is entered into, the Company may elect to designate the derivative as a fair value hedge, a cash flow hedge, or the hedge of a net investment in a foreign operation. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative that is used in the hedging transaction is highly effective. For those instruments that are designated as a cash flow hedge and meet certain documentary and analytical requirements to qualify for hedge accounting treatment, changes in the fair value for the effective portion are reported in other comprehensive income (“OCI”), net of related income tax effects, and are reclassified to the income statement when the effects of the item being hedged are recognized in the income statement. The Company discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative expires or is sold, terminated, or exercised, or management determines that designation of the derivative as a hedging instrument is no longer appropriate. In situations in which the Company does not elect hedge accounting or hedge accounting is discontinued and the derivative is retained, the Company carries or continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value through earnings. The nature of the Company’s business activities involves the management of various financial and market risks, including those related to changes in interest rates. The Company does not enter into derivative instruments for speculative purposes. The Company manages market and credit risks associated with its derivative instruments by establishing and monitoring limits as to the types and degree of risk that may be undertaken, and by entering into transactions with high-quality counterparties. As of June 30, 2015, the Company’s derivative counterparty had investment grade credit ratings. In July 2013, the Company entered into an interest rate swap agreement whereby the interest rate payable by the Company on a portion of the outstanding balance of the term loan was effectively converted to a fixed rate of 2.53% beginning July 1, 2014. The Company entered into this interest rate swap arrangement to mitigate future interest rate risk associated with its borrowings and has designated it as a cash flow hedge. (See Note 2.) l) Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. m) Comprehensive income Total comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net earnings. For the Company, the only other components of total comprehensive income are the change in pension costs and change in fair value of qualifying hedges. n) Operating segments Accounting standards require disclosures of certain information about operating segments and about products and services, geographic areas in which the Company operates, and their major customers. The Company has evaluated its operations and has determined that it has two reportable segments - uniforms and related products and remote staffing solutions. (See Note 6.) o) Share-Based Compensation The Company awards share-based compensation as an incentive for employees to contribute to the Company’s long-term success. Historically, the Company has granted options and stock settled stock appreciation rights. In 2015 and 2014, the Company also granted restricted stock awards. In 2003, the stockholders of the Company approved the 2003 Incentive Stock and Awards Plan (the “2003 Plan”), authorizing the granting of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance stock and other stock based compensation. This plan expired in May of 2013, at which time, the stockholders of the Company approved the 2013 Incentive Stock and Awards Plan (the “2013 Plan”), authorizing the granting of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance stock and other stock based compensation. A total of 5,000,000 shares of common stock (subject to adjustment for expirations and cancellations of options outstanding from the 2003 Plan subsequent to its termination) have been reserved for issuance under the 2013 Plan. All options under both plans have been or will be granted with exercise prices at least equal to the fair market value of the shares on the date of grant. At June 30, 2015, the Company had 4,208,196 shares of common stock available for grant of share-based compensation under the 2013 Plan. The Company grants stock options and stock settled stock appreciation rights (“SARS”) to employees that allow them to purchase shares of the Company’s common stock. Options are also granted to outside members of the Board of Directors of the Company. The Company determines the fair value of stock options and SARS at the date of grant using the Black-Scholes valuation model. All options and SARS vest immediately at the date of grant. Awards generally expire five years after the date of grant with the exception of options granted to outside directors, which expire ten years after the date of grant. The Company issues new shares upon the exercise of stock options and SARS. For the three months ended June 30, 2015 and 2014, respectively, the Company recognized $71,000 and $67,000 of share-based compensation related to stock options and SARS recorded in selling and administrative expense in the Consolidated Statements of Comprehensive Income. These expenses were partially offset by $25,000 and $23,000 deferred tax benefits for non-qualified share-based compensation for the three-month periods ended June 30, 2015 and 2014, respectively. For the six months ended June 30, 2015 and 2014, respectively, the Company recognized $828,000 and $853,000 of share-based compensation related to stock options and SARS recorded in selling and administrative expense in the Consolidated Statements of Comprehensive Income. These expenses were partially offset by a $122,000 and $127,000 deferred tax benefit for non-qualified share-based compensation for the six-month periods ended June 30, 2015 and 2014, respectively. On February 7, 2014, the Compensation Committee of the Board of Directors approved a restricted stock grant under the terms of the 2013 Plan of the Company to four members of senior management for a total of 100,000 shares. The fair value of the stock on the date of grant was $7.36 per share for a total value of $736,000. These shares were unvested at the time of grant and will vest if the executives are still employed by the Company on February 7, 2017. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan. On November 7, 2014, the Board of Directors approved a restricted stock grant under the terms of the 2013 Plan to the four independent members of the Board of Directors for a total of 6,016 shares. The fair value of the stock on the date of grant was $11.96 per share for a total value of $72,000. These shares were unvested at the time of grant and will vest if the directors are still serving on the Company’s Board of Directors on November 7, 2017. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan. On April 15, 2015, the Compensation Committee of the Board of Directors approved a restricted stock grant under the terms of the 2013 Plan to a member of management for a total of 1,050 shares. The fair value of the stock on the date of grant was $21.92 per share for a total value of $23,000. These shares were unvested at the time of grant and will vest if the executive is still employed by the Company on April 15, 2018. