Superior Group of Companies, Inc. Reports Record Operating Results for the Second Quarter 2020 and Announces Dividend

  • Net sales increased 73 percent including $58.5 million in sales of PPE
  • Earnings per share (diluted) increased 456 percent to $1.00
  • Reduced debt an additional $16.1 million
  • Reinstates regular $0.10 per share dividend and declares $0.10 per share special dividend
  • Celebrates 100-year anniversary since its founding in 1920

SEMINOLE, Fla., July 29, 2020 (GLOBE NEWSWIRE) — Superior Group of Companies, Inc. (NASDAQ: SGC), today announced its second quarter operating results for 2020.

The Company reported that for the second quarter ended June 30, 2020, net sales increased 73 percent to $159.4 million, compared to second quarter 2019 net sales of $92.3 million. Pretax Income was $18.9 million compared to $3.7 million in 2019. Net income was $15.2 million, or $1.00 per diluted share, compared to $2.8 million, or $0.18 per diluted share, for the second quarter of 2019.  

The Board of Directors today declared a regular quarterly dividend of $0.10 per share, payable August 25, 2020, to shareholders of record as of August 11, 2020 and a special dividend of $0.10 per share, payable August 25, 2020, to shareholders of record as of August 11, 2020.

Michael Benstock, Chief Executive Officer, commented, “We are extremely proud to report record operating results for the second quarter and first half of 2020.  It is particularly gratifying to see the hard work, flexibility and ingenuity of our team members pay off and to further demonstrate our ability to adapt and thrive in times like these.  The intentional diversity of our business segments and our historical emphasis on essential businesses bodes well for the future of each of our segments.  While some smaller portions of our business were significantly impacted negatively, we were able to more than offset these shortfalls with the successful pivot to selling personal protective equipment (“PPE”) in addition to our legacy healthcare products, both of which continue to be in high demand during the pandemic.   Net sales of PPE were approximately $58.5 million in the second quarter, and we ended the quarter with a very strong backlog, including nearly $52 million of PPE products expected to ship primarily during the third and fourth quarters of this year.  We continue to book additional PPE orders on a regular basis.

“As a result of the tremendous cash flow generated from operating activities, we were able to further reduce our outstanding debt an additional $16.1 million in the second quarter and over $34 million in the first half of 2020.  Our very strong balance sheet has positioned us very well to be able to capitalize on opportunities as they arise during these times. 

“While we don’t generally provide guidance on individual quarters or years, we are confident that we will continue to see significant increases in our net sales and income in comparison with prior year periods for the balance of the year. 

“We are also pleased to be able to reinstate the regular quarterly dividend and to provide a special dividend equal to the amount that was suspended during the second quarter.”


Superior Group of Companies will hold a conference call on Wednesday, July 29, 2020 at 10:00 a.m. Eastern Time to discuss the Company’s results. A supplemental slide presentation will be available during the call via the live webcast streaming. 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, archived replay and supplemental slide presentation 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 10:00 a.m. Eastern Time on August 12, 2020. 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 10145740 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 current coronavirus (COVID-19) 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 current coronavirus (COVID-19) pandemic on the U.S. and global markets, our business, operations, customers, suppliers and employees, including without limitation the length and scope of the restrictions imposed by various governments and success of efforts to find a suitable vaccine, among other factors; general economic conditions, including employment levels, in the areas of the United States of America (“United States”)  in which the Company’s customers are located; changes in the healthcare, industrial, commercial and hospitality 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 business during the diligence process; the price and availability of cotton, polyester 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, 2019. 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 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 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 we serve. We specialize in innovative uniform program design, global manufacturing, and state-of-the-art distribution. Every workday, 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. 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.

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

Comparative figures are as follows:

(In thousands, except shares and per share data)  
    Three Months Ended June 30,  
      2020     2019  
Net sales   $ 159,359   $ 92,270  
Costs and expenses:          
Cost of goods sold     103,421     59,927  
Selling and administrative expenses     36,298     26,885  
Other periodic pension costs     333     547  
Interest expense     433     1,259  
      140,485     88,618  
Income before taxes on income     18,874     3,652  
Income tax expense     3,700     871  
Net income   $ 15,174   $ 2,781  
Net income per share:          
Basic   $ 1.01   $ 0.19  
Diluted   $ 1.00   $ 0.18  
Weighted average shares outstanding during the period:          
Basic     15,016,062     14,952,802  
Diluted     15,171,086     15,287,357  
Cash dividends per common share   $   $ 0.10  

