Good afternoon, everyone. Welcome to the Superior Uniform Group’s 2016 Third 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. 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 this 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 these 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 good afternoon everyone. We are glad that you could join us for our third quarter earnings update. I want to start with key highlights for the latest period and provide commentary on market trends. Andy will follow up by giving you more color on the story behind our numbers and then I'll conclude with an update on our business outlook for the remainder of the year. Of course we will then be happy to take your questions. We reported record sales for the third quarter. This represented our 16th quarter of increasing year-over-year net sales with revenue up 15.2%, BAMKO contributed 11% of this improvement with the rest of the Uniform’s related products segment adding 3.4%. Our most staffing solutions in the office grows added a little less than 1% of the increase. Operationally speaking the third quarter was a period of great progress for us and met our internal targets. I would like to point out that historically our third quarter is one of our highest revenue generating periods, as our customers are generally preparing to higher temporarily labor in preparation for the upcoming holiday season. However, as we continue to diversify and grown to non-uniform areas, we expect that our seasonality trends will be offset and will result in an evening out of our quarterly results overtime. Also as BAMKO sales expand will see less lumpiness in their business which in turn lessons the impact of large orders that may hit one quarter and not repeat the following quarter. We saw this in the first quarter and second quarters with two large orders for BAMKO. One was for back packs for World Youth Day, organized by Pope Francis in Krakow, Poland and another which for Bobble Heads of the mascots for the Summer Olympics…

Thank you Michael, and good afternoon everyone. I’ll begin with the important highlights from our quarterly income statement for three month period ended September 30, 2016. Net sales increased 15.2% to nearly $65.3 million. All areas of our business contributed to this. The BAMKO acquisition accounted for 11% of the gain. Our uniforms and related products segment including BAMKO contributed 3.4% and remote staffing solution added almost 1%. For uniforms and related products, sales rose 15.3% above last year third quarter. Then BAMKO contributed 11.6% of the increase, the rest came from organic growth as we successfully increased our penetration as a market and from generally higher, volunteer employee turnover. In our most staffing solutions sales outside customer grew 13.9% for the three months this continued to reflect our ability to increase business for the existing customer while attracting news ones is well. Cost of goods sold expanded 12.6% to 42.1% however the percentage of sales decreased to 64.6% from 66.1% for last year’s third quarter. For Uniforms cost to goods sold is percentage of net sales worth 65.5%, a reduction from last year of 67.1%. The primary reason for this was the direct product costs were down as a percentage of net sale as a result of previous investments that we made to improve our product quality [ph]. For remote staffing cost of good sale as a present of net sales was 46.7%, just slightly above the 46.1% from last year. Gross margin was 35.4% versus 33.9% a year ago. This fluctuates based on the level of service requirements along with changes in our customer mix to I would believe in most a consistent measure of our overall profitability is reflect in our operating margins. SG&A expenses grew 25.5% in the third quarter to nearly $17 million. As the…

Thanks Andy. Before I close and then will take some question, I'd like to comment on the announcement earlier this month that Superior was included in fortune magazine's top 100 fastest growing companies for 2016. We came in at an impressive number 24. The list ranks public companies based on revenue on earnings per share growth rates, as well as total return for the three years ended on June 30, 2016. We are honored to be included in such a prestigious listing of successful companies and feel it is further validation of how we successfully executed our strategic plan. The focus on the growth of the extended Superior can be tracked back to effectively executing on the strong organic growth strategy augmented by a disciplined acquisition focus that was put in place in 2013. We’re now looking ahead to the next three to five years in developing a blue print for success based on the same approach that made the last one so effected. Being conservative in our assumption and aggressive in our execution. We expect to finish the year to with the solid fourth quarter and that our results will be inclined with our long term guidance as you might call, that includes companywide average organic sales to grow for more than 8% per year, before equaling the result for BAMKO. Sale increases in our uniform business should average in excess of 6% per year, and we believe BAMKO can generate annual organic growth to more the 15% based on its current operations. Any acquisitions we make will take us above and beyond this. We also plan to see to $2.5 million to $3 million of yearly sales increases for the Office Gurus. With that as background now Andy and I will be happy to take your questions.

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

I wanted to start off by asking about, you referenced that you has number of uniform program rollout schedule for the fourth quarter. I’m wondering if you could comment on yield of mix of the customer mix of those rollouts, are those all new customers or are those may be some existing customers rollouts, may be uniform refresh or something like that as well?

Kevin thanks for the question. It’s really a combination. There is new customer rollout in that, but there is a refresh as well and then just a rollout to stores that have been recently acquired by one of our customers. So it’s a whole combination between HPI Direct and Superior I.D. of just some fortuitous timing, coming at the end of the year. I always prefer those things happening in the middle of year, you get it behind and then you get clear sailing the rest of the year, but these are coming right at the tail end of this year.

Okay well that’s good to hear and obviously you talked about a solid expected fourth quarter, obviously helped by those rollouts, but I was also wondering. If you have any visibility into how the BAMKO might perform in the fourth quarter?

We believe there is also going to be solid as well.

Okay yes, so suppose we should expect -- kind of a -- somewhat of a sequential increase from the 6.2 million you did in the third quarter?

You could make your assumptions Kevin, that’s not totally outlandish.

Okay, fair enough. So I know you are causing us to not focus too much on gross margin because it can fluctuate based on just the mix of contracts. Although you also did call out the benefit from you product sourcing efforts so I thought the gross margin was particularly strong so I guess the first question is did that benefit at all from contract mix in the quarter and then how sustainable are those benefits from product sourcing that you realized in the quarter.