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan. Expense for all such grants is being recognized on a straight-line basis over the respective service periods. The Company recognized approximately $69,000 and $61,000 in expense associated with such grants for the three-month periods ended June 30, 2015 and 2014, respectively, and approximately $136,000 and $102,000 for the six-month periods ended June 30, 2015 and 2014, respectively. These expenses were offset by deferred tax benefits of $24,000 and $22,000 for the three-month periods ended June 30, 2015 and 2014, respectively, and $48,000 and $29,000 for the six-month periods ended June 30, 2015 and 2014, respectively. As of June 30, 2015, the Company had $466,000 of unrecognized compensation cost expected to be recognized in the future for prior share-based awards. During the six-month periods ended June 30, 2015 and 2014, respectively, the Company received $1,383,000 and $685,000 in cash from stock option exercises. Additionally, during the six-month periods ended June 30, 2015 and 2014, the Company received 7,765 and 5,345 shares of its common stock as payment for issuance of 27,432 and 10,204 shares of its common stock related to the exercise of stock options. A summary of options transactions during the six months ended June 30, 2015 follows: No. of Weighted Average Shares Exercise Price Outstanding December 31, 2014 1,118,058 $ 6.63 Granted 103,308 18.46 Exercised (212,540 ) 7.27 Lapsed (5,000 ) 5.78 Cancelled - - Outstanding June 30, 2015 1,003,826 $ 7.71 At June 30, 2015, options outstanding, all of which were fully vested and exercisable, had an aggregate intrinsic value of $9,055,000. Options exercised during the three-month periods ended June 30, 2015 and 2014 had intrinsic values of $1,792,000 and $172,000, respectively. Options exercised during the six-month periods ended June 30, 2015 and 2014 had intrinsic values of $2,377,000 and $285,000, respectively. The weighted average grant date fair values of the Company’s options granted during the three-month periods ended June 30, 2015 and 2014 were $6.61 and $4.78, respectively. The weighted average grant date fair values of the Company’s options granted during the six-month periods ended June 30, 2015 and 2014 were $5.35 and $4.11, respectively. A summary of SARS transactions during the six months ended June 30, 2015 follows: No. of Weighted Average Shares Exercise Price Outstanding December 31, 2014 522,024 $ 6.17 Granted 53,292 18.66 Exercised (139,542 ) 5.77 Lapsed - - Cancelled - - Outstanding June 30, 2015 435,774 $ 7.82 At June 30, 2015, SARS outstanding, all of which were fully vested and exercisable, had an aggregate intrinsic value of $3,912,000. There were 42,208 SARS exercised during the three-month period ended June 30, 2015. There were 8,335 SARS exercised during the three-month period ended June 30, 2014. SARS exercised during the three-month period ended June 30, 2015 had an intrinsic value of $700,000. There were 139,542 SARS exercised during the six-month period ended June 30, 2015. There were 11,439 SARS exercised during the six-month period ended June 30, 2014. SARS exercised during the six-month period ended June 30, 2015 had an intrinsic value of $1,931,000. There were 53,292 and 68,691 SARS granted during the six-month periods ended June 30, 2015 and 2014, respectively. The weighted average grant date fair values of the Company’s SARS granted during the six-month periods ended June 30, 2015 and 2014 were $5.20 and $4.04, respectively. The following table summarizes significant assumptions utilized to determine the fair value of share-based compensation awards. Three months ended June 30, SARS Options Exercise price 2015 N/A $16.78 2014 N/A $7.96 Market price 2015 N/A $16.78 2014 N/A $7.96 Risk free interest rate (1) 2015 N/A 2.1% 2014 N/A 2.6% Expected award life (years) (2) N/A 10 Expected volatility (3) 2015 N/A 39.0% 2014 N/A 37.3% Expected dividend yield (4) 2015 N/A 1.8% 2014 N/A 3.4% Six months ended June 30, SARS Options Exercise price 2015 $18.66 $16.78 - $18.66 2014 $7.36 $7.36 - $7.96 Market price 2015 $18.66 $16.78 - $18.66 2014 $7.36 $7.36 - $7.96 Risk free interest rate (1) 2015 1.5% 1.5% - 2.1% 2014 1.5% 1.5% - 2.6% Expected award life (years) (2) 5 5 - 10 Expected volatility (3) 2015 34.9% 34.9% - 39.0% 2014 42.5% 37.3% - 42.5% Expected dividend yield (4) 2015 1.6% 1.6% - 1.8% 2014 3.7% 3.4% - 3.7% (1) The risk-free interest rate is based on the yield of a U.S. treasury bond with a similar maturity as the expected life of the awards. (2) The expected life in years for awards granted was based on the historical exercise patterns experienced by the Company when the award is made. (3) The determination of expected stock price volatility for awards granted in each of the three and six-month periods ending June 30, 2015 and 2014 was based on historical prices of Superior’s common stock over a period commensurate with the expected life. (4) The dividend yield assumption is based on the history and expectation of the Company’s dividend payouts. p) Stock Split On December 29, 2014, the Board of Directors declared a 2-for-1 stock split of the Company’s common stock. The record date of the split was January 12, 2015, and the stock split became effective February 4, 2015. All share and per share information in these consolidated interim financial statements have been restated for all periods presented, giving retroactive effect to the stock split. The Company revised certain historical amounts when it recorded the 2-for-1 stock split. The amounts were immaterial and reclassified within shareholders’ equity between par value and additional paid in capital. q) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) that will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. Additionally, the guidance requires disaggregated disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The amendments are required to be adopted by the Company on January 1, 2017. The FASB has implemented a one year delay in the effective date of Topic 606. Transition to the new guidance may be done using either a full or modified retrospective method. The Company is currently evaluating the full effect that the adoption of this standard will have on the Company’s consolidated financial statements. |
Note 2 - Long-Term Debt
Note 2 - Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 2 - Long-Term Debt: June 30, December 31, 2015 2014 Term loan payable to Fifth Third Bank, maturing $ 23,437,000 $ 24,375,000 Note payable to Fifth Third Bank, pursuant to revolving credit agreement, maturing July 1, 2016 - 440,000 Note payable to Fifth Third Bank, pursuant to revolving credit agreement, maturing July 1, 2018 - 220,000 $ 23,437,000 $ 25,035,000 Less payments due within one year included in current liabilities 2,937,000 2,375,000 Long-term debt less current maturities $ 20,500,000 $ 22,660,000 Effective July 1, 2013, the Company entered into an amended and restated 5-year credit agreement with Fifth Third Bank that made available to the Company up to $15,000,000 on a revolving credit basis (the “Initial Credit Facility”) in addition to a $30,000,000 term loan utilized to finance the acquisition of substantially all of the assets of HPI Direct, Inc. Interest is payable on the term loan at LIBOR plus 0.95% (1.14% at June 30, 2015) and on the revolving credit facility at LIBOR (rounded up to the next 1/8 th On October 22, 2013, the credit agreement was amended to, among other things, increase the amount of permitted investments in subsidiaries that are not parties to the credit and related agreements, from $1 million to $5 million. On May 1, 2014, the credit agreement was further amended to provide for an additional $10 million revolving credit facility with Fifth Third Bank (the “Add on Credit Facility”), pursuant to the Second Amendment to Second Amended and Restated Credit Agreement and Other Loan Documents, dated May 1, 2014. The Second Amended and Restated Credit Agreement and other Loan Documents, as so amended, is referred to herein as the “Credit Agreement.” The Add on Credit Facility matures July 1, 2016. Interest is payable on the Add on Credit Facility at LIBOR (rounded up to the next 1/8 th In order to reduce interest rate risk on the term loan, the Company entered into an interest rate swap agreement with Fifth Third Bank, N.A. in July 2013 that was designed to effectively convert