Hala Elsherbini - Halliburton Investor Relations Michael Benstock - Chief Executive Officer Andy Demott - Chief Operating Officer, Chief Financial Officer and Treasurer

Good afternoon, everyone. Welcome to the Superior Uniform Group’s Second Quarter 2015 Conference Call. With us today are Michael Benstock, the Company’s Chief Executive Officer and Andy Demott, its Chief Operating Officer, CFO and Treasurer. After the speakers’ opening remarks, there will be a Q&A session. [Operator Instructions] Now, I will turn the call over to Hala Elsherbini, Senior Vice President of Halliburton Investor Relations who will read the Safe Harbor statement. Please go ahead.

Thank you and good morning. This conference call may contain forward-looking statements about Superior Uniform Group’s business opportunities and its anticipated results of operations. Please bear in mind that forward-looking information is subject to risks and uncertainties and actual results may differ from what you hear today. Many of these risks and uncertainties are described in Superior Uniform Group’s Annual Report on Form 10-K for fiscal 2014 in this morning’s news release and the company’s other filings with the SEC. Forward-looking statements in this conference call are based on our current expectations and beliefs. Management does not undertake any duty to update the forward-looking statements made during this conference call or otherwise. Please note that all growth comparisons that management makes today will relate to the corresponding period of last year unless otherwise noted. With that, I will turn the call over to Michael.

Thank you, Hala and good afternoon everyone. We are happy you could join us to learn more about our performance in the second quarter and first half ended June 30, 2015. I will start as usual with some highlights of our operational financial performance. We will follow up with some comments on general industry trends. Then Andy will give you some additional background on our financial results. I will return afterwards with a general outlook for the second half of the year. And after that, we will both be happy to answer your questions. Those not familiar with our company may not recognize the significance of the 1.7% net sales increase we achieved in the second quarter, but we have to say we are quite pleased with the results given the difficult sales comparison. It is especially gratifying given the fact that the prior year second quarter included two unusually large program rollouts, which we have spoken about before, a $5 million new uniform program for one airline customer as well as the $2.5 million promotional products order for retail ID customer. As we have indicated repeatedly in the past, we continue to service these two customers. However, they were not expected to provide recurring revenue at those same levels. Our sales and marketing team aggressively pursued each and every opportunity, delivered organic growth of more than 15% to overcome the $7.5 million revenue gap. The increase was split between more business with existing customers and higher market penetration with new customers. As a result, we reported a net sales increase for our 11th consecutive quarter and for the 17th time in the last 18 quarters. We are very proud of that. While our bottom line reflected lower net income, keep in mind that net sales from large rollouts and…

Thank you, Michael and good afternoon everyone. Let’s start with the second quarter income statement. Net sales increased 1.7% to $54.1 million. Remote staffing solutions accounted for 1.9% of growth, while the uniforms and related products revenues were down slightly at 0.2%. As I said, the uniforms and related product sales were essentially flat with last year’s second quarter. But as Michael mentioned above, we closed the gap to also have the contributions of a major uniform rollout and a Promotional Products program last year that totaled about $7.5 million in sales all with organic growth. Uniform program for chain retail stores were the strongest for us showing the largest double-digit increase. Healthcare, foodservice and private security also experienced significant expansion. And we are reinvigorating our legacy laundry business by establishing a stronger presence here. The remote staffing solutions segment saw quarterly sales to outside customers rise 53.9% from a year ago. This operation continued to attract new customers as well as build deeper relationships with existing ones. Cost of goods sold rose about 4% to $35.6 million. As a percent of sales, there was 65.8% compared with 64.3% in 2014. The main difference was higher direct product cost as a percentage of sales due to the absence of last year’s $5 million new airline uniform program rollout. The contract had a higher than average gross margin as it also required a higher level of customer service and distribution cost. Our global sourcing team which creates product cost savings while maintaining quality and our logistics group which secures cost effective and reliable ways to get products to our customers continue to make positive contributions here. As expected, gross margins as a percentage of sales was down slightly to 34.2% or $18.5 million, for the 2014 second quarter it was 35.7%…

Thanks, Andy. In the second quarter, we lived up to our promise to close the gap on the revenue generated by the two major program rollouts a year ago. This is a testament to our brand and design strength and market penetration. I am truly proud of our organization for delivering a solid second quarter and uncovering opportunities within a highly competitive environment. Looking ahead our pipeline of opportunities remained strong and is getting stronger. We expect all areas of our business will continue to improve throughout the year. We are still aggressively seeking the right acquisitions and analyzing synergistic opportunities for our uniforms, promotional products and remote solutions businesses. We are in active discussions with a number of acquisition candidates but will only continue to pursue those that meet our criteria. This includes operations that give us critical mass in existing or new market, create new relationships for us or add products and services that are a logical extension of our business. Our solid financial position gives us the flexibility to take action when we find the right opportunities. We remain on track with construction at the Office Gurus new call center in El Salvador. This facility ultimately will house over 1,200 agents who will help support the profitable growth of this business. The building should be completed early in 2016 and begin operations soon thereafter. With that as background, let’s open the call for Q&A.

Okay. No questions. I would like to think that we would have a few, but we will leave it at that. Thank you, Kate. As you can see, there was much great news during the quarter both from an organic growth perspective and our ability to hold the line on costs. We are excited about the continued momentum in our business and we are optimistic about the rest of this year. Demand is increasing in the markets that we serve in part from an improving economy. There is bolstering new jobs and higher turnover. As companies look to keep good employees and continue to build their own businesses, they see the benefit our comprehensive approach to uniform and promotional products. Additionally, we are successfully filling the niche in the call center industry by securing accounts with smaller seat requirements and offering outsourced business processes that deliver more cost effective and productive solutions. Our strong operating fundamentals are rooted and our volume purchasing power, redundant global sourcing and manufacturing capabilities that allow us to control costs and improve the bottom line. And our strong balance sheet enables us to invest in our growth, which creates near-term dividends and long-term value for our shareholders. In closing, I would like to commend our staff on a job well done, they continue to excel and deliver on the long-term strategies. Andy and I appreciate your time today and the confidence that you and all of our investors have in the company. We look forward to sharing our third quarter and 9-month results with you in October. In the meantime, we hope you enjoy the rest of the summer.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.