Q - SUPERIOR GROUP OF COMPANIES,
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
SGC$13.44+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001437749-25-015554
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001437749-25-024897
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 76 previous paragraphs and 104 current paragraphs.
43 unchanged; 24 reworded; 32 added; 9 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 2 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
Net Income
Current report
Branded Products net sales increased 14.0%, or $11.4 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was attributable to $8.0 million in timing of orders delivered, $3.8 million of organic expansion with existing large enterprise accounts including higher tariffs and $3.1 million increase resulting from revenue generated by 3 Point following the acquisition in December 2024.
Current report
Contact Centers net sales decreased 3.4% or $0.9 million, before intersegment eliminations for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The 3.4% decline versus the year-ago quarter reflects continued macroeconomic headwinds, which continue to contribute to client downsizing and client attrition outpacing new customer acquisitions.
Current report
Gross margin rate for the Company was 38.4% for the three months ended June 30, 2025 and 38.5% for the three months ended June 30, 2024.
Current report
Gross margin rate for our Branded Products segment was 35.6% for the three months ended June 30, 2025 and 34.6% for the three months ended June 30, 2024. The increase in the gross margin rate was attributable to customer sales mix for the three months ended June 30, 2025.
Current report
Gross margin rate for our Healthcare Apparel segment was 35.5% for the three months ended June 30, 2025 and 38.4% for the three months ended June 30, 2024. The gross margin rate decreased as compared to the prior year period due to higher cost of goods including the recently enacted higher tariff costs in advance of price increases to our customers.
Current report
Gross margin rate for our Contact Centers segment was 52.6% for the three months ended June 30, 2025, up slightly from 52.2% for the three months ended June 30, 2024.
Current report
As a percentage of net sales, selling and administrative expenses for our Branded Products segment was 27.5% for the three months ended June 30, 2025 and 28.3% for the three months ended June 30, 2024. The rate decrease was primarily related to net sales increases for the three months ended June 30, 2025. The increase in selling and administrative expenses of $2.5 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was due to $1.6 million higher employee related costs driven by increased sales and gross margin, an adjustment to credit loss reserves of $0.5 million and increased costs resulting from the acquisition of 3Point in December 2024.
Current report
As a percentage of net sales, selling and administrative expenses for our Contact Centers segment was 48.4% for the three months ended June 30, 2025 and 42.4% for the three months ended June 30, 2024. The rate increase as compared to the prior year period was primarily driven by an increase in credit loss expense.
Current report
Selling and administrative expenses for Other, which represents Corporate costs, decreased primarily due to lower supplemental executive retirement plan expenses.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Net Income
Current report
The Company generated net income of $0.8 million and $4.5 million during the six months ended June 30, 2025 and 2024, respectively. The decrease in net income during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to higher selling and administrative expenses at our Branded Products and Contact Centers segments and lower margins in our Healthcare Apparel segment, partially offset by an increase in gross margin at our Branded Products segment and a decrease in interest expense.
Current report
EBITDA
Current report
EBITDA was $9.6 million and $15.2 million during the six months ended June 30, 2025 and 2024, respectively. The EBITDA decrease was primarily due to higher selling and administrative expenses at our Branded Products and Contact Centers segments and lower margins at our Healthcare Apparel segment, partially offset by an increase in gross margin at our Branded Products segment. For a reconciliation of EBITDA to net income, its most directly comparable financial measure calculated and presented in accordance with GAAP, please read “Non-GAAP Financial Measure” below.
Current report
Net Sales
Current report
Net sales for the Company increased 3.9% or $10.6 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was attributable to an increase in net sales in our Branded Products reportable segment.
Current report
Branded Products net sales increased 6.4%, or $10.8 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was attributable to $8.0 million in timing of orders delivered, $7.8 million of organic expansion with existing large enterprise accounts including higher tariffs and $6.2 million increase resulting from revenue generated by 3 Point following the acquisition in December 2024. These were partially offset by volume decreases in branded uniform apparel from existing customers.
Current report
Contact Centers net sales decreased 0.4% or $0.2 million, before intersegment eliminations for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The 0.4% decline versus the year-ago period reflects continued macroeconomic headwinds, which continue to contribute to client downsizing and client attrition outpacing new customer acquisitions.
Current report
Gross Margin
Current report
Gross margin rate for our Healthcare Apparel segment was 36.3% for the six months ended June 30, 2025 and 38.9% for the six months ended June 30, 2024. The gross margin rate decreased as compared to the prior year period primarily driven by higher cost of goods including the recently enacted higher tariff costs in advance of price increases to our customers.