or hedge the variable interest rate on a portion of this borrowing to achieve a net fixed rate of 2.53% per annum, beginning July 1, 2014 with a notional amount of $14,250,000 that is adjusted to match the outstanding principal on the related debt. The notional amount of the interest rate swap is reduced by the scheduled amortization of the principal balance of the term loan of $187,500 per month through July 1, 2015 and $250,000 per month through June 1, 2018. The remaining notional balance of $3,250,000 will be eliminated at the maturity of the term loan on July 1, 2018. Under the terms of the interest rate swap, the Company will receive variable interest rate payments and make fixed interest rate payments on an amount equal to the notional amount at that time. Changes in the fair value of the interest rate swap designated as the hedging instrument that effectively offset the variability of cash flows associated with the variable-rate, long-term debt obligation are reported in Other Comprehensive Income (“OCI”), net of related income tax effects. At June 30, 2015, the interest rate swap had a negative fair value of $173,000, which is presented within other current liabilities within the Consolidated Balance Sheet. The aggregate change of $173,000, net of tax benefit of $61,000, since the inception of the hedge in July 2013 has been recorded within OCI through June 30, 2015. The Company does not currently expect any of those losses to be reclassified into earnings over the subsequent twelve-month period. The remaining scheduled amortization for the term loan is as follows: 2015 $1,437,000; 2016 $3,000,000; 2017 $3,000,000; 2018 $16,000,000. The term loan does not include a prepayment penalty. In connection with the Credit Agreement, the Company incurred approximately $68,000 of debt financing costs, which primarily consisted of legal fees. These costs are being amortized over the life of the Credit Agreement and are recorded as additional interest expense. The Company’s obligations under the Credit Agreement are secured by substantially all of the operating assets of Superior Uniform Group, Inc. and are guaranteed by all domestic subsidiaries of Superior Uniform Group, Inc. The agreement contains restrictive provisions concerning a maximum funded senior indebtedness to EBITDA ratio as defined in the agreement (3.5:1), a maximum funded indebtedness to EBITDA ratio as defined in the agreement (4.0:1) and a fixed charge coverage ratio (1.25:1). The Company is in full compliance with all terms, conditions and covenants of the Credit Agreement. |
Note 3 - Periodic Pension Expen
Note 3 - Periodic Pension Expense | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 3 – Periodic Pension Expense: The following table presents the net periodic pension expense under our plans for the following periods: Three Months Six Months 2015 2014 2015 2014 Service cost - benefits earned during the period $ 26,000 $ 20,000 $ 52,000 $ 40,000 Interest cost on projected benefit obligation 238,000 251,000 476,000 501,000 Expected return on plan assets (335,000 ) (349,000 ) (671,000 ) (697,000 ) Recognized actuarial loss 200,000 81,000 399,000 162,000 Settlement loss 311,000 - 311,000 - Net periodic pension cost $ 440,000 $ 3,000 $ 567,000 $ 6,000 Effective June 30, 2013, the Company no longer accrues additional benefits for future service or for future increases in compensation levels for the Company’s primary defined benefit pension plan. There were no contributions made to the Company’s benefit plans during the six-month periods ended June 30, 2015, and June 30, 2014. |
Note 4 - Supplemental Cash Flow
Note 4 - Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 4 - Supplemental Cash Flow Information: Cash paid for income taxes was $2,928,000 and $2,172,000, respectively, for the six-month periods ended June 30, 2015 and 2014. Cash paid for interest was $228,000 and $165,000, respectively, for the six-month periods ended June 30, 2015 and 2014. During the six month periods ended June 30, 2015 and 2014, respectively, the Company received 7,765 and 5,345 shares of its common stock as payment of the exercise price in the exercise of stock options for 27,432 and 10,204 shares. |
Note 5 - Contingencies
Note 5 - Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 5 – Contingencies: The Company is involved in various legal actions and claims arising from the normal course of business. In the opinion of management, the ultimate outcome of these matters will not have a material impact on the Company’s results of operations, cash flows, or financial position. |
Note 6 - Operating Segment Info
Note 6 - Operating Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 6 – Operating Segment Information : The Company classifies its businesses into two operating segments based on the types of products and services provided. The Uniforms and Related Products segment consists of the sale of uniforms and related items. The Remote Staffing Solutions segment consists of sales of staffing solutions. The Company evaluates the performance of each operating segment based on several factors of which the primary financial measures are operating segment net sales and income before income taxes. The accounting policies of the operating segments are the same as those described in Note 1 entitled Summary of Significant Interim Accounting Policies. Amounts for corporate expenses are included in the Uniforms and Related Products segment totals. Information related to the operations of the Company's operating segments is set forth below. Uniforms and Related Products Remote Staffing Solutions Intersegment Eliminations Total As of and For the Three Months Ended June 30, 2015 Net sales $ 51,256,000 $ 3,782,000 $ (922,000 ) $ 54,116,000 Gross margin $ 17,026,000 $ 2,110,000 $ (605,000 ) $ 18,531,000 Selling and administrative expenses 12,317,000 1,296,000 (605,000 ) 13,008,000 Interest expense 129,000 - - 129,000 Income before income taxes $ 4,580,000 814,000 $ - $ 5,394,000 Depreciation and amortization $ 864,000 73,000 $ - $ 937,000 Capital expenditures $ 569,000 624,000 $ - $ 1,193,000 Total assets $ 138,079,000 $ 11,225,000 $ (1,956,000 ) $ 147,348,000 Uniforms and Related Products Remote Staffing Solutions Intersegment Eliminations Total As of and For the Three Months Ended June 30, 2014 Net sales $ 51,372,000 $ 2,735,000 $ (877,000 ) $ 53,230,000 Gross margin $ 18,050,000 $ 1,516,000 $ (560,000 ) $ 19,006,000 Selling and administrative expenses 12,608,000 978,000 (560,000 ) 13,026,000 Interest expense 113,000 - - 113,000 Income before income taxes $ 5,329,000 $ 538,000 $ - $ 5,867,000 Depreciation and amortization $ 882,000 $ 67,000 $ - $ 949,000 Capital expenditures $ 203,000 $ 85,000 $ - $ 288,000 Total assets $ 132,261,000 $ 8,380,000 $ (1,299,000 ) $ 139,342,000 Uniforms and Related Products Remote Staffing Solutions Intersegment Eliminations Total As of and For the Six Months Ended June 30, 2015 Net sales $ 95,044,000 $ 7,248,000 $ (1,829,000 ) $ 100,463,000 Gross margin $ 31,441,000 $ 4,106,000 $ (1,220,000 ) $ 34,327,000 Selling and administrative expenses 24,250,000 2,415,000 (1,220,000 ) 25,445,000 Interest expense 265,000 - - 265,000 Income before income taxes $ 6,926,000 1,691,000 $ - $ 8,617,000 Depreciation and amortization $ 1,748,000 142,000 $ - $ 1,890,000 Capital expenditures $ 1,262,000 837,000 $ - $ 2,099,000 Total assets $ 138,079,000 $ 11,225,000 $ (1,956,000 ) $ 147,348,000 Uniforms and Related Products Remote Staffing Solutions Intersegment Eliminations Total As of and For the Six Months Ended June 30, 2014 Net sales $ 90,519,000 $ 5,472,000 $ (1,734,000 ) $ 94,257,000 Gross margin $ 31,079,000 $ 3,088,000 $ (1,105,000 ) $ 33,062,000 Selling and administrative expenses 24,264,000 1,950,000 (1,105,000 ) 25,109,000 Interest expense 208,000 - - 208,000 Income before income taxes $ 6,607,000 $ 1,138,000 $ - $ 7,745,000 Depreciation and amortization $ 1,760,000 $ 127,000 $ - $ 1,887,000 Capital expenditures $ 841,000 $ 256,000 $ - $ 1,097,000 Total assets $ 132,261,000 $ 8,380,000 $ (1,299,000 ) $ 139,342,000 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | a) Basis of presentation The consolidated interim financial statements include the accounts of Superior Uniform Group, Inc. and its wholly-owned subsidiaries, The Office Gurus, LLC, SUG Holding and Fashion Seal Corporation; The Office Gurus, LTDA, De C.V., The Office Masters, LTDA, De C.V. and The Office Gurus, Ltd., each a subsidiary of Fashion Seal Corporation and SUG Holding; and Power Three Web, Ltda. and Superior Sourcing, each a wholly-owned subsidiary of SUG Holding. All of these entities are referred to collectively as “the Company”. Intercompany items have been eliminated in consolidation. