In This Article:
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Revenue: $150 million, up 10% year-over-year.
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EBITDA: $11.7 million, up 26% from $9.3 million.
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EBITDA Margin: Expanded to 7.8%, up 1 percentage point.
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Gross Margin: Increased by 130 basis points to 40.4%.
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SG&A Expenses: Held almost flat at 34.9% of sales.
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Earnings Per Share (EPS): Rose to 33 from 19 a year earlier.
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Operating Cash Flow: Positive, contributing to improved net leverage ratio.
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Health Care Apparel Revenue: Up 11% to $33 million.
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Branded Products Revenue: Up 11% to $93 million.
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Contact Centers Revenue: Up 4% to $25 million.
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Net Income: Improved to $5.4 million from $3.1 million.
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Interest Expense: Reduced to $1.6 million from $2.5 million.
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Debt Outstanding: $85 million, improved from $94 million at year-end 2023.
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Share Repurchases: 452,000 shares for $6.3 million, average price of $14.05 per share.
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Full Year Revenue Outlook: $563 million to $570 million.
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Full Year EPS Outlook: 73 to 79 per diluted share.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Superior Group Of Companies Inc (NASDAQ:SGC) achieved a 10% increase in revenues year-over-year, marking the highest quarterly revenues ever achieved in their core products and services.
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EBITDA increased by 26% to $11.7 million, with a margin expansion of a full percentage point to 7.8%.
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The healthcare apparel segment saw an 11% revenue increase, benefiting from growth in online channels and improved gross margins.
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Branded products segment also experienced an 11% revenue growth, driven by increased volume with existing customers and new customer acquisitions.
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The company generated another quarter of positive operating cash flow, strengthening its financial foundation and improving its net leverage ratio.
Negative Points
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Despite improvements, there is still customer hesitancy due to ongoing uncertainties around inflation, interest rates, and geopolitical conflicts.
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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.
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SG&A expenses increased to $52 million, up from $47 million a year earlier, driven by employee-related costs and marketing investments.
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There are ongoing supply chain challenges, including container shortages and logistics delays, affecting the timely delivery of products.
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Existing customers in the contact centers segment showed lower revenues, indicating potential volatility and unpredictability in customer demand.