Good afternoon, everyone, and welcome to the Superior Group of Companies' third quarter 2023 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. This call may contain forward-looking statements regarding how 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. 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. 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. 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 contained herein, except as required by law. Now, I'll turn the call over to Mr. Michael Benstock. Thank you, operator, and thanks everyone for joining us today. I'll start by highlighting our consolidated third quarter results, along with a discussion around our strategies that are setting us up for continued growth and margin expansion. I'll walk through each of our segments and what we're doing to even more profitably grow each of our businesses. And then I'll turn it over to Mike to provide additional detail on our quarterly results, as well as our updated full year outlook. We'll then open the call for Q&A. Earlier in the year, we discussed the back-end weighted nature of our financial performance this year, and as expected, our third quarter results were the strongest of the year so far, reflecting sequential improvement across the business. We generated consolidated third quarter revenues of $136 million, down only 2% year-over-year, which was a significant improvement over the second quarter's 13% year-over-year decline and up 5% from the second quarter. Our third quarter consolidated Adjusted EBITDA of $9.3 million is the highest quarterly result year to date, down just slightly compared to the prior year's $9.7 million, but up $1.8 million from the second quarter. Lastly, Diluted EPS of $0.19 was down from Adjusted EPS of $0.27 a year earlier, excluding last year's impairment charge, but up $0.11 sequentially from the second quarter. The effect of economic conditions on our business differs customer by customer, market by market, and segment by segment. We see conditions slowly improving as clients are starting to buy more, rebrand more, and issue more RFPs than past periods. Again, it is really on a customer by customer, market by market basis. While we're feeling optimistic about the long-term outlook, our success will be determined by our team's remaining focus on what we can control. This includes continuing to drive positive cash flow and further strengthening our balance sheet, while also increasing our investments to support longer term growth when conditions normalize. Adhering to this focus, year to date, we were able to generate operating cash flow of $59 million through continued reductions in working capital and lower capital expenditures. We ended September with an improved net leverage ratio of 2.9 times covenant EBITDA, a full turn better than at the start of the year, after significantly reducing our net debt by $48 million year to date. Let's turn now to our three businesses. Our Healthcare Apparel segment, primarily consisting of the Wink and Fashion Seal Healthcare brands, produced its highest quarterly revenues of the year at $30 million for the third quarter, essentially flat year-over-year and up from $28 million in the second quarter. Adjusted EBITDA of $3.1 million was up from $2.2 million year-over-year and up from $1.9 million in the second quarter. The healthcare apparel market remains soft, but inventory equilibrium is getting closer for SGC and we believe for the broader industry. This remains a large and growing addressable market. We intend to expand our market share well beyond the 2 million+ caregivers who already wear our brands every day. Back in the spring, we launched our direct-to-consumer website and went through an entire rebranding featuring our Wink product line, and it continues to perform above initial expectations. This new D2C channel is creating both higher consumer awareness and deeper engagement with our brand. We also launched earlier this year, our B2B website, which is now helping wholesale accounts more efficiently engage with us. Overall, we see the improvement in our year-over-year growth rates continuing in the fourth quarter, and we're optimistic about the longer-term outlook. Turning to Branded Products, which is our largest segment, we're seeing the back-end weighted nature of the year playing out, along with stronger profitability as our supply chain costs have normalized. We produced third quarter revenues of $84 million. While down from $87 million in the prior year, the third quarter result represents our highest quarterly revenues of the year, and it's up from $80 million in the second quarter. Our Adjusted EBITDA of $7 million was up from $5.6 million year-over-year and about flat for the second quarter. We've seen an upward demand trend now for over five months and have no reason to believe this won't continue. So while the growth in this segment appears subdued,... Our pipeline and booking trends look very, very favorable, particularly with respect to the first part of next year. While this segment is generally related to HR and marketing spend and has surely been impacted by the ongoing macro environment, our confidence is bolstered by what we have