Superior Group of Companies Inc (SGC) 2025 Q2 法說會逐字稿

Good afternoon, and welcome to the Superior Group of Companies second quarter 2025 conference call. With us today are Michael Benstock, Chief Executive Officer; and Mike Koempel, Chief Financial Officer. As a reminder, this conference call is being recorded.

下午好，歡迎參加 Superior 集團公司 2025 年第二季電話會議。今天與我們在一起的有執行長 Michael Benstock 和財務長 Mike Koempel。提醒一下，本次電話會議正在錄音。

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 profitability. Such statements are based upon management's current expectations, projections, estimates and assumptions.

本次電話會議可能包含有關公司計劃、舉措和策略以及公司預期財務業績的前瞻性陳述，包括但不限於銷售額和盈利能力。這些聲明是基於管理層目前的預期、預測、估計和假設。

Words such as expect, believe, anticipate, think, outlook, hope and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements.

預期、相信、預期、認為、展望、希望等詞語以及此類詞語的變體和類似表達均可以識別此類前瞻性陳述。前瞻性陳述涉及已知和未知的風險和不確定性，可能導致未來結果與前瞻性陳述所暗示的結果有重大差異。

Such risks and uncertainties are further disclosed in the company's periodic filings with the Securities and Exchange Commission, including, but not limited to the company's most recent annual report on Form 10-K and the quarterly reports on Form 10-Q.

此類風險和不確定性在公司向美國證券交易委員會提交的定期文件中進一步披露，包括但不限於公司最近的 10-K 表年度報告和 10-Q 表季度報告。

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 company does not undertake to update the forward-looking statements, except required by law.

敦促股東、潛在投資者和其他讀者在評估本文所作的前瞻性陳述時仔細考慮這些因素，並注意不要過度依賴此類前瞻性陳述。除法律要求外，本公司不承擔更新前瞻性陳述的責任。

And now I'll turn the call over to Michael Benstock. Please go ahead.

現在我將把電話轉給邁克爾·本斯托克。請繼續。

Thank you, operator. We appreciate everyone joining us today. I'll start with an overview of current market conditions, and then I'll review our consolidated financial highlights for the quarter, along with a discussion around our three business segments. I'll then hand it over to Mike to take us through a more detailed review of our financial results. After that, Mike and Jake Himelstein, President of our Branded Products business, and I will be happy to take your questions.

謝謝您，接線生。我們感謝今天與我們一起的各位。我將首先概述當前的市場狀況，然後回顧本季的合併財務亮點，並討論我們的三個業務部門。然後我會把它交給麥克，帶領我們更詳細地審查我們的財務結果。之後，我和 Mike、我們的品牌產品業務總裁 Jake Himelstein 將很樂意回答您的問題。

We've seen modest improvement in the economic-related customer hesitancy that I spoke about on our last call. While many customers still await better certainty around inflation, interest rates and tariffs, our Branded Products segment, in particular, has successfully managed the economic ambiguity by taking market share, negotiating cost relief with vendors and leveraging a diverse supply base in order to provide our customers and prospects with a compelling value.

我們看到，我在上次電話會議上提到的與經濟相關的客戶猶豫情緒有所改善。雖然許多客戶仍在等待通貨膨脹、利率和關稅方面更加確定的消息，但我們的品牌產品部門卻成功應對了經濟不確定性，透過佔領市場份額、與供應商協商降低成本以及利用多樣化的供應基礎，為我們的客戶和潛在客戶提供了極具吸引力的價值。

However, the administration's policies can occasionally be to the detriment of a particular segment of the economy, an example being one of our larger call center customers in the solar business that filed Chapter 11 during the second quarter.

然而，政府的政策有時會損害經濟的某個特定部分，例如，我們太陽能業務中的一個較大的呼叫中心客戶在第二季度申請了破產保護。

This was the last of our customers benefiting from significant government subsidies. And I'll share in a moment, our contact center pipeline is full, suggesting these customers will be replaced. Our diversity across our three business units and the different industries in which we operate plays to our competitive advantage and acts as a significant cushion in the face of macro uncertainty.

這是我們最後一位享受政府巨額補貼的客戶。我馬上就會分享，我們的聯絡中心管道已滿，這意味著這些客戶將被替換。我們三個業務部門和所涉足的不同行業的多樣性發揮了我們的競爭優勢，並在宏觀不確定性面前發揮了重要的緩衝作用。

During this fluid period of both tariffs and duties, we derived a similar benefit on the cost side of the equation as our diversity of sourcing has long been a priority. This involves strategically positioning our sourcing in multiple countries across the world based on a redundant sourcing strategy, leveraging our own factories in Haiti, taking a multipronged approach to vendor negotiations and working with our customers to consider alternative product categories.

在關稅和稅費波動的這段時期，我們在成本方面也獲得了類似的好處，因為我們長期以來一直優先考慮採購的多樣性。這涉及根據冗餘採購策略在全球多個國家策略性地定位我們的採購，利用我們在海地自己的工廠，採取多管齊下的方式與供應商談判，並與我們的客戶合作考慮替代產品類別。

In essence, this real-time flexibility has served us well over the years, and SGC will remain nimble as international trade negotiations continue to evolve. Regardless of macro conditions, we remain hyper-focused on expense management. As we mentioned on our last call, we launched our initiative to reduce budgeted expenses during the second quarter, and we are seeing the benefit of those cost reductions, which has and will continue to position us for stronger profitability.

本質上，這種即時靈活性多年來一直為我們帶來良好的服務，隨著國際貿易談判的不斷發展，SGC 仍將保持靈活。無論宏觀條件如何，我們仍然高度關注費用管理。正如我們在上次電話會議上提到的那樣，我們在第二季度啟動了削減預算支出的舉措，並且我們看到了這些成本削減帶來的好處，這已經並將繼續幫助我們實現更高的盈利能力。

Turning to our second quarter results. We grew consolidated revenue more than 9% year-over-year even in this uncertain economic environment. Our largest business, Branded Products, significantly picked up over the past couple of months and generated 14% growth during the quarter, followed by Healthcare Apparel, which grew 6%. Revenues for our Contact Center business declined 3% versus the prior year period.

談談我們的第二季業績。即使在這種不確定的經濟環境下，我們的綜合收入仍年增 9% 以上。我們最大的業務——品牌產品，在過去幾個月中顯著回升，本季實現了 14% 的成長，其次是醫療保健服裝，成長了 6%。我們的聯絡中心業務收入與去年同期相比下降了 3%。

On the bottom line, net income per diluted share for the second quarter was $0.10, resulting in strong sequential improvement from the first quarter and up from $0.04 per diluted share in the second quarter of last year. Versus the year ago quarter, our higher profitability stemmed from the stronger top line results while maintaining a healthy gross margin and driving a slight improvement in SG&A as a percent of sales.

整體而言，第二季每股攤薄淨收益為 0.10 美元，較第一季季比大幅改善，且高於去年第二季每股攤薄淨收益 0.04 美元。與去年同期相比，我們的獲利能力有所提高，這得益於更強勁的營收業績，同時保持了健康的毛利率，並推動銷售、一般及行政費用佔銷售額的百分比略有提高。

As Mike will discuss more, we maintained a strong balance sheet during the quarter, which puts us in a position of strength to make strategic long-term decisions around the use of capital. In fact, we actively repurchased our own common shares during the second quarter, which we consider a compelling value.

正如麥克將進一步討論的那樣，我們在本季度保持了強勁的資產負債表，這使我們能夠在資本使用方面做出戰略性長期決策。事實上，我們在第二季積極回購了自己的普通股，我們認為這具有引人注目的價值。

I'll conclude my remarks today with a review of each of our business segments, beginning with Branded Products. As I mentioned, we saw a meaningful pickup later in the quarter. The good news is that for Branded Products, our pipeline of business opportunities and our order backlog both remain very strong. Looking ahead, our growing sales team is winning new accounts, growing our wallet share with existing customers and prospects. And therefore, we expect to continue expanding our still modest market share in this attractive highly fragmented market.

