Superior Group Q3 2026 profit slips to $2.6M
Chief Executive Officer Michael Benstock attributed quarterly sales growth to continued momentum in Branded Products and Contact Centers.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Superior Group of Companies, Inc. (SGC) reported third-quarter 2026 net sales of $146.0 million, up 5% from $138.5 million a year earlier. Net income was $2.6 million versus $2.7 million, and diluted earnings per share were $0.17 versus $0.18. Adjusted EBITDA, a non-GAAP measure, was $6.7 million compared with $7.5 million.
It tightened its full-year 2026 net sales forecast to $578.0 million to $585.0 million from $572.0 million to $585.0 million, and its adjusted earnings per diluted share forecast to $0.60 to $0.66 from $0.54 to $0.66. The stated 2025 comparisons were $566.2 million in net sales and $0.46 in adjusted earnings per diluted share. For the first nine months of 2026, net cash provided by operating activities was $30.679 million, versus $1.270 million in 2025.
Branded Products reported quarterly sales of $92.1 million and Segment Adjusted EBITDA of $9.8 million; Contact Centers reported $24.2 million and $2.9 million, respectively. Healthcare Apparel recorded $30.6 million in sales and a $0.5 million Segment Adjusted EBITDA loss, compared with $3.2 million of segment earnings in the prior-year quarter.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net sales rose 5% to $146.0 million year over year.
- Moderate pointNine-month operating cash flow was $30.679 million, versus $1.270 million.
Negative
- Moderate pointThird-quarter Adjusted EBITDA declined to $6.7 million from $7.5 million.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Adjusted EBITDA margin financial
Segment Adjusted EBITDA financial
working capital financial
trade name impairment charge financial
Earnings Snapshot
Full-year 2026 net sales forecast of $578.0 million to $585.0 million and adjusted earnings per diluted share forecast of $0.60 to $0.66.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were SGC's third-quarter 2026 sales and earnings?
What is SGC's updated 2026 financial outlook?
How did SGC's business segments perform in the third quarter of 2026?
How much operating cash flow did SGC report for the first nine months of 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Exhibit Number | Description | ||
| 99.1 | Press Release, dated November 9, 2026 | ||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SUPERIOR GROUP OF COMPANIES, INC. | |||
By: | /s/ Michael Koempel | ||
Michael Koempel | |||
President & Chief Financial Officer | |||
Exhibit 99.1
FOR IMMEDIATE RELEASE
SUPERIOR GROUP OF COMPANIES REPORTS THIRD QUARTER 2026 RESULTS
| • Total net sales of $146.0 million, up 5% over prior year third quarter |
| • Net income of $2.6 million versus $2.7 million in prior year third quarter |
| • Adjusted EBITDA of $6.7 million versus $7.5 million in prior year third quarter |
| • Tightens full-year Outlook |
ST. PETERSBURG, Fla., November 9, 2026 – Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its third quarter 2026 results.
“We drove solid overall top line growth from continued momentum in our Branded Products and Contact Centers segments,” said Michael Benstock, Chief Executive Officer. “New leadership in Healthcare Apparel continues to execute toward a more focused product strategy to improve margins and reduce working capital requirements in the quarters ahead. On a consolidated basis, we were able to hold EPS essentially flat versus the prior year quarter despite incremental charges associated with our strategic shift in Healthcare Apparel. We look forward to finishing the year with growth in both sales and earnings compared to 2025, and with a solid balance sheet that provides the foundation for continued strategic investment such as our recent acquisition of Select VoiceCom and the return of capital to shareholders.”
Third Quarter Results
For the third quarter ended September 30, 2026, net sales were $146.0 million, up 5% from third quarter 2025 net sales of $138.5 million. Net income was $2.6 million or $0.17 per diluted share compared to net income of $2.7 million or $0.18 per diluted share for the third quarter of 2025.
