Last10K.com

Superior Group Of Companies, Inc. (SGC) SEC Filing 8-K Material Event for the period ending Thursday, February 21, 2019

Superior Group Of Companies, Inc.

CIK: 95574 Ticker: SGC

Exhibit 99.1

 

A NASDAQ Listed Company: SGC

FOR IMMEDIATE RELEASE

 

 

SUPERIOR GROUP OF COMPANIES, INC. REPORTS OPERATING RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2018

 

 

Annual Net Sales increased 30 percent

 

 

Annual Net Income increased 13 percent

 

 

25th Consecutive Quarter with Sales Increase

 

 

SEMINOLE, Fla. - February 21, 2019 – Superior Group of Companies, Inc. (NASDAQ: SGC), today announced its fourth quarter and year-end operating results for 2018.

 

The Company announced that for the year ended December 31, 2018, net sales increased 29.8 percent to $346.4 million, compared to 2017 net sales of $266.8 million. Income before taxes on income was $21.4 million compared to $24.8 million in 2017. Net income for the fiscal year 2018 increased 13.0% to $17.0 million, or $1.10 per diluted share, compared to $15.0 million, or $0.99 per diluted share, reported in 2017. Net income for 2018 was reduced by approximately $2.0 million ($0.13 per diluted share) of direct expenses associated with the May 2nd acquisition of CID Resources.

 

Net sales for the fourth quarter ended December 31, 2018 increased 31.1 percent to $95.0 million, compared to 2017 fourth quarter net sales of $72.4 million. Income before taxes on income was $5.7 million compared to $6.8 million in the 2017 fourth quarter. Net income for the fourth quarter ended December 31, 2018 was $4.6 million, or $0.30 per diluted share, compared to $1.9 million, or $0.12 per diluted share, reported for the fourth quarter 2017. Fourth quarter 2017 net income was reduced by approximately $4.0 million, or $0.26 per diluted share, associated with the enactment of the Tax Cuts and Jobs Act.

 

Michael Benstock, Chief Executive Officer, commented, “While the fourth quarter performance of our uniform segment was below our expectations, we’ve made tremendous progress on the integration of our uniform businesses within our Superior Group of Companies. We are aggressively developing avenues to leverage our expanded product assortment and service lines within the segment to meet and exceed our existing customers’ expectations and to gain market share. We are also on schedule with the integration of our ERP systems that, once completed, will allow us to maximize cost efficiencies throughout our operations. I’m quite satisfied with our progress in these areas and am confident in the overall trajectory of our uniform business as we enter 2019.

 

 

 

 

 

I’m particularly pleased with the performance of BAMKO and The Office Gurus. During the fourth quarter, BAMKO, our Promotional Products segment, posted strong organic net sales growth of 32 percent, and total net sales within the segment grew 68 percent to $24 million. The Office Gurus, our Remote Staffing segment, continues to outperform our expectations with quarterly net sales growth to outside customers of 22 percent.”

 

On January 22, 2019, the Company restructured its Amended and Restated Credit Agreement (Term Loan) entered into on May 2, 2018 with our incumbent lender.  The restructuring reduced the principal amount of the Term Loan to $65 million, by using $20 million of proceeds under our revolving credit facility; extended the maturity from May 2020 to January 2026; and lowered the variable interest rate to LIBOR plus 85 basis points. Principal and interest payments are due monthly through its maturity. 

 

Michael Attinella, Chief Financial Officer of Superior Group of Companies, commented, “We are quite pleased with the restructuring of the Term Loan. We were able to lower our interest rate and other costs of debt while maintaining repayment flexibility and extending its term. We are confident that the combined cash flow from operations and liquidity provided from the revolving credit facility is more than ample to fund our strategic plan as we move into 2019 and beyond.”

 

CONFERENCE CALL

Superior Group of Companies will hold a conference call on Thursday, February 21, 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 February 28, 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 10128748 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.

