Superior Group of Companies Reports Third Quarter 2023 Results
– Total Net Sales of $136.1 million versus $138.7 million in Prior Year Third Quarter –
– Net Income of $3.1 million versus net loss of ($12.7) million in Prior Year Third Quarter –
– Adjusted EBITDA of $9.3 million versus $9.7 million in Prior Year Third Quarter –
– Board of Directors Approves $0.14 Per Share Quarterly Dividend –
– Provides Updated Full-Year Outlook –
ST. PETERSBURG, Fla., Nov. 06, 2023 (GLOBE NEWSWIRE) — Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its third quarter 2023 results.
Third Quarter Results
For the third quarter ended September 30, 2023, net sales decreased 1.9% to $136.1 million, compared to third quarter 2022 net sales of $138.7 million. Pretax income was $3.3 million compared to a pretax loss of ($17.0) million in the third quarter of 2022. Net income was $3.1 million or $0.19 per diluted share compared to a net loss of ($12.7) million, or ($0.80) per diluted share for the third quarter of 2022.
In the prior year third quarter of 2022, the Company recognized pre-tax, non-cash impairment charges related to goodwill of $21.5 million ($17.1 million net of tax, or $1.07 per diluted share). On an adjusted basis, which excludes impairment charges made in the prior year third quarter, this quarter’s net income of $3.1 million or $0.19 per diluted share compares to $4.4 million or $0.27 per diluted share in the prior year. At the conclusion of this press release is a reconciliation of reported-to-adjusted results, including a description of the significant items.
“We delivered stronger sequential results that are consistent with our back-end weighted full-year outlook, while again producing positive free cash flow, further reducing debt, and strategically investing to capitalize on future demand,” said Michael Benstock, Chief Executive Officer. “Our strong customer retention reflects our sharp focus on customer service, and along with new customer wins in each segment underscores our potential to drive even stronger growth and profitability when economic uncertainty lifts. Our Board’s latest quarterly dividend approval reflects our shared confidence in the opportunities across all three of our attractive end markets, and our ability to further enhance shareholder value.”
Third Quarter 2023 Dividend
The Board of Directors declared a quarterly dividend of $0.14 per share, payable December 6, 2023 to shareholders of record as of November 22, 2023.
2023 Full-Year Outlook
For full-year 2023, the Company is updating its Outlook to include a sales forecast range of $538 million to $545 million compared to its earlier forecast of $550 million to $560 million, and an earnings per share forecast range of $0.46 to $0.53 compared to its earlier forecast of $0.45 to $0.55.
Webcast and Conference Call
The Company will host a webcast and conference call at 5:00 pm Eastern Time today. The live webcast and archived replay can be accessed in the investor relations section of the Company’s website at https://ir.superiorgroupofcompanies.com/Presentations. Interested individuals may also join the teleconference by dialing 1-844-861-5505 for U.S. dialers and 1-412-317-6586 for International dialers. The Canadian Toll-Free number is 1-866-605-3852. Please ask to be joined to the Superior Group of Companies call. A telephone replay of the teleconference will be available through November 20, 2023. To access the replay, dial 1-877-344-7529 in the United States or 1-412-317-0088 from international locations. Canadian dialers can access the replay at 855-669-9658. Please reference conference number 4364975 for replay access.
Disclosure Regarding Forward Looking Statements
Certain matters discussed in this Form 10-Q are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by use of the words “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “potential,” or “plan” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements in this Quarterly Report on Form 10-Q may include, without limitation: (1) projections of revenue, income, and other items relating to our financial position and results of operations, including short term and long term plans for cash, (2) statements of our plans, objectives, strategies, goals and intentions, (3) statements regarding the capabilities, capacities, market position and expected development of our business operations, (4) statements of expected industry and general economic trends and (5) the projected impact of the COVID-19 pandemic on our, our customers’, and our suppliers’ businesses.
