Superior of panies(SGC) - 2023 Q4 - Annual Results

Financial Performance Overview This section provides an overview of the company's financial results for Q4 2023 and the full-year 2024 outlook Fourth Quarter 2023 Results 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] Management Commentary 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] 2024 Full-Year Outlook 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 This section presents the company's consolidated statements of operations, balance sheets, and cash flows Condensed Consolidated Statements of Operations 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 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 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 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 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 This section details the financial performance of the company's Branded Products, Healthcare Apparel, and Contact Centers segments Segment Financial Data 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 This section provides details on the conference call, company overview, and forward-looking statements Conference Call and Webcast Information 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] About Superior Group of Companies, Inc. 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] Forward-Looking Statements 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][8]