– Total net sales of |
– Net income of |
– EBITDA of $9.9 million versus adjusted $3.5 million in prior year fourth quarter – |
– Provides full-year outlook – |
ST. PETERSBURG, Fla.,
“We capped off 2023 with our best quarter of the year, delivering sequential improvement, stronger profitability and continued positive cash flow along with a substantially improved balance sheet,” said
Fourth Quarter Results
For the fourth quarter ended
In the prior year fourth quarter, the Company realized a pre-tax, non-operating gain of
2024 Full-Year Outlook
The Company is forecasting full year 2024 sales to be $558 million to $568 million versus 2023 sales of $543 million, and forecasting earnings per share to be $0.61 to $0.68, compared to
Webcast and Conference Call
The Company will host a webcast and conference call at
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; 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
About
Established in 1920,
Investor Relations Contact:
Investors@Superiorgroupofcompanies.com
Comparative figures are as follows:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except shares and per share data) | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net sales | $ | 147,241 | $ | 148,613 | $ | 543,302 | $ | 578,831 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of goods sold | 91,596 | 103,805 | 339,755 | 385,472 | ||||||||||||
Selling and administrative expenses | 49,198 | 44,322 | 183,205 | 176,320 | ||||||||||||
- | - | - | 45,918 | |||||||||||||
Intangible assets impairment charge | - | - | - | 5,581 | ||||||||||||
Other periodic pension costs | 213 | 532 | 855 | 2,116 | ||||||||||||
Interest expense | 2,060 | 2,218 | 9,718 | 4,894 | ||||||||||||
143,067 | 150,877 | 533,533 | 620,301 | |||||||||||||
Gain on sale of property, plant and equipment | - | 3,435 | - | 3,435 | ||||||||||||
Income (loss) before income tax expense | 4,174 | 1,171 | 9,769 | (38,035 | ) | |||||||||||
Income tax expense (benefit) | 617 | (1,023 | ) | 997 | (6,065 | ) | ||||||||||
Net income (loss) | $ | 3,557 | $ | 2,194 | $ | 8,772 | $ | (31,970 | ) | |||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.22 | $ | 0.14 | $ | 0.55 | $ | (2.03 | ) | |||||||
Diluted | $ | 0.22 | $ | 0.14 | $ | 0.54 | $ | (2.03 | ) | |||||||
Weighted average shares outstanding during the period: | ||||||||||||||||
Basic | 16,010,006 | 15,841,296 | 15,968,199 | 15,764,859 | ||||||||||||
Diluted | 16,238,736 | 16,075,494 | 16,159,308 | 15,764,859 | ||||||||||||
Cash dividends per common share | $ | 0.14 | $ | 0.14 | $ | 0.56 | $ | 0.54 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and par value data) | ||||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 19,896 | $ | 17,722 | ||||
Accounts receivable, less allowance for doubtful accounts of | 103,494 | 104,813 | ||||||
Accounts receivable - other | 307 | 3,326 | ||||||
Inventories | 98,067 | 124,976 | ||||||
Contract assets | 48,715 | 52,980 | ||||||
Prepaid expenses and other current assets | 8,881 | 14,166 | ||||||
Total current assets | 279,360 | 317,983 | ||||||
Property, plant and equipment, net | 46,890 | 51,392 | ||||||
Operating lease right-of-use assets | 17,909 | 9,113 | ||||||
Deferred tax asset | 12,356 | 10,718 | ||||||
Intangible assets, net | 51,160 | 55,753 | ||||||
Other assets | 14,775 | 11,982 | ||||||
Total assets | $ | 422,450 | $ | 456,941 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 50,520 | $ | 42,060 | ||||