consistently seen over the past months. I should mention that similar to our other business lines, our client retention remains strong, truly indicating it's a matter of seeing stronger economic conditions for us to further accelerate our growth potential. In the meantime, within Branded Products, we're focused on managing expenses and further expanding our margins, such that we'll be ready to fully capitalize on even stronger demand ahead. Longer term, our aim is to significantly grow our Branded Products market share, now at less than 2% of this very, very large $26 billion market. Our third segment to review is Contact Centers, which continues to generate our highest EBITDA margins as we push towards the high teens goal that we mentioned on our prior earnings call. Our third quarter revenues of $24 million were up approximately $1 million, both year-over-year and from the second quarter, and represent the highest revenue quarter in The Office Gurus history. Our third quarter Adjusted EBITDA was $4.1 million, down from $5 million year-over-year, but up from $3.3 million in the second quarter. While we've incurred higher costs related to labor and talent, we're continuing to increase prices whenever possible, and employ technology to create more efficiency, as reflected by our higher gross margin for Contact Centers, which expanded nearly 2 percentage points from the second quarter to 55.5%. As a result, the third quarter EBITDA margin sequentially improved to 16.8% from 14.3% in the second quarter. Overall, we continue to add to our pipeline of new business for The Office Gurus, and we see compelling longer-term opportunities to grow this segment at attractive margins. With that, I'll turn it over to Mike for a closer look at our financial performance and our updated outlook for the year before we take your questions. Mike? Thank you, Michael, and thanks everyone for joining the call. Our third quarter results were the strongest so far in 2023, reflecting the back-end weighted pattern we described earlier in the year. Our quarterly revenue reached $136 million, up about $7 million from the second quarter, and importantly, we recorded stronger margins as well. Our gross margin came in at 39.1%, which is up 260 basis points versus a year ago and up 220 basis points from the second quarter. The margin expansion from last year was primarily led by our Branded Products business segment, which drove a 450 basis point improvement due to favorable pricing and customer mix and lower supply chain costs. Our third quarter SG&A costs of $47 million were up $3.4 million from last year, an increase as a percent of sales to 34.7% for the quarter, compared to 31.6% for the third quarter of 2022. The increase in SG&A was driven by a $1.8 million fair value benefit on written put options in the third quarter of 2022, combined with current quarter increases in acquisition-related earnout liabilities, bad debt expense, and professional fees. Our interest expense for the third quarter was $2.5 million, up from $1.8 million in the prior year quarter due to higher interest rates. Interest expense did improve slightly from the second quarter, reflecting lower debt outstanding, as I'll discuss in a moment. Third quarter net income of $3.1 million, or $0.19 per diluted share, compared to the prior year quarter's net loss of $12.7 million, or $0.80 per share. In the prior year third quarter, the company recognized pre-tax, non-cash impairment charges related to goodwill of $21.5 million, or $17.1 million net of tax, or $1.07 per diluted share. On an adjusted basis, which excludes impairment charges made in the prior year third quarter, this quarter's net income of $3.1 million, or $0.19 per diluted share, was down from $4.4 million, or $0.27 per diluted share in the prior year, but up significantly from $1.2 million, or $0.08 per diluted share in the second quarter. Turning to our balance sheet, we continue to make meaningful improvements. We continue to drive significant free cash flow, enabling an additional $19 million reduction in our debt outstanding during the quarter, while maintaining our cash and cash equivalents balance of $18 million, about flat with the start of the year. Since the beginning of the year, our focus on reducing working capital and generating strong operating cash flow has resulted in $59 million of operating cash flow, as Michael mentioned. Therefore, as of September thirtieth, our total outstanding debt of $108 million improved from $156 million at the start of the year, representing a 30% reduction. Wrapping up on the balance sheet, our net leverage ratio ended the quarter at 2.9 times, trailing 12-month Covenant EBITDA, much improved from the net leverage ratio at the beginning of the year of 3.9 times. I'll conclude with our updated full-year outlook, which, as we've indicated throughout the year, remains back-end loaded. We expect a full-year revenue range of $538 million-$545 million, relative to the earlier range of $550 million-$560 million. ... which continues to reflect back half improvement, albeit at a lower growth rate. However, for earnings per diluted share, we're tightening our outlook range to $0.46-$0.53 relative to the prior range of $0.45-$0.55, reflecting continued sequential improvement from the first half of the year. For healthcare apparel, we expect to finish 2023 with low single-digit sales growth for the year, as inventory levels and customer demand begin to normalize. For branded products, while we look to finish the year stronger with sequential sales improvement in the fourth quarter, we expect a low-teens sales decline for the total year, primarily driven by the first and second quarter results. Lastly, for contact centers, we expect to achieve full year sales growth in the high single digits. With that, operator, we can now begin the question and answer session, if you would please open the lines. We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys, and to withdraw your question, you may press star then two. At this time, we will pause just momentarily to assemble our roster. Our first question here will come from Kevin Steinke with Barrington Research. Please go ahead. Good afternoon. Hi, Kevin. Congratulations on the sequentially improved results. Just, you know, as we look to the full year outlook, you adjusted the revenue range a bit. So just, you know, wondering, you know, this still again represents a stronger sequential quarter. You mentioned the upward demand trend in branded products, although I guess the outlook came down just a bit. So, you know, I don't know. I'm just trying to put my finger on, you know, maybe what changed relative, you know, to your last outlook, as this quarter progressed. Sure, Kevin, this is Mike. I'll take that question. You know, as you said, we obviously pulled the sales guidance down a little bit. It still reflects continued growth in the fourth quarter, you know, within that range. Within Branded Products, as we said in our prepared remarks, they had demonstrated growth in the third quarter. We expect to see that growth, you know, continue into the fourth quarter. I think part of what plays into the range, particularly in Branded Products, we have a fair amount of volume in the back half of December, which we plan to deliver on, but could create some variability in the fourth quarter. And then as it relates to our contract business, we're also, as we manage our cash flow and manage inventory tightly, we're managing the build of our contract assets, which ultimately turns into revenue as well. So as we've been tightening more on the working capital front, that's also had a little bit of a pullback on revenues. But again, I think as we look to the fourth quarter, we still see growth in the business. Again, as I said, albeit at a slightly lower rate than we originally expecting, but again, still anticipate that growth coming in the fourth quarter. Okay, good. Thank you. And, you know, touching on healthcare apparel, you mentioned there the market still remains a bit soft, but, you did, you did have some, pretty good sequential growth there in that segment. And, I believe you mentioned that the market appears to be approaching inventory equilibrium. Do you think, you know, end of 2023 is still the way to think about the inventory coming back into balance? You know, maybe it's harder to read into the overall market, but just, for you internally, how are things trending on the inventory side? Kevin, from an internal standpoint, we are trending toward our goal by the end of the year. You know, we see. You could see in the aggregate, our inventories across the peer group were down about $20 million from the beginning of the year. And that would obviously include our healthcare inventories coming down. So you know, we're happy with the progress we've been making. We've got a little bit yet to go here in the fourth quarter. And again, our intent is to end the year in a much cleaner position than we did last year and entering 2024 in a way that we can really focus most of our energy forward, rather than looking to you know, reduce inventories and liquidate inventories. I think we're seeing, you know, the market in general improve to some extent. But I can only, you know, at this point, speak for ourselves. And again, we're satisfied with the progress we've made and feel good about where we'll end the year from a healthcare perspective. Okay, thank you. Also, following up on healthcare apparel, you mentioned the B2C e-commerce initiative continuing to trend well ahead of expectations. You know, maybe just any update on the outlook there, and it starts becoming a more meaningful part of the business and potential growth in 2024 and beyond. Hey, Kevin, this is Michael. Good question. We're excited about the progress we've made, even when, when you take it one step further and say the broader digital market, which includes all those wholesale customers that we sell online as well, like Amazon.com, Walmart.com, and Target.com, and so on. It's obviously inclusive of both the direct-to-consumer and the B2B channels. We're very, very excited about the whole, what's happening to us digitally. More people are buying online than ever, and while store traffic is still down, and, and, certainly the smaller retailers are, are struggling more than the, than the larger retailers. Our, our emphasis on, on, at least on the investments we've made in our