SGC - Earnings call transcript Q2 2021 | Superior Group of Companies, Inc.

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Operator

Good afternoon, everyone. Welcome to Superior Group of Companies Second Quarter 2021 Conference Call. With us today on behalf of the company are Michael Benstock, company's Chief Executive Officer; Andy Demott, Chief Operating Officer, Chief Financial Officer and Treasurer; Phil Koosed, Chief Strategy Officer. And from the Promotional Products Division, we have Jake Himelstein, BAMKO's President. After the speakers' opening remarks, there will be a question-and-answer session. recorded participation being agree that is this. to call and implies your you This

then off ahead. Hala simply now don't Harbor Advisors, you If drop the read turn Director Three Safe call who Managing will like Please the the over Senior to go Elsherbini, statement. of Part to I’d line.

Hala Elsherbini

Exchange hope the statements such chain, and demand. Group are of Securities Companies', expressions at Thank you, on This of of and current everyone. own XXXX, Superior assumptions. similar statements, afternoon, Act of Securities expectations, conference the including call words of Company and customer management forward-looking inventory, variations estimates Such supply manufacturing Private capacity about service expect, Reform within as projections, and meaning outlook, issued Words the and such identify include such good company's and may business, COVID-XX impact of Act statements contain and and there under. facilities, upon capacity Securities forward-looking think, statements of Act which XXXX, the the contract regulations on all the manufacturing based Litigation company's will, rules believe, the XXXX anticipate,

materials, the on year Form conform readers other June Report recently. uncertainties the areas known the the result over and the X-K on from that in operations XX, to for company's XX-Q customers, the Commission, XX, involve of periodic crisis the of XXXX, availability Securities actual global the of impact whether by in the uncertainties information, for Shareholders, risks and on update are as as are ended report potential quarter effect differ XXXX required Please ended changes quarterly December which States the where and the to or makes Form and with used; limited all in disclosed to that XX-K risks filed but COVID-XX following that period are future are manufacturing investors not Michael. otherwise, where in call filings employees; sold Annual undertake and integrate conditions United relate statements. well forward-looking under forward-looking cause in company's such and suppliers operations, that, changes Exchange including statements expectations, factors the of will and the following; unless I'll the general in the markets herein place note our to in company's statements cautioned With the acquisitions; results and where to to turn corresponding or urged call does statements and the the to company competition; growth the except located; the unknown business not Such consider services forward-looking products these law. US and to company's noted. to to worn, are a economic markets; contained made of The those future XXXX the evaluating here results Forward-looking center forward-looking successfully as may as of by ability uniforms new promotional customers the are undue otherwise today risks the not and reliance materially suggested events are carefully on comparisons uncertainties company's confirmation the statements. include management the and

Michael Benstock

Thank you, everyone. afternoon, Hala. Good

Thank longer joining single results. and QX longer all of think our quarter. to you us every your this I gets portion for discuss

excited leader by our and joined expertise. In pleased acumen I'm into to with Phil Andy Koosed, tap appointed we're addition member newest Strategy strategic our Philip Officer recently Chief C-suite. the Jake, further dynamic to his and be of and to proven is

of breadth certainly industry past these deserved. invaluable President has well asset. Additionally, as and depth COO to an recent few leader is CFO BAMKO as and tremendous promotion work of experience, M&A His well his prior and is been business years. as serving Jake His

For level Jake's open operational of then the highlights on call format, direction, financial I’ll higher thoughts and provide the will by review followed strategic BAMKO. our Andy will second provide and quarter Phil an review. the

As when done line will we open usual, the are for we questions.

us a numbers. going expect I'm million for last with We weakened now This $XXX get million pandemic. hope our to quickly guidance update a gave of in seeing sectors gives our the $XXX mark. to numbers now than by we started. XXXX fiscal uniform $XXX XXXX, were during To are also call. In So expected yet normalize guidance million. we're let's $XXX perspective of second our the first budgeted in some our direction sales to that was approaching keep in with moving confidence second Sales return channels. a XXXX, In other In in strong for spectacular a our approach of core revenue sales revenue million, sales up right uniform million the here business our quarter faster recovery strong quarter $XXX particular, revenue throw target to $XXX prospering. par our our it. out most in businesses We're by keep are levels were the our million. versus results I and our visibility we lot greater half revenue XXXXs of total on Overall, quarter puts exceeding seeing that

