To give gifts to customers as a reward for their loyalty. To create a cohesive, safe, and professional image for their brand ambassadors, through clothing those people who interact face to face with their customers. 13 Branded Products Growth Opportunities $25.8B TAM in the US(1) ~2% SGC Market Share 9.5% 5 Year Revenue CAGR Through 2023 9.7% 2023 EBITDA Margin(2) 90% Annual Customer Retention(3) 5M+ Americans Wear Our Brands to Work Daily Highly decentralized industry with significant sales volume at small ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) The company's financial performance for Q1 2024 shows significant net income growth and strong operating cash flow, despite a slight decrease in total assets [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for Q1 2024 reveal a substantial increase in net income to $3.9 million, driven by a 6.2% rise in net sales, alongside a slight decrease in total assets and liabilities [Condensed Consolidated Statements of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Net sales increased by 6.2% to $138.8 million, leading to a significant rise in net income to $3.9 million for the three months ended March 31, 2024 Q1 2024 vs Q1 2023 Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $138,842 | $130,773 | 6.2% | | Gross Profit* | $55,317 | $47,108 | 17.4% | | Income before income tax | $4,592 | $945 | 385.9% | | Net Income | $3,912 | $888 | 340.5% | | Diluted EPS | $0.24 | $0.06 | 300.0% | | Cash dividends per share | $0.14 | $0.14 | 0.0% | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets decreased to $408.5 million as of March 31, 2024, primarily due to reductions in accounts receivable and inventories, while total liabilities also decreased, leading to an increase in shareholders' equity Balance Sheet Highlights (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $22,040 | $19,896 | | Total Current Assets | $267,529 | $279,360 | | Total Assets | $408,481 | $422,450 | | Total Current Liabilities | $88,165 | $100,589 | | Long-term debt | $84,445 | $88,789 | | Total Liabilities | $207,660 | $224,812 | | Total Shareholders' Equity | $200,821 | $197,638 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash provided by operating activities decreased to $9.4 million in Q1 2024, primarily due to working capital changes, while investing and financing cash outflows also decreased Cash Flow Summary (in thousands) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,447 | $25,050 | | Net cash used in investing activities | $(675) | $(2,114) | | Net cash used in financing activities | $(6,375) | $(14,198) | | Net increase in cash and cash equivalents | $2,144 | $8,878 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes detail the company's three business segments, long-term debt, segment performance, share-based compensation, and contingencies - The company operates through three main segments: **Branded Products** (customized merchandise and uniforms), **Healthcare Apparel** (scrubs, lab coats), and **Contact Centers** (outsourced business process services)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - As of March 31, 2024, total debt under the Credit Facilities was **$90.4 million**, with a weighted average interest rate of **6.6%**, and the company was in compliance with all debt covenants[34](index=34&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk) - In Q4 2023, the company changed its segment performance metric from 'income before income taxes' to 'Segment EBITDA' to better evaluate operational performance[70](index=70&type=chunk) Segment Performance for Q1 2024 (in thousands) | Segment | Net Sales | Segment EBITDA | | :--- | :--- | :--- | | Branded Products | $87,068 | $9,947 | | Healthcare Apparel | $29,237 | $2,635 | | Contact Centers | $23,552 | $2,946 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 6.2% year-over-year revenue growth in Q1 2024 to increased sales across all three segments and improved gross margin, while maintaining solid liquidity [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Consolidated net sales increased by 6.2% to $138.8 million in Q1 2024, with significant gross margin improvement to 39.8% driven by favorable sales mix and lower costs Q1 2024 vs Q1 2023 Segment Net Sales (in thousands) | Segment | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Branded Products | $87,068 | $81,851 | $5,217 | 6.4% | | Healthcare Apparel | $29,237 | $28,154 | $1,083 | 3.8% | | Contact Centers | $23,552 | $22,056 | $1,496 | 6.8% | | **Consolidated** | **$138,842** | **$130,773** | **$8,069** | **6.2%** | - The gross margin rate for the