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, and filed with the Securities and Exchange Commission. The interim financial information contained herein is not certified or audited; it reflects all adjustments (consisting of only normal recurring accruals) which are, in the opinion of management, necessary for a fair statement of the operating results for the periods presented, stated on a basis consistent with that of the audited financial statements. The results of operations for any interim period are not necessarily indicative of results to be expected for the full year. |
Revenue Recognition, Policy [Policy Text Block] | b) Revenue recognition The Company records revenue as products are shipped and title passes and as services are provided. A provision for estimated returns and allowances is recorded based on historical experience and current allowance programs. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | c) Recognition of costs and expenses Costs and expenses other than product costs are charged to income in interim periods as incurred, or allocated among interim periods based on an estimate of time expired, benefit received or activity associated with the periods. Procedures adopted for assigning specific cost and expense items to an interim period are consistent with the basis followed by the Company in reporting results of operations at annual reporting dates. However, when a specific cost or expense item charged to expense for annual reporting purposes benefits more than one interim period, the cost or expense item is allocated to the interim periods. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | d) Amortization of other intangible assets The Company amortizes identifiable intangible assets on a straight line basis over their expected useful lives. Amortization expense for other intangible assets was $516,000 for each of the three-month periods ended June 30, 2015 and 2014, and $1,033,000 for each of the six-month periods ended June 30, 2015 and 2014, respectively. |
Advertising Costs, Policy [Policy Text Block] | e) Advertising expenses The Company expenses advertising costs as incurred. Advertising costs for the three-month periods ended June 30, 2015 and 2014, respectively, were $64,000 and $32,000. Advertising costs for the six-month periods ended June 30, 2015 and 2014, respectively, were $90,000 and $65,000. |
Shipping and Handling Cost, Policy [Policy Text Block] | f) Shipping and handling fees and costs The Company includes shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with in-bound and out-bound freight are generally recorded in cost of goods sold. Other shipping and handling costs such as labor and overhead are included in selling and |
Inventory, Policy [Policy Text Block] | g) Inventories Inventories at interim dates are determined by using both perpetual records on a first-in, first-out basis and gross profit calculations. |
Income Tax, Policy [Policy Text Block] | h) Accounting for income taxes The provision for income taxes is calculated by using the effective tax rate anticipated for the full year. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | i) Employee benefit plan settlements The Company recognizes settlement gains and losses in its financial statements when the cost of all settlements in a year is greater than the sum of the service cost and interest cost components of net periodic pension cost for the plan for the year. |
Earnings Per Share, Policy [Policy Text Block] | j) Earnings per share Historical basic per share data is based on the weighted average number of shares outstanding. Historical diluted per share data is reconciled by adding to weighted average shares outstanding the dilutive impact of the exercise of outstanding stock options and stock appreciation rights. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net earnings used in the computation of basic and diluted earnings per share $ 3,624,000 $ 3,907,000 $ 5,667,000 $ 5,125,000 Weighted average shares outstanding - basic 13,730,646 13,207,804 13,657,784 13,168,375 Common stock equivalents 846,696 440,736 904,929 432,765 Weighted average shares outstanding - diluted 14,577,342 13,648,540 14,562,713 13,601,140 Per Share Data: Basic Net earnings $ 0.26 $ 0.30 $ 0.41 $ 0.39 Diluted Net earnings $ 0.25 $ 0.29 $ 0.39 $ 0.38 Awards to purchase 10,000 shares of common stock with a weighted average exercise price of $8.00 per share were outstanding during the six-month period ending June 30, 2014 but were not included in the computation of diluted EPS because the awards’ exercise price was greater than the average market price of the shares of common stock. There were no such awards outstanding during the first six months of 2015. |
Derivatives, Policy [Policy Text Block] | k) Derivative financial instruments The Company uses certain financial derivatives to mitigate its exposure to volatility in interest rates. The Company records derivatives on the balance sheet at fair value and establishes criteria for designation and effectiveness of hedging relationships. On the date a derivative contract is entered into, the Company may elect to designate the derivative as a fair value hedge, a cash flow hedge, or the hedge of a net investment in a foreign operation. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative that is used in the hedging transaction is highly effective. For those instruments that are designated as a cash flow hedge and meet certain documentary and analytical requirements to qualify for hedge accounting treatment, changes in the fair value for the effective portion are reported in other comprehensive income (“OCI”), net of related income tax effects, and are reclassified to the income statement when the effects of the item being hedged are recognized in the income statement. The Company discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative expires or is sold, terminated, or exercised, or management determines that designation of the derivative as a hedging instrument is no longer appropriate. In situations in which the Company does not elect hedge accounting or hedge accounting is discontinued and the derivative is retained, the Company carries or continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value through earnings. The nature of the Company’s business activities involves the management of various financial and market risks, including those related to changes in interest rates. The Company does not enter into derivative instruments for speculative purposes. The Company manages market and credit risks associated with its derivative instruments by establishing and monitoring limits as to the types and degree of risk that may be undertaken, and by entering into transactions with high-quality counterparties. As of June 30, 2015, the Company’s derivative counterparty had investment grade credit ratings. 7 In July 2013, the Company entered into an interest rate swap agreement whereby the interest rate payable by the Company on a portion of the outstanding balance of the term loan was effectively converted to a fixed rate of 2.53% beginning July 1, 2014. The Company entered into this interest rate swap arrangement to mitigate future interest rate risk associated with its borrowings and has designated it as a cash flow hedge. (See Note 2.) |