XXXX, this Our $XXX year, core last million. for is was sales PPE non

our this sales eclipse for last actual results anticipated greatly year. Our core will sales year fiscal

guidance XX.X% remains to respect Our our growth XXXX from with the same.

nearly XXXX of along exceed $X in expect acquisitions to our meet revenue with on and billion. consolidated $XXX are goals We track achieving CAGR organically in million to

our segments. Let's review a take closer of

ID the pandemic markets, uniform serving healthcare essential normalizing compared end year. both of our division, anticipated, and employee As pace to purchasing last are when frenetic

nearing is entertainment, with particularly levels. hospitality, booming exceeding and transportation. activity in even evident customers’ HPI, is is some For service This pre-pandemic demand and lodging, food

checking to returning including they RFPs. an are rebounding during issue As market sales, that’s upgrades corporate the pandemic, and paused customers realize uniform

also the with shared team our in selling opportunities. uncover executed market in customer last acquisition approach our participate a HPI towards beta sales we approach service, began in BAMKO in strategy, to can you since deepens XXXX. increase sales I a and excited to of Jake speak sales QX, that will are direct more seeing As this. this This both we've BAMKO more as move opportunities. tested remarks. initiative the versus HPI a team in about We're more to paying tell is ability acquisition his cross divisions a we successfully dividends. quarter which about we This exponentially at our already many result, combine

a a results requirements already shore have on XX%. division, tailwinds, to BAMKO are accommodate tweak from to Regardless outsourcing We're remarkable operating of they many could ever hybrid done done is goal at Customer our post existing on-boarding. future as to this unprecedented continues at us. only customers growth. new and for seeing to our investments in to delivered products. forecast, and third many office in resulting more this incentive in add work put our for during entire in seats US we've wanting the team be to rate tasks of of infrastructure as preference and accept Our hiring that the an a seeing had on center. continue results be groups, was of standpoint, and slightly outstanding sales XXX for of their work solution current somewhat of from are the office for with customers of difficulty the going tremendous than our home thought customers do profitability Keep ambitious our pandemic and in XXX XXX. We're choices more record which mix in working the customers Many to To the consecutive of around same to in growth, many teams perspective, XXXX the to that for the Overall, the a quarter billable in we remote cost put bag. we'll realization first the half openness From discussion of capitalize staffing year, the environment, promotional in a of lower delivered prospective have work leave willing new original of their we the remotely of opportunity experiencing they’re Jake. core customers these to the near and I'm again XXX XXXX. come rest in and USA. quarter BAMKO QX for remote have agents margin agents across all a agents added for total XXX where we sites. mind had now seat

including as our ours. as Turning increased environment. to challenges, chain logistical many persist prices and supply for Global businesses, well for raw materials operating

early inventory are on disruptions. basis, over But a We level further us, gives immune has insulation a term stance our the and of our on competitors. smaller building provided proactive longer advantage from not

than mourning in period. tragedy of begin hiring uninterrupted, our the needed jobs, levels. are In factories, removed We're coming largely inventories of the two we in incentive now regard any and and I retention the domestically training has In more and our company's and addition, have Overall, believe epicenter lower a production a said aggressive earlier, couple programs, impact distribution in staffing events that the Port-au-Price. still presented as tragic the disruptions. third as facilities not days recent also the remain the and except of [wonderment] us like facilities unexpected from faced adequate others, hiring material allow business. challenges The fortunately, disruption unemployment Haiti our wage aggressive in We recruitment, been creative for to a in should mandated following to which far open. offset mode made supplemental managed experienced to government for maintain own products to And are staff of our in combined cessation headwind day facilities centers. to our our facility with benefits those has also we we a Haiti,

leaders I As start company. the we to at our continue said by impressed the rising in the call, be of

passionate the innovation entrepreneurial Officer. and driven We're from to company. take key first are him and assets success. They hardworking. Chief strategic Our it future and team here. our welcome our the Phil, pleased as to is are Strategy Phil's mindset, to drive,

