Superior Group of Companies, Inc. (NASDAQ:SGC) Q2 2023 Earnings Call August 7, 2023 5:00 PM ET

Company Participants

Michael Benstock - Chief Executive Officer

Mike Koempel - Chief Financial Officer

Conference Call Participants

Kevin Steinke - Barrington Research

Jim Sidoti - Sidoti and Company

David Marsh - Singular Research

Operator

Good afternoon, everyone. Welcome to the Superior Group of Companies’ Second Quarter 2023 Conference Call. With us today are Michael Benstock, the Company's Chief Executive Officer, and Mike Koempel, the Chief Financial Officer. As a reminder, this conference call is being recorded.

This call may contain forward-looking statements regarding the Company's plan, initiatives and strategies and the anticipated financial performance of the Company, including but not limited to sales and revenue. Such statements are based upon management's current expectations, projections, estimates and assumptions. Words such as expect, believe, anticipate, think, outlook, hope and variations or such words and similar expressions identify such forward-looking statements.

Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. Such risks and uncertainties are further disclosed in the Company's periodic filings with the Securities and Exchange Commission including, but not limited to, the Company's most recent Annual Report on Form 10-K and the quarterly reports on Form 10-Q.

Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein, and we are cautioned not to place undue reliance on such forward-looking statements. The Company does not undertake to update the forward-looking statements contained herein, except as required by law.

And now, I’ll turn the call over to Mr. Michael Benstock. Please go ahead.

Michael Benstock

Thank you, operator, and thank you, everyone, for joining today’s call. I’ll begin by reviewing our second quarter highlights on a consolidated basis, including an update on our strategy to navigate the current economic uncertainty and ultimately position the Company to capitalize in the compelling growth opportunities ahead.

I'll then review our three business segments and our various initiatives to more profitably grow each business. Mike, will then provide more detail on second quarter results along with an update on our full-year outlook. We'll then open the call for Q&A.

We generated consolidated second quarter revenues of $129 million compared to $148 million for the same period last year, along with consolidated second quarter adjusted EBITDA of $7 million compared to $5 million in the prior year quarter which excludes last year's non-cash impairment charges. Our overall financial performance was consistent with the soft market conditions described in our last quarterly call. In the midst of a challenging market environment, our team remained focused on delivering on our commitment to drive positive cash flow and strengthen our balance sheet.