OREANDA-NEWS. Superior Uniform Group, Inc. (NASDAQ:SGC), manufacturer of uniforms, career apparel, accessories and promotional products, today announced that for the second quarter ended June 30, 2016, net sales increased 19.5 percent to $64.7 million compared with 2015 second quarter net sales of $54.1 million. Net income for second quarter 2016 was $3.1 million, or $0.21 per diluted share, compared with $3.6 million, or $0.25 per diluted share, reported for the quarter ended June 30, 2015. 

For the six months ended June 30, 2016, net sales increased 22.1 percent to $122.6 million compared with net sales of $100.5 million for the six months ended June 30, 2015. Net income for the six months ended June 30, 2016 was $5.3 million, or $0.36 per diluted share, compared with $5.7 million, or $0.39 per diluted share reported for the six months ended June 30, 2015. As a result of the BAMKO acquisition, net income was negatively impacted by $0.2 million in pre-tax acquisition related expenses in the second quarter of 2016 and $1.1 million in the first six months of 2016.

Michael Benstock, Chief Executive Officer, commented, “We are pleased to report a 19.5 percent increase in net sales in the second quarter. The increase in net sales for the second quarter came from net sales at BAMKO, which we acquired in March of this year, and from The Office Gurus, our remote staffing segment. Net sales in our uniforms segment leveled off in the second quarter following an exceptionally strong first quarter of 2016. Additionally, BAMKO has come out of the gate very strong, generating net sales of $9.8 million in the 2016 second quarter. This represents an increase of more than 88 percent versus the same period in 2015. We are very pleased with BAMKO and continue to work to achieve operational and sales synergies between the two organizations. The Office Gurus continues to grow at a very healthy rate with net sales to outside customers up 25.8 percent over the second quarter of 2015. At the end of the second quarter, we completed the building project in El Salvador and moved into a brand new, state-of-the-art, call center facility that nearly triples our capacity there. In addition to the acquisition of BAMKO and the new building in El Salvador, we continue to invest in our uniform business. Our new sewing factory in Haiti is progressing nicely and on schedule with our implementation plan. We expect it to achieve breakeven status by the end of 2016. 

“Our financial position remains strong, and we were able to pay down outstanding debt by $4.7 million in the second quarter of 2016. This financial strength positions us well to continue to invest in our businesses and to take advantage of opportunities as they arise.”

CONFERENCE CALL

Superior Uniform Group will hold a conference call on Thursday, July 21, 2016 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 Uniform Group call. 

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 July 28, 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 number 10088860 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 sells its wide range of 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®, which provides call center and BPO solutions to a variety of customers, and BAMKO®, 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 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 June 30,   
  (Unaudited)  
                         
                  2016   2015  
                         
  Net sales           $ 64,660,000   $ 54,116,000  
                         
  Costs and expenses:                
    Cost of goods sold         42,897,000   35,585,000  
    Selling and administrative expenses       16,956,000   13,008,000  
    Interest expense         192,000   129,000  
                  60,045,000   48,722,000  
                         
  Income before taxes on income         4,615,000   5,394,000  
  Income tax expense         1,540,000   1,770,000  
                         
  Net income           $ 3,075,000   $ 3,624,000  
                         
  Weighted average number of shares outstanding during the period        
               (Basic)     14,120,617     13,730,646  
              (Diluted)     14,957,469     14,577,342  
  Per Share Data:                  
  Basic                    
    Net income       $   0.22 $   0.26  
  Diluted                    
    Net income       $   0.21 $   0.25  
                         
  Other comprehensive income, net of tax:              
    Defined benefit pension plans:              
                         
      Recognition of net losses included in               
      net periodic pension costs         171,000     129,000  
                         
      Recognition of settlement loss included              
      in net periodic pension costs         33,000     201,000  
                         
      Gain on cash flow hedging activities         21,000     21,000  
                         
      Foreign currency translation adjustment         173,000     -   
  Other comprehensive income           398,000     351,000  
                         
  Comprehensive income       $   3,473,000 $   3,975,000  
                         
  Cash dividends per common share       $   0.0825 $   0.075  
                         
   SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES  
  CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  
                         
  Six Months Ended June 30,   
  (Continued)  
  (Unaudited)  
                         
