Superior Uniform Group Inc Reports Operating Results (10-Q)
Superior Uniform Group Inc has a market cap of $58.1 million; its shares were traded at around $9.84 with a P/E ratio of 19.3 and P/S ratio of 0.6. The dividend yield of Superior Uniform Group Inc stocks is 5.5%.SGC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: Cost of goods sold, as a percentage of sales, approximated 65.6% for the three-month period ended March 31, 2010 and 68.8% for the three-month period ended March 31, 2009. The decrease is primarily attributed to a reduction in direct product costs as a percentage of sales (1.3%) as well as more efficient operations in our value added services area (1.7%). The Companys gross margins may not be comparable with other entities, since some entities include all of the cost related to their distribution network in cost of goods sold. As disclosed in Note 1 to the Condensed Consolidated Financial Statements, the Company includes a portion of the costs associated with its distribution network in selling and administrative expenses. The amounts included in selling and administrative expenses for the quarters ended March 31, 2010 and 2009, respectively, were $1,603,000 and $1,686,000.
Interest expense of $2,000 for the three-month period ended March 31, 2010 decreased 95% from $40,000 for the similar period ended March 31, 2009. This decrease is attributed to lower outstanding borrowings in the current period.
Accounts receivable and other current assets increased 4.0% from $20,709,000 on December 31, 2009 to $21,533,000 on March 31, 2010. Accounts receivable, net of allowance increased by $1,468,000 primarily as a result of increased sales in the final month of the first quarter of 2010 in comparison with the final month of the fourth quarter of 2009. Other current assets decreased by $644,000 due to a reduction in prepaid income taxes attributed to application of the 2009 overpayment of $520,000 to the current tax provision for the first quarter of 2010. The remaining decrease in other current assets is attributed to timing of prepayments and is not considered significant.
Accounts payable decreased 4.7% from $5,426,000 on December 31, 2009 to $5,170,000 on March 31, 2010. This decrease is primarily attributed to timing of inventory purchases and is not considered significant.
Cash and cash equivalents decreased by $3,029,000 from $6,366,000 on December 31, 2009 to $3,337,000 as of March 31, 2010. The Company used $1,510,000 in cash from operating activities, $565,000 in investing activities primarily related to fixed asset additions of $617,000 and $953,000 in financing activities. Financing activities included the payment of cash dividends and the reacquisition of $183,000 of the Companys common stock, as discussed below. The Company is in full compliance with all terms, conditions and covenants of the revolving credit facility.
During the three months ended March 31, 2010 and 2009, respectively, the Company paid cash dividends of $798,000 and $817,000. The Company reacquired 19,022 and 18,452 shares of its common stock at a total cost of $183,000 and $125,000 in the three-month periods ended March 31, 2010 and 2009, respectively, pursuant to its stock repurchase program. The Company anticipates that it will continue to pay dividends and that it will reacquire and retire additional shares of its common stock in the future as financial conditions permit.
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