8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 6, 2023

Superior Group of Companies, Inc.

(Exact name of registrant as specified in its charter)

Florida	001-05869	11-1385670
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

200 Central Avenue, Suite 2000, St. Petersburg, Florida (Address of principal executive offices) 33701 (Zip Code)

Registrant's telephone number including area code: (727) 397-9611

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230 .425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	SGC	NASDAQ

Item 2.02    Results of Operations and Financial Condition

The following information is being furnished under Item 2.02 of Form 8-K: Press release by Superior Group of Companies, Inc. (the “Company”) announcing its results of operations for the quarter ended September 30, 2023. A copy of this press release is attached as Exhibit 99.1 to this Form 8-K.

Item 7.01   Regulation FD Disclosure

On November 6, 2023, the Company posted an investor presentation on its website. A copy of this presentation is attached as Exhibit 99.2 to this Form 8-K.

The information furnished pursuant to Items 2.02 and 7.01 of this Form 8-K, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.0l     Financial Statements and Exhibits

(d) Exhibits

Exhibit Number	Description
99.1	Press Release, dated November 6, 2023
99.2	Investor Presentation, dated November 2023
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.

SUPERIOR GROUP OF COMPANIES, INC.
By:	/s/ Michael Koempel
	Michael Koempel
	Chief Financial Officer

Date: November 6, 2023

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

SUPERIOR GROUP OF COMPANIES REPORTS THIRD QUARTER 2023 RESULTS

– Total Net Sales of $136.1 million versus $138.7 million in Prior Year Third Quarter –

– Net Income of $3.1 million versus net loss of ($12.7) million in Prior Year Third Quarter –

– Adjusted EBITDA of $9.3 million versus $9.7 million in Prior Year Third Quarter –

– Board of Directors Approves $0.14 Per Share Quarterly Dividend –

– Provides Updated Full-Year Outlook –

ST. PETERSBURG, Fla., November 6, 2023 – Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its third quarter 2023 results.

Third Quarter Results

For the third quarter ended September 30, 2023, net sales decreased 1.9% to $136.1 million, compared to third quarter 2022 net sales of $138.7 million. Pretax income was $3.3 million compared to a pretax loss of ($17.0) million in the third quarter of 2022. Net income was $3.1 million or $0.19 per diluted share compared to a net loss of ($12.7) million, or ($0.80) per diluted share for the third quarter of 2022.

In the prior year third quarter of 2022, the Company recognized pre-tax, non-cash impairment charges related to goodwill of $21.5 million ($17.1 million net of tax, or $1.07 per diluted share). On an adjusted basis, which excludes impairment charges made in the prior year third quarter, this quarter’s net income of $3.1 million or $0.19 per diluted share compares to $4.4 million or $0.27 per diluted share in the prior year. At the conclusion of this press release is a reconciliation of reported-to-adjusted results, including a description of the significant items.

“We delivered stronger sequential results that are consistent with our back-end weighted full-year outlook, while again producing positive free cash flow, further reducing debt, and strategically investing to capitalize on future demand,” said Michael Benstock, Chief Executive Officer. “Our strong customer retention reflects our sharp focus on customer service, and along with new customer wins in each segment underscores our potential to drive even stronger growth and profitability when economic uncertainty lifts. Our Board’s latest quarterly dividend approval reflects our shared confidence in the opportunities across all three of our attractive end markets, and our ability to further enhance shareholder value.”

Third Quarter 2023 Dividend

The Board of Directors declared a quarterly dividend of $0.14 per share, payable December 6, 2023 to shareholders of record as of November 22, 2023.

2023 Full-Year Outlook

For full-year 2023, the Company is updating its Outlook to include a sales forecast range of $538 million to $545 million compared to its earlier forecast of $550 million to $560 million, and an earnings per share forecast range of $0.46 to $0.53 compared to its earlier forecast of $0.45 to $0.55.

1

Webcast and Conference Call

The Company will host a webcast and conference call at 5:00 pm Eastern Time today. The live webcast and archived replay can be accessed in the investor relations section of the Company's website at https://ir.superiorgroupofcompanies.com/Presentations. Interested individuals may also join the teleconference by dialing 1-844-861-5505 for U.S. dialers and 1-412-317-6586 for International dialers. The Canadian Toll-Free number is 1-866-605-3852. Please ask to be joined to the Superior Group of Companies call. A telephone replay of the teleconference will be available through November 20, 2023. To access the replay, dial 1-877-344-7529 in the United States or 1-412-317-0088 from international locations. Canadian dialers can access the replay at 855-669-9658. Please reference conference number 4364975 for replay access.

