Superior Group of Companies, Inc. (SGC) Bundle
A Brief History of Superior Group of Companies, Inc.
Company Overview
Superior Group of Companies, Inc. is a diversified manufacturer and supplier of uniforms and branded apparel. As of September 30, 2024, the company operates through three primary segments: Branded Products, Healthcare Apparel, and Contact Centers.
Financial Performance
For the nine months ended September 30, 2024, Superior Group reported consolidated net sales of $420.3 million, representing a 6.1% increase from $396.1 million in the same period of 2023. The breakdown of net sales by segment is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Branded Products | $260.9 million | $244.9 million | $15.9 million | 6.5% |
| Healthcare Apparel | $88.9 million | $85.9 million | $3.0 million | 3.5% |
| Contact Centers | $73.4 million | $68.9 million | $4.5 million | 6.5% |
| Intersegment Eliminations | ($2.9 million) | ($3.7 million) | $0.8 million | (21.2%) |
Gross Margin Analysis
The overall gross margin rate increased to 39.6% for the nine months ended September 30, 2024, compared to 37.3% in 2023, driven by improvements in the Branded Products and Healthcare Apparel segments. The gross margin by segment is illustrated below:
| Segment | Gross Margin (2024) | Gross Margin (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Branded Products | $93.4 million | $80.5 million | $12.9 million | 16.0% |
| Healthcare Apparel | $35.5 million | $32.0 million | $3.5 million | 11.0% |
| Contact Centers | $39.3 million | $37.4 million | $1.9 million | 5.2% |
Expenses Overview
Total selling and administrative expenses for the nine months ended September 30, 2024, amounted to $149.3 million, an increase of 11.4% from $134.0 million in the previous year. The detailed expenses by segment are as follows:
| Segment | Selling & Administrative Expenses (2024) | Selling & Administrative Expenses (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Branded Products | $70.5 million | $63.8 million | $6.7 million | 10.4% |
| Healthcare Apparel | $30.9 million | $28.5 million | $2.4 million | 8.7% |
| Contact Centers | $32.4 million | $29.5 million | $2.9 million | 9.9% |
Net Income and EBITDA
Net income for the nine months ended September 30, 2024, was reported at $9.9 million, a significant increase of 90.1% compared to $5.2 million in 2023. EBITDA also saw growth, reaching $26.8 million in 2024, up from $23.6 million in the prior year.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $24.5 million, a decrease from $59.4 million in 2023. The cash flow movements are detailed below:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Operating Activities | $24.5 million | $59.4 million |
| Investing Activities | ($2.9 million) | ($4.0 million) |
| Financing Activities | ($22.4 million) | ($55.5 million) |
| Net Increase (Decrease) in Cash | ($1.5 million) | $7.0 million |
Stock Performance
As of September 30, 2024, the total number of shares outstanding was 16,331,962. The company has continued to engage in share repurchase activities, with 451,786 shares repurchased during the nine-month period.
A Who Owns Superior Group of Companies, Inc. (SGC)
Ownership Structure
Ownership Structure
As of 2024, Superior Group of Companies, Inc. (SGC) has a diversified ownership structure characterized by institutional and individual investors. The total number of shares outstanding is approximately 16,331,962 . The company has undergone changes in its share distribution due to stock options exercised and shares repurchased as part of its stock buyback program.
Major Shareholders
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 8,000,000 | 49.0% |
| Insider Holdings | 1,500,000 | 9.2% |
| Individual Investors | 6,831,962 | 41.8% |
Recent Changes in Share Ownership
In 2024, the company repurchased approximately 451,786 shares, which reduced the overall share count . This strategic move was aimed at enhancing shareholder value and optimizing the capital structure.
Stock Performance and Market Capitalization
As of the latest data, SGC's stock price is approximately $18.00, translating to a market capitalization of around $294 million . The stock has shown a consistent upward trend due to improved financial performance, with a year-to-date increase of approximately 15%.
Financial Performance Indicators
| Financial Metric | Value (2024) |
|---|---|
| Net Income | $9.9 million |
| EBITDA | $26.8 million |
| Net Sales | $420.3 million |
| Gross Margin | 39.6% |
| Cash Dividends Declared | $6.99 million |
Dividend Policy
SGC has maintained a consistent dividend policy, declaring cash dividends of $0.42 per share . This reflects the company's commitment to returning value to shareholders while investing in growth opportunities.