今天，我將回顧我們各個業務部門，首先是品牌產品部門，以此結束我的演講。正如我所提到的，我們在本季後期看到了顯著的成長。好消息是，對於品牌產品而言，我們的商業機會管道和訂單積壓仍然非常強勁。展望未來，我們不斷成長的銷售團隊正在贏得新客戶，增加現有客戶和潛在客戶的錢包份額。因此，我們希望在這個極具吸引力且高度分散的市場中繼續擴大我們仍然不大的市場份額。

As a reminder, we're in the top 10 largest branded product providers nationwide out of more than 25,000. Turning to Healthcare Apparel. Again, we were able to grow top line revenues despite the economic uncertainty felt by our customers, which impacted our institutional Healthcare Apparel and our wholesale-related channels.

提醒一下，在全國 25,000 多家品牌產品供應商中，我們是十大最大品牌產品供應商之一。轉向醫療保健服裝。儘管我們的客戶感受到經濟不確定性，影響了我們的機構醫療保健服裝和批發相關管道，但我們仍然能夠實現營業收入成長。

We are carefully and strategically investing to grow both of our digital channels, that's wholesale and direct-to-consumer and also to further spur demand for our Wink and Carhartt licensed brand products across all our channels. Similar to Branded Products, we have single-digit market share in Healthcare Apparel that continues to expand in this attractive long-term growth industry.

我們正在謹慎且有策略地投資，以發展我們的數位管道，即批發和直接面向消費者的管道，並進一步刺激我們所有管道對 Wink 和 Carhartt 授權品牌產品的需求。與品牌產品類似，我們在醫療保健服裝領域擁有個位數的市場份額，並且在這個具有吸引力的長期成長產業中繼續擴大。

Wrapping up our business segment discussion, our Contact Center segment has been more recently facing a couple of headwinds. First, as I mentioned a moment ago, one of TOG's largest customers who operates in the solar industry recently filed for bankruptcy, negatively impacting both second quarter results and future sales.

總結我們的業務部門討論，我們的聯絡中心部門最近面臨一些阻力。首先，正如我剛才提到的，TOG 最大的客戶之一，從事太陽能產業，最近申請破產，這對第二季的業績和未來的銷售都產生了負面影響。

Secondly, we are continuing to experience slower decision-making from prospective customers. While our new sales team is making good progress with RFPs and generating a record pipeline, the pace of revenue from new customers has been historically slow.

其次，我們持續感受到潛在客戶的決策速度變慢。雖然我們的新銷售團隊在 RFP 方面取得了良好進展並創造了創紀錄的銷售管道，但來自新客戶的收入成長速度一直很緩慢。

With that said, we are encouraged by the record pipeline of opportunities and the strong interest from a variety of companies and industries in nearshore outsourcing. Our opportunities are at various stages of customer diligence and negotiation, and we are working diligently to close those opportunities as quickly as possible.

話雖如此，我們對創紀錄的機會以及各類公司和產業對近岸外包的濃厚興趣感到鼓舞。我們的機會處於客戶盡職調查和談判的各個階段，我們正在努力盡快完成這些機會。

I'll now hand it over to Mike to take us through a detailed look at second quarter results, and then we'll open the lines for Q&A. Mike?

現在我將把時間交給麥克，讓他向我們詳細介紹第二季的業績，然後我們將開始問答環節。麥克風？

Thank you, Michael, and thank you, everyone, for joining us today. On a consolidated basis, we grew top line revenues 9% in the second quarter, our strongest year-over-year growth since the third quarter of last year. Our largest business, Branded Products, grew revenues by 14%, driven by the timing of orders delivered, organic expansion with existing large enterprise accounts, including higher tariffs and revenues generated by 3 point following its acquisition in December 2024.

謝謝你，邁克爾，也謝謝大家今天加入我們。從綜合來看，第二季我們的營業收入成長了 9%，這是自去年第三季以來最強勁的年成長。我們最大的業務品牌產品收入成長了 14%，這得益於訂單交付時間的安排、現有大型企業帳戶的有機擴張、更高的關稅以及 2024 年 12 月收購後產生的 3 個百分點的收入。

For Healthcare Apparel, we grew revenues by 6% over the second quarter of last year from volume increases in Wink and Carhartt products. Our Contact Center business saw a 3% decline in revenues versus the year ago quarter as continued macroeconomic headwinds resulted in customer downsizing and attrition outpacing new customer acquisition.

對於醫療保健服裝，由於 Wink 和 Carhartt 產品銷售的成長，我們的營收比去年第二季成長了 6%。由於持續的宏觀經濟逆風導致客戶規模縮小和流失速度超過新客戶獲取速度，我們的聯絡中心業務收入與去年同期相比下降了 3%。

While our sales activity has picked up and our sales force drove the pipeline to a record high, we are experiencing a slower pace of new customer acquisition due to the delay in decision-making from prospective customers that Michael previously mentioned.

雖然我們的銷售活動有所回升，我們的銷售團隊也推動銷售管道創下歷史新高，但由於邁克爾先前提到的潛在客戶決策延遲，我們的新客戶獲取速度正在放緩。

Our consolidated gross margin was about flat versus last year's second quarter at 38.4%, but up 160 basis points sequentially. SG&A at 36.3% of sales improved from 36.9% in the year ago quarter despite recognizing $1.8 million in credit loss reserves across the Branded Products and Contact Center segment during the second quarter due to customer bankruptcies.

我們的綜合毛利率與去年第二季的 38.4% 基本持平，但季增了 160 個基點。儘管第二季由於客戶破產導致品牌產品和聯絡中心部門提列了 180 萬美元的信用損失準備金，但銷售、一般及行政費用佔銷售額的 36.3%，較去年同期的 36.9% 有所改善。

The SG&A rate improvement was driven by leverage on the 9% sales increase as well as the benefit from cost reduction actions that we disclosed in the prior quarter. Putting together our stronger revenue with steady gross margin and improved SG&A performance, we generated EBITDA of $6.1 million, up from $5.6 million in the year earlier period.

銷售、一般及行政費用率的改善得益於 9% 的銷售額成長以及我們在上一季揭露的成本削減措施帶來的好處。憑藉更強勁的收入、穩定的毛利率以及改善的銷售、一般及行政開支 (SG&A) 業績，我們的 EBITDA 達到 610 萬美元，高於去年同期的 560 萬美元。

Turning to performance by segment. For Branded Products, we saw a 100 basis point improvement in gross margin to 35.6%, driven by favorable customer sales mix. The SG&A rate for Branded products also improved to 27.5% versus 28.3% in the second quarter of last year, benefiting from leverage on the significant sales increase for the quarter. As a result, Branded products drove strong improvement in quarterly EBITDA to $9 million, up from $6.7 million a year earlier.

轉向按部分劃分的表現。對於品牌產品，受有利的客戶銷售組合推動，毛利率提高了 100 個基點，達到 35.6%。受惠於本季銷售額的大幅成長，品牌產品的銷售、一般及行政費用率也從去年第二季的 28.3% 改善至 27.5%。因此，品牌產品推動季度 EBITDA 強勁成長至 900 萬美元，高於去年同期的 670 萬美元。

As for Healthcare Apparel, our gross margin of 35.5% decreased from 38.4% a year earlier due to higher cost of goods, including the recently enacted higher tariff costs in advance of price increases to our customers. Conversely, we are able to hold the line on controllable expenses and SG&A came in at 35.7% of sales, which was 150 basis points better than the second quarter of 2024, driven by higher sales during the quarter. Overall, our Healthcare Apparel EBITDA of $800,000 was down modestly from $1.3 million the prior year.