Other current liabilities | 43,978 | 38,646 | ||||||
Current portion of long-term debt | 4,688 | 3,750 | ||||||
Current portion of acquisition-related contingent liabilities | 1,403 | 736 | ||||||
Total current liabilities | 100,589 | 85,192 | ||||||
Long-term debt | 88,789 | 151,567 | ||||||
Long-term pension liability | 13,284 | 12,864 | ||||||
Long-term acquisition-related contingent liabilities | 557 | 2,245 | ||||||
Long-term operating lease liabilities | 12,809 | 3,936 | ||||||
Other long-term liabilities | 8,784 | 8,538 | ||||||
Total liabilities | 224,812 | 264,342 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 16 | 16 | ||||||
Additional paid-in capital | 77,443 | 72,615 | ||||||
Retained earnings | 122,464 | 122,979 | ||||||
Accumulated other comprehensive income (loss), net of tax: | ||||||||
Pensions | (1,122 | ) | (1,113 | ) | ||||
Foreign currency translation adjustment | (1,163 | ) | (1,898 | ) | ||||
Total shareholders’ equity | 197,638 | 192,599 | ||||||
Total liabilities and shareholders’ equity | $ | 422,450 | $ | 456,941 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | ||||||||
Years Ended | ||||||||
2023 | 2022 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | 8,772 | $ | (31,970 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 13,995 | 13,004 | ||||||
- | 45,918 | |||||||
Intangible assets impairment charge | - | 5,581 | ||||||
Inventory write-downs | 2,346 | 13,569 | ||||||
Provision for bad debts - accounts receivable | 539 | 2,891 | ||||||
Share-based compensation expense | 3,787 | 4,289 | ||||||
Deferred income tax benefit | (1,635 | ) | (12,352 | ) | ||||
Gain on sale of property, plant and equipment | - | (3,435 | ) | |||||
Change in fair value of acquisition-related contingent liabilities | (189 | ) | (450 | ) | ||||
Change in fair value of written put options | 489 | (1,565 | ) | |||||
Changes in assets and liabilities, net of acquisition of businesses: | ||||||||
Accounts receivable | 1,051 | 680 | ||||||
Accounts receivable - other | 3,019 | 1,347 | ||||||
Contract assets | 4,310 | (15,092 | ) | |||||
Inventories | 24,672 | (15,898 | ) | |||||
Prepaid expenses and other current assets | 5,496 | 5,225 | ||||||
Other assets | (2,012 | ) | 1,858 | |||||
Accounts payable and other current liabilities | 13,310 | (14,614 | ) | |||||
Payment of acquisition-related contingent liabilities | (279 | ) | (3,346 | ) | ||||
Long-term pension liability | 407 | 2,190 | ||||||
Other long-term liabilities | 851 | (434 | ) | |||||
Net cash provided by (used in) operating activities | 78,929 | (2,604 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Additions to property, plant and equipment | (4,963 | ) | (11,018 | ) | ||||
Proceeds from disposals of property, plant and equipment | - | 4,795 | ||||||
Acquisition of businesses | - | (11,202 | ) | |||||
Other investments | (545 | ) | - | |||||
Net cash used in investing activities | (5,508 | ) | (17,425 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from borrowings of debt | 6,000 | 332,143 | ||||||
Repayment of debt | (67,750 | ) | (292,773 | ) | ||||
Debt issuance costs | (300 | ) | (869 | ) | ||||
Payment of cash dividends | (9,188 | ) | (8,653 | ) | ||||
Payment of acquisition-related contingent liabilities | (553 | ) | (1,416 | ) | ||||
Proceeds received on exercise of stock options | 175 | 728 | ||||||
Tax withholdings on vesting of restricted shares and performance based shares and on exercise of stock rights | - | (314 | ) | |||||
