Superior Uniform Group, Inc. (SGC) has reported 57.04 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $3.84 million, or $0.26 a share in the quarter, compared with $2.44 million, or $0.17 a share for the same period last year. Revenue during the quarter grew 5.21 percent to $60.99 million from $57.97 million in the previous year period. Gross margin for the quarter expanded 189 basis points over the previous year period to 36.42 percent. Total expenses were 91.15 percent of quarterly revenues, down from 94.04 percent for the same period last year. This has led to an improvement of 289 basis points in operating margin to 8.85 percent.
Michael Benstock, chief executive officer, commented, "We are pleased to report a 57 percent increase in net income despite falling slightly short of our own expectations for sales in the first quarter. Our sales growth was negatively impacted in the first quarter by several factors. Two factors were most prominent. First, one of our large customers was acquired by one of their competitors during 2016 which was serviced by a different uniform provider. As a result, they are in the process of transitioning their uniform program to the provider utilized by the acquiring company.
Operating cash flow turns positiveSuperior Uniform Group, Inc. has generated cash of $7.01 million from operating activities during the quarter as against cash outgo of $2.73 million in the last year period. Cash flow from investing activities was $1.88 million for the quarter as against cash outgo of $17.96 million in the last year period.
The company has spent $3.22 million cash to carry out financing activities during the quarter as against cash inflow of $21.91 million in the last year period.
Cash and cash equivalents stood at $9.37 million as on Mar. 31, 2017, up 309.44 percent or $7.08 million from $2.29 million on Mar. 31, 2016.
Working capital increases marginally
Superior Uniform Group, Inc. has recorded an increase in the working capital over the last year. It stood at $96.29 million as at Mar. 31, 2017, up 4.62 percent or $4.25 million from $92.04 million on Mar. 31, 2016. Current ratio was at 4.27 as on Mar. 31, 2017, down from 4.75 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 105 days for the quarter from 183 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 59 days for the same period last year.
Days inventory outstanding has decreased to 82 days for the quarter compared with 152 days for the previous year period. At the same time, days payable outstanding was almost stable at 28 days for the quarter, when compared with the previous year period.
Debt comes down
Superior Uniform Group, Inc. has recorded a decline in total debt over the last one year. It stood at $41.96 million as on Mar. 31, 2017, down 12.69 percent or $6.10 million from $48.06 million on Mar. 31, 2016. Total debt was 21.28 percent of total assets as on Mar. 31, 2017, compared with 25.92 percent on Mar. 31, 2016. Debt to equity ratio was at 0.37 as on Mar. 31, 2017, down from 0.48 as on Mar. 31, 2016. Interest coverage ratio improved to 29.34 for the quarter from 23.35 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
