Earnings call transcript Q4 2022

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Operator

Good afternoon, everyone, and welcome to Superior Group of Companies Fourth Quarter 2022 Conference Call.

With us today are Michael Benstock, the company's Chief Executive Officer, 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 plans, 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. expect, words think, such and statements. will, variations hope word as such of similar such believe, outlook, anticipate, and forward-looking Words expressions identify

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

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

ahead. will With Please Benstock. that, floor go Mr. I over to turn the

Michael Benstock

then introduction I'll After three strategy then available macro results and Mike our the grow performance our Thank providing results. moving to I'll I'll each you discuss be our outlook the business everyone provide by to and to and your on it will turn for update in an Mike over to forward. of segments, QX environment highlights I our of today and through to the for begin for our welcome call. us business the detail, walk earnings that, the financial greater XXXX. for XXXX sharing Q&A.

driven and segments. our X% over Consolidated center growth by the quarter, quarter. up were top revenues $XXX line continued with prior-year both contact million, branded growth in XXXX in finished We products the fourth

million which year top a sales near full annual our of achieved the As guidance in range. we XXXX $XXX end of was result,

year, healthcare segment. $X EBITDA write million, in $X our an due fourth in million the adjusted from apparel quarter million fourth inventory down consolidated down of $X primarily quarter last to Our was incremental

a beginning $X million take reflecting to results Revenues market, primarily by prior the EBITDA closer compared by segments the at Let's our million to stock the of $XX prior year of quarter at conditions relative million, the aforementioned apparel. quarterly apparel healthcare healthcare in with healthcare broader declined write-down. to $XX look quarter, ongoing now came inventory year due

Based to on our see purchasing mid equilibrium we 'XX, store by valuation, lower the expect levels inventory adjustments the of in better implemented end inventory year. and

customers our including through second Looking ahead, should increased emphasis own our of digital capturing emphasis, on primarily website the an new launch during direct-to-consumer growth, in strategy an markets involves the I new say quarter.

growth. strategy While business we of and confident leaner our to grow ability strong within the inventories customer facing take will market in that emphasis expansion awareness time. on and to over our business to a digital digital time investment overall apparel consumer and prospects the growth will revitalized approach We're share own an enable demand, omnichannel prove including recognize apparel profitability our and for capture healthcare with us and healthcare, build

more than benefiting fourth the Sutter's with million day. the $XXX our quarter, revenues We million quarter’s of every recognizable provide highly Mill X up largest of brands quarter generated the XXXX. during X% our market, which a from products acquisition products, in caregivers of the was essential range segment the contribution fourth year-over-year full during widest wearing Branded from made

in acquisition as completed well the was XXXX. As May that guardian of

future talent right a year quarter growth. uncertain rates up increase from and $X due investments mid-single down subdued $XX SG&A an Organic improved in million environment. partially last the and in last from million, margin in higher by Fourth in was demand inventory PPE EBITDA technology sales, year, driven economic to support declined demand part laughing to digits, by offset current gross

products market highly size an $XX Branded of total fragmented, attractive addressable domestically. with a billion is

by to customized strategy of continue is modest grow market X% than less compelling share to and very unique, high-quality offering our Our products.

XX% Our Fourth contact with of over million fourth sales quarter center the margin. segment talent, $XX related growth up revenues to support last and was infrastructure EBITDA as increase and million technology XXXX. quarter in another strong of had $X year quarter flat future of to gross SG&A in to investments offset,

XX%. contact On business with infrastructure investments with in highest a of forward. and Contact exciting XXXX margin Centers an pipeline our top-line as going SGC to full we finished achieving prospective year of XX%, combined strong growth growth profitable centers see a an of strong annual With with basis, customers, continue EBITDA our

to the turn XXXX. results now and Mike? I'll financial our take call for Mike through over us to outlook

Mike Koempel

for the joining our turn you, walking everyone results I'll and I'll initial and full-year thanks our financial start through outlook. to by call. Thank Michael, then

fourth the million, prior of the million $XXX generated year During X% from quarter, consolidated revenues SGC $XXX up quarter.

