Superior Uniform Group Reports Second Quarter Operating Results

Superior Uniform Group Reports Second Quarter Operating Results

  • 6.7% INCREASE IN EARNINGS PER SHARE (DILUTED)
  • 6.7% INCREASE IN NET SALES

SEMINOLE, Florida – July 19, 2012 – Superior Uniform Group, Inc. (NASDAQ: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2012, sales were $29,335,000, compared with 2011 second quarter sales of $27,505,000. Net earnings were $977,000 or $0.16 per share (diluted), compared with earnings of $932,000 or $.15 per share (diluted) in the 2011 second quarter.

For the six months ended June 30, 2012, sales were $57,843,000, compared with sales of $54,404,000 in the six months ended June 30, 2011. Net earnings for the six months ended June 30, 2012 were $1,304,000 or $0.21 per share (diluted), versus earnings of $1,531,000 or $.25 per share (diluted) in the first six months of 2011.

Michael Benstock, chief executive officer, commented: “We are pleased to report an increase of 6.7% in our net sales. Gross margins for our Uniform and Related Products business continued to be pressured in the second quarter of 2012, consistent with our expectations. As we indicated in our first quarter 2012 earnings release, we ensured that we were in a position to take care of our customers by investing heavily in our raw material inventories during the cotton crisis of 2011. 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. However, as we work through the higher priced inventory we had built up during 2011, our gross margins were negatively impacted and we expect that they will continue to be pressured into the next quarter. We continued to see the benefits in this approach as we increased our market position in the first half of 2012.”

“Sales growth to outside customers in our Remote Staffing Solutions business was at a much slower rate in the current quarter as we have worked to integrate the accounts we have added over the last few periods. However, we are well positioned in this market place and have new accounts set to start in the coming quarter. We expect to return to solid growth in this market segment as we move forward.”

“Our financial position remains very strong and continues to provide us with the ability to support our ongoing growth initiatives.”

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