EXHIBIT 99.1
NEWS RELEASE
Superior Uniform Group, Inc.
A NASDAQ Listed Company: SGC
10055 Seminole Boulevard
Seminole, Florida 33772-2539
Telephone (727) 397-9611
Fax (727) 803-2642
Contact:
Andrew D. Demott, Jr. | | Hala Elsherbini, Halliburton Investor Relations |
COO, CFO & Treasurer | OR | (972) 458-8000 |
(727) 803-7135 | | |
| | | |
| | | For Immediate Release |
SUPERIOR UNIFORM GROUP, INC. REPORTS FIRST QUARTER
OPERATING RESULTS
| | ● | Net sales increase 25.1 percent |
| | ● | Net sales increase 16.9 percent excluding net sales from BAMKO |
| | ● | EPS (Diluted) increases over 7.1 percent |
| | ● | EPS (Diluted) increases over 35.7 percent, excluding $0.9 million in pre-tax BAMKO acquisition related expenses |
SEMINOLE, Florida – April 28, 2016 - Superior Uniform Group, Inc. (NASDAQ: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the first quarter ended March 31, 2016, net sales increased 25.1 percent to $58.0 million compared with 2015 first quarter net sales of $46.3 million. Net income for the 2016 first quarter was $2.3 million, or $0.15 per diluted share, compared with $2.0 million, or $0.14 per diluted share, reported for the quarter ended March 31, 2015. Net income for the quarter ended March 31, 2016 was reduced by pre-tax expenses, related to the BAMKO acquisition, of approximately $0.9 million. After taxes, these expenses reduced diluted earnings per share approximately $0.04.
Michael Benstock, Chief Executive Officer, commented, “We are very pleased to report our 14th consecutive quarterly sales increase, with net sales up 25.1 percent in the first quarter of 2016. BAMKO contributed net sales of $3.8 million in the first quarter from the March 1, 2016 effectivedate of the acquisition. Net sales increased by 16.9 percent excluding the impact of BAMKO. Our income for the quarter was reduced by approximately $0.9 million in pre-tax acquisition related expenses. Excluding the impact of these expenses, BAMKO contributed $0.1 million of pre-tax earnings in the current quarter.
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“Exclusive of the acquisition of BAMKO, our Uniforms and Related Products segment continued its sales momentum with net sales increasing by 15.7 percent in the first quarter of 2016 in comparison with the same period in 2015.
“The transition for BAMKO is proceeding very well at this point. They are experiencing positive sales momentum. Their net sales for the full first quarter, including the two months prior to the acquisition, were approximately $10.4 million in 2016 as compared to $7.1 million in the prior year first quarter.
“We also continue to see significant growth in our Remote Staffing Solutions segment, with an increase in net sales to outside customers of approximately 36.2 percent in the first quarter of 2016 as compared to the same period of 2015.
“Our strong financial position allows us to take advantage of opportunities like the BAMKO acquisition as they arise without constraining our ability to invest in the future of our other businesses. We will continue to seek accretive acquisitions in the future to supplement our continued growth.”
CONFERENCE CALL
Superior Uniform Group will hold a conference call on Thursday, April 28, 2016 at 2:00 p.m. Eastern Time to discuss the Company’s results. Interested individuals may join theteleconference by dialing (844) 861-5505 for U.S. dialers and (412) 317-6586 for International dialers. The Canadian Toll Free number is (866) 605-3852. Please ask to be joined into the Superior Uniform Group call. The live webcast and archived replay can be accessed in the investor information section of the Company’s website atwww.superioruniformgroup.com.
A telephone replay of the teleconference will be available one hour after the end of the call through 2:00 p.m. Eastern Time on May 5, 2016. To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations. Canadian dialers can access the replay at (855) 669-9658. Please reference conference number10084213for all replay access.
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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 better communicate 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 sells its wide range of products through its signature brandsSuperior I.D.™,Fashion Seal Healthcare® and
HPI Direct®. Superior Uniform Group is also the parent company forThe Office Gurus®, whichprovides call center and BPO solutions to a variety of customers, andBAMKO®, its innovative promotional products company that provides custom branding solutions to some of the nation’s strongest brands.
For more information, call (800) 727-8643 or visitwww.SuperiorUniformGroup.com.
Statements contained in this press release which are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties, including without limitation, those identified in the Company’s SEC filings, which could cause actual results to differ from those projected.