the gross quarter, inventory $X million points incremental year-over-year to margin Apparel. for Healthcare for write Our basis XX.X% was down due down the XX

incremental have the Excluding been gross our would XX%. charge, margin

as and expense sales third The of the from and Healthcare our sales expense to continued quarter Products higher XXXX as decline higher sales percent trend benefited from capitalize employee benefit quarter XX.X% compelling an improved expense continued which as year-over-year improved Branded leverage sales in SG&A on sequentially fourth in but XX.X%. reductions. third future especially well at the was the Apparel Contact due opportunities. infrastructure, in was than accruals, from a as well growth Centers of as and on quarter, adjustment within of improved the to deleverage of investments from cost XX% was increase talent The

Our in average the year, million compared as compared higher diluted and rates last a by during the in quarter. of $XXX,XXX quarter share ago a or interest million for to $X.XX $X.XX $X Net quarter. income the diluted per $X.X share, net or driven $X fourth debt to year income was a as combination of expense quarter outstanding higher of million, quarter fourth balance was interest per

million sold of for a in gain During office non-operating resulting proceeds, the in the company fourth quarter, million. its cash $X $X pretax building corporate

Excluding million to loss year adjusted or $X fourth driven year expense. the quarter's net results was the net share share, prior in $X.XX the primarily million increased and incremental write income period. loss compared the interest gain in was $X or of the termination decrease The charge, a fourth diluted by XXXX down prior pension per $X.XX quarter inventory per

Turning to million our sale to Cash equivalents cash of end. part corporate XX, as $X million of the office in from increased near to balance the year, sheet. $XX due and XXXX last year December

covenant times X.XX inventory Based more forecast, of our ratio will our terms exceed the our of our In EBITDA times, on our and that XXXX net is elevated. net than leverage EBITDA. not calendarization ratio of fourth of quarter covenant likely it remains debt covenant X charge position, we leverage the

a As agent in compliance order lending to year. we the needed initiated maintain to with have on ways a address discussions be it result, throughout potential should the amendment

continue will Healthcare our on well enhancement segment capital focus as We scrutinizing our our particularly as and to by levels expenses position, within operating working flow improving our capital optimizing Apparel cash inventory by expenditures.

prepared With outlook will full share be conditions in slow forecasting per to my are remarks economic and our diluted current adjusted which $XXX $X.XX gradually optimistic and XXXX. that business diluted we $X.XX, cautiously persist write year $XXX Overall, the improve sales share expect million conditions inventory for conclude I'll year. to throughout initial mind, earnings reflected to XXXX that compared sales are And in financial and XXXX between per we earnings of of significant downs. million million. $X.XX versus XXXX, between $XXX with

improve apparel sales that segment healthcare returned customer level, assumes last XXXX the throughout versus inventory digits demand single will will as levels. forecast gradually our levels to the and normalize year At low up be and year,

flat back products, to meaningful conditions branded of as of the year, from the challenging of segment the fourth half of into For single digits, the expect continuation download we the we estimate XXXX. with the quarter growth half be in first sales XXXX to market

Lastly, the reported digits, today. fourth continue contact to segments with a quarter consistent into we grow performance to double expect well center

for conditions our towards gradually back business as Given three expect returned relatively loaded results equilibrium. XXXX segments, underlying these we end market to expectations be our

and are confident ability on to our multiple in on We strategic long-term value. growth execute enhance our plan opportunities to capitalize shareholder

open prepared to take if please remarks. we'd concludes lines, be And questions. operator happy That you could our the

Operator

[Operator now first your will will with Steinke begin Barrington Kevin question-and-answer from Instructions]. And Research. come question We the ahead. session. go Please

Kevin Steinke

off about outlook Hi, asking wanted the start to by XXXX. good afternoon. I for

healthcare You significant growth economic the year. should apparel. you will mentioned business for expect time, that And conditions throughout leading second branded the in that lower you to half But products same of the momentum that and persist. to build express year gradually the improve optimism at conditions some

that throughout you what up in on color improvement? you can if outlook sight XXXX the So, a of helpful. building would do seeing branded think or will you you I or drive products? more improvement year overall of could pipeline I'm any to for that, guess kind discuss be of just, and Are inventory healthcare offer clearing line that

