• Net Sales Increase 8.4%
  • Earnings Per Share (Diluted) Increases over 16%
  • 12th Consecutive Quarter with Sales Increase

SEMINOLE, Fla., Oct. 22, 2015 (GLOBE NEWSWIRE) — Superior Uniform Group, Inc. (NASDAQ:SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the third quarter ended September 30, 2015, net sales increased 8.4 percent to $56.7 million compared with 2014 third quarter net sales of $52.3 million. Net income for the 2015 third quarter was $4.0 million, or $0.28 per diluted share, compared with $3.4 million, or $0.24 per diluted share, reported for the quarter ended September 30, 2014.

Michael Benstock, Chief Executive Officer, commented, “We are pleased to report an increase of 8.4 percent in net sales representing our 12th consecutive quarterly net sales increase. We continue to see positive results from our growth strategies, demonstrated by our recently awarded second GPO (Group Purchasing Organization) contract. We are also quite pleased to report an increase of approximately 16.7 percent in our earnings per diluted share in the current quarter.

“Operationally, we are meeting our growth milestones, and customer response to our product offerings remains strong in all areas of our business. Our solid financial position and healthy balance sheet allows us to respond more easily to changing market and economic conditions while continuing to deliver organic growth supplemented by accretive acquisitions.”

CONFERENCE CALL

Superior Uniform Group will hold a conference call on Thursday, October 22, 2015 at 2:00 p.m. Eastern Time to discuss the Company’s results. Interested individuals may join the teleconference by dialing (877) 317-6789 for U.S. dialers and (412) 317-6789 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 at www.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 October 29, 2015. 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 number 10073406 for all replay access.

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 primarily sells its products through its signature brands Superior I.D., Fashion Seal Healthcare® and HPI Direct®. Superior Uniform Group is also the parent company for The Office Gurus®, its BPO and Contact Center vertical.

For more information, call (800) 727-8643 or visit www.SuperiorUniformGroup.com.

Statements contained in this press release which are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties, including without limitation, those identified in the Company’s SEC filings, which could cause actual results to differ from those projected.

Comparative figures are as follows:

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
     
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
     
THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
   
     
  2015 2014
     
Net sales  $ 56,662,000  $52,291,000
     
Costs and expenses:    
Cost of goods sold 37,438,000 33,858,000
Selling and administrative expenses 13,513,000 13,121,000
Interest expense 130,000 144,000
  51,081,000 47,123,000
     
Income before taxes on income 5,581,000 5,168,000
Income tax expense 1,550,000 1,800,000
Net income  $ 4,031,000  $ 3,368,000
     
Weighted average number of shares outstanding during the period  
(Basic) 13,833,561 13,375,566
(Diluted) 14,585,688 14,004,202
Per Share Data:    
Basic    
Net income  $ 0.29  $ 0.25
Diluted    
Net income  $ 0.28  $ 0.24
     
     
Cash dividends per common share  $ 0.083  $ 0.075
 
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
     
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
NINE MONTHS ENDED SEPTEMBER 30,
(Continued)
(Unaudited)
     
     
  2015 2014
     
Net sales  $ 157,125,000  $ 146,548,000
     
Costs and expenses:    
Cost of goods sold 103,574,000 95,053,000
Selling and administrative expenses 38,958,000 38,230,000
Interest expense 395,000 352,000
  142,927,000 133,635,000
     
Income before taxes on income 14,198,000 12,913,000
Income tax expense 4,500,000 4,420,000
     
Net income  $ 9,698,000  $ 8,493,000
     
Weighted average number of shares outstanding during the period  
(Basic) 13,716,376 13,237,438
(Diluted) 14,570,371 13,735,494
Per Share Data:    
Basic    
Net income  $ 0.71  $ 0.64
Diluted    
Net income  $ 0.67  $ 0.62
     
