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Superior Group of Companies Reports Second Quarter 2025 Results

1. SGC's Q2 2025 sales rose 9% to $144 million. 2. Net income increased to $1.6 million, a significant year-over-year growth. 3. SGC declared a quarterly dividend of $0.14 per share. 4. The company repurchased $4 million worth of shares this quarter. 5. Full-year revenue outlook remains at $550 million to $575 million.

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$11.3508/06 10:58 PM EDTLatest Updated
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FAQ

Why Bullish?

Strong growth in sales and profits may attract investors. In previous instances, such earnings growth led to short-term price increases.

How important is it?

Positive financial results usually correlate with price appreciation in SGC's stock performance. The announced dividend and repurchases also enhance shareholder confidence.

Why Short Term?

Immediate results could drive investor sentiment. Historical performance in similar cases suggests potential for short-lived gains.

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– Total net sales of $144.0 million, up 9% over $131.7 million in prior year second quarter – – Net income of $1.6 million, up from $0.6 million in prior year second quarter – – EBITDA of $6.1 million, up 9% over $5.6 million in prior year second quarter – – Continued to execute on stock repurchase plan – – Board of Directors approves $0.14 per share quarterly dividend – ST. PETERSBURG, Fla., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its second quarter 2025 results. “We were able to grow revenue 9% over the prior year, led by Branded Products sales climbing a very healthy 14%, resulting in strong sequential improvement from the first quarter,” said Michael Benstock, Chief Executive Officer. “We are experiencing modest improvement in client sentiment and we will continue to leverage our diverse sourcing channels and marketing strategies to make the most of market conditions. With our strong balance sheet and cost actions taken during the year, we’re able to navigate changing market conditions, invest for future growth and return capital to shareholders whenever possible. In addition to our consistent dividend, during the quarter we also continued to repurchase shares which we consider a compelling value.” Second Quarter Results For the second quarter ended June 30, 2025, net sales were $144.0 million, up from second quarter 2024 net sales of $131.7 million. Pretax earnings of $1.8 million were up from $0.7 million in the second quarter of 2024. Net earnings of $1.6 million or $0.10 per diluted share were up from net income of $0.6 million or $0.04 per diluted share for the second quarter of 2024. Second Quarter 2025 Dividend The Board of Directors declared a quarterly dividend of $0.14 per share, payable August 29, 2025 to shareholders of record as of August 18, 2025. Share Repurchase Update The Company allocated $4.0 million to repurchasing approximately 390,000 shares during the second quarter, resulting in $12.3 million remaining under its existing repurchase authorization at quarter end. 2025 Full-Year Outlook The Company is maintaining its full-year revenue outlook range of $550 million to $575 million. Webcast and Conference Call The Company will host a webcast and conference call at 5:00 pm Eastern Time today. The live webcast and archived replay can be accessed in the investor relations section of the Company's website at https://ir.superiorgroupofcompanies.com/Presentations. Interested individuals may also join the teleconference by dialing 1-844-861-5505 for U.S. dialers and 1-412-317-6586 for International dialers. The Canadian Toll-Free number is 1-866-605-3852. Please ask to be joined to the Superior Group of Companies call. A telephone replay of the teleconference will be available through August 19, 2025. To access the replay, dial 1-877-344-7529 in the United States or 1-412-317-0088 from international locations. Canadian dialers can access the replay at 855-669-9658. Please reference conference number 7254182 for replay access. The Company’s website at https://ir.superiorgroupofcompanies.com/Presentations will also contain an updated investor presentation. Disclosure Regarding Forward Looking Statements Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by use of the words “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “potential,” or “plan” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements in this press release may include, without limitation: (1) projections of revenue, income, and other items relating to our financial position and results of operations, including short term and long term plans for cash, (2) statements of our plans, objectives, strategies, goals and intentions, (3) statements regarding the capabilities, capacities, market position and expected development of our business operations and (4) statements of expected industry and general economic trends. Such forward-looking statements are subject to certain risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the following: the impact of competition; the effect of existing and/or new or expanded tariffs, uncertainties related to supply disruptions, inflationary environment (including with respect to the cost of finished goods and raw materials and shipping costs), employment levels (including labor shortages), and general economic and political conditions in the areas of the world in which the Company operates