Note 17 - Operating Segment Information

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

As described in Note 1, effective in the second quarter of 2022, the Company realigned its reportable segments to correspond with changes to its organizational responsibilities, management structure and operating model. We have reclassified prior period segment disclosures to conform to the current period presentation. As a result of the change, the Company manages and reports the following segments:

Branded Products segment: Primarily through our signature marketing brands BAMKO® and HPI®, we produce and sell customized merchandising solutions, promotional products and branded uniform programs. Branded products are sold to customers in a wide range of industries, including retail, hotel, food service, entertainment, technology, transportation and other industries. The segment currently has sales offices in the United States, Canada, Brazil, the United Kingdom and Colombia, with support services in China and India.

Healthcare Apparel segment: Primarily through our signature marketing brands Fashion Seal Healthcare® and WonderWink®, we manufacture (through third parties or in our own facilities) and sell a wide range of healthcare apparel, such as scrubs, lab coats, protective apparel and patient gowns. This segment sells healthcare service apparel to healthcare laundries, dealers, distributors and retailers primarily in the United States.

Contact Centers: Through multiple The Office Gurus® entities, including our subsidiaries in El Salvador, Belize, Jamaica, Dominican Republic and the United States (collectively, “TOG”), we provide outsourced, nearshore business process outsourcing, contact and call-center support services to North American customers.

Intersegment eliminations include the elimination of revenues and costs from services provided by the Contact Centers segment to the Company’s two other segments. Such costs are recognized as selling and administrative expenses in the Branded Products and Healthcare Apparel segments. Income and expenses related to corporate functions that are not specifically attributable to an individual reportable segment are presented within Other in the tables below.

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. No customer accounted for more than 10% of the Company’s total net sales in 2022 or 2021.

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

	Branded Products			Healthcare Apparel			Contact Centers		Intersegment Eliminations			Other			Total
As of and For the Year Ended December 31, 2022:
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
Goodwill impairment charge		25,595			20,323			-		-			-			45,918
Intangible assets impairment charge		5,581			-			-		-			-			5,581
Other periodic pension cost		-			-			-		-			2,116			2,116
Gain on sale of property, plant and equipment		-			-			-		-			3,435			3,435
Interest expense		288			118			-		-			4,488			4,894
Income (loss) before taxes on income	$	(6,785	)	$	(27,134	)	$	16,148	$	-		$	(20,264	)	$	(38,035	)
Depreciation and amortization	$	6,465		$	3,946		$	2,373	$	-		$	220		$	13,004
Capital expenditures	$	4,643		$	1,169		$	4,876	$	-		$	330		$	11,018
Total assets	$	224,116		$	150,335		$	43,368	$	-		$	39,122		$	456,941

	Branded Products		Healthcare Apparel		Contact Centers		Intersegment Eliminations			Other			Total
As of and For the Year Ended December 31, 2021:
Net sales	$	340,487	$	139,288	$	64,312	$	(7,101	)	$	-		$	536,986
Cost of goods sold		240,331		87,142		26,671		(3,172	)		-			350,972
Gross margin		100,156		52,146		37,641		(3,929	)		-			186,014
Selling and administrative expenses		70,035		35,733		23,756		(3,929	)		16,465			142,060
Other periodic pension cost		-		-		-		-			1,786			1,786
Pension plan termination charge		-		-		-		-			7,821			7,821
Interest expense		73		154		-		-			993			1,220
Income before taxes on income	$	30,048	$	16,259	$	13,885	$	-		$	(27,065	)	$	33,127
Depreciation and amortization	$	4,327	$	3,372	$	1,483	$	-		$	109		$	9,291
Capital expenditures	$	9,415	$	4,860	$	3,421	$	-		$	-		$	17,696
Total assets	$	244,410	$	170,582	$	29,315	$	-		$	25,938		$	470,245