 

2

 

 

 

 

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 Elsherbini

Halliburton Investor Relations

(972) 458-8000

 

 

 

Comparative figures are as follows:

 

3

 

 

 

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

YEARS ENDED DECEMBER 31,

(In thousands, except shares and per share data)

 

   

2018

   

2017

   

2016

 

Net sales

  $ 346,350     $ 266,814     $ 252,596  
                         

Costs and expenses:

                       

Cost of goods sold

    224,653       170,462       165,614  

Selling and administrative expenses

    96,710       70,592       65,124  

Other periodic pension costs

    385       1,224       1,272  

Interest expense

    3,207       802       688  
      324,955       243,080       232,698  
                         

Gain on sale of property, plant and equipment

    -       1,048       -  
                         

Income before taxes on income

    21,395       24,782       19,898  

Income tax expense

    4,420       9,760       5,260  

Net income

  $ 16,975     $ 15,022     $ 14,638  
                         

Weighted average number of shares outstanding during the period

                       

(Basic)

    14,937,786       14,510,156       14,082,243  

(Diluted)

    15,472,133       15,118,768       14,897,489  

Per Share Data:

                       

Basic

                       

Net earnings

  $ 1.14     $ 1.04     $ 1.04  

Diluted

                       

Net earnings

  $ 1.10     $ 0.99     $ 0.98  
                         

Cash dividends per common share

  $ 0.390     $ 0.365     $ 0.340  

 

4

 

 

 

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

 

 CONSOLIDATED BALANCE SHEETS

YEARS ENDED DECEMBER 31,

(In thousands, except share and par value data)

 

   

2018

   

2017

 
ASSETS
                 

CURRENT ASSETS:

               

Cash and cash equivalents

  $ 5,362     $ 8,130  

Accounts receivable, less allowance for doubtful accounts of $2,042 and $1,382, respectively

    64,017       50,569  

Accounts receivable - other

    1,744       1,848  

Inventories

    67,301       64,979  

Contract asset

    49,236       -  

Prepaid expenses and other current assets

    9,552       11,011  

TOTAL CURRENT ASSETS

    197,212       136,537  
                 

PROPERTY, PLANT AND EQUIPMENT, NET

    28,769       26,844  

OTHER INTANGIBLE ASSETS, NET

    66,312       29,061  

GOODWILL

    33,961       16,032  

DEFERRED INCOME TAXES

    -       2,900  

OTHER ASSETS

    8,832       7,564  
    $ 335,086     $ 218,938  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                 

CURRENT LIABILITIES:

               

Accounts payable

  $ 24,685     $ 19,752  

Other current liabilities

    14,767       12,409  

Current portion of long-term debt

    6,000       6,000  

Current portion of acquisition-related contigent liabilities

    941       3,061  

TOTAL CURRENT LIABILITIES

    46,393       41,222  
                 

LONG-TERM DEBT

    111,522       32,933  

LONG-TERM PENSION LIABILITY

    8,705       8,319  

LONG-TERM ACQUISITION-RELATED CONTINGENT LIABILITIES

    5,422       7,283  

DEFERRED INCOME TAXES

    8,475       -  

OTHER LONG-TERM LIABILITIES

    3,648       4,213  

COMMITMENTS AND CONTINGENCIES (NOTE 11)

               

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 - 15,202,387 and 15,081,947, respectively.

    15       15  

Additional paid-in capital

    55,859       49,103  

Retained earnings

    103,032       83,129  

Accumulated other comprehensive income (loss), net of tax:

               

Pensions

    (7,673 )     (7,282 )

Cash flow hedges

    113       (90 )

Foreign currency translation adjustment

    (425 )     93  

TOTAL SHAREHOLDERS' EQUITY

    150,921       124,968  
    $ 335,086     $ 218,938  

 

5

 

 

 

 

 SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31,

(In thousands)

 

   

2018

   

2017

   

2016

 

CASH FLOWS FROM OPERATING ACTIVITIES

                       

Net income

  $ 16,975     $ 15,022     $ 14,638  

Adjustments to reconcile net income to net cash provided from operating activities:

                       

Depreciation and amortization

    7,906       5,653       4,935  

Provision for bad debts - accounts receivable

    867       1,002       512  

Share-based compensation expense

    2,264       1,664       1,638  

Deferred income tax (benefit) provision

    (665 )     5,114       (1,940 )

Gain on foreign currency transactions

    -       -       (264 )

Gain on disposals of property, plant and equipment

    -       (1,048 )     -  

Change in fair value of acquisition-related contingent liabilities

    (1,116 )     (89 )     (31 )

Changes in assets and liabilities, net of acquisition of businesses:

                 

Accounts receivable - trade

    (4,886 )     (4,731 )     (7,244 )

Accounts receivable - other

    105       1,237       177  

Contract asset

    (3,382 )     -       -  

Inventories

    3,501       4,250       (5,427 )

Prepaid expenses and other current assets

    1,550       (4,151 )     2,203  

Other assets

    (1,257 )     (4,504 )     (1,029 )

Accounts payable and other current liabilties

    (1,344 )     3,362       2,030  

Long-term pension liability

    (128 )     (2,577 )     829  

Other long-term liabilities

    (526 )     2,523       962  

Net cash provided from operating activities

    19,864       22,727       11,989  
                         

CASH FLOWS FROM INVESTING ACTIVITIES

                       

Additions to property, plant and equipment

    (4,869 )     (4,248 )     (7,385 )

Proceeds from disposals of property, plant and equipment

    -       2,858       -  

Acquisition of businesses, net of acquired cash

    (85,597 )     (7,988 )     (15,161 )

Net cash used in investing activities

    (90,466 )     (9,378 )     (22,546 )
                         

CASH FLOWS FROM FINANCING ACTIVITIES

                       

Proceeds from long-term debt

    206,025       74,387       125,067  

Repayment of long-term debt

    (127,439 )     (77,573 )     (106,827 )

Payment of cash dividends

    (5,836 )     (5,269 )     (4,707 )

Payment of acquisition-related contingent liabilities

    (2,861 )     (1,800 )     (1,800 )

Proceeds received on exercise of stock options

    727       1,872       1,504  

Tax benefit from vesting of acquisition related restricted stock

    445       650       990  

Tax withholdings on exercise of stock rights

    (17 )     (1,186 )     (405 )

Common stock reacquired and retired

    (2,906 )     -       (714 )

Net cash provided from (used in) financing activities

    68,138       (8,919 )     13,108  
                         

Effect of exchange rates on cash

    (304 )     51       62  
                         

Net (decrease) increase in cash and cash equivalents

    (2,768 )     4,481       2,613  
                         

Cash and cash equivalents balance, beginning of year

    8,130       3,649       1,036  
                         

Cash and cash equivalents balance, end of year

  $ 5,362     $ 8,130     $ 3,649  

 

6

 

 

 



 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) February 21, 2019

 

Superior Group of Companies, Inc.

(Exact name of registrant as specified in its charter)

 

Florida

001-05869

11-1385670

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

     
   

10055 Seminole Blvd., Seminole, Florida

(Address of principal executive offices)

33772

(Zip Code)

 

Registrant's telephone number including area code:

(727) 397-9611

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230 .425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 



 

 

 

 

Item 2.02. Results of Operations and Financial Condition

 

The following information is being furnished under Item 2.02 of Form 8-K: Press release by Superior Group of Companies, Inc. (the “Company”) announcing its results of operations for the quarter ended December 31, 2018. A copy of this press release is attached as Exhibit 99.1 to this Form 8-K.

 

 

 

 

Item 9.0l. Financial Statements and Exhibits

 

(c) Exhibits

 

 

Exhibit Number

Description

     
  99.1 Press Release, dated February 21, 2019

 

 

 

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.

 

 

SUPERIOR GROUP OF COMPANIES, INC.

 

       

 

 

 

 

 

 

 

 

 

By:

/s/ Michael Attinella

 

 

 

Michael Attinella

 

 

 

Chief Financial Officer and Treasurer

 

 

 

 

 

Date: February 21, 2019

View differences made from one to another to evaluate Superior Group Of Companies, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Superior Group Of Companies, Inc..

Continue

Assess how Superior Group Of Companies, Inc.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Superior Group Of Companies, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

Tools

Material Contracts, Statements, Certifications & more

Superior Group Of Companies, Inc. provided additional information to their SEC Filing as exhibits

Ticker: SGC
CIK: 95574
Form Type: 8-K Corporate News
Accession Number: 0001437749-19-003026
Submitted to the SEC: Thu Feb 21 2019 11:34:03 AM EST
Accepted by the SEC: Thu Feb 21 2019
Period: Thursday, February 21, 2019
Industry: Apparel And Other Finishd Prods Of Fabrics And Similar Matl
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/sgc/0001437749-19-003026.htm