Disclosure Regarding Forward Looking Statements

Certain matters discussed in this Form 10-Q 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 Quarterly Report on Form 10-Q 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, (4) statements of expected industry and general economic trends and (5) the projected impact of the COVID-19 pandemic on our, our customers’, and our suppliers’ businesses.

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 the United States of America (“U.S.” or “United States”) in which the Company’s customers are located; changes in the healthcare, retail, hotel, food service, transportation and other industries where uniforms and service apparel are worn; our ability to identify suitable acquisition targets, discover liabilities associated with such businesses during the diligence process, successfully integrate any acquired businesses, or successfully manage our expanding operations; the price and availability of cotton and other manufacturing materials; attracting and retaining senior management and key personnel; the effect of the Company’s material weakness in internal control over financial reporting; the Company’s ability to successfully remediate its material weakness in internal control over financial reporting and to maintain effective internal control over financial reporting; lingering effects of the COVID-19 pandemic, including existing and possible future variants, on the United States and global markets, our business, operations, customers, suppliers and employees, including the length and scope of restrictions imposed by various governments and organizations and the continuing success of efforts to deliver effective vaccines and boosters, among other factors; and other factors described in the Company’s filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section herein and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.

About Superior Group of Companies, Inc. (SGC):

Established in 1920, Superior Group of Companies is comprised of three attractive business segments each serving large, fragmented and growing addressable markets. Across Healthcare Apparel, Branded Products and Contact Centers, each segment enables businesses to create extraordinary brand engagement experiences for their customers and employees. SGC’s commitment to service, quality, advanced technology, and omnichannel commerce provides unparalleled competitive advantages. We are committed to enhancing shareholder value by continuing to pursue a combination of organic growth and strategic acquisitions. For more information, visit www.superiorgroupofcompanies.com.

Investor Relations Contact:
Investors@superiorgroupofcompanies.com

2

Comparative figures are as follows:

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share data)

	Three Months Ended September 30,
	2023		2022
Net sales	$	136,126	$	138,703
Costs and expenses:
Cost of goods sold		82,928		88,066
Selling and administrative expenses		47,246		43,815
Goodwill impairment charge		-		21,460
Other periodic pension costs		214		528
Interest expense		2,464		1,794
		132,852		155,663
Income (loss) before income tax expense		3,274		(16,960	)
Income tax expense (benefit)		160		(4,241	)
Net income (loss)	$	3,114	$	(12,719	)
Net income (loss) per share:
Basic	$	0.19	$	(0.80	)
Diluted	$	0.19	$	(0.80	)
Weighted average shares outstanding during the period:
Basic		15,992,792		15,806,852
Diluted		16,155,355		15,806,852
Cash dividends per common share	$	0.14	$	0.14

3

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share data)

	Nine Months Ended September 30,
	2023		2022
Net sales	$	396,061	$	430,218
Costs and expenses:
Cost of goods sold		248,159		281,667
Selling and administrative expenses		134,007		131,998
Goodwill impairment charge		-		45,918
Intangible assets impairment charge		-		5,581
Other periodic pension costs		642		1,584
Interest expense		7,658		2,676
		390,466		469,424
Income (loss) before income tax expense		5,595		(39,206	)
Income tax expense (benefit)		380		(5,042	)
Net income (loss)	$	5,215	$	(34,164	)
Net income (loss) per share:
Basic	$	0.33	$	(2.17	)
Diluted	$	0.32	$	(2.17	)
Weighted average shares outstanding during the period:
Basic		15,954,264		15,739,381
Diluted		16,132,832		15,739,381
Cash dividends per common share	$	0.42	$	0.40

