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RingCentral(RNG) - 2025 Q3 - Earnings Call Transcript
2025-11-03 23:00
Financial Data and Key Metrics Changes - The company's consolidated revenue for the third quarter was $138 million, a 7% increase compared to the previous year [11] - The gross margin for the third quarter was 38.3%, down from 40.4% in the same quarter last year [12] - Net income for the quarter was $2.7 million, up from $1.6 million in the previous quarter but down from $5.4 million in the same quarter last year [15] Business Segment Performance - Branded Products segment revenue was $85 million, down from $93 million year-over-year, attributed to order timing and lower sales volume [11][12] - Healthcare Apparel segment revenue declined by 5% to $32 million due to lower volume amid market uncertainty [12][9] - Contact Center revenue increased by 9% to $23 million, driven by new customer conversions despite existing customer losses [12][10] Market Data and Key Metrics Changes - The company noted a significant level of uncertainty among customers across all segments, impacting order sizes and timing [5][6] - The macroeconomic environment, including trade policies and inflation, continues to influence customer behavior and purchasing decisions [6][20] Company Strategy and Industry Competition - The company is focused on expanding market share in a fragmented market by recruiting more sales representatives and leveraging software automation [8] - Cost management has been emphasized, with SG&A expenses reduced by 7% or $3.9 million [6][14] - The company is actively seeking acquisition opportunities, particularly in the branded products sector, where competition is high [42][46] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about future growth as market conditions normalize, with a strong pipeline of new business opportunities [17][12] - The full-year revenue outlook has been adjusted to a range of $560 million to $570 million, indicating slight growth year-over-year at the high end [16] Other Important Information - The company maintains a strong balance sheet with $17 million in cash and equivalents, providing over $100 million in liquidity for growth plans [16] - The company has a share repurchase authorization with approximately $12 million available as of September 30 [16] Q&A Session Summary Question: Can you describe the environment for Branded Products? - Management indicated that the market has been challenged due to tariff-related volatility and macroeconomic uncertainty, but recent positive tariff announcements may help stabilize the situation [20] Question: What is the status of inventory management? - The company has been opportunistic in sourcing inventory from lower tariff jurisdictions and has communicated with clients about inventory strategies based on market conditions [23][26] Question: What is the impact of losing a client in the contact center segment? - The loss of a client had an annualized impact of about $2 million, but management sees potential for growth in the pipeline despite current challenges [28][29] Question: How is pricing power being managed? - The company has been able to pass through cost increases to customers in the Branded Products segment and has initiated price increases in the Healthcare segment to offset tariff impacts [33][35] Question: What are the expectations for revenue growth in the fourth quarter? - Revenue growth is expected to be primarily driven by the Branded Products segment, with strong bookings and a robust pipeline [37][41] Question: What are the acquisition opportunities currently? - The company sees a rich environment for acquisitions, particularly in the branded products sector, and is actively evaluating potential deals [42][46]
RingCentral(RNG) - 2025 Q3 - Earnings Call Transcript
2025-11-03 23:00
Financial Data and Key Metrics Changes - The company's consolidated revenue for Q3 2025 was $138 million, a decline of 7% compared to the same period last year [9][12] - Net income for the quarter was $2.7 million, up sequentially from $1.6 million in Q2 but down from $5.4 million in Q3 2024, resulting in earnings per diluted share of $0.18 [13] - SG&A expenses were reduced by 7%, amounting to $48 million, which is flat as a percentage of sales at 35% despite the sales decline [12][14] Business Segment Data and Key Metrics Changes - Branded products segment revenue was $85 million, down from $93 million year-over-year, impacted by order timing and lower sales volume [10][11] - Healthcare apparel revenue declined by 5% to $32 million due to lower volume with certain customers [10][11] - Contact center revenue decreased by 9% to $23 million, driven by customer downsizing and loss [10][11] Market Data and Key Metrics Changes - The