Such forward-looking statements are subject to certain risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the following: the impact of competition; uncertainties related to supply disruptions, inflationary environment (including with respect to the cost of finished goods and raw materials and shipping costs), employment levels (including labor shortages) and general economic and political conditions in the areas of the world in which the Company operates or from which it sources its supplies or the areas of the United States of America (“U.S.” or “United States”) in which the Company’s customers are located; changes in the healthcare, retail, hotel, food service, transportation and other industries where uniforms and service apparel are worn; our ability to identify suitable acquisition targets, discover liabilities associated with such businesses during the diligence process, successfully integrate any acquired businesses, or successfully manage our expanding operations; the price and availability of cotton and other manufacturing materials; attracting and retaining senior management and key personnel; the effect of the Company’s material weakness in internal control over financial reporting; the Company’s ability to successfully remediate its material weakness in internal control over financial reporting and to maintain effective internal control over financial reporting; lingering effects of the COVID-19 pandemic, including existing and possible future variants, on the United States and global markets, our business, operations, customers, suppliers and employees, including the length and scope of restrictions imposed by various governments and organizations and the continuing success of efforts to deliver effective vaccines and boosters, among other factors; and other factors described in the Company’s filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section herein and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.
About Superior Group of Companies, Inc. (SGC):
Established in 1920, Superior Group of Companies is comprised of three attractive business segments each serving large, fragmented and growing addressable markets. Across Healthcare Apparel, Branded Products and Contact Centers, each segment enables businesses to create extraordinary brand engagement experiences for their customers and employees. SGC’s commitment to service, quality, advanced technology, and omnichannel commerce provides unparalleled competitive advantages. We are committed to enhancing shareholder value by continuing to pursue a combination of organic growth and strategic acquisitions. For more information, visit www.superiorgroupofcompanies.com.
Investor Relations Contact:
Investors@superiorgroupofcompanies.com
Comparative figures are as follows:
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
| Three Months Ended September 30, | ||||||||
| 2023 | 2022 | |||||||
| Net sales | $ | 136,126 | $ | 138,703 | ||||
| Costs and expenses: | ||||||||
| Cost of goods sold | 82,928 | 88,066 | ||||||
| Selling and administrative expenses | 47,246 | 43,815 | ||||||
| Goodwill impairment charge | – | 21,460 | ||||||
| Other periodic pension costs | 214 | 528 | ||||||
| Interest expense | 2,464 | 1,794 | ||||||
| 132,852 | 155,663 | |||||||
| Income (loss) before income tax expense | 3,274 | (16,960 | ) | |||||
| Income tax expense (benefit) | 160 | (4,241 | ) | |||||
| Net income (loss) | $ | 3,114 | $ | (12,719 | ) | |||
| Net income (loss) per share: | ||||||||
| Basic | $ | 0.19 | $ | (0.80 | ) | |||
| Diluted | $ | 0.19 | $ | (0.80 | ) | |||
| Weighted average shares outstanding during the period: | ||||||||
| Basic | 15,992,792 | 15,806,852 | ||||||
| Diluted | 16,155,355 | 15,806,852 | ||||||
| Cash dividends per common share | $ | 0.14 | $ | 0.14 | ||||
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
| Nine Months Ended September 30, | ||||||||
| 2023 | 2022 | |||||||
| Net sales | $ | 396,061 | $ | 430,218 | ||||
| Costs and expenses: | ||||||||
| Cost of goods sold | 248,159 | 281,667 | ||||||
| Selling and administrative expenses | 134,007 | 131,998 | ||||||
| Goodwill impairment charge | – | 45,918 | ||||||
| Intangible assets impairment charge | – | 5,581 | ||||||
| Other periodic pension costs | 642 | 1,584 | ||||||
| Interest expense | 7,658 | 2,676 | ||||||
| 390,466 | 469,424 | |||||||
