SUPERIOR GROUP OF COMPANIES, INC. Revenue Disclosure
The following table presents disaggregated revenue by operating segment for the periods presented (in thousands):
| Years Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Branded Products Segment: | ||||||||
| Branded products | $ | 353,271 | $ | 342,456 | ||||
| Personal protective equipment | 43 | 224 | ||||||
| Total Branded Products Segment | $ | 353,314 | $ | 342,680 | ||||
| Healthcare Apparel Segment: | ||||||||
| Healthcare apparel | $ | 115,553 | $ | 110,871 | ||||
| Personal protective equipment | 3,638 | 3,007 | ||||||
| Total Healthcare Apparel Segment | $ | 119,191 | $ | 113,878 | ||||
| Contact Centers Segment: | ||||||||
| Total Contact Centers Segment | $ | 96,949 | $ | 91,500 | ||||
| Net intersegment eliminations | (3,778 | ) | (4,756 | ) | ||||
| Consolidated Net Sales | $ | 565,676 | $ | 543,302 | ||||
Branded Products and Contact Center segments have a substantial number of customers, none of which accounted for more than 10% of either segment’s 2024 net sales. Our Healthcare Apparel segment has one customer who accounts for 10% of the segment’s 2024 net sales.
The Company recognizes revenue when the customer takes control of the inventory, either upon shipment or when the material is made available for pick up. If the customer is deemed to take control of the inventory prior to pick up, the Company recognizes the revenue as a bill-and-hold transaction in accordance with Topic 606. Sales under bill-and-hold arrangements totaled $33.6 million and $14.3 million, for the years ended December 31, 2024 and 2023, respectively.
Contract Assets and Contract Liabilities
The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers (in thousands):
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Accounts receivable | $ | 95,092 | $ | 103,494 | ||||
| Current contract assets | 51,688 | 48,715 | ||||||
| Current contract liabilities | 2,833 | 5,346 | ||||||
Contract assets relate to goods produced without an alternative use for which the Company has an enforceable right to payment but which has not yet been invoiced to the customer. Accounts receivable, current contract assets, and current contract liabilities were $104.8 million, $53.0 million, and $2.2 million, respectively for the year ended December 31, 2022. The majority of the amounts included in contract assets on December 31, 2023 were transferred to accounts receivable during the year ended December 31, 2024. Contract liabilities relate to payments received in advance of the Company completing its performance under a contract. Contract liabilities are included in other current liabilities in our balance sheets. The contract liability balance as of December 31, 2023 was recognized into revenue during the twelve-months ended December 31, 2024
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.