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Thu, July 19, 2012
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Superior Uniform Group Reports Second Quarter Operating Results


Published on 2012-07-19 05:45:49 - Market Wire
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July 19, 2012 08:21 ET

Superior Uniform Group Reports Second Quarter Operating Results

SEMINOLE, FL--(Marketwire - Jul 19, 2012) -  Superior Uniform Group, Inc. (NASDAQ: [ SGC ])

  • 6.7% INCREASE IN EARNINGS PER SHARE (DILUTED)
  • 6.7% INCREASE IN NET SALES

Superior Uniform Group, Inc. (NASDAQ: [ SGC ]), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2012, sales were $29,335,000, compared with 2011 second quarter sales of $27,505,000. Net earnings were $977,000 or $0.16 per share (diluted), compared with earnings of $932,000 or $.15 per share (diluted) in the 2011 second quarter.

For the six months ended June 30, 2012, sales were $57,843,000, compared with sales of $54,404,000 in the six months ended June 30, 2011. Net earnings for the six months ended June 30, 2012 were $1,304,000 or $0.21 per share (diluted), versus earnings of $1,531,000 or $.25 per share (diluted) in the first six months of 2011.

Michael Benstock, chief executive officer, commented: "We are pleased to report an increase of 6.7% in our net sales. Gross margins for our Uniform and Related Products business continued to be pressured in the second quarter of 2012, consistent with our expectations. As we indicated in our first quarter 2012 earnings release, we ensured that we were in a position to take care of our customers by investing heavily in our raw material inventories during the cotton crisis of 2011. As a result, we were able to provide our products to our customers throughout the period of the shortages and were able to improve our market share in the process. However, as we work through the higher priced inventory we had built up during 2011, our gross margins were negatively impacted and we expect that they will continue to be pressured into the next quarter. We continued to see the benefits in this approach as we increased our market position in the first half of 2012. 

"Sales growth to outside customers in our Remote Staffing Solutions business was at a much slower rate in the current quarter as we have worked to integrate the accounts we have added over the last few periods. However, we are well positioned in this market place and have new accounts set to start in the coming quarter. We expect to return to solid growth in this market segment as we move forward.

"Our financial position remains very strong and continues to provide us with the ability to support our ongoing growth initiatives."

ABOUT SUPERIOR UNIFORM GROUP, INC.

[ Superior Uniform Group, Inc ]. (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 professional appearance and communicate their brands -- particularly those in the healthcare, hospitality, food service, retail and private security 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 is the parent company to [ The Office Gurus ]® and [ everyBODY media ]™. 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 EARNINGS
THREE MONTHS ENDED JUNE 30,
(Unaudited)
 
 2012 2011
      
Net sales$29,335,000 $27,505,000
      
Costs and expenses:     
 Cost of goods sold 19,673,000  17,577,000
 Selling and administrative expenses 8,088,000  8,490,000
 Interest expense 7,000  6,000
  27,768,000  26,073,000
      
Income before taxes on income 1,567,000  1,432,000
Income tax expense 590,000  500,000
Net earnings$977,000 $932,000
      
Per Share Data:     
Basic:     
 Net income$0.16 $0.16
      
Diluted:     
 Net income$0.16 $0.15
      
Cash dividends per common share$0.135 $0.135
      
      
      
 
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
SIX MONTHS ENDED JUNE 30,
(Unaudited) 
 
 2012 2011
      
Net sales$57,843,000 $54,404,000
      
Costs and expenses:     
 Cost of goods sold 38,719,000  34,625,000
 Selling and administrative expenses 17,002,000  17,396,000
 Interest expense 18,000  12,000
  55,739,000  52,033,000
      
Income before taxes on income 2,104,000  2,371,000
Income tax expense 800,000  840,000
Net earnings$1,304,000 $1,531,000
      
Per Share Data:     
Basic:     
 Net income$0.22 $0.26
      
Diluted:     
 Net income$0.21 $0.25
      
Cash dividends per common share$0.27 $0.27
      
      
      
 
SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 
(Unaudited)
 
ASSETS   
    
 2012 2011
      
CURRENT ASSETS     
 Cash and cash equivalents$2,939,000 $2,306,000
 Accounts receivable - trade 16,944,000  17,630,000
 Accounts receivable - other 2,917,000  2,921,000
 Prepaid expenses and other current assets 2,066,000  4,783,000
 Inventories 40,775,000  34,199,000
      
  TOTAL CURRENT ASSETS 65,641,000  61,839,000
      
PROPERTY, PLANT AND EQUIPMENT, NET 8,389,000  9,200,000
OTHER INTANGIBLE ASSETS 2,268,000  3,231,000
DEFERRED INCOME TAXES 3,560,000  2,090,000
OTHER ASSETS 405,000  135,000
      
 $80,263,000 $76,495,000
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
CURRENT LIABILITIES     
 Accounts payable$6,383,000 $5,782,000
 Other current liabilities 2,730,000  3,198,000
  TOTAL CURRENT LIABILITIES 9,113,000  8,980,000
      
LONG-TERM DEBT 520,000  -
LONG-TERM PENSION LIABILITY 7,985,000  3,687,000
OTHER LONG-TERM LIABILITIES 770,000  800,000
DEFERRED INCOME TAXES 30,000  -
SHAREHOLDERS' EQUITY 61,845,000  63,028,000
      
 $80,263,000 $76,495,000