Superior Group Of Companies Reports Sales, Income Up In Fourth Quarter And 2018
Superior Group of Companies, Inc., which operates in the promotional products market through its subsidiaries, distributors BAMKO, LLC (PPAI 242148), Tangerine Promotions, Ltd. (PPAI 439779) and Public Identity, Inc. (PPAI 230372), has announced fourth quarter and year-end operating results for 2018.
"While the fourth quarter performance of our uniform segment was below our expectations, we've made tremendous progress on the integration of our uniform businesses within our Superior Group of Companies,” says Michael Benstock, CEO. “We are aggressively developing avenues to leverage our expanded product assortment and service lines within the segment to meet and exceed our existing customers' expectations and to gain market share. We are also on schedule with the integration of our ERP systems that, once completed, will allow us to maximize cost efficiencies throughout our operations. I'm quite satisfied with our progress in these areas and am confident in the overall trajectory of our uniform business as we enter 2019.”
The Seminole, Florida-based company announced that for the year that ended December 31, 2018, net sales increased 29.8 percent to $346.4 million, compared to 2017 net sales of $266.8 million. Income before taxes on income was $21.4 million compared to $24.8 million in 2017. Net income for fiscal year 2018 increased 13 percent to $17 million, or $1.10 per diluted share, compared to $15 million, or $0.99 per diluted share, reported in 2017. Net income for 2018 was reduced by approximately $2 million ($0.13 per diluted share) of direct expenses associated with the May 2 acquisition of CID Resources.
Net sales for fourth quarter 2018 increased 31.1 percent to $95 million, compared to 2017 fourth quarter net sales of $72.4 million. Income before taxes on income was $5.7 million compared to $6.8 million in the 2017 fourth quarter. Net income for the quarter was $4.6 million, or $0.30 per diluted share, compared to $1.9 million, or $0.12 per diluted share, reported for the fourth quarter 2017. Fourth quarter 2017 net income was reduced by approximately $4 million, or $0.26 per diluted share, associated with the enactment of the Tax Cuts and Jobs Act.
Benstock adds, “I'm particularly pleased with the performance of BAMKO and The Office Gurus. During the fourth quarter, BAMKO, our promotional products segment, posted strong organic net sales growth of 32 percent, and total net sales within the segment grew 68 percent to $24 million. The Office Gurus, our remote staffing segment, continues to outperform our expectations with quarterly net sales growth to outside customers of 22 percent."
On January 22, the company restructured the Amended and Restated Credit Agreement (Term Loan) it entered into with its lender on May 2, 2018. The restructuring reduced the principal amount of the term loan to $65 million by using $20 million of proceeds under its revolving credit facility, extended the maturity from May 2020 to January 2026 and lowered the variable interest rate to LIBOR plus 85 basis points.