• Q2 earnings up 4.8% to $932,000
  • Sales up 6.7% to $29.3m

US apparel manufacturer Superior Uniform saw first-quarter net earnings climb 4.8% after the retailer gained market share, while reducing SG&A costs.

Net earnings for the quarter ended 30 June reached US$932,000, while net sales increased 6.7% to $29.3m. SG&A costs fell 2.3% to $17m.

However, CEO Michael Benstock said gross margins for the company's uniform and related products business continued to be pressured in the second quarter and will be into the next quarter.

Show the press release

 

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 visitwww.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
 

 

Original source: http://www.marketwire.com/press-release/superior-uniform-group-reports-second-quarter-operating-results-nasdaq-sgc-1681792.htm