Superior Uniform Group, Inc. (SGC) has reported a 12.03 percent rise in profit for the year ended Dec. 31, 2016. The company has earned $14.64 million, or $0.98 a share in the year, compared with $13.07 million, or $0.90 a share for the last year.
Revenue during the year grew 20.10 percent to $252.60 million from $210.32 million in the previous year. Gross margin for the year expanded 47 basis points over the previous year to 34.44 percent. Total expenses were 91.85 percent of annual revenues, up from 90.77 percent for the last year. That has resulted in a contraction of 108 basis points in operating margin to 8.15 percent.
Operating income for the year was $20.59 million, compared with $19.42 million in the previous year.
Michael Benstock, chief executive officer, commented, "We are pleased to report solid gains for both top and bottom line performance for fiscal 2016. Net income increased 12.0 percent on a net sales gain of 20.1 percent. Results like these are only possible through the hard work and disciplined focus of our teams. We also laid the groundwork for long-term future success by strengthening our competitive position and broadening our growth prospects. During 2016, we completed the acquisition of BAMKO to give us a strong foothold in the promotional products and branded merchandise market. We opened a new factory in Haiti to improve our competitive position, and we completed our new call center facility in El Salvador that essentially triples our capacity there."
Operating cash flow improves
Superior Uniform Group, Inc. has generated cash of $11.99 million from operating activities during the year, up 20.94 percent or $2.08 million, when compared with the last year.
The company has spent $22.55 million cash to meet investing activities during the year as against cash outgo of $8.04 million in the last year.
Cash flow from financing activities was $13.11 million for the year as against cash outgo of $5.42 million in the last year period.
Cash and cash equivalents stood at $3.65 million as on Dec. 31, 2016, up 252.22 percent or $2.61 million from $1.04 million on Dec. 31, 2015.
Working capital increases
Superior Uniform Group, Inc. has recorded an increase in the working capital over the last year. It stood at $93.11 million as at Dec. 31, 2016, up 17.29 percent or $13.73 million from $79.38 million on Dec. 31, 2015. Current ratio was at 3.92 as on Dec. 31, 2016, down from 4.22 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 105 days for the year from 191 days for the last year. Days sales outstanding went down to 60 days for the year compared with 62 days for the same period last year.
Days inventory outstanding has decreased to 77 days for the year compared with 165 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the year from 36 for the same period last year.
Debt increases substantially
Superior Uniform Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $42.12 million as on Dec. 31, 2016, up 76.37 percent or $18.24 million from $23.88 million on Dec. 31, 2015. Total debt was 21.40 percent of total assets as on Dec. 31, 2016, compared with 15.73 percent on Dec. 31, 2015. Debt to equity ratio was at 0.38 as on Dec. 31, 2016, up from 0.26 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 29.92 for the year from 37.41 for the same period last year.
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