Michael Benstock

Unfortunately, little a to the the be segments. answer bit because longer going is of three

branded little lot layoffs back pause. buying been affected each businesses. of have in a have on mass experienced tech in people of we a economy Mostly, the products being curtailed clients on of our that being lot by and has it's spending budgets a not and holding money. So, mostly different marketing or space gig put some

this businesses. on, about as our say But, the year they'll goes each of

second the expected we in pent the is to demand. half, that As as benefit the later economy up improvement expect there which well Certainly, in improves, from year. will be as on

in the banking diverse some the what start can opinions how future? to macro who your might employees, now at the and for control to people have have back knows in before XXXX crisis, long can't held how and And most, hold gifting about back read create before we and time. brand latest that for uniforms so Obviously, certainly impact to environment. you employees allegiance your all You among things buy expect the looking We only customers. you have you the

year, business, strong. the get not have is of certainly the Now, center conditions. we continued when we'll you our strongly growth weakening, throughout very call demand economic feel because to It's current the that

a strengthening unique a to and a especially and so in is We're now, hire recession, situation. In entry fact, seen an positions, which demand, seeing United is we of recession, it's the it's hard kind haven't right where like a before. which typically States level in

in Keep can we launch control. in we right impacted our newness. completely we're And turning inventory, what able a to lot we're question of of size Healthcare present only when sitting will by our what well all still mind that quarter to direct-to-consumer third our favorably being businesses, continued and but of a omnichannel of apparel, timing we in that approach that with, spoke past, a by fourth lot as our quarter those be as to move inventories, able control about, can cash. it's slightly

of first view is be going half Our be to year, then it but it's tough half. to better going year, in things the the it's will in second a of the be

Kevin Steinke

on for outlook And the following right. the also insight Thanks All up there. for just XXXX.

maybe of based on interest expense you'd have can operating to actions about do margin get taken? be do expect margin you some You expansion cost meaningful expense, interest talk the baked in guess? you How you'd for assumptions and you've think some the savings bike I

Mike Koempel

Would inventory the XXXX, is charges this taken year. do answer write we those be happy in and your million In significant XXXX. prior this quarter for Mike. not of questions. we disclosed margin anticipate From types over as Kevin, this quarters, in lapping in perspective, Hi, a obviously, $XX and downs we've aggregate to have

margin the expect do healthcare improve within business. certainly we to our rate particularly So,

what as through that, which supply refer would addition are the chain certainly In of some we we costs, significantly pandemic. easing seeing increase to to

inventory so down. through down, see sell pre-pandemic come of some as benefits That lower half necessarily in back come those to the cost has we not our we levels, more of And in higher begin cost year. our to but rates, has that to this inventory started will of with the it again

expense, margin quarter partially we So, I anticipate third and quarter standpoint, already business. the that think in And in increase continuing. see can primarily that a in we significant improving from rate you see again interest fourth the interest in an

bringing So, we expecting still remain be to on to over based significantly debt up balances significantly XXXX, down to still average expect quickly our modeling, expecting our upon expense possible, in rates will high. focus again as to that outstanding, we debt fairly while be And would our expense XXXX. that we interest as continue are will

Kevin Steinke

amend to there. Thank you embedded then leverage Mike, the And having Okay. you. agreement ratio potentially lastly, mentioned credit in

to? sort of that able line amend having Just need have that do of to sight what confidence or in to you you to if potentially do being

Mike Koempel

Sure.

our of compression in at the you perspective. mentioned script, I the forecast, look short-term we quarter this charge. our as the combination creating view from a fourth again, really of As calendarization covenant when And XXXX

the obviously, why speak outcome are proactive took with that's obviously our looking weeks. of lending mutually reaching working agent. we out so lending I beneficial but Kevin, that we And can't forward the over to approach group, said, a coming them the certainly With to on for