Use of Estimates, Policy [Policy Text Block] | l) Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Comprehensive Income, Policy [Policy Text Block] | m) Comprehensive income Total comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net earnings. For the Company, the only other components of total comprehensive income are the change in pension costs and change in fair value of qualifying hedges. |
Segment Reporting, Policy [Policy Text Block] | n) Operating segments Accounting standards require disclosures of certain information about operating segments and about products and services, geographic areas in which the Company operates, and their major customers. The Company has evaluated its operations and has determined that it has two reportable segments - uniforms and related products and remote staffing solutions. (See Note 6.) |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | o) Share-Based Compensation The Company awards share-based compensation as an incentive for employees to contribute to the Company’s long-term success. Historically, the Company has granted options and stock settled stock appreciation rights. In 2015 and 2014, the Company also granted restricted stock awards. In 2003, the stockholders of the Company approved the 2003 Incentive Stock and Awards Plan (the “2003 Plan”), authorizing the granting of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance stock and other stock based compensation. This plan expired in May of 2013, at which time, the stockholders of the Company approved the 2013 Incentive Stock and Awards Plan (the “2013 Plan”), authorizing the granting of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance stock and other stock based compensation. A total of 5,000,000 shares of common stock (subject to adjustment for expirations and cancellations of options outstanding from the 2003 Plan subsequent to its termination) have been reserved for issuance under the 2013 Plan. All options under both plans have been or will be granted with exercise prices at least equal to the fair market value of the shares on the date of grant. At June 30, 2015, the Company had 4,208,196 shares of common stock available for grant of share-based compensation under the 2013 Plan. The Company grants stock options and stock settled stock appreciation rights (“SARS”) to employees that allow them to purchase shares of the Company’s common stock. Options are also granted to outside members of the Board of Directors of the Company. The Company determines the fair value of stock options and SARS at the date of grant using the Black-Scholes valuation model. All options and SARS vest immediately at the date of grant. Awards generally expire five years after the date of grant with the exception of options granted to outside directors, which expire ten years after the date of grant. The Company issues new shares upon the exercise of stock options and SARS. For the three months ended June 30, 2015 and 2014, respectively, the Company recognized $71,000 and $67,000 of share-based compensation related to stock options and SARS recorded in selling and administrative expense in the Consolidated Statements of Comprehensive Income. These expenses were partially offset by $25,000 and $23,000 deferred tax benefits for non-qualified share-based compensation for the three-month periods ended June 30, 2015 and 2014, respectively. For the six months ended June 30, 2015 and 2014, respectively, the Company recognized $828,000 and $853,000 of share-based compensation related to stock options and SARS recorded in selling and administrative expense in the Consolidated Statements of Comprehensive Income. These expenses were partially offset by a $122,000 and $127,000 deferred tax benefit for non-qualified share-based compensation for the six-month periods ended June 30, 2015 and 2014, respectively. On February 7, 2014, the Compensation Committee of the Board of Directors approved a restricted stock grant under the terms of the 2013 Plan of the Company to four members of senior management for a total of 100,000 shares. The fair value of the stock on the date of grant was $7.36 per share for a total value of $736,000. These shares were unvested at the time of grant and will vest if the executives are still employed by the Company on February 7, 2017. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan. On November 7, 2014, the Board of Directors approved a restricted stock grant under the terms of the 2013 Plan to the four independent members of the Board of Directors for a total of 6,016 shares. The fair value of the stock on the date of grant was $11.96 per share for a total value of $72,000. These shares were unvested at the time of grant and will vest if the directors are still serving on the Company’s Board of Directors on November 7, 2017. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan. On April 15, 2015, the Compensation Committee of the Board of Directors approved a restricted stock grant under the terms of the 2013 Plan to a member of management for a total of 1,050 shares. The fair value of the stock on the date of grant was $21.92 per share for a total value of $23,000. These shares were unvested at the time of grant and will vest if the executive is still employed by the Company on April 15, 2018. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan. Expense for all such grants is being recognized on a straight-line basis over the respective service periods. The Company recognized approximately $69,000 and $61,000 in expense associated with such grants for the three-month periods ended June 30, 2015 and 2014, respectively, and approximately $136,000 and $102,000 for the six-month periods ended June 30, 2015 and 2014, respectively. These expenses were offset by deferred tax benefits of $24,000 and $22,000 for the three-month periods ended June 30, 2015 and 2014, respectively, and $48,000 and $29,000 for the six-month periods ended June 30, 2015 and 2014, respectively. As of June 30, 2015, the Company had $466,000 of unrecognized compensation cost expected to be recognized in the future for prior share-based awards. During the six-month periods ended June 30, 2015 and 2014, respectively, the Company received $1,383,000 and $685,000 in cash from stock option exercises. Additionally, during the six-month periods ended June 30, 2015 and 2014, the Company received 7,765 and 5,345 shares of its common stock as payment for issuance of 27,432 and 10,204 shares of its common stock related to the exercise of stock options. A summary of options transactions during the six months ended June 30, 2015 follows: No. of Weighted Average Shares Exercise Price Outstanding December 31, 2014 1,118,058 $ 6.63 Granted 103,308 18.46 Exercised (212,540 ) 7.27 Lapsed (5,000 ) 5.78 Cancelled - - Outstanding June 30, 2015 1,003,826 $ 7.71 At June 30, 2015, options outstanding, all of which were fully vested and exercisable, had an aggregate intrinsic value of $9,055,000. Options exercised during the three-month periods ended June 30, 2015 and 2014 had intrinsic values of $1,792,000 and $172,000, respectively. Options exercised during the six-month periods ended June 30, 2015 and 2014 had intrinsic values of $2,377,000 and $285,000, respectively. The weighted average grant date fair values of the Company’s options granted during the three-month periods ended June 30, 2015 and 2014 were $6.61 and $4.78, respectively. The weighted average grant date fair values of the Company’s options granted during the six-month periods