Superior Group of Companies, INC. Reports Second Quarter Operating Results

FOR IMMEDIATE RELEASE

SUPERIOR GROUP of COMPANIES, INC. REPORTS SECOND QUARTER

OPERATING RESULTS

Net Sales Increase 25.6 Percent
23rd Consecutive Quarter with Sales Increase

SEMINOLE, Florida – July 26, 2018 – Superior Group of Companies, Inc. (NASDAQ: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2018, net sales increased 25.6 percent to $82.4 million compared with 2017 second quarter net sales of $65.6 million. Net income for the 2018 second quarter was $3.8 million, or $0.25 per diluted share, compared with $4.3 million, or $0.29 per diluted share, reported for the quarter ended June 30, 2017. Note that earnings in the second quarter of 2018 were reduced by a pre-tax charge of approximately $1.6 million or approximately $.08 per diluted share for expenses associated with the acquisition of CID Resources, Inc.

Additionally, the comparison of net sales and earnings results in the current quarter is significantly impacted by the adoption of ASC 606 relative to the timing of revenue recognition. The 2017 results are calculated under the previous revenue recognition guidance while 2018 is under the new standard. This resulted in a reduction in net sales for the second quarter of 2018 of approximately $2.9 million and a corresponding reduction in net income and earnings per diluted share of $0.6 million and $0.04, respectively. ASC 606 does not change the economic substance or timing of cash flows of our transactions with customers. After the initial year of adoption, ASC 606 should not have a major impact in our comparative results in the future.

Michael Benstock, Chief Executive Officer, commented, “Over the last year, we completed three acquisitions that have us positioned for significant improvement in our future growth prospects for both net sales and earnings. We are highly focused on successfully integrating these acquisitions to achieve the maximum long-term benefits for the Company and its shareholders. While our current operating results in our Uniform segment and our Promotional segment were lower than anticipated, we remain confident in our long-term outlook and believe our current investments in these segments will provide significant returns for the Company in the future.

“The Office Gurus, our Remote Staffing segment, had another tremendous quarter with net sales to outside customers increasing by $2.3 million, or 50.6 percent, as they continue to land new customers and to grow with existing customers. We are also excited to announce that we have identified Jamaica as the next country for our continued expansion in this segment.”

CONFERENCE CALL

Superior Group of Companies will hold a conference call on Thursday, July 26, 2018 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 August 2, 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 10121858 for all replay access.

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 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.

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:

Andrew D. Demott, Jr., OR Hala Elsherbini

COO, CFO & Treasurer Halliburton Investor Relations

(727) 803-7135 (972) 458-8000

 

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