Group 1 - Superior Group of Companies, Inc. (SGC) will participate in the Barrington Research Spring Investment Conference on May 29, 2025, with virtual investor meetings hosted by CEO Michael Benstock and CFO Mike Koempel [1] - Established in 1920, Superior Group of Companies operates in three business segments: Healthcare Apparel, Branded Products, and Contact Centers, targeting large and growing markets [2] - The company focuses on enhancing shareholder value through a combination of organic growth and strategic acquisitions, emphasizing service, quality, advanced technology, and omnichannel commerce as competitive advantages [2]

Financial Data and Key Metrics Changes - The company reported a consolidated first quarter revenue decline of 1% year over year, holding revenue nearly flat despite macroeconomic headwinds [7][12] - The net loss per share for the first quarter was $0.05, compared to earnings per diluted share of $0.24 in the prior year period, primarily due to lower gross margins from sales mix changes [7][16] - Consolidated EBITDA decreased to $3.5 million from $9.6 million a year earlier, reflecting the impact of lower revenues and margins [13] Business Segment Data and Key Metrics Changes - In the Branded Products segment, revenue was down less than 1%, with promotional products growing while branded uniform sales declined due to stronger rollouts in the previous year [12][8] - Healthcare Apparel revenue fell by 7% year over year, primarily due to a decline in Institutional Healthcare Apparel [12] - The Contact Center segment grew revenue by 3%, benefiting from solid retention and growth of existing customers [12] Market Data and Key Metrics Changes - The company noted that customer buying hesitancy persisted due to inflation, interest rates, and tariffs, particularly affecting sourcing challenges [5][6] - The company maintained a strong balance sheet with $20 million in cash and cash equivalents, up from $19 million at the start of the year [16] Company Strategy and Development Direction - The company is focused on strong cost management and has eliminated approximately $13 million in annualized budget expenses to enhance profitability as demand normalizes [18] - The company is leveraging its diversified business segments and multiple sources of supply to navigate economic uncertainties [6][5] - The company aims to capitalize on market dislocations by actively repurchasing common shares, considering it a compelling value [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q2, citing a strong order backlog and customer retention over 90% [9] - The company anticipates revenue for the full year to be in the range of $550 million to $575 million, reflecting a conservative outlook due to economic uncertainties [17][18] - Management emphasized a proven track record of navigating challenging economic times and maintaining significant liquidity to support growth [18] Other Important Information - The company has a net leverage ratio of 2.2 times trailing twelve months covenant EBITDA, which is within covenant requirements [17] - The company is exploring acquisition opportunities but is currently focused on conserving cash until there is more clarity regarding tariffs [53] Q&A Session Summary Question: Discussion on the pipeline in branded products and contact centers - Management highlighted strong pipelines in both segments, with aggressive recruitment and positioning as experts in navigating tariff challenges [21][23] Question: Reduced revenue guidance and conservatism in the second half - Management confirmed a cautious approach due to current uncertainties but expects a ramp-up in the second half [30] Question: Cost perspective on tariffs and price increases - Management stated they can pass on tariff increases to most customers and are actively managing pricing strategies [31][33] Question: Impact of tariffs on customer behavior and supply chain disruptions - Management noted that even if tariffs were lifted, it would take 6 to 9 months for supply chains to normalize due to disruptions [39][41] Question: Annualized cost savings and operational efficiencies - Management confirmed $13 million in annualized savings primarily from SG&A expense reductions, which will begin to impact the second quarter [43][51] Question: Acquisition opportunities and focus areas - Management is currently conserving cash and will only consider acquisitions that are immediately accretive and at the right price [53][54] Question: Price elasticity of branded products and profitability - Management indicated flexibility in pricing strategies to recoup tariff costs while maintaining market share [58][62]