至於醫療保健服裝，我們的毛利率為 35.5%，低於去年同期的 38.4%，原因是商品成本上升，包括最近在向客戶提價之前實施的更高關稅成本。相反，我們能夠控制可控費用，銷售、一般及行政費用佔銷售額的 35.7%，比 2024 年第二季高出 150 個基點，這得益於本季銷售額的成長。總體而言，我們的醫療保健服裝 EBITDA 為 80 萬美元，較上年的 130 萬美元略有下降。

Moving on to Contact Centers. We drove a slightly higher gross margin of 52.6%, up 40 basis points year-over-year. However, the SG&A as a percentage of revenues increased to 48.4% as compared to 42.4% in the year ago quarter, primarily due to a $1.1 million credit loss reserve resulting from the solar customer bankruptcy during the quarter. Therefore, Contact Centers EBITDA of $1.6 million was down from $3.2 million a year earlier.

繼續討論聯絡中心。我們的毛利率略有上升，達到 52.6%，比去年同期上升了 40 個基點。然而，銷售、一般及行政費用佔收入的百分比從去年同期的 42.4% 上升至 48.4%，這主要是由於本季度太陽能客戶破產導致的 110 萬美元信用損失準備金。因此，聯絡中心的 EBITDA 為 160 萬美元，低於去年同期的 320 萬美元。

Turning to net interest expense. The second quarter was $1.3 million, which compares favorably to $1.5 million in the second quarter a year ago, benefiting from a lower weighted average interest rate. Putting it all together, we returned to profitability this quarter with net income of $1.6 million, up from the prior year second quarter's net income of $600,000. On a per share basis, we produced earnings per diluted share of $0.10, up from $0.04 compared to the year ago quarter.

轉向淨利息支出。第二季的利潤為 130 萬美元，與去年同期的 150 萬美元相比有所增長，這得益於較低的加權平均利率。綜合起來，我們本季恢復獲利，淨收入為 160 萬美元，高於去年第二季的 60 萬美元淨收入。以每股計算，我們的每股攤薄收益為 0.10 美元，高於去年同期的 0.04 美元。

Moving on to the balance sheet. At the end of June, we had $21 million in cash and cash equivalents, up from $19 million at the beginning of the year. We continue to actively buy back our own common shares during the quarter as an attractive use of capital, repurchasing about 390,000 shares for approximately $4 million, resulting in an average purchase price of $10.26 per share. We ended the quarter with $12.3 million remaining under our current buyback authorization of $17.5 million.

繼續討論資產負債表。截至六月底，我們的現金和現金等價物為 2,100 萬美元，高於年初的 1,900 萬美元。作為一種有吸引力的資本用途，我們在本季繼續積極回購自己的普通股，以約 400 萬美元的價格回購了約 39 萬股，平均購買價格為每股 10.26 美元。本季結束時，我們剩餘的回購金額為 1,230 萬美元，低於我們目前的 1,750 萬美元授權回購金額。

Taking into account our operating cash flow, share repurchases and consistent dividend, our net leverage ratio at the end of June was 2.2 times trailing 12-month covenant EBITDA, consistent with the first quarter and up from 1.7 times at the start of the year. We have significant liquidity to execute on our growth plans while continuing to return capital when possible to shareholders, and we remain well within our covenant requirements.

考慮到我們的營運現金流量、股票回購和持續的股息，我們 6 月底的淨槓桿率為過去 12 個月契約 EBITDA 的 2.2 倍，與第一季持平，高於年初的 1.7 倍。我們擁有充足的流動資金來執行我們的成長計劃，同時盡可能繼續向股東返還資本，並且我們仍然完全遵守我們的契約要求。

I'll wrap up with our full year outlook, which is unchanged from last quarter as we still expect revenues to be in the range of $550 million to $575 million, suggesting year-over-year growth at the high end of about 2%. While our clients across all three business lines continue to face uncertainty regarding inflation, interest rates, tariff duties and other macro factors, we're well positioned to support their needs regardless of the economic environment, given our strong liquidity and the costs we've already removed from the business while continuing to invest in our own favorable growth prospects.

最後，我將對全年業績做出展望，與上一季相比，全年業績沒有變化，我們仍預計收入將在 5.5 億美元至 5.75 億美元之間，這意味著同比增長將達到 2% 左右。儘管我們三個業務線的客戶繼續面臨通貨膨脹、利率、關稅和其他宏觀因素的不確定性，但鑑於我們強大的流動性和我們已經從業務中消除的成本，無論經濟環境如何，我們都能夠很好地滿足他們的需求，同時繼續投資於我們自己有利的成長前景。

And now operator, if you could please open the line, Michael, Jake and I would be happy to take questions.

接線員，請您接通電話，麥可、傑克和我很樂意回答您的問題。

(Operator Instructions)

（操作員指示）

David Marsh, Singular Research.

大衛·馬什（David Marsh），Singular Research。

(technical difficulty) taking the questions and nice to hear you guys a lot more upbeat than you were last quarter. So congrats on the quarter. So first question, Mike, I guess this is for you. Just wanted to zero in on the SG&A a little bit. I see as a percentage of revenue that it is down nicely sequentially and year-over-year.

（技術難題）回答問題，很高興聽到你們比上個季度更樂觀。恭喜本季取得佳績。所以第一個問題，麥克，我想這是給你的。只是想稍微關註一下銷售、一般和行政費用 (SG&A)。我認為，從收入百分比來看，它比上一季和去年同期都有大幅下降。

But on a gross dollar basis, it's up, and I'm guessing it's up driven by the higher revenues. So I was just wondering if you might be able to help us kind of quantify as a percentage like what percentage of SG&A is tied to increases and decreases in sales and kind of what percentage is more kind of fixed recurring type costs?

但從總美元計算，它是上升的，我猜這是由更高的收入推動的。所以我只是想知道您是否可以幫助我們以百分比形式量化，例如銷售、一般和行政費用中有多少百分比與銷售額的增加和減少有關，有多少百分比是固定的經常性成本？

Sure. I would just call out, Dave, from -- as we mentioned in our prepared remarks, within SG&A for the quarter, so our SG&A is $52.2 million for the quarter. That does include $1.8 million of credit loss reserves charges. So more like onetime charges. So if you were to take that out, our SG&A would have been about 35% of sales.

當然。戴夫，我只想說一下——正如我們在準備好的發言中提到的那樣，本季度的銷售、一般和行政費用為 5220 萬美元。其中包括 180 萬美元的信用損失準備金費用。所以更像是一次性收費。因此，如果將其扣除，我們的銷售、一般和行政費用將佔銷售額的 35% 左右。

So even better leverage for the quarter relative to those sales that we drove for the quarter. So again, we would have had a much, much better rate there. Commissions, particularly within the Branded Products segment are variable, and they are included within G&A.

因此，相對於我們本季推動的銷售額而言，本季的槓桿率甚至更高。所以，我們本來可以獲得更優惠的價格。佣金，特別是品牌產品部分的佣金是可變的，並且包含在一般及行政費用 (G&A) 中。

And we've got some other variable expenses related to sales, obviously. But again, by and large, with that -- with those credit loss charges this quarter, that's what kind of impeded some of the otherwise strong improvement in G&A that we would have realized.

顯然，我們還有一些與銷售相關的其他變動費用。但總的來說，由於本季的信用損失費用，這在某種程度上阻礙了我們原本可以實現的 G&A 方面的一些強勁改善。

Got it, thank you very much for that. That's helpful. Yeah, a lot of talk this quarter on different conference calls and different industries about the impacts of AI on business. I'm trying to understand if there are any opportunities for Superior Group to take advantage of AI, perhaps to reduce costs in some of the business lines. Could you just talk about what those opportunities might be?

