Superior Uniform Group Inc. (NASDAQ:SGC) Q3 2018 Earnings Conference Call Transcript

Oct 25, 2018 • 02:00 pm ET


Superior Uniform Group Inc. (NASDAQ:SGC) Q3 2018 Earnings Conference Call Transcript


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Good afternoon, everyone. Welcome to Superior Group of Companies 2018 Third Quarter Earnings Conference Call. With us today are Michael Benstock, the Company's CEO; Andy Demott, its COO; and Mike Attinella, CFO and Treasurer. After the speakers' opening remarks, there will be a Q&A session. This call is being recorded and your participation implies that you agree to this. If you don't, then simply drop off the line.

Now I will turn the call over to Hala Elsherbini, SVP of Halliburton IR, who will read the Safe Harbor statement. Please go ahead.

Hala Elsherbini

Thank you. (Forward-Looking Cautionary Statements) With that, I'll turn the call over to Michael.

Michael Benstock

Thank you, Hala, and good afternoon everyone. Welcome to our Q3 2018 earnings call. I would like to extend a warm welcome to Mike Attinella, our new CFO and Treasurer. He joined us in August and brings a strong complement of financial, governance and operational experience to our team. As Mike takes the CFO reins, Andy continues his stewardship as our COO and can now fully focus on our domestic and global operations and strategic growth. Our call format will slightly change, as I'll focus my remarks on our performance, strategic direction of market dynamics, with Andy providing more detail on our operational segments and integration progress, followed by Mike's financial highlights.

Superior Group of Companies' third quarter results delivered on revenue and earnings, but we still have work to do to bolster organic growth and manage margins in both our Uniform and Promotional Products segments. The Office Gurus continues to produce successful results and is on track to exceed sales expectations for the year. As noted last quarter, our pipeline continues to be productive with wins and other opportunities moving forward. We've strengthened our sales organization, particularly adding very seasoned, heavy hitters to our BAMKO and Tangerine teams. We are very excited to see them already executing on plan. I don't want to steal any of Andy's thunder, but we've already -- we're already seeing their success, as BAMKO closed on their largest booking quarter ever. Andy will provide more detail on that and on our other sales initiative shortly.

As we have outlined in the past, our strategic growth is rooted(ph)in capitalizing on our diversified business model, that leverages our three collaborative businesses, where we optimize operational efficiencies through a very robust shared services model. When we take a good look in the rear view mirror of what might have been, we realize that we could have executed on the power of our scale(ph)sooner to capture synergies and efficiencies across our platform. Andy will discuss our plans further in his remarks, but I will emphasize, that we are now firmly on an accelerated pace to fully integrate HPI on our employee ID business, as well as the recent Tangerine and CID Resources acquisitions.

Before turning the call over to Andy, I'd like to address the effect on Superior of the US tariffs on Chinese imports. Currently, our exposure to the imposed tariffs is