or from which it sources its supplies or the areas of the United States of America (“U.S.” or “United States”) in which the Company’s customers are located; changes in the healthcare, retail chain, food service, transportation and other industries where uniforms and service apparel are worn; our ability to identify suitable acquisition targets, discover liabilities associated with such businesses during the diligence process, successfully integrate any acquired businesses, or successfully manage our expanding operations; the price and availability of raw materials; attracting and retaining senior management and key personnel; the effect of the Company’s previously disclosed material weakness in internal control over financial reporting; the Company may identify a material weakness in internal control in the future, which could result in us not preventing or detecting on a timely basis a material misstatement of the Company’s financial statements and to maintain effective internal control over financial reporting; and other factors described in the Company’s filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. 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. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law. About Superior Group of Companies, Inc. (SGC): Established in 1920, Superior Group of Companies is comprised of three attractive business segments each serving large, fragmented and growing addressable markets. Across Healthcare Apparel, Branded Products and Contact Centers, each segment enables businesses to create extraordinary brand engagement experiences for their customers and employees. SGC’s commitment to service, quality, advanced technology, and omnichannel commerce provides unparalleled competitive advantages. We are committed to enhancing shareholder value by continuing to pursue a combination of organic growth and strategic acquisitions. For more information, visit www.superiorgroupofcompanies.com. Investor Relations Contact:Investors@Superiorgroupofcompanies.com  SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In thousands, except shares and per share data)  Three Months Ended June 30,  Six Months Ended June 30,  2025  2024  2025  2024 Net sales$144,045  $131,736  $281,142  $270,578                 Costs and expenses:               Cost of goods sold 88,719   80,981   175,375   164,506 Selling and administrative expenses 52,240   48,564   102,342   97,502 Interest expense, net 1,250   1,541   2,495   3,328   142,209   131,086   280,212   265,336 Income before income tax expense 1,836   650   930   5,242 Income tax expense 285   50   137   730 Net income$1,551  $600  $793  $4,512                 Net income per share:               Basic$0.10  $0.04  $0.05  $0.28 Diluted$0.10  $0.04  $0.05  $0.27                 Weighted average shares outstanding during the period:               Basic 14,813,984   16,221,073   15,206,819   16,124,553 Diluted 15,101,942   16,769,297   15,573,692   16,611,375                 Cash dividends per common share$0.14  $0.14  $0.28  $0.28   SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except shares and par value data)  June 30,  December 31,  2025  2024  (Unaudited)     ASSETS       Current assets:       Cash and cash equivalents$21,026  $18,766 Accounts receivable, net 94,194   95,092 Inventories 106,597   96,675 Contract assets 53,762   51,688 Prepaid expenses and other current assets 10,003   10,831 Total current assets 285,582   273,052 Property, plant and equipment, net 40,221   41,879 Operating lease right-of-use assets 13,746   15,567 Deferred tax asset 13,830   13,835 Intangible assets, net 49,320   51,137 Goodwill 2,434   2,304 Other assets 18,123   17,360 Total assets$423,256  $415,134         LIABILITIES AND SHAREHOLDERS’ EQUITY       Current liabilities:       Accounts payable$56,464  $50,942 Other current liabilities 41,610   44,367 Current portion of long-term debt 5,625   5,625 Current portion of acquisition-related contingent liabilities 1,600   814 Total current liabilities 105,299   101,748 Long-term debt 93,720   80,410 Long-term pension liability 13,514   13,315 Long-term acquisition-related contingent liabilities 668   935 Long-term operating lease liabilities 8,711   10,486 Other long-term liabilities 9,268   9,384 Total liabilities 231,180   216,278 Shareholders’ equity:       Preferred stock, $.001 par value - authorized 300,000 shares (none issued) -   - Common stock, $.001 par value - authorized 50,000,000 shares, issued and outstanding 15,917,963 and 16,484,921 shares, respectively 15   16 Additional paid-in capital 83,285   84,060 Retained earnings 112,017   120,139 Accumulated other comprehensive loss, net of tax: (3,241)  (5,359)Total shareholders’ equity 192,076   198,856 Total liabilities and shareholders’ equity$423,256  $415,134   SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(In thousands)  Six Months Ended June 30,  2025  2024 CASH FLOWS FROM OPERATING ACTIVITIES       Net income$793  $4,512 Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization 6,182   6,620 Inventory write-downs 1,042   888 Credit loss expense 2,100   (383)Share-based compensation expense 2,561   1,620 Change in fair value of acquisition-related contingent liabilities 520   296 Other, net 182   775 Changes in assets and liabilities, net of acquisition of a business:       Accounts receivable (569)  10,578 Contract assets (1,682)  (4,526)Inventories (10,692)  3,936 Prepaid expenses and other current assets 1,267   (1,309)Other assets (789)  (761)Accounts