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FOR IMMEDIATE RELEASE

 

SUPERIOR GROUP OF COMPANIES REPORTS THIRD QUARTER 2025 RESULTS

 

– Total net sales of $138.5 million, compared to $149.7 million in prior year third quarter
– Net income of $2.7 million, compared to $5.4 million in prior year third quarter 
– EBITDA of $7.5 million, compared to $11.7 million in prior year third quarter
– Board of Directors approves $0.14 per share quarterly dividend –

 

ST. PETERSBURG, Fla., November 3, 2025 – Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its third quarter 2025 results.

 

“Our earnings were as expected, demonstrating solid sequential progress from the second quarter and our updated full-year outlook reflects a higher mid-point,” said Michael Benstock, Chief Executive Officer. "We were also able to meaningfully improve SG&A, which bodes well for future profitability as greater economic clarity emerges. For now, our enhanced selling capabilities and competitive advantages continue to drive growth in our business pipelines, even during this period of volatile trade policy and uncertainty for customers and prospects. We are leveraging our diverse supply base and offering alternative products and solutions, while also benefiting from our own diversity across business segments and the end markets we serve. With our strong balance sheet, we can invest for future growth while paying an attractive dividend as we work to create long-term shareholder value.”

 

Third Quarter Results

 

For the third quarter ended September 30, 2025, net sales were $138.5 million, compared to third quarter 2024 net sales of $149.7 million. Pretax earnings of $3.2 million compared to $6.6 million in the third quarter of 2024. Net earnings of $2.7 million or $0.18 per diluted share compared to net income of $5.4 million or $0.33 per diluted share for the third quarter of 2024.

 

Third Quarter 2025 Dividend

 

The Board of Directors declared a quarterly dividend of $0.14 per share, payable November 28, 2025 to shareholders of record as of November 14, 2025.

 

2025 Full-Year Outlook

 

The Company is updating its full-year revenue outlook range from $550 million to $575 million to $560 million to $570 million.

 

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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 17, 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 6514610 for replay access.

 

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 Companys 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 Companys 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 Companys financial statements and to maintain effective internal control over financial reporting; and other factors described in the Companys 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 September 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

 

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SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except shares and per share data)

  

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2025

   

2024

   

2025

   

2024

 

Net sales

  $ 138,467     $ 149,690     $ 419,609     $ 420,268  
                                 

Costs and expenses:

                               

Cost of goods sold

    85,389       89,144       260,764       253,650  

Selling and administrative expenses

    48,513       52,404       150,855       149,906  

Interest expense, net

    1,378       1,569       3,873       4,897  
      135,280       143,117       415,492       408,453  

Income before income tax expense

    3,187       6,573       4,117       11,815  

Income tax expense

    443       1,170       580       1,900  

Net income

  $ 2,744     $ 5,403     $ 3,537     $ 9,915  
                                 

Net income per share:

                               

Basic

  $ 0.19     $ 0.34     $ 0.24     $ 0.62  

Diluted

  $ 0.18     $ 0.33     $ 0.23     $ 0.60  
                                 

Weighted average shares outstanding during the period:

                               

Basic

    14,738,863       16,107,549       15,050,834       16,118,885  

Diluted

    15,119,050       16,543,990       15,422,144       16,588,914  
                                 

Cash dividends per common share

  $ 0.14     $ 0.14     $ 0.42     $ 0.42  

   

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SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except shares and par value data)

 

   

September 30,

   

December 31,

 
   

2025

   

2024

 
   

(Unaudited)

         

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 16,651     $ 18,766  

Accounts receivable, net

    97,415       95,092  

Inventories

    105,655       96,675  

Contract assets

    48,623       51,688  

Prepaid expenses and other current assets

    11,685       10,831  

Total current assets

    280,029       273,052  

Property, plant and equipment, net

    38,830       41,879  

Operating lease right-of-use assets

    12,726       15,567  

Deferred tax asset

    13,828       13,835  

Intangible assets, net

    48,440       51,137  

Goodwill

    2,434       2,304  

Other assets

    18,985       17,360  

Total assets

  $ 415,272     $ 415,134  
                 

LIABILITIES AND SHAREHOLDERS’ EQUITY

               

Current liabilities:

               

Accounts payable

  $ 45,727     $ 50,942  

Other current liabilities

    42,902       44,367  

Current portion of long-term debt

    6,094       5,625  

Current portion of acquisition-related contingent liabilities

    648       814  

Total current liabilities

    95,371       101,748  

Long-term debt

    93,906       80,410  

Long-term pension liability

    13,614       13,315  

Long-term acquisition-related contingent liabilities

    743       935  

Long-term operating lease liabilities

    7,875       10,486  

Other long-term liabilities

    9,927       9,384  

Total liabilities

    221,436       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 15,968,792 and 16,484,921 shares, respectively

    15       16  

Additional paid-in capital

    84,541       84,060  

Retained earnings

    112,561       120,139  

Accumulated other comprehensive loss, net of tax:

    (3,281 )     (5,359 )

Total shareholders’ equity

    193,836       198,856  

Total liabilities and shareholders’ equity

  $ 415,272     $ 415,134  

 

 

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SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

   

Nine Months Ended September 30,

 
   

2025

   

2024

 

CASH FLOWS FROM OPERATING ACTIVITIES

               

Net income

  $ 3,537     $ 9,915  

Adjustments to reconcile net income to net cash provided by operating activities:

               

Depreciation and amortization

    9,157       9,872  

Inventory write-downs

    1,793       1,893  

Credit loss expense

    2,347       251  

Share-based compensation expense

    3,916       2,905  

Change in fair value of acquisition-related contingent liabilities

    659       363  

Non-cash operating lease expense

    2,843       1,625  

Other, net

    244       653  

Changes in assets and liabilities, net of acquisition of a business:

