Good afternoon everyone. Welcome to the Superior Uniform Group’s 2015 First Quarter Earnings Conference Call. With us today are Michael Benstock, the Company’s Chief Executive Officer and Andy Demott, Chief Financial Officer. After the speakers’ opening remarks, there will be a question-and-answer period. [Operator Instructions] This call is being recorded [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, Amy. This conference call will 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 the news release that was published this morning 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 elsewhere. 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’ll turn the call over to Michael.

Thank you Hala and good afternoon everyone. We appreciate you joining us to discuss our first quarter 2015 performance. I’ll start with some financial highlights and review the positive impact from our continued execution of our growth strategies. Then I will offer some comments on general industry trends. After this Andy will give you some additional back ground on our financial results for the latest three months. Next I will return with a general outlook for the second quarter and year. Then we will both be happy to answer your questions, if I have a voice left when that happens. So, bear with me. Let’s begin with the quarterly highlights. We had an outstanding start to 2015 with first quarter revenues up 13% to $46.3 million from $41 million reported last year. Net earnings increased by 67.7% and diluted earnings per share rose 55.6% on 7.3% more shares. Our Uniform and Remote Staffing segments both contributed nicely to our stellar performance as we increased our market penetration and leveraged our fixed cost structure on much higher volumes. Let’s break out the performance in our two segments. Uniform related products, which includes Fashion Seal Healthcare, HPI Direct, and Superior ID brands saw our revenues increase 11.9% from last year’s first quarter. This resulted in part from strong sales to existing clients. In fact, 41 of our top 50 customers bought more from us this quarter then a year ago. We also attracted a number of new clients. As part of this we are making good progress building new relationships to our recently awarded GPO contract, which opens up more than 30,000 health care facilities as potential customers. During the quarter, we did additional training and added to our sales team to effectively engage in these opportunities of note. Some of our…

Thank you, Michael, and good afternoon everyone. I’d like to give you some perspective on key financial indicators for the first quarter and let’s begin with the income statement. First quarter net sales increased 13% to $46.3 million all from organic growth. Uniforms and related products contributed 11.3% of the overall sales increase, with Remote Staffing solutions adding the remaining 1.7%. Our Uniforms and related product sales were up 11.9% from last year’s three months, clearly execution of our growth strategies allowed us to leverage the continued positive deployment trends Michael just mentioned. Remote Staffing solutions saw quarterly sales to outside customers rise 36.1% from a year ago. This reflects in growing business from current customers, as well as additional market penetration. Gross margin as a percentage of sales was down slightly to 34.1% from $15.8 million. For the 2014 quarter it was 34.3% or $14.1 million. As you know our gross margins fluctuate, primarily because some of our Uniform contracts had a higher service component and give us higher margin. Other contracts are low touch and these have lower gross margins, although they are typically just as profitable if not more profitable than higher growth margin customers. For this reason we believe looking at SG&A and operating margins offers a better measure of our overall progress. Income from operations climbed 71.6% to $3.2 million. That led to a significant increase in our operating margin to 7%, compared with 4.6% for last year’s first quarter. Cost of goods sold was relatively flat as a percentage of sales at 65.9% or $30.6 million that compares with 65.7% or nearly $27 million in 2014. This reflects our ability to spread overhead cost across the higher volume of sales offset by slightly higher direct product cost in the current year. SG&A was up…

Thanks, Andy. We delivered exceptional first quarter results despite this period historically being one of the lowest in our annual sales cycles as it also is the case with our fourth quarter. We generally see higher demand in the second and third quarters. I do want to point out for those of you who may not recall that during the second quarter of last year, we recorded about $7.5 million in revenue from two large program rollouts, while we have obviously reaped the benefits of continuing to serve this business on a regular day-to-day basis, we will not see that kind of volume in the second quarter of this year from those two accounts, as large program rollouts account occur less frequently, however, we are working hard to close the gap. Additionally, when we spoke last quarter, we indicated that gross margins were expected to be challenged during the first half of this year by several factors. These include some commodity pricing issues, higher direct product costs, as well as new contracts that require a much lower service level contributing to operating margins rather than gross margins. We believe this will smooth out in the second half. Overall, our top line guidance remains unchanged. To recap, we expect our uniform business will exceed its traditional organic growth rate of about 6% per year, our remote staffing operation should continue to see annual increases to sales in the $2.5 million to $3 million range and we expect to more than double staffing across our locations in the next 3 to 5 years. Acquisitions and new product launch could improve this outlook; however, certain situations such as unanticipated customers demands and changes in employment levels and turnover rates could also change our outlook. For the company as a whole, we anticipate average annual organic growth of more than 8% over the next 3 to 5 years, that’s an average, which means some years will likely be higher than ours. In 2015, Fashion Seal Healthcare uniform offerings will be enhanced by the release of our new stock lab coat catalog and later in the year by an expanded line of our simply socks scrub apparel. We also are upgrading our marketing and social media efforts to the healthcare market. To that end, we just launched a new website for our Fashion Seal Healthcare. I’m particularly proud of this because the site was entirely designed and programmed in collaboration with PowerTree Web, our web development subsidiary based in Costa Rica. The new website offers an interactive experience packed for value-added features and tools for uniform decision makers and end-users. This will also allow us over time to migrate from traditional print catalogs to e-catalogs. I invite you to experience the site for yourselves by going to fashionsealhealthcare.com. With that, let’s open the call for question and answers.

Thank you. [Operator Instructions] Our first question comes from Jim Gentrup at Val Vista Capital Management.

Good afternoon, gentlemen. How are you?

Good, Jim. How are you?

Good, good. Just wanted to ask you about the – very quickly about the GPO contract that you alluded to, and I know you talked a little bit about – I didn’t catch all that, so I guess – just I know it’s in the early stages, but do you expect some revenue bump this year yet or can you just talk about the timing in that a little bit?

