Good afternoon, everyone. Welcome to Superior Uniform Group’s 2016 Fourth Quarter and Year End 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 management’s 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 period in 2015 unless otherwise noted. With that, I will turn the call over to Michael.

Thank you, Hala and good afternoon everyone. Thank you for joining us to review our fourth quarter and fiscal 2016 results. I will start with a few highlights for both periods and then provide commentary on market trends. Next, Andy will give you some background on our financial performance. After which, I will offer some general thoughts on the future. Then we will be happy to take your questions. We delivered strong fourth quarter performance with record earnings of solid finish to a year of diligently executing against our long-term strategic plan initiated in 2013. We extended our string of consecutive quarterly sales increases to 17 on a year-over-year basis, with revenues up 21.6%. Turning to segment performance, I want to point out that we realigned our reporting structure and segmented the promotional products business, which includes only BAMKO sales. Andy will discuss this further in his remarks. Uniforms and related products performed exceptionally well, up 6.5% in the quarter despite typical seasonality as customers are generally focused on their own holiday related sales during that period rather than uniform purchasing. As our non-uniform business expands, we do expect these seasonality trends to even out as evidenced by BAMKO’s solid contribution. The team at BAMKO delivered strong results and finished the quarter with just under $8 million in sales. Our employee ID business contributed nicely, while working through a warehouse system implementation of HBI direct. This pushed a small number of shipments into January, but that is now behind us and system performance is improving daily. We also delivered on the bottom line, with net income up 31.8% for record fourth quarter earnings of $4.4 million or $0.30 per diluted share. Of note, earnings were positively impacted by the early adoption of an accounting standard related to stock-based compensation. Andy…

Thank you, Michael and good afternoon everyone. Let’s begin with our fourth quarter income statement. Net sales increased 21.6% to $64.7 million, once again all areas of our business showed improvements. Our uniforms and related product segment contributed 6.1% of the sales gain. Remote staffing solutions accounted for 0.5% and as Michael mentioned we have now broken out the BAMKO acquisition to its own segment promotional products. During the quarter it contributed 15% of the sales gain. It’s worth noting that there are still are few pieces of existing promotional products business that are being reported as part of our uniform segment. Over time we will be shifting these relationships into sales opportunities to BAMKO and into the promotional products segment. Now, let’s see how each of these three businesses have performed compared with 2015 fourth quarter. Uniforms and related products segment sales rose 6.5%. All of this was from organic growth which reflected our continued success in penetrating the market as well as higher employee turnover. In remote staffing solutions sales to outside customers grew 8.7% for the three months. We continue to reap the benefits of our successful efforts to expand our business with existing customers instead of new ones. As you know we acquired BAMKO last March, so there are no comparisons to the promotional products segment until next quarter. Cost of goods sold grew 20.7% to $42.6 million. As a percent of sales this decreased to 65.9% from 66.4% for last year’s fourth quarter. As a result gross margin was 34.1% or $22.1 million for the quarter. This compares favorably with the gross margin of 33.6% or $17.9 million a year ago. Because gross margin can fluctuate based upon customer mix, we believe looking at operating margins offers a better measure of our overall profitability. SG&A…

Thanks Andy. As we enter 2017, I am feeling encouraged by the employment trends and our customers optimism and have aligned ourselves accordingly. However, there is some uncertainty around minimum wage, order adjustment taxes, healthcare reform and corporate tax rates. If favorable changes in corporate tax rates are enacted will so ease uncertainly around investments for the future and as wages continue to rise this could create another good surge and grow. In addition, we are well positioned in the healthcare market. In the most unlikely scenario of the affordable care act is repealed and not replaced there is still enough demand for healthcare from an aging population to keep this market robust for a long time. And while there has been scrutiny in companies that are moving manufacturing offshore are not much focused in places on those that provide services from other countries as we do with the Office Gurus, if there was some type of import border adjustment taxes levied on our products being manufactured overseas then it will also affect our competition [indiscernible 0315] getting in front some very hefty price increases to our customers. Understand though that our thought leadership is saying that non-luxury clothing is likely one of the last things that is going to come under scrutiny as the obvious implications of Superior negatively affecting middle-class America is not what any administration want to do with. In summary, during 2016 we executed on our multi-level growth strategy. We remain flexible and nimble, as a result we now have a diversified business model that complements our core offering and provides the platform for sustained growth. Our next 3 years strategic growth outlook takes us into 2020. We approach our business with an eye towards prudent reinvestment in our business should drive organic growth. Diversification of…

[Operator Instructions] Our first question is from Kevin Steinke of Barrington Research.

Good afternoon. I think I will start off by asking about the one positive change you made to your long-term guidance by increasing the annual revenue growth outlook for remote staffing. So, is that just being enabled by the launch of the El Salvador facility and also I think you have talked about in the past maybe just putting a little bit more internal sales effort behind that business?

Yes. Thanks, Kevin and good afternoon. You are right, without having the capacity we couldn’t add it, but without having sales, there would be no point. We believe our sales efforts are paying off. I can tell you that the business is going very well and there being no limitation now in terms of space and the management now have to constantly try to figure out kind of how shift people around to create still a great environment, but a tighter environment is really welcoming. So I have actually had a couple of businesses down there in the last few months, spent time with our sales group. We have made strategic planning there as well planning the next gross spreads and all is good and it’s really for both of those really.