4

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

	September 30,			December 31,
	2023			2022
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	17,729		$	17,722
Accounts receivable, less allowance for doubtful accounts of $5,267 and $7,622, respectively		98,289			104,813
Accounts receivable - other		86			3,326
Inventories		105,134			124,976
Contract assets		46,765			52,980
Prepaid expenses and other current assets		10,824			14,166
Total current assets		278,827			317,983
Property, plant and equipment, net		48,666			51,392
Operating lease right-of-use assets		18,806			9,113
Deferred tax asset		10,677			10,718
Intangible assets, net		52,098			55,753
Other assets		12,983			11,982
Total assets	$	422,057		$	456,941
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	45,168		$	42,060
Other current liabilities		37,433			38,646
Current portion of long-term debt		4,219			3,750
Current portion of acquisition-related contingent liabilities		1,321			736
Total current liabilities		88,141			85,192
Long-term debt		103,134			151,567
Long-term pension liability		13,262			12,864
Long-term acquisition-related contingent liabilities		387			2,245
Long-term operating lease liabilities		13,440			3,936
Other long-term liabilities		8,582			8,538
Total liabilities		226,946			264,342
Shareholders’ equity:
Preferred stock, $.001 par value - authorized 300,000 shares (none issued)		-			-
Common stock, $.001 par value - authorized 50,000,000 shares, issued and outstanding 16,505,826 and 16,376,683 shares, respectively		16			16
Additional paid-in capital		76,515			72,615
Retained earnings		121,308			122,979
Accumulated other comprehensive loss, net of tax:
Pensions		(990	)		(1,113	)
Foreign currency translation adjustment		(1,738	)		(1,898	)
Total shareholders’ equity		195,111			192,599
Total liabilities and shareholders’ equity	$	422,057		$	456,941

5

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Nine Months Ended September 30,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	5,215		$	(34,164	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		10,331			9,504
Goodwill impairment charge		-			45,918
Intangible assets impairment charge		-			5,581
Inventory write-downs		1,609			5,781
Provision for bad debts - accounts receivable		64			1,565
Share-based compensation expense		3,523			3,382
Deferred income tax benefit		-			(6,361	)
Change in fair value of acquisition-related contingent liabilities		(442	)		284
Change in fair value of written put options		(460	)		(1,791	)
Changes in assets and liabilities, net of acquisition of businesses:
Accounts receivable		6,410			3,521
Accounts receivable - other		3,240			978
Contract assets		6,208			(10,222	)
Inventories		18,280			(19,242	)
Prepaid expenses and other current assets		3,462			579
Other assets		(844	)		2,677
Accounts payable and other current liabilities		2,148			(9,561	)
Payment of acquisition-related contingent liabilities		(279	)		(3,346	)
Long-term pension liability		561			1,662
Other long-term liabilities		362			(1,249	)
Net cash provided by (used in) operating activities		59,388			(4,504	)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment		(4,023	)		(11,221	)
Acquisition of businesses		-			(11,202	)
Net cash used in investing activities		(4,023	)		(22,423	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings of debt		4,000			320,143
Repayment of debt		(51,813	)		(274,898	)
Debt issuance costs		(300	)		(869	)
Payment of cash dividends		(6,886	)		(6,380	)
Payment of acquisition-related contingent liabilities		(553	)		(1,416	)
Proceeds received on exercise of stock options		97			684
Tax withholdings on vesting of restricted shares and performance based shares		-			(232	)
Net cash provided by (used in) financing activities		(55,455	)		37,032
Effect of currency exchange rates on cash		97			(132	)
Net increase in cash and cash equivalents		7			9,973
Cash and cash equivalents balance, beginning of period		17,722			8,935
Cash and cash equivalents balance, end of period	$	17,729		$	18,908

6

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands, except share and par value data)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2023		2022			2023		2022
Net income (loss)	$	3,114	$	(12,719	)	$	5,215	$	(34,164	)
Interest expense		2,464		1,794			7,658		2,676
Income tax expense (benefit)		160		(4,241	)		380		(5,042	)
Depreciation and amortization		3,515		3,401			10,331		9,504
Goodwill impairment charge		-		21,460			-		45,918
Intangible assets impairment charge		-		-			-		5,581
Adjusted EBITDA(1)	$	9,253	$	9,695		$	23,584	$	24,473
Net income (loss)	$	3,114	$	(12,719	)	$	5,215	$	(34,164	)
Adjustment for items:
Goodwill impairment charge		-		21,460			-		45,918
Intangible assets impairment charge		-		-			-		5,581
Tax impact of adjustments(2)		-		(4,345	)		-		(6,385	)
Adjusted net income(3)	$	3,114	$	4,396		$	5,215	$	10,950
Diluted net income (loss) per share	$	0.19	$	(0.80	)	$	0.32	$	(2.17	)
Adjustment for items, after-tax, per diluted share		-		1.07			-		2.85
Diluted adjusted net income per share(3)	$	0.19	$	0.27		$	0.32	$	0.68
Weighted average shares outstanding during the period:
Diluted, as reported		16,155,355		15,806,852			16,132,832		15,739,381
Diluted, as adjusted(4)		16,155,355		16,196,767			16,132,832		16,195,155

(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 and diluted adjusted net income 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. Management believes adjusted net income and diluted adjusted net income 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 that are not reflective of our core business.