2026 Full-Year Outlook
The Company tightened its full-year 2026 net sales forecast to a range of $578.0 million to $585.0 million, from its previous range of $572.0 million to $585.0 million, up from 2025 net sales of $566.2 million. It also tightened its full-year adjusted earnings per diluted share forecast to a range of $0.60 to $0.66, from its previous range of $0.54 to $0.66, up from $0.46 in 2025 and representing 43% growth at the high end.
1
Webcast and Conference Call
The Company will host a webcast and conference call at 8:00am 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 23, 2026. To access the replay, dial 1-855-669-9658 in the United States or Canada, or 1-412-317-0088 from international locations. Please reference conference number 8522694 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 include 2026 guidance of net sales and earnings per diluted share and may also 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 impact of global conflicts, such as the Russia-Ukraine War and the joint U.S.-Israeli War with Iran in 2026, oil and natural gas prices, uncertainties related to tariffs, duties, trade wars and related matters, supply disruptions, inflationary environments (including with respect to shipping costs and the cost of finished goods and raw materials), 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 Company's ability to maintain effective internal control over financial reporting; and other factors described in the Company’s filings with the Securities and Exchange Commission ("SEC"), including those risks described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 entitled "Risk Factors" and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. 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
2
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
(In thousands, except shares and per share data)
| | Three Months Ended September | | | Nine Months Ended September 30, | |
||||||||||
| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
||||
Net sales | | $ | 145,994 | | | $ | 138,467 | | | $ | 434,708 | | | $ | 419,609 | |
| | | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | | |
Cost of goods sold | | | 90,168 | | | | 85,389 | | | | 270,429 | | | | 260,764 | |
Selling and administrative expenses | | | 51,866 | | | | 48,513 | | | | 153,561 | | | | 150,855 | |
Interest expense, net | | | 809 | | | | 1,378 | | | | 2,702 | | | | 3,873 | |
Trade name impairment charge | | | - | | | | - | | | | 2,600 | | | | - | |
| | | 142,843 | | | | 135,280 | | | | 429,292 | | | | 415,492 | |
Income before income tax expense | | | 3,151 | | | | 3,187 | | | | 5,416 | | | | 4,117 | |
Income tax expense | | | 580 | | | | 443 | | | | 790 | | | | 580 | |
Net income | | $ | 2,571 | | | $ | 2,744 | | | $ | 4,626 | | | $ | 3,537 | |
| | | | | | | | | | | | | | | | |
Net income per share: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.17 | | | $ | 0.19 | | | $ | 0.32 | | | $ | 0.24 | |
Diluted | | $ | 0.17 | | | $ | 0.18 | | | $ | 0.31 | | | $ | 0.23 | |
| | | | | | | | | | | | | | | | |
Weighted average shares outstanding during the period: | | | | | | | | | | | | | | | | |
Basic | | | 14,787,455 | | | | 14,738,863 | | | | 14,637,206 | | | | 15,050,834 | |
Diluted | | | 15,247,892 | | | | 15,119,050 | | | | 15,024,519 | | | | 15,422,144 | |
| | | | | | | | | | | | | | | | |
Cash dividends per common share | | $ | 0.14 | | | $ | 0.14 | | | $ | 0.42 | | | $ | 0.42 | |
3
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In thousands, except shares and par value data) |
|
| September 30, |
|
| December 31, |
|
||
|
| 2026 |
|
| 2025 |
|
||
|