Kevin Steinke

Thanks. to back Okay. queue. get turn I'll it the in over

Operator

go Hutton. The next question Tim from Moore ahead. will Please ahead. go with come Ef Please

Tim Moore

lapse, year the for nice that scenario million anniversary own X% for of seems similar was Xst. guidance to year. to And have sales a sales EPS If sales leverage just possibly it's four definitely guidance having December of from increase, sales providing first this and be it the thanks range, the SG&A acquisition I in May the X% question Guardian about Thanks. at to guidance before I from $X see this what on to despite asked. quarter. months the look It's my operating

kind in So, in say bit factor too the would if second back X.X% power conservative speaking when Because a you upside probably really swing factor side doesn't little what branded maybe sales bit the scenario likely type of for natural of be a looks in Guardian. like maybe towards, might in biggest of healthcare year? light guidance? end factor, And little to when Do rebound it I beyond $XXX and think if if that swing May, this pricing some you half in this be into the BAMKO? top could about organic in the growth Michael, X% million trigger wondering that more of it's the you could the mind year,

Mike Koempel

as can then conservative certainly hope the Hi, the We are before, is, you're said our in about optimistic we points year, Tim. out. there's we calling It's economic Michael it's cautiously mentioned remarks, start of outlook. and Michael prepared but Mike. as I'll add. on varying There view as

obviously we're we range And is so, believe our realistic. that

We team are ahead it's the range a as that believe going to range. to a exceed certainly we management for look we very work But realistic hard year. as

factored in which it number price healthcare that business have call out, of will a our a taken we've thinking is in. XXXX. earlier that And factoring we you apparel in started As the to And increases, are rebound.

the that. I product segment softness in half in there's to we feel Michael. range continue overall, half. the realistic what in again, to As year that rebounding we today. back to the we And some be it's mentioned, first team based expect on working think the here branded know very a over it we exceed of with that again, it's But a Pass diligently

Michael Benstock

the speak about me each Let of segments.

their previous representatives. of that? respect portion create accelerating some what give we've to I'll could is calls, the more to BAMKO, question. So, upside that said, on color sales recruiting efforts as to with

create, through that able the any past. to in So in far, of I been been year, number months, exceeding the can reps very tell successful period they've the first they've you this two two-month

they that beyond of revenue our products projections. possibly can could half second even the in the at branded if rate year, help our they So, the are continue

we're strategies side, have we're level launching there's cautiously our is realized we new which new then, us. market But be there apparel some projected now with success. and believe more that of talent. being respect to optimistic should a up to be DTC, our could course, that some employed TOG, those healthcare the contact ton share And of we to and on have help than and taken. strategies, we successful of That's they centers, which conservatively we even sales sales speed

give organization. And the successful might both realistic more wildly from down DTC future. the conditions in can execute what on put with that projected. a to strategy, of Dream and to they side together Team based respect more on But current at consumer-facing who branding we've the can wildly a than President I people side, be be digital think economic successful guidance the we wanted than we a on side, from We have in

Tim Moore

DTC ending sales healthcare. very That BAMKO the scenarios, reps launch and car thanks helpful was at on those and for details

centers, the opened center crews, up contact office Dominican October? in it ramping the the in since Republic been the how's For call

Michael Benstock

site especially as It's new It is, El call for question. really, can Good we've in beta Salvador has center a whether prove when it us yet and fully understand a too for early to new going us. Jamaica. That's Belize to it's be successful what that as and country. every as do been in in process, the us for to it's

our great And our mind work have We them capacity are of home. from to our customers, most people plenty still of from within our centers, of continuing home. customers, a of because all working don't deal

there's very needs there, pushed. want to the is to Dominican a less be now, we're push Right up we're pressure sure So, it doing to it sooner on ramp costs slow make us we than be. to our controlling it that what

are I'd and I less I multitude a people operational So, for about in question months say, don't But of six and a be know exact the more right more me able that answer customers. now, to it's XX doing our believe definitively. we ago, than give multitude of tasks building. I'll number,