ended June 30, 2015 and 2014 were $5.35 and $4.11, respectively. A summary of SARS transactions during the six months ended June 30, 2015 follows: No. of Weighted Average Shares Exercise Price Outstanding December 31, 2014 522,024 $ 6.17 Granted 53,292 18.66 Exercised (139,542 ) 5.77 Lapsed - - Cancelled - - Outstanding June 30, 2015 435,774 $ 7.82 At June 30, 2015, SARS outstanding, all of which were fully vested and exercisable, had an aggregate intrinsic value of $3,912,000. There were 42,208 SARS exercised during the three-month period ended June 30, 2015. There were 8,335 SARS exercised during the three-month period ended June 30, 2014. SARS exercised during the three-month period ended June 30, 2015 had an intrinsic value of $700,000. There were 139,542 SARS exercised during the six-month period ended June 30, 2015. There were 11,439 SARS exercised during the six-month period ended June 30, 2014. SARS exercised during the six-month period ended June 30, 2015 had an intrinsic value of $1,931,000. There were 53,292 and 68,691 SARS granted during the six-month periods ended June 30, 2015 and 2014, respectively. The weighted average grant date fair values of the Company’s SARS granted during the six-month periods ended June 30, 2015 and 2014 were $5.20 and $4.04, respectively. 9 The following table summarizes significant assumptions utilized to determine the fair value of share-based compensation awards. Three months ended June 30, SARS Options Exercise price 2015 N/A $16.78 2014 N/A $7.96 Market price 2015 N/A $16.78 2014 N/A $7.96 Risk free interest rate (1) 2015 N/A 2.1% 2014 N/A 2.6% Expected award life (years) (2) N/A 10 Expected volatility (3) 2015 N/A 39.0% 2014 N/A 37.3% Expected dividend yield (4) 2015 N/A 1.8% 2014 N/A 3.4% Six months ended June 30, SARS Options Exercise price 2015 $18.66 $16.78 - $18.66 2014 $7.36 $7.36 - $7.96 Market price 2015 $18.66 $16.78 - $18.66 2014 $7.36 $7.36 - $7.96 Risk free interest rate (1) 2015 1.5% 1.5% - 2.1% 2014 1.5% 1.5% - 2.6% Expected award life (years) (2) 5 5 - 10 Expected volatility (3) 2015 34.9% 34.9% - 39.0% 2014 42.5% 37.3% - 42.5% Expected dividend yield (4) 2015 1.6% 1.6% - 1.8% 2014 3.7% 3.4% - 3.7% (1) The risk-free interest rate is based on the yield of a U.S. treasury bond with a similar maturity as the expected life of the awards. (2) The expected life in years for awards granted was based on the historical exercise patterns experienced by the Company when the award is made. (3) The determination of expected stock price volatility for awards granted in each of the three and six-month periods ending June 30, 2015 and 2014 was based on historical prices of Superior’s common stock over a period commensurate with the expected life. (4) The dividend yield assumption is based on the history and expectation of the Company’s dividend payouts. |
Stockholders' Equity, Policy [Policy Text Block] | p) Stock Split On December 29, 2014, the Board of Directors declared a 2-for-1 stock split of the Company’s common stock. The record date of the split was January 12, 2015, and the stock split became effective February 4, 2015. All share and per share information in these consolidated interim financial statements have been restated for all periods presented, giving retroactive effect to the stock split. The Company revised certain historical amounts when it recorded the 2-for-1 stock split. The amounts were immaterial and reclassified within shareholders’ equity between par value and additional paid in capital. |
New Accounting Pronouncements, Policy [Policy Text Block] | q) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) that will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. Additionally, the guidance requires disaggregated disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The amendments are required to be adopted by the Company on January 1, 2017. The FASB has implemented a one year delay in the effective date of Topic 606. Transition to the new guidance may be done using either a full or modified retrospective method. The Company is currently evaluating the full effect that the adoption of this standard will have on the Company’s consolidated financial statements. |
Note 1 - Summary of Significa13
Note 1 - Summary of Significant Interim Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net earnings used in the computation of basic and diluted earnings per share $ 3,624,000 $ 3,907,000 $ 5,667,000 $ 5,125,000 Weighted average shares outstanding - basic 13,730,646 13,207,804 13,657,784 13,168,375 Common stock equivalents 846,696 440,736 904,929 432,765 Weighted average shares outstanding - diluted 14,577,342 13,648,540 14,562,713 13,601,140 Per Share Data: Basic Net earnings $ 0.26 $ 0.30 $ 0.41 $ 0.39 Diluted Net earnings $ 0.25 $ 0.29 $ 0.39 $ 0.38 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | No. of Weighted Average Shares Exercise Price Outstanding December 31, 2014 1,118,058 $ 6.63 Granted 103,308 18.46 Exercised (212,540 ) 7.27 Lapsed (5,000 ) 5.78 Cancelled - - Outstanding June 30, 2015 1,003,826 $ 7.71 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity [Table Text Block] | No. of Weighted Average Shares Exercise Price Outstanding December 31, 2014 522,024 $ 6.17 Granted 53,292 18.66 Exercised (139,542 ) 5.77 Lapsed - - Cancelled - - Outstanding June 30, 2015 435,774 $ 7.82 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three months ended June 30, SARS Options Exercise price 2015 N/A $16.78 2014 N/A $7.96 Market price 2015 N/A $16.78 2014 N/A $7.96 Risk free interest rate (1) 2015 N/A 2.1% 2014 N/A 2.6% Expected award life (years) (2) N/A 10 Expected volatility (3) 2015 N/A 39.0% 2014 N/A 37.3% Expected dividend yield (4) 2015 N/A 1.8% 2014 N/A 3.4% Six months ended June 30, SARS Options Exercise price 2015 $18.66 $16.78 - $18.66 2014 $7.36 $7.36 - $7.96 Market price 2015 $18.66 $16.78 - $18.66 2014 $7.36 $7.36 - $7.96 Risk free interest rate (1) 2015 1.5% 1.5% - 2.1% 2014 1.5% 1.5% - 2.6% Expected award life (years) (2) 5 5 - 10 Expected volatility (3) 2015 34.9% 34.9% - 39.0% 2014 42.5% 37.3% - 42.5% Expected dividend yield (4) 2015 1.6% 1.6% - 1.8% 2014 3.7% 3.4% - 3.7% |
Note 2 - Long-Term Debt (Tables
Note 2 - Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | June 30, December 31, 2015 2014 Term loan payable to Fifth Third Bank, maturing $ 23,437,000 $ 24,375,000 Note payable to Fifth Third Bank, pursuant to revolving credit agreement, maturing July 1, 2016 - 440,000 Note payable to Fifth Third Bank, pursuant to revolving credit agreement, maturing July 1, 2018 - 220,000 $ 23,437,000 $ 25,035,000 Less payments due within one year included in current liabilities 2,937,000 2,375,000 Long-term debt less current maturities $ 20,500,000 $ 22,660,000 |
Note 3 - Periodic Pension Exp15
Note 3 - Periodic Pension Expense (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Six Months 2015 2014 2015 2014 Service cost - benefits earned during the period $ 26,000 $ 20,000 $ 52,000 $ 40,000 Interest cost on projected benefit obligation 238,000 251,000 476,000 501,000 Expected return on plan assets (335,000 ) (349,000 ) (671,000 ) (697,000 ) Recognized actuarial loss 200,000 81,000 399,000 162,000 Settlement loss 311,000 - 311,000 - Net periodic pension cost $ 440,000 $ 3,000 $ 567,000 $ 6,000 |
Note 6 - Operating Segment In16