| Income (loss) before income tax expense | 5,595 | (39,206 | ) | |||||
| Income tax expense (benefit) | 380 | (5,042 | ) | |||||
| Net income (loss) | $ | 5,215 | $ | (34,164 | ) | |||
| Net income (loss) per share: | ||||||||
| Basic | $ | 0.33 | $ | (2.17 | ) | |||
| Diluted | $ | 0.32 | $ | (2.17 | ) | |||
| Weighted average shares outstanding during the period: | ||||||||
| Basic | 15,954,264 | 15,739,381 | ||||||
| Diluted | 16,132,832 | 15,739,381 | ||||||
| Cash dividends per common share | $ | 0.42 | $ | 0.40 | ||||
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value data)
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 17,729 | $ | 17,722 | ||||
| Accounts receivable, less allowance for doubtful accounts of $5,267 and $7,622, respectively | 98,289 | 104,813 | ||||||
| Accounts receivable – other | 86 | 3,326 | ||||||
| Inventories | 105,134 | 124,976 | ||||||
| Contract assets | 46,765 | 52,980 | ||||||
| Prepaid expenses and other current assets | 10,824 | 14,166 | ||||||
| Total current assets | 278,827 | 317,983 | ||||||
| Property, plant and equipment, net | 48,666 | 51,392 | ||||||
| Operating lease right-of-use assets | 18,806 | 9,113 | ||||||
| Deferred tax asset | 10,677 | 10,718 | ||||||
| Intangible assets, net | 52,098 | 55,753 | ||||||
| Other assets | 12,983 | 11,982 | ||||||
| Total assets | $ | 422,057 | $ | 456,941 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 45,168 | $ | 42,060 | ||||
| Other current liabilities | 37,433 | 38,646 | ||||||
| Current portion of long-term debt | 4,219 | 3,750 | ||||||
| Current portion of acquisition-related contingent liabilities | 1,321 | 736 | ||||||
| Total current liabilities | 88,141 | 85,192 | ||||||
| Long-term debt | 103,134 | 151,567 | ||||||
| Long-term pension liability | 13,262 | 12,864 | ||||||
| Long-term acquisition-related contingent liabilities | 387 | 2,245 | ||||||
| Long-term operating lease liabilities | 13,440 | 3,936 | ||||||
| Other long-term liabilities | 8,582 | 8,538 | ||||||
| Total liabilities | 226,946 | 264,342 | ||||||
| Shareholders’ equity: | ||||||||
| Preferred stock, $.001 par value – authorized 300,000 shares (none issued) | – | – | ||||||
| Common stock, $.001 par value – authorized 50,000,000 shares, issued and outstanding 16,505,826 and 16,376,683 shares, respectively | 16 | 16 | ||||||
| Additional paid-in capital | 76,515 | 72,615 | ||||||
| Retained earnings | 121,308 | 122,979 | ||||||
| Accumulated other comprehensive loss, net of tax: | ||||||||
| Pensions | (990 | ) | (1,113 | ) | ||||
| Foreign currency translation adjustment | (1,738 | ) | (1,898 | ) | ||||
| Total shareholders’ equity | 195,111 | 192,599 | ||||||
| Total liabilities and shareholders’ equity | $ | 422,057 | $ | 456,941 | ||||
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
| Nine Months Ended September 30, | ||||||||
| 2023 | 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income (loss) | $ | 5,215 | $ | (34,164 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 10,331 | 9,504 | ||||||
| Goodwill impairment charge | – | 45,918 | ||||||
| Intangible assets impairment charge | – | 5,581 | ||||||
| Inventory write-downs | 1,609 | 5,781 | ||||||
| Provision for bad debts – accounts receivable | 64 | 1,565 | ||||||
| Share-based compensation expense | 3,523 | 3,382 | ||||||
| Deferred income tax benefit | – | (6,361 | ) | |||||
| Change in fair value of acquisition-related contingent liabilities | (442 | ) | 284 | |||||
| Change in fair value of written put options | (460 | ) | (1,791 | ) | ||||
| Changes in assets and liabilities, net of acquisition of businesses: | ||||||||
| Accounts receivable | 6,410 | 3,521 | ||||||
| Accounts receivable – other | 3,240 | 978 | ||||||
| Contract assets | 6,208 | (10,222 | ) | |||||
| Inventories | 18,280 | (19,242 | ) | |||||
| Prepaid expenses and other current assets | 3,462 | 579 | ||||||
| Other assets | (844 | ) | 2,677 | |||||
| Accounts payable and other current liabilities | 2,148 | (9,561 | ) | |||||
| Payment of acquisition-related contingent liabilities | (279 | ) | (3,346 | ) | ||||
| Long-term pension liability | 561 | 1,662 | ||||||
| Other long-term liabilities | 362 | (1,249 | ) | |||||
| Net cash provided by (used in) operating activities | 59,388 | (4,504 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Additions to property, plant and equipment | (4,023 | ) | (11,221 | ) | ||||
