Superior Uniform Group Reports Fourth Quarter, Fiscal Year 2017 Financial Results
Superior Uniform Group, Inc. has announced its fourth-quarter and year-end operating results for 2017. Net sales for the year ending December 31, 2017, were up 5.6 percent to $266.8 million, and net sales for the quarter were up 12 percent to $72.4 million. Superior Uniform Group operates in the promotional products market through its Los Angeles, California-based subsidiary, distributor BAMKO, LLC (PPAI 242148).
Net income for the year was $15 million, compared to $14.6 million for 2016. 2017’s net income was reduced by approximately $4 million as a result of increases in the fourth-quarter tax provision associated with the enactment of the Tax Cuts and Jobs Act in December of 2017. Fourth quarter 2017 represented the company’s 21st consecutive quarter of year-over-year sales increases. Net income for the quarter was $1.9 million, compared to net income of $4.4 million reported for fourth quarter 2016.
Michael Benstock, chief executive officer, says, “We are pleased to report we had a strong finish to fiscal 2017, with the fourth quarter marking our 21st consecutive quarter of increasing year-over-year revenue. Our net sales growth for the year was highlighted by over 15 percent organic growth in our promotional products segment and The Office Gurus, our remote staffing segment, had record growth as well with net sales to outside customers increasing over 33.7 percent in fiscal 2017. Our uniform segment was mixed, primarily as a result of the loss of a significant customer as we have discussed throughout 2017.
“Overall, we achieved very strong growth in operating income with earnings before taxes increasing 24.5 percent in 2017 with a tremendous boost from our sourcing strategies and the further streamlining of our operations. Note that 2017 results include a gain on the disposal of our former call center building in El Salvador of $1 million. Exclusive of this gain and exclusive of acquisition expenses in both 2017 and 2016, our operating margins improved to 9.3 percent as compared to 8.6 percent in 2016. Additionally, in the latter part of 2017, we kicked off strategic initiatives to integrate Superior ID and HPI, leveraging the strengths of each group to create a stronger, more efficient organization.”
He also credits growth to the completion of two acquisitions in 2017, Public Identity, Inc. in August and Tangerine Promotions in November, toward further strengthening the company’s platform for future growth in this market segment. “We are well positioned to complete additional strategic acquisitions in this area and are working through a significant pipeline of potential acquisition candidates,” says Benstock.
“While the Tax Cuts and Jobs Act passage in the fourth quarter resulted in a significant increase in our tax provision in 2017, the reduced tax rates will benefit our earnings in the future. Our balance sheet remains strong and leaves us well positioned to take advantage of the opportunities that lie ahead.”