SGC Superior Group of Companies Inc

Superior Group of Companies, Inc. (NASDAQ: SGC), today announced its first quarter operating results for 2019.

The Company announced that for the first quarter ended March 31, 2019, net sales increased 18.4 percent to $86.6 million, compared to first quarter 2018 net sales of $73.1 million. Pretax Income was $3.0 million compared to $3.3 million in 2018. Net income was $2.4 million or $0.16 per diluted share for both periods.  

Michael Benstock, Chief Executive Officer, commented, “Our uniform segment sales were up 22% from last year’s first quarter, as a result of our acquisition of CID Resources. We’ve made substantial progress on the integration of our uniform businesses, both operationally and through product sourcing and sales channels. Our ERP and Web system integrations within our business are progressing on schedule and, once completed, will allow us to manage our entire uniform business more efficiently on a single platform. During this quarter we started the construction of our second manufacturing facility in Haiti which is scheduled for completion this summer. We also initiated our multi-year modernization initiative at our keystone distribution center in Eudora, Arkansas as well as our center supporting CID in Dallas. Our investments in these initiatives are designed to generate cost efficiencies, improve working capital usage, and allow us to better serve the needs of our customers.

We continue to see strong growth at BAMKO and The Office Gurus. During the first quarter, BAMKO, our Promotional Products segment, posted sales growth of 9 percent to $20.4 million compared to the first quarter of last year. The Office Gurus, our Remote Staffing segment, continues to perform to our expectations with quarterly net sales growth to outside customers of 20 percent over the comparable period.”

CONFERENCE CALL

Superior Group of Companies will hold a conference call on Thursday, April 25, 2019 at 2:00 p.m. Eastern Time to discuss the Company’s results. Interested individuals may join the teleconference 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 Group of Companies call. The live webcast and archived replay can also be accessed in the investor information section of the Company’s website at www.superiorgroupofcompanies.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 2, 2019. 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 10130654 for all replay access.

About Superior Group of Companies, Inc. (SGC):

Superior Group of Companies™, formerly Superior Group of Companies, established in 1920, is a combination of companies that help customers unlock the power of their brands by creating extraordinary brand experiences for employees and customers. It provides customized support for each of its divisions through its shared services model.

Fashion Seal Healthcare®, HPI™ and CID Resources are signature uniform brands of Superior Group of Companies. Each is one of America’s leading providers of uniforms and image apparel in the markets it serves. They specialize in innovative uniform program design, global manufacturing, and state-of-the-art distribution. Every day, more than 6 million Americans go to work wearing a uniform from Superior Group of Companies.

BAMKO®, Tangerine Promotions® and Public Identity® are signature promotional products and branded merchandise brands of Superior Group of Companies. They provide unique custom branding, design, sourcing, and marketing solutions to some of the world’s most successful brands.

The Office Gurus® is a global provider of custom call and contact center support. As a true strategic partner, The Office Gurus implements customized solutions for its customers in order to accelerate their growth and improve their customers’ service experiences.

SGC’s commitment to service, technology, quality and value-added benefits, as well as its financial strength and resources, provides unparalleled support for its customers’ diverse needs while embracing a “Customer 1st, Every Time!” philosophy and culture in all of its business segments.

Visit www.superiorgroupofcompanies.com for more information.

Contact:          Michael Attinella                                    Chief Financial Officer & Treasurer   (727) 803-7170                                  

-OR-

Hala ElsherbiniHalliburton Investor Relations(972) 458-8000

Comparative figures are as follows:

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
THREE MONTHS ENDED MARCH 31,
(Unaudited)
(In thousands, except shares and per share data)
				2019		2018
Net sales			$	86,552	$	73,087
Costs and expenses:
	Cost of goods sold			56,284		48,212
	Selling and administrative expenses			25,863		21,182
	Other periodic pension costs			259		96
	Interest expense			1,170		277
				83,576		69,767
Income before taxes on income				2,976		3,320
Income tax expense				600		870
Net income			$	2,376	$	2,450
Weighted average number of shares outstanding during the period
		(Basic)		14,927,341		14,821,659
		(Diluted)		15,262,654		15,457,629
Per Share Data:
Basic
	Net income		$	0.16	$	0.17
Diluted
	Net income		$	0.16	$	0.16
Cash dividends per common share			$	0.1000	$	0.0950