digital capabilities, certainly, has paid off somewhat this year. Will continue to pay off in 2024 as we spend more on marketing and branding, and, you know, to realize the full potential for 2024. We're learning as we go. We're testing and learning. We're gathering key customer insights. You know, our goal is to better inform our strategy, to spend more carefully and more in a more targeted manner. We see this channel becoming a larger portion of our business over time. Will it be significant enough in 2024 that we'll start reporting on it separately or giving more color separately? I don't think so. You know, I believe that there's competitive advantage to not doing so at this point, as we're trying to grow it, and we're testing out different strategies. I would hope, in the following years, it will be enough of a portion of our business that it would be meaningful to speak about. Okay. Thank you. And then a couple more here. Yeah, the nice gross margin expansion that you had, both year-over-year and sequentially, driven by branded products. You mentioned supply chain normalizing, I think some favorable mix, but just trying to get a sense as to how sustainable these higher levels are, or if you anticipate, you know, some quarter-to-quarter variability. I know that can just kind of vary based on, you know, customer mix. But just any thoughts on the margin, gross margin profile going forward? Sure, Kevin, as you said, there will be some variability in the margin mix, particularly in branded products where we're really pricing on an order-by-order basis. We're obviously very happy with the margin that we had in the third quarter, just given the mix of orders that we had in the branded product space, combined with we're starting to see some of the, what I would call, lower supply chain cost inventory now coming through the system, particularly in that segment. So obviously, as we look ahead, we expect the fourth quarter margins to still be up to last year. Probably a little bit more consistent with the first part of the year than I would say the third quarter. You know, that we'll monitor the fourth quarter as, as we talked about on the healthcare side, as we work toward hitting the end of the end-of-year inventory target, may determine how, how more or less promotional we might need to be in the fourth quarter. That kind of plays into the range of guidance that we've given. But we, we still expect good margins. Again, as I said, probably more consistent with the first half of the year than I would say the third quarter margin. Okay. Great. Thanks for the color. And just lastly, just looking at the selling and administrative expense line, a sequential increase there on an absolute basis. Looks like that was driven by branded products. Just wondering if there's anything to call out there in terms of the increase in the expense base, and, you know, if there's something more non-recurring in there or some investments, or perhaps just trying to get some color on what's going on there and what it might look like going forward. Sure. In the case of branded products, a big portion of the increase really related to commission. So in the branded products business, the commission is based on margin. So given the improvement in margin and the growth in margin, you know, despite sales being down single digit, really drove an increase in commission expense and therefore a larger piece of SG&A for the third quarter. Okay, thanks, for taking the questions. I'll jump back in the queue. Our next question will come from Jim Sidoti with Sidoti & Company. Please go ahead. Hi, good morning, and sorry, good afternoon, and thanks for taking the questions. Just to follow up on the SG&A question, can you talk about headcount? Did you add salespeople in the third quarter, and do you plan to add any more in the fourth quarter? Are you speaking about a particular segment, or are you speaking about overall for all SGC? I guess primarily for branded products. Branded Products, we have added people. We will continue to add people. You know, it's one of our, it's one of our, revenue-growing strategies. It's right up there with, with the best of them, including, you know, other sales strategies that we have, Jim, including some inside sales, strategies to, to, try to go after, smaller accounts, appointment setters, all kinds of things that we're doing right now differently than we've done before. But, it is our intention to continue to grow Branded Products, so, we're gonna have to have, more muscle behind us to do it, and it's gonna take more people to do it. We're recruiting actively, and even added some talent to our recruiting pool, to help recruit, more people faster. Right. And then, with regard to capital allocation, I mean, you did a great job generating cash and paying off debt in the third quarter. Should we see a similar trend in the fourth quarter, or are there opportunities out there, you know, inorganic opportunities that you might pull the trigger on? For the balance of the year, Jim, we're gonna remain focused, on, you know, working capital. There's. I would say, you can tell from the first nine months, we drove significant improvement. I think obviously our working capital