明白了，非常感謝。這很有幫助。是的，本季在不同的電話會議和不同的行業中有很多關於人工智慧對商業的影響的討論。我想了解 Superior Group 是否有機會利用人工智慧，或許可以降低某些業務線的成本。您能談談這些機會可能是什麼嗎？

Yeah. It's a long conversation. I'm going to try to get through it quickly. I'll speak to our Contact Centers in particular, but then jump over to some of the other businesses. We are employing AI in every facet of our Contact Centers, talent acquisition and development, onboarding people, enabling agents to build confidence readiness before even reaching the production floor.

是的。這是一次漫長的談話。我會盡力盡快完成它。我將特別談談我們的聯絡中心，然後談談其他一些業務。我們在聯絡中心的各個方面都運用人工智慧，包括人才獲取和發展、員工入職培訓，使代理商在到達生產現場之前就能建立信心準備。

In our sales and marketing enablement, we've -- in identifying high-value prospects, optimizing outreach strategies, really contributing to a more target efficient go-to-market approach using AI. We have a product called Guru Assist that basically does real-time next best action guidance to agents on the phone, improves their accuracy, the average handle time and customer satisfaction, which makes our customer particularly pleased because it's a much more efficient process for them.

在我們的銷售和行銷支援中，我們識別高價值潛在客戶，優化外展策略，真正利用人工智慧為更有針對性的高效上市方法做出貢獻。我們有一款名為 Guru Assist 的產品，它基本上可以為電話代理提供即時的下一個最佳行動指導，提高他們的準確性、平均處理時間和客戶滿意度，這讓我們的客戶特別高興，因為這對他們來說是一個更有效率的流程。

In addition to that, we've got insights from AI and reporting from AI that's enhanced our ability to really be a whole lot more effective in our business. Our clients are reporting measurable improvements in interaction quality, effectiveness and overall customer experience, and we're seeing our satisfaction scores, which were already high, even higher than ever.

除此之外，我們還從人工智慧中獲得了洞察力和人工智慧報告，這增強了我們真正提高業務效率的能力。我們的客戶報告稱，互動品質、有效性和整體客戶體驗都有了顯著的改善，而且我們的滿意度得分也從原本就很高的水平上升到了前所未有的水平。

Then you go and you jump into Jake's business. I'll let Jake jump in since he's on the call and tell you what we're doing in our Branded Products business and AI.

然後你就去介入傑克的生意。既然傑克正在通話中，我就讓他插話，告訴你我們在品牌產品業務和人工智慧所做的工作。

Yeah, thanks, Michael, and nice to meet you, Dave. So what I'd say is on the Branded Product side, the thing that takes the longest amount of time for us to do by far is product selection, right? Someone comes to us and says, we're having a trade show, we're having an event, we're doing a holiday party, go select items for us. That is by far the most time-consuming and labor-intensive aspect of the Branded Products business.

是的，謝謝，邁克爾，很高興認識你，戴夫。所以我想說的是，在品牌產品方面，到目前為止我們花時間最長的事情就是產品選擇，對嗎？有人來找我們說，我們要舉辦貿易展，我們要舉辦活動，我們要舉辦節慶派對，請您去為我們挑選物品。這是迄今為止品牌產品業務中最耗時、最耗力的方面。

We're putting AI agents into our technology to allow us to basically do product selection and mockups using artificial intelligence rather than human beings. So you might ask, hey, I need a holiday gift for 500 employees and spend $100 an employee, rather than one of our people going and going to 10 websites and finding items and marking them up, we can use an AI agent to do all of that for us and present ideas that quite honestly, are going to select better ideas than any human being can select because it's going through all the history of what you've ordered in the past, what's trending now in the marketplace.

我們將人工智慧代理融入我們的技術中，以便我們基本上可以使用人工智慧而不是人類來進行產品選擇和模型製作。所以你可能會問，嘿，我需要為 500 名員工準備一份節日禮物，每位員工花費 100 美元，我們不需要讓一個人跑到 10 個網站上尋找物品並進行標記，我們可以使用人工智能代理來為我們完成所有這些工作，並提出一些想法，說實話，這些想法會比任何人選擇的想法都更好，因為它會查看你過去的市場歷史上的所有趨勢。

And that is better for us from an employee leverage perspective and also a better experience for the client. So that's a huge advantage for us that the rest of our industry doesn't have the technical wherewithal nor the financial capability of putting something like that in place.

從員工槓桿的角度來看，這對我們來說更有利，對客戶來說也是更好的體驗。因此，這對我們來說是一個巨大的優勢，因為我們行業的其他公司既不具備技術實力，也不具備實施類似專案的財務能力。

That's super helpful and sounds very positive for the outlook going forward. Just if I could sneak one more in before I turn it over. You guys reiterated some revenue guidance for the year. That range looks quite reasonable given where you are here halfway through. Are you feeling a little bit better about visibility in the back half of the year? And is that giving you the confidence to reiterate that range here?

這非常有幫助，並且對未來的前景非常樂觀。只是如果我能在把它翻過來之前偷偷地再放進去一個就好了。你們重申了今年的一些收入指引。考慮到您目前所處的位置，這個範圍看起來相當合理。您對下半年的可見度感覺好一點了嗎？這是否讓您有信心在此重申範圍？

Sure. I think, Dave, the message I think you get from the prepared remarks is we're seeing mixed results, mixed reactions to the current environment. Clearly, in our Branded Products segment, very strong quarter, good growth in healthcare top line as well, but feeling some of the initial impacts of tariffs.

當然。戴夫，我認為你從準備好的發言中得到的訊息是，我們看到了不同的結果，對當前環境的反應也不同。顯然，在我們的品牌產品部門，本季業績非常強勁，醫療保健業務也實現了良好的成長，但也感受到了關稅的一些初步影響。

So I think that -- I think we're feeling obviously very comfortable with the range that we have, which is why we reiterated the range. But there's still a level of uncertainty out there. China still has the possibility of changing. Obviously, there was a tariff update given last week, which does provide a little bit more certainty in certain other countries.

所以我認為——我認為我們對我們現有的範圍感到非常滿意，這就是我們重申該範圍的原因。但仍存在一定程度的不確定性。中國仍有改變的可能。顯然，上週發布了關稅更新，這確實為其他一些國家提供了更多的確定性。

So still some uncertainty, but I would say that the performance of the second quarter being improved sequentially and up over last year gives us, obviously, a little bit more confidence as we head into the third and fourth quarter, and we're certainly working very diligently to keep that momentum going into the back half of the year.

因此仍然存在一些不確定性，但我想說，第二季度的表現比去年同期有所改善，這顯然讓我們在進入第三季度和第四季度時更有信心，而且我們肯定會非常努力地保持這種勢頭到下半年。

Thanks, Mike. I appreciate that those comments. I'm going to yield the floor. Thanks a lot for taking the questions guys. I appreciate it.

謝謝，麥克。我很欣賞這些評論。我要放棄發言權。非常感謝大家回答這些問題。我很感激。

Keegan Cox, D.A. Davidson.

基根‧考克斯 (Keegan Cox)、地方檢察官戴維森 (D.A. Davidson)。

Yeah, nice quarter day, guys. My question is going to be on everyone's favorite topic, tariffs. I was wondering if you guys saw any customer pull forward related to tariffs this quarter? And then also what you're seeing in inventory because I see you had a little bit of a build.

是的，夥計們，這是一個美好的季度。我的問題是關於大家最感興趣的話題——關稅。我想知道你們本季是否看到與關稅相關的客戶提前行動？然後，您還可以看到庫存，因為我看到您進行了少量構建。

Yeah, Keegan, this is Jake Himelstein. I'll start there with what I'm seeing in the Branded Products segment. Certainly, from a tariff perspective, there -- it puts some cost pressures and supply chain challenges around the business. I think that with some of the more recent deals that have happened from the US with like China and Vietnam, it's eased a little bit of that pressure.