Phil Koosed

XXX to enter of role an new entrepreneur Michael. to this second on I'm direction nature. years as growth. I’m future SGC strategic of we shape our very you, excited the by take and Thank help

success any ability So I the into future the company. really to SGC. know to reinvent business built is ability this is reimagine the of It's This and are central of Reimagining I'm growth so reason reason to the excited that the the of of years just surviving, future we this than main XXX the it. the this business about of we primary more focus why is are and after thriving. DNA role

future create can have built we growth. an foundation We incredible upon which

to areas of upon critical our our on our M&A the experience, briefly. I organization. client strategy, these be shaping and Some focusing on expanding throughout build efforts will will enhancing technology each talent touch

technology our shaping strategy. First,

and needs the our machine is every the in a into as Nowadays no SGC next to business. learning, rapidly company from we different. benefit advanced tech of robotics Technology expand This decade will aspect be and already every in company AI, weaves developments blockchain.

of these of will some and will our our involve technologies at we existing being upon Some that building improve proprietary forefront technologies that require in-house these of developments can new efforts the developed business. have

the highlights have the customer experience companies with experience. in showing On client the just side, at we how good some are largest amazing some we of world,

not rest we on However, laurels. must our

it we experience at will We obsessed diligently work will improve every and level. to be client with

Our upon will success the build had to acquisitions. M&A with previous strategy have our rich we continue

six acquisitions transformational. and years eight their been has made last have in the We effect

so terms We in pipeline being maintaining acquisition robust focused can acquire. will of extremely of we on our be strategy selective current who continue we a

We Lastly, talent know on everything. talent the is front. that

that company, we on have we the organization talent an focused it. in a the the attract privileged of will Therefore, of to best entrepreneurs’ be luxury anywhere sure and be hiring part retain is feel This we As global playground, world. and world. laser in the making I

XXX-year with ideas. startup the are we old called are experimenting continuously because We new

a five primary the reason next years. this the $X Our will experimentation within be type culture we of is billion encourages company and

would quarter as call our CFO over and to Now new promoted become Having like Jake I this turn to our Jake as worked on President COO the of watch leadership to years, to new think I role. Jake? better excited with business this can person to no elevates Jake for of I'm exceptional the take his eight levels. of Himelstein. BAMKO to served being BAMKO. before

Jake Himelstein

exciting Phil. you, time such Thank an BAMKO. such and humbled incredible This team. I'm for and SGC is to honored for an lead

Now onto the quarterly review.

slowed sales quarter. PPE substantially this expected, As down

did that QX come not did of QX in sales recur PPE extraordinary Our not XXXX as XXXX, a surprise.

year. our has that income are million, quarter sales thrilled ended we a operating continue of to and $XX the and promotional $XX.X of in the of revenue BAMKO profit business resurgence we core rest report throughout million. with XXXX to expect However, of that second of product $X experienced million the Overall, gross

is figures XX% represent phenomenal. was XXXX. nature PPE anomalous quarterly revenue. of that quarter's of promotional quarter’s product decreases promotional QX year. year made division we even PPE This marks report driven and revenue third $XX.X with consider Perhaps were at a high period results most has I'm ago, core these this extraordinary to same product trend impressively, particularly an sales quarter time heights. Promotional This that While watermark back the all the a year-over-year XX% all from total from this in This now last set When new our our this quarter. to revenue continue increase come a revenue is of up over our that over happy exciting you to time flourish business. million. at an it's the upwards product our the greater consecutive high

sectors the in the Clients COVID the than US the we to of have an see open budgets year quicker increase industry restrictions, started vaccine in gifting. spend planning increased travel we to and products the QX. employee Marketing have spend entertainment end anticipated. promotional With started back of much and have during rollout the companies in easing up seen already for and their

of up X% the or in about products about promotional by half it to XXXX of XX% to as X% was levels. pre-COVID industry compared first first half a remained whole compared XXXX, the when down the While

of made products. is Our This backlog promotional at higher than at entirely up almost XXst. backlog June XXth was $XX.X million, March core XX%

first acquisition and to the six to Another market of first quarter January strong ability trend team Overall, merchandise X% in continues spend. continued gain BAMKO create of XXXX, this gains, resurgence during We've scale discussed operating exceptionally the product operating margin half on sales with PPE our compared promotional a over months leverage to well executed our XX%. sign calls, of strong conversion that XXXX of customers We've prior our from of Design. customer Gifts contribution sales branded continued and from XXXX. posting share to an benefited By very