Note 6 - Operating Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Uniforms and Related Products Remote Staffing Solutions Intersegment Eliminations Total As of and For the Three Months Ended June 30, 2015 Net sales $ 51,256,000 $ 3,782,000 $ (922,000 ) $ 54,116,000 Gross margin $ 17,026,000 $ 2,110,000 $ (605,000 ) $ 18,531,000 Selling and administrative expenses 12,317,000 1,296,000 (605,000 ) 13,008,000 Interest expense 129,000 - - 129,000 Income before income taxes $ 4,580,000 814,000 $ - $ 5,394,000 Depreciation and amortization $ 864,000 73,000 $ - $ 937,000 Capital expenditures $ 569,000 624,000 $ - $ 1,193,000 Total assets $ 138,079,000 $ 11,225,000 $ (1,956,000 ) $ 147,348,000 Uniforms and Related Products Remote Staffing Solutions Intersegment Eliminations Total As of and For the Three Months Ended June 30, 2014 Net sales $ 51,372,000 $ 2,735,000 $ (877,000 ) $ 53,230,000 Gross margin $ 18,050,000 $ 1,516,000 $ (560,000 ) $ 19,006,000 Selling and administrative expenses 12,608,000 978,000 (560,000 ) 13,026,000 Interest expense 113,000 - - 113,000 Income before income taxes $ 5,329,000 $ 538,000 $ - $ 5,867,000 Depreciation and amortization $ 882,000 $ 67,000 $ - $ 949,000 Capital expenditures $ 203,000 $ 85,000 $ - $ 288,000 Total assets $ 132,261,000 $ 8,380,000 $ (1,299,000 ) $ 139,342,000 Uniforms and Related Products Remote Staffing Solutions Intersegment Eliminations Total As of and For the Six Months Ended June 30, 2015 Net sales $ 95,044,000 $ 7,248,000 $ (1,829,000 ) $ 100,463,000 Gross margin $ 31,441,000 $ 4,106,000 $ (1,220,000 ) $ 34,327,000 Selling and administrative expenses 24,250,000 2,415,000 (1,220,000 ) 25,445,000 Interest expense 265,000 - - 265,000 Income before income taxes $ 6,926,000 1,691,000 $ - $ 8,617,000 Depreciation and amortization $ 1,748,000 142,000 $ - $ 1,890,000 Capital expenditures $ 1,262,000 837,000 $ - $ 2,099,000 Total assets $ 138,079,000 $ 11,225,000 $ (1,956,000 ) $ 147,348,000 Uniforms and Related Products Remote Staffing Solutions Intersegment Eliminations Total As of and For the Six Months Ended June 30, 2014 Net sales $ 90,519,000 $ 5,472,000 $ (1,734,000 ) $ 94,257,000 Gross margin $ 31,079,000 $ 3,088,000 $ (1,105,000 ) $ 33,062,000 Selling and administrative expenses 24,264,000 1,950,000 (1,105,000 ) 25,109,000 Interest expense 208,000 - - 208,000 Income before income taxes $ 6,607,000 $ 1,138,000 $ - $ 7,745,000 Depreciation and amortization $ 1,760,000 $ 127,000 $ - $ 1,887,000 Capital expenditures $ 841,000 $ 256,000 $ - $ 1,097,000 Total assets $ 132,261,000 $ 8,380,000 $ (1,299,000 ) $ 139,342,000 |
Note 1 - Summary of Significa17
Note 1 - Summary of Significant Interim Accounting Policies (Details Textual) | Apr. 15, 2015USD ($)$ / sharesshares | Feb. 04, 2015 | Nov. 07, 2014USD ($)$ / sharesshares | Feb. 07, 2014USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jul. 31, 2013 |
Stock Compensation Plan [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 0 | 10,000 | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Weight Average Exercise Price | $ / shares | $ 8 | ||||||||
Outside Directors [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||
Selling, General and Administrative Expenses [Member] | |||||||||
Allocated Share-based Compensation Expense | $ 71,000 | $ 67,000 | $ 828,000 | $ 853,000 | |||||
Restricted Stock [Member] | |||||||||
Allocated Share-based Compensation Expense | 69,000 | 61,000 | 136,000 | 102,000 | |||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 24,000 | $ 22,000 | $ 48,000 | $ 29,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 1,050 | 6,016 | 100,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 21.92 | $ 11.96 | $ 7.36 | ||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 23,000 | $ 72,000 | $ 736,000 | ||||||
Stock Appreciation Rights (SARs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 53,292 | 68,691 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 18.66 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 5.20 | $ 4.04 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 3,912,000 | $ 3,912,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | shares | 42,208 | 8,335 | 139,542 | 11,439 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercises in Period, Intrinsic Value | $ 700,000 | $ 1,931,000 | |||||||
Common Stock [Member] | |||||||||
Stock Repurchased During Period, Shares | shares | 7,765 | 5,345 | |||||||
Shares, Issued | shares | 27,432 | 10,204 | 27,432 | 10,204 | |||||
Amortization of Intangible Assets | $ 516,000 | $ 516,000 | $ 1,033,000 | $ 1,033,000 | |||||
Advertising Expense | 64,000 | 32,000 | 90,000 | 65,000 | |||||
Shipping, Handling and Transportation Costs | $ 2,229,000 | 2,231,000 | $ 4,626,000 | 4,348,000 | |||||
Derivative, Fixed Interest Rate | 2.53% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 5,000,000 | 5,000,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 4,208,196 | 4,208,196 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 25,000 | 23,000 | $ 122,000 | 127,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 466,000 | 466,000 | |||||||
Proceeds from Stock Options Exercised | 1,383,000 | 685,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 9,055,000 | 9,055,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1,792,000 | $ 172,000 | $ 2,377,000 | $ 285,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 6.61 | $ 4.78 | $ 5.35 | $ 4.11 | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 |
Note 1 - Reconciliation of Basi
Note 1 - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net earnings used in the computation of basic and diluted earnings per share | $ 3,624,000 | $ 3,907,000 | $ 5,667,000 | $ 5,125,000 |
Weighted average shares outstanding - basic (in shares) | 13,730,646 | 13,207,804 | 13,657,784 | 13,168,375 |
Common stock equivalents (in shares) | 846,696 | 440,736 | 904,929 | 432,765 |
Weighted average shares outstanding - diluted (in shares) | 14,577,342 | 13,648,540 | 14,562,713 | 13,601,140 |
Net income (in dollars per share) | $ 0.26 | $ 0.30 | $ 0.41 | $ 0.39 |
Net earnings (in dollars per share) | $ 0.25 | $ 0.29 | $ 0.39 | $ 0.38 |
Note 1 - Stock Option Activity
Note 1 - Stock Option Activity (Details) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Outstanding December 31, 2014 (in shares) | 1,003,826 |
Outstanding December 31, 2014 (in dollars per share) | $ 7.71 |
Granted (in shares) | 103,308 |
Granted (in dollars per share) | $ 18.46 |
Exercised (in shares) | (212,540) |
Exercised (in dollars per share) | $ 7.27 |
Lapsed (in shares) | (5,000) |
Lapsed (in dollars per share) | $ 5.78 |
Note 1 - Stock Appreciation Rig
Note 1 - Stock Appreciation Rights Activity (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Outstanding December 31, 2014 (in shares) | 435,774 | 435,774 |
Outstanding December 31, 2014 (in dollars per share) | $ 7.82 | $ 7.82 |
Granted (in shares) | 53,292 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 18.66 | |
Exercised (in shares) | (42,208) | (139,542) |
Exercised (in dollars per share) | $ 5.77 |
Note 1 - Significant Assumption
Note 1 - Significant Assumptions for Share-based Compensation Awards (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Stock Appreciation Rights (SARs) [Member] | |||||
2015 (in dollars per share) | |||||
2015 (in dollars per share) | |||||
2,015 | [1] | ||||
Expected award life (years) (2) | [2] | ||||
2,015 | [3] | ||||
2,015 | [4] | ||||
Employee Stock Option [Member] | Minimum [Member] | |||||
2015 (in dollars per share) | $ 16.78 | $ 7.36 | $ 16.78 | $ 7.36 | |
2015 (in dollars per share) | $ 16.78 | $ 7.36 | |||
2,015 | [1] | 1.50% | 1.50% | ||
Expected award life (years) (2) | [2] | 5 years | |||
2,015 | [3] | 34.90% | 37.30% | ||
2,015 | [4] | 1.60% | 3.40% | ||
Employee Stock Option [Member] | Maximum [Member] | |||||
2015 (in dollars per share) | 18.66 | 7.96 | $ 18.66 | $ 7.96 | |
2015 (in dollars per share) | $ 18.66 | $ 7.96 | |||
2,015 | [1] | 2.10% | 2.60% | ||
Expected award life (years) (2) | [2] | 10 years | |||
2,015 | [3] | 39.00% | 42.50% | ||
2,015 | [4] | 1.80% | 3.70% | ||
Employee Stock Option [Member] | |||||
2015 (in dollars per share) | 16.78 | 7.96 | $ 16.78 | $ 7.96 | |
2015 (in dollars per share) | $ 16.78 | $ 7.96 | |||
2,015 | [1] | 2.10% | 2.60% | ||
Expected award life (years) (2) | [2] | 10 years | |||
2,015 | [3] | 39.00% | 37.30% | ||