Branded Products segment increased from **31.6% to 36.5%** due to a favorable shift in pricing and customer mix, as well as lower costs[89](index=89&type=chunk) - The Healthcare Apparel segment's gross margin rate rose from **35.9% to 39.4%**, driven by lower costs and improved manufacturing efficiencies in Haiti[90](index=90&type=chunk) - Interest expense decreased by **$0.8 million (30.5%)** due to a **$53.7 million** reduction in outstanding borrowings compared to the prior year[96](index=96&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity with $22.0 million in cash and $103.0 million available under its revolving credit facility, deemed sufficient to meet operational and financial needs for the next twelve months - Working capital increased slightly to **$179.4 million** at March 31, 2024, from **$178.8 million** at December 31, 2023[101](index=101&type=chunk) - As of March 31, 2024, the company had **$90.4 million** in outstanding borrowings and **$103.0 million** of undrawn capacity under its revolving credit facility[109](index=109&type=chunk) - The company paid cash dividends of **$2.3 million** in Q1 2024 and has a remaining share repurchase capacity of **657,451 shares**[113](index=113&type=chunk)[114](index=114&type=chunk) [Non-GAAP Financial Measure](index=24&type=section&id=Non-GAAP%20Financial%20Measure) The company uses EBITDA as a non-GAAP measure to evaluate core operating performance, which increased to $9.6 million in Q1 2024, reflecting higher sales and improved gross margins Reconciliation of Net Income to EBITDA (in thousands) | | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $3,912 | $888 | | Interest expense | $1,787 | $2,570 | | Income tax expense | $680 | $57 | | Depreciation and amortization | $3,252 | $3,388 | | **EBITDA** | **$9,631** | **$6,903** | [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from variable-rate debt and foreign currency exchange risk from international operations, though less than 5% of sales contracts are in foreign currencies - The company is subject to interest rate risk on its debt, which is based on the variable SOFR; a **1% (100 basis points)** increase in SOFR would have resulted in an additional **$0.2 million** in pre-tax interest expense for Q1 2024[120](index=120&type=chunk) - The company has exposure to foreign currency risk, but less than **5%** of sales contracts are denominated in foreign currencies; a foreign currency translation adjustment loss of **$0.5 million** was recorded in comprehensive income for Q1 2024[121](index=121&type=chunk)[122](index=122&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of March 31, 2024, due to an un-remediated material weakness in IT controls within the Contact Centers segment - A material weakness related to IT controls (segregation of duties, change management, user access) in the Contact Centers segment, first identified in 2022, continues to exist as of March 31, 2024[125](index=125&type=chunk) - Ongoing remediation efforts include deploying enhanced change management software, reassessing authority levels, and implementing additional review and monitoring controls[127](index=127&type=chunk) - Despite the material weakness, management has determined that the financial statements included in the 10-Q are fairly presented in all material respects[126](index=126&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, updated risk factors, equity security sales, and recent compensation committee actions [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits in the ordinary course of business, which are not expected to have a material adverse effect on its financial position - The company states that ongoing legal proceedings are not expected to have a material adverse effect on its financial condition or results of operations[131](index=131&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors, except for an update highlighting the risks associated with manufacturing facilities and warehouses in Haiti due to civil unrest - A specific risk factor has been highlighted concerning the company's manufacturing facilities in Haiti, which are at risk of disruption due to civil unrest, potentially interrupting manufacturing and adversely affecting the business[133](index=133&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or share repurchases during the quarter, retaining capacity for future repurchases - No shares were repurchased during the three months ended March 31, 2024[135](index=135&type=chunk) - The company has a remaining capacity to repurchase **657,451 shares** under its board-approved stock repurchase program[135](index=135&type=chunk) [Other Information](index=27&type=section&id=Item%205.%20Other%20Information) Subsequent to the quarter end, the Compensation Committee approved grants of performance shares to the CEO and CFO, contingent on achieving specific stock price appreciation targets - Subsequent to the quarter end, on May 1, 2024, the company granted **125,000 performance shares** to the CEO and **75,000** to the CFO[139](index=139&type=chunk) - Vesting of these performance shares is contingent on achieving significant stock price growth targets over a four-year period[139](index=139&type=chunk)