overall market remains uncertain, affecting customer behavior and leading to a cautious approach in purchasing decisions [4][17] - The company noted a significant uptick in promising near-term opportunities as customers gain clarity on trade policies and economic conditions [4] Company Strategy and Development Direction - The company is focused on expanding market share in a fragmented market by recruiting more sales representatives and leveraging software automation [6] - Investments are being made in demand-driven activities while maintaining expense discipline to navigate the current economic uncertainty [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capitalizing on growth opportunities once market conditions normalize, supported by a strong pipeline of new business [12][14] - The company adjusted its full-year revenue outlook to a range of $560 million to $570 million, indicating slight growth year-over-year at the high end [14] Other Important Information - The gross margin for Q3 was 38.3%, down from 40.4% in the prior year, with specific segments experiencing varying impacts on margins due to cost structures [11] - The company maintains a strong balance sheet with $17 million in cash and equivalents, providing over $100 million in liquidity for growth plans [13][14] Q&A Session Summary Question: Can you describe the environment in branded products? - Management indicated that the market has been challenged due to tariffs and macroeconomic uncertainty, influencing customer behavior [17] Question: What is the impact of lost clients in the contact center? - The impact from a lost client is estimated at a couple of million dollars annually, but there are opportunities for growth in the pipeline [22][23] Question: How is pricing power being managed? - The company has been able to pass through cost increases to customers, particularly in the branded products and healthcare segments [24][25] Question: What are the sales trends expected for Q4? - Sales are expected to build month to month, with December anticipated to be the largest month [29] Question: What is the outlook for acquisition opportunities? - The company sees a rich environment for acquisitions, with many opportunities available due to current market conditions [30][31]
Superior of panies(SGC) - 2025 Q3 - Earnings Call Transcript
2025-11-03 23:00
Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $138 million, a decline of 7% compared to the same period last year [10] - SG&A expenses were reduced by 7%, amounting to $48 million, maintaining SG&A as a percentage of sales at 35% [11][12] - EBITDA for the quarter was $7.5 million, up sequentially from $6.1 million but down from $11.7 million year-over-year [13] - Net income was $2.7 million, an increase from $1.6 million in the previous quarter but down from $5.4 million in the same quarter last year, resulting in earnings per diluted share of $0.18 [13][14] Business Segment Data and Key Metrics Changes - Branded products segment revenue was $85 million, down from $93 million year-over-year, impacted by order timing and lower sales volume [10][11] - Healthcare apparel revenue declined by 5% to $32 million due to lower volume amid customer uncertainty [10][11] - Contact center revenue decreased by 9% to $23 million, driven by lower volume and customer downsizing [10][11] Market Data and Key Metrics Changes - The overall market remains uncertain, affecting customer behavior and order placements across all segments [4][18] - There is a significant level of caution among customers, leading to promising near-term opportunities in the pipeline as trade policies and economic conditions stabilize [4][18] Company Strategy and Development Direction - The company is focused on expanding market share in a fragmented market by recruiting more sales representatives and leveraging software automation [6] - Investments are being made in demand-driven activities while maintaining expense discipline to navigate economic uncertainties [8][15] - The company is actively exploring acquisition opportunities, particularly in the branded products segment, to enhance growth [42][44] Management's Comments on Operating Environment and Future Outlook - Management noted that while the growth environment is subdued, the pipeline remains strong, and they are focused on converting these opportunities [15] - The company is optimistic about future growth as economic uncertainty dissipates, allowing for the capture of additional market share [15] - Management expressed confidence in the ability to pass through cost increases to customers, maintaining pricing power despite economic challenges [30][32] Other Important Information - The company tightened its full-year revenue outlook to a range of $560 million to $570 