| (Unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 27,924 |
|
| $ | 23,691 |
|
Accounts receivable, net |
|
| 96,273 |
|
|
| 104,336 |
|
Inventories |
|
| 87,936 |
|
|
| 97,474 |
|
Contract assets |
|
| 52,860 |
|
|
| 48,903 |
|
Prepaid expenses and other current assets |
|
| 16,741 |
|
|
| 13,259 |
|
Total current assets |
|
| 281,734 |
|
|
| 287,663 |
|
Property, plant and equipment, net |
|
| 34,250 |
|
|
| 37,352 |
|
Operating lease right-of-use assets |
|
| 11,258 |
|
|
| 12,620 |
|
Deferred tax asset |
|
| 14,954 |
|
|
| 15,003 |
|
Intangible assets, net |
|
| 42,051 |
|
|
| 47,254 |
|
Goodwill |
|
| 2,583 |
|
|
| 2,583 |
|
Other assets |
|
| 21,009 |
|
|
| 19,369 |
|
Total assets |
| $ | 407,839 |
|
| $ | 421,844 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 51,325 |
|
| $ | 48,343 |
|
Other current liabilities |
|
| 52,222 |
|
|
| 53,041 |
|
Current portion of long-term debt |
|
| 3,750 |
|
|
| 6,563 |
|
Current portion of acquisition-related contingent liabilities |
|
| 682 |
|
|
| - |
|
Total current liabilities |
|
| 107,979 |
|
|
| 107,947 |
|
Long-term debt |
|
| 74,287 |
|
|
| 87,093 |
|
Long-term pension liability |
|
| 15,233 |
|
|
| 15,010 |
|
Long-term acquisition-related contingent liabilities |
|
| 455 |
|
|
| 826 |
|
Long-term operating lease liabilities |
|
| 6,630 |
|
|
| 7,939 |
|
Other long-term liabilities |
|
| 10,217 |
|
|
| 10,211 |
|
Total liabilities |
|
| 214,801 |
|
|
| 229,026 |
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value - authorized 300,000 shares (none issued) |
|
| - |
|
|
| - |
|
Common stock, $0.001 par value - authorized 50,000,000 shares, issued and outstanding 15,894,450 and 15,730,615 shares, respectively |
|
| 16 |
|
|
| 16 |
|
Additional paid-in capital |
|
| 86,088 |
|
|
| 84,628 |
|
Retained earnings |
|
| 110,169 |
|
|
| 112,871 |
|
Accumulated other comprehensive loss, net of tax |
|
| (3,235 | ) |
|
| (4,697 | ) |
Total shareholders’ equity |
|
| 193,038 |
|
|
| 192,818 |
|
Total liabilities and shareholders’ equity |
| $ | 407,839 |
|
| $ | 421,844 |
|
4
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
(In thousands) |
|
| Nine Months Ended September 30, |
|
|||||
|
| 2026 |
|
| 2025 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
| $ | 4,626 |
|
| $ | 3,537 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 8,489 |
|
|
| 9,157 |
|
Inventory write-downs |
|
| 9,498 |
|
|
| 1,793 |
|
Credit loss expense |
|
| 3,165 |
|
|
| 2,347 |
|
Share-based compensation expense |
|
| 2,523 |
|
|
| 3,916 |
|
Trade name impairment charge |
|
| 2,600 |
|
|
| - |
|
Change in fair value of acquisition-related contingent liabilities |
|
| 311 |
|
|
| 659 |
|
Non-cash operating lease expense |
|
| 3,116 |
|
|
| 2,843 |
|
Other, net |
|
| 183 |
|
|
| 244 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| 5,338 |
|
|
| (3,710 | ) |
Contract assets |
|
| (3,920 | ) |
|
| 3,326 |
|
Inventories |
|
| 91 |
|
|
| (10,535 | ) |
Prepaid expenses and other current assets |
|
| (2,963 | ) |
|
| (423 | ) |
Other assets |
|
| (1,778 | ) |
|
| (1,692 | ) |
Accounts payable and other current liabilities |
|
| (1,432 | ) |
|
| (10,636 | ) |
Payment of acquisition-related contingent liabilities |
|
| - |
|
|
| (791 | ) |
Other long-term liabilities |
|
| 832 |
|
|
| 1,235 |
|
Net cash provided by operating activities |
|
| 30,679 |
|
|
| 1,270 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
| (2,675 | ) |
|
| (3,407 | ) |
Net cash used in investing activities |
|
| (2,675 | ) |
|
| (3,407 | ) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Borrowings under revolving lines of credit |
|
| 33,545 |
|
|
| 76,000 |
|