Executive Summary & Business Highlights [First Quarter 2024 Performance Overview](index=1&type=section&id=First%20Quarter%202024%20Performance%20Overview) Superior Group of Companies achieved significant Q1 2024 year-over-year growth in net sales, net income, and EBITDA | Metric | Q1 2024 | Q1 2023 | YoY Change | YoY Change (%) | | :-------------------- | :------ | :------ | :--------- | :------------- | | Total Net Sales | $138.8M | $130.8M | +$8.0M | +6.2% | | Net Income | $3.9M | $0.9M | +$3.0M | +333.3% | | EBITDA | $9.6M | $6.9M | +$2.7M | +39.1% | | Diluted EPS | $0.24 | $0.06 | +$0.18 | +300.0% | [CEO Commentary and Strategic Focus](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Focus) The CEO highlighted strong Q1 revenue and EBITDA growth across all segments, driving positive cash flow and strategic investments - The year is off to a **strong start**, with year-over-year **revenue and EBITDA growth** for all three of our business segments driving **positive cash flow** and **improved financial flexibility**[2](index=2&type=chunk) - The team's focus is on **strong customer service and retention**, coupled with **prudent investments** in talent, processes, and systems to **capture future market share** and **enhance long-term profitability**[2](index=2&type=chunk) - The company is **confident in its future outlook** and is **raising full-year expectations** due to **positive momentum** across all business segments[2](index=2&type=chunk) [2024 Full-Year Outlook](index=1&type=section&id=2024%20Full-Year%20Outlook) Superior Group of Companies raised its full-year 2024 sales and diluted EPS outlook, reflecting improved operating performance | Metric | New 2024 Outlook | Prior 2024 Outlook | 2023 Actual | | :-------------------- | :----------------- | :----------------- | :---------- | | Sales | $563M - $570M | $558M - $568M | $543M | | Diluted EPS | $0.73 - $0.79 | $0.61 - $0.68 | $0.54 | - The updated earnings per diluted share outlook reflects **improved operating performance**, partially offset by **incremental stock compensation expense** from the May issuance of performance-based stock awards[5](index=5&type=chunk) [Quarterly Dividend Declaration](index=1&type=section&id=Quarterly%20Dividend%20Declaration) The Board of Directors approved a quarterly dividend of $0.14 per share for the first quarter of 2024 | Metric | Q1 2024 | | :-------------------- | :------ | | Cash dividends per common share | $0.14 | - The dividend is payable June 3, 2024, to shareholders of record as of May 20, 2024[4](index=4&type=chunk) Company Information [About Superior Group of Companies](index=2&type=section&id=About%20Superior%20Group%20of%20Companies) Superior Group of Companies, established in 1920, operates three segments: Healthcare Apparel, Branded Products, and Contact Centers - Superior Group of Companies, established in 1920, comprises **three business segments**: **Healthcare Apparel**, **Branded Products**, and **Contact Centers**, serving large, fragmented, and growing markets[10](index=10&type=chunk) - The company's competitive advantages stem from its **commitment to service, quality, advanced technology, and omnichannel commerce**[10](index=10&type=chunk) - SGC aims to **enhance shareholder value** through a combination of **organic growth and strategic acquisitions**[10](index=10&type=chunk) [Webcast and Conference Call Information](index=2&type=section&id=Webcast%20and%20Conference%20Call%20Information) Details are provided for accessing the live webcast and conference call for Q1 2024 results, including replay information - The company hosted a webcast and conference call at 5:00 pm Eastern Time on May 7, 2024, with access available via the investor relations section of its website[7](index=7&type=chunk) - A telephone replay of the teleconference is available through May 21, 2024, with specific dial-in numbers for U.S., International, and Canadian callers[7](index=7&type=chunk) [Forward-Looking Statements & Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This