是的，基岡，這是傑克‧希梅爾斯坦。我將從我在品牌產品領域看到的情況開始。當然，從關稅的角度來看，它給企業帶來了一些成本壓力和供應鏈挑戰。我認為，美國最近與中國和越南等國達成的一些協議在一定程度上緩解了這種壓力。

We've responded to these tariffs with very strategic inventory buys, leveraging long-term supplier relationships, leaning on our suppliers to get better pricing in some cases. And the beauty of the Branded Products business is the vast majority of it is made to order, meaning the orders come in and we price them to order.

我們對這些關稅做出了非常有策略性的庫存採購反應，利用長期的供應商關係，在某些情況下依靠我們的供應商來獲得更好的價格。品牌產品業務的魅力在於，絕大多數產品都是按訂單生產的，這意味著訂單來了，我們就按訂單定價。

And so if there are tariffs there, we will add in that tariff cost and for the most part, be able to pass it through to our clients. So while certainly tariffs are a headwind, we've been very proactive, and we've been able to kind of use it as a competitive advantage in the environment. Our competition shockingly has basically buried their head in the sand the last four or five months on the tariff side. And we've been very aggressive doubling down, picking up new clients, picking up new sales reps from some of our competitors.

因此，如果那裡有關稅，我們將增加關稅成本，並且大部分可以將其轉嫁給我們的客戶。因此，儘管關稅無疑是一個阻力，但我們一直非常積極主動，並且能夠將其用作環境中的競爭優勢。令人震驚的是，過去四、五個月，我們的競爭對手在關稅方面基本上視而不見。我們一直在積極加倍努力，從一些競爭對手那裡招募新客戶和新銷售代表。

And it's kind of been our MO throughout our history is that when things are challenging, when there's a difficult economic environment, we get more aggressive, and it's been really beneficial for us.

在我們的歷史上，這一直是我們的作風，當事情變得具有挑戰性時，當經濟環境變得困難時，我們會變得更加積極主動，這對我們確實有益。

I'll add. We did encourage our customers to try to order early, particularly with merchandise that was sitting in the US already from some of our suppliers that would get loaded and shipped to them. I have to tell you, I would have expected more to have jumped on that opportunity and saved a boatload of money doing it. But you'd be surprised how few did. Enough did it that it definitely helped a little bit. I wouldn't say it was significant.

我補充一下。我們確實鼓勵我們的客戶儘早訂購，特別是那些已經從我們的一些供應商運送到美國的商品，這些商品將被裝船運送給他們。我必須告訴你，我原本希望有更多人抓住這個機會並節省一大筆錢。但你會驚訝地發現，這樣做的人竟然如此之少。做得夠多了，肯定有一點幫助。我不會說這很重要。

And then in our Health Care business, I don't think that happened at all. I think quite the contrary on the institutional side of the business. I think everybody is just holding off waiting to see what's going to happen. And I think they're waiting to see what's going to happen with Medicare and Medicaid reimbursements in healthcare, too as well. That's on the institutional side and how they're going to spend money and what hospital censuses are going to be and what's going to be covered and what's not.

而在我們的醫療保健業務中，我認為這種情況根本沒有發生。我認為從業務的機構方面來看情況恰恰相反。我認為每個人都只是在等著看會發生什麼。我認為他們也在等待觀察醫療保險和醫療補助在醫療保健方面的報銷情況。這是從機構考慮的，他們將如何花錢，醫院普查將是什麼，涵蓋哪些內容，不涵蓋哪些內容。

But on the consumer side, we're very encouraged by what we saw. Foot traffic in retail has improved with our scrubs channel and our direct-to-consumer also was quite robust. So a little bit of a mixed bag. Obviously, the office tours was not really impacted. There was no pull forward.

但從消費者的角度來看，我們看到的情況令我們非常鼓舞。隨著我們的磨砂膏通路的推出，零售店的客流量有所改善，而且我們的直接面向消費者的銷售也相當強勁。所以有點混亂。顯然，辦公室參觀並沒有受到太大影響。沒有向前拉。

Got it. And --

知道了。和--

Keegan, did you have a question about inventory overall?

基岡，你對整體庫存有什麼疑問嗎？

Yes, just the build there this quarter.

是的，本季就在那裡建造。

Yes. Okay, I'll hit that. So we did have a build in inventory primarily within our healthcare business. That's due as we're looking for a stronger back half pickup in trend in healthcare. And then last year, we did experience stockouts, particularly on the institutional side of our healthcare business.

是的。好的，我會打那個。因此，我們確實主要在醫療保健業務中建立了庫存。這是因為我們期待醫療保健產業下半年出現更強勁的回升趨勢。去年，我們確實經歷了缺貨的情況，特別是在醫療保健業務的機構方面。

So filling in inventory where we felt necessary to support sales. Again, to some extent, this is, call it, seasonal or cyclical. So again, we're building in preparation for an upward trend in the back half of the year, consistent with our overall guidance. And then obviously, we would expect those inventories to normalize on the other side of those sales as we move forward.

因此，我們認為有必要補充庫存以支持銷售。再次，從某種程度上來說，這是季節性的或週期性的。因此，我們再次為下半年的上升趨勢做好準備，這與我們的整體指導一致。然後顯然，隨著我們的前進，我們預計這些庫存將在銷售的另一邊恢復正常。

Got it. And then just a follow-up. I wanted to get your guys thoughts on the outlook given the recent weaker employment report and job revisions. And then if there -- if you've noticed any changes in customer order patterns?

知道了。然後只是後續行動。鑑於最近就業報告和就業修正較弱，我想聽聽你們對前景的看法。那麼，如果您注意到客戶訂單模式有任何變化？

I would make a comment that there hasn't been a great reduction in healthcare in hiring. As a matter of fact, there's still a huge shortage of healthcare workers. So healthcare really hasn't been impacted very much. It's quite the contrary. As we've said on previous calls, a lot of our retail customers, particularly grocery, fast food, are trying to automate as much as they can.

我想說的是，醫療保健產業的招募人數並沒有大幅減少。事實上，醫護人員仍然嚴重短缺。因此醫療保健實際上並沒有受到太大影響。事實恰恰相反。正如我們在之前的電話會議中所說的那樣，我們的許多零售客戶，特別是雜貨店、快餐店，都在盡可能地自動化。

So they've been doing very little hiring, except to replace employees over the past 1.5 years. But yeah, there's a little bit of an impact on that. No doubt that some of our customers are holding back because they're seeing things slow down a little bit.

因此，在過去的一年半里，他們很少招募員工，除了替換員工。但是，是的，這確實有一點影響。毫無疑問，我們的一些客戶正在猶豫，因為他們發現事情進展有點放緩。

And -- but grocery is still doing well. But grocery -- I mean we've all been in grocery stores where they're trying to get customers to do their own checkout now. And some are successful and some have actually gone away from that because the shrinkage was too great from theft.

但食品雜貨業依然表現良好。但是雜貨店——我的意思是我們都去過雜貨店，他們現在正試圖讓顧客自己結帳。有些企業成功了，有些企業因為竊盜造成的損失太大而放棄了這項業務。

So kind of a mixed bag. It's -- I have not seen anything that indicates to me that our business has been significantly impacted by any kind of labor reductions in the workforce.

真是好壞參半。我沒有看到任何跡象表明我們的業務受到任何形式的勞動力減少的重大影響。

And Michael, one thing that I'll add to that is on the branded product side, we do quite a bit with technology companies. And with AI, there's a lot of money flying around and there's a lot of hiring. And that has been very beneficial to us where we've seen a lot of our technology clients come out of the tariff situation has maybe not fully resolved, but at least normalized. We've seen a lot more spend and decision-making open back up, which has been very beneficial for us.