Okay, good. And so the revenue growth outlook remains strong as you outlined over the next few years. And talking about 2017 specifically, I know you don’t give specific guidance, but there would seem to be some factors that would point to or argue for operating margin expansion in 2017, perhaps leveraging the Haiti investment, BAMKO margins perhaps improving, leveraging the El Salvador investment, etcetera. So, I mean is that just from a high level perspective the right way to think about 2017 in terms of margins and the impact that that can have on earnings growth in conjunction with the solid top line growth?

Yes, Kevin. I think that’s exactly right. I mean, as you know we don’t give specific guidance on it, but that framework is I would be very comfortable with that.

Okay, prefect. And specifically on one line item that the selling and administrative expenses came down almost $1 million sequentially, is that just some normal seasonality or is that also a function of some – maybe some of the cost streamlining efforts you have been doing?

There may be a little bit of a just normal with this time of year. I mean we do have some variability in it. But as we talked at the end of the third quarter, we had done some streamlining on the direct healthcare effort. And I think we had mentioned at that point, we thought that was the net savings of all of those things where we have done was about $1 million a year. So that would be probably a quarter of the number that you are talking about. We did see healthcare which medical claims which we had been talking about for several quarters, for three quarter of the year is really kind of being higher than normal. They have normalized a bit in the quarter. So some of them were just timing is that helping to have them. But we are definitely making progress in that area. We also – we made some streamlining efforts at BAMKO as well as we looked at where they are headed and trying to just make sure we are all headed in the right direction at the right levels.

Okay, good. And then can you just talk about obviously it sounds like you are encouraged by BAMKO’s outlook, but just overall it’s the pipeline you are seeing there, especially now that you are almost a year into owning the business, how is the pipeline building in terms of both new opportunities and also cross-selling opportunities with your uniform customers?

Good question. So I think I mentioned this in the prior call and I certainly have not been shy about talking about when we acquired a company. And the first thing we try to do is understand that before we start making any wholesale changes in the business the first five months or six months we really spent observing, visiting all of their locations, spending time with them and their customers to understand them better what made them so successful. And so since then in the last four months or five months, I think we have capitalized already on some cross-selling opportunities I can tell you that some of the opportunities have been pretty good size. Their pipeline is strong. It’s still a little bit choppy at their $28 million of orders until they bolt-on some acquisitions themselves. They are going to see that kind of choppiness especially the side of the business that they are so prominent on, on the customized branded merchandise side just trying to get larger orders that can really push a quarter one way or another or push a month one way or another. But I monitor the pipeline weekly. I have discussions with their President, Phil Koosed every single week about their pipeline. And there is more opportunities than I have ever seen in it and it is a function of how many opportunities you are working on there, working on larger opportunities than they have ever worked on before only because they now have to wear with all from our financial power to take on some of those larger opportunities. And they are very positive I mean their sales force is very, very engaged everywhere and so I think we will – that will be a growing division organically. And of course I think on the previous conference call once I said we are very aggressive when somebody called me out for that and said what does very aggressive mean when it comes to acquisition [indiscernible] perhaps always just buried. We are very aggressive when it comes to that goes to acquisition pipeline, we are talking to lot of folks. We did a lot of homework before we bought BAMKO and we have a lot of data on lot of companies and fortunately that’s helped to accelerate things a little bit where we are in conversations probably sooner than we might have been waited until we bought BAMKO. They are a great team. They don’t have to reach out to people and begin the conversation with then and Andy and I jump in as needed, but we still are firm in our result to close one or two bolt-on acquisitions a year.

Okay great. And just trying to get a little bit more inside into the new customers sales process for BAMKO, when they are competing for new customers, how competitive is that process, how does BAMKO distinguish itself and then once they land a new customer, what’s the likelihood that they get the next order from their customer I mean those trying to be sticky relationships or you sometimes tie up customers with exclusive agreements?

Okay. Let’s start with the first part of the question, it’s a very competitive business. There is 22,000 companies out there and it seems that everybody knows somebody who works for promotional products company. So they don’t always know us when we walk in the door and say no somebody from one of our 22,000 competitors. What distinguishes us when we walk in the door is our – first of all, our ability to design customize products. A large portion of BAMKO’s business is not off the shelf standard promotional products from an ad specialty suppliers, some with catalogues, somewhere in this country. They do some of that and they do some filling work for customers that kind of work, but the real forte is being able to sit down with marketing departments, ad agencies, PR agencies for a client and talk about the customer’s brand and development side products that are more branded merchandize and more meet that customer’s requirement on unique products that can be that the customers can use in whatever way they plan on using them. That is definitely something that distinguishes them and when you start differentiating who you are by the fact that you have products that nobody else has then you are in a different environment from a competitive environment, because everybody is trying to catch up to you. You are not simply in a price point how much for this mug, how much for this cup. And while we do some mugs and cups that’s not the preponderance of our business, likely if the customer stays with you, we do some RFPs that want to do multilayer business. We have some business relationships going back many, many years, some of them are exclusive, some of them are preferred, some of them are simply hunting licenses. You are not sticking with uniform business. The uniform business tends to have multi-layer contracts exclusivity. There is big cost of change when customer decides to go with one of your competitors it’s going to buy out inventory and so on and all kind of computer and hook up – hooking up through their purchasing systems and so on to punch out. There is a lot involved website development. In this case there is a little bit of less cost for change in this business, but there are still relationships out there that we have to break on barriers. And it’s a business you have got to call, you have got a call and you have got to show up, you have got a network and these guys are very good at it. They have got a nice business, its growing double digits from many years and they know to do it. And they have modulated their growth to a certain standpoint over the years, because they knew that they didn’t have the capital to grow it faster and now they do and we will see what we can do.