section outlines forward-looking statements and key risks, including competition, supply disruptions, and economic conditions - The press release contains 'forward-looking statements' that qualify for safe harbors under the Private Securities Litigation Reform Act of 1995, identifiable by words like 'may,' 'will,' 'expect,' and 'anticipate'[8](index=8&type=chunk) - These statements are subject to **risks and uncertainties**, including **competition, supply disruptions, inflationary environment, employment levels, general economic and political conditions, and challenges in integrating acquired businesses**[9](index=9&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements and are directed to the 'Risk Factors' sections of the company's Form 10-K and 10-Q filings for further details[9](index=9&type=chunk) Financial Statements [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements show substantial Q1 2024 profitability improvement, driven by increased net sales and effective cost management | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | YoY Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | | Net sales | $138,842 | $130,773 | +$8,069 | | Cost of goods sold | $83,525 | $83,665 | -$140 | | Selling and administrative expenses | $48,749 | $43,379 | +$5,370 | | Income before income tax expense | $4,592 | $945 | +$3,647 | | Income tax expense | $680 | $57 | +$623 | | Net income | $3,912 | $888 | +$3,024 | | Diluted Net income per share | $0.24 | $0.06 | +$0.18 | - Net sales increased by **6.2%** year-over-year, while cost of goods sold remained relatively flat, contributing to improved gross margins[13](index=13&type=chunk) - Income before income tax expense surged by **385.9%**, and net income increased by **340.5%** compared to the prior year's first quarter[13](index=13&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2024, shows stable financial position with decreased assets/liabilities and increased equity | Metric (in thousands) | March 31, 2024 | December 31, 2023 | Change | | :-------------------- | :------------- | :---------------- | :----- | | Cash and cash equivalents | $22,040 | $19,896 | +$2,144 | | Total current assets | $267,529 | $279,360 | -$11,831 | | Total assets | $408,481 | $422,450 | -$13,969 | | Total current liabilities | $88,165 | $100,589 | -$12,424 | | Total liabilities | $207,660 | $224,812 | -$17,152 | | Total shareholders' equity | $200,821 | $197,638 | +$3,183 | - Accounts receivable decreased by approximately **$9.7 million**, and inventories decreased by **$5.5 million** from year-end 2023[15](index=15&type=chunk) - Long-term debt decreased from **$88,789 thousand** to **$84,445 thousand**, reflecting debt repayments[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 cash flow shows decreased operating cash, but reduced investing/financing outflows, leading to a net cash increase | Cash Flow Activity (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Net cash provided by operating activities | $9,447 | $25,050 | -$15,603 | | Net cash used in investing activities | ($675) | ($2,114) | +$1,439 | | Net cash used in financing activities | ($6,375) | ($14,198) | +$7,823 | | Net increase in cash and cash equivalents | $2,144 | $8,878 | -$6,734 | | Cash and cash equivalents, end of period | $22,040 | $26,600 | -$4,560 | - The decrease in operating cash flow was primarily influenced by changes in working capital, despite a higher net income[17](index=17&type=chunk) - Cash used in financing activities **significantly decreased** due to **lower debt repayments** and **higher proceeds from borrowings of debt** compared to the prior year[17](index=17&type=chunk) Non-GAAP Financial Measures [EBITDA Reconciliation and Definition](index=6&type=section&id=EBITDA%20Reconciliation%20and%20Definition) This section reconciles net income to EBITDA for Q1 2024 and 2023, defining it as a key non-GAAP operating performance measure | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | YoY Change | | :-------------------- | :-------------------------------- | :-------------------------------- | :--------- | | Net income | $3,912 | $888 | +$3,024 | | Interest expense | $1,787 | $2,570 | -$783 | | Income tax expense | $680 | $57 | +$623 | | Depreciation and amortization | $3,252 | $3,388 | -$136 | | **EBITDA** | **$9,631** | **$6,903** | **+$2,728** | - EBITDA increased by **39.5%** year-over-year, reflecting improved operating performance before the impact of capital structure, taxes, and asset base[19](index=19&type=chunk) - EBITDA is considered an important measure for evaluating core operating