邁克爾，我想補充一點，在品牌產品方面，我們與科技公司有許多合作。隨著人工智慧的發展，大量資金湧入，大量招募也隨之而來。這對我們來說非常有利，我們看到很多技術客戶擺脫了關稅困境，雖然可能還沒有完全解決，但至少已經正常化了。我們看到支出和決策權都大幅提升，這對我們非常有利。

Thank you.

謝謝。

Kevin Steinke, Barrington Research.

凱文‧史坦克，巴靈頓研究中心。

Great, thank you. I just wanted to dig a little bit more into the strong growth in Branded Products and just kind of a portion, the drivers of that. You talked about market share gains. I think you also mentioned timing of orders, maybe an improvement in terms of customer sentiment. So I just -- if you could talk about really, is that most of that growth driven by the market share gains, like you said, competitors really pulling back or have customers have become more comfortable with moving forward in this environment despite some of the uncertainties?

太好了，謝謝。我只是想更深入地了解品牌產品的強勁成長及其部分驅動因素。您談到了市場佔有率的成長。我想您也提到了訂單的時間安排，也許在客戶情緒方面有所改善。所以我只是——如果您能真正談談，這種增長是否主要由市場份額的增長推動，就像您說的那樣，競爭對手真的在撤退，還是儘管存在一些不確定性，客戶是否已經對在這種環境下前進變得更加放心？

Hey Kevin, this is Jake. I'm happy to talk about that. It is really a combination of all of those things. And last quarter, we talked about how pipeline and backlog were extremely strong. And so even in spite of the tariff environment, we saw that pipeline and backlog and knew that was going to pull through.

嘿，凱文，我是傑克。我很高興談論這個。它實際上是所有這些事物的結合。上個季度，我們討論了管道和積壓訂單如何極為強勁。因此，即使面臨關稅環境，我們也看到了管道和積壓訂單，並且知道這一切都會順利完成。

And sure enough, it did. And we've been really happy with that -- with those gains. And our pipeline still remains very healthy, continue to see a lot of organic expansion with some of those key enterprise accounts, particularly on the tech side that I spoke about earlier.

果然，確實如此。我們對這些收穫感到非常高興。我們的管道仍然非常健康，一些關鍵企業帳戶繼續實現大量有機擴張，特別是在我之前提到的技術方面。

But yeah, look, we did have some Q2 pull forward some orders that were maybe going to deliver later in the year that pulled forward. A lot of this was potentially looking at tariffs and trying to pull orders a little bit earlier.

但是，是的，你看，我們確實在第二季提前了一些訂單，這些訂單可能要在今年稍後交付。其中許多都可能考慮關稅並試圖提前撤回訂單。

But really, that's in my view, a testament to the strength of our operations team and being able to pull orders in the second quarter. But I still think we're going to have a really solid second half of the year. Things look very strong, pipeline, backlog, both very, very encouraging.

但實際上，在我看來，這證明了我們營運團隊的實力以及能夠在第二季完成訂單的能力。但我仍然認為我們今年下半年的業績將會非常穩健。事情看起來非常強勁，無論是管道、積壓，還是其他方面都非常令人鼓舞。

And yes, we're starting to see those decisions open up again where people were very apprehensive in the second quarter because of the tariffs. Starting now into the third quarter, we've seen really encouraging signs of momentum from our clients across all industries.

是的，我們開始再次看到這些決定，人們在第二季因關稅而非常擔心。從第三季開始，我們看到各行各業的客戶都出現了令人鼓舞的發展跡象。

Okay. Thanks for the insight on that. And you mentioned when talking about healthcare, expecting a stronger second half of 2025. Again, I think you talked about better trends in I guess, retail and direct-to-consumer, is that where you're expecting the favorable trends to continue? It sounds like the institutional is still pretty slow and uncertain, but any more comment on that would be helpful.

好的。感謝您對此的見解。您在談到醫療保健時提到，預計 2025 年下半年將會更加強勁。再次，我認為您談到了零售和直接面向消費者的更好趨勢，您是否預計有利趨勢會繼續下去？聽起來該機構仍然相當緩慢且不確定，但對此進行更多評論都會有所幫助。

Yeah. We expect the institutional side to pick up. There's only so long they can go and process the same uniforms in their laundry before they basically come to end of life and have to replace them, Kevin. So they brought down their inventories for sure. There's some of the shelf stock inventory.

是的。我們預計機構方面將會回升。他們只能在洗衣房裡處理同樣的製服一段時間，直到這些制服的使用壽命結束，然後才需要更換，凱文。所以他們肯定會減少庫存。有一些貨架庫存。

Maybe they haven't bought as much reserve inventory to feed that -- to feed what is really a huge need in their laundries. But we expect that to return. We expect consumer to -- the second half of the year generally is better. You have a lot of holidays. You've got all Prime Days and you've got all the Black Friday or Turkey 12 and all these other selling periods in the second half of the year that I always felt very helpful as well as holiday gifting and so on.

也許他們沒有購買那麼多的儲備庫存來滿足洗衣店真正巨大的需求。但我們預計這種情況將會恢復。我們預計下半年消費者的狀況整體會更好。你有很多假期。你們有所有的 Prime Days、所有的黑色星期五或火雞節，以及下半年的所有其他銷售期，我一直覺得這些都很有幫助，還有節日禮物等等。

So we expect that the second half of the year in healthcare to be better. I think there's -- it's no great secret that Amazon is a large customer of ours and Amazon has made some decisions with respect to how much inventory they're going to carry on the shelf. And so they're carrying less inventory on the shelf. I mean that's been widely publicized. And as a result, they've been able to get by not ordering as much in the prior quarters.

因此我們預計下半年醫療保健產業的情況會更好。我認為——亞馬遜是我們的大客戶，這不是什麼秘密，而且亞馬遜已經就貨架上庫存量做出了一些決定。因此，貨架上的庫存就減少了。我的意思是這已經被廣泛宣傳了。因此，他們能夠透過減少前幾季的訂單來維持營運。

But that too will come to an end, and we expect that to pick up as well. So all things look good for healthcare for second half of the year.

但這種情況也將結束，我們預計這種情況也會好轉。因此，今年下半年醫療保健的情況看起來一片大好。

Okay. Good. And just also on Contact Centers, you mentioned the strong pipeline there, but kind of historically slow decision-making. What do you think it takes to get that pipeline moving and converting again? Is that -- I mean, again, is that something that your clients eventually need to do or they can kind of hold off on?

好的。好的。關於聯絡中心，您也提到了那裡有強大的管道，但決策速度卻一直比較慢。您認為需要怎麼做才能使該管道再次運行和轉換？這是——我的意思是，這是您的客戶最終需要做的事情還是他們可以推遲做的事情？

And then definitely, I think there'd be some aspect of that perhaps being an efficiency play or a cost savings play for them in some respects. But I don't know, any thoughts on that?

當然，我認為從某些方面來說，這或許可以提高他們的效率或節省成本。但我不知道，對此有什麼想法嗎？

It's a good question. We think we're there when you say, what can we do to improve the pipeline. We're spending more money on marketing ever to drive people to us organically. Our sales force is bringing us more opportunities than ever. We're using lots of technology to data mine to be able to find new customers, both in the -- all the verticals that we're already in and even some new ones. We're not leaving the stone unturned.