as otherwise cross opportunities of been changes. uniform impacts, same expansion strong unsolicited many and a front, move as corporate BAMKO’s pandemic both This uncovered. existing many seeing would brand typically and allowing sense more large reps already selling altered not XX newborn This we sales to as yielded new out potential are our clients. robust, has within sell that we product plus well groups made promotional our M&A the opportunities uniform On the the to and significant directly at products team surface proposals programs, is and now seeking new given buyer including promotional vast law pipeline a employee potential QX, programs programs related programs represents ID SGC approach customers. of result The have selling as tax on a partner. In uniform

to any in company Finally, biggest number list. last was the product top I'm on I'll we for distributors high over review. for our greatest in proud jumped team, financial at the promotional now entire speaks was from his fourth position consecutive in growth This work of eight of the promotional the turn operational call to BAMKO honors. XXXX's strength incredible customer products ranked North spots the and one to and America. industry BAMKO and rate of named this the to the year. XX listing to number Andy continues latest also as for announce our year which proposition value achieved industry We year, that BAMKO receive the XX of companies

Andy Demott

everyone. afternoon, good and Jake Thanks,

all advantages live efficiency. We’re million expected with for across our the upgraded center, Eudora, distribution significant facilities beta of our go next QX provide investment The as is savings, and capital well testing to approximately annual pace slated technology with year. of new as early yield at consolidation Arkansas are robotics $X launch initiatives

reap Haiti Dallas And in of efficiencies, as to continue and distribution center our higher manufacturing benefits facility We now beginning is well. resulting automation robotics CID in operations. our from the third improved

declined Consolidated market to PPE prior PPE excluding PPE sales exclusive share. and $XXX.X $XX consolidated a sales, net we Turning $X.X highlights. compared Uniforms we financial $X.X with to increased the markets approximately quarter take XX% were the X% was to million $X.X PPE second million compared year a to of the products’ or of by million. see net XX% XXXX sales ago. in sales additional line to expectations. as sales, to sales or million rebound million decreased decrease in quarter continue Including continue related compared year. to This our year versus in and last PPE

sales demand Additionally, second book adding of industries. on that transportation reduced and as move well we to business in been to extraordinary an successful capitalize to the and market. recovering a channels seeing We PPE through in included to demand as this surge XXXX restaurants new for to this of are higher the were quarter continue such in non-PPE pandemic. has and products of second last the demand healthcare part with healthcare hospitality positioned resurgence change industries, We're an uniform non year growing quarter healthcare the offset offset

to pandemic, but had was we on that delivered. As backlog we it booked transparency quarter critical business the to PPE provide provide progressed felt through been each the information yet not

that growth of will with the relationships intersegment the evaluating expectations portion customer expected is is exceeded it's for the team to meaningful for sales shift reported office Jake’s a Growth business. not sales move to significant state to already of onboarding and new The uniform uniform attributed tremendous rate. be very XX% I’ll results, our an primarily impressive net quickly orders an engagement million. to moving revenue the backlog at forward, our uniform customer Now bureaus. PPE crisis is and up eliminations because BAMKO's reviewed of and expanded after $XX.X incredible not

tremendous have tailwind in to continue segment. We this

the of XXX XXXX. in increased a XX.X% margin second quarter basis For gross sales point to percentage from quarter, consolidated improvement as a XX.X%,

last to Our $X.X XX.X% X%, expense bad a year of approximately percentage lower reflecting PPE debt compared due sales, XX.X% total second decreased XX.X% primarily of a SG&A quarter was versus SG&A Income decrease million. as quarter And million last in to XXXX expenses million the solid year. margin for from XX.X% $XX.X was sales in quarter. $XX.X a current in the operations second was the period. second compared Operating to in

comprehensive qualified $X.X impact the noncontributory terminations of planned quarter, the diluted we million, resulted within assets earnings million cash tax Net acceleration The benefit we the month of benefit of $X.XX a charges of per this XXth, of During termination. three plan and which June during a did of second share fully represents pension Company. XXXX. $X.X two settlement second in and were by remeasuring the our ended of obligations the recognized the plans, require other charge funded. which Consequently, charge pension quarter loss previously reduction of and not the of outlay defined terminated recognize accumulated included deferred during the