Payments under revolving lines of credit |
|
| (63,545 | ) |
|
| (58,000 | ) |
Borrowings under term loan |
|
| 24,375 |
|
|
| - |
|
Payments of term loan |
|
| (9,375 | ) |
|
| (4,218 | ) |
Debt issuance costs |
|
| (821 | ) |
|
| - |
|
Payments of cash dividends |
|
| (6,575 | ) |
|
| (6,713 | ) |
Payment of acquisition-related contingent liabilities |
|
| - |
|
|
| (226 | ) |
Shares withheld for taxes net of proceeds received on exercise of stock options |
|
| (351 | ) |
|
| 90 |
|
Common shares repurchased and retired |
|
| (1,465 | ) |
|
| (7,928 | ) |
Net cash used in financing activities |
|
| (24,212 | ) |
|
| (995 | ) |
|
|
|
|
|
|
|
|
|
Effect of currency exchange rates on cash |
|
| 441 |
|
|
| 1,017 |
|
Net increases (decreases) in cash and cash equivalents |
|
| 4,233 |
|
|
| (2,115 | ) |
Cash and cash equivalents balance, beginning of period |
|
| 23,691 |
|
|
| 18,766 |
|
Cash and cash equivalents balance, end of period |
| $ | 27,924 |
|
| $ | 16,651 |
|
5
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES |
| ADJUSTED NET INCOME & NON-GAAP RECONCILIATION |
(Unaudited) |
| (In thousands) |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
||||||||||
| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
||||
Net income | | $ | 2,571 | | | $ | 2,744 | | | $ | 4,626 | | | $ | 3,537 | |
Add backs: | | | | | | | | | | | | | | | | |
Trade name impairment charge | | | - | | | | - | | | | 2,600 | | | | - | |
Tax impact of adjustments(1) | | | - | | | | - | | | | (640 | ) | | | - | |
Adjusted net income(2) | | $ | 2,571 | | | $ | 2,744 | | | $ | 6,586 | | | $ | 3,537 | |
| | | | | | | | | | | | | | | | |
Diluted net income per share | | $ | 0.17 | | | $ | 0.18 | | | $ | 0.31 | | | $ | 0.23 | |
Add back items, after-tax, per diluted share | | | - | | | | - | | | | 0.13 | | | | - | |
Diluted adjusted net income per share(2) | | $ | 0.17 | | | $ | 0.18 | | | $ | 0.44 | | | $ | 0.23 | |
| | | | | | | | | | | | | | | | |
Weighted average shares outstanding during the period: | | | | | | | | | | | | | | | | |
Diluted, as reported and adjusted | | | 15,247,892 | | | | 15,119,050 | | | | 15,024,519 | | | | 15,422,144 | |
(1) The tax impact of adjustments includes the tax effect of each separate adjustment based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible, and the tax effect of items that relate to tax specific financial transactions.
(2) Adjusted net income and diluted adjusted net income per share, which are non-GAAP measures, are defined as net income (loss) and net income (loss) per share, excluding the impacts of impairment and pension plan termination charges. Management believes adjusted net income (loss) and diluted adjusted net income (loss) per share provides useful information to investors because it allows management, investors and others to evaluate and compare our operating results from period to period by removing the impact of impairment and pension plan termination charges that are not reflective of our core business. Adjusted net income and Diluted adjusted net income per share should not be considered in isolation or as an alternative to net income or net income per share or any other measure determined in accordance with GAAP. The items excluded to calculate Adjusted net income and Diluted adjusted net income per share are significant components in understanding and assessing the Company’s net income. The Company’s Adjusted net income and Diluted adjusted net income per share may not be comparable to a similarly titled measure of another company because other companies may not calculate Adjusted net income and Diluted adjusted net income per share in the same manner.
