Superior Uniform Group Inc (SGC) filed Quarterly Report for the period ended 2009-06-30.
Superior Uniform Group 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. (Press Release) Superior Uniform Group Inc has a market cap of $47 million; its shares were traded at around $7.7684 with a P/E ratio of 64.7 and P/S ratio of 0.4. The dividend yield of Superior Uniform Group Inc stocks is 7%.
Highlight of Business Operations:
The current economic environment in the United States remains very challenging. A significant number of companies, including many of our customers, have closed locations, reduced headcount or both. Additionally, voluntary employee turnover has been reduced significantly. Fewer available jobs coupled with less attrition resulted in decreased demand for our uniforms and service apparel. Additionally, customers are being more cost conscious and are delaying purchases of new uniforms whenever possible. As a result of these factors, net sales decreased 21.2% from $31,699,285 for the three months ended June 30, 2008 to $24,971,523 for the three months ended June 30, 2009 and net sales decreased 25.1% from $64,981,915 for the six months ended June 30, 2008 to $48,687,617 for the six months ended June 30, 2009.
Cost of goods sold, as a percentage of sales, approximated 66.8% for the three months ended June 30, 2009 compared to 66.4% for the three months ended June 30, 2008. Cost of goods sold, as a percentage of sales, approximated 67.8% for the six months ended June 30, 2009 compared to 66.8% for the six months ended June 30, 2008. The increases as a percentage of sales in the three and six-month periods are primarily attributed to the significant reductions in net sales outpacing the reductions in overhead included within cost of sales. The Company’s 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 three-month periods ended June 30, 2009 and 2008, respectively, were $1,545,552 and $1,824,634. The amounts included in selling and administrative expenses for the six-month periods ending June 30, 2009 and 2008, respectively, were $3,231,130 and $3,817,890