Current report
Gross margin rate for our Contact Centers segment was 53.1% for the six months ended June 30, 2025, up slightly from 52.9% for the six months ended June 30, 2024.
Current report
Selling and Administrative Expenses
Current report
As a percentage of net sales, total selling and administrative expenses was 36.4% for the six months ended June 30, 2025 and 36.0% for the six months ended June 30, 2024.
Current report
As a percentage of net sales, selling and administrative expenses for our Branded Products segment was relatively flat at 27.3% for the six months ended June 30, 2025 and 27.5% for the six months ended June 30, 2024. The increase in selling and administrative expenses of $2.6 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was due to $1.9 million higher employee related costs, driven by increased sales and gross margin, an adjustment to credit loss reserves of $0.5 million and increased costs from 3Point acquired in December 2024.
Current report
As a percentage of net sales, selling and administrative expenses for our Healthcare Apparel segment was 35.3% for the six months ended June 30, 2025 and 35.3% for the six months ended June 30, 2024.
Current report
As a percentage of net sales, selling and administrative expenses for our Contact Centers segment was 46.7% for the six months ended June 30, 2025 and 43.3% for the six months ended June 30, 2024. The rate increase as compared to the prior year period was primarily driven by an increase in credit loss expense.
Current report
Interest Expense, Net
Current report
Income Taxes
Current report
Capital expenditures were $2.7 million and $2.0 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
For the six months ended June 30, 2025, net cash provided by operating activities was $2.9 million. Cash collections from customers exceeded aggregate cash payments to vendors, lessors, employees and lenders. These cash payments included $10.7 million of cash outflows for inventory purchases, up from the prior year primarily due to the timing of purchases.
Current report
On June 19, 2025, the “Company entered into a 10b5-1 trading plan (the “Plan”) for the purpose of repurchasing up to a specified number of shares of the Company’s outstanding common stock (the “Repurchase Limit”) in accordance with the $17.5 million share repurchase program previously authorized by the Company’s Board of Directors, which was announced by the Company on March 11, 2025. The Plan is intended to comply with Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. The Plan allows the Company to repurchase shares up to the Repurchase Limit commencing June 20, 2025 and ending on the earlier of the date on which the Repurchase Limit is reached or other events specified in the Plan. Repurchases of common stock under the Plan will be administered through an independent broker and are subject to certain price, market, volume and timing constraints specified in the Plan.
Removed paragraphs (9)
Previous report
Net (Loss) Income
Previous report
Contact Centers net sales increased 2.9% or $0.7 million, before intersegment eliminations for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily attributable to a mix of sales growth from new and existing customers.
Previous report
Gross margin rate for our Healthcare Apparel segment was 37.2% for the three months ended March 31, 2025 and 39.4% for the three months ended March 31, 2024. The gross margin rate decreased as compared to the prior year period primarily due to higher costs of goods during the current period.
Previous report
Gross margin rate for our Contact Centers segment was 53.6% for the three months ended March 31, 2025 and 53.7% for the three months ended March 31, 2024.
Previous report
As a percentage of net sales, selling and administrative expenses for our Branded Products segment was 27.1% for the three months ended March 31, 2025 and 26.8% for the three months ended March 31, 2024. The rate increase was primarily related to lower net sales in the current period.
Previous report
As a percentage of net sales, selling and administrative expenses for our Contact Centers segment was 45.1% for the three months ended March 31, 2025 and 44.2% for the three months ended March 31, 2024. The rate increased as compared to the prior year period driven by an increase in third party professional service fees in the current period.
Previous report
Capital expenditures were $1.1 million and $0.7 million for the three months ended March 31, 2025 and 2024, respectively.
Previous report
For the three months ended March 31, 2025, net cash used in operating activities was $2.0 million. Lower net sales and cash collections, as well as higher costs of goods sold resulted in net cash used in operating activities. In addition, inventory increased resulting in a use of cash of $2.2 million.
Previous report
On March 7, 2025, the Board of Directors approved a new stock repurchase plan which authorizes the Company to repurchase up to an additional $17.5 million worth of its common stock. This plan became effective during the three months ended March 31, 2025 upon the completion of the previous plan approved by the Board of Directors on August 12, 2024, which had authorized the repurchase of up to $10 million of stock.
