Note 10 - Operating Segment Information

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

N

OTE

10

–

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 sales to customers 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. To better reflect the way in which management now reviews the Company’s operating results, in the

third

quarter of

2019,

the Company changed the composition of total assets for each reportable segment to exclude intercompany balances. This change has been made to all periods presented within this Quarterly Report on Form

10

-Q. 

The following tables set forth financial information related to the Company’s operating segments (in thousands):

	Uniforms and Related Products		Remote Staffing Solutions		Promotional Products		Intersegment Eliminations			Total
As of and For the Three Months Ended March 31, 2020:
Net sales	$	60,102	$	9,200	$	26,178	$	(1,235	)	$	94,245
Cost of goods sold		38,672		3,988		18,599		(465	)		60,794
Gross margin		21,430		5,212		7,579		(770	)		33,451
Selling and administrative expenses		18,225		3,396		6,638		(770	)		27,489
Other periodic pension cost		285		-		-		-			285
Interest expense		872		-		188		-			1,060
Income before taxes on income	$	2,048	$	1,816	$	753	$	-		$	4,617
Depreciation and amortization	$	1,310	$	217	$	342	$	-		$	1,869
Capital expenditures	$	1,852	$	166	$	55	$	-		$	2,073
Total assets	$	249,629	$	22,436	$	72,541	$	-		$	344,606

	Uniforms and Related Products		Remote Staffing Solutions		Promotional Products		Intersegment Eliminations			Total
As of and For the Three Months Ended March 31, 2019:
Net sales	$	58,679	$	8,599	$	20,359	$	(1,085	)	$	86,552
Cost of goods sold		38,361		3,560		14,733		(370	)		56,284
Gross margin		20,318		5,039		5,626		(715	)		30,268
Selling and administrative expenses		18,177		3,119		5,282		(715	)		25,863
Other periodic pension cost		259		-		-		-			259
Interest expense		878		-		292		-			1,170
Income before taxes on income	$	1,004	$	1,920	$	52	$	-		$	2,976
Depreciation and amortization	$	1,488	$	256	$	316	$	-		$	2,060
Capital expenditures	$	1,158	$	409	$	156	$	-		$	1,723
Total assets(1)	$	255,949	$	21,770	$	61,855	$	-		$	339,574

( 1 ) Intercompany balances that were previously included in total assets for each reportable segment have been excluded.