Superior Uniform’s Promo Sales Show Strong Q1 Results
Superior Uniform Group, Inc., headquartered in Seminole, Florida, announced that its promotional products net sales in first quarter 2018 were up 109 percent over first quarter 2017. The company, which operates in the promotional products market through its Los Angeles, California-based subsidiary, distributor BAMKO, LLC (PPAI 242148), attributes the increase to acquisitions in the latter half of 2017, when the company acquired distributors Tangerine Promotions, Ltd. (PPAI 439779), Tangerine Promotions West, Inc. and Public Identity, Inc. (PPAI 230372).
“We’re making solid progress on integration efforts, leveraging our shared services model as well as capitalizing on cross-selling opportunities across our business,” says Michael Benstock, chief executive officer.
“The promotional products segment reported a pre-tax loss of approximately $600,000 for the quarter in comparison to pre-tax income of $400,000 in the first quarter of 2017. This loss is attributed to the December acquisition of Tangerine and the nature of their business. Tangerine generally reports lower sales in the first and fourth quarter each year with a more significant portion of their annual sales volume coming in the second and third quarters. We are still in the early stages of integrating this recent acquisition, and we expect the results from this acquisition to be accretive for the full year in 2018.”
Superior Uniform’s net sales increased 19.8 percent to $73.1 million in first quarter 2018, compared to first quarter 2017 net sales of $61 million. Net income for the 2018 first quarter was $2.5 million, or 16 cents per diluted share, compared with $3.8 million, or 26 cents per diluted share, in first quarter 2017. Net income for 2017’s first quarter did include a pre-tax gain of $1 million related to the sale of the company’s former call center building in San Salvador, El Salvador.
“Our results for the first quarter were mixed across our various segments,” says Benstock. “Uniform segment net sales were down slightly at $48.1 million versus $48.3 million. While organic growth in our uniform segment lagged in the first quarter, our results demonstrate our diversified approach and our ability to maintain discipline while navigating a competitive market environment.”
He adds, “The Office Gurus, our remote staffing segment, had a tremendous quarter with net sales to outside customers increasing by $2.6 million or 68.8 percent as they continue to land new customers and grow with existing customers.”