windfall was diluted year. by These stranded pension options were termination the tax Net quarter million benefit to pension effective the favorably or in plans. Our partially income non-deductible of were ago. $X XX.X% $X.X rate compared recognized of that compared the and benefits share a during XX.X% or to offset diluted The charge. by from effective was $X.X per two million stock rate a impacted last per 'XX as $X.X tax exercised share $X.XX result quarter for of termination year million was quarter second tax the the million for quarter $XX.X of benefits

related Excluding our net of the XXX the represented the and share company's highest note, impact in quarter would of year $X.XX the quarter of second 'XX. diluted pension tax second per have history. XXXX income the termination charge quarterly earnings benefit, Also been in

equivalents in We liquidity cash $X.X the the first had the at million, current a an year. of $XX.X was of strong million. for position increase XXth and $X.X of and CapEx half million are cash year in June we

in increased recognition on to regular performance, of are efficiency, and the Board $X.XX $X.X six in to paid our the still We XXXX. of by In $XX XXXX respectively share. million XXXX, June in the expect target XX% range outlook. be with our remarks back and for his general closing dividends. automation quarterly to In for per now and I'll $XX second in and a for million months the to and quarter of our dividend XX, strong the CapEx total call we ended continuing million turn Michael investments $X.X Directors million

Michael Benstock

of we're a is execution Those targeted we SGC. have you talented, like hardworking, very beyond footing acquisitions. Andy. both heights in your billion been business us priority are for strongly information I'm times was future. to our but and These you for -- us With focused remains are lot from and via long That new have to of years in year. our disciplined leadership always take SGC Thanks are workforce And We before in know laser on of top we having exciting strategies, its best coming and than now. call the there. still believe we'd with the who questions. on organically that, long-term ever place five that in grow plans right open confident to $X less being that will passionate our the

Operator

Mulrooney, Blair. Tim William from comes question First Instructions] [Operator

Tim Mulrooney

uniform back easier the But down comparison. to get uniform a in think on I PP&E business excluding X% I the do think half the comparisons on those the about year. So of business, was tough start

see growth this in half to mind So today, excluding PP&E? you the business with year-over-year of XXXX, in second that you what in would know expect on based

Michael Benstock

pandemic we’re we're the during businesses point. up the playing With non-essential at what of this considered and catch that seeing the resurgence fact was

areas. been quite shy normally has us explained quarter of or what that we in think some unusual. pretty ordered some a logistical customers in three ordering pretty they a two nightmares safety And left our well service stuff I times from standpoint, have also these

business. So resurgence up, as to see that going we a catch we're of quick

starting On is healthcare little calm the a walmart.com, down the new new target.com and selling we're other and -- in a starting where hand, a lot although, our channels new to for fashion and bit, channels one. we're recently and we're certainly at business scrubs zappos.com was

side, the will that lot with what of a pandemic. depend on institutional On happens the

As resurgence hospital somewhat are to apparel, last patient gowns, of censuses scrub going apparel, expect all a that up, were our we our the and barrier in see coats items even quantities year. our isolation bought in great

So leveled the working our willing by we're environment yes, we create the expect of uniform made to certainly, that. go and beyond end off the business have year, difference we're to up to the

Tim Mulrooney

of was make the you side, side but helping on of to of going which channels up comparison with my channels the the retail on on because was channels. healthcare new going be or question, you difficult for named And you mostly PP&E. institutional mentioned addressed specifically to My opportunity, question kind a next are be, retail bunch some new the these to

So fair mostly to the to the side comes is you growth to moving from? is it where for it is say the come on retail is is going forward, that guys, opportunity when what it larger that,

Michael Benstock

mix bag. It's really a

who's months have the a merchandise, retail sure side on we our know couple product branded new theirs, moving through also but the of XX,XXX the of customers the are released theirs. We ago, SanMar, customers distributor we you press for

kind for have of adopting UniFirst I is they're the healthcare side others between [CID] which fashion, healthcare business. a institutional the product, that announced crossover and [Indie] believe as the have their of and also fashion that product We

It really to So it's from going them. is mixed a both very bag. come of

Tim Mulrooney

backlog Jake to pandemic specifically. Phil And to your you Jake, and BAMKO engaged. of say a looks during a including you know very lot And strong. is customers lot out like PP&E, previously folks It I you the hadn't to congratulations with that new helped I promotions. wanted on of of the

into promotional is, how of do much of PP&E my of traditional So if think this result those I products some converting is customers? increase customers the guess you any, backlog, in question

Jake Himelstein

times some were Certainly, about business. of promotional it we We've penetrate when convert and only XXXX they consistent. product us third they able right? to PPE we've and said find third get product customers it there with continue needed is customers. a trusted to their the before of to customers We And right? that, stays in to those converted and into customers, these in been of We've pretty about and a additional PPE, promo work our promotional toughest opportunities there

So virtually we And it think script is think board, the to expand. is of only most that's the I going backlog to our but And to part is impressive promotional branded as is that going into in of continue strong. the across seeing think PPE, we really all a be none coming we're mentioned that exciting I it's that's what's that really products strong most and merchandise. is what And resurgence holiday season that well.

