Superior Group of Companies, Inc. Reports Operating Results for the Third Quarter Ended September 30, 2021

Compared to the second quarter 2020:

  • Net Sales increased by 29.4% excluding PPE sales
  • The Office Gurus net sales increased 56.8%
  • BAMKO net sales increased 78.8% excluding PPE sales

SEMINOLE, Fla., Nov. 03, 2021 — Superior Group of Companies, Inc. (NASDAQ: SGC), today announced its second quarter operating results for 2021.

The Company announced that for the third quarter ended September 30, 2021, net sales decreased 3.5% to $123.3 million, compared to third quarter 2020 net sales of $127.7 million. Pretax Income was $10.0 million compared to $12.1 million in the third quarter of 2020. Net income was $8.2 million or $0.51 per diluted share compared to $9.9 million, or $0.63 per diluted share for the third quarter of 2020.

Michael Benstock, Chief Executive Officer, commented, “We are encouraged by the momentum of our core businesses and believe we are well positioned to take market share across our portfolio of core products and services. Excluding the impact of PPE sales, we saw remarkable growth in our promotional products segment and our remote staffing solutions segment. Uniforms and related products reported growth in net sales of 3.9 percent, excluding the impact of PPE sales and in spite of continuing headwinds from global supply chain and logistical issues. We continue to see increasing opportunities for growth as business activity normalizes. We are well positioned with strong tailwinds in all of our core businesses and expect to continue to report strong sales and earnings for the balance of 2021.”


Superior Group of Companies will hold a conference call on Wednesday, November 3, 2021 at 2:15 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

A telephone replay of the teleconference will be available one hour after the end of the call through November 17, 2021. 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 10160553 for all replay access.

Disclosure Regarding Forward Looking Statements

Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by use of the words “may,” “will,” “should,” “could,” “expect,” anticipate,” “estimate,” “believe,” “intend,” “project,” “potential,” or “plan” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements in this press release may include, without limitation: (1) the projected impact of the COVID-19 pandemic on our, our customers’, and our suppliers’ businesses, (2) projections of revenue, income, and other items relating to our financial position and results of operations, (3) statements of our plans, objectives, strategies, goals and intentions, (4) statements regarding the capabilities, capacities, market position and expected development of our business operations, and (5) statements of expected industry and general economic trends.

Such forward-looking statements are subject to certain risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the following: the impact of competition; the effect of uncertainties related to the COVID-19 pandemic, including existing and possible future variants, on the United States of America (“U.S.” or “United States”) and global markets, our business, operations, customers, suppliers and employees, including without limitation the length and scope of restrictions imposed by various governments and organizations and the success of efforts to deliver effective vaccines on a timely basis to a number of people sufficient to prevent or substantially lower the severity of incidents of infection or variants, among other factors; our ability to navigate successfully the challenges posed by current global supply disruptions; general economic conditions, including employment levels, in the areas of the United States in which the Company’s customers are located; changes in the healthcare, retail, hotels, food service, transportation and other industries where uniforms and service apparel are worn; our ability to identify suitable acquisition targets, successfully integrate any acquired businesses, successfully manage our expanding operations, or discover liabilities associated with such businesses during the diligence process; the price and availability of cotton and other manufacturing materials; attracting and retaining senior management and key personnel and other factors described in the Company’s filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.

About Superior Group of Companies, Inc. (SGC):

Superior Group of Companies formerly Superior Uniform Group, established in 1920, is a combination of companies that help our customers unlock the power of their brands by creating extraordinary brand engagement experiences for their employees and customers. We provide customized support for each of our divisions through our shared services model.

Fashion Seal Healthcare®, HPI® and WonderWink® are our core uniform brands. Each is one of America’s leading providers of uniforms and image apparel in the markets we serve. We specialize in innovative uniform program design, global manufacturing, and state-of-the-art distribution. Every workday, more than 7 million Americans go to work wearing a uniform from Superior Group of Companies.

BAMKO®, Tangerine Promotions®, Public Identity® and Gifts By Design are our signature promotional product companies. We 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 our customers in order to accelerate their growth and improve our customers’ service experiences.

SGC’s commitment to service, technology, quality and value-added benefits, as well as our financial strength and resources, provides unparalleled support for our customers’ diverse needs while embracing a “Customer 1st, Every Time!” philosophy and culture in all of our business segments.

Visit for more information.

Contact: Hala Elsherbini
Andrew D. Demott, Jr. Three Part Advisors
COO & CFO -OR- Senior Managing Director
727-803-7135 214-442-0016

Comparative figures are as follows:


(In thousands, except share and per share data)

Three Months Ended September 30,
2021 2020
Net sales $ 123,326 $ 127,737
Costs and expenses:
Cost of goods sold 77,512 80,285
Selling and administrative expenses 35,059 34,917
Other periodic pension costs 459 212
Interest expense 320 239
113,350 115,653
Income before taxes on income 9,976 12,084
Income tax expense 1,780 2,140
Net income $ 8,196 $ 9,944
Net income per share:
Basic $ 0.53 $ 0.66
Diluted $ 0.51 $ 0.63
Weighted average shares outstanding during the period:
Basic 15,528,534 15,084,300
Diluted 16,099,850 15,711,122
Cash dividends per common share $ 0.12 $ 0.20

(In thousands, except share and per share data)

