v3.25.1
Note 2 - Operating Segment Information
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 2 – Operating Segment Information:

 

The Company manages and reports the following segments:

 

Branded Products segment: Primarily through our signature marketing brands BAMKO® and HPI®, we produce and sell customized merchandising solutions, promotional products and branded uniform programs. Branded products are sold to customers in a wide range of industries, including retail chain, food service, entertainment, technology, transportation and other industries. The segment currently has sales offices in the United States and Brazil, with support services in China and India.

 

Healthcare Apparel segment: Primarily through our signature marketing brands Fashion Seal Healthcare®, Wink® and CID Resources, we manufacture (through third parties or in our own facilities) and sell a wide range of healthcare apparel, such as scrubs, lab coats, protective apparel and patient apparel. This segment sells its products to healthcare laundries, dealers, distributors and retailers primarily in the United States.

 

Contact Centers: Through multiple The Office Gurus® entities, including our subsidiaries in El Salvador, Belize, Jamaica, Dominican Republic and the United States (collectively, “TOG”), we provide outsourced, nearshore business process outsourcing, contact and call-center support services to North American customers.

 

Intersegment eliminations include the elimination of revenues and costs from services provided by the Contact Centers segment to the Company’s two other segments. Such costs are recognized as selling and administrative expenses in the Branded Products and Healthcare Apparel segments. Income and expenses related to corporate functions that are not specifically attributable to an individual reportable segment are presented within Other in the table below.

 

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

 

The following tables set forth financial information related to the Company’s operating segments (in thousands):

 

  

Branded Products

  

Healthcare Apparel

  

Contact Centers

  

Intersegment Eliminations

  

Other

  

Total

 

For the Three Months Ended March 31, 2025:

                        

Net sales

 $86,474  $27,263  $24,225  $(865) $-  $137,097 

Cost of goods sold

  58,787   17,130   11,244   (505)  -   86,656 

Gross margin

  27,687   10,133   12,981   (360)  -   50,441 

Selling and administrative expenses

  23,420   9,526   10,921   (360)  6,595   50,102 

Depreciation and amortization

  1,480   912   722   -   90   3,204 

Segment EBITDA(1)

 $5,747  $1,519  $2,782  $-  $(6,505) $3,543 
                         
  

Branded Products

  

Healthcare Apparel

  

Contact Centers

  

Intersegment Eliminations

  

Other

  

Total

 

For the Three Months Ended March 31, 2024:

                        

Net sales

 $87,068  $29,237  $23,552  $(1,015) $-  $138,842 

Cost of goods sold

  55,327   17,727   10,908   (437)  -   83,525 

Gross margin

  31,741   11,510   12,644   (578)  -   55,317 

Selling and administrative expenses

  23,294   9,812   10,421   (578)  5,989   48,938 

Depreciation and amortization

  1,500   937   723   -   92   3,252 

Segment EBITDA(1)

 $9,947  $2,635  $2,946  $-  $(5,897) $9,631 

 

The following table reconciles (loss) income before income tax (benefit) expense to Segment EBITDA (in thousands):

 

  

Three Months Ended March 31,

 
  

2025

  

2024

 

(Loss) income before income tax (benefit) expense

 $(906) $4,592 

Interest expense, net

  1,245   1,787 

Depreciation and amortization

  3,204   3,252 

Segment EBITDA

 $3,543  $9,631