Reworded paragraphs (24)
Previous wording
In our Contact Centers segment (also known as “The Office Gurus”), which operates in El Salvador, Belize, Jamaica, Dominican Republic, and the United States, we provide outsourced, nearshore business process outsourcing, contact and call-center support services to North American customers. These services are also provided internally to the Company’s other two operating segments. The Office Gurus has become an award-winning business process outsourcer offering inbound and outbound voice, email, text, chat and social media support. The nearshore call-center market has grown as businesses look to reduce operating costs while maintaining high-quality customer support. Nearshore operators are able to provide comparable service to their U.S. counterparts at a fraction of the price. With an environment and career path designed to attract and maintain top talent across all sites, we believe The Office Gurus is positioned well to continue growing this business.
Current wording
In our Contact Centers segment (also known as “The Office Gurus”), which operates in El Salvador, Belize, Dominican Republic, the United States and Jamaica until its closure on June 15, 2025, we provide outsourced, nearshore business process outsourcing, contact and call-center support services to North American customers. These services are also provided internally to the Company’s other two operating segments. The Office Gurus has become an award-winning business process outsourcer offering inbound and outbound voice, email, text, chat and social media support. The nearshore call-center market has grown as businesses look to reduce operating costs while maintaining high-quality customer support. Nearshore operators are able to provide comparable service to their U.S. counterparts at a fraction of the price. With an environment and career path designed to attract and maintain top talent across all sites, we believe The Office Gurus is positioned well to continue growing this business.
Previous wording
During 2025, tariffs impacting certain sources of the Company’s materials and production were enacted by the U.S. government, including, a higher tariff on finished products from China. We are monitoring these enacted tariffs and the ongoing negotiations between the U.S. government and the countries in which we manufacture. See Item 1, “NOTE 6 –* Contingencies and Geographic Supply Concentrations*,” and "Item 1A — Risk Factors —Recently enacted tariffs may have a material adverse impact on our business."
Current wording
During 2025, higher tariffs and/or new tariffs impacting certain sources of the Company’s materials and production were imposed by the U.S. government. Additionally, the U.S. has trade agreements and/or preferences with certain countries in Africa, through the African Growth and Opportunity Act ("AGOA"), and with Haiti, through the Haitian Hemispheric Opportunity through Partnership Encouragement Act ("HOPE") and the Haiti Economic Lift Program of 2010 ("HELP"), all of which are set to expire on September 30, 2025, if not renewed or extended. We are monitoring these imposed tariffs, related ongoing negotiations and the status of the trade agreements and preferences involving the U.S. government and the countries in which we source and/or manufacture products. See Item 1, “NOTE 6 –* Contingencies and Geographic Supply Concentrations*,” and "Item 1A — Risk Factors —Recently imposed tariffs may have a material adverse impact on our business."
Previous wording
With the enactment of the tariffs and escalating diplomatic tension between the United States and China it is uncertain how inflation and interest rates will be impacted during 2025. World events, including the Russia-Ukraine War and the ongoing conflict in the Middle East continue to have negative effects on the global economy. Civil unrest in countries where we manufacture products, such as Haiti, may result in our facilities incurring damage or destruction that interrupts our manufacturing processes and adversely affects our reputation and our relationships with our customers.
Current wording
It is uncertain how inflation and interest rates will be impacted during the remainder of 2025 by the imposition of tariffs and other trade-related actions or inactions. World events, including the Russia-Ukraine War and the ongoing conflict in the Middle East continue to have negative effects on the global economy. Civil unrest in countries where we manufacture products, such as Haiti, may result in our facilities incurring damage or destruction that interrupts our manufacturing processes and adversely affects our reputation and our relationships with our customers.
Previous wording
Prolonged or recurring disruptions or instability in the United States and global economies, and how the world reacts to those disruptions or instability, could have long-term impacts on our business. These business impacts could negatively affect us in a number of ways, including, but not limited to, reduced demand for our core products and services, declines in to our revenue and profitability, costs associated with complying with new or amended laws and regulations and mitigating the increased cost of the new tariffs affecting our business, declines in our stock price, reduced availability and less favorable terms of future borrowings, negative impacts on the valuation of our pension obligations, reduced credit-worthiness of our customers, and potential impairment of the carrying value of indefinite-lived intangible assets.