Nine Months Ended September 30,
2021 2020
Net sales $ 394,960 $ 381,341
Costs and expenses:
Cost of goods sold 252,945 244,500
Selling and administrative expenses 104,076 98,704
Other periodic pension costs 1,328 830
Pension plan termination charge 6,945
Interest expense 925 1,732
366,219 345,766
Income before taxes on income 28,741 35,575
Income tax expense 5,490 7,090
Net income $ 23,251 $ 28,485
Net income per share:
Basic $ 1.51 $ 1.89
Diluted $ 1.45 $ 1.85
Weighted average shares outstanding during the period
Basic 15,394,427 15,041,738
Diluted 16,059,686 15,361,035
Cash dividends per common share $ 0.34 $ 0.30

(In thousands, except share and par value data)

September 30, December 31,
2021 2020
Current assets:
Cash and cash equivalents $ 6,408 $ 5,172
Accounts receivable, less allowance for doubtful accounts of $5,852 and $7,667, respectively 92,500 101,902
Accounts receivable – other 2,338 1,356
Inventories 103,371 89,766
Contract assets 37,575 39,231
Prepaid expenses and other current assets 15,633 11,030
Total current assets 257,825 248,457
Property, plant and equipment, net 46,928 36,644
Operating lease right-of-use assets 6,299 3,826
Intangible assets, net 59,414 58,746
Goodwill 38,557 36,116
Other assets 13,154 10,135
Total assets $ 422,177 $ 393,924
Current liabilities:
Accounts payable $ 38,096 $ 39,327
Other current liabilities 36,069 44,670
Current portion of long-term debt 15,286 15,286
Current portion of acquisition-related contingent liabilities 3,929 5,589
Total current liabilities 93,380 104,872
Long-term debt 80,882 72,372
Long-term pension liability 14,548 14,574
Long-term acquisition-related contingent liabilities 1,892
Long-term operating lease liabilities 2,189 1,599
Deferred tax liability 1,448 450
Other long-term liabilities 8,795 6,535
Commitments and contingencies (Note 6)
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 15,960,253 and 15,391,660 shares, respectively. 16 15
Additional paid-in capital 66,996 61,844
Retained earnings 159,711 141,972
Accumulated other comprehensive income (loss), net of tax:
Pensions (4,285 ) (10,898 )
Cash flow hedges 53 69
Foreign currency translation adjustment (1,556 ) (1,372 )
Total shareholders’ equity 220,935 191,630
Total liabilities and shareholders’ equity $ 422,177 $ 393,924

(In thousands)

Nine Months Ended September 30,
2021 2020
Net income $ 23,251 $ 28,485
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 6,719 5,972
Provision for bad debts – accounts receivable 1,715 6,099
Share-based compensation expense 2,757 1,790
Deferred income tax benefit (1,127 ) (3,654 )
Change in fair value of acquisition-related contingent liabilities 2,310 2,759
Pension plan termination charge 6,945
Changes in assets and liabilities, net of acquisition of business:
Accounts receivable 7,544 (12,225 )
Accounts receivable – other (732 ) (1,121 )
Contract assets 1,656 3,049
Inventories (13,667 ) (7,306 )
Prepaid expenses and other current assets (4,445 ) (3,592 )
Other assets (1,462 ) 1
Accounts payable and other current liabilities (12,287 ) 29,167
Payment of acquisition-related contingent liabilities (4,220 )
Long-term pension liability 860 864
Other long-term liabilities 2,344 779
Net cash provided by operating activities 18,161 51,067
Additions to property, plant and equipment (14,455 ) (5,711 )
Acquisition of business (6,026 )
Net cash used in investing activities (20,481 ) (5,711 )
Proceeds from borrowings of debt 173,436 137,559
Repayment of debt (165,023 ) (180,112 )
Payment of cash dividends (5,334 ) (4,574 )
Payment of acquisition-related contingent liability (1,641 ) (1,966 )
Proceeds received on exercise of stock options 2,452 1,407
Tax withholdings on exercise of performance based stock (405 ) (32 )
Tax (provision) benefit from vesting of acquisition-related restricted stock 171 (13 )
Common stock reacquired and retired (500 )
Net cash provided by (used in) financing activities 3,656 (48,231 )
Effect of currency exchange rates on cash (100 ) (512 )
Net increase (decrease) in cash and cash equivalents 1,236 (3,387 )
Cash and cash equivalents balance, beginning of period 5,172 9,038
Cash and cash equivalents balance, end of period $ 6,408 $ 5,651

(In thousands, except share and par value data)

Three Months Ended
September 30,
Nine Months Ended
September 30,
2021 2020 2021 2020
Net income $ 8,196 $ 9,944 $ 23,251 $ 28,485
Adjustment for items:
Pension plan termination charge 6,945
Tax impact of adjustment (610 )
Adjusted net income(1) $ 8,196 $ 9,944 $ 29,586 $ 28,485
Diluted net income per share $ 0.51 $ 0.63 $ 1.45 $ 1.85
Adjustment for items, after-tax, per diluted share 0.39
Diluted adjusted net income per share(1) $ 0.51 $ 0.63 $ 1.84 $ 1.85
Weighted average shares outstanding during the period
Diluted 16,099,850 15,711,122 16,059,686 15,361,035

(1) Adjusted net income and diluted adjusted net income per share, which are non-GAAP measures, are defined as net income and net income per share, excluding the impact of pension plan termination charges (net of tax). Management believes adjusted net income and diluted adjusted net income per share provides useful information to investors because it allows management, investors and others to evaluate and compare our operating results from period to period by removing the impact of pension plan termination charges not appropriately reflective of our core business.

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