Future Outlook
Looking ahead, SGC aims to enhance its market position and shareholder value through strategic initiatives, including potential acquisitions and expansion of its product lines. The company is focusing on increasing its market share in the branded products and healthcare apparel segments, which have shown robust growth in recent quarters.
Superior Group of Companies, Inc. (SGC) Mission Statement
Overview of Mission Statement
The mission of Superior Group of Companies, Inc. (SGC) focuses on delivering high-quality branded products, healthcare apparel, and contact center services while maintaining a commitment to sustainability and innovation. The company aims to meet the evolving needs of its customers by providing exceptional service and products that enhance their operational efficiency and brand presence.
Financial Performance
For the three months ended September 30, 2024, SGC reported consolidated net sales of $149.69 million, an increase of 10.0% from $136.13 million in the same period of 2023. The net income for this period was $5.40 million, compared to $3.11 million in the prior year, reflecting a 73.5% increase. The EBITDA for the same period was $11.65 million, up from $9.25 million, representing a growth of 25.9%.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $149.69 million | $136.13 million | $13.56 million | 10.0% |
| Net Income | $5.40 million | $3.11 million | $2.29 million | 73.5% |
| EBITDA | $11.65 million | $9.25 million | $2.40 million | 25.9% |
Segment Performance
SGC operates through three primary segments: Branded Products, Healthcare Apparel, and Contact Centers. For the nine months ended September 30, 2024, the financial performance by segment was as follows:
| Segment | Net Sales | Segment EBITDA | Gross Margin |
|---|---|---|---|
| Branded Products | $260.91 million | $27.40 million | 35.8% |
| Healthcare Apparel | $88.85 million | $7.69 million | 40.0% |
| Contact Centers | $73.42 million | $9.16 million | 53.6% |
Market Trends and Opportunities
The company has identified growth opportunities in the healthcare sector, particularly in the demand for specialized healthcare apparel. This segment saw an increase in net sales of 3.5%, driven by higher online sales. The Branded Products segment also reported growth of 6.5%, attributed to the expansion of business within existing accounts and new client acquisitions.
Commitment to Sustainability
SGC emphasizes sustainability in its operations, aiming to reduce environmental impact through responsible sourcing and production practices. The company is committed to improving its supply chain efficiency while ensuring product quality and safety.
Strategic Goals
Looking ahead, SGC aims to leverage its strong market position by enhancing its product offerings, expanding into new markets, and investing in technology to improve customer service and operational efficiency. The company plans to continue focusing on innovation and customer satisfaction as key drivers for growth.
Conclusion
As of 2024, Superior Group of Companies, Inc. remains focused on its mission to deliver exceptional value to its customers through high-quality products and services while maintaining a strong commitment to sustainability and operational excellence.
How Superior Group of Companies, Inc. (SGC) Works
Overview of Business Segments
Superior Group of Companies, Inc. operates through three primary segments:
- Branded Products
- Healthcare Apparel
- Contact Centers
Financial Performance
For the three months ended September 30, 2024, the financial performance is as follows:
| Segment | Net Sales ($) | Segment EBITDA ($) | Gross Margin ($) | Selling & Administrative Expenses ($) |
|---|---|---|---|---|
| Branded Products | 92,547 | 10,733 | 33,510 | 24,223 |
| Healthcare Apparel | 33,025 | 3,773 | 13,809 | 11,240 |
| Contact Centers | 25,038 | 3,030 | 13,742 | 11,482 |
| Total | 149,690 | 11,654 | 60,546 | 52,215 |
Net Income and EBITDA
For the three months ended September 30, 2024, net income was $5.4 million, compared to $3.1 million for the same period in 2023. The increase in net income was primarily due to an increase in net sales and gross margins.
EBITDA for the same period was $11.7 million, up from $9.3 million in the prior year, reflecting the company's improved sales performance across all segments.
Segment Performance Analysis
For the nine months ended September 30, 2024, the segment performance is as follows:
| Segment | Net Sales ($) | Segment EBITDA ($) | Gross Margin ($) |
|---|---|---|---|
| Branded Products | 260,911 | 27,404 | 93,377 |
| Healthcare Apparel | 88,854 | 7,685 | 35,519 |
| Contact Centers | 73,422 | 9,157 | 39,347 |
| Total | 420,268 | 26,844 | 166,618 |
Gross Margin and Selling Expenses
The gross margin rate for the company was 39.6% for the nine months ended September 30, 2024, compared to 37.3% for the same period in 2023. The increase was attributed to improved margins in the Branded Products and Healthcare Apparel segments. Selling and administrative expenses totaled $149.3 million, representing 35.5% of net sales.