Current wording
Prolonged or recurring disruptions or instability in the United States and global economies, and how the world reacts to those disruptions or instability, could have long-term impacts on our business. These business impacts could negatively affect us in a number of ways, including, but not limited to, reduced demand for our core products and services, declines in our revenue and profitability, costs associated with complying with new or amended laws and regulations and mitigating the increased cost of the new tariffs affecting our business, declines in our stock price, reduced availability and less favorable terms of future borrowings, negative impacts on the valuation of our pension obligations, reduced credit-worthiness of our customers, and potential impairment of the carrying value of indefinite-lived intangible assets.
Previous wording
The Company generated a net loss of ($0.8) million and income of $3.9 million during the three months ended March 31, 2025 and 2024, respectively. The decrease in net income during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to a decrease in net sales and gross margins at our Branded Products and Healthcare Apparel segments, partially offset by a decrease in interest expense.
Current wording
The Company generated net income of $1.6 million and $0.6 million during the three months ended June 30, 2025 and 2024, respectively. The increase in net income during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to an increase in net sales and gross margins at our Branded Products segment.
Previous wording
EBITDA was $3.5 million and $9.6 million during the three months ended March 31, 2025 and 2024, respectively. The EBITDA decrease was primarily due to the net loss incurred and the decrease in net sales and gross margins at our Branded Products and Healthcare Apparel segments during the three months ended March 31, 2025. For a reconciliation of EBITDA to net income, its most directly comparable financial measure calculated and presented in accordance with GAAP, please read “Non-GAAP Financial Measure” below.
Current wording
EBITDA was $6.1 million and $5.6 million during the three months ended June 30, 2025 and 2024, respectively. The EBITDA increase was primarily due to the increase in net sales and gross margins at our Branded Products segment during the three months ended June 30, 2025. For a reconciliation of EBITDA to net income, its most directly comparable financial measure calculated and presented in accordance with GAAP, please read “Non-GAAP Financial Measure” below.
Previous wording
Net sales for the Company decreased 1.3%, or $1.7 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was attributable to a decline in net sales in our Branded Products and Healthcare Apparel reportable segments.
Current wording
Net sales for the Company increased 9.3%, or $12.3 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was attributable to increases in net sales in our Branded Products and Healthcare Apparel reportable segments.
Previous wording
Branded Products net sales decreased 0.7%, or $0.6 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily due to volume decreases in branded uniform apparel within existing customer accounts.
Current wording
Healthcare Apparel net sales increased 6.2%, or $1.7 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily due to volume increases within existing customer accounts.
Previous wording
As a percentage of net sales, total selling and administrative expenses was 36.5% for the three months ended March 31, 2025 and 35.2% for the three months ended March 31, 2024. The rate increase was primarily driven by increases in employee related costs, third-party professional services and expenditures related to marketing and advertising activities.
Current wording
As a percentage of net sales, total selling and administrative expenses was 36.3% for the three months ended June 30, 2025 and 36.9% for the three months ended June 30, 2024.
Previous wording
As a percentage of net sales, selling and administrative expenses for our Healthcare Apparel segment was 34.9% for the three months ended March 31, 2025 and 33.6% for the three months ended March 31, 2024. The rate increase was primarily related to lower net sales in the current period
Current wording
As a percentage of net sales, selling and administrative expenses for our Healthcare Apparel segment was 35.7% for the three months ended June 30, 2025 and 37.2% for the three months ended June 30, 2024. The rate decrease was primarily related to higher sales in the period ended June 30, 2025.
Previous wording
Interest expense, net decreased to $1.2 million for the three months ended March 31, 2025 from $1.8 million for three months ended March 31, 2024. This decrease was due to a lower weighted average interest rate on those borrowings from 6.6% for the three months ended March 31, 2024 to 5.4% for the three months ended March 31, 2025.
Current wording
Interest expense, net decreased to $1.3 million for the three months ended June 30, 2025 from $1.5 million for three months ended June 30, 2024. This decrease was due to a lower weighted average interest rate on those borrowings from 6.5% for the three months ended June 30, 2024 to 5.6% for the three months ended June 30, 2025.
Previous wording
Income tax expense decreased to a benefit of $0.1 million for the three months ended March 31, 2025 from expense of $0.7 million for the three months ended March 31, 2024. The effective tax rate was 16.3% and 14.8% for the three months ended March 31, 2025 and 2024, respectively. Income tax benefit, expense and the effective tax rate for the three months ended March 31, 2025 and March 31, 2024 was primarily impacted by the variability in the mix of earnings across the Company’s foreign and domestic operations, subject to various statutory tax rates in those jurisdictions. The effective tax rate may vary from quarter to quarter due to discrete, unusual or non-recurring items, the resolution of income tax audits, changes in tax laws, the tax impact from employee share-based payments, or other items.