million, indicating slight growth year-over-year at the high end of the range [14] - The balance sheet remains strong with $17 million in cash and cash equivalents, providing over $100 million in liquidity for growth plans [14] Q&A Session Summary Question: Can you describe the environment for branded products? - Management indicated that the market has been challenged due to tariffs and macroeconomic uncertainty, but recent tariff announcements are seen as positive [18][19] Question: Where are you in working off the inventory purchased in advance? - The company has been opportunistic in sourcing inventory from lower tariff jurisdictions and has communicated with clients about inventory management [22][23] Question: What is the impact of losing a client in the contact center? - The annualized impact from the lost client is about a couple of million dollars, but there are opportunities for growth in the pipeline [26] Question: Can you talk about your pricing power? - The company has been able to pass through cost increases to customers, maintaining pricing power despite economic pressures [30][32] Question: What are your expectations for revenue growth in Q4? - Revenue growth is expected to be primarily driven by the branded products segment, with strong bookings and a robust pipeline [34][40] Question: What are the acquisition opportunities currently? - The company sees a rich field for acquisitions, particularly in the branded products segment, and is actively evaluating potential deals [42][44]
Superior Group of Companies Reports Third Quarter 2025 Results
Globenewswire· 2025-11-03 21:05
Core Insights - The company reported total net sales of $138.5 million for Q3 2025, a decrease from $149.7 million in Q3 2024, indicating a year-over-year decline of approximately 7.9% [1][3] - Net income for Q3 2025 was $2.7 million, down from $5.4 million in the same quarter last year, reflecting a decline of about 50% [1][3] - EBITDA for Q3 2025 was $7.5 million, compared to $11.7 million in Q3 2024, representing a decrease of approximately 36% [1][3][20] - The Board of Directors declared a quarterly dividend of $0.14 per share, payable on November 28, 2025 [4] Financial Performance - For the third quarter ended September 30, 2025, net sales were $138.5 million, down from $149.7 million in Q3 2024 [3] - Pretax earnings were $3.2 million compared to $6.6 million in Q3 2024 [3] - Net earnings were $2.7 million or $0.18 per diluted share, compared to $5.4 million or $0.33 per diluted share in Q3 2024 [3][20] Dividend Declaration - The Board approved a quarterly dividend of $0.14 per share, with a record date of November 14, 2025 [4] Full-Year Outlook - The company updated its full-year revenue outlook range from $550 million to $575 million to a new range of $560 million to $570 million [5] Management Commentary - The CEO noted solid sequential progress from the second quarter and emphasized improvements in selling, general, and administrative expenses, which are expected to enhance future profitability [2] - The company is leveraging its diverse supply base and competitive advantages to drive growth despite current economic uncertainties [2]
Superior Group of Companies to Announce Third Quarter 2025 Results
Globenewswire· 2025-10-20 20:05
Core Viewpoint - Superior Group of Companies, Inc. will announce its third quarter 2025 operational results on November 3, 2025, after market close, followed by a teleconference to discuss the results [1]. Group 1: Upcoming Financial Results - The company will release its third quarter 2025 results after market close on November 3, 2025 [1]. - A teleconference will be hosted by the CEO and CFO at 5:00 pm Eastern Time on the same day to discuss the results [1]. Group 2: Teleconference Access - The teleconference can be accessed via a live webcast and archived replay on the company's investor relations website [2]. - Dial-in numbers for the teleconference include 1-844-861-5505 for U.S. callers, 1-412-317-6586 for international callers, and 1-866-605-3852 for Canadian toll-free access [2]. Group 3: Replay Information - A telephone replay of the teleconference will be available until November 17, 2025 [3]. - Replay access can be obtained by dialing 1-877-344-7529 in the U.S. or 1-412-317-0088 internationally, with a Canadian number of 855-669-9658 [3]. Group 4: Company Overview - Superior Group of Companies, established in 1920, operates in three business segments: Healthcare Apparel, Branded Products, and Contact Centers [4]. - The company focuses on creating brand engagement experiences and emphasizes service, quality, advanced technology, and omnichannel commerce as competitive advantages [4]. - The company aims to enhance shareholder value through organic growth and strategic acquisitions [4].
