[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Q2 2021 net income decreased due to a pension charge, while six-month net sales grew, assets and equity increased, and operating cash flow turned negative [Condensed Consolidated Statements of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Q2 2021 net sales and income decreased significantly due to a pension charge, while six-month net sales grew but income still fell due to the same charge Three Months Ended June 30 (in thousands, except per share data) | Metric | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Net sales | $130,787 | $159,359 | | Cost of goods sold | $83,629 | $103,421 | | Pension plan termination charge | $6,945 | $0 | | Net income | $4,577 | $15,174 | | Diluted EPS | $0.28 | $1.00 | Six Months Ended June 30 (in thousands, except per share data) | Metric | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Net sales | $271,634 | $253,604 | | Cost of goods sold | $175,433 | $164,215 | | Pension plan termination charge | $6,945 | $0 | | Net income | $15,055 | $18,541 | | Diluted EPS | $0.94 | $1.22 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets and shareholders' equity increased as of June 30, 2021, driven by inventory and fixed asset growth, while total liabilities slightly decreased Balance Sheet Highlights (in thousands) | Metric | June 30, 2021 (in thousands) | Dec 31, 2020 (in thousands) | | :--- | :--- | :--- | | Total current assets | $265,648 | $248,457 | | Total assets | $428,746 | $393,924 | | Total current liabilities | $90,477 | $104,872 | | Long-term debt | $98,205 | $72,372 | | Total liabilities | $215,231 | $202,294 | | Total shareholders' equity | $213,515 | $191,630 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Operating cash flow turned negative for the six-month period due to working capital changes, while investing activities increased and financing activities provided cash from higher borrowings Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(3,010) | $39,762 | | Net cash used in investing activities | $(17,352) | $(4,893) | | Net cash provided by (used in) financing activities | $22,583 | $(38,280) | | Net increase (decrease) in cash | $2,358 | $(3,936) | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail business segments, recent acquisitions, debt structure, and accounting policies, highlighting a pension charge, credit facility amendment, and segment revenue shifts - The company operates in three segments: Uniforms and Related Products, Remote Staffing Solutions (The Office Gurus®), and Promotional Products (BAMKO®)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - On January 29, 2021, the company acquired Gifts By Design, Inc. for **$6.0 million in cash**, expanding its Promotional Products segment[72](index=72&type=chunk) - In Q2 2021, the company terminated its two noncontributory qualified defined benefit pension plans, resulting in a non-cash settlement charge of **$6.9 million**[41](index=41&type=chunk) - On February 8, 2021, the company amended its credit agreement, increasing the revolving credit facility from **$75.0 million to $125.0 million** and extending the maturity to 2026[33](index=33&type=chunk) Disaggregated Revenue by Segment - Six Months Ended June 30 (in thousands) | Segment | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Uniforms and Related Products | $138,761 | $135,944 | | Remote Staffing Solutions | $25,321 | $16,026 | | Promotional Products | $107,552 | $101,634 | | **Consolidated Net Sales** | **$271,634** | **$253,604** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 sales decline due to lower PPE demand, offset by growth in other segments, and highlights ongoing supply chain disruptions and sufficient liquidity despite decreased operating cash flow [Business Outlook and COVID-19 Impact](index=21&type=section&id=Business%20Outlook%20and%20COVID-19%20Impact) The company anticipates continued core segment growth but declining PPE sales, while actively managing significant global supply chain disruptions and increased costs - The company anticipates a decline in opportunities to supply personal protective equipment (PPE) as the pandemic evolves[84](index=84&type=chunk)[86](index=86&type=chunk) - The Remote Staffing Solutions segment (The Office Gurus) is experiencing increased demand and is positioned for continued growth[85](index=85&type=chunk) - The company is experiencing significant supply disruptions and delays due to global supply chain issues like port congestion and increased demand for shipping capacity, leading to higher costs and inventory pressure[92](index=92&type=chunk)[93](index=93&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 2021 consolidated net sales decreased due to lower PPE revenue, despite strong growth in Remote Staffing, while six-month sales increased, and a pension charge impacted income Net Sales Change - Three Months Ended June 30, 2021 vs 2020 (in millions) | Segment | 2021 Net Sales (M) | 2020 Net Sales (M) | % Change | | :--- | :--- | :--- | :--- | | Uniforms and Related Products | $68.2 | $75.8 | (10.1%) | | Remote Staffing Solutions | $15.7 | $9.4 | 67.4% | | Promotional Products | $48.7 | $75.5 | (35.5%) | | **Consolidated** | **$130.8** | **$159.4** | **(17.9%)** | - The decrease in Promotional Products sales in Q2 was primarily due to a **$48.7 million drop in PPE sales**, partially offset by a **$22.0 million increase** in the core promotional products business[98](index=98&type=chunk) Net Sales Change - Six Months Ended June 30, 2021 vs 2020 (in millions) | Segment | 2021 Net Sales (M) | 2020 Net Sales (M) | % Change | | :--- | :--- | :--- | :--- | | Uniforms and Related Products | $138.8 | $135.9 | 2.1% | | Remote Staffing Solutions | $28.7 | $18.6 | 54.6% | | Promotional Products | $107.6 | $101.6 | 5.8% | | **Consolidated** | **$271.6** | **$253.6** | **7.1%** | - A one-time, non-cash pension plan termination charge of **$6.9 million** was recognized in Q2 2021[107](index=107&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by an expanded credit facility despite decreased operating cash flow due to working capital changes, with increased capital expenditures and ongoing share repurchase capacity - Net cash used in operating activities was **$3.0 million** for the first six months of 2021, compared to **$39.8 million provided** in the same period of 2020, mainly due to payments of 2020 performance-related accruals[128](index=128&type=chunk) - Net cash used in investing activities increased due to the **$6.0 million acquisition** of Gifts by Design and a **$6.4 million increase** in capital expenditures, primarily for a distribution facility expansion in Arkansas[129](index=129&type=chunk) - The company amended its credit agreement, increasing the revolving credit facility to **$125.0 million** As of June 30, 2021, total outstanding borrowings were **$114.2 million**, with **$73.1 million available** under the revolver[131](index=131&type=chunk)[132](index=132&type=chunk) - The company has remaining capacity to repurchase **657,451 shares** under its approved program[136](index=136&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on variable-rate debt and foreign currency exchange risk, primarily from the Brazilian real, impacting comprehensive income - The company is subject to interest rate risk on its debt, which is tied to LIBOR A hypothetical **100 basis point increase** in LIBOR from Jan 1, 2021, would have increased pre-tax interest expense by about **$0.6 million** for the six-month period[138](index=138&type=chunk) - The company has foreign currency exchange risk, with less than **5% of sales contracts** not denominated in U.S. dollars Translation of foreign subsidiary results, particularly the Brazilian real, contributed to a **$0.4 million gain** in comprehensive income in H1 2021, compared to a **$1.4 million loss** in H1 2020[139](index=139&type=chunk)[140](index=140&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal controls during the quarter - Management concluded that as of June 30, 2021, the company's disclosure controls and procedures were effective[141](index=141&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the second quarter of 2021[142](index=142&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company states that ongoing legal proceedings are not expected to have a material adverse effect on its financials - The company states that ongoing legal proceedings are not expected to have a material adverse effect on its financials[145](index=145&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors except for expanded discussion on significant supply chain disruptions, increased costs, and potential manufacturing disruptions in Haiti - The company is experiencing significant supply disruptions, increased shipping times, and higher shipping prices, which are creating inventory pressure[147](index=147&type=chunk) - A majority of fabrics for the Uniforms segment and raw materials for the Promotional Products segment are sourced from China, creating a significant business disruption risk if this supply is interrupted[148](index=148&type=chunk) - Political and civil unrest in Haiti following the presidential assassination could cause manufacturing disruptions for the company and its suppliers[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales or share repurchases occurred during the quarter, with remaining capacity for 657,451 shares under the repurchase program - No shares of common stock were repurchased during the three months ended June 30, 2021[152](index=152&type=chunk) - The company has a remaining repurchase capacity of **657,451 shares** under its stock repurchase program approved on May 2, 2019[152](index=152&type=chunk) [Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable - Not applicable[153](index=153&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[154](index=154&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) None - None[155](index=155&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various employment and compensation agreements, CEO/CFO certifications (Sections 302 and 906), and Inline XBRL data files - Exhibits filed include employment agreements, change in control agreements, and various share-based compensation agreements[157](index=157&type=chunk) - Certifications by the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are included as exhibits[157](index=157&type=chunk)