payable and other current liabilities 1,740   (6,424)Other long-term liabilities 291   478 Net cash provided by operating activities 2,946   16,300         CASH FLOWS FROM INVESTING ACTIVITIES       Additions to property, plant and equipment (2,716)  (1,974)Net cash used in investing activities (2,716)  (1,974)        CASH FLOWS FROM FINANCING ACTIVITIES       Borrowings under revolving lines of credit 57,000   10,000 Payments under revolving lines of credit (41,000)  (24,000)Payments of term loan (2,812)  (1,875)Payment of cash dividends (4,515)  (4,657)Payment of acquisition-related contingent liabilities -   (557)Proceeds received on exercise of stock options and payments for shares withheld for taxes 189   1,076 Common shares repurchased and retired (7,926)  - Net cash provided by (used in) financing activities 936   (20,013)        Effect of currency exchange rates on cash 1,094   (835)Net increase in cash and cash equivalents 2,260   (6,522)Cash and cash equivalents balance, beginning of period 18,766   19,896 Cash and cash equivalents balance, end of period$21,026  $13,374   SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESNON-GAAP FINANCIAL MEASURES(Unaudited)(In thousands)  Three Months Ended June 30,  Six Months Ended June 30,  2025  2024  2025  2024 Net income$1,551  $600  $793  $4,512 Interest expense, net 1,250   1,541   2,495   3,328 Income tax expense 285   50   137   730 Depreciation and amortization 2,978   3,368   6,182   6,620 EBITDA(1)$6,064  $5,559  $9,607  $15,190 EBITDA margin(1) 4.2%  4.2%  3.4%  5.6%  (1) EBITDA, which is a non-GAAP financial measure, is defined as net income excluding interest expense, net, income tax expense and depreciation and amortization expense. EBITDA margin is defined as EBITDA divided by net sales. The Company believes EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company’s core operating results from period to period by removing (i) the impact of the Company’s capital structure (interest expense from outstanding debt), (ii) tax consequences and (iii) asset base (depreciation and amortization). The Company uses EBITDA internally to monitor operating results and to evaluate the performance of its business. In addition, the compensation committee has used EBITDA in evaluating certain components of executive compensation, including performance-based annual incentive programs. EBITDA is not a measure of financial performance under GAAP. EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA are significant components in understanding and assessing the Company’s results of operations. The Company’s EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner.  SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESSUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS(Unaudited)(In thousands)  Branded Products  Healthcare Apparel  Contact Centers  Intersegment Eliminations  Other  Total For the Three Months Ended June 30, 2025:                       Net sales$92,647  $28,253  $23,977  $(832) $-  $144,045 Cost of goods sold 59,631   18,237   11,364   (513)  -   88,719 Gross margin 33,016   10,016   12,613   (319)  -   55,326 Selling and administrative expenses 25,432   10,078   11,612   (319)  5,437   52,240 Depreciation and amortization 1,395   854   639   -   90   2,978 Segment EBITDA(1)$8,979  $792  $1,640  $-  $(5,347) $6,064                          Branded Products  Healthcare Apparel  Contact Centers  Intersegment Eliminations  Other  Total For the Three Months Ended June 30, 2024:                       Net sales$81,296  $26,592  $24,832  $(984) $-  $131,736 Cost of goods sold 53,170   16,392   11,871   (452)  -   80,981 Gross margin 28,126   10,200   12,961   (532)  -   50,755 Selling and administrative expenses 22,969   9,879   10,533   (532)  5,715   48,564 Depreciation and amortization 1,567   956   753   -   92   3,368 Segment EBITDA(1)$6,724  $1,277  $3,181  $-  $(5,623) $5,559                          Branded Products  Healthcare Apparel  Contact Centers  Intersegment Eliminations  Other  Total For the Six Months Ended June 30, 2025:                       Net sales$179,121  $55,516  $48,202  $(1,697) $-  $281,142 Cost of goods sold 118,418   35,367   22,608   (1,018)  -   175,375 Gross margin 60,703   20,149   25,594   (679)  -   105,767 Selling and administrative expenses 48,852   19,604   22,533   (679)  12,032   102,342 Depreciation and amortization 2,875   1,766   1,361   -   180   6,182 Segment EBITDA(1)$14,726  $2,311  $4,422  $-  $(11,852) $9,607                          Branded Products  Healthcare Apparel  Contact Centers  Intersegment Eliminations  Other  Total For the Six Months Ended June 30, 2024:                       Net sales$168,364  $55,829  $48,384  $(1,999) $-  $270,578 Cost of goods sold 108,497   34,119   22,779   (889)  -   164,506 Gross margin 59,867   21,710   25,605   (1,110)  -   106,072 Selling and administrative expenses 46,263   19,691   20,954   (1,110)  11,704   97,502 Depreciation and amortization 3,067   1,893   1,476   -   184   6,620 Segment EBITDA(1)$16,671  $3,912  $6,127  $-  $(11,520) $15,190   (1) Segment EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting”. Amounts included in income before income tax expense and excluded from Segment EBITDA include: interest expense, net and depreciation and amortization expense. Total EBITDA is a non-GAAP financial measure. Please see reconciliation of Total EBITDA included in the Non-GAAP Financial Measures table above.

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