這是個好問題。當您問我們能做些什麼來改善管道時，我們認為我們已經到了那裡。我們在行銷上投入了越來越多的資金，以自然地吸引人們關注我們。我們的銷售隊伍為我們帶來了比以往更多的機會。我們正在使用大量技術進行資料探勘，以便能夠找到新客戶，包括我們已經涉足的所有垂直領域，甚至一些新客戶。我們不會放過任何機會。

The good news is that we measure where things are in our pipeline in our -- and I can tell you that I'm not talking about opportunity pipeline. I'm talking about customers who we are at least 95% certain we're going to win their business because we've exchanged contracts, pricing has been agreed to at this point.

好消息是，我們可以衡量事物在我們的管道中的位置——我可以告訴你，我說的不是機會管道。我指的是那些我們有至少 95% 的把握會贏得他們業務的客戶，因為我們已經交換了合同，並且價格也已經達成一致。

We've redlined back and forth, and we are very, very close to consummating a lot of deals. which will impact mostly fourth quarter, but even more so first quarter of next year. But we're very encouraged by both our -- I would call that backlog and as well as opportunity pipeline, which is growing, and as Mike said earlier, is the largest we've ever seen.

我們反覆劃定紅線，並且非常接近完成許多交易。這將主要影響第四季度，但對明年第一季的影響更大。但我們對我們的積壓和機會管道感到非常鼓舞，它們正在增長，正如邁克之前所說，這是我們見過的最大的。

Okay, well that's good to hear. Thanks for taking the questions. I'll turn it back over.

好的，很高興聽到這個消息。感謝您回答這些問題。我會把它翻過來。

Thank you, Kevin.

謝謝你，凱文。

Jim Sidoti, Sidoti & Co.

吉姆·西多蒂，西多蒂公司

Hi, good afternoon. Thanks for taking the questions. So Mike, you called out that $1.8 million of credit loss reserve, which would bring your SG&A down to the around 35%. Is that a good metric for the end of the year? Do you think SG&A right around 35% is realistic?

嗨，下午好。感謝您回答這些問題。所以麥克，你提到了 180 萬美元的信用損失準備金，這將使你的銷售、一般和行政費用 (SG&A) 降至 35% 左右。這是年底的好指標嗎？您認為 35% 左右的銷售、一般及行政費用是現實的嗎？

I think that's a reasonable target, Jim. I mean, obviously, it depends on where we fall into that range. But I think when you take into account the cost reductions that we talked about in the first quarter call, that have begun to kick in during the second quarter. Obviously, we'll see more of a benefit of that going forward. That should enable us to get overall a little bit of leverage for the full year.

我認為這是一個合理的目標，吉姆。我的意思是，顯然，這取決於我們處於哪個範圍。但我認為，如果考慮到我們在第一季電話會議上談到的成本削減，那麼這些成本削減在第二季已經開始顯現。顯然，未來我們將看到更多的好處。這應該能使我們在全年獲得一點整體的槓桿作用。

All right. And you also mentioned that the 3 point acquisition was starting to contribute to branded products. Are there other 3 points out there? And how aggressive are you at this point on the acquisition side?

好的。您也提到，收購 3 point 開始為品牌產品做出貢獻。還有其他 3 點嗎？目前您在收購方面有多積極？

I can take that one. This is Jake.

我可以接受那個。這是傑克。

Well, there are --

嗯，有--

Want to take it, Mike?

想拿走它嗎，麥克？

No. Go ahead, Jake.

不。繼續吧，傑克。

Yes. There are -- look, there are 25,000 companies in our industry that are distributors just like us, Jim. So there are quite a few other 3 points out there. I would say at this point, we're opportunistic. If there's a great opportunity out there, we'll certainly look at it, but we're going to kiss a lot of frogs.

是的。你看，我們這個行業有 25,000 家公司和我們一樣都是經銷商，吉姆。所以還有相當多其他的 3 點。我想說，就這一點而言，我們是機會主義者。如果有一個好機會，我們肯定會考慮，但我們會親吻很多青蛙。

We're going to talk to a lot of companies that are not the right fit, and we will be very selective to find the right ones. But the easy answer to the question is that there are a lot of companies just like 3 point out there that have owners that are aging out that want to look for an exit, and we are a very appealing landing spot for them.

我們將與許多不合適的公司進行洽談，我們將非常謹慎地挑選出合適的公司。但這個問題的簡單答案是，有很多像 3 point 這樣的公司，它們的所有者都已年事已高，想要尋找退出的機會，而對於他們來說，我們是一個非常有吸引力的著陸點。

And let me add to that, Jim, this is Michael, that we spoke about on the last couple of calls, our reluctance to jump into any acquisitions considering all the uncertainty around us. But I think you should get a sense from this call that we're past that now. And we have one bad quarter this year, worst quarter we've had in a couple of years in many years, maybe decades. But having an operational loss the way we did.

讓我補充一點，吉姆，我是邁克爾，我們在前幾次通話中談到了這一點，考慮到我們周圍的所有不確定性，我們不願意進行任何收購。但我想你應該從這通電話中感覺到我們已經度過了那個階段。今年我們經歷了一個糟糕的季度，這是我們多年來，甚至幾十年來，經歷的最糟糕的季度。但我們這樣做卻造成了營運損失。

But now that we're on the right path, I think we are very serious about trying to partner with the right companies and find the right opportunities. But we're going to -- as Jake just said, we're going to be very selective. They have to be quickly accretive, and they have to not distract us from organic growth because we believe -- as proven this quarter, we're able to organically grow. And obviously, that's the best thing we can do for our shareholders.

但現在我們走在了正確的道路上，我認為我們非常認真地嘗試與合適的公司合作並尋找合適的機會。但正如傑克剛才所說，我們會非常謹慎。它們必須快速成長，並且不能分散我們對有機成長的注意力，因為我們相信——正如本季所證明的那樣，我們能夠實現有機成長。顯然，這是我們能為股東做的最好的事。

Okay. And then last one for me is on tariffs. India has been in the news, I guess, the last day or so, potential tariffs there. Is India a supplier for any of your components? Could that be an issue for you?

好的。對我來說最後一個問題是關稅。我想，過去一天左右，印度一直是新聞焦點，那裡可能會徵收關稅。印度是你們任何零件的供應商嗎？這對你來說是個問題嗎？

Very, very little. And they're not exclusive. In some cases, we could, in a moment, switch to other countries, which we will. We do a little bit of knit shirts there and a couple of other products, but very, very little. We do have an office in India, as you know, with over 400 people and it's supporting particularly branded products, but from a programming standpoint, really supporting all of our businesses, but that has not been impacted at all.

非常非常少。而且它們並不是排他性的。在某些情況下，我們可能會立即轉向其他國家，我們會這樣做。我們在那裡生產少量針織衫和一些其他產品，但數量非常少。如您所知，我們在印度確實有一個辦事處，擁有 400 多名員工，主要負責支援品牌產品，但從程式設計的角度來看，它確實支援我們所有的業務，但這絲毫沒有受到影響。

Okay. All right, thank you.

好的。好的，謝謝。

Michael Kupinski, Noble Capital Markets.

麥可‧庫賓斯基 (Michael Kupinski)，Noble Capital Markets。

Thank you and congratulations on your good quarter. A couple of questions. So in the last call, you indicated that there would be some mitigation efforts to offset tariffs. And I know we talked a lot about tariffs, including the prospect of manufacturers taking a portion of the tariff impact. Can you just add a little color on how those mitigation efforts went?

謝謝您，並祝賀您本季取得良好業績。有幾個問題。因此，在上次通話中，您表示將採取一些緩解措施來抵消關稅。我知道我們討論了很多關於關稅的問題，包括製造商承擔部分關稅影響的前景。能否稍微介紹一下這些緩解措施的進展？

Have all of those mitigation efforts been implemented at this point? And were there price increases already factored into the second quarter?