    Six Months Ended June 30,  
      2020     2019  
Net sales   $ 253,604   $ 178,822  
Costs and expenses:          
Cost of goods sold     164,215     116,211  
Selling and administrative expenses     63,787     52,748  
Other periodic pension costs     618     806  
Interest expense     1,493     2,429  
      230,113     172,194  
Income before taxes on income     23,491     6,628  
Income tax expense     4,950     1,471  
Net income   $ 18,541   $ 5,157  
Net income per share:          
Basic   $ 1.23   $ 0.35  
Diluted   $ 1.22   $ 0.34  
Weighted average shares outstanding during the period          
Basic     15,020,457     14,940,072  
Diluted     15,185,992     15,275,006  
Cash dividends per common share   $ 0.10   $ 0.20  

(In thousands, except share and par value data)  
    June 30,   December 31,  
      2020       2019    
Current assets:          
Cash and cash equivalents   $ 5,102     $ 9,038    
Accounts receivable, less allowance for doubtful accounts of $6,693 and $2,964, respectively     87,064       79,746    
Accounts receivable – other     819       1,083    
Inventories     72,462       73,379    
Contract assets     35,129       38,533    
Prepaid expenses and other current assets     11,046       9,934    
Total current assets     211,622       211,713    
Property, plant and equipment, net     35,656       32,825    
Operating lease right-of-use assets     4,595       5,445    
Intangible assets, net     60,634       62,536    
Goodwill     36,071       36,292    
Other assets     9,592       10,122    
Total assets   $ 358,170     $ 358,933    
Current liabilities:          
Accounts payable   $ 33,275     $ 33,271    
Other current liabilities     39,348       18,894    
Current portion of long-term debt     15,286       15,286    
Current portion of acquisition-related contingent liabilities     2,786       1,905    
Total current liabilities     90,695       69,356    
Long-term debt     69,730       104,003    
Long-term pension liability     9,932       10,253    
Long-term acquisition-related contingent liabilities     1,742       3,423    
Long-term operating lease liabilities     1,880       2,380    
Deferred tax liability     4,405       7,042    
Other long-term liabilities     5,311       4,922    
Commitments and contingencies          
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 15,231,781 and 15,227,604 shares, respectively.     15       15    
Additional paid-in capital     58,381       57,442    
Retained earnings     124,243       107,581    
Accumulated other comprehensive income (loss), net of tax:          
Pensions     (6,492 )     (7,224 )  
Cash flow hedges     80       91    
Foreign currency translation adjustment     (1,752 )     (351 )  
Total shareholders’ equity     174,475       157,554    
Total liabilities and shareholders’ equity   $ 358,170     $ 358,933    

(In thousands)
    Six Months Ended June 30,
      2020       2019  
Net income   $ 18,541     $ 5,157  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization     3,959       4,211  
Provision for bad debts – accounts receivable     4,517       361  
Share-based compensation expense     1,061       1,032  
Deferred income tax benefit     (2,417 )     (1,979 )
Gain on sale of property, plant and equipment           (3 )
Change in fair value of acquisition-related contingent liabilities     1,165       417  
Changes in assets and liabilities:        
Accounts receivable – trade     (12,261 )     (7,230 )
Accounts receivable – other     264       280  
Contract assets     3,404       5,562  
Inventories     492       2,113  
Prepaid expenses and other current assets     (1,479 )     (2,625 )
Other assets     390       (2,102 )
Accounts payable and other current liabilities     21,023       (14 )
Long-term pension liability     639       812  
Other long-term liabilities     464       759  
Net cash provided by operating activities     39,762       6,751  
Additions to property, plant and equipment     (4,893 )     (4,979 )
Proceeds from disposals of property, plant and equipment           3  
Net cash used in investing activities     (4,893 )     (4,976 )
Proceeds from borrowings of debt     77,525       94,466  
Repayment of debt     (111,838 )     (88,667 )
Payment of cash dividends     (1,521 )     (3,023 )
Payment of acquisition-related contingent liability     (1,966 )     (961 )
Proceeds received on exercise of stock options     33       280  
Tax (provision) benefit from vesting of acquisition-related restricted stock     (13 )     30  
Common stock reacquired and retired     (500 )     (1,036 )
Net cash provided by (used in) financing activities     (38,280 )     1,089  
Effect of currency exchange rates on cash     (525 )     41  
Net increase (decrease) in cash and cash equivalents     (3,936 )     2,905  
Cash and cash equivalents balance, beginning of period     9,038       5,362  
Cash and cash equivalents balance, end of period   $ 5,102     $ 8,267  


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