Good afternoon, everyone. Welcome to the Superior Uniform Group’s 2016 First Quarter Earnings 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] This call is being recorded and your participation implies that you agree to this. If you don’t, then simply drop off the line. 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, excuse me, and good afternoon. 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 2015 in this morning’s news release and in 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 elsewhere. Please note that all growth comparisons that management makes today will relate to the corresponding periods in 2015 unless otherwise noted. With that, I will turn the call over to Michael.

Thank you, Hala and rest assured it is afternoon, and good afternoon to everyone. Welcome to our Q1 2016 earnings call. We had a fabulous start to 2016 as we continued to build on the strategic framework for long-term growth. The first quarter was certainly action packed not only did net sales significantly increase by 25.1%. We opened our factory in Haiti and acquired BAMKO effective March 1st. BAMKO is not just another promotional products company. It is a dominant player in the branded merchandise market. The business has an outstanding sales, marketing, product and customer centric team, which delivered fiscal 2015 net sales of $31.5 million. Coupled with our existing promotional products offering through Blue Fusion this makes us one of their largest promotional products company distributors in the country. Before reviewing segment highlights, I’d like to summarize our rationale for the acquisition. BAMKO adds an important element to enhance our position in all the markets that we serve it’s a combination that makes sense from both growth and synergy standpoint. Specifically, it provides a more diversified revenue and earnings range for Superior, it also provides a platform for our promotional products and branded merchandise business, this is very similar, if you recall to what the acquisition of HPI Direct did for us in helping to create a new platform across all non-healthcare uniform business development. BAMKO also has deep sourcing capabilities, we are now in the enviable position of having one of the largest staffs in China of any promotional products distributor or Uniform company in the United States. Our staff of more than 60 people there manages projects and performs due-diligence, quality control and social of its directly more than 150 factories in any given time. In most cases, this means no brokers, no agents direct from…

Thank you, Michael, and good afternoon everyone. We are very excited to have completed the acquisition of substantially all of the assets of BAMKO which flows effective as of March 1st. BAMKO's operating results are included in our financial statements for the last month of the first quarter where possible I will breakout its results separately to illustrate its impact as well as the progress we're making in the rest of the uniforms and related product segments. I'd also like to point out the BAMKO sales tend to be more lumpy because of their shorter sales cycle as well as the impact from large contracts which can fluctuate quarter-to-quarter. This may have a slight impact on our overall sales trends going forward additionally Chinese New Year tends to negatively impact BAMKO's second quarter where first quarter production levels effect their second quarter sales results. As we've pointed out in the past, we have an inventory based process with our uniform business and the sales cycle is in the 2 to 3 year range whereas BAMKO is making shift model and can’t close on certain deals in less than three months and shift within weeks or months depending on the level of customization required. Now let's start with the closer look at the quarterly income statement, net sales jumped 25.1% to nearly $58 million. This represents our 14 consecutive quarter of sales growth. Uniforms and related products contributed 14.9% of this gain on an organic basis. The BAMKO acquisition added 8.2% and Remote Staffing Solutions contributed the additional 2%. Uniform related product sales increased 24.4% from a year ago, BAMKO had a great start to their year contributed 8.7% of the increase with the balance coming from a solid new business pipeline as we continue to take market share. And as…

Thanks Andy. We closed a solid first quarter and had a good momentum as we head toward the midpoint of 2016. We expect to benefit from the significant investments we've made to increase our capacity, strengthen our market position and broaden our value proposition to existing and new customers. We also made deep organizational changes last year, creating better accountability among our channel managers through a more efficient corporate structure and the metrics by which we judge our leadership. While we don't expect to see sales rise as dramatically during the rest of the year as they did in the first quarter, our outlook remains very positive. We expect to be very much in line with our long-term guidance. Over the next 3 to 5 years, we expect consolidated average organic sales growth in excess of 8% per year for our business excluding BAMKO. This includes increases in our Uniform business of approximately 6% per year and $2.5 million to $3 million increases for our remote staffing solutions. As mentioned earlier, BAMKO generated net sales of approximately $31.5 million in 2015 and we expect BAMKO to generate organic growth in excess of 15% per year. In addition through BAMKO’s scalable platform, we have increased our ability to add on acquisitions. Our criteria includes companies with $5 million to $15 million in annual sales, good geographic penetration, strong customer base or product lines that we can leverage. On a longer term basis, we're working through out pipeline of Uniform acquisition opportunities. We continue to cultivate, nurture those relationships in an effort to secure a strategic fit. These include companies generally with $10 million to 35 million in sales. They must have strong customer relationships and good management teams that we can keep in place or if necessary we can augment with our experienced people. We are very excited to welcome BAMKO to Superior family and believe our combined strengths will differentiate us within the marketplace at the preferred one-stop shop for all local merchandise. We have the capacity and capability to grow our sales and profits. Our formidable balance sheet enables us to continue to drive shareholder value and long-term growth. We have incredibly dedicated teams across all divisions that work tirelessly to create value for our brands and for our customers' brands and you our shareholders as well. I want to give a shot out to our entire team many of whom are also shareholders and tell them thank you for your contribution, without you this kind of results cannot happen. With that, we would like to open the call for your questions.

