EX-99.1 2 ex_160918.htm EXHIBIT 99.1 ex_160918.htm

EXHIBIT 99.1

 

 

 

FOR IMMEDIATE RELEASE

 

 

 

 

SUPERIOR GROUP OF COMPANIES, INC. REPORTS OPERATING RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2019

 

●     Promotional Products sales up 38 percent

●     Remote Staffing Solutions segment sales up 17 percent

●     Consolidated Net Sales decreased 7 percent

 

 

SEMINOLE, Fla. – October 23, 2019 – Superior Group of Companies, Inc. (NASDAQ: SGC), today announced its third quarter operating results for 2019.

 

The Company announced that for the third quarter ended September 30, 2019, net sales decreased 7.0 percent to $89.5 million, compared to third quarter 2018 net sales of $95.9 million. Pretax Income was $4.6 million compared to $7.3 million in 2018. Net income was $3.9 million or $0.26 per diluted share, compared to $0.39 per diluted share in 2018.

 

Michael Benstock, Chief Executive Officer commented “We are very pleased with the performance at BAMKO and The Office Gurus whose businesses continued to grow significantly in very competitive environments. Uniform segment sales were down between comparable periods, largely the result of initiatives taken by the company to reduce merchandise levels, resulting in fewer receipts, and lower revenues based upon current revenue recognition standards. Also during the quarter we experienced sales disruption at CID caused by a warehouse system implementation. On an overall basis, we made good progress and remain on schedule on our ERP integration initiatives intended to align infrastructure, support enterprise growth and value creation for all stakeholders” concluded Mr. Benstock.

 

CONFERENCE CALL

 

Superior Group of Companies will hold a conference call on Wednesday, October 23, 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 November 6, 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 10135411 for all replay access.

 

 
 

  

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

 

Superior Group of Companies™, formerly Superior Uniform Group, 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 Elsherbini           

Halliburton Investor Relations

(972) 458-8000

 

 

Comparative figures are as follows:

 

 
 

 

 SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 

Three Months Ended September 30,

(Unaudited)

(In thousands, except shares and per share data)

 

   

2019

    

2018

  
                 

Net sales

   $ 89,466     $ 95,870  
                 

Costs and expenses:

                

Cost of goods sold

     58,015       62,070  

Selling and administrative expenses

     25,260       25,482  

Other periodic pension costs

     476       96  

Interest expense

     1,085       940  
      84,836       88,588  

Income before taxes on income

     4,630       7,282  

Income tax expense

     709       1,160  

Net income

   $ 3,921     $ 6,122  
                 

Net income per share:

                

Basic

   $ 0.26     $ 0.41  

Diluted

   $ 0.26     $ 0.39  
                 

Weighted average number of shares outstanding during the period

                

Basic

     14,947,552       15,010,660  

Diluted

     15,266,850       15,499,894  
                 

Cash dividends per common share

   $ 0.10     $ 0.10  

 

 
 

 

 SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 

Nine Months Ended September 30,

(Unaudited)

(In thousands, except shares and per share data)

 

   

2019

    

2018

  
                 

Net sales

   $ 268,288     $ 251,349  
                 

Costs and expenses:

                

Cost of goods sold

     174,226       163,396  

Selling and administrative expenses

     78,008       69,991  

Other periodic pension costs

     1,282       289  

Interest expense

     3,514       1,974  
      257,030       235,650  

Income before taxes on income

     11,258       15,699  

Income tax expense

     2,180       3,310  

Net income

   $ 9,078     $ 12,389  
                 

Net income per share:

                

Basic

   $ 0.61     $ 0.83  

Diluted

   $ 0.59     $ 0.80  
                 

Weighted average number of shares outstanding during the period

                

Basic

     14,942,565       14,929,513  

Diluted

     15,272,287       15,505,642  
                 

Cash dividends per common share

   $ 0.30     $ 0.29  

 

 
 

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)

 

   

September 30,

    

December 31,

  
   

2019

    

2018

  
                 

ASSETS

  

Current assets:

                

Cash and cash equivalents

   $ 5,452     $ 5,362  

Accounts receivable, less allowance for doubtful accounts of $2,259 and $2,042, respectively