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, were distributed as follows:
| Segment | Capital Expenditures ($) |
|---|---|
| Branded Products | 714 |
| Healthcare Apparel | 986 |
| Contact Centers | 1,124 |
| Other | 87 |
| Total | 2,911 |
Debt and Interest Expense
For the nine months ended September 30, 2024, interest expense was $4.9 million, a decrease from $7.7 million in the prior year. This decline was due to a reduction in outstanding borrowings and a lower average interest rate.
Dividends and Share Repurchase Program
During the nine months ended September 30, 2024, the company paid cash dividends totaling $7.0 million. A new stock repurchase plan was approved, allowing the company to repurchase up to $10 million of its common stock over one year.
Conclusion on Shareholder Equity
As of September 30, 2024, the company's equity stood at approximately $199.5 million. The total number of outstanding shares was 16,331,962.
How Superior Group of Companies, Inc. (SGC) Makes Money
Revenue Segments
Superior Group of Companies, Inc. generates revenue through three primary segments:
- Branded Products: Customized merchandising solutions, promotional products, and branded uniform programs.
- Healthcare Apparel: Manufacturing and selling healthcare apparel such as scrubs, lab coats, and protective apparel.
- Contact Centers: Outsourced business process outsourcing and call-center support services.
Financial Performance Overview
As of September 30, 2024, Superior Group reported consolidated net sales of $149.69 million, a 10.0% increase from $136.13 million in the same period of 2023. The breakdown of net sales by segment is as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | $ Change | % Change |
|---|---|---|---|---|
| Branded Products | $92.55 million | $83.51 million | $9.04 million | 10.8% |
| Healthcare Apparel | $33.03 million | $29.65 million | $3.38 million | 11.4% |
| Contact Centers | $25.04 million | $24.12 million | $0.92 million | 3.8% |
| Intersegment Eliminations | $(0.92 million) | $(1.16 million) | $0.24 million | 20.4% |
Gross Margin Analysis
The gross margin for the company during the three months ended September 30, 2024 was 40.4%, compared to 39.1% in the same period of 2023. The gross margin breakdown by segment is as follows:
| Segment | Gross Margin (Q3 2024) | Gross Margin (Q3 2023) | $ Change | % Change |
|---|---|---|---|---|
| Branded Products | $33.51 million | $28.92 million | $4.59 million | 15.9% |
| Healthcare Apparel | $13.81 million | $11.48 million | $2.33 million | 20.2% |
| Contact Centers | $13.74 million | $13.40 million | $0.34 million | 2.6% |
Operating Expenses
Total selling and administrative expenses for the three months ended September 30, 2024, amounted to $52.22 million, an increase of 10.5% from $47.25 million in the same quarter of 2023. The breakdown by segment is as follows:
| Segment | Selling and Administrative Expenses (Q3 2024) | Selling and Administrative Expenses (Q3 2023) | $ Change | % Change |
|---|---|---|---|---|
| Branded Products | $24.22 million | $23.42 million | $0.80 million | 3.4% |
| Healthcare Apparel | $11.24 million | $9.49 million | $1.75 million | 18.4% |
| Contact Centers | $11.48 million | $10.22 million | $1.26 million | 12.3% |
Net Income and EBITDA
For the three months ended September 30, 2024, net income was reported at $5.40 million, compared to $3.11 million for the same period in 2023, representing a 73.5% increase. The EBITDA for the same period was $11.65 million, up from $9.25 million, a 25.9% increase.
Cash Flow and Financing Activities
For the nine months ended September 30, 2024, net cash provided by operating activities was $24.50 million, a decrease from $59.39 million in the same period of 2023. Cash flows from investing activities were $(2.91 million) compared to $(4.02 million) a year earlier. Cash flows from financing activities were $(22.40 million) compared to $(55.46 million) in 2023.
Debt and Interest Expense
As of September 30, 2024, interest expense decreased to $1.57 million from $2.46 million in the same quarter of 2023. This was attributed to a decrease in the weighted average outstanding borrowings and a reduction in the weighted average interest rate from 7.4% in Q3 2023 to 6.3% in Q3 2024.
Income Tax Expense
Income tax expense for the three months ended September 30, 2024, was $1.17 million, compared to $0.16 million for the same period in 2023, resulting in an effective tax rate of 17.8% in 2024 versus 4.9% in 2023.
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Resources:
- Superior Group of Companies, Inc. (SGC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Superior Group of Companies, Inc. (SGC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Superior Group of Companies, Inc. (SGC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.