SUPERIOR GROUP OF COMPANIES, INC. Segments Disclosure

NOTE 2 – Operating Segment Information:

 

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 and Brazil, with support services in China and India.

 

Healthcare Apparel segment: Primarily through our portfolio of brands Wink® and Fashion Seal Healthcare®, its trade name CID Resources and our license of Carhartt Medical, 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 apparel. This segment sells its products 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, Dominican Republic, the United States and Jamaica until its closure on June 15, 2025, we provide outsourced, nearshore and onshore 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 table below.

 

The chief operating decision maker, who is the Company’s Chief Executive Officer, evaluates the performance of our segments. Segment EBITDA is the profitability metric reported to the Company’s CODM for purposes of making decisions about allocation of resources to, and assessing performance of, each reportable segment. Segment EBITDA is calculated as net sales less cost of goods sold and selling and administrative expenses. Segment information for total assets is not presented as this information is not used by the Company’s CODM in measuring segment performance or allocating resources between segments.

 

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
For the Year Ended December 31, 2025:
Net sales		$	361,134			$	115,866			$	92,520			$	(3,336	)		$	-			$	566,184
Cost of goods sold			237,422				73,904				43,540				(1,546	)			-				353,320
Gross margin			123,712				41,962				48,980				(1,790	)			-				212,864
Selling and administrative expenses			96,067				39,550				42,385				(1,790	)			23,263				199,475
Depreciation and amortization			5,637				3,718				2,650				-				350				12,355
Segment EBITDA		$	33,282			$	6,130			$	9,245			$	-			$	(22,913	)		$	25,744
		Branded Products				Healthcare Apparel				Contact Centers				Intersegment Eliminations				Other				Total
For the Year Ended December 31, 2024:
Net sales		$	353,314			$	119,191			$	96,949			$	(3,778	)		$	-			$	565,676
Cost of goods sold			228,591				73,445				44,742				(1,680	)			-				345,098
Gross margin			124,723				45,746				52,207				(2,098	)			-				220,578
Selling and administrative expenses			94,384				41,149				42,999				(2,098	)			23,492				199,926
Depreciation and amortization			5,948				3,892				2,968				-				377				13,185
Intangible assets impairment charge			-				260				-				-				-				260
Segment EBITDA		$	36,287			$	8,749			$	12,176			$	-			$	(23,115	)		$	34,097

 

The following table reconciles total Segment EBITDA to income before income tax expense:

 

		Years Ended December 31,
		2025				2024
Income before income tax expense		$	8,246			$	14,294
Interest expense			5,143				6,358
Depreciation and amortization			12,355				13,185
Intangible assets impairment charge			-				260
Segment EBITDA		$	25,744			$	34,097