6
SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES |
| SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS & NON-GAAP RECONCILIATIONS |
(Unaudited) |
(In thousands)
|
|
| Branded Products |
|
| Healthcare Apparel |
|
| Contact Centers |
|
| Intersegment Eliminations |
|
| Total |
|
|||||
For the Three Months Ended September 30, 2026: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
| $ | 92,111 |
|
| $ | 30,553 |
|
| $ | 24,224 |
|
| $ | (894 | ) |
| $ | 145,994 |
|
Cost of goods sold |
|
| 58,602 |
|
|
| 20,575 |
|
|
| 11,398 |
|
|
| (407 | ) |
|
| 90,168 |
|
Gross margin |
|
| 33,509 |
|
|
| 9,978 |
|
|
| 12,826 |
|
|
| (487 | ) |
|
| 55,826 |
|
Less: Selling and administrative expenses |
|
| 24,961 |
|
|
| 11,303 |
|
|
| 10,496 |
|
|
| (487 | ) |
|
| 46,273 |
|
Less: Trade name impairment charge |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Add backs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade name impairment charge |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Segment depreciation and amortization |
|
| 1,295 |
|
|
| 824 |
|
|
| 567 |
|
|
| - |
|
|
| 2,686 |
|
Segment Adjusted EBITDA(4) |
| $ | 9,843 |
|
| $ | (501 | ) |
| $ | 2,897 |
|
| $ | - |
|
| $ | 12,239 |
|
Less corporate selling and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 5,593 |
|
Add back corporate depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 61 |
|
Adjusted EBITDA(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 6,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Branded Products |
|
| Healthcare Apparel |
|
| Contact Centers |
|
| Intersegment Eliminations |
|
| 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 |
|
Less: Selling and administrative expenses |
|
| 23,501 |
|
|
| 9,779 |
|
|
| 10,283 |
|
|
| (672 | ) |
|
| 42,891 |
|
Add backs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment depreciation and amortization |
|
| 1,396 |
|
|
| 832 |
|
|
| 661 |
|
|
| - |
|
|
| 2,889 |
|
Segment Adjusted EBITDA(4) |
| $ | 7,524 |
|
| $ | 3,179 |
|
| $ | 2,373 |
|
| $ | - |
|
| $ | 13,076 |
|
Less corporate selling and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 5,622 |
|
Add back corporate depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 86 |
|
Adjusted EBITDA(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 7,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
| Branded Products |
|
| Healthcare Apparel |
|
| Contact Centers |
|
| Intersegment Eliminations |
|
| Total |
|
|||||
For the Nine Months Ended September 30, 2026: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
| $ | 281,370 |
|
| $ | 86,385 |
|
| $ | 69,571 |
|
| $ | (2,618 | ) |
| $ | 434,708 |
|
Cost of goods sold |
|
| 181,002 |
|
|
| 57,259 |
|
|
| 33,381 |
|
|
| (1,213 | ) |
|
| 270,429 |
|
Gross margin |
|
| 100,368 |
|
|
| 29,126 |
|
|
| 36,190 |
|
|
| (1,405 | ) |
|
| 164,279 |
|
Less: Selling and administrative expenses |
|
| 75,708 |
|
|
| 32,027 |
|
|
| 30,413 |
|
|
| (1,405 | ) |
|
| 136,743 |
|
Less: Trade name impairment charge |
|
| - |
|
|
| 2,600 |
|
|
| - |
|
|
| - |
|
|
| 2,600 |
|
Add backs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade name impairment charge |
|
| - |
|
|
| 2,600 |
|
|
| - |
|
|
| - |
|
|
| 2,600 |
|
Segment depreciation and amortization |
|
| 4,013 |
|
|
| 2,466 |
|
|
| 1,804 |
|
|
| - |
|
|
| 8,283 |
|
Segment Adjusted EBITDA(4) |
| $ | 28,673 |
|
| $ | (435 | ) |
| $ | 7,581 |
|
| $ | - |
|
| $ | 35,819 |
|
Less corporate selling and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 16,818 |
|
Add back corporate depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 206 |
|
Adjusted EBITDA(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 19,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Branded Products |
|
| Healthcare Apparel |
|
| Contact Centers |
|
| Intersegment Eliminations |
|
