Superior Group of Companies, Inc. (NASDAQ:SGC) Q4 2022 Earnings Call Transcript

Michael Benstock: Good question. Most of the salespeople that we recruit come from the industry, come to us with a book of business, or at least most of their book of business and are mostly commissioned salespeople. So, our cost to bring them on, we have to onboard them. Of course, we give them some support from our office in India primarily, which is a very low-cost support, and support that they hadn’t had at all at their previous employer usually. And generally, we get about 18 months in their entire book of business transfers over to us. So, it’s on an escalating basis, but it does vary by salesperson, Kevin. I mean some people come to us with $1 million book of business and immediately within a couple of months, we are writing on an annualized basis that much business.

And some people come to us with $1 million book of business and it takes us six months to start tracking half that in 18 months our expectation is we brought at least all of that over. I mean, the ultimate reason why these people come to work for us is because they think they can — and we have proven that, by aligning themselves with us, they can actually grow their book of business significantly more than they can at their current employer. So, somebody who might come to us with $1 million book of business what we are hoping and what we are working towards is, getting them to a $2 million book of business within an 18 to 24-month period of time.

Kevin Steinke: All right. That’s helpful. And then lastly, the direct-to-consumer website launch targeted for the second quarter within Healthcare Apparel. Can you just talk a little bit more about expectations for that, the strategy and how quickly you are assuming that could — that can kind of ramp?

Michael Benstock: It’s going to be a very slow ramp. You go out first, it’s a site that we will tweak and have to gain a lot of knowledge from the analytics we get from that side on who’s buying and who’s clicking, and how we incentivize people to sign up at the site for products and so on. So, it’s a slow ramp. We are not projecting much in the way of revenue in 2023. What we want to do in 2023 is just build awareness for our product among those who are already loyal to our product building a higher level of loyalty, so that we can bring in all their friends and other caregiver associates onto the site to escalate our growth. But this is a year to really build awareness and 2024 is the first year, where we believe that we will see some meaningful impact to our sales.

Kevin Steinke: Okay. That’s helpful insight. I appreciate it. That’s all I had. Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Michael Benstock for any closing remarks. Please go ahead, sir.

Michael Benstock: Thank you all for all the great questions. Good to have a feel beyond here and asking questions from different directions, we certainly appreciate it. I want to thank you all for joining us. But before I end the call, I like to extend a special note of gratitude to someone who’s contributed tremendously to the SGC over a long period of time. And the demand, as we announced last year is heading into retirement after 25. Very productive years with STC since joining us in 1998, as our CFO and more recently our CEO, he was here through a period of unprecedented expansion, diversification and change, and has been a tremendously valuable business partner. It’s been a true pleasure to work with AMD. And we’re incredibly pleased that he’s continuing to serve on our board of directors, which means we’ll continue to benefit from his experience and valuable perspective.