Superior Group of Companies (SGC) Q2 2024 earnings summary

Executive summary

• Net sales increased 2% year-over-year to $131.7 million in Q2 2024, driven by growth in Branded Products and Contact Centers, while Healthcare Apparel declined.

• Net income for Q2 2024 was $0.6 million, down from $1.2 million in Q2 2023, mainly due to higher SG&A and supply chain delays.

• EBITDA for Q2 2024 was $5.6 million, down from $7.4 million a year ago; EBITDA margin fell to 4.2% from 5.8%.

• Full-year outlook is maintained, with delayed revenues expected to be recovered in the third quarter and strong pipelines supporting second-half acceleration.

• Company operates three diversified businesses in large, growing markets, with Contact Centers as the fastest-growing and highest-margin segment.

Financial highlights

• Q2 2024 revenue: $131.7 million, up 2% year-over-year; gross margin improved to 38.5%.

• Q2 2024 net income: $0.6 million, down from $1.2 million; diluted EPS: $0.04, down from $0.08.

• Operating cash flow for the first six months: $16.3 million, down from $38.1 million in the prior year.

• Cash and equivalents: $13.4 million at June 30, 2024.

• Interest expense declined to $1.5 million in Q2 2024 from $2.6 million a year ago.

Outlook and guidance

• Full-year 2024 revenue expected between $563 million and $570 million, up from $543 million in 2023.

• Full-year EPS guidance reaffirmed at $0.73–$0.79, compared to $0.54 in 2023.

• Acceleration expected in the second half due to delayed revenue and strong pipelines.

• Management expects capital expenditures in 2024 to exceed 2023 levels, with sufficient liquidity.

• Anticipates continued dividend payments as financial conditions permit.