SEMINOLE, Florida – May 2, 2018 - Superior Uniform Group, Inc. (NASDAQ: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the first quarter ended March 31, 2018, net sales increased 19.8 percent to $73.1 million compared with 2017 first quarter net sales of $61.0 million. Net income for the 2018 first quarter was $2.5 million, or $0.16 per diluted share, compared with $3.8 million, or $0.26 per diluted share, reported for the quarter ended March 31, 2017. Net income for the first quarter of 2017 included a pre-tax gain of $1.0 million related to the sale of the Company’s former call center building in San Salvador. This gain resulted in an increase in earnings per share (diluted) in the first quarter of 2017 of approximately $0.05.
Michael Benstock, Chief Executive Officer, commented, “Our results for the first quarter were mixed across our various segments. Uniform segment net sales were down slightly at $48.1 million versus $48.3 million. While organic growth in our uniform segment lagged in the first quarter, our results demonstrate our diversified approach and our ability to maintain discipline while navigating a competitive market environment. “Promotional Products net sales were up 109 percent with most of this increase coming from our two acquisitions completed in the latter part of 2017. We’re making solid progress on integration efforts, leveraging our shared services model as well as capitalizing on cross-selling opportunities across our business. The Promotional Products segment reported a pre-tax loss of approximately $0.6 million for ￼￼the quarter in comparison to pre-tax income of $0.4 million in the first quarter of 2017. This loss is attributed to the December acquisition of Tangerine and the nature of their business. Tangerine generally reports lower sales in the first and fourth quarter each year with a more significant portion of their annual sales volume coming in the second and third quarters. We are still in the early stages of integrating this recent acquisition, and we still expect the results from this acquisition to be accretive for the full year in 2018. “The Office Gurus, our Remote Staffing segment, had a tremendous quarter with net sales to outside customers increasing by $2.6 million or 68.8 percent as they continue to land new customers and to grow with existing customers.”
Superior Uniform Group will hold a conference call on Wednesday, May 2, 2018 at 10:00 a.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. The live webcast and archived replay can also be accessed in the investor information section of the Company’s website at www.superioruniformgroup.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 9, 2018. 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 10119178 for all replay access.
About Superior Uniform Group, Inc.
Superior Uniform Group® (NASDAQ: SGC), established in 1920, is a provider of a wide range of award-winning products and services. It provides customized support for each of its divisions through its shared services model.
Fashion Seal Healthcare®, Superior I.D™, and HPI Direct® are signature uniform brands of Superior Uniform Group®. Each is one of America’s foremost providers of fine uniforms and image apparel in its markets. They are leaders in innovative uniform program design, global manufacturing, and state-of-the-art distribution. These brands help their customers achieve a more professional appearance and better communicate their own brands. More than 5 million Americans are smartly outfitted with a Superior uniform each workday.
BAMKO® is one of the nation’s largest full-service promotional products companies. It provides 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.
Superior’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.
For more information, call (800) 727-8643 or visit www.SuperiorUniformGroup.com.
Andrew D. Demott, Jr., COO, CFO & Treasurer
Halliburton Investor Relations