Current wording
Income tax expense increased to $0.3 million for the three months ended June 30, 2025 from $0.1 million for the three months ended June 30, 2024. The effective tax rate was 15.5% and 7.7% for the three months ended June 30, 2025 and 2024, respectively. Income tax expense and the effective tax rate for the three months ended June 30, 2025 and June 30, 2024 were primarily impacted by the variability in the mix of earnings across the Company’s foreign and domestic operations, subject to various statutory tax rates in those jurisdictions.
Previous wording
Healthcare Apparel net sales decreased 6.8%, or $2.0 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily due to volume decreases in institutional apparel within existing customer accounts.
Current wording
Healthcare Apparel net sales decreased 0.6% or $0.3 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease was primarily due to volume decreases in institutional apparel within existing customer accounts.
Previous wording
Gross margin rate for the Company was 36.8% for the three months ended March 31, 2025 and 39.8% for the three months ended March 31, 2024. The gross margin rate decrease was primarily driven by decreases in our Branded Products and Healthcare Apparel reportable segments.
Current wording
Gross margin rate for the Company was 37.6% for the six months ended June 30, 2025 and 39.2% for the six months ended June 30, 2024. The gross margin rate decrease was primarily driven by our Healthcare Apparel and Branded Products reportable segments.
Previous wording
Gross margin rate for our Branded Products segment was 32.0% for the three months ended March 31, 2025 and 36.5% for the three months ended March 31, 2024. The gross margin rate decreased as compared to the prior year period was primarily driven by sourcing mix resulting in higher product costs and lower pricing to existing customers.
Current wording
Gross margin rate for our Branded Products segment was 33.9% for the six months ended June 30, 2025 and 35.6% for the six months ended June 30, 2024. The gross margin rate decreased as compared to the prior year period due to sourcing mix resulting in higher product costs and lower pricing to existing customers.
Previous wording
Selling and administrative expenses for Other, which represents unallocated Corporate costs, increased by $0.6 million, primarily driven by an increase in employee related costs and third party professional services.
Current wording
Selling and administrative expenses for Other, which represents Corporate costs, increased by $0.3 million, primarily driven by third party professional fees and stock-based compensation expense during the six months ended June 30, 2025.
Previous wording
Net cash provided by operating activities primarily results from cash collected from customers for our promotional products, branded uniforms, healthcare apparel and accessories, offset by cash payments made for raw materials, salaries and payroll related benefits, leases and other general corporate expenditures.
Current wording
Net cash provided by operating activities primarily results from cash collected from customers for our promotional products, branded uniforms, healthcare apparel and contact centers, offset by cash payments made for raw materials, finished goods, salaries and payroll related benefits, leases and other general corporate expenditures.
Previous wording
For the three months ended March 31, 2024, net cash provided by operating activities was $9.4 million. Cash collections from customers exceeded aggregate cash payments to vendors, lessors, employees and lenders primarily driven by the Company’s collection of receivable balances and increases in cash inflows for inventory.
Current wording
For the six months ended June 30, 2024, net cash provided by operating activities was $16.3 million. Cash collections from customers exceeded aggregate cash payments to vendors, lessors, employees and lenders primarily driven by the Company’s collection of receivable balances and increases in cash inflows for inventory.
Previous wording
For the three months ended March 31, 2025, the Company had $19.0 million in borrowings and $8.0 million in payments on the revolving credit facility. For the three months ended March 31, 2025, the Company had $1.4 million in payments on the term loan.
Current wording
For the six months ended June 30, 2025, the Company had $57.0 million in borrowings and $41.0 million in payments on the revolving credit facility. For the six months ended June 30, 2025, the Company had $2.8 million in payments on the term loan.
Previous wording
For the three months ended March 31, 2024, the Company had $7.0 million in borrowings and $10.0 million in payments on the revolving credit facility. For the three months ended March 31, 2024, the Company had $0.9 million in payments on the term loan.
Current wording
For the six months ended June 30, 2024, the Company had $10.0 million in borrowings and $24.0 million in payments on the revolving credit facility. For the six months ended June 30, 2024, the Company had $1.9 million in payments on the term loan.