Tim Mulrooney

in, be not Andy, know would more Phil. if for one Michael, just don't PP&E. or it's I If or this I could But sneak

million But of you'd XXXX expect expect what well year to million PP&E So last $XX you $X this this above still PP&E about guess, but down still in you from forward kind or million million peak the that $XXX in generated year. and to remain so elevated to be, I revenue relative than be much pre-COVID levels? level, this Is lower $XX moving XXXX, XXXX. the

Andy Demott

we've it of quarter. that and $XX the think -- prices million, we does really first the PPE more that bit I is in include a little already I had mean

of part of product expectation we're for selling gig -- me bit. programs for kind PPE become little that uniform has kits a starter back the up let economy of Part the Our type people.

have hand starting kit to and in think mask, going they're sanitizer gloves. to going going their have people are going a I have forward, to

really talking $XX million, basis, probably in up your million… Some $X of that being normal from product you're PPE. pure in non-question ongoing somewhere as PPE the But type, I just be an show going think not our and to

Operator

question from [Indiscernible] Next comes Investments. Tim

Unidentified Analyst

had questions. two I

there. [Technical CapEx The sort mentioned Difficulty] working big first it And year, use weighted looks outlook of of for XXXX, of capital. half there's was like first heavily the the you a that in

wondering flow full two you and was to year around highlighted how then just your was the of bit customer more items the in the go of could focus? about a and the first talk cash address And address which if I sale, the for just experience, you specifics XXXX? So will the second free little the question the technology were strategy sort

Andy Demott

Relative as those from some off commercial really the incentive mean, paying of were sales that half comp I as to acquisitions, products the some across year income well first primarily included the our in of relative taxes as last the company, of based payments as year and cash really to out items. well arena, type on earn executive flows, significant extraordinary

So a heavy the of first that half. it was during use

capital somewhere that also, down the perspective, as to chain supply and its the just start in expenditure its a forward. as that prepared we bit beef going to did mentioned, now Michael between continues out. chain we as as do due a to leveling We back way way that $XX be We would be From go see for to our and work for expect is million. remarks, million expect we work supply year to mentioned inventories number and I up $XX also my

be expect Michael, positive would should here do answer to it? we flow perspective. cash from want from you So we to a

Michael Benstock

second the No. that part -- was And question… Phil of

Phil Koosed

second part question. The of that

technology time. much, on our our seeing disclosing ahead without heavy integrate been technology we've in some too more quite and now So technology would into I to The curve part been time. respective for technology for into front, And we've the ability further industries we're our and more exciting quite on say industry well is some business. the

and an that course our say permitting we able the in have making advantage now been and industries some But direction the I AI already affect been in are of competitors side, our last pretty coming we've robotics good many can board. warehouse of that towards. an some we has that technologies the we in really cases, over pretty newer and blockchain learning in years. by on. widen have that that's AI some the And on that technology chain couple I ahead of stay decades, gap robotics the advanced business there been our to and across and of the how already out advantage various mentioned working advanced and might So supply right of in would we advancements terms believe we’re machine the embracing

that looking our because it'll really technology widen gap we're between and the come to forward think us the so we through, seeing on And front. competitors

foremost. the there focusing developed On and mean, and customer our the is what that question, fact because got main that client deliver past we're on something fans with business be think sure we their and the business. perspective are and reason goes of from of making customers’ that base. that business services to any the the part first that's sure and and that's the only I not what providing actually what your sales think we've their customer worth on in side, more of but is that an and get we continues future. second experience we've referrals the done our is in why I focused experiential fans within experience our they've out making what going and happy customer That's more And to their actually from I

And make so referring to go and also that how business so going our and into focus we customer in is happy, ramp us are really and we're and good this future. only do various folks making not the the that's but experience the

Unidentified Analyst

the and Can you retention measure of customer fan customer sort base? among level

Phil Koosed

we we’ll Yes, and to that's continue something that measure measure.

