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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