               

Accounts receivable

    (3,710 )     3,891  

Contract assets

    3,326       (1,671 )

Inventories

    (10,535 )     2,241  

Prepaid expenses and other current assets

    (423 )     (1,292 )

Other assets

    (1,692 )     (959 )

Accounts payable and other current liabilities

    (10,636 )     (5,917 )

Payment of acquisition-related contingent liabilities

    (791 )     (686 )

Other long-term liabilities

    1,235       1,413  

Net cash provided by operating activities

    1,270       24,497  
                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Additions to property, plant and equipment

    (3,407 )     (2,911 )

Net cash used in investing activities

    (3,407 )     (2,911 )
                 

CASH FLOWS FROM FINANCING ACTIVITIES

               

Borrowings under revolving lines of credit

    76,000       31,000  

Payments under revolving lines of credit

    (58,000 )     (37,000 )

Payments of term loan

    (4,218 )     (3,281 )

Payment of cash dividends

    (6,713 )     (6,994 )

Payment of acquisition-related contingent liabilities

    (226 )     (897 )

Proceeds received on exercise of stock options and payments for shares withheld for taxes

    90       1,118  

Common shares repurchased and retired

    (7,928 )     (6,346 )

Net cash used in financing activities

    (995 )     (22,400 )
                 

Effect of currency exchange rates on cash

    1,017       (709 )

Net decreases in cash and cash equivalents

    (2,115 )     (1,523 )

Cash and cash equivalents balance, beginning of period

    18,766       19,896  

Cash and cash equivalents balance, end of period

  $ 16,651     $ 18,373  

 

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SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2025

   

2024

   

2025

   

2024

 

Net income

  $ 2,744     $ 5,403     $ 3,537     $ 9,915  

Interest expense, net

    1,378       1,569       3,873       4,897  

Income tax expense

    443       1,170       580       1,900  

Depreciation and amortization

    2,975       3,252       9,157       9,872  

Impairment charge

    -       260       -       260  

EBITDA(1)

  $ 7,540     $ 11,654     $ 17,147     $ 26,844  

EBITDA margin(1)

    5.4 %     7.8 %     4.1 %     6.4 %

 

(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.

 

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SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS

(Unaudited)

(In thousands)

 

   

Branded Products

   

Healthcare Apparel

   

Contact Centers

   

Intersegment Eliminations

   

Other

   

Total

 

For the Three Months Ended September 30, 2025:

                                               

Net sales

  $ 85,095     $ 31,520     $ 22,664     $ (812 )   $ -     $ 138,467  

Cost of goods sold

    55,466       19,394       10,669       (140 )     -       85,389  

Gross margin

    29,629       12,126       11,995       (672 )     -       53,078  

Selling and administrative expenses

    23,501       9,779       10,283       (672 )     5,622       48,513  

Depreciation and amortization

    1,396       832       661       -       86       2,975  

Segment EBITDA(1)

  $ 7,524     $ 3,179     $ 2,373     $ -     $ (5,536 )   $ 7,540  
                                                 
   

Branded Products

   

Healthcare Apparel

   

Contact Centers

   

Intersegment Eliminations

   

Other

   

Total

 

For the Three Months Ended September 30, 2024:

                                               

Net sales

  $ 92,547     $ 33,025     $ 25,038     $ (920 )   $ -     $ 149,690  

Cost of goods sold

    59,037       19,216       11,296       (405 )     -       89,144  

Gross margin

    33,510       13,809       13,742       (515 )     -       60,546  

Selling and administrative expenses

    24,223       11,240       11,482       (515 )     5,974       52,404  

Impairment charge

    -       260       -       -       -       260  

Depreciation and amortization

    1,446       944       770       -       92       3,252  

Segment EBITDA(1)

  $ 10,733     $ 3,773     $ 3,030     $ -     $ (5,882 )   $ 11,654  
                                                 
    Branded Products     Healthcare Apparel     Contact Centers     Intersegment Eliminations     Other     Total  

For the Nine Months Ended September 30, 2025:

                                               

Net sales

  $ 264,216     $ 87,036     $ 70,866     $ (2,509 )   $ -     $ 419,609  

Cost of goods sold

    173,884       54,761       33,277       (1,158 )     -       260,764  

Gross margin

    90,332       32,275       37,589       (1,351 )     -       158,845  

Selling and administrative expenses

    72,353       29,383       32,816       (1,351 )     17,654       150,855  

Depreciation and amortization

    4,271       2,598       2,022       -       266       9,157  

Segment EBITDA(1)

  $ 22,250     $ 5,490     $ 6,795     $ -     $ (17,388 )   $ 17,147  
                                                 
    Branded Products     Healthcare Apparel     Contact Centers     Intersegment Eliminations     Other     Total  

For the Nine Months Ended September 30, 2024:

                                               

Net sales

  $ 260,911     $ 88,854     $ 73,422     $ (2,919 )   $ -     $ 420,268  

Cost of goods sold

    167,534       53,335       34,075       (1,294 )     -       253,650  

Gross margin

    93,377       35,519       39,347       (1,625 )     -       166,618  

Selling and administrative expenses

    70,486       30,931       32,436       (1,625 )     17,678       149,906  

Impairment charge

    -       260       -       -       -       260  

Depreciation and amortization

    4,513       2,837       2,246       -       276       9,872  

Segment EBITDA(1)

  $ 27,404     $ 7,685     $ 9,157     $ -     $ (17,402 )   $ 26,844  

 

(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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