| Acquisition of businesses | – | (11,202 | ) | |||||
| Net cash used in investing activities | (4,023 | ) | (22,423 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from borrowings of debt | 4,000 | 320,143 | ||||||
| Repayment of debt | (51,813 | ) | (274,898 | ) | ||||
| Debt issuance costs | (300 | ) | (869 | ) | ||||
| Payment of cash dividends | (6,886 | ) | (6,380 | ) | ||||
| Payment of acquisition-related contingent liabilities | (553 | ) | (1,416 | ) | ||||
| Proceeds received on exercise of stock options | 97 | 684 | ||||||
| Tax withholdings on vesting of restricted shares and performance based shares | – | (232 | ) | |||||
| Net cash provided by (used in) financing activities | (55,455 | ) | 37,032 | |||||
| Effect of currency exchange rates on cash | 97 | (132 | ) | |||||
| Net increase in cash and cash equivalents | 7 | 9,973 | ||||||
| Cash and cash equivalents balance, beginning of period | 17,722 | 8,935 | ||||||
| Cash and cash equivalents balance, end of period | $ | 17,729 | $ | 18,908 | ||||
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands, except share and par value data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net income (loss) | $ | 3,114 | $ | (12,719 | ) | $ | 5,215 | $ | (34,164 | ) | ||||||
| Interest expense | 2,464 | 1,794 | 7,658 | 2,676 | ||||||||||||
| Income tax expense (benefit) | 160 | (4,241 | ) | 380 | (5,042 | ) | ||||||||||
| Depreciation and amortization | 3,515 | 3,401 | 10,331 | 9,504 | ||||||||||||
| Goodwill impairment charge | – | 21,460 | – | 45,918 | ||||||||||||
| Intangible assets impairment charge | – | – | – | 5,581 | ||||||||||||
| Adjusted EBITDA(1) | $ | 9,253 | $ | 9,695 | $ | 23,584 | $ | 24,473 | ||||||||
| Net income (loss) | $ | 3,114 | $ | (12,719 | ) | $ | 5,215 | $ | (34,164 | ) | ||||||
| Adjustment for items: | ||||||||||||||||
| Goodwill impairment charge | – | 21,460 | – | 45,918 | ||||||||||||
| Intangible assets impairment charge | – | – | – | 5,581 | ||||||||||||
| Tax impact of adjustments(2) | – | (4,345 | ) | – | (6,385 | ) | ||||||||||
| Adjusted net income(3) | $ | 3,114 | $ | 4,396 | $ | 5,215 | $ | 10,950 | ||||||||
| Diluted net income (loss) per share | $ | 0.19 | $ | (0.80 | ) | $ | 0.32 | $ | (2.17 | ) | ||||||
| Adjustment for items, after-tax, per diluted share | – | 1.07 | – | 2.85 | ||||||||||||
| Diluted adjusted net income per share(3) | $ | 0.19 | $ | 0.27 | $ | 0.32 | $ | 0.68 | ||||||||
| Weighted average shares outstanding during the period: | ||||||||||||||||
| Diluted, as reported | 16,155,355 | 15,806,852 | 16,132,832 | 15,739,381 | ||||||||||||
| Diluted, as adjusted(4) | 16,155,355 | 16,196,767 | 16,132,832 | 16,195,155 | ||||||||||||
(1) Adjusted EBITDA, which is a non-GAAP financial measure, is defined as net income (loss) excluding interest expense, income tax expense, depreciation and amortization expense, impairment charges and the other items described in the following sentence. The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company’s core operating results from period to period by removing (i) the impact of the Company’s capital structure (interest expense from outstanding debt), (ii) tax consequences, (iii) asset base (depreciation and amortization), (iv) the non-cash charges from asset impairments and (v) gains or losses on the sale of property, plant and equipment. The Company uses Adjusted EBITDA internally to monitor operating results and to evaluate the performance of its business. In addition, the compensation committee has used Adjusted EBITDA in evaluating certain components of executive compensation, including performance-based annual incentive programs. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered in isolation or as an alternative to net income (loss), cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate Adjusted EBITDA are significant components in understanding and assessing the Company’s results of operations. The presentation of the Company’s Adjusted EBITDA may change from time to time, including as a result of changed business conditions, new accounting pronouncements or otherwise. If the presentation changes, the Company undertakes to disclose any change between periods and the reasons underlying that change. The Company’s Adjusted EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted EBITDA in the same manner.