is starting to normalize, so I would not anticipate a similar result in Q4. But with that said, we're gonna remain focused on that for the balance of the year. As Michael and I have said previously, we really are targeting a net leverage ratio in the range of two to -2.5 times. So we're obviously getting closer, and so that's our focus here through the balance of the year. And then obviously, we'll begin to, you know, continue to look at our allocation priorities going forward once we achieve that net leverage objective. All right. Then, you know, you look at your three businesses, you seem to have pretty definite growth drivers in all three businesses. You have different drivers in the different businesses. But, you know, out of the three businesses, which one do you think are you most you feeling best about at this point in this current environment? Ah! That's a hard question 'cause I'm feeling pretty good about all of them. It's like asking me which kid I love more. But look, you know, long term, you know, I believe healthcare has tremendous potential. And it's one of the smallest of our businesses, and you know, it's right there in the middle, but you know, it has two segments, a wholesale and a retail, and now a consumer segment portion to it. But if you look at the growth of healthcare workers in the coming years, you look at the fact that it's not as price sensitive a business. Most of it isn't. The wholesale side is, but the retail side is not. You look at our capability to grow direct to consumer in the coming years, and, you know, the continued shortage of healthcare workers is going to have to be filled at one point, or we're all gonna get old and not have anybody to take care of us. So, you know, the schools are going to have to fill that gap, whether it's through the schools or through immigration or wherever they solve it. And that will bring millions of more healthcare workers into the workforce. So I'm feeling great about that, but, you know, it's. I would say that our call center business is basically in its infancy, if you want to know the truth. I mean, we're a small call center business doing, you know, right now, under $100 million, that has great opportunity, you know, and it, it provides great free cash flow for us to invest more in it, as time goes on. And, we've invested greatly in, in new strategies. We put on our first sales, executive, this year, putting on a second one, building out a sales team around that. First marketing dollars we've really ever spent will be, you know, this year and, and more so into next year, and, not, not be so reliant on others to bring us business. We've never, we've never actually had a sales force. So we've grown business from zero to $80 million without a sales force. And, you know, what Jake's done and Phil had done prior to him in branded products was no short of amazing, to take a business that was doing $32 million seven years ago. That's, you know, doing... If you just take the merchandise side of that, over $250 million a year. So, why should I not be equally as excited about all these three businesses? So I didn't answer your question, because I don't want any of my children to be angry at me after this call. But, I'm excited about it. I think we're in three great businesses that we do not have enough market share in, and I don't think it's going to be that hard to take market share away from our competition in the coming years with all that we're doing internally to make our business stronger. All right. All right, well, thank you. Our next question will come from David Marsh with Singular Research. Please go ahead. Thank you, guys, for taking the questions. Hey, first, I wanted to touch on the GAAP income tax expense in the quarter, which was extremely low as a percentage of, you know, continuing income from continuing ops. Could you just touch on that and give us some idea of what to expect in the next quarter and in the coming year? Were there some, you know, were there some tax loss carryforwards that benefited you in the quarter and that will continue to benefit you as you roll forward? Yeah, Dave, it's really, you know, in the quarter and so far this year, it's really been the mix of our profit, domestic versus international. And obviously, we have a large amount of profit through our contact center business in Central America. So that, you know, we benefit from that mix, which is driven a lower rate this year, you know, in the, what I'll call, high single digits, that we would expect that to be, you know, the case through the balance of the year. And then, obviously, next year, as we look to plan next year, we'll relook, obviously, at the mix of where, you know, again, our profit is from a foreign and domestic perspective. But that's really, that's really been the driver of the rate this year. We haven't had this year as many discrete items as we did last year, which drove the rate higher last year, again, due to the discrete nature of what we had. But at this point, it's really a reflection of our foreign versus domestic profit. Got it. Thank you. And then secondly, just with regard to the call center business, I know in the last quarterly call, you had talked about maybe some