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value data)
ASSETS
				March 31,
				2019		December 31,
				(Unaudited)		2018
CURRENT ASSETS:
	Cash and cash equivalents		$	6,824	$	5,362
	Accounts receivable, less allowance for doubtful accounts
	of $2,004 and $2,042, respectively			63,610		64,017
	Accounts receivable - other			1,431		1,744
	Inventories			65,753		67,301
	Contract assets			47,359		49,236
	Prepaid expenses and other current assets			11,488		9,552
	TOTAL CURRENT ASSETS			196,465		197,212
PROPERTY, PLANT AND EQUIPMENT, NET				29,388		28,769
OPERATING LEASE RIGHT-OF-USE ASSETS				4,581		-
OTHER INTANGIBLE ASSETS, NET				65,389		66,312
GOODWILL				33,955		33,961
OTHER ASSETS				9,796		8,832
			$	339,574	$	335,086
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable		$	24,802	$	24,685
	Other current liabilities			15,703		14,767
	Current portion of long-term debt			15,286		6,000
	Current portion of acquisition-related contingent liabilities			941		941
	TOTAL CURRENT LIABILITIES			56,732		46,393
LONG-TERM DEBT				101,931		111,522
LONG-TERM PENSION LIABILITY				8,643		8,705
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITIES				5,622		5,422
OPERATING LEASE LIABILITIES				2,866		-
DEFERRED TAX LIABILITY				7,365		8,475
OTHER LONG-TERM LIABILITIES				4,690		3,648
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 - 15,229,775 and 15,202,387, respectively.		15		15
	Additional paid-in capital			56,536		55,859
	Retained earnings			102,945		103,032
	Accumulated other comprehensive income (loss), net of tax:
		Pensions		(7,426)		(7,673)
		Cash flow hedges		108		113
		Foreign currency translation adjustment		(453)		(425)
TOTAL SHAREHOLDERS' EQUITY				151,725		150,921
			$	339,574	$	335,086

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31,
(Unaudited)
(In thousands)
						2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income					$	2,376		$	2,450
Adjustments to reconcile net income
to net cash (used in) provided by operating activities:
	Depreciation and amortization					2,060			1,626
	Provision for bad debts - accounts receivable					138			157
	Share-based compensation expense					481			1,052
	Deferred income tax benefit (provision)					(1,182	)		162
	Gain on sale of property, plant and equipment					(3	)		-
	Change in fair value of acquisition-related contingent liabilities					201			209
	Changes in assets and liabilities:
		Accounts receivable - trade				309			2,147
		Accounts receivable - other				312			(259	)
		Contract assets				1,876			(3,780	)
		Inventories				1,522			3,742
		Prepaid expenses and other current assets				(2,197	)		27
		Other assets				(1,503	)		(1,564	)
		Accounts payable and other current liabilities				(12	)		(7,132	)
		Long-term pension liability				262			97
		Other long-term liabilities				1,099			450
	Net cash provided by (used in) operating activities					5,739			(616	)
CASH FLOWS FROM INVESTING ACTIVITIES
	Additions to property, plant and equipment					(1,723	)		(1,055	)
	Proceeds from disposals of property, plant and equipment					3			-
	Net cash used in  investing activities					(1,720	)		(1,055	)
CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from long-term debt					54,856			31,657
	Repayment of long-term debt					(55,161	)		(24,642	)
	Payment of cash dividends					(1,515	)		(1,402	)
	Payment of acquisition-related contingent liability					-			(2,000	)
	Proceeds received on exercise of stock options					210			257
	Tax benefit from vesting of acquisition-related restricted stock					30			105
	Tax withholding on exercise of stock rights					-			(17	)
	Common stock reacquired and retired					(992	)		-
Net cash (used in) provided by  financing activities						(2,572	)		3,958
Effect of currency exchange rates on cash						15			25
Net increase in cash and cash equivalents						1,462			2,312
Cash and cash equivalents balance, beginning of year						5,362			8,130
Cash and cash equivalents balance, end of period					$	6,824		$	10,442