Tim Moore

it clients about, sense. know revenues. really next a looks year My out but good, technology recently stabilized year-to-date, or existing at on maybe that there. Great have I are size or share questions, possibly seeing seen order Sure, BAMKO, you customers as not prospects two makes probably that And of seeing, for are stabilized wallet the BAMKO? you pulling back, because you're the your

Michael Benstock

conclusion whatever, that they're employee tell lot employees, we're ordering, buying But gifting, they're how they if customers. less. customers and or a much fewer on buying back they pulled and have correct any losing can I not is of have our What are to you

down. our order size So, has come

uncertainty, doing periods and of see time would in get into that, because a you lot everybody's price these side marketplace. than the activity the their On checking you normally out of more RFP you when see, other

responding deal a of great right So, are to RFPs we now.

We have in of on RFPs. just A there the very a who team a big could difference few wins, a success our few them. big was And of year. make

Tim Moore

I much a for estimate seems you'd trying might maybe do potential flow have you head triangulate inventory question tailwind be or my your around I'm capital. for the And a Mike excess wrap you How buffer it actually And have cash or year. from good to free this Mike. like think working

you kind number on you normalized by levels the that? get ever of more inventory June. calculated If Have those

Mike Koempel

sorry, to an mentioned to our in the down And from levels. targeted Tim, think account the obviously, the growth the the into we of fueling part to prior when to level, we've a and I'm the because had, by time would some you us be down take business, inventory of of targeting perspective, to I take we've get it's this end about inventories call, really the the better going bringing XXXX levels year elevated digits. same inventories of of down, mid-single but at be inventories

of Again, segments. other in we're down then seeing also the some bringing business the the growth fueling that but across that combination be healthcare would of a

goal with we've So flow been the inventory our certainly, remarks an has as year. of mentioned and feel achieve some that's We bringing cash down his will reducing prepared capital for in the in can free the the which reserves drive Michael target We our pricing. that improvement taken working that and focus. help

Tim Moore

of think to What spending drop at wondering of there in layoffs? drop by customers. is, any of end quarter? December just year December margin seasonal BAMKO mentioned And the you marketing had makes have helpful up those this so year my some any and write what there was I if You been the quarter know is you sense. tied is kind is the or the more technology And down backing which year the before. the gross question do maybe ever gross to of the That just in last of would inventory. or drop seasonal I was customers XX% margin dip

Mike Koempel

was business. in too businesses, seasonality, much the out, Yes. here called But as charge. the there is impact. QX typically, inventory the of There impact not is Tim, big not typically across in to the much Obviously, us an I

out, charges Branded As specifically were a the of within fourth taken the called gave last lapping the Michael some quarter. in Products an And that year, of which there of Products was improvement. in Branded QX segment,

just the just characterize rate the a a would margin then have have improvement lower also Products, some place. And timing seen again, that is But I of those have had been quarter, took actions as Branded of we wouldn't just as within the eliminated. in margin when of seasonal customers I more that, there

Tim Moore

and my Fair for thanks them. enough. That's for answering it questions

Operator

Mitra The from Please next question ahead. come Ramgopal with ahead. will Please Sidoti. go go

Mitra Ramgopal

And thanks for afternoon. good questions. taking the Yes,

capital ratio. wondering was can of us mentioned to maybe opportunities? if leverage spend 'XX. I terms ability or impact that maybe help in cetera, on willingness also elevated whether year, And technology, First, of your you this and Would consolidation headcount, you CapEx the it's et net on even

Mike Koempel

$XX we we Hi, Mitra. was year heavier a It's investment typically was as support perspective, actually have expenditures The to XX% business, And capital we can From four projects we CapEx are every see to a five years. the a company to million. for $XX Mike. or forward you. in and a about be hear from over down capital 'XX as down budgeting in XXXX. XXXX significant and to and It XXXX. you from year investment Nice look to continue the had will million capital XXXX to

the us to business. support investments appropriate make the of what our down. growth also are cash our enables debt at to still and generate time levels That needs the same bring we the believe recognizes to But

of timing good thought spend. feel our carefully have about capital So, And budget we this for also we that very year. the about

our if capital of toward happen so expenditures back we our unfavorable. talked as to is half also be forecast they So, latter if appropriately end react as year, can the we've more or loaded, the careful about that better more to are been before, financial we plan conditions

that answer your necessary. agility to the We question adjust Does that if Mitra? have