(2) The tax impact of adjustments includes the tax effect of each separate adjustment based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible, and the tax effect of items that relate to tax specific financial transactions.
(3) Adjusted net income and diluted adjusted net income per share, which are non-GAAP measures, are defined as net income (loss) and net income (loss) per share, excluding the impacts of impairment charges. Management believes adjusted net income and diluted adjusted net income per share provides useful information to investors because it allows management, investors and others to evaluate and compare our operating results from period to period by removing the impact of impairment charges that are not reflective of our core business.
(4) Diluted weighted average shares outstanding used to calculate diluted adjusted net income per share includes shares of common stock of 389,915 and 455,774 for the three and nine months ended September 30, 2022, respectively. These shares were excluded from diluted weighted average shares outstanding used to calculate diluted net income (loss) per share, as the Company recognized a net loss their inclusion would have been antidilutive.
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
(Unaudited)
(In thousands)
| Branded Products | Healthcare Apparel | Contact Centers | Other | Total | ||||||||||||||||
| As of and For the Three Months Ended September 30, 2023: | ||||||||||||||||||||
| Net income | $ | 3,114 | ||||||||||||||||||
| Income tax expense | 160 | |||||||||||||||||||
| Income (loss) before income tax expense | $ | 5,506 | $ | 1,991 | $ | 3,173 | $ | (7,396 | ) | $ | 3,274 | |||||||||
| Interest expense | – | – | – | 2,464 | 2,464 | |||||||||||||||
| Depreciation and amortization | 1,452 | 1,064 | 880 | 119 | 3,515 | |||||||||||||||
| Adjusted EBITDA(1) | $ | 6,958 | $ | 3,055 | $ | 4,053 | $ | (4,813 | ) | $ | 9,253 | |||||||||
| Branded Products | Healthcare Apparel | Contact Centers | Other | Total | ||||||||||||||||
| As of and For the Three Months Ended September 30, 2022: | ||||||||||||||||||||
| Net loss | $ | (12,719 | ) | |||||||||||||||||
| Income tax benefit | (4,241 | ) | ||||||||||||||||||
| Income (loss) before income tax expense | $ | (17,635 | ) | $ | 1,237 | $ | 4,390 | $ | (4,952 | ) | $ | (16,960 | ) | |||||||
| Interest expense | 87 | 32 | – | 1,675 | 1,794 | |||||||||||||||
| Depreciation and amortization | 1,724 | 973 | 653 | 51 | 3,401 | |||||||||||||||
| Goodwill impairment charge | 21,460 | – | – | – | 21,460 | |||||||||||||||
| Adjusted EBITDA(1) | $ | 5,636 | $ | 2,242 | $ | 5,043 | $ | (3,226 | ) | $ | 9,695 | |||||||||
| Branded Products | Healthcare Apparel | Contact Centers | Other | Total | ||||||||||||||||
| As of and For the Nine Months Ended September 30, 2023: | ||||||||||||||||||||
| Net income | $ | 5,215 | ||||||||||||||||||
| Income tax expense | 380 | |||||||||||||||||||
| Income (loss) before income tax expense | $ | 16,630 | $ | 3,542 | $ | 7,888 | $ | (22,465 | ) | $ | 5,595 | |||||||||
| Interest expense | – | – | – | 7,658 | 7,658 | |||||||||||||||
| Depreciation and amortization | 4,826 | 3,014 | 2,210 | 281 | 10,331 | |||||||||||||||
