Superior Group of Companies Reports Third Quarter 2024 Results
– Total net sales of $149.7 million up from $136.1 million in prior year third quarter, – Net income of $5.4 million up from $3.1 million in prior year third quarter – – EBITDA of $11.7 million up from $9.3 million in prior year third quarter, – Board of Directors approves $0.14 per share quarterly dividend – – Reaffirms full-year outlook –
ST. PETERSBURG, Fla., Nov. 06, 2024 (GLOBE NEWSWIRE) -- Superior Group of Companies, Inc. (NASDAQ:SGC) (the "Company"), today announced its third quarter 2024 results.
"We grew our sales and profit both sequentially from the prior quarter and year over year, representing our strongest quarterly results of 2024 despite only modest improvement in macro-related customer sentiment," said Michael Benstock, Chief Executive Officer. "We also continue to drive solid operating cash flow as our entire team is focused on driving sales by leveraging our ongoing growth-oriented investments in people, products and technology, while striving to further optimize efficiencies and margins. Today we are reaffirming our full-year outlook and are pleased to report that our Board has again approved a quarterly dividend. Superior Group of Companies is as energized as ever by our multitude of opportunities to gain market share across the attractive end markets we serve in our quest to further enhance long-term shareholder value."
Third Quarter Results
For the third quarter ended September 30, 2024, net sales increased 10.0% to $149.7 million compared to third quarter 2023 net sales of $136.1 million. Pretax income increased to $6.6 million compared to $3.3 million in the third quarter of 2023. Net income increased to $5.4 million or $0.33 per diluted share compared to $3.1 million or $0.19 per diluted share for the third quarter of 2023.
Fourth Quarter 2024 Dividend
The Board of Directors declared a quarterly dividend of $0.14 per share, payable November 27, 2024 to shareholders of record as of November 13, 2024.
2024 Full-Year Outlook
The Company is maintaining its full year 2024 sales outlook range of $563 million to $570 million, versus 2023 sales of $543 million, and maintaining its full-year earnings per diluted share forecast of $0.73 to $0.79 versus $0.54 in 2023.
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 November 20, 2024. 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 5346270 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; 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's ability to successfully remediate its material weakness in internal control over financial reporting 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, 2023 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. 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
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In thousands, except shares and per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Net sales
$
149,690
$
136,126
$
420,268
$
396,061
Costs and expenses:
Cost of goods sold
89,144
82,928
253,650
248,159
Selling and administrative expenses
52,215
47,246
149,339
134,007
Other periodic pension costs
189
214
567
642
Interest expense
1,569
2,464
4,897
7,658
143,117
132,852
408,453
390,466
Income before income tax expense
6,573
3,274
11,815
5,595
Income tax expense
1,170
160
1,900
380
Net income
$
5,403
$
3,114
$
9,915
$
5,215
Net income per share:
Basic
$
0.34
$
0.19
$
0.62
$
0.33
Diluted
$
0.33
$
0.19
$
0.60
$
0.32
Weighted average shares outstanding during the period:
Basic
16,107,549
15,992,792
16,118,885
15,954,264
Diluted
16,543,990
16,155,355
16,588,914
16,132,832
Cash dividends per common share
$
0.14
$
0.14
$
0.42
$
0.42
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except shares and par value data)
September 30,
December 31,
2024
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
18,373
$
19,896
Accounts receivable, less allowance for doubtful accounts of $3,836 and $4,237, respectively
98,822
103,494
Inventories
93,771
98,067
Contract assets
50,326
48,715
Prepaid expenses and other current assets
10,177
9,188
Total current assets
271,469
279,360
Property, plant and equipment, net
42,859
46,890
Operating lease right-of-use assets
16,282
17,909
Deferred tax asset
12,333
12,356
Intangible assets, net
47,959
51,160
Other assets
16,448
14,775
Total assets
$
407,350
$
422,450
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
46,292
$
50,520
Other current liabilities
42,381
43,978
Current portion of long-term debt
5,625
4,688
Current portion of acquisition-related contingent liabilities
740
1,403
Total current liabilities
95,038
100,589
Long-term debt
78,755
88,789
Long-term pension liability
13,517
13,284
Long-term acquisition-related contingent liabilities
-
557
Long-term operating lease liabilities