Mitra Ramgopal

curious repurchase? is how to in going And by But for M&A that. of in share terms relates just of dividends, terms be debt repayment, potential source allocation. a think should to as capital priorities obviously, actually, we share And

Mike Koempel

in shareholders first recognize our then the being the free of Mitra, dividend our and levels the of to capital will in down. a first be mergers pass improvement going with flow, of that the an you quarter debt to bring terms debt Michael again cash I'll our And importance evaluated to focus all, every committee our priority will levels. priority from but forward, our of driving we maybe it manage really be just board the and our acquisitions and Obviously, to standpoint.

Michael Benstock

the As prudent Mitra merger with up now. debt put the pass balance into we focused of not turning backburner possibly, the efficiencies our on Will within our more don't But on so. and another now, what and do to time, business year. levels, said on it's call last later it we year or the sheet opportunities, right on or in on cash. for right the what's next acquisitions be perhaps are we're really creating table to think Obviously,

is that focus. our And main

soon, you coming that the as out a our looking for have we'll one our for at we're year. of the and new see you we've there deck website M&A go the this things driver for If investor out to at least taken off, business could

we've doing been or of year, think it. to think we efficiencies, light whether And for opportunities since focused we're it's kinds on from on. we to largely on create mid-last time that to in standpoint. us efficiencies. on be on margin we automate an all will And right size, much good And SG&A our focus depends how success are a that a from business later the standpoint, gross for to opportunities acquirer. it's But driving There looking really that

So, be will on XXX% focused that. we

Mitra Ramgopal

And assuming on from rates, past, cetera, the little you that an in economic then you're the take in I'm you've as competitors? inflation, take or continue guidance to being a the been and able prolonged think, based continuing in periods year. you've but to know interest et even finally, it And of share, half the expect especially of or I high you I just to still to have share relates mentioned, conservative, wondering, downturn, where trend especially second

Michael Benstock

I is I'll our a want closer can a But us will the correct that is conservative we where we judge guidance not, a to say shareholder you to be we've level where that. be is from you or thing be let need assumption. value that to the Surely standpoint, get it's we from debt Whether is standpoint. that goal. And given that to growing of intend deliver And business the today. the profitably. that on

Mitra Ramgopal

to Thanks, Okay. questions. taking again

Operator

with will question from Singular come next The BJ Research. Cook

BJ Cook

guys. Thanks,

couple here. a Just of ones quick

there On any the are on just right inventory is the can of of that's track? the year, that? promotional downside? the more that on we can as more side, expect get rest get or back the assume non-cash, we for Or since write to And downs pricing the inventory we on track

Mike Koempel

I on more their liquidate QX, margin underperforming downs, inventory of us perspective. essence, so you're in as of write into that prices, business see mentioned pressure some our we upside the future The down for we're to, certainly will, selling based a essence, off in evaluation of where enable inventory XXXX business. which aggressively. XXXX, before is, healthcare the the And from And is margin in take some writing

So, in well through as the does different the our digital with with clearing both customers. channel markdowns our as and help channels, help through essence, it wholesale

BJ Cook

you to and optimistic XXXX guidance Good broke out see revenue.

this guidance to see From shake kind out has now. some perspective, year? environment a in given the past? in Just similar going dynamic kind is the everybody's profit going now, we're in curious, it the of to to of Or we're

Mike Koempel

little breaking guys a asking by profit you're up segment? think about I'm But bit. I sorry, you're