| 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 |
|
Less: Selling and administrative expenses |
|
| 72,353 |
|
|
| 29,383 |
|
|
| 32,816 |
|
|
| (1,351 | ) |
|
| 133,201 |
|
Add backs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment depreciation and amortization |
|
| 4,271 |
|
|
| 2,598 |
|
|
| 2,022 |
|
|
| - |
|
|
| 8,891 |
|
Segment Adjusted EBITDA(4) |
| $ | 22,250 |
|
| $ | 5,490 |
|
| $ | 6,795 |
|
| $ | - |
|
| $ | 34,535 |
|
Less corporate selling and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 17,654 |
|
Add back corporate depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 266 |
|
Adjusted EBITDA(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 17,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles income before income tax expense to Total Segment Adjusted EBITDA (in thousands):
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
||||||||||
| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
||||
Income before income tax expense | | $ | 3,151 | | | $ | 3,187 | | | $ | 5,416 | | | $ | 4,117 | |
Interest expense, net | | | 809 | | | | 1,378 | | | | 2,702 | | | | 3,873 | |
Corporate selling and administrative expenses | | | 5,593 | | | | 5,622 | | | | 16,818 | | | | 17,654 | |
Segment depreciation and amortization | | | 2,686 | | | | 2,889 | | | | 8,283 | | | | 8,891 | |
Trade name impairment charge | | | - | | | | - | | | | 2,600 | | | | - | |
Total Segment Adjusted EBITDA | | $ | 12,239 | | | $ | 13,076 | | | $ | 35,819 | | | $ | 34,535 | |
8
The following table reconciles net income to Adjusted EBITDA (in thousands):
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
|
||||||||||
|
| 2026 |
|
| 2025 |
|
| 2026 |
|
| 2025 |
|
||||
Net income |
| $ | 2,571 |
|
| $ | 2,744 |
|
| $ | 4,626 |
|
| $ | 3,537 |
|
Interest expense, net |
|
| 809 |
|
|
| 1,378 |
|
|
| 2,702 |
|
|
| 3,873 |
|
Income tax expense |
|
| 580 |
|
|
| 443 |
|
|
| 790 |
|
|
| 580 |
|
Segment depreciation and amortization |
|
| 2,686 |
|
|
| 2,889 |
|
|
| 8,283 |
|
|
| 8,891 |
|
Corporate depreciation and amortization |
|
| 61 |
|
|
| 86 |
|
|
| 206 |
|
|
| 266 |
|
Trade name impairment charge |
|
| - |
|
|
| - |
|
|
| 2,600 |
|
|
| - |
|
Adjusted EBITDA(3) |
| $ | 6,707 |
|
| $ | 7,540 |
|
| $ | 19,207 |
|
| $ | 17,147 |
|
Adjusted EBITDA margin(3) |
|
| 4.6 | % |
|
| 5.4 | % |
|
| 4.4 | % |
|
| 4.1 | % |
(3) Adjusted EBITDA, which is a non-GAAP financial measure, is defined as net income excluding interest expense, net, income tax expense, impairments and depreciation and amortization expense. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. The Company believes Adjusted 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, (iii) asset base (depreciation and amortization) and (iv) impairments. The Company uses Adjusted EBITDA internally to monitor operating results and to evaluate the performance of its business. In addition, the compensation committee has used Adjusted EBITDA in evaluating certain components of executive compensation, including performance-based annual incentive programs. Adjusted EBITDA is not a measure of financial performance under GAAP. Adjusted 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 Adjusted EBITDA are significant components in understanding and assessing the Company’s results of operations. The Company’s Adjusted EBITDA may not be comparable to a similarly titled measure of another company because other companies may not calculate Adjusted EBITDA in the same manner.
(4) Segment Adjusted EBITDA, as reported above for each segment, 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 Adjusted EBITDA include: interest expense, net, impairments and depreciation and amortization expense. Total Segment Adjusted EBITDA is a non-GAAP financial measure and is reconciled to its most closely comparable GAAP metric of income before income tax expense in the table above.
9