目前所有這些緩解措施都已實施了嗎？第二季的價格上漲是否已經反映在內了？

I'll start with the last portion of that price increases mostly kick in during the third quarter, the very end of second quarter, some of them, most of them third quarter. As far as the mitigation activities, we were successful in what we contemplated we would be able to push back and adjusted our pricing to our customers accordingly, not trying to take unfair advantage of them. But we feel like we've landed in a really good place.

我先從最後一部分開始說，價格上漲大多發生在第三季度，也就是第二季末，其中一些，大部分發生在第三季。就緩解活動而言，我們成功地實現了預期目標，我們將能夠推遲並相應地調整對客戶的定價，而不是試圖不公平地利用他們。但我們感覺我們已經到達了一個非常好的地方。

And from a competitive standpoint, I don't want to get too specific about what we did. But I feel we're in very good stead. And really, I believe that going forward, we protected our margins pretty much.

從競爭的角度來看，我不想太具體地說明我們所做的事情。但我覺得我們處於非常有利的地位。我確實相信，展望未來，我們基本上保護了我們的利潤率。

And it seems like you're pretty sanguine about the outlook. But obviously, given where the trend lines are, you're still a little cautious about the second half. Is that largely because it seems at least that the tariff impact largely would fall in the second half, right? Because most lead times and shipping and things like that probably wouldn't affect the second quarter as much as it probably would like maybe the third quarter or the fourth quarter. I was just wondering if you can just discuss those mitigation efforts as it might impact the margins.

看起來您對前景非常樂觀。但顯然，考慮到趨勢線的位置，你對下半年仍然有些謹慎。這主要是因為至少看起來關稅的影響在下半年會大幅下降，對嗎？因為大多數交貨時間和運輸等因素可能不會對第二季度產生太大影響，但可能會對第三季或第四季產生很大影響。我只是想知道您是否可以討論這些緩解措施，因為它可能會影響利潤。

And I know you talked a little bit about SG&A, but I was just wondering where is the sense of caution that you have? Is it on the margin or is it on the revenue side as we kind of look towards the second half?

我知道您談到了銷售、一般和行政費用 (SG&A)，但我只是想知道您的謹慎意識在哪裡？當我們展望下半年時，它是在利潤方面還是在收入方面？

Yeah. If you take the first half of -- the third quarter of this year, very little impact from margins, except in Jake's business, of course, on the branded merchandise side of this business, a lot of ad hoc orders there that we already price in the tariffs into every single order as they come up.

是的。如果你看一下今年上半年——第三季度，利潤率受到的影響很小，當然，除了傑克的業務，在這個業務的品牌商品方面，有很多臨時訂單，我們已經將關稅計入了每一份訂單的價格中。

But remember, we're keeping for the most part, six -- at least six months of inventory on the shelf. And so the impact to our -- most of our inventory is still sitting on the shelf at pre-tariff ranges. And -- but we'll start seeing some impact in the fourth quarter, although the fourth quarter is usually from the uniform side of the business is probably a slower quarter for us.

但請記住，我們大部分庫存都會保留至少六個月的庫存。因此，對我們的影響是——我們的大部分庫存仍然以關稅前的價格存放在貨架上。並且 - 但我們將在第四季度開始看到一些影響，儘管第四季度通常從業務的統一方面來看對我們來說可能是一個較慢的季度。

Most retailers are more focused on driving their sales in the fourth quarter and spending money on new uniforms. So I don't think tariffs are going to play a huge part in the second half of this year. We have raised prices to the extent we thought they would and kind of spread it out over the second half of the year. And we'll look at it again next year to see if we need to raise prices yet again. It's a very fluid situation. Generally, we have to give 90 days notice to most of our customers on raising prices.

大多數零售商更專注於推動第四季度的銷售並花錢購買新制服。因此我認為關稅不會在今年下半年發揮重要作用。我們已經將價格上調到了我們預想的水平，並將這一舉措分攤到下半年。明年我們會再次考慮是否需要再次提高價格。這是一個非常不穩定的情況。一般來說，我們必須提前 90 天通知大多數客戶漲價。

And we get to the end of this year, and we feel we need to do another price raise, we will.

到今年年底，我們覺得需要再次提價，我們會的。

Got you. And then in terms of the Call Centers, what would -- and maybe you may have said this, and I apologize, what was the impact from the solar company in terms of revenue? What was the revenue impact in the second quarter?

明白了。那麼就呼叫中心而言，也許您可能已經說過這​​一點，我很抱歉，太陽能公司對收入有何影響？第二季的營收影響如何？

The revenue impact in the second quarter was relatively small. We started to pull back on that particular customer. We'll be transitioning out of that customer over time. But the impact in Q2, the biggest impact was, again, the credit loss that we had to take on prior services. But we continue to service them post-petition, albeit at a smaller scale.

第二季度的營收影響相對較小。我們開始減少對那位特定客戶的關注。隨著時間的推移，我們將逐漸放棄該客戶。但第二季的影響，最大的影響還是我們必須承擔先前服務所帶來的信用損失。但我們在訴狀發出後仍繼續為他們提供服務，儘管規模較小。

So again, some impact, but not major. The impact will be felt more significantly from a revenue standpoint as we move forward.

所以，再次強調，這會產生一些影響，但影響不大。隨著我們不斷前進，從收入角度來看，這種影響將會更加顯著。

Can you kind of quantify what that revenue impact might be going forward? And it seems like just from your commentary, you anticipate maybe the third quarter still to be down maybe in the fourth quarter to be up given the pipeline that you have? Or maybe you can just clarify that.

您能否量化未來可能產生的收入影響？僅從您的評論來看，您是否預計第三季可能仍會下降，但考慮到您掌握的管道，第四季度可能會上升？或者也許你可以澄清一下。

I mean, I can't give specific on specific revenue by customer. But I would say that as we look at the Contact Center forecast for the balance of the year, certainly, there's a headwind, if you will, associated with the bankruptcy. But as Michael alluded to, the team is working to convert what's sitting in the pipeline as quickly as possible.

我的意思是，我無法具體說明每個客戶的特定收入。但我想說的是，當我們查看今年剩餘時間的聯絡中心預測時，肯定會發現與破產相關的阻力。但正如邁克爾所提到的，團隊正在努力盡快轉換正在進行的工作。

Again, a lot of that might -- will generate revenues next year, but there's also certainly the possibility that the conversion of that pipeline could offset some of that softness here in the third and partially in the fourth quarter.

再次，其中許多可能會在明年產生收入，但也肯定有可能該管道的轉換可以抵消第三季和第四季的部分疲軟。

Got you. All right. That's all I have. Thank you.

明白了。好的。這就是我所擁有的一切。謝謝。

That does conclude our time for questions. I'll now hand back to Michael Benstock for closing remarks.

我們的提問時間到此結束。現在我將把發言權交還給麥可·本斯托克，請他作最後發言。

Thank you, operator. We certainly appreciate everyone being on the call. I want to thank our loyal customers and our dedicated employees for delivering an improved performance this quarter. Despite the ever-changing macroeconomic and political conditions, we remain focused on what we can control and ultimately achieving our goal of delivering long-term growth across our three businesses.

謝謝您，接線生。我們非常感謝大家的參與。我要感謝我們忠實的客戶和敬業的員工，感謝他們本季的出色業績。儘管宏觀經濟和政治條件不斷變化，我們仍然專注於我們能夠控制的事情，並最終實現我們三大業務長期成長的目標。

We'll keep you updated as we move through the year, and please don't hesitate to reach out with any additional questions.

我們將在全年不斷向您通報最新進展，如果您有任何其他問題，請隨時與我們聯繫。

Thanks again for your interest in SGC, and enjoy the evening.

再次感謝您對 SGC 的關注，祝您度過愉快的夜晚。

Thank you, and that does conclude our conference for today. Thank you for participating. You may now disconnect.

謝謝大家，今天的會議到此結束。感謝您的參與。您現在可以斷開連線。