Q2 2024 Superior Group of Companies Inc Earnings Call Transcript
Key Points
- Superior Group Of Companies Inc (SGC) achieved a 2% increase in consolidated revenues, reaching $132 million in the second quarter.
- The company maintained a strong net leverage ratio, enabling strategic investments and readiness for M&A opportunities.
- Contact Centers segment showed a 9% year-over-year revenue growth, indicating strong demand and potential for future expansion.
- The company reported a 170 basis point expansion in consolidated gross margin, reaching 38.5%, driven by improved supply chain costs and pricing.
- SGC reduced its debt outstanding by $12 million during the quarter, improving its financial position.
- EBITDA decreased to $5.6 million from $7.4 million in the prior-year period, with a margin decline from 5.8% to 4.2%.
- Healthcare Apparel segment experienced a 5% sales decline due to softness in store-based uniform wholesale business and supply chain issues.
- SG&A expenses increased to $48 million, up from $43 million a year earlier, driven by higher sales-related compensation and marketing expenses.
- Second quarter diluted EPS dropped to $0.04 from $0.08 in the prior-year quarter, reflecting lower profitability.
- Supply chain delays impacted revenue recognition, with several million dollars of revenue pushed to the third quarter.
Good afternoon, everyone. Welcome to the Superior Group of Companies Second Quarter 2024 Conference Call. With us today are Michael Benstock, Chief Executive Officer; and Mike Koempel, Chief Financial Officer. As a reminder, this conference call is being recorded.
This call may contain forward-looking statements regarding the company's plans, initiatives and strategies and the anticipated financial performance of the company, including but not limited to sales and profitability. Such statements are based upon management's current expectations, projections, estimates and assumptions. Words such as expect, believe, anticipate, think, outlook, hope and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involves known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements.
Such risks and uncertainties are further disclosed in the company's periodic filings with the Securities and Exchange Commission, including, but not limited to the
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