Net cash provided by (used in) financing activities | (71,616 | ) | 28,846 | |||||
Effect of currency exchange rates on cash | 369 | (30 | ) | |||||
Net increase in cash and cash equivalents | 2,174 | 8,787 | ||||||
Cash and cash equivalents balance, beginning of year | 17,722 | 8,935 | ||||||
Cash and cash equivalents balance, end of year | $ | 19,896 | $ | 17,722 | ||||
NON-GAAP FINANCIAL MEASURES (Unaudited) (In thousands, except shares and per share data) | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) | $ | 3,557 | $ | 2,194 | $ | 8,772 | $ | (31,970 | ) | |||||||
Interest expense | 2,060 | 2,218 | 9,718 | 4,894 | ||||||||||||
Income tax expense (benefit) | 617 | (1,023 | ) | 997 | (6,065 | ) | ||||||||||
Depreciation and amortization | 3,664 | 3,500 | 13,995 | 13,004 | ||||||||||||
- | - | - | 45,918 | |||||||||||||
Intangible assets impairment charge | - | - | - | 5,581 | ||||||||||||
Gain on sale of property, plant and equipment | - | (3,435 | ) | - | (3,435 | ) | ||||||||||
Adjusted EBITDA(1) | $ | 9,898 | $ | 3,454 | $ | 33,482 | $ | 27,927 | ||||||||
Net income (loss) | $ | 3,557 | $ | 2,194 | $ | 8,772 | $ | (31,970 | ) | |||||||
Adjustment for items: | ||||||||||||||||
- | - | - | 45,918 | |||||||||||||
Intangible assets impairment charge | - | - | - | 5,581 | ||||||||||||
Gain on sale of property, plant and equipment | - | (3,435 | ) | - | (3,435 | ) | ||||||||||
Tax impact of adjustments(2) | - | 324 | - | (6,061 | ) | |||||||||||
Adjusted net income (loss)(3) | $ | 3,557 | $ | (917 | ) | $ | 8,772 | $ | 10,033 | |||||||
Diluted net income (loss) per share | $ | 0.22 | $ | 0.14 | $ | 0.54 | $ | (2.03 | ) | |||||||
Adjustment for items, after-tax, per diluted share | - | (0.20 | ) | - | 2.65 | |||||||||||
Diluted adjusted net income (loss) per share(3) | $ | 0.22 | $ | (0.06 | ) | $ | 0.54 | $ | 0.62 | |||||||
Weighted average shares outstanding during the period: | ||||||||||||||||
Diluted, as reported | 16,238,736 | 16,075,494 | 16,159,308 | 15,764,859 | ||||||||||||
Diluted, as adjusted(4) | 16,238,736 | 15,841,296 | 16,159,308 | 16,165,240 | ||||||||||||
(1) Adjusted EBITDA, which is a non-GAAP financial measure, is defined as net income (loss) excluding interest expense, income tax expense, depreciation and amortization expense, impairment charges and the other items described in the following sentence. 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), (iv) the non-cash charges from asset impairments and (v) gains or losses on the sale of property, plant and equipment. 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 and should not be considered in isolation or as an alternative to net income (loss), 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 presentation of the Company’s Adjusted 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 Adjusted EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted EBITDA in the same manner.
(2) 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.
(3) Adjusted net income (loss) and diluted adjusted net income (loss) per share, which are non-GAAP measures, are defined as net income (loss) and net income (loss) per share, excluding the impacts of impairment charges and gains or losses on the sale of property, plant and equipment. 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 charges and gains or losses on the sale of property, plant and equipment that are not reflective of our core business.
