Superior Group of Companies, Inc. (NASDAQ:SGC) Q1 2023 Earnings Conference Call May 8, 2023 5:00 PM ET

Company Participants

Michael L. Benstock - Chief Executive Officer & Director, Superior Group of Cos., Inc.

Michael Koempel - Chief Financial Officer, Superior Group of Cos., Inc.

Conference Call Participants

Mitra Ramgopal - Sidoti & Co. LLC

Kevin Mark Steinke - Barrington Research Associates, Inc.

Tim Moore - EF Hutton Group

Operator

Good afternoon, everyone. Welcome to the Superior Group of Companies’ First Quarter 2023 Conference Call. With us today are Michael Benstock, the company's Chief Executive Officer, and Mike Koempel, 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 will, expect, believe, anticipate, think, outlook, hope and variations of 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 would like to turn the call over to Mr. Michael Benstock.

Michael L. Benstock

Thank you operator for the introduction, and I’d like to welcome everyone to our call today. I’ll start by reviewing our first quarter highlights, including the performance for each of our three business segments. During the discussion I’ll also provide updated thoughts on the evolving macro environment and our strategy to more profitably grow the business. I’ll then turn the call over to Mike who will take us through the first quarter results in more detail, and discuss our 2023 outlook. We’ll then open it up for Q&A.

Consolidated revenues were $131 million, relative to $144 million a year ago, and our consolidated EBITDA was $7 million, down from $10 million in the prior year quarter. We view this overall performance as consistent with both our expectations and messaging on our last call with respect to the softness we anticipated and still anticipate in the first half of this year. It is also reflective of the continued strategic investments we’re making to tap into the attractive addressable markets across all three of our business segments.