     75,597       64,017  

Accounts receivable - other

     1,262       1,744  

Inventories

     66,076       67,301  

Contract assets

     38,030       49,236  

Prepaid expenses and other current assets

     16,481       9,552  

Total current assets

     202,898       197,212  
                 

Property, plant and equipment, net

     31,725       28,769  

Operating lease right-of-use assets

     4,576       -  

Intangible assets, net

     63,491       66,312  

Goodwill

     36,252       33,961  

Other assets

     10,443       8,832  

Total assets

   $ 349,385     $ 335,086  
                 

LIABILITIES AND SHAREHOLDERS’ EQUITY

  
                 

Current liabilities:

                

Accounts payable

   $ 30,768     $ 24,685  

Other current liabilities

     16,110       14,767  

Current portion of long-term debt

     15,286       6,000  

Current portion of acquisition-related contingent liabilities

     1,374       941  

Total current liabilities

     63,538       46,393  
                 

Long-term debt

     103,812       111,522  

Long-term pension liability

     8,422       8,705  

Long-term acquisition-related contingent liabilities

     3,753       5,422  

Long-term operating lease liabilities

     2,590       -  

Deferred tax liability

     6,620       8,475  

Other long-term liabilities

     4,230       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 15,240,317 and 15,202,387 shares, respectively.

     15       15  

Additional paid-in capital

     57,077       55,859  

Retained earnings

     106,426       103,032  

Accumulated other comprehensive income (loss), net of tax:

                

Pensions

     (6,475 )     (7,673 )

Cash flow hedges

     97       113  

Foreign currency translation adjustment

     (720 )     (425 )

Total shareholders’ equity

     156,420       150,921  

Total liabilities and shareholders’ equity

   $ 349,385     $ 335,086  

 

 

 
 

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

(Unaudited)

(In thousands)

 

   

2019

    

2018

  
                 

CASH FLOWS FROM OPERATING ACTIVITIES

                

Net income

   $ 9,078     $ 12,389  

Adjustments to reconcile net income to net cash provided by operating activities:

                

Depreciation and amortization

     6,339       5,745  

Provision for bad debts - accounts receivable

     719       409  

Share-based compensation expense

     997       1,867  

Deferred income tax benefit

     (2,136 )     (278 )

Gain on sale of property, plant and equipment

     (5 )     -  

Change in fair value of acquisition-related contingent liabilities

     (272 )     (1,212 )

Changes in assets and liabilities, net of acquisition of business:

                

Accounts receivable - trade

     (12,251 )     (5,542 )

Accounts receivable - other

     481       (401 )

Contract assets

     11,206       (3,779 )

Inventories

     (595 )     5,742  

Prepaid expenses and other current assets

     (7,051 )     (226 )

Other assets

     (2,233 )     (2,343 )

Accounts payable and other current liabilities

     5,523       (1,077 )

Long-term pension liability

     1,292       292  

Other long-term liabilities

     750       (283 )

Net cash provided by operating activities

     11,842       11,303  
                 

CASH FLOWS FROM INVESTING ACTIVITIES

                

Additions to property, plant and equipment

     (6,424 )     (3,881 )

Proceeds from disposals of property, plant and equipment

     5       -  

Acquisition of businesses, net of acquired cash

     -       (85,597 )

Net cash used in investing activities

     (6,419 )     (89,478 )
                 

CASH FLOWS FROM FINANCING ACTIVITIES

                

Proceeds from borrowings of debt

     125,121       170,713  

Repayment of debt

     (123,600 )     (91,423 )

Payment of cash dividends

     (4,533 )     (4,335 )

Payment of acquisition-related contingent liability

     (961 )     (3,032 )

Proceeds received on exercise of stock options

     283       432  

Tax benefit from vesting of acquisition-related restricted stock

     30       445  

Tax withholding on exercise of stock rights

     -       (17 )

Common stock reacquired and retired

     (1,243 )     (268 )

Net cash provided by (used in) financing activities

     (4,903 )     72,515  
                 

Effect of currency exchange rates on cash

     (430 )     (174 )

Net increase (decrease) in cash and cash equivalents

     90       (5,834 )

Cash and cash equivalents balance, beginning of year

     5,362       8,130  

Cash and cash equivalents balance, end of period

   $ 5,452     $ 2,296