results but is not a GAAP measure and should not be used in isolation[19](index=19&type=chunk) Segment Performance [Reportable Segments Financials](index=7&type=section&id=Reportable%20Segments%20Financials) Supplemental information details Q1 2024 and Q1 2023 financial performance for all three segments, showing growth in sales and EBITDA | Segment | Net Sales Q1 2024 (in thousands) | Net Sales Q1 2023 (in thousands) | YoY Change | | :---------------- | :------------------------------- | :------------------------------- | :--------- | | Branded Products | $87,068 | $81,851 | +$5,217 | | Healthcare Apparel | $29,237 | $28,154 | +$1,083 | | Contact Centers | $23,552 | $22,056 | +$1,496 | | **Total Net Sales** | **$138,842** | **$130,773** | **+$8,069** | | Segment | Segment EBITDA Q1 2024 (in thousands) | Segment EBITDA Q1 2023 (in thousands) | YoY Change | | :---------------- | :------------------------------------ | :------------------------------------ | :--------- | | Branded Products | $9,947 | $7,510 | +$2,437 | | Healthcare Apparel | $2,635 | $1,572 | +$1,063 | | Contact Centers | $2,946 | $2,793 | +$153 | | **Total Segment EBITDA** | **$9,631** | **$6,903** | **+$2,728** | - All three segments contributed to the overall year-over-year revenue and EBITDA growth, with **Branded Products** showing the largest absolute increase in both metrics[2](index=2&type=chunk)[22](index=22&type=chunk)

Superior Group of Companies, Inc. (NASDAQ:SGC) Q4 2023 Earnings Conference Call March 13, 2024 5:00 PM ET Company Participants Michael Benstock - CEO Mike Koempel - CFO Conference Call Participants David Marsh - Singular Research Kevin Steinke - Barrington Research Jim Sidoti - Sidoti & Company Operator Good afternoon everyone. Welcome to the Superior Group of Companies' Fourth Quarter 2023 Conference Call. With us today are Michael Benstock, Chief Executive Officer, and Mike Koempel, Chief Financial Office ...

HEALTHCARE APPAREL | BRANDED PRODUCTS | CONTACT CENTERS 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. All subsequent written or oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this pr ...

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, 2023 ☐ 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 ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides an overview of the company's financial results for Q4 2023 and the full-year 2024 outlook [Fourth Quarter 2023 Results](index=1&type=section&id=Fourth%20Quarter%202023%20Results) In Q4 2023, net sales slightly decreased to $147.2 million, while net income and EBITDA significantly improved | Financial Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $147.2 million | $148.6 million | -0.9% | | Pretax Income | $4.2 million | $1.2 million | +250% | | Net Income | $3.6 million | $2.2 million | +63.6% | | Diluted EPS | $0.22 | $0.14 | +57.1% | | EBITDA | $9.9 million | $3.5 million (Adjusted) | +182.9% | - On an adjusted basis, Q4 2023 net income of **$3.6 million** compares to an adjusted net loss of **$0.9 million** in Q4 2022[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted Q4 2023 as the best quarter of the year, with improved profitability, positive cash flow, and a stronger balance sheet - Management emphasized key achievements and positive trends in Q4 2023: - Strongest quarter of the year with sequential improvement - Enhanced profitability and continued positive cash flow - Substantially improved balance sheet - Optimism for 2024 driven by strong client retention and new wins[2](index=2&type=chunk) [2024 Full-Year Outlook](index=1&type=section&id=2024%20Full-Year%20Outlook) The company forecasts 2024 net sales between $558 million and $568 million, with diluted EPS projected from $0.61 to $0.68 | Metric | 2024 Forecast | 2023 Actual | | :--- | :--- | :--- | | Net Sales | $558 million - $568 million | $543 million | | Diluted EPS | $0.61 - $0.68 | $0.54 (Adjusted) | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For FY 2023, net sales decreased to $543.3 million, but the company achieved a net income of $8.8 million, reversing a prior-year loss | Metric | Year Ended Dec 31, 2023 (in thousands) | Year Ended Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | | Net sales | $543,302 | $578,831 | | Cost of goods sold | $339,755 | $385,472 | | Goodwill impairment charge | $0 | $45,918 | | Income (loss) before income tax | $9,769 | $(38,035) | | Net income (loss) | $8,772 | $(31,970) | | Diluted EPS | $0.54 | $(2.03) | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets decreased to $422.5 million, driven by lower inventories and a significant reduction in