Superior Uniform Group (SGC) Tops Q2 EPS by 76c, Revenues Beat

Superior Uniform Group (NASDAQ: SGC) reported Q2 EPS of $1.00, $0.76 better than the analyst estimate of $0.24. Revenue for the quarter came in at $159.4 million versus the consensus estimate of $104.13 million.

• 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

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.”

For earnings history and earnings-related data on Superior Uniform Group (SGC) click here.

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