Okay, that’s great color. Just a couple of more questions for me, again I know you don’t give any specific guidance, but as you are a couple of months almost into this first quarter here, are there any larger uniform program roll outs you see coming through this quarter or how does the promotional products order pipeline look in terms of what might form the first quarter, just trying to get a sense for how the first quarter first half of the year might roll out based on order timing or rollout timing?

I am going to let Andy give you the standard answer to that question, go ahead Andy.

We are really not going to give down the specifics on an individual quarter. There is really not anything that we are going to highlight on and then the things are going to come with the times that they do, but I mean, we are really – we are focused on the long-term where we are building our opportunities. We have got a great opportunities going on. And I mean, our current backlog is in the 10-K, but that’s not necessarily with from what we breakout the promotional products side of that, it’s not necessarily the build to ship in the next quarter. It’s over the next quarter or two, but I mean, those numbers are in there. I mean, that’s as much as we are going to give.

Fair enough. Just couple of last housekeeping items here. So, the change in accounting for share-based compensation is that just a benefit to 2016 or does any of that continue into 2017? And then just maybe a little more color if you can, just I think you talked about a $0.02 benefit from a client settlement?

Yes. First on the stock compensation exit of tax benefit that will be a ongoing benefit. It all depends as long as you have a nice run up on the stock and you have got options being exercised and gains that generate tax benefits that will be ongoing. Will it be at the same 880,000 that this year is that really depends on the stock price and what our employees do on their options in a particular year, but it will be an ongoing treatment, that’s not a cumulative effect adjustment, that was all related to the specific transactions that happened in 2016. On the second item, it was not – go into specifics, it was not a customer settlement, it was tied to some external influences over a number of years and we are really not in a position to name who is related to, but it was not a major amount.

Okay, great. Well, good performance and thanks for taking my questions.

Alright. Thank you, Kevin.

The next question is from Chris Reynolds at Neuberger Berman.

Good afternoon, gentlemen.

Hey, Chris. Good afternoon.

Yes, I have a general question about the CAFTA Treaty and we hear a lot about NAFTA being repealed or modified, but not much about CAFTA and if that went hand in hand with repeal or modification of NAFTA and put restrictions on assembly of apparel in the Caribbean Basin, would that have a material impact? I think that it probably would and I just haven’t heard many people talk about CAFTA like they have the NAFTA Treaty. And I know it’s impossible to give a precise answer, but I want to see if it’s been something that’s been discussed that perhaps we haven’t heard about?

Yes, I was waiting for this question. There we go. We don’t make hardly anything under NAFTA. So, let’s put that aside. CAFTA, we do have our presence in Central America. It’s not what it was once. It was once much larger. It was once I believe was high as 70% of all our manufacturing with what’s going under cash. We do manufacture in Haiti and Haiti has its own treatment that’s being given here by the U.S. non-treaty just that went allowance. It’s not a mutual agreed upon treaty. What you are talking about though is CAFTA is a treaty and I believe that if the treaty is going to be taken off the table, that it has to be agreed to by Congress, but personally I must first say how I feel personally, I don’t think it’s going to happen, I think it’s a negotiating ploy on the part of the administration. You will say would it impact us? Sure, it was. Would it impact a lot of my competitors? Absolutely. Are we trying to plan around that in the unlikely event that would happen with no notice? Yes. Are we – will we come out the back end of that as strong as we went in? We usually do. And that’s really all I can say about it. It is something we are discussing constantly and what our Plan A and B and C are and what the timing of all this might be? Should it happen we will be as ready as it can possibly be.

Right. You will be impacted like other participants and I think it’s impossible to say, but thank you for the terrific work and the excellent operating results.

Thanks. I will follow-up with a follow-up answer to that too. If you close all the factories in Mexico and Central America that are making apparel for the U.S., you are going to force millions of people to try to come across our borders legally to get jobs, will be no jobs for them there. And when that happens, you are only going to exacerbate a really bad and great situation that we have already. So, I really doubt that at the end of the day that all that we have been promised is going to happen.

Okay, well thank you.

[Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Benstock for closing remarks.

Thank you very much. Andy and I always appreciate your interest in our company and the time you take to be on these calls. We look forward to providing an update for our progress with first quarter in April and enjoy the rest of your winter.

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