| Adjusted EBITDA(1) | $ | 21,456 | $ | 6,556 | $ | 10,098 | $ | (14,526 | ) | $ | 23,584 | |||||||||
| Branded Products | Healthcare Apparel | Contact Centers | Other | Total | ||||||||||||||||
| As of and For the Nine Months Ended September 30, 2022: | ||||||||||||||||||||
| Net loss | $ | (34,164 | ) | |||||||||||||||||
| Income tax benefit | (5,042 | ) | ||||||||||||||||||
| Income (loss) before income tax expense | $ | (15,730 | ) | $ | (19,627 | ) | $ | 13,071 | $ | (16,920 | ) | $ | (39,206 | ) | ||||||
| Interest expense | 205 | 84 | – | 2,387 | 2,676 | |||||||||||||||
| Depreciation and amortization | 4,696 | 2,942 | 1,697 | 169 | 9,504 | |||||||||||||||
| Goodwill impairment charge | 25,595 | 20,323 | – | – | 45,918 | |||||||||||||||
| Intangible assets impairment charge | 5,581 | – | – | – | 5,581 | |||||||||||||||
| Adjusted EBITDA(1) | $ | 20,347 | $ | 3,722 | $ | 14,768 | $ | (14,364 | ) | $ | 24,473 | |||||||||
(1) Adjusted EBITDA, which is a non-GAAP financial measure, is defined above.
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION – REPORTABLE SEGMENTS BY QUARTER
(Unaudited)
(In thousands)
| Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
| For the Three Months Ended September 30, 2023: | ||||||||||||||||||||||||
| Net sales | $ | 83,512 | $ | 29,649 | $ | 24,121 | $ | (1,156 | ) | $ | – | $ | 136,126 | |||||||||||
| Cost of goods sold | 54,588 | 18,165 | 10,724 | (549 | ) | – | 82,928 | |||||||||||||||||
| Gross margin | 28,924 | 11,484 | 13,397 | (607 | ) | – | 53,198 | |||||||||||||||||
| Selling and administrative expenses | 23,418 | 9,493 | 10,224 | (607 | ) | 4,718 | 47,246 | |||||||||||||||||
| Other periodic pension cost | – | – | – | – | 214 | 214 | ||||||||||||||||||
| Interest expense | – | – | – | – | 2,464 | 2,464 | ||||||||||||||||||
| Income (loss) before income tax expense | $ | 5,506 | $ | 1,991 | $ | 3,173 | $ | – | $ | (7,396 | ) | $ | 3,274 | |||||||||||
| Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
| For the Three Months Ended June 30, 2023: | ||||||||||||||||||||||||
| Net sales | $ | 79,592 | $ | 28,072 | $ | 22,758 | $ | (1,260 | ) | $ | – | $ | 129,162 | |||||||||||
| Cost of goods sold | 53,952 | 17,653 | 10,554 | (593 | ) | – | 81,566 | |||||||||||||||||
| Gross margin | 25,640 | 10,419 | 12,204 | (667 | ) | – | 47,596 | |||||||||||||||||
| Selling and administrative expenses | 20,362 | 9,466 | 9,614 | (667 | ) | 4,607 | 43,382 | |||||||||||||||||
| Other periodic pension cost | – | – | – | – | 214 | 214 | ||||||||||||||||||
| Interest expense | – | – | – | – | 2,624 | 2,624 | ||||||||||||||||||
| Income (loss) before income tax expense | $ | 5,278 | $ | 953 | $ | 2,590 | – | $ | (7,445 | ) | $ | 1,376 | ||||||||||||
| Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
| For the Three Months Ended March 31, 2023: | ||||||||||||||||||||||||
| Net sales | $ | 81,851 | $ | 28,154 | $ | 22,056 | $ | (1,288 | ) | $ | – | $ | 130,773 | |||||||||||
| Cost of goods sold | 55,952 | 18,054 | 10,267 | (608 | ) | – | 83,665 | |||||||||||||||||
| Gross margin | 25,899 | 10,100 | 11,789 | (680 | ) | – | 47,108 | |||||||||||||||||