(4) Diluted weighted average shares outstanding used to calculate diluted adjusted net income per share includes shares of common stock of 389,915 and 455,774 for the three and nine months ended September 30, 2022, respectively. These shares were excluded from diluted weighted average shares outstanding used to calculate diluted net income (loss) per share, as the Company recognized a net loss their inclusion would have been antidilutive.

7

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT

(Unaudited)

(In thousands)

	Branded Products			Healthcare Apparel			Contact Centers		Other			Total
As of and For the Three Months Ended September 30, 2023:
Net income												$	3,114
Income tax expense													160
Income (loss) before income tax expense	$	5,506		$	1,991		$	3,173	$	(7,396	)	$	3,274
Interest expense		-			-			-		2,464			2,464
Depreciation and amortization		1,452			1,064			880		119			3,515
Adjusted EBITDA(1)	$	6,958		$	3,055		$	4,053	$	(4,813	)	$	9,253
	Branded Products			Healthcare Apparel			Contact Centers		Other			Total
As of and For the Three Months Ended September 30, 2022:
Net loss												$	(12,719	)
Income tax benefit													(4,241	)
Income (loss) before income tax expense	$	(17,635	)	$	1,237		$	4,390	$	(4,952	)	$	(16,960	)
Interest expense		87			32			-		1,675			1,794
Depreciation and amortization		1,724			973			653		51			3,401
Goodwill impairment charge		21,460			-			-		-			21,460
Adjusted EBITDA(1)	$	5,636		$	2,242		$	5,043	$	(3,226	)	$	9,695
	Branded Products			Healthcare Apparel			Contact Centers		Other			Total
As of and For the Nine Months Ended September 30, 2023:
Net income												$	5,215
Income tax expense													380
Income (loss) before income tax expense	$	16,630		$	3,542		$	7,888	$	(22,465	)	$	5,595
Interest expense		-			-			-		7,658			7,658
Depreciation and amortization		4,826			3,014			2,210		281			10,331
Adjusted EBITDA(1)	$	21,456		$	6,556		$	10,098	$	(14,526	)	$	23,584
	Branded Products			Healthcare Apparel			Contact Centers		Other			Total
As of and For the Nine Months Ended September 30, 2022:
Net loss												$	(34,164	)
Income tax benefit													(5,042	)
Income (loss) before income tax expense	$	(15,730	)	$	(19,627	)	$	13,071	$	(16,920	)	$	(39,206	)
Interest expense		205			84			-		2,387			2,676
Depreciation and amortization		4,696			2,942			1,697		169			9,504
Goodwill impairment charge		25,595			20,323			-		-			45,918
Intangible assets impairment charge		5,581			-			-		-			5,581
Adjusted EBITDA(1)	$	20,347		$	3,722		$	14,768	$	(14,364	)	$	24,473

(1) Adjusted EBITDA, which is a non-GAAP financial measure, is defined above.

8

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS BY QUARTER

(Unaudited)

(In thousands)

	Branded Products		Healthcare Apparel		Contact Centers		Intersegment Eliminations			Other			Total
For the Three Months Ended September 30, 2023:
Net sales	$	83,512	$	29,649	$	24,121	$	(1,156	)	$	-		$	136,126
Cost of goods sold		54,588		18,165		10,724		(549	)		-			82,928
Gross margin		28,924		11,484		13,397		(607	)		-			53,198
Selling and administrative expenses		23,418		9,493		10,224		(607	)		4,718			47,246
Other periodic pension cost		-		-		-		-			214			214
Interest expense		-		-		-		-			2,464			2,464
Income (loss) before income tax expense	$	5,506	$	1,991	$	3,173	$	-		$	(7,396	)	$	3,274
	Branded Products		Healthcare Apparel		Contact Centers		Intersegment Eliminations			Other			Total
For the Three Months Ended June 30, 2023:
Net sales	$	79,592	$	28,072	$	22,758	$	(1,260	)	$	-		$	129,162
Cost of goods sold		53,952		17,653		10,554		(593	)		-			81,566
Gross margin		25,640		10,419		12,204		(667	)		-			47,596
Selling and administrative expenses		20,362		9,466		9,614		(667	)		4,607			43,382
Other periodic pension cost		-		-		-		-			214			214
Interest expense		-		-		-		-			2,624			2,624
Income (loss) before income tax expense	$	5,278	$	953	$	2,590		-		$	(7,445	)	$	1,376
	Branded Products		Healthcare Apparel		Contact Centers		Intersegment Eliminations			Other			Total
For the Three Months Ended March 31, 2023:
Net sales	$	81,851	$	28,154	$	22,056	$	(1,288	)	$	-		$	130,773
Cost of goods sold		55,952		18,054		10,267		(608	)		-			83,665
Gross margin		25,899		10,100		11,789		(680	)		-			47,108
Selling and administrative expenses		20,053		9,502		9,664		(680	)		4,840			43,379
Other periodic pension cost		-		-		-		-			214			214
Interest expense		-		-		-		-			2,570			2,570
Income (loss) before taxes on income	$	5,846	$	598	$	2,125	$	-		$	(7,624	)	$	945