long-term debt | Metric | Dec 31, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Inventories | $98,067 | $124,976 | | Total current assets | $279,360 | $317,983 | | Total assets | $422,450 | $456,941 | | **Liabilities & Equity** | | | | Long-term debt | $88,789 | $151,567 | | Total liabilities | $224,812 | $264,342 | | Total shareholders' equity | $197,638 | $192,599 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated strong net cash from operating activities of $78.9 million in 2023, primarily due to effective working capital management | Metric | Year Ended Dec 31, 2023 (in thousands) | Year Ended Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $78,929 | $(2,604) | | Net cash used in investing activities | $(5,508) | $(17,425) | | Net cash provided by (used in) financing activities | $(71,616) | $28,846 | | Net increase in cash and cash equivalents | $2,174 | $8,787 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations of GAAP to non-GAAP financial measures for a clearer view of core operating performance [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Adjusted EBITDA for FY 2023 increased to $33.5 million, and for Q4 2023, it rose significantly to $9.9 million | Metric | Q4 2023 (in thousands) | Q4 2022 (in thousands) | FY 2023 (in thousands) | FY 2022 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $3,557 | $2,194 | $8,772 | $(31,970) | | **Adjusted EBITDA** | **$9,898** | **$3,454** | **$33,482** | **$27,927** | | **Adjusted net income (loss)** | **$3,557** | **$(917)** | **$8,772** | **$10,033** | | Diluted adjusted net income (loss) per share | $0.22 | $(0.06) | $0.54 | $0.62 | [Segment Performance](index=8&type=section&id=Segment%20Performance) This section details the financial performance of the company's Branded Products, Healthcare Apparel, and Contact Centers segments [Segment Financial Data](index=8&type=section&id=Segment%20Financial%20Data) In FY 2023, Branded Products remained the largest segment, Healthcare Apparel improved significantly, and Contact Centers saw sales growth Full Year Segment Performance (In thousands) | Segment | Net Sales 2023 | Net Sales 2022 | Adj. EBITDA 2023 | Adj. EBITDA 2022 | | :--- | :--- | :--- | :--- | :--- | | Branded Products | $342,680 | $387,931 | $33,146 | $31,144 | | Healthcare Apparel | $113,878 | $113,321 | $7,997 | $(2,747) | | Contact Centers | $91,500 | $84,218 | $12,408 | $18,521 | Q4 Segment Performance (In thousands) | Segment | Net Sales Q4 2023 | Net Sales Q4 2022 | Adj. EBITDA Q4 2023 | Adj. EBITDA Q4 2022 | | :--- | :--- | :--- | :--- | :--- | | Branded Products | $97,725 | $102,040 | $11,690 | $10,797 | | Healthcare Apparel | $28,003 | $26,426 | $1,441 | $(6,469) | | Contact Centers | $22,565 | $21,415 | $2,310 | $3,753 | [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details on the conference call, company overview, and forward-looking statements [Conference Call and Webcast Information](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Information) A conference call and webcast were scheduled for March 13, 2024, at 5:00 pm ET to discuss the financial results - A conference call and webcast to discuss results was scheduled for **5:00 pm ET on March 13, 2024**[6](index=6&type=chunk) [About Superior Group of Companies, Inc.](index=2&type=section&id=About%20Superior%20Group%20of%20Companies%2C%20Inc.) Superior Group of Companies, established in 1920, operates through three segments: Healthcare Apparel, Branded Products, and Contact Centers - The company is comprised of three business segments: - Healthcare Apparel - Branded Products - Contact Centers[9](index=9&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to various risks and uncertainties, including supply disruptions and inflation - The report includes forward-looking statements that are subject to risks and uncertainties, such as supply disruptions, inflation, and competition[7](index=7&type=chunk)[8](index=8&type=chunk)

Superior Group of Companies, Inc. (NASDAQ:SGC) Q3 2023 Earnings Conference Call November 6, 2023 5:00 PM ET Company Participants Michael Benstock - Chief Executive Officer Mike Koempel - Chief Financial Officer Conference Call Participants Kevin Steinke - Barrington Research Jim Sidoti - Sidoti & Company David Marsh - Singular Research Operator Good afternoon, everyone, and welcome to the Superior Group of Companies Third Quarter 2023 Conference Call. With us today are Michael Benstock, Chief Executive Offi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ 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 GROUP OF COMPANIES, INC. State or other jurisd ...