Superior Group of Companies, Inc. (NASDAQ:SGC) Q1 2021 Earnings Conference Call April 28, 2021 2:00 PM ET Company Participants Hala Elsherbini - Senior Managing Director-Three Part Advisors Michael Benstock - Chief Executive Officer Jake Himelstein - Chief Operating Officer and Chief Financial Officer-BAMKO Andrew Demott - Chief Operating Officer, Chief Financial Officer and Treasurer Conference Call Participants Kevin Steinke - Barrington Research Operator Good afternoon, everyone. Welcome to Superior Grou ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q | (Mark One) | | --- | | ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | For the quarterly period ended March 31, 2021 | | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | For the transition period from ________ to __________ | | Commission file number: 001-05869 | | Exact name of registrant as specified in its charter: | | SUPERIOR G ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _______________ Commission File Number 001-05869 SUPERIOR GROUP OF COMPANIES, INC. (Exact Name of Registrant as Specified in Its Charter) Flori ...

Superior Group of Companies, Inc. (NASDAQ:SGC) Q4 2020 Earnings Conference Call March 1, 2021 2:00 PM ET Company Participants Hala Elsherbini – Senior Managing Director-Three Part Advisors Michael Benstock – Chief Executive Officer Jake Himelstein – Chief Operating Officer and Chief Financial Officer-BAMKO Andy Demott – Chief Operating Officer, Chief Financial Officer and Treasurer Conference Call Participants Kevin Steinke – Barrington Research Operator Good afternoon, everyone. Welcome to Superior Group o ...

Superior Group of Companies, Inc. (NASDAQ:SGC) Q3 2020 Earnings Conference Call October 29, 2020 2:00 PM ET Company Participants Hala Elsherbini - Senior Managing Director, Three Part Advisors Michael Benstock - CEO Jake Himelstein - CFO and COO, BAMKO Jeff Hoefler - Corporate Controller and VP of Accounting Conference Call Participants Kevin Steinke - Barrington Research Fred Foulkes - Boston University Operator Good afternoon, everyone, and welcome to the Superior Group of Companies 2020 Third Quarter Ear ...

Superior Group of Companies, Inc. (NASDAQ:SGC) Q2 2020 Earnings Conference Call July 29, 2020 10:00 AM ET Â Company Participants Hala Elsherbini - Senior Managing Director, Three Part Advisors Michael Benstock - Chief Executive Officer Andrew Demott - Chief Operating Officer, Chief Financial Officer and Treasurer Conference Call Participants Kevin Steinke - Barrington Research Fred Foulkes - Boston University Operator Good afternoon, everyone. Welcome to the Superior Group of CompanyÂ's Second Quarter 2020 ...

SUPERIOR GROUP OF COMPANIES 2020 2ªº QUARTER CONFERENCE CALL JULY 29, 2020 SAFE HARBOR This conference call may contain forward-looking statements about Superior Group of Companies (the "Company") within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995, nd all rules and regulations issued thereunder. Such statements are based upon management's current expectations, projections, estimates and assumptions. Words such as "will, ...

Company Overview and Strategy - Superior Group of Companies operates with three platforms: Superior Uniform Group, Superior Branding Solutions, and Superior BPO Solutions, delivering complementary products and services[5] - The company focuses on a diversified business model, cash conservation, and proactive responses across its global organization[11] - A key strategy involves leveraging shared resources for margin enhancement and synergistic growth, both organically and through acquisitions[9] - The company emphasizes stakeholder safety, community support, business continuity, and austerity measures, balanced across all stakeholders[25] Financial Performance and Metrics - In fiscal year 2019, net sales reached $376 million[28] - The Net Sales Compound Annual Growth Rate (CAGR) since 2013 is 164%, comprising 61% organic growth and 103% from acquisitions[28] - Diluted Earnings Per Share (EPS) CAGR since 2013 is 94%[28] - For the three months ended March 31, 2020, EBITDA was $75 million[70] Market and Growth Opportunities - Superior Uniform Group targets a $49 billion addressable market within a $104 billion total workwear and uniforms market[37] - Superior Branding Solutions has a $1075 million in FY19 sales, tapping into a $258 billion total market[58] - Superior BPO Solutions aims for organic growth averaging at least $7 million per year[61]

Superior Group of Companies, Inc., (NASDAQ:SGC) Q1 2020 Earnings Conference Call April 30, 2020 2:00 PM ET Company Participants Hala Elsherbini - VP, Halliburton IR Michael Benstock - CEO Andy Demott - COO, CFO & Treasurer Conference Call Participants Kevin Steinke - Barrington Research Operator Good afternoon, everyone. Welcome to the Superior Group of Companies First Quarter 2020 Conference Call. With us today are Michael Benstock, the Company's Chief Executive Officer; and Andy Demott, its Chief Operatin ...