(4) Diluted weighted average shares outstanding used to calculate diluted adjusted net loss per share excludes shares of common stock of 234,198 for the three months ended
SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS (Unaudited) (In thousands) | ||||||||||||||||||||||||
Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
For the Year Ended | ||||||||||||||||||||||||
Net sales | $ | 342,680 | $ | 113,878 | $ | 91,500 | $ | (4,756 | ) | $ | - | $ | 543,302 | |||||||||||
Cost of goods sold | 228,053 | 71,597 | 42,352 | (2,247 | ) | - | 339,755 | |||||||||||||||||
Gross margin | 114,627 | 42,281 | 49,148 | (2,509 | ) | - | 203,547 | |||||||||||||||||
Selling and administrative expenses | 88,225 | 38,209 | 39,682 | (2,509 | ) | 19,598 | 183,205 | |||||||||||||||||
Other periodic pension cost | - | - | - | - | 855 | 855 | ||||||||||||||||||
Add: Depreciation and amortization | 6,744 | 3,925 | 2,942 | - | 384 | 13,995 | ||||||||||||||||||
Segment Adjusted EBITDA(1) | $ | 33,146 | $ | 7,997 | $ | 12,408 | $ | - | $ | (20,069 | ) | $ | 33,482 | |||||||||||
Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
For the Year Ended | ||||||||||||||||||||||||
Net sales | $ | 387,931 | $ | 113,321 | $ | 84,218 | $ | (6,639 | ) | $ | - | $ | 578,831 | |||||||||||
Cost of goods sold | 273,134 | 80,719 | 34,439 | (2,820 | ) | - | 385,472 | |||||||||||||||||
Gross margin | 114,797 | 32,602 | 49,779 | (3,819 | ) | - | 193,359 | |||||||||||||||||
Selling and administrative expenses | 90,118 | 39,295 | 33,631 | (3,819 | ) | 17,095 | 176,320 | |||||||||||||||||
Other periodic pension cost | - | - | - | - | 2,116 | 2,116 | ||||||||||||||||||
Add: Depreciation and amortization | 6,465 | 3,946 | 2,373 | - | 220 | 13,004 | ||||||||||||||||||
Segment Adjusted EBITDA(1) | $ | 31,144 | $ | (2,747 | ) | $ | 18,521 | $ | - | $ | (18,991 | ) | $ | 27,927 | ||||||||||
Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Net sales | $ | 97,725 | $ | 28,003 | $ | 22,565 | $ | (1,052 | ) | $ | - | $ | 147,241 | |||||||||||
Cost of goods sold | 63,561 | 17,725 | 10,807 | (497 | ) | - | 91,596 | |||||||||||||||||
Gross margin | 34,164 | 10,278 | 11,758 | (555 | ) | - | 55,645 | |||||||||||||||||
Selling and administrative expenses | 24,392 | 9,748 | 10,180 | (555 | ) | 5,433 | 49,198 | |||||||||||||||||
Other periodic pension cost | - | - | - | - | 213 | 213 | ||||||||||||||||||
Add: Depreciation and amortization | 1,918 | 911 | 732 | - | 103 | 3,664 | ||||||||||||||||||
Segment Adjusted EBITDA(1) | $ | 11,690 | $ | 1,441 | $ | 2,310 | $ | - | $ | (5,543 | ) | $ | 9,898 | |||||||||||
Branded Products | Healthcare Apparel | Contact Centers | Intersegment Eliminations | Other | Total | |||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Net sales | $ | 102,040 | $ | 26,426 | $ | 21,415 | $ | (1,268 | ) | $ | - | $ | 148,613 | |||||||||||
Cost of goods sold | 70,712 | 24,653 | 9,001 | (561 | ) | - | 103,805 | |||||||||||||||||
Gross margin | 31,328 | 1,773 | 12,414 | (707 | ) | - | 44,808 | |||||||||||||||||
Selling and administrative expenses | 22,300 | 9,246 | 9,337 | (707 | ) | 4,146 | 44,322 | |||||||||||||||||
Other periodic pension cost | - | - | - | - | 532 | 532 | ||||||||||||||||||
Add: Depreciation and amortization | 1,769 | 1,004 | 676 | - | 51 | 3,500 | ||||||||||||||||||
Segment Adjusted EBITDA(1) | $ | 10,797 | $ | (6,469 | ) | $ | 3,753 | $ | - | $ | (4,627 | ) | $ | 3,454 | ||||||||||
(1) Segment Adjusted EBITDA is our primary measure of segment profitability under
Source:
2024 GlobeNewswire, Inc., source