Superior Group of Companies, Inc. Reports Operating Results for the First Quarter Ended March 31, 2019
25 April 2019 - 9:00PM
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 |
|
|
|
|
|
|
|
|
|
|
Superior Group of Compan... (NASDAQ:SGC)
Historical Stock Chart
From Apr 2024 to May 2024
Superior Group of Compan... (NASDAQ:SGC)
Historical Stock Chart
From May 2023 to May 2024