Superior of panies(US:SGC)2025-05-08 21:06Sales Performance - Consolidated net sales decreased by 1.3%, or $1.7 million, for the three months ended March 31, 2025, compared to the same period in 2024[77]. - Branded Products segment net sales decreased by 0.7%, or $0.6 million, primarily due to volume decreases in branded uniform apparel within existing customer accounts[78]. - Healthcare Apparel segment net sales decreased by 6.8%, or $2.0 million, primarily due to volume decreases in institutional apparel within existing customer accounts[79]. - Contact Centers segment net sales increased by 2.9%, or $0.7 million, attributed to a mix of sales growth from new and existing customers[80]. Gross Margin and Expenses - Consolidated gross margin decreased to 36.8% for the three months ended March 31, 2025, down from 39.8% in the same period in 2024[81]. - Gross margin rate for Branded Products segment decreased to 32.0% from 36.5% year-over-year, driven by higher product costs and lower pricing[82]. - Gross margin rate for Healthcare Apparel segment decreased to 37.2% from 39.4% year-over-year, primarily due to higher costs of goods[83]. - Total selling and administrative expenses increased to 36.5% of net sales for the three months ended March 31, 2025, compared to 35.2% in the same period in 2024[84]. Financial Results - The Company generated a net loss of $0.8 million for the three months ended March 31, 2025, compared to net income of $3.9 million in the same period in 2024[75]. - EBITDA for the three months ended March 31, 2025, was $3.5 million, a decrease of 63.3% from $9.6 million in the same period of 2024[105]. - The net (loss) income for the three months ended March 31, 2025, was $(758,000), compared to a net income of $3.9 million in the same period of 2024[105]. Cash Flow and Borrowings - For the three months ended March 31, 2025, net cash used in operating activities was $2.0 million, compared to net cash provided of $9.4 million for the same period in 2024[95][96]. - The Company had $19.0 million in borrowings and $8.0 million in payments on the revolving credit facility for the three months ended March 31, 2025[98]. - The Company has access to a Revolving Credit Facility with a maximum principal amount of $125.0 million and a term loan of $75.0 million[97]. - The Company anticipates continuing to use credit facilities and other borrowings as a source of liquidity in the future[99]. Dividends and Stock Repurchase - The Company paid cash dividends of $2.3 million during the three months ended March 31, 2025, consistent with the same amount paid in 2024[100]. - A new stock repurchase plan was approved on March 7, 2025, authorizing the repurchase of up to $17.5 million worth of common stock[101]. Internal Controls and Risks - The Company expects to maintain effective internal control over financial reporting, with no changes reported during the quarter ended March 31, 2025[110]. - Forward-looking statements indicate potential risks including competition, supply disruptions, and economic conditions that may affect future performance[107].