Superior Uniform Group expects profitable sales in future due to cost reduction initiatives
As and when economic conditions improve, we expect to see a significant improvement in our earnings due to cost reduction initiatives; says Michael Benstock, Chief Executive Officer, Superior Uniforms Group.
Superior Uniform Group, Inc., manufacturer of uniforms, career apparel and accessories announced that for the second quarter ended June 30, 2009, sales were $24,971,523, compared with 2008 second quarter sales of $31,699,285. Earnings from continuing operations were $701,272 or $.12 per share (diluted), compared with earnings from continuing operations of $1,210,804 or $.18 per share (diluted) in the 2008 second quarter.
For the six months ended June 30, 2009, sales were $48,687,617, compared with sales of $64,981,915 in the six months ended June 30, 2008. Earnings from continuing operations for the six months ended June 30, 2009 were $198,327 or $.03 per share (diluted), versus earnings from continuing operations of $2,125,612 or $.32 per share (diluted) in the first six months of 2008.
Michael Benstock, Chief Executive Officer, commented: “Our sales continue to be impacted by the current economic environment. However, as a result of the cost reduction initiatives that we discussed in our first quarter earnings release, we were able to realize significant improvements in our earnings in the second quarter in comparison to the first quarter of 2009."
"These initiatives are aimed at eliminating nonessential positions, streamlining our existing processes and shifting administrative positions to our Central American subsidiary where possible. Additionally, when economic conditions do improve, we expect to see significant improvement in our earnings as a result of these cost reduction initiatives. Year to date, we have generated over $11 million in cash from operations and we have eliminated all of our outstanding debt. We remain focused on generating positive cash flows through both expense control and working capital management."
"Given our current position of financial strength, we will weather the current economic environment. Our ability to still support our long-term growth initiatives will ultimately allow us to emerge from this economic malaise as a stronger and more profitable organization while maintaining our priority of providing superior service to our customers. We are pursuing potential strategic acquisitions to help achieve these objectives. Finally, we remain committed to reacquiring shares of our common stock. We have an active repurchase program with an outstanding authorization to repurchase an additional 557,000 shares as of June 30, 2009.”
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