customers that, you know, hadn't refreshed at quite as high levels, but obviously some nice sequential growth this quarter. Just trying to, you know, kind of parse through the guidance for the year that you gave. You know, I'm trying to figure out, are we, you know, are, are you guys thinking, you know, sequentially kind of flat-ish for the fourth quarter? And could you just talk, I guess, more generally about, you know, how your renewals have been, in the third quarter, maybe versus the second quarter and maybe the beginning of the fourth quarter, versus the second quarter? Have you seen improvement there? Just kind of general, you know, overall tone of the segment. We are seeing some improvement. I spoke about it last quarter, the fact that to date, we have lost a few hundred; through the end of June, we have lost a few hundred, 300 and some odd seats of existing customers who had just scaled back because of the macro environment. And they have not since, you know, grown the number of seats that we have with them. But we have replaced all of those, and we spoke about that again last quarter. They had all been replaced by new seats, and we continue to put on new seats. We're putting on new seats at a clip that we haven't done before. But again, we're still trying to—we've got that deficit of 300-some-odd seats that we're fighting against all year in the comps. The good news is, we're working on, you know, more larger opportunities than we've ever worked on. We put on, you know, as more customers than we've ever put on. Quite frankly, you know, we're working on more opportunities than that, when realized, will bring us, you know, greater degrees of revenue in future periods. We continue to put on seats in the month of November, and we'll put on a few in the month of December. December is not traditionally a period where, you know, we put on a lot of seats. Everybody kind of holds back and says how they want to get going in January. But, the quarter should turn out well, and our guidance with respect to that quarter, I'll let Mike, Mike speak to that, with respect to the call centers, on where we're headed with that. Sure. Yeah, I mean, we expect to continue to see growth in that segment in the fourth quarter. I think as we touched on, there's been sequential growth throughout the year, certainly from an EBITDA perspective, given that we started at a pretty low point in the first quarter with some of the cost increases and being a little late in terms of increasing pricing. But the pipeline is strong as we've had before. We're onboarding more new customers, and it's looking, you know, strong for the first quarter. So we feel, again, like the contact center business is picking up momentum throughout the year and into 2024. Great. That's really very helpful. And then just lastly for me, with regard to free cash flow, I mean, fantastic job on debt repayment year to date. Would we expect that there would be some a little bit more sequential debt repayment in the fourth quarter? Or do you start to kind of fight against some working cap trends a little bit? I mean, I guess just, you know, if you could just kind of give us a holistic picture of, you know, what fourth quarter free cash flow looks like and where it's going. Yeah, as I mentioned, I think we've made a lot of progress, I think, through for the first nine months. So I would expect here in the fourth quarter things to normalize a bit. And of course, as we look to the level of volumes in Q1, depending upon our inventory levels, you know, we may need to start making, you know, some investments as we plan for Q1, depending upon what those revenue levels look like. So I would say, Dave, in Q4, we would still look where there's opportunity with free cash flow, still look to, again, continue to bring the debt levels down, to get toward that targeted ratio we're looking for, but certainly not at the level that we've been generating over the last three quarters. You know, if you look at our... If you had a chance to look at our cash flow statement, you know, we've already brought inventories down pretty significantly so far this year. Receivables have been coming down, so I think we've made a lot of progress there, where, again, there's still some opportunity there, but not to the extent that we've seen over the first three quarters. Right. Right. That makes a lot of sense. Well, thank you guys very much for taking questions, and, and congrats on the quarter. Thank you. And this concludes- All right, everybody- Our question and answer session. I'd like to turn the conference back over to Michael Benstock for any closing remarks. Okay, thank you, operator. I jumped the gun on there a little bit. I want to thank everybody for joining our call. We're looking forward to finishing the year strong. Our intention is to continually grow SGC's market share across all of our three attractive markets and to do so profitably. The ultimate goal, obviously, is further enhancing shareholder value. We're confident that we can do so even during uncertain times. We look forward to updating you on our full year results, and please don't hesitate to reach out with any questions before then. Enjoy the evening, and thanks again.