We will now begin the question-and-answer session. [Operator Instructions] And our first question comes from Kevin Steinke with Barrington Research. Please go ahead.

I wondered if you could talk a little bit more about the cross-selling opportunities to your existing customer base that BAMKO creates and if the motivation for an acquisition like this and others is actually being driven somewhat by demand from your existing customer base for these products that is they like you're providing them already in terms of Uniforms, but they're coming to you and saying, okay it would be great if you could provide us with a broader product line in terms of promotional products et cetera?

Okay, two pieces to that. Kevin thanks for the question, it's a good question. Over the years we have seen the demand from our customers for promotional products and what has happened in the last 10 years is, promotional products companies of which are there many, there are 22,000 in the United States. Some of them is small as garage-type mom-and-pop operations all the way up to very-very large companies in this space. And what we find is that, these people have been going into our clients over the years and telling them that they could be there one-stop shop for rollover apparel. So that is the reason why we started the Blue Fusion a number of years ago to compete against that really as a defensive mechanism. But we didn't really have a way with Blue Fusion to differentiate ourselves as a supplier. We were the same people going to the same catalogs as everybody else, ordering merchandise. There is something very lacking in our ability to understand that business completely, but also to scale it up to the size that it needed to be where we could be taken seriously by some of the larger purchases of promotional products. I mean it's not a big secret that many of our customers buy promotional products, they buy them from the same people, or the same people buying them, are same people that we deal with at those organizations and often times, the promotional products purchased is as larger or even larger than the Uniform purchase. So it is not to be subordinated to other suppliers, we build this defensive strategy over the years, we have wanted to have a stronger platform to do it we have looked for companies to help us jumpstart that, because we believe to get…

Should we expect any significant integration costs or activities associated with BAMKO in the coming quarters or they just kind of hit the ground running and you don’t have to spend a lot on integration?

Yes. Kevin, there is on an expectation of significant integration cost at this point. Similar to what we did with HPI. We bought them to do, what they do. There will be some synergistic values between until we help each other out, but the bulk of your acquisition related expenses are behind us and you have a little bit of valuation work and so if I’ve got a little still ramp up in this coming quarter, but it will be small, there really shouldn’t being anything else.

Kevin, if you don’t mind I want follow-up to your question one more thought. A lot of those will occur to me probably when we get off the phone as well. But one of the constraints that BAMKO had with their customers is they say really didn’t have capital to tie up in inventory. And over the years, they had Uniform opportunities, but they required them to keep inventory in the shelf, and you know what kind of inventory we keep on the shelf as part of the contracts we have with our customers. They weren’t prepared to do that for their customers. Nor did they have the distribution capabilities, they had no warehouse. So they could 3PL it out it was expensive, they wouldn’t be competitive in any event third-partying out. But now they have our distribution capabilities and they have our capabilities from a financial standpoint to support whatever Uniform programs they are able to bring along. So there are a lot of synergies here, there is more to talk about we could probably say and pace doing it of why we bought this company. But I think the best part of it is, you’ve got some of those forward thinkers and strategic thinkers at BAMKO that I’ve ever had a chance to work with and I know we’re going to build that business to be a very, very substantial part of our business.

And it’s just lastly given the growth expectations you talked about for BAMKO. I guess that’s fairly that could accelerate your total organic growth rate a little bit. And just also wondering what it does for you from a profitability or margin perspective going forward?

Yes, Kevin, I mean it definitely will decelerate our organic growth as we go forward. We referenced a bit with the guidance as to whether we should change the organic growth and we finally decided to this year it made more sense to give our existing guidance on the business without BAMKO and tell you what they’re going to be doing. Did you remove that for the year, based on today’s model, we would expect that our overall organic growth rate will probably go from 8 to 8.5 or thereabout maybe a little more we expect that to be in excess of that number I mean that's kind of where we are at from a sales perspective. In regards to the operating margin as I think we had mentioned that whenever we were doing our presentation shortly after the acquisition. BAMKO is an organization that was staffed and built out to be much larger than the $31.5 million businesses they were and our expectation was that they would be marginally accretive to our earnings this year exclusive of the acquisition expenses. That is still our expectation and as they grow and start to leverage, we'll get beyond the acquisition related amortization and that structure that they already have and margins will improve on their business. In the short-term, their operating margin percentage will be lower than ours.

[Operator Instructions] At this time I am showing no further questions. I would like to turn the conference back to Michael Benstock for any closing remarks.

And I'll keep it real short. Andy and I appreciate your time today, appreciate your questions too. We will speak again in July. Have a great Q2.

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