| Selling and administrative expenses | 20,053 | 9,502 | 9,664 | (680 | ) | 4,840 | 43,379 | |||||||||||||||||
| Other periodic pension cost | – | – | – | – | 214 | 214 | ||||||||||||||||||
| Interest expense | – | – | – | – | 2,570 | 2,570 | ||||||||||||||||||
| Income (loss) before taxes on income | $ | 5,846 | $ | 598 | $ | 2,125 | $ | – | $ | (7,624 | ) | $ | 945 | |||||||||||
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION – REPORTABLE SEGMENTS BY QUARTER
(Unaudited)
(In thousands)
| Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
| For the Three Months Ended September 30, 2022: | ||||||||||||||||||||||||
| Net sales | $ | 86,769 | $ | 30,039 | $ | 23,363 | $ | (1,468 | ) | $ | – | $ | 138,703 | |||||||||||
| Cost of goods sold | 60,600 | 18,609 | 9,453 | (596 | ) | – | 88,066 | |||||||||||||||||
| Gross margin | 26,169 | 11,430 | 13,910 | (872 | ) | – | 50,637 | |||||||||||||||||
| Selling and administrative expenses | 22,257 | 10,161 | 9,520 | (872 | ) | 2,749 | 43,815 | |||||||||||||||||
| Goodwill impairment charge | 21,460 | – | – | – | – | 21,460 | ||||||||||||||||||
| Other periodic pension cost | – | – | – | – | 528 | 528 | ||||||||||||||||||
| Interest expense | 87 | 32 | – | – | 1,675 | 1,794 | ||||||||||||||||||
| Income (loss) before income tax expense | $ | (17,635 | ) | $ | 1,237 | $ | 4,390 | $ | – | $ | (4,952 | ) | $ | (16,960 | ) | |||||||||
| Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
| For the Three Months Ended June 30, 2022: | ||||||||||||||||||||||||
| Net sales | $ | 102,039 | $ | 26,288 | $ | 21,466 | $ | (1,860 | ) | $ | – | $ | 147,933 | |||||||||||
| Cost of goods sold | 72,954 | 18,904 | 8,692 | (750 | ) | – | 99,800 | |||||||||||||||||
| Gross margin | 29,085 | 7,384 | 12,774 | (1,110 | ) | – | 48,133 | |||||||||||||||||
| Selling and administrative expenses | 24,004 | 9,801 | 8,402 | (1,110 | ) | 4,872 | 45,969 | |||||||||||||||||
| Goodwill impairment charge | 4,135 | 20,323 | – | – | – | 24,458 | ||||||||||||||||||
| Intangible assets impairment charge | 5,581 | – | – | – | – | 5,581 | ||||||||||||||||||
| Other periodic pension cost | – | – | – | – | 528 | 528 | ||||||||||||||||||
| Interest expense | 63 | 34 | – | – | 486 | 583 | ||||||||||||||||||
| Income (loss) before income tax expense | $ | (4,698 | ) | $ | (22,774 | ) | $ | 4,372 | $ | – | $ | (5,886 | ) | $ | (28,986 | ) | ||||||||
| Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
| For the Three Months Ended March 31, 2022: | ||||||||||||||||||||||||
| Net sales | $ | 97,083 | $ | 30,568 | $ | 17,974 | $ | (2,043 | ) | $ | – | $ | 143,582 | |||||||||||
| Cost of goods sold | 68,868 | 18,553 | 7,293 | (913 | ) | – | 93,801 | |||||||||||||||||
| Gross margin | 28,215 | 12,015 | 10,681 | (1,130 | ) | – | 49,781 | |||||||||||||||||
| Selling and administrative expenses | 21,557 | 10,087 | 6,372 | (1,130 | ) | 5,328 | 42,214 | |||||||||||||||||
| Other periodic pension cost | – | – | – | – | 528 | 528 | ||||||||||||||||||
| Interest expense | 55 | 18 | – | – | 226 | 299 | ||||||||||||||||||
| Income (loss) before taxes on income | $ | 6,603 | $ | 1,910 | $ | 4,309 | $ | – | $ | (6,082 | ) | $ | 6,740 | |||||||||||