Operator

Kevin Barrington from Steinke, question comes Instructions] [Operator Research. Next

Kevin Steinke

to asking start about, you uniform mentioned new that in just and to pickup? by driving can more wanted Michael, on prepared off what's that and bit opportunities on expand you think your a programs little seeing I bid comments I

Michael Benstock

start to so are it, most the wearing are driving but let's factors new many with there now. people right struggling are, everybody the that fact that jobs get low uniforms. think wage I employees people At

four three, five. uniforms, So of they by been employee Also them turnover putting has uniforms, improved, them have you sets they're of or enticing might levels more we’ve power told give giving instead into increased. two

the So jobs. later, jobs decides somewhere you two you read he hire leaving else, their people employee, reports about to an weeks go

So us. get the go There's they they sale new person new have another for to a for uniform hire.

more scrubs. hours have lot fashion working been They've buying I on healthcare a been the They're doing made of side, retail think it. money crazy overtime. have of working workers

for RFPs new got being a really out pandemic very I collected saw didn't all I think, makeovers that. I get to require see the we before, recession, period active recession just -- of Everybody's have stores head and that come a of PPP context that is logos logos, only during recolorations at our we've will lot more It's And out this require used of aggressive. normal do ago were what here, recession, 'XX. out this flurry that of make to. during come and least we've sand, we I spent, a logos of uniforms of Kevin, something than the RFPs, pandemic, branding other the been and I we this the remember about flurry we a see big very, new a think marketing rebranding spoken decade and come money that new out so people more we've about we a through got we slow. which always whenever current match not while dumped got of out never we and We ago, of themselves. time, 'XX decade because their stronger, stores their come always in we recession, it did new post customers, to whenever their reaching lost, said, in think, But their dollars of prospective people this we

but in customers to to have in team we with that all people HPI uncover, many people frankly, respect now in opportunity that do that could world salespeople to today's is respect to more is to those I salespeople There presenting. people and we and really start from behind have And described appointments. our than an And those zoom group to with was in of quite I country face or five not XX will that's this a front appointments we face past. of and believe going big XX think, getting training we huge. the XX strategy ready up is have we're get us

So right RFP the the standpoint direction in I of from think is activity. everything moving

patterns good were is service. to our I suddenly we're And hurting But the to think we're as that. a our and of this inventory during lot that pretty yourself I inventory used what XX nightmarish. think deal a it's that's faster, can’t of too find truly logistical of talking I need there. competitors with nightmare competitors. much pickup lot that it's now. short days down in do taking most And out logistical mean, let XX people days, any this think better of And nightmare you ordering any of take pandemic but whole about positioned because get than I

-- like storm. think pot for us just I So But we're that's to it's it's it it and I call the doing. to follow gold have rainbow the what of perfect the we

Kevin Steinke

business kind strengthened by I specific you’re your wanted segments? increase being driven about to of or it compared follow $XXX $XXX all Is to million approaching that the in up now on board any just previously. sales -- targeting XXXX million across just is

Andy Demott

[TOG] at about Michael back businesses we the I the good on where Kevin, uniform of we're BAMKO. talked bouncing very businesses. is it's Jake And feel really about stronger. doing. is clearly well mean, all them. how with across all covered

board. feel comfortable be we that So to very the across really it’s going

Kevin Steinke

call was, internationally. an Can you didn't stand update plans to that? quarter, provide I you us with about initiative talked where and mention the I And on something think unless last that and that just expand then CID missed it their on you

Michael Benstock

without I can any competitive provide giving a little away to you bit advantage.

to orders starting our and for are ship Poland take We warehouse.

agreed person let us a working a as for for firm an that was that We directly person they worked have hired away employee. consulting from to us where

resumed to shows overall trade all whereas last our about our did no strategy going business of We of did. for million we mind shows trade year Europe $XX Keep last was we and already in before in year, our have across segments. that international

that million the into international executive do makings people, to sure turn few frankly looking years. on got doing we're areas in group. brought we've serious we right our planning right right sales into business We're And we're focused Europe. make to So the quite strategic the think the that, deep now some of got very that we another next we've to $XXX

actually a of the waste right engaging that move some so doing us it. We lot help area experts money are into places, to in we don't

to essentially And how get so that's we're going there.