Superior Group of Companies to Participate in the Sidoti September Investor Conference
Globenewswire· 2025-09-10 20:05
Group 1 - Superior Group of Companies, Inc. will participate in a fireside chat at the Sidoti Virtual Investor Conference on September 18, 2025, at 10:45 AM Eastern Time [1] - The live webcast and replay of the conference will be available on the company's Investor Relations website [1] - Management will also host virtual meetings throughout the day of the conference [1] Group 2 - Superior Group of Companies was established in 1920 and consists of three business segments: Healthcare Apparel, Branded Products, and Contact Centers [2] - Each segment serves large, fragmented, and growing addressable markets, enabling businesses to create extraordinary brand engagement experiences [2] - The company emphasizes service, quality, advanced technology, and omnichannel commerce as competitive advantages [2] - Superior Group of Companies is committed to enhancing shareholder value through organic growth and strategic acquisitions [2]
Superior of panies(SGC) - 2025 Q2 - Earnings Call Presentation
2025-08-05 21:00
Business Overview - Superior Group of Companies operates three diversified businesses: Branded Products, Healthcare Apparel, and Contact Centers[9] - The company has shown revenue growth across all business segments, with a consolidated Compound Annual Growth Rate (CAGR) of 8%[11] - The company has paid uninterrupted dividends since 1977[10] Financial Performance - In 2024, total revenue was $566 million, compared to $377 million in 2019[12] - Branded Products revenue was $354 million in 2024, up from $228 million in 2019[12] - Healthcare Apparel revenue was $118 million in 2024, slightly up from $119 million in 2019[12] - Contact Centers revenue significantly increased to $93 million in 2024 from $31 million in 2019[12] Segment EBITDA (2024) - Branded Products EBITDA was $36287 thousand[87] - Healthcare Apparel EBITDA was $8749 thousand[87] - Contact Centers EBITDA was $12176 thousand[87]
Superior Group of Companies Reports Second Quarter 2025 Results
Globenewswire· 2025-08-05 20:05
Core Insights - The company reported total net sales of $144.0 million for the second quarter of 2025, representing a 9% increase from $131.7 million in the same period of the previous year [1][3] - Net income rose to $1.6 million, up from $0.6 million in the prior year second quarter, translating to earnings of $0.10 per diluted share compared to $0.04 per diluted share previously [1][3] - EBITDA for the quarter was $6.1 million, reflecting a 9% increase from $5.6 million in the second quarter of 2024 [1][3] Financial Performance - The company achieved a 9% growth in revenue, primarily driven by a 14% increase in Branded Products sales, indicating strong sequential improvement from the first quarter [2] - The pretax earnings for the second quarter were $1.8 million, up from $0.7 million in the same quarter of 2024 [3] - The company maintained its full-year revenue outlook in the range of $550 million to $575 million [6] Shareholder Returns - The Board of Directors declared a quarterly dividend of $0.14 per share, payable on August 29, 2025, to shareholders of record as of August 18, 2025 [4] - During the second quarter, the company allocated $4.0 million to repurchase approximately 390,000 shares, with $12.3 million remaining under its existing repurchase authorization at quarter end [5] Operational Strategy - The company is leveraging diverse sourcing channels and marketing strategies to navigate changing market conditions and invest for future growth [2] - The company continues to execute its stock repurchase plan, viewing it as a compelling value [2]
Superior Group of Companies to Announce Second Quarter 2025 Results
Globenewswire· 2025-07-22 20:05
Core Viewpoint - Superior Group of Companies, Inc. will release its second quarter 2025 operational results on August 5, 2025, after market close, followed by a teleconference to discuss the results [1] Company Overview - Superior Group of Companies was established in 1920 and operates in three business segments: Healthcare Apparel, Branded Products, and Contact Centers, targeting large and growing markets [4] - The company focuses on enhancing shareholder value through organic growth and strategic acquisitions, leveraging its commitment to service, quality, advanced technology, and omnichannel commerce [4]
Superior Group of Companies to Participate in the Sidoti June Investor Conference
Globenewswire· 2025-06-04 20:05
Company Overview - Superior Group of Companies, Inc. (SGC) was established in 1920 and operates in three business segments: Healthcare Apparel, Branded Products, and Contact Centers, which serve large, fragmented, and growing markets [2] - The company focuses on creating extraordinary brand engagement experiences for customers and employees through its commitment to service, quality, advanced technology, and omnichannel commerce, providing it with competitive advantages [2] - SGC aims to enhance shareholder value by pursuing a combination of organic growth and strategic acquisitions [2] Upcoming Events - The Chairman, President, and CEO, Michael Benstock, along with CFO Mike Koempel, will participate in a fireside chat at the Sidoti Virtual Investor Conference on June 12, 2025, at 9:15 AM Eastern Time [1] - A live webcast and replay of the event will be available on the company's Investor Relations website [1] - Management will also host virtual meetings throughout the day of the conference [1]