2,015 | [4] | 1.80% | 3.40% | ||
[1] | The risk-free interest rate is based on the yield of a U.S. treasury bond with a similar maturity as the expected life of the awards. | ||||
[2] | The expected life in years for awards granted was based on the historical exercise patterns experienced by the Company when the award is made. | ||||
[3] | The determination of expected stock price volatility for awards granted in each of the three and six-month periods ending June 30, 2015 and 2014 was based on historical prices of Superior’s common stock over a period commensurate with the expected life. | ||||
[4] | The dividend yield assumption is based on the history and expectation of the Company’s dividend payouts. |
Note 2 - Long-Term Debt (Detail
Note 2 - Long-Term Debt (Details Textual) | 1 Months Ended | 6 Months Ended | 24 Months Ended | |||||
Jul. 31, 2018USD ($) | Jul. 31, 2013USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | May. 01, 2014USD ($) | Oct. 22, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2013USD ($) | |
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.95% | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | ||||||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.10% | |||||||
Permitted Investments In Subsidiaries | $ 5,000,000 | $ 1,000,000 | ||||||
Amended Credit Agreement [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.95% | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.14% | 1.14% | ||||||
Amended Credit Agreement [Member] | Term Loan [Member] | ||||||||
Debt Instrument, Face Amount | $ 30,000,000 | |||||||
Scenario, Forecast [Member] | ||||||||
Debt Instrument, Periodic Payment, Principal | $ 3,250,000 | |||||||
Add on Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.95% | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | ||||||
Add on Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||||||
Per Month through July 1, 2015 [Member] | ||||||||
Debt Instrument, Periodic Payment, Principal | $ 187,500 | |||||||
Per Month through June 1, 2018 [Member] | ||||||||
Debt Instrument, Periodic Payment, Principal | $ 250,000 | |||||||
Interest Rate Swap [Member] | ||||||||
Interest Rate Derivative Assets, at Fair Value | $ (173,000) | $ (173,000) | ||||||
Increase (Decrease) in Derivative Assets | 173,000 | |||||||
Other Tax Expense (Benefit) | $ 61,000 | |||||||
Senior Debt [Member] | ||||||||
Ratio of Maximum Funded Indebtedness to EBITDA | 3.5 | 3.5 | ||||||
Derivative, Fixed Interest Rate | 2.53% | |||||||
Derivative, Notional Amount | $ 14,250,000 | |||||||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 1,437,000 | $ 1,437,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 3,000,000 | 3,000,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 3,000,000 | 3,000,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 16,000,000 | $ 16,000,000 | ||||||
Debt Issuance Cost | $ 68,000 | |||||||
Ratio of Maximum Funded Indebtedness to EBITDA | 4 | 4 | ||||||
Fixed Charges Numerator | 1.25 | 1.25 |
Note 2 - Long-Term Debt (Deta23
Note 2 - Long-Term Debt (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Term Loan [Member] | ||
Term loan payable to Fifth Third Bank, maturing July 1, 2018 | $ 23,437,000 | $ 24,375,000 |
Note Payable Maturing July 1, 2016 [Member] | ||
Term loan payable to Fifth Third Bank, maturing July 1, 2018 | 440,000 | |
Note Payable Maturing July 1, 2018 [Member] | ||
Term loan payable to Fifth Third Bank, maturing July 1, 2018 | 220,000 | |
Term loan payable to Fifth Third Bank, maturing July 1, 2018 | $ 23,437,000 | 25,035,000 |
Less payments due within one year included in current liabilities | 2,937,000 | 2,375,000 |
Long-term debt less current maturities | $ 20,500,000 | $ 22,660,000 |
Note 3 - Periodic Pension Exp24
Note 3 - Periodic Pension Expense (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Contributions | $ 0 | $ 0 |
Note 3 - Net Periodic Benefit C
Note 3 - Net Periodic Benefit Cost (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Service cost - benefits earned during the period | $ 26,000 | $ 20,000 | $ 52,000 | $ 40,000 |
Interest cost on projected benefit obligation | 238,000 | 251,000 | 476,000 | 501,000 |
Expected return on plan assets | (335,000) | (349,000) | (671,000) | (697,000) |
Recognized actuarial loss | 200,000 | $ 81,000 | 399,000 | $ 162,000 |
Settlement loss | 311,000 | 311,000 | ||
Net periodic pension cost | $ 440,000 | $ 3,000 | $ 567,000 | $ 6,000 |
Note 4 - Supplemental Cash Fl26
Note 4 - Supplemental Cash Flow Information (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes Paid | $ 2,928,000 | $ 2,172,000 |
Interest Paid | $ 228,000 | $ 165,000 |
Company Stock Received in Lieu of Cash Stock Options Exercised | 7,765 | 5,345 |
Stock Issued During Period, Shares, New Issues | 27,432 | 10,204 |
Note 6 - Operating Segment In27
Note 6 - Operating Segment Information (Details Textual) | 6 Months Ended |
Jun. 30, 2015 | |
Number of Operating Segments | 2 |
Note 6 - Information Related to
Note 6 - Information Related to the Operations of the Company's Operating Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Uniforms and Related Products [Member] | ||||
Net sales | $ 51,256,000 | $ 51,372,000 | $ 95,044,000 | $ 90,519,000 |
Gross margin | 17,026,000 | 18,050,000 | 31,441,000 | 31,079,000 |
Selling and administrative expenses | 12,317,000 | 12,608,000 | 24,250,000 | 24,264,000 |
Interest expense | 129,000 | 113,000 | 265,000 | 208,000 |
Income before income taxes | 4,580,000 | 5,329,000 | 6,926,000 | 6,607,000 |
Depreciation and amortization | 864,000 | 882,000 | 1,748,000 | 1,760,000 |
Capital expenditures | 569,000 | 203,000 | 1,262,000 | 841,000 |
Total assets | 138,079,000 | 132,261,000 | 138,079,000 | 132,261,000 |
Remote Staffing Solutions [Member] | ||||
Net sales | 3,782,000 | 2,735,000 | 7,248,000 | 5,472,000 |
Gross margin | 2,110,000 | 1,516,000 | 4,106,000 | 3,088,000 |
Selling and administrative expenses | $ 1,296,000 | $ 978,000 | $ 2,415,000 | $ 1,950,000 |
Interest expense | ||||
Income before income taxes | $ 814,000 | $ 538,000 | $ 1,691,000 | $ 1,138,000 |
Depreciation and amortization | 73,000 | 67,000 | 142,000 | 127,000 |
Capital expenditures | 624,000 | 85,000 | 837,000 | 256,000 |
Total assets | 11,225,000 | 8,380,000 | 11,225,000 | 8,380,000 |
Intersegment Eliminations [Member] | ||||
Net sales | (922,000) | (877,000) | (1,829,000) | (1,734,000) |
Gross margin | (605,000) | (560,000) | (1,220,000) | (1,105,000) |
Selling and administrative expenses | $ (605,000) | $ (560,000) | $ (1,220,000) | $ (1,105,000) |
Interest expense | ||||
Income before income taxes | ||||
Depreciation and amortization | ||||
Capital expenditures | ||||
Total assets | $ (1,956,000) | $ (1,299,000) | $ (1,956,000) | $ (1,299,000) |
Net sales | 54,116,000 | 53,230,000 | 100,463,000 | 94,257,000 |
Gross margin | 18,531,000 | 19,006,000 | 34,327,000 | 33,062,000 |
Selling and administrative expenses | 13,008,000 | 13,026,000 | 25,445,000 | 25,109,000 |
Interest expense | 129,000 | 113,000 | 265,000 | 208,000 |
Income before income taxes | 5,394,000 | 5,867,000 | 8,617,000 | 7,745,000 |
Depreciation and amortization | 937,000 | 949,000 | 1,890,000 | 1,887,000 |
Capital expenditures | 1,193,000 | 288,000 | 2,099,000 | 1,097,000 |
Total assets | $ 147,348,000 | $ 139,342,000 | $ 147,348,000 | $ 139,342,000 |
Uncategorized Items - sgc-20150
Label | Element | Value |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 1,118,058 |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 6.63 |
Stock Appreciation Rights (SARs) [Member] | ||
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber | 522,024 |
sgc_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsNonOptionOutstandingWeightedAverageGrantDateFairValue | sgc_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsNonOptionOutstandingWeightedAverageGrantDateFairValue | $ 6.17 |