Superior Uniform Group, Inc. (AMEX: SGC) , manufacturer of uniforms, career apparel and accessories, today announced that for the third quarter ended September 30, 2002, sales were $36,674,776 compared with 2001 third quarter sales of $36,256,055. Net income was $1,580,883 or $.22 per common share (diluted), compared with net income of $979,785 or $.14 per common share (diluted) in the 2001 third quarter.
For the nine months ended September 30, 2002, sales were $108,765,106, compared with sales of $113,560,601 in the nine months ended September 30, 2001. Net income before extraordinary item and cumulative effect of change in accounting principle for the nine months ended September 30, 2002 was $3,678,907 or $.51 per common share (diluted), compared to $4,363,850 or $.61 per common share (diluted) reported in the first nine months of 2001. Net loss for the nine months ended September 30, 2002 was $1,012,695 or $.14 per common share (diluted) versus net income of $4,363,850 or $.61 per common share (diluted) in the first nine months of 2001.
Net loss for the nine months ended September 30, 2002 includes a $4.5 million, non-cash charge reflected as a cumulative effect of change in accounting principle, net of tax in accordance with the newly promulgated Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets." Net income for the nine-month period ended September 30, 2001 included a pre-tax gain from the resolution of outstanding vendor matters in the amount of $1,683,000 or approximately $.15 per common share (diluted) on an after-tax basis.
Gerald M. Benstock, Chairman and C.E.O., commented: "We were very gratified to see an increase in net earnings in the current quarter in excess of 60%. We have seen significant reductions in our selling and administrative expenses as a result of the significant reductions in administrative personnel and related costs that were implemented last year. Additionally, we are seeing significant reductions in our interest expense as a result of the significant cash that we have generated over the last two years.
"Several significant items adversely impacted net earnings in the first nine months of 2002. We recorded the cumulative effect of change in accounting principle charge related to the adoption of SFAS No. 142 for goodwill in the amount of $4,505,000 after tax or $0.63 per common share (diluted). We incurred an extraordinary item related to early extinguishment of debt in the amount of $187,000 after tax or approximately $.03 per common share (diluted). We recorded bad debt reserves related to the one account discussed in our second quarter earnings release for approximately $1.0 million, before tax or approximately $.09 per common share (diluted) after tax. Additionally, net earnings were reduced by pre-tax costs of approximately $360,000 or approximately $.03 per common share (diluted), after tax, expensed relative to our review of a potential acquisition that we are no longer pursuing."
Superior Uniform Group, through its marketing divisions -- Fashion Seal Uniforms, Martin's, Empire, Appel, Worklon, Universal, and Sope Creek -- manufactures and sells a wide range of uniforms, corporate I.D., career apparel and accessories for the hospital and healthcare fields; hotels; fast food and other restaurants; and public safety, industrial, transportation and commercial markets, as well as corporate and resort embroidered sportswear.
Statements contained in this press release which are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties, including without limitation those identified in the Company's SEC filings, which could cause actual results to differ from those projected.
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