                  2016     2015    
                         
  Net sales           $ 122,628,000   $   100,463,000    
                         
  Costs and expenses:                
    Cost of goods sold         80,844,000     66,136,000    
    Selling and administrative expenses       33,419,000     25,445,000    
    Interest expense         340,000     265,000    
                  114,603,000     91,846,000    
                         
  Income before taxes on income         8,025,000     8,617,000    
  Income tax expense         2,690,000     2,950,000    
                         
  Net income           $ 5,335,000   $   5,667,000    
                         
  Weighted average number of shares outstanding during the period        
               (Basic)     14,023,840       13,657,784    
              (Diluted)     14,813,064       14,562,713    
  Per Share Data:                  
  Basic                    
    Net income       $   0.38 $     0.41    
  Diluted                    
    Net income       $   0.36 $     0.39    
                         
  Other comprehensive income, net of tax:              
    Defined benefit pension plans:              
                         
      Recognition of net losses included in               
      net periodic pension costs         342,000       257,000    
                         
      Recognition of settlement loss included              
      in net periodic pension costs         198,000       201,000    
                         
      Gain (loss) on cash flow hedging activities         6,000       (1,000 )  
                         
      Foreign currency translation adjustment         294,000      -     
  Other comprehensive income           840,000       457,000    
                         
  Comprehensive income       $   6,175,000 $     6,124,000    
                         
  Cash dividends per common share       $ 0.165 $     0.15    
                         
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES  
 CONSOLIDATED BALANCE SHEETS  
                     
ASSETS  
                     
              June 30,      
                2016     December 31,  
              (Unaudited)     2015    
CURRENT ASSETS:             
    Cash and cash equivalents       $   4,735,000     $   1,036,000    
    Accounts receivable, less allowance for doubtful accounts          
    of  $1,100,000 and $848,000, respectively       37,091,000       29,914,000    
    Accounts receivable - other         2,137,000         3,262,000    
    Prepaid expenses and other current assets     11,150,000         6,214,000    
    Inventories*             63,161,000         63,573,000    
  TOTAL CURRENT ASSETS         118,274,000       103,999,000    
                     
PROPERTY, PLANT AND EQUIPMENT, NET     27,090,000         22,524,000    
OTHER INTANGIBLE ASSETS, NET         24,428,000         14,222,000    
GOODWILL               11,481,000         4,135,000    
DEFERRED INCOME TAXES           4,760,000         4,980,000    
OTHER ASSETS           2,392,000         1,871,000    
              $   188,425,000     $   151,731,000    
                     
LIABILITIES AND SHAREHOLDERS' EQUITY  
                     
CURRENT LIABILITIES:              
    Accounts payable         $   15,397,000   $   11,775,000    
    Other current liabilities         7,883,000         8,307,000    
    Current portion of long-term debt       6,429,000         2,750,000    
    Current portion of acquisition-related contigent liabilities     1,969,000         1,787,000    
  TOTAL CURRENT LIABILITIES       31,678,000         24,619,000    
                     
LONG-TERM DEBT, net of issuance costs       36,898,000       21,131,000    
LONG-TERM PENSION LIABILITY       8,347,000       8,925,000    
LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITIES     7,361,000       3,866,000    
OTHER LONG-TERM LIABILITIES       540,000       500,000    
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 - 14,407,920  and  13,917,465, respectively.     14,000       14,000    
  Additional paid-in capital         40,982,000       33,806,000    
  Retained earnings            68,287,000       65,392,000    
  Accumulated other comprehensive income (loss), net of tax:          
    Pensions             (5,908,000 )       (6,448,000 )  
    Cash flow hedges           (68,000 )       (74,000 )  
    Foreign currency translation adjustment       294,000        -     
TOTAL SHAREHOLDERS' EQUITY       103,601,000       92,690,000    
              $   188,425,000     $   151,731,000    
                     
*  Inventories consist of the following:            
                     
              June 30,      
                2016     December 31,  
              (Unaudited)     2015    
Finished goods         $   49,649,000     $   48,206,000    
Work in process           955,000       860,000    
Raw materials           12,557,000       14,507,000    
              $   63,161,000     $   63,573,000