Cash dividends per common share  $ 0.233  $ 0.210
 
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
     
ASSETS
     
  September 30,  
  2015 December 31,
  (Unaudited) 2014
CURRENT ASSETS:    
Cash and cash equivalents  $ 3,074,000  $ 4,586,000
Accounts receivable, less allowance for doubtful accounts of $840,000 and $680,000, respectively 35,059,000 27,956,000
Accounts receivable – other 3,088,000  4,135,000
Inventories 62,284,000  58,282,000
Prepaid expenses and other current assets  4,813,000  4,497,000
TOTAL CURRENT ASSETS 108,318,000 99,456,000
     
PROPERTY, PLANT AND EQUIPMENT, NET 19,106,000  16,285,000
OTHER INTANGIBLE ASSETS, NET  14,738,000  16,288,000
GOODWILL  4,135,000  4,135,000
DEFERRED INCOME TAXES  4,485,000  3,636,000
OTHER ASSETS 1,180,000  137,000
   $ 151,962,000  $ 139,937,000
     
LIABILITIES AND SHAREHOLDERS’ EQUITY
     
CURRENT LIABILITIES:    
Accounts payable  $ 15,497,000  $ 9,706,000
Other current liabilities 8,125,000  8,995,000
Current portion of long-term debt 3,000,000  2,375,000
Current portion of acquisition-related contingent liability 1,978,000  1,189,000
TOTAL CURRENT LIABILITIES 28,600,000  22,265,000
     
LONG TERM DEBT 21,130,000 22,660,000
LONG-TERM PENSION LIABILITY 6,826,000 8,084,000
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITY 3,848,000 5,745,000
OTHER LONG-TERM LIABILITIES 480,000 580,000
DEFERRED INCOME TAXES 191,000
TOTAL SHAREHOLDERS’ EQUITY 91,078,000 80,412,000
   $ 151,962,000  $ 139,937,000
 
 SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
     
CONSOLIDATED STATEMENTS OF CASH FLOWS
     
NINE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
     
  2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income  $ 9,698,000  $ 8,493,000
Adjustments to reconcile net income to net cash provided from operating activities:    
Depreciation and amortization 2,834,000 2,842,000
Provision for bad debts – accounts receivable 232,000 141,000
Share-based compensation expense 1,285,000 1,338,000
Deferred income tax (benefit) provision (1,361,000) 130,000
Loss (gain) on disposals of property, plant and equipment 13,000 (91,000)
Accretion of acquisition-related contingent liability 92,000 96,000
Changes in assets and liabilities, net of acquisition of business:    
Accounts receivable – trade (7,335,000) (7,091,000)
Accounts receivable – other 1,047,000 530,000
Inventories (4,002,000) (5,958,000)
Prepaid expenses and other current assets (316,000) 608,000
Other assets (1,043,000) 14,000
Accounts payable 5,791,000 2,918,000
Other current liabilities (890,000) 91,000
Long-term pension liability (333,000) 68,000
Other long-term liabilities (100,000) (65,000)
Net cash provided from operating activities  5,612,000 4,064,000
     
     
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to property, plant and equipment (4,118,000) (4,334,000)
Disposals of property, plant and equipment 128,000
Net cash used in investing activities (4,118,000) (4,206,000)
     
     
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from long-term debt 44,460,000 46,197,000
Repayment of long-term debt (45,365,000) (47,322,000)
Payment of cash dividends (3,128,000) (2,675,000)
Payment of contingent liability (1,200,000)
Proceeds received on exercise of stock options 1,501,000 1,461,000
Excess tax benefit from exercise of stock options and SARS 726,000 188,000
Net cash used in financing activities (3,006,000) (2,151,000)
     
Net decrease in cash and cash equivalents (1,512,000) (2,293,000)
     
Cash and cash equivalents balance, beginning of year 4,586,000 5,316,000
     
Cash and cash equivalents balance, end of period  $ 3,074,000  $ 3,023,000
CONTACT: Andrew D. Demott, Jr.
         COO, CFO & Treasurer
         (727) 803-7135
         
         OR
         
         Hala Elsherbini, Halliburton Investor Relations
         (972) 458-8000