Financial Data and Key Metrics Changes - The company generated consolidated second quarter revenues of $129 million, down from $148 million in the same period last year, while adjusted EBITDA increased to $7 million from $5 million in the prior year quarter [3][7][41] - The net income for the second quarter was $1.2 million or $0.08 per diluted share, compared to a net loss of $26.7 million or $1.70 per diluted share in the prior year quarter [8][41] - The updated full-year revenue outlook is now between $550 million to $560 million, down from the previous range of $585 million to $595 million, with earnings per diluted share expected to be between $0.45 to $0.55, down from $0.92 to $0.97 [9] Business Line Data and Key Metrics Changes - Healthcare Apparel revenues increased to $28 million from $26 million in the prior year, reflecting a 7% growth despite soft market conditions [4] - Contact Centers generated second quarter revenues of $23 million, up 6% year-over-year, with adjusted EBITDA of $3.3 million, reflecting a margin of 14% [56] - Branded Products revenues decreased to $80 million from $102 million a year ago, with adjusted EBITDA of $7 million, slightly up from the previous year [73] Market Data and Key Metrics Changes - The company noted that while there are positive signs in the market, there remains uncertainty with some budgets opening up and others not [12][63] - The backlog of orders has increased significantly, indicating potential future revenue growth [12] Company Strategy and Development Direction - The company aims to grow its market share in the Healthcare Apparel segment, targeting the large addressable market of caregivers [55] - There is a focus on improving gross margins and managing expenses in the Branded Products segment to navigate economic uncertainty [73] - The company plans to be more active in M&A next year, contingent on improving leverage ratios [24][102] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of the year, expecting a backend-loaded performance with improved sales trends [9][63] - The company is focused on achieving inventory equilibrium by year-end and is optimistic about the healthcare business improving [27][97] - Management highlighted the importance of reducing debt levels and improving cash flow to position the company for future growth [35][71] Other Important Information - The company reported a slight improvement in its net leverage ratio to 3.7 times trailing 12-month covenant EBITDA, remaining within covenant requirements [59] - The company has made significant progress in operating cash flow, generating $38 million in the first half of the year [71] Q&A Session Summary Question: What has changed regarding the outlook for Branded Products? - Management noted that clients are being more cautious, impacting the outlook for Branded Products [77][78] Question: How close is the company to achieving equilibrium inventory levels? - Management indicated that the next two quarters are critical for reaching inventory equilibrium, with expectations for improvement in the healthcare business [27][97] Question: What is the status of pricing in the Contact Centers segment? - Management confirmed that pricing increases have been implemented to offset higher labor costs, but demand for agents has fluctuated [29][80] Question: How does the company plan to grow market share in Branded Products? - Management emphasized the importance of acquiring salespeople from competitors and potentially pursuing M&A opportunities when leverage ratios improve [90][102] Question: Is the company comfortable with its current covenant compliance? - Management expressed confidence in remaining compliant with covenants and does not anticipate needing further amendments [107]