BJ Cook

right. that's Yeah,

Mike Koempel

segment, consolidated given, write significant in that that improvement, healthcare what took about repeat as offs I an the experienced in care of our Well, we if down taken segment, would would pretty $XX improvement, and XXXX the XXXX. within Sure. additional that anticipate guidance, apparel an over guidance certainly is, combined assumes which million from not XXXX, just is obviously, with the in again, healthcare to again, perspective, just context a we results in basis, charges you earnings apparel alone, we've say and on as, trending we've the significant health

on as the segments, anticipate approximately be it EBITDA And past, other contact profitable margin, grow, with we the our it as Michael XX%. business in that will has from touched continue center to

forward a to we product margin. year. the hold strong expect going moves segment EBITDA So it its branded through still our would And margin as

Operator

come ahead. The will from Steinke Please go Barrington next Research. question Kevin with

Kevin Steinke

As ups. I of said, follow a couple

and that's sales accelerated force actually ahead the mentioned in BAMKO hiring You targets. your tracking of

ramp in that use and sales potentially you contributing contributing and could discussed. you half a the second how the factor I and to be people start in that share up growth can Just quickly taking guess

Michael Benstock

Good come of of business, of to come salespeople or at the from industry, book that of most us business their salespeople. question. and recruit with commissioned a mostly are we book Most least the

them to cost them. our have So, bring on, we onboard to

low-cost we them employer India from hadn't at Of is and support usually. office in previous support some our their give at very primarily, support, all a they course, which that had

we in transfers of us. book entire generally, their business XX to And months about over get

of of on us people are come vary $X much writing it's an on annualized Kevin. that business salesperson, by months, with escalating within So, does million I to book an it basis, a and couple business. immediately but basis some we mean

that to least expectation months us brought start tracking come book it And we our of that people at in to over. all us some takes million of and is months $X six half XX with business

mean, ultimate grow employer. have themselves they work why significantly because think come business can with proven the people their their we that, current and of aligning is -- they can than they can by actually reason us, they I book at us for to more these

$X of business we $X a we of to XX-month and getting us what them time. might towards million an of XX So, are somebody working with is, book are within come hoping business to who million book to period what

Kevin Steinke

just All helpful. about launch for Can of quickly the you quarter can That's targeted right. that, could then you Healthcare how kind lastly, and for expectations assuming that website a second the -- are the And talk that direct-to-consumer bit more little ramp? strategy Apparel. within

Michael Benstock

be It's ramp. going slow to very a

a incentivize gain tweak on at on. site site a lot and from who's of products so buying up will that knowledge to You and and we that clicking, to we go for we and sign the out first, analytics who's how side people have the from get it's

slow So, it's a ramp.

year, is want loyalty, not already we XXXX. so that where are our bring associates of year projecting product in among much believe all do We of building way in caregiver for we to build see this those our our awareness can who are our some revenue to sales. their just other onto What in will XXXX that awareness to higher But is to friends build site the is the meaningful loyal impact in really level we a we escalate to XXXX and the first growth. product and a

Kevin Steinke

insight. I That's Okay. you. That's helpful appreciate Thank it. I had. all

Operator

like our turn I question-and-answer Michael over sir. to concludes back closing would session. the any go This ahead, conference Benstock for remarks. to Mr. Please

Michael Benstock

it. you all we I directions, asking Thank questions. the all certainly here us. for to Good want and appreciate feel different you for to questions a from joining great all thank have beyond

I to like the demand, and with tremendously announced extend heading expansion, retirement someone over and the the note call, to since has as change, a before of period And as and years gratitude he a contributed who's recently through productive is But valuable into Very been XX. tremendously end CFO a here last to we a long after year I joining XXXX, unprecedented partner. of more diversification our in was our business SGC us period CEO, STC of time. special

of with pleasure the work from Kirschner. of we'll that passing he's means last his also of AMD. month It's this our benefit been a which And Chairman to to announced board, valuable incredibly we experience and our board pleased continuing the true Sidney perspective. continue Sadly, on to directors, serve we're

As his Chairman for part of our first than distinguished the XX career. XX. more past joined Sid served as ago, and years board

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Operator

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

now disconnect. You may

Superior Group of Companies (SGC) 15 Mar 232022 Q4 Earnings call transcript