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2016 Third Quarter Operating Results for Superior Uniform Group, Inc.
Thu, 10/27/2016 - 09:37 -- Press Room
Superior Uniform Group, Inc. (NASDAQ: SGC), manufacturer of uniforms, career apparel and accessories, today announced that for the third quarter ended September 30, 2016, net sales increased 15.2 percent to $65.3 million compared with 2015 third quarter net sales of $56.7 million. Net income for the 2016 third quarter was $4.4 million, or $0.29 per diluted share, compared with $4.0 million, or $0.28 per diluted share, reported for the quarter ended September 30, 2015.
For the nine months ended September 30, 2016, net sales increased 19.6 percent to $187.9 million compared with net sales of $157.1 million for the nine months ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $9.7 million, or $0.65 per diluted share, compared with $9.7 million, or $0.67 per diluted share, reported for the nine months ended September 30, 2015.
As a result of the BAMKO acquisition, net income was negatively impacted by $1.1 million in pre-tax acquisition related expenses in the first nine months of 2016.
Net Sales Increase 15.2%
16th Consecutive Quarter with Sales Increase
Michael Benstock, Chief Executive Officer, commented, “We are pleased to report a 15.2 percent increase in net sales in the third quarter. This represents our 16th consecutive quarter reporting an increase in net sales. BAMKO contributed approximately 11 percent of our increase in net sales in the current quarter. Our Uniforms and Related Products Segment, exclusive of BAMKO, contributed approximately 3.4 percent of the increase in the current quarter with the balance coming from our Remote Staffing segment. BAMKO contributed 12.6 percent to our increase in net sales for the first nine months of 2016, our Uniforms and Related Products Segment, exclusive of BAMKO, reported an increase in net sales of 5.6 percent and our Remote Staffing Solutions segment contributed 1.4 percent.
“We also achieved solid earnings growth, with net earnings up 8.8 percent for the third quarter. Gross Margins increased to 35.4 percent in the third quarter of 2016 from 33.9 percent in the comparable period of last year primarily as a result of previous investments made to improve our product sourcing.
“We continue to make significant progress as we work to achieve operational and sales synergies associated with the acquisition of BAMKO. The team is well positioned to close out 2016 with a solid fourth quarter.
“We are on target to hit our long-term growth goals, and customer response to our product and service offerings remains strong in all areas of our business. Our solid financial position and healthy balance sheet positions us well to respond easily to changing market and economic conditions while continuing to deliver organic growth supplemented by accretive acquisitions.”