I would say this particular quarter there was no real change in the mix and that improvement truly was tied to improvement and sourcing that we have done, the mix was comparably year-over-year. We have made some very good progress in that area in finding some new sources to fill in some areas. And at this point -- and obviously we can't go out two quarters in future as to what the markets going to do, but we feel like those are sustainable at this point.

And there is probably still some room there.

Okay that’s good to hear. And then I guess on the SG&A expenses they were flat sequentially about $16.9 million, but you also talked about streamlining the expense base of all bit the healthcare sale effort as well as I think you referenced last quarter some cost reductions actions that you were looking to take. So I was just wondering how we should think about G&A expense levels going forward, they could come down a little bit from that 69 level or just how you are thinking about it over the next few quarters perhaps?

Most of the streamlining things that we talked about last quarter really went into place probably the very tail end of this quarter, so that really didn’t have a major impact on SG&A for the third quarter. I think if you looked at it on a company wide basis along with some other things that are going on and we would probably pulled out in excess of a million dollars of cost on an annualized basis. And from there it will vary based on what happens with our new business.

And then again going back to healthcare. So you talked about how you spend some time figuring out which channels in healthcare are the best fit for you. So just wondering after that analysis where you are ending up in terms of what piece of the market that you really want to focus on going forward?

I want to be clear that our focus is still on the entire direct channel, we haven’t looked at any particular piece and said that’s business we want to do. There are certain conditions under which we want to do it, when dealing with a particular integrated delivery network requires so high level of services and we can't get the price that we need to get in order to give that services, then we are going to back off those opportunities. But there are still planning at integrated delivery network, some that we’re doing business with right and very happy to be doing business with. And others that are in our pipeline that we will do business with our approach from the sales standpoint for the first couple of years was somewhat redundant, but purposeful in that we had a bottom up approach into the hospitals and we had a top down approach going after the administration of at the IBM from the top down and from each individual hospital department of the group of hospital that might be part of the IBM from the bottom up. And we streamlined that, we found where the sweet spot is, we found were -- how we can get into most of those institutions without having to have a redundant strategy and we backed up the redundancy. And we believe that ultimately that will produce as good a results as we before have before, at a much lower cost in addition. We realize what marketing techniques work and what don’t at this point, we have fourth years a date in that to study. When we started we had nothing. Only what we had been able to put together from the Ernst & Young study. Most of those assumptions were pretty bang on, but obviously some needed to be tested. We’re still going at to medical colleges, we’re still have to go on after home help in long term care and we will be successful in those channels as well.

Alright that’s helpful, so you talked about the acquisition pipeline on the promotional products side and the list of candidates you identified. Is it so the plan to start being more aggressive on the acquisition front and promote products in 2017?

I laughed [ph] because in different conference call’s we’ve used different terminology. So when we said we’re actively perusing, people say they’re active, does that mean you’re aggressive, well it means we’re as active as we can be. And one year -- one quarter we came out and said we’re aggressively and everybody got excites. Now you’re aggressive. We’re being quite aggressive on the acquisition front, on the promo product side. We’re being as aggressive as we can on the uniform side. As aggressive as those who ultimately want to purchase allow us to be, without being obnoxious because we know who they are and they know who we are. There is a lot of companies to bet out on the promo side and we have become that process of talking to the principals of those businesses. At the very least even if there is no interest in selling we’re learning a lot more about the companies that are that size and what might be a better fit for us along the way during the -- probably a deeper analysis in our own business as we did with Superior years ago, to see where do we make money, what’s the best fit for us of companies that we could possibly buy. So we’re actively engage in that. The folks of BAMKO are very capable of really leading that effort, with Andy and I supporting it as well as other members of our organization, but we’re very exciting about where that will lead us for next year. And I can’t say when next year that will happen. I wish I had that kind of crystal ball, but it will happen.

Okay fair enough. I was just coming at the question more from the stand point of it, you’ve talked about letting BAMKO settle in for about a year and then looking to do acquisitions in 2017. So that makes a lot of sense. Okay I guess I’ll just throw one last one in there in terms of the Haiti manufacturing facility and how that’s ramping up, if it’s ramping kind of in line with your expectations. I think you’ve talked about break even by the end of 2016 I believe?

We mentioned that, we already break even, we’re low --.

Okay missed it sorry, got it.

We're ahead of schedule, the factory is doing great the people we have working for us at all levels from sewing machines operator, to cutter, to manager are about as motivated as any group I’ve ever seen. To succeed a job in Haiti is something that's very important to these people and they take it very seriously and so far we've done great, well-engineered factory, nice clean great environment for these people to really be a lift to their life as they continue to work for us.

Okay, well thanks for all the insight and thanks for taking my questions.

[Operator Instructions] Our next question comes from Ralph Marash of First Manhattan Co. Please go ahead.

Just one quick question. One of the major airlines recently announced they were changing their forum, and I was wondering if you guys were involved in bidding on that at all.

Yes, we were.

Okay.

And there is a very small piece of that we’ve not inked an agreement yet, but we hope to that in the near future. But as I said it's a very small piece of it.

Was that just the first certain type of workers and special uniform.

Yes, certain class of employees. Yes.

Okay, thanks a lot.

[Operator Instructions] I'm showing that we have no further questions at this time. This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Michael Benstock for any closing remarks.

I want to thank everybody for joining us and I appreciate the time you spent with us, your interest in your our company. Of course we are looking forward to speaking with you again in February, when we will report on the advances we’ve made in the fourth quarter and recap the year. Till them wish you an enjoyable holiday season.

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