Q3 2024 Superior Group of Companies Inc Earnings Call Transcript
Key Points
- Superior Group Of Companies Inc (SGC) achieved a 10% increase in revenues year-over-year, marking the highest quarterly revenues ever achieved in their core products and services.
- EBITDA increased by 26% to $11.7 million, with a margin expansion of a full percentage point to 7.8%.
- The healthcare apparel segment saw an 11% revenue increase, benefiting from growth in online channels and improved gross margins.
- Branded products segment also experienced an 11% revenue growth, driven by increased volume with existing customers and new customer acquisitions.
- The company generated another quarter of positive operating cash flow, strengthening its financial foundation and improving its net leverage ratio.
- Despite improvements, there is still customer hesitancy due to ongoing uncertainties around inflation, interest rates, and geopolitical conflicts.
- The contact centers segment experienced a decline in EBITDA margin from 16.8% to 12.1%, impacted by increased agent costs and investments in talent.
- SG&A expenses increased to $52 million, up from $47 million a year earlier, driven by employee-related costs and marketing investments.
- There are ongoing supply chain challenges, including container shortages and logistics delays, affecting the timely delivery of products.
- Existing customers in the contact centers segment showed lower revenues, indicating potential volatility and unpredictability in customer demand.
Good afternoon, everyone. Welcome to the Superior Group of companies' third quarter, 2024. Conference call with us today are Michael Benstock, Chief Executive Officer and Mike Campo, 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 limit 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 involve 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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