9

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS BY QUARTER

(Unaudited)

(In thousands)

	Branded Products			Healthcare Apparel			Contact Centers		Intersegment Eliminations			Other			Total
For the Three Months Ended September 30, 2022:
Net sales	$	86,769		$	30,039		$	23,363	$	(1,468	)	$	-		$	138,703
Cost of goods sold		60,600			18,609			9,453		(596	)		-			88,066
Gross margin		26,169			11,430			13,910		(872	)		-			50,637
Selling and administrative expenses		22,257			10,161			9,520		(872	)		2,749			43,815
Goodwill impairment charge		21,460			-			-		-			-			21,460
Other periodic pension cost		-			-			-		-			528			528
Interest expense		87			32			-		-			1,675			1,794
Income (loss) before income tax expense	$	(17,635	)	$	1,237		$	4,390	$	-		$	(4,952	)	$	(16,960	)
	Branded Products			Healthcare Apparel			Contact Centers		Intersegment Eliminations			Other			Total
For the Three Months Ended June 30, 2022:
Net sales	$	102,039		$	26,288		$	21,466	$	(1,860	)	$	-		$	147,933
Cost of goods sold		72,954			18,904			8,692		(750	)		-			99,800
Gross margin		29,085			7,384			12,774		(1,110	)		-			48,133
Selling and administrative expenses		24,004			9,801			8,402		(1,110	)		4,872			45,969
Goodwill impairment charge		4,135			20,323			-		-			-			24,458
Intangible assets impairment charge		5,581			-			-		-			-			5,581
Other periodic pension cost		-			-			-		-			528			528
Interest expense		63			34			-		-			486			583
Income (loss) before income tax expense	$	(4,698	)	$	(22,774	)	$	4,372	$	-		$	(5,886	)	$	(28,986	)
	Branded Products			Healthcare Apparel			Contact Centers		Intersegment Eliminations			Other			Total
For the Three Months Ended March 31, 2022:
Net sales	$	97,083		$	30,568		$	17,974	$	(2,043	)	$	-		$	143,582
Cost of goods sold		68,868			18,553			7,293		(913	)		-			93,801
Gross margin		28,215			12,015			10,681		(1,130	)		-			49,781
Selling and administrative expenses		21,557			10,087			6,372		(1,130	)		5,328			42,214
Other periodic pension cost		-			-			-		-			528			528
Interest expense		55			18			-		-			226			299
Income (loss) before taxes on income	$	6,603		$	1,910		$	4,309	$	-		$	(6,082	)	$	6,740

10

EX-99.2

Exhibit 99.2

XML

Document And Entity Information	Nov. 06, 2023
Document Information [Line Items]
Entity, Registrant Name	Superior Group of Companies, Inc.
Document, Type	8-K
Document, Period End Date	Nov. 06, 2023
Entity, Incorporation, State or Country Code	FL
Entity, File Number	001-05869
Entity, Tax Identification Number	11-1385670
Entity, Address, Address Line One	200 Central Avenue, Suite 2000
Entity, Address, City or Town	St. Petersburg
Entity, Address, State or Province	FL
Entity, Address, Postal Zip Code	33701
City Area Code	727
Local Phone Number	397-9611
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity, Emerging Growth Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	SGC
Security Exchange Name	NASDAQ
Amendment Flag	false
Entity, Central Index Key	0000095574