Superior Uniform Group, Inc. Reports Operating Results for 2011
Superior Uniform Group, Inc. Reports Operating Results for 2011
SUPERIOR UNIFORM GROUP, INC. REPORTS OPERATING RESULTS FOR 2011
· 6.3% INCREASE IN EARNINGS PER SHARE
· 6.1% INCREASE IN NET SALES
SEMINOLE, Fla. – February 23, 2012 – Superior Uniform Group, Inc. (NASDAQ: SGC), manufacturer of
uniforms, image apparel and accessories, today announced its fourth quarter and year-end operating
results for 2011.
The Company announced that for the year ended December 31, 2011, net sales increased 6.1% to
$112,373,000, compared to 2010 net sales of $105,878,000. Net earnings for the year ended December
31, 2011 were $4,136,000 or $0.68 per share (diluted) compared to $3,807,000 or $0.64 per share (diluted)
reported for the year ended December 31, 2010.
Net earnings for the fourth quarter ended December 31, 2011 were $725,000 or $0.12 per share (diluted)
compared to net earnings of $944,000 or $0.16 per share (diluted) reported for the fourth quarter ended
December 31, 2010.
Michael Benstock, chief executive officer, commented: “We are pleased to report an increase of 6.1% in
our net sales and an increase of 6.3% in our net earnings per share (diluted) in 2011. 2011 provided new
challenges as we saw substantial increases in raw material prices as a result of unprecedented cotton
shortages. We ensured that we were in a position to take care of our customers by investing heavily in our
raw material inventories. As a result, we were able to provide our products to our customers throughout the
period of the shortages and were able to improve our market share in the process. We were also able to
pass on a portion of these increases to customers during the year. However, after reaching record highs
earlier in the year, raw material prices began declining in the latter part of 2011. The impact of these
decreases will not be realized in our inventories for at least three to six months. As a consequence of the
higher pricing of raw materials during the shortages earlier this year, our margins for our core business
were down in the fourth quarter of 2011 and we expect that they will continue to be pressured for the next
several quarters as we work through this higher priced inventory. Additionally, we completed a significant
consulting project in the current year as part of our ongoing strategic plan. This project, performed by a
major international consulting firm, involved a detailed market analysis of our customers’ requirements, our
internal strengths and weaknesses and development of a roadmap to capitalize on the opportunities
identified in the future. The total pre-tax cost of this project was approximately $580,000 and resulted in a
reduction of net earnings per share (diluted) of approximately $.06 per share in 2011. Also, as we
previously announced, we launched our new division, everyBODY media® during the first quarter of 2011.
Our operating results include approximately $1,300,000 of pre-tax expenses for 2011 associated with this
new venture and resulted in a reduction of net earnings per share (diluted) of approximately $.14 per share
in 2011. While we have not yet generated significant revenues from this venture, we are heavily involved in
validating the value of this new media and are receiving favorable responses from the market relative to the
concept. We anticipate rolling out several test programs in the near future.
“We continue to show significant growth in our remote staffing business, The Office Gurus®. Net sales for
2011 were $2,931,000, compared to $1,015,000 in the prior year. We expect this vertical to continue to
grow substantially going forward. Our financial position remains very strong and continues to provide us
with the ability to invest in new ventures such as everyBODY media® and The Office Gurus®, as well as to
continue to explore strategic acquisitions and stock buyback programs.”