OTE

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Operating Segment Information

The Company classifies its businesses into

three

operating segments based on the types of products and services provided. The Uniforms and Related Products segment consists of the sale of uniforms and related items. The Remote Staffing Solutions segment consists of sales of staffing solutions. The Promotional Products segment consists of sales to customers of promotional products and other branded merchandise.

The Company evaluates the performance of each operating segment based on several factors of which the primary financial measures are net sales and income before taxes on income. Amounts for corporate expenses are included in the totals for the Uniforms and Related Products segment. Financial information related to the Company's operating segments is set forth below.

(In thousands)
As of and For the Three Months Ended June 30, 2019	Uniforms and Related Products		Remote Staffing Solutions		Promotional Products		Intersegment Eliminations			Total
Net sales	$	60,745	$	8,993	$	23,744	$	(1,212	)	$	92,270
Cost of goods sold		38,937		3,824		17,600		(434	)		59,927
Gross margin	$	21,808	$	5,169	$	6,144	$	(778	)	$	32,343
Selling and administrative expenses		18,779		3,448		5,436		(778	)		26,885
Other periodic pension cost		547		-		-		-			547
Interest expense		963		-		296		-			1,259
Income before taxes on income	$	1,519	$	1,721	$	412	$	-		$	3,652

Depreciation and amortization	$	1,582	$	249	$	320	$	-		$	2,151
Capital expenditures	$	2,997	$	196	$	63	$	-		$	3,256
Total assets	$	287,690	$	29,161	$	94,971	$	(64,810	)	$	347,012

As of and For the Three Months Ended June 30, 2018	Uniforms and Related Products		Remote Staffing Solutions		Promotional Products		Intersegment Eliminations			Total
Net sales	$	56,403	$	8,001	$	19,014	$	(1,026	)	$	82,392
Cost of goods sold		36,222		3,355		13,893		(356	)		53,114
Gross margin	$	20,181	$	4,646	$	5,121	$	(670	)	$	29,278
Selling and administrative expenses		17,399		2,778		3,820		(670	)		23,327
Other periodic pension cost		96		-		-		-			96
Interest expense		495		-		263		-			758
Income (loss) before taxes on income	$	2,191	$	1,868	$	1,038	$	-		$	5,097

Depreciation and amortization	$	1,449	$	253	$	318	$	-		$	2,020
Capital expenditures	$	708	$	554	$	97	$	-		$	1,359
Total assets	$	303,099	$	25,664	$	60,142	$	(53,743	)	$	335,162

(In thousands)
As of and For the Six Months Ended June 30, 2019	Uniforms and Related Products		Remote Staffing Solutions		Promotional Products		Intersegment Eliminations			Total
Net sales	$	119,424	$	17,592	$	44,103	$	(2,297	)	$	178,822
Cost of goods sold		77,298		7,384		32,333		(804	)		116,211
Gross margin	$	42,126	$	10,208	$	11,770	$	(1,493	)	$	62,611
Selling and administrative expenses		36,956		6,567		10,718		(1,493	)		52,748
Other periodic pension cost		806		-		-		-			806
Interest expense		1,841		-		588		-			2,429
Income before taxes on income	$	2,523	$	3,641	$	464	$	-		$	6,628

Depreciation and amortization	$	3,070	$	505	$	636	$	-		$	4,211
Capital expenditures	$	4,155	$	605	$	219	$	-		$	4,979
Total assets	$	287,690	$	29,161	$	94,971	$	(64,810	)	$	347,012

As of and For the Six Months Ended June 30, 2018	Uniforms and Related Products		Remote Staffing Solutions		Promotional Products		Intersegment Eliminations			Total
Net sales	$	104,528	$	15,300	$	37,690	$	(2,039	)	$	155,479
Cost of goods sold		67,811		6,493		27,720		(698	)		101,326
Gross margin	$	36,717	$	8,807	$	9,970	$	(1,341	)	$	54,153
Selling and administrative expenses		31,538		5,290		9,022		(1,341	)		44,509
Other periodic pension cost		192		-		-		-			192
Interest expense		555		-		480		-			1,035
Income (loss) before taxes on income	$	4,432	$	3,517	$	468	$	-		$	8,417

Depreciation and amortization	$	2,514	$	490	$	642	$	-		$	3,646
Capital expenditures	$	1,393	$	819	$	202	$	-		$	2,414
Total assets	$	303,099	$	25,664	$	60,142	$	(53,743	)	$	335,162