– Total net sales of $137.1 million versus $138.8 million in prior year first quarter –
– Net (loss) income of ($0.8) million versus $3.9 million in prior year first quarter –
– EBITDA of $3.5 million versus $9.6 million in prior year first quarter –
– Continues to execute on stock repurchase plan –
– Board of Directors approves $0.14 per share quarterly dividend –

ST. PETERSBURG, Fla., May 08, 2025 (GLOBE NEWSWIRE) — Superior Group of Companies, Inc. (NASDAQ:SGC) (the “Company”), today announced its first quarter 2025 results.

“We generated sales similar to last year’s levels despite widespread client uncertainty that has become even more elevated since early April,” said Michael Benstock, Chief Executive Officer. “Given the widely noted challenging macro environment, we are leveraging our experience, abilities and resources to proactively reduce expenses without hampering our ability to ramp as conditions improve.  Our balance sheet remains strong and affords us the ability to manage through the current economic headwinds.  We also plan to continue actively repurchasing our shares which we consider a compelling value, and we are pleased that our Board has again approved our quarterly dividend.  While the shorter-term view is unpredictable, we have successfully managed through similar conditions in the past and remain confident in our longer-term opportunities for market share gains and the creation of additional shareholder value.”

First Quarter Results

For the first quarter ended March 31, 2025, net sales were $137.1 million compared to first quarter 2024 net sales of $138.8 million. Pretax loss of ($0.9) million compares to pretax income of $4.6 million in the first quarter of 2024. Net loss of ($0.8) million or ($0.05) per diluted share compares to net income of $3.9 million or $0.24 per diluted share for the first quarter of 2024.

First Quarter 2025 Dividend

The Board of Directors declared a quarterly dividend of $0.14 per share, payable May 30, 2025 to shareholders of record as of May 19, 2025.

Share Repurchase Update

The Company repurchased approximately 294,000 shares for $3.8 million during the first quarter, which completed the $10 million repurchase plan approved in August 2024 and results in approximately $16.3 million remaining under its existing repurchase authorization at quarter end.

2025 Full-Year Outlook

Given the heightened macro uncertainty, the Company now expects revenues to be in the range of $550 million to $575 million as compared to its prior outlook range of $585 million to $595 million.  Additionally, the Company is withdrawing its previously issued full-year 2025 outlook earnings per diluted share range of $0.75 to $0.82.

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 May 15, 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 4465888 for replay access.

The Company’s website at https://ir.superiorgroupofcompanies.com/Presentations will also contain an updated investor presentation.

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 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 effect of the Company’s 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 Company’s financial statements and to maintain effective internal control over financial reporting; and other factors described in the Company’s 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 March 31, 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

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except shares and per share data)
 
  Three Months Ended March 31,  
  2025     2024  
Net sales $ 137,097     $ 138,842  
               
Costs and expenses:              
Cost of goods sold   86,656       83,525  
Selling and administrative expenses   50,102       48,938  
Interest expense, net   1,245       1,787  
    138,003       134,250  
(Loss) income before income tax (benefit) expense   (906 )     4,592  
Income tax (benefit) expense   (148 )     680  
Net (loss) income $ (758 )   $ 3,912  
               
Net (loss) income per share:              
Basic $ (0.05 )   $ 0.24  
Diluted $ (0.05 )   $ 0.24  
               
Weighted average shares outstanding during the period:              
Basic   15,599,655       16,028,032  
Diluted   15,599,655       16,453,452  
               
Cash dividends per common share $ 0.14     $ 0.14  
               

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except shares and par value data)
 
  March 31,     December 31,  
  2025     2024  
  (Unaudited)          
ASSETS              
Current assets:              
Cash and cash equivalents $ 19,757     $ 18,766  
Accounts receivable, net   92,539       95,092  
Inventories   98,543       96,675  
Contract assets   50,759       51,688  
Prepaid expenses and other current assets   10,402       10,831  
Total current assets   272,000       273,052  
Property, plant and equipment, net   40,730       41,879  
Operating lease right-of-use assets   14,667       15,567  
Deferred tax asset   13,833       13,835  
Intangible assets, net   50,207       51,137  
Goodwill   2,304       2,304  
Other assets   17,232       17,360  
Total assets $ 410,973     $ 415,134  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY              
Current liabilities:              
Accounts payable $ 48,809     $ 50,942  
Other current liabilities   38,481       44,367  
Current portion of long-term debt   5,625       5,625  
Current portion of acquisition-related contingent liabilities   940       814  
Total current liabilities   93,855       101,748  
Long-term debt   90,065       80,410  
Long-term pension liability   13,415       13,315  
Long-term acquisition-related contingent liabilities   1,096       935  
Long-term operating lease liabilities   9,666       10,486  
Other long-term liabilities   8,447       9,384  
Total liabilities   216,544       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 16,244,241 and 16,484,921 shares, respectively   15       16  
Additional paid-in capital   83,930       84,060  
Retained earnings   114,825       120,139  
Accumulated other comprehensive loss, net of tax:   (4,341 )     (5,359 )
Total shareholders’ equity   194,429       198,856  
Total liabilities and shareholders’ equity $ 410,973     $ 415,134  
               