Sure, we were rewarded the contract on February 1 and that gives all – everybody had - there is a sign-up process before we can do business with people and it is basically them reaching out to us and saying they have a need for our products. We induct them into our systems and now they become an active lead for us and we start making calls and so that process has gone very, very well. Lot of systems had to be set up around that to handle that and to understand exactly how that is done. We’ve had appointments, we will continue to have appointments, it will result in some revenue this year. I don’t believe it is going to be material revenue this year. It will be on an ever increasing basis more and more material. Over the next five years and it is a five year contract and there is a certain understanding here that you don’t derive tremendous benefits from this in the very first year of this, but we are seeing a lot of activity, our entire sales force is engaged in calling on the hospitals and all the healthcare institutions that are part of the premier network and we are making pretty good strides.

And there wasn’t much overlap, I mean, I think you said something about doing, you have been doing some business with some of the hospitals in that group already or…?

Yes we have been doing business with many of the hospitals in that group already, I mean, not all 3000, literally a handful of them by comparison, but we were relevant enough that from a value proposition and product standpoint that premier thought [ph] to invite us to bid this year and then awarded us the opportunity to now calling all 3000 hospitals. So they felt we are relevant and their shareholders who are the largest member hospitals within their system, felt that we were relevant. So, we are feeling very, very good about the opportunity but it does take time to build up sales. They don’t have from one day to next. Lot of these people are in a system already or in products already, they are not our products necessarily and it takes time to convert those products over. They may have agreements with respect to those products right now. So as those agreements fall off, we expect to be in place to be able to serve with those people.

It would be interesting to know, I don’t know if you can answer on this call but as we got the incremental opportunity that’s there if you now have I am not sure exactly what value of your average customer is, but it would be interesting to find out for you guys sometime maybe today but just how much incremental market opportunity you guys are now exposed to [indiscernible] just for investors sake?

Yes, as you know, as far as giving guidance, we don’t give guidance as far as disclosing. The average value of a customer, we typically don’t disclose that as well. But for the acquisition cost for that customer, all the things I know you would like to have, we don’t normally disclose that and there is a certain unknown element to this. This is our first GPO contract. I don’t believe it’s going to be our last. I am fairly confident in that, but we will have others as time goes on which will just broaden our appeal and our ability to call more healthcare institutions. Our goal is ultimately to be able to have our products favored in some preferential basis in every healthcare institution in America and to get our fair share of that business is not we ever be without any competition, but we believe that we will reap our fair share of that business.

Also Jim, as we get more confident in dealing with the information around the GPOs and what the real opportunity when we are comfortable that we’ll consider putting that out to the investing public in the future, but we are not there at this point.

Yes. Actually I just I kind of meant just okay, we think this could be $100 million incremental opportunity, felt something like that or – that’s all what I was referring to, not to get too specific. Just on the promotional products business, you already have a portion of your revenue I am not sure how much it is, but coming from the promotional products and I just was kind of curious as to the same thing, what holistically or what - or even if you go up by the opportunity I know it’s a big business but you’re already doing business with all of these customers so it’s kind of an upsell I take it or maybe I need to be corrected. And so I just wanted to get a little more detail on that area as well.

Yes, there is an upsell opportunity there with our existing customers. The $2.5 million opportunity that we had in the last year second quarter that Michael referred to earlier as part of that $7.5 million was an up sell of promotional products to an existing uniform customer. We are looking to capitalize on that in the future, but by the same token we also use the promotional products, the branded product side of it, when our uniform contract maybe a period of time before it’s going to come due and we can’t get in that door, we will try to go in through the promotional products door as well and then turn that into a uniform opportunity.

Okay. And then last year you had a weak Q1 because of weather and things like that, didn’t sound like it was as bad this year or maybe I should ask that open ended, was there some similar challenges as Q1 last year or?

No, Jim, the real problem for the country as a whole which sometimes affect our customers as well both first quarters were not very good weather. There was harsh weather in the north. What really impacted us last year was we were hit directly at our shipping locations the last several days of the quarter and we missed out a day and a half, two days of shipping which is what – they had some impact on last year. And this year, our impact really had to do with factories in the United States that we are merchandize for some of our customers who require U.S. made merchandize were shutdown a number of times because of weather in the Carolinas and Mississippi and Arkansas and Tennessee.

Yes. Maybe I realized the port strikes sounds like it had some impact as well in Q1 too. Can you quantify that or not?

I think yes for sure it did. We had a slow down to some extent but – our logistics group just was brilliant. We got ahead of it and move things around to other ports that were less effective. They were really on top of it very early on. It did not take us by surprise. Even other ports were affected because we weren’t the only ones routing things to other ports. So other ports got behind as well. I think the ports right now even though the slowdown is supposed to be over, we are still thinking out from the mess that was created from the long beach situation, but it hasn’t impacted us that greatly revenue because of our redundant strategies.

Thank you. I’ll let somebody else jump in.

Thanks, Jim.

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

Thank you, Amy. I would like to leave you with these final thoughts. The first quarter showed the power of Superior Uniform’s growth strategies in both the uniform and remote staffing businesses. The combination of our volume purchasing power redundant global sourcing and manufacturing capabilities allowed us to cost effectively manage our business despite some market disruptions. And the cost controls we have in place throughout our operation mean that we continue to increase the bottom line faster than revenues even while continuing to invest in future growth. We are excited about the rest of this year, we remain steadfast in our efforts to strengthen the companies and their price value, and create a long term value for our shareholders. Andy and I appreciate your time today and our investor’s confidence in our company. We look forward to sharing our second quarter and first half results with you in July. In the meantime, we hope you have enjoyable spring.

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