Previous wording
During the three months ended March 31, 2025 and 2024, the Company paid cash dividends of $2.3 million and $2.3 million, respectively. The Company anticipates that it will continue to pay dividends in the future as financial conditions permit.
Current wording
During the six months ended June 30, 2025 and 2024, the Company paid cash dividends of $4.5 million and $4.7 million, respectively. The Company anticipates that it will continue to pay dividends in the future as financial conditions permit.
Previous wording
EBITDA is not a measure of financial performance under GAAP. EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA are significant components in understanding and assessing the Company’s results of operations. The presentation of the Company’s EBITDA may change from time to time, including as a result of changed business conditions, new accounting pronouncements or otherwise. If the presentation changes, the Company undertakes to disclose any change between periods and the reasons underlying that change. The Company’s EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner.
Current wording
EBITDA is not a measure of financial performance under GAAP. EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA are significant components in understanding and assessing the Company’s results of operations. The Company’s EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner.
Previous wording
The following table reconciles net (loss) income to EBITDA (in thousands):
Current wording
The following table reconciles net income to EBITDA (in thousands):
Previous wording
Such forward-looking statements are subject to certain risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the following: the impact of competition; uncertainties related to a potential trade war, supply disruptions, inflationary environments (including with respect to shipping costs and the cost of finished goods and raw materials and shipping costs), employment levels (including labor shortages), and general economic and political conditions in the areas of the world in which the Company operates or from which it sources its supplies or the areas of the United States of America (“U.S.”* or*“United States”) in which the Company’s customers are located; changes in the healthcare, retail chain, food service, transportation and other industries where uniforms and service apparel are worn; our ability to identify suitable acquisition targets, discover liabilities associated with such businesses during the diligence process, successfully integrate any acquired businesses, or successfully manage our expanding operations; the price and availability of raw materials; attracting and retaining senior management and key personnel;the Company’*s ability*to maintain effective internal control over financial reporting;and other factors described in the Company’s filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section herein and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2025*. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this Form 10-Q and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.*
Current wording
Such forward-looking statements are subject to certain risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the following: the impact of competition; uncertainties related to tariffs, duties,**trade wars and related matters, supply disruptions, inflationary environments (including with respect to shipping costs and the cost of finished goods and raw materials and shipping costs), employment levels (including labor shortages), and general economic and political conditions in the areas of the world in which the Company operates or from which it sources its supplies or the areas of the United States of America (“U.S.”* or*“United States”) in which the Company’s customers are located; changes in the healthcare, retail chain, food service, transportation and other industries where uniforms and service apparel are worn; our ability to identify suitable acquisition targets, discover liabilities associated with such businesses during the diligence process, successfully integrate any acquired businesses, or successfully manage our expanding operations; the price and availability of raw materials; attracting and retaining senior management and key personnel;the Company’*s ability*to maintain effective internal control over financial reporting;and other factors described in the Company’s filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section herein and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025*. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this Form 10-Q and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.*
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The effective tax rate may vary from quarter to quarter due to discrete, unusual or non-recurring items, the resolution of income tax audits, changes in tax laws, the tax impact from employee share-based payments, or other items.
Current report — wording carried from elsewhere
(1) Please refer to "Non-GAAP Financial Measure" below for a reconciliation of EBITDA to net (loss) income.
Current report — wording carried from elsewhere
Interest expense, net decreased to $2.5 million for the six months ended June 30, 2025 from $3.3 million for six months ended June 30, 2024. This decrease was due to a lower weighted average interest rate on those borrowings from 6.6% for the six months ended June 30, 2024 to 5.6% for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Income tax expense decreased to $0.1 million for the six months ended June 30, 2025 from $0.7 million for the six months ended June 30, 2024. The effective tax rate was 14.7% and 13.9% for the six months ended June 30, 2025 and 2024, respectively. Income tax expense and the effective tax rate for the six months ended June 30, 2025 and June 30, 2024 were primarily impacted by the variability in the mix of earnings across the Company’s foreign and domestic operations, subject to various statutory tax rates in those jurisdictions. The tax rates were further favorably impacted by the performance of the Company’s compensation plans during the six months ended June 30, 2025 and June 30, 2024.
Current report — wording carried from elsewhere
The effective tax rate may vary from quarter to quarter due to discrete, unusual or non-recurring items, the resolution of income tax audits, changes in tax laws, the tax impact from employee share-based payments, or other items.