Note 10 - Operating Segment Information

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 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 June 30, 2020:
Net sales	$	75,842	$	9,351	$	75,456	$	(1,290	)	$	159,359
Cost of goods sold		47,937		4,239		51,725		(480	)		103,421
Gross margin		27,905		5,112		23,731		(810	)		55,938
Selling and administrative expenses		20,014		3,517		13,577		(810	)		36,298
Other periodic pension cost		333		-		-		-			333
Interest expense		338		-		95		-			433
Income before taxes on income	$	7,220	$	1,595	$	10,059	$	-		$	18,874
Depreciation and amortization	$	1,551	$	197	$	342	$	-		$	2,090
Capital expenditures	$	2,600	$	180	$	40	$	-		$	2,820
Total assets	$	252,503	$	21,030	$	84,637	$	-		$	358,170

	Uniforms and Related Products		Remote Staffing Solutions		Promotional Products		Intersegment Eliminations			Total
As of and For the Three Months Ended June 30, 2019:
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(1)	$	255,746	$	23,614	$	67,652	$	-		$	347,012

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

	Uniforms and Related Products		Remote Staffing Solutions		Promotional Products		Intersegment Eliminations			Total
As of and For the Six Months Ended June 30, 2020
Net sales	$	135,944	$	18,551	$	101,634	$	(2,525	)	$	253,604
Cost of goods sold		86,609		8,227		70,324		(945	)		164,215
Gross margin		49,335		10,324		31,310		(1,580	)		89,389
Selling and administrative expenses		38,239		6,913		20,215		(1,580	)		63,787
Other periodic pension cost		618		-		-		-			618
Interest expense		1,210		-		283		-			1,493
Income before taxes on income	$	9,268	$	3,411	$	10,812	$	-		$	23,491
Depreciation and amortization	$	2,861	$	414	$	684	$	-		$	3,959
Capital expenditures	$	4,452	$	346	$	95	$	-		$	4,893
Total assets	$	252,503	$	21,030	$	84,637	$	-		$	358,170

	Uniforms and Related Products		Remote Staffing Solutions		Promotional Products		Intersegment Eliminations			Total
As of and For the Six Months Ended June 30, 2019
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(1)	$	255,746	$	23,614	$	67,652	$	-		$	347,012

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