Comparative figures are as follows:
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
| |
Three Months Ended March 31, |
(Unaudited) |
| | | 2016 | | | 2015 | |
| | | | | | | | | |
Net sales | | $ | 57,968,000 | | | $ | 46,347,000 | |
| | | | | | | | | |
Costs and expenses: | | | | | | | | |
Cost of goods sold | | | 37,947,000 | | | | 30,551,000 | |
Selling and administrative expenses | | | 16,463,000 | | | | 12,437,000 | |
Interest expense | | | 148,000 | | | | 136,000 | |
| | | | 54,558,000 | | | | 43,124,000 | |
| | | | | | | | | |
Income before taxes on income | | | 3,410,000 | | | | 3,223,000 | |
Income tax expense | | | 1,150,000 | | | | 1,180,000 | |
| | | | | | | | | |
Net income | | $ | 2,260,000 | | | $ | 2,043,000 | |
| | | | | | | | | |
Weighted average number of shares outstanding during the period | | | | | | | | |
(Basic) | | | 13,927,063 | | | | 13,584,922 | |
(Diluted) | | | 14,668,658 | | | | 14,548,084 | |
Per Share Data: | | | | | | | | |
Basic | | | | | | | | |
Net income | | $ | 0.16 | | | $ | 0.15 | |
Diluted | | | | | | | | |
Net income | | $ | 0.15 | | | $ | 0.14 | |
| | | | | | | | | |
Cash dividends per common share | | $ | 0.0825 | | | $ | 0.075 | |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
| |
ASSETS |
| | | March 31, | | | | | |
| | | 2016 | | | December 31, | |
| | | (Unaudited) | | | 2015 | |
CURRENT ASSETS: | | | | | | | | |
Cash and cash equivalents | | $ | 2,289,000 | | | $ | 1,036,000 | |
Accounts receivable, less allowance for doubtful accountsof $1,060,000 and $848,000, respectively | | | 38,554,000 | | | | 29,914,000 | |
Accounts receivable - other | | | 3,305,000 | | | | 3,262,000 | |
Prepaid expenses and other current assets | | | 9,625,000 | | | | 6,214,000 | |
Inventories* | | | 62,810,000 | | | | 63,573,000 | |
TOTAL CURRENT ASSETS | | | 116,583,000 | | | | 103,999,000 | |
| | | | | | | | | |
PROPERTY, PLANT AND EQUIPMENT, NET | | | 24,874,000 | | | | 22,524,000 | |
OTHER INTANGIBLE ASSETS, NET | | | 25,035,000 | | | | 14,222,000 | |
GOODWILL | | | 11,408,000 | | | | 4,135,000 | |
DEFERRED INCOME TAXES | | | 5,218,000 | | | | 4,980,000 | |
OTHER ASSETS | | | 2,320,000 | | | | 1,871,000 | |
| | | $ | 185,438,000 | | | $ | 151,731,000 | |
| | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |
| | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | |
Accounts payable | | $ | 11,324,000 | | | $ | 11,775,000 | |
Other current liabilities | | | 6,794,000 | | | | 8,307,000 | |
Current portion of long-term debt | | | 6,429,000 | | | | 2,750,000 | |
Current portion of acquisition-related contigent liabilities | | | - | | | | 1,787,000 | |
TOTAL CURRENT LIABILITIES | | | 24,547,000 | | | | 24,619,000 | |
| | | | | | | | | |
LONG-TERM DEBT, net of issuance costs | | | 41,634,000 | | | | 21,131,000 | |
LONG-TERM PENSION LIABILITY | | | 8,889,000 | | | | 8,925,000 | |
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITIES | | | 9,284,000 | | | | 3,866,000 | |
OTHER LONG-TERM LIABILITIES | | | 520,000 | | | | 500,000 | |
TOTAL SHAREHOLDERS' EQUITY | | | 100,564,000 | | | | 92,690,000 | |
| | | $ | 185,438,000 | | | $ | 151,731,000 | |
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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Three Months Ended March 31, |
(Unaudited) |
| | | 2016 | | | 2015 | |
| | | | | | | | | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | |
Net income | | $ | 2,260,000 | | | $ | 2,043,000 | |
Adjustments to reconcile net incometo net cash used in operating activities: | | | | | | | | |
Depreciation and amortization | | | 1,103,000 | | | | 953,000 | |
Provision for bad debts - accounts receivable | | | 67,000 | | | | 59,000 | |
Share-based compensation expense | | | 831,000 | | | | 824,000 | |
Deferred income tax provision | | | (479,000 | ) | | | 62,000 | |
Loss on sales of property, plant and equipment | | | - | | | | 12,000 | |
Accretion of acquisition-related contingent liability | | | 35,000 | | | | 33,000 | |
| | | | | | | | | |
Changes in assets and liabilities, net of acquisition of business: | | | | | | | | |
Accounts receivable - trade | | | (3,650,000 | ) | | | 804,000 | |
Accounts receivable - other | | | (43,000 | ) | | | (435,000 | ) |
Inventories | | | 1,001,000 | | | | (1,639,000 | ) |
Prepaid expenses and other current assets | | | (184,000 | ) | | | (2,230,000 | ) |
Other assets | | | (281,000 | ) | | | (2,000 | ) |
Accounts payable | | | (1,833,000 | ) | | | 1,142,000 | |
Other current liabilities | | | (2,245,000 | ) | | | (2,887,000 | ) |
Long-term pension liability | | | 485,000 | | | | 127,000 | |
Other long-term liabilities | | | 20,000 | | | | 20,000 | |
Net cash used in operating activities | | | (2,913,000 | ) | | | (1,114,000 | ) |
| | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
Additions to property, plant and equipment | | | (2,707,000 | ) | | | (906,000 | ) |
Acquisition of business, net of acquired cash | | | (15,252,000 | ) | | | - | |
Net cash used in investing activities | | | (17,959,000 | ) | | | (906,000 | ) |
| | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
Proceeds from long-term debt | | | 74,363,000 | | | | 13,220,000 | |
Repayment of long-term debt | | | (50,250,000 | ) | | | (10,255,000 | ) |
Payment of cash dividends | | | (1,133,000 | ) | | | (1,000,000 | ) |
Payment of contingent liability | | | (1,800,000 | ) | | | - | |
Proceeds received on exercise of stock options | | | 322,000 | | | | 356,000 | |
Excess tax benefit from equity-related transactions | | | 593,000 | | | | 132,000 | |
| | | | | | | | | |
Net cash provided by financing activities | | | 22,095,000 | | | | 2,453,000 | |
| | | | | | | | | |
Effect of currency exchange rates on cash | | | 30,000 | | | | - | |
| | | | | | | | | |
Net increase in cash and cash equivalents | | | 1,253,000 | | | | 433,000 | |
| | | | | | | | | |
Cash and cash equivalents balance, beginning of year | | | 1,036,000 | | | | 4,586,000 | |
| | | | | | | | | |
Cash and cash equivalents balance, end of period | | $ | 2,289,000 | | | $ | 5,019,000 | |
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