Superior Uniform Group Reports 19.5 Percent Q2 Sales Increase
Superior Uniform Group, Inc. (UPIC: SUGASI) announced a second quarter 2016 net sales increase of 19.5 percent to $64.7 million, compared to net sales of $54.1 million during 2015’s second quarter. The Seminole, Florida, distributor’s net income for second quarter was $3.1 million, compared to $3.6 million in same period last year. In March, Superior Uniform Group acquired Los Angeles, California, distributor BAMKO, Inc. (UPIC: Bamko783), which Superior Uniform Group CEO Michael Benstock credits for the increase in sales.
“We are pleased to report a 19.5 percent increase in net sales in the second quarter,” says Benstock. “The increase in net sales for the second quarter came from net sales at BAMKO and from The Office Gurus, our remote staffing segment. Net sales in our uniforms segment leveled off in the second quarter following an exceptionally strong first quarter of 2016. Additionally, BAMKO has come out of the gate very strong, generating net sales of $9.8 million in the 2016 second quarter. This represents an increase of more than 88 percent versus the same period in 2015. We are very pleased with BAMKO and continue to work to achieve operational and sales synergies between the two organizations.
“The Office Gurus continues to grow at a very healthy rate with net sales to outside customers up 25.8 percent over the second quarter of 2015. At the end of the second quarter, we completed the building project in El Salvador and moved into a brand new, state-of-the-art, call center facility that nearly triples our capacity there. In addition to the acquisition of BAMKO and the new building in El Salvador, we continue to invest in our uniform business. Our new sewing factory in Haiti is progressing nicely and on schedule with our implementation plan. We expect it to achieve breakeven status by the end of 2016.”
For the six months ended June 30, 2016, net sales increased 22.1 percent to $122.6 million compared with net sales of $100.5 million for the first half of 2015. Net income for the first six months of 2016 was $5.3 million, compared with $5.7 million for the same period of 2015. As a result of the BAMKO acquisition, net income was negatively affected by $0.2 million in pre-tax acquisition-related expenses in the second quarter of 2016 and $1.1 million in the first six months of 2016.
Benstock adds, “Our financial position remains strong, and we were able to pay down outstanding debt by $4.7 million in the second quarter of 2016. This financial strength positions us well to continue to invest in our businesses and to take advantage of opportunities as they arise.”