Kevin Steinke

or any guess have logistics and that? chain issues your know the the also various around loosening updated And how also And kind of rippling that through improvement that see you the any in last they're inflation, and to you I you price I or of just increases time thoughts uniform economy. sort related Do on any supply going seen those implemented need business. the do some macro of front, you And talked about that issues? on call again the again update forward, on

Michael Benstock

We need ourselves. cover we wouldn't in or regularly, pretty so do our price to be to have industry. the ones initiated to whether only early at we again our increases, looking We're price increases

much taken customers possible. inventory protect to as our to we've on long said, I positions as As try

the fact everything will is So air, not in It's pipeline going be. tripled. freight that than ocean, the our that the some at least cases, have lowest what to be than change in costs, doubled, as we more possibly more cost

So any the your see at They logistical first not all. to seem part of no, easing be problems. of question, we don't easing

still think getting very us. -- they're reaching of out position competitors are customers our because badly. very, there frankly, fact, our of a than to We which helps In many struggling any hear competitors. worse, out quite I better about And us we're in people

up our servicing other the in where have, very going we’re the whatever customers X% HPI, we're or to we'd we're in like as So not I'm places that they market But they with sure said sand. though the XX% is not activity I'm share the sure in heads having there's still of constant with it here, even And to, also. in past, of. burying our of particularly way there's places some that a I customers, market don't transparent, have the X% being level where our specific communications

everything and it's people there's upset year this this than not easing capability customers, job, enough duty essentially taking they we're don't the up mid resolved. online a having this read, I ships, gets to Because we of from are space competitor's it whole customers lot it all. under our this Internet at -- don't win and And to our of And that's where now. any into cargo house pay it more think country still it in have think ordering -- Asia, that's end, something before year it. it. going $XXX, there's and learned your and shipped of on But be logistical to I see see don't so I problem next we comes of this from if might

lot able of there's lot directly a container So to it's a doing so. taking Asia, have businesses from kind people who be in space ship more up own to reinvented of their but

pay that customers won't to they So products. prospects get want don't expensive opportunities. too become people an folks I pay see it. for to and easing eventually, become and their hopefully next the of And it'll bounty to will And have our some those

Kevin Steinke

it M&A bubbling Jake think, opportunities about more the space. promotional product lastly ask you talk wanted to mentioned, about was then -- in And up I I

If few opportunities, you with those quite about a mentioned and inbound calls you at potentially look combining BAMKO.

kind just arise think actual maybe when think for know you're you would But look can and this as result the do would really of opportunities. partner candidates As bar opportunities you want those quality at that environment to of try you high nice looking you solid maintain at you’d a challenging of that competitors? that with? talk pipeline, about maybe be a that opportunities many of how represent kind I

Jake Himelstein

across of mean, areas business. all we're at I looking the acquisitions look

high a to accretive we to look for that in right, do hit of to for has targets our We the did has the year in we of future in elsewhere robust companies order what business by our as a got Design, are line, we bar acquisitions, different of opportunities And Certainly, of to with this business. all those integrate, BAMKO but good bottom all Gifts bringing that the divisions, and pipeline line culture, well. easy right for new earlier there it's we QX, opportunities. needed saw have be All you're acquisition.

talking discussion in ones. be we're just the of with been in of we've of and a for held, to that find different that to right always could targets talking some we're lot years. number And to dozens find to which talking companies, have So order there we've we to right And a dozens Kevin, be the one.

more So these. presents an we're then itself opportunistic being of right often the not opportunity. some time's it because jump opportunity calling to we're to not But not and us and for going you never at just us people know right it's the when

certainly we're come solicit new to we So they opportunities. in keep going them at as and looking as

Operator

This concludes the question-and-answer session.

like Please I'd Now go ahead. conference to remarks. Benstock closing Michael for turn the over Mr. to back

Michael Benstock

We're all real quarter right. today. report next at. you you us very for October. quick. in results. much great hope All of to make Thank joining We excited this for It's about business continued See you is long where you. to very been our I'll

Operator

The Thank conference for attending presentation. now concluded. you has today's

disconnect. now may You

Superior Group of Companies (SGC) 28 Jul 212021 Q2 Earnings call transcript