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
 
  Three Months Ended March 31,  
  2025     2024  
CASH FLOWS FROM OPERATING ACTIVITIES              
Net (loss) income $ (758 )   $ 3,912  
Adjustments to reconcile net (loss) income to net cash provided by operating activities:              
Depreciation and amortization   3,204       3,252  
Inventory write-downs   441       420  
Share-based compensation expense   1,283       1,015  
Change in fair value of acquisition-related contingent liabilities   287       152  
Change in fair value of written put options   –       392  
Other, net   217       144  
Changes in assets and liabilities, net of acquisition of a business:              
Accounts receivable   2,607       9,607  
Contract assets   1,069       (3,835 )
Inventories   (2,191 )     5,010  
Prepaid expenses and other current assets   749       2,252  
Other assets   113       (864 )
Accounts payable and other current liabilities   (8,362 )     (12,122 )
Long-term pension liability   110       108  
Other long-term liabilities   (757 )     4  
Net cash (used in) provided by operating activities   (1,988 )     9,447  
               
CASH FLOWS FROM INVESTING ACTIVITIES              
Additions to property, plant and equipment   (1,131 )     (675 )
Net cash used in investing activities   (1,131 )     (675 )
               
CASH FLOWS FROM FINANCING ACTIVITIES              
Borrowings under revolving lines of credit   19,000       7,000  
Payments under revolving lines of credit   (8,000 )     (10,000 )
Payments of term loan   (1,406 )     (937 )
Payment of cash dividends   (2,280 )     (2,330 )
Payment of acquisition-related contingent liabilities   –       (557 )
Proceeds received on exercise of stock options and shares withheld for taxes   87       449  
Common shares repurchased and retired   (3,777 )     –  
Net cash provided by (used in) financing activities   3,624       (6,375 )
               
Effect of currency exchange rates on cash   486       (253 )
Net increase in cash and cash equivalents   991       2,144  
Cash and cash equivalents balance, beginning of period   18,766       19,896  
Cash and cash equivalents balance, end of period $ 19,757     $ 22,040  
               

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands, except shares and per share data)
 
  Three Months Ended March 31,  
  2025     2024  
Net (loss) income $ (758 )   $ 3,912  
Interest expense, net   1,245       1,787  
Income tax (benefit) expense   (148 )     680  
Depreciation and amortization   3,204       3,252  
EBITDA(1) $ 3,543     $ 9,631  
EBITDA margin(1)   2.6 %     6.9 %
               

(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 presentation of the Company’s EBITDA may change from time to time, including as a result of changed business conditions, new accounting pronouncements or otherwise. If the presentation changes, the Company undertakes to disclose any change between periods and the reasons underlying that change. 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.

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 March 31, 2025:                                              
Net sales $ 86,474     $ 27,263     $ 24,225     $ (865 )   $ –     $ 137,097  
Cost of goods sold   58,787       17,130       11,244       (505 )     –       86,656  
Gross margin   27,687       10,133       12,981       (360 )     –       50,441  
Selling and administrative expenses   23,420       9,526       10,921       (360 )     6,595       50,102  
Depreciation and amortization   1,480       912       722       –       90       3,204  
Segment EBITDA(1) $ 5,747     $ 1,519     $ 2,782     $ –     $ (6,505 )   $ 3,543  
                                               
  Branded Products     Healthcare Apparel     Contact Centers     Intersegment Eliminations     Other     Total  
For the Three Months Ended March 31, 2024:                                              
Net sales $ 87,068     $ 29,237     $ 23,552     $ (1,015 )   $ –     $ 138,842  
Cost of goods sold   55,327       17,727       10,908       (437 )     –       83,525  
Gross margin   31,741       11,510       12,644       (578 )     –       55,317  
Selling and administrative expenses   23,294       9,812       10,421       (578 )     5,989       48,938  
Depreciation and amortization   1,500       937       723       –       92       3,252  
Segment EBITDA(1) $ 9,947     $ 2,635     $ 2,946     $ –     $ (5,897 )   $ 9,631  
                                               

(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.