Unknown Speaker
Operator: Good morning, and welcome to the Superior Group of Companies' Second Quarter 2026 Conference Call. With us today are Michael Benstock, Chief Executive Officer; and Mike Koempel, President and Chief Financial Officer. In addition, Jake Himelstein, President of the company's Branded Products segment, will join today's Q&A session. As a reminder, this conference call is being recorded. 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. 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, except as required by law. And now I'll turn the call over to Michael Benstock.
Michael Benstock: Thank you, operator, and thanks, everyone, for joining us. We are proud to have delivered a strong quarter with consolidated revenue up 3% year-over-year, a 160 basis point improvement in SG&A, EBITDA up 27% to $7.7 million and adjusted diluted EPS of $0.21, more than doubling the second quarter of 2025. Excluding the noncash trade name impairment that Mike will discuss and reflects the progress we're making on mix margin and earnings power, our results highlight the benefit of our diversified business as we continue to navigate a choppy demand environment. Our outlook remains favorable given our long-standing and solid customer relationships, the strength of their brands and our ability to support them with advanced technology, a flexible supply chain and stellar service. Turning to our segments. I'll start with Branded Products, our largest business. Revenue grew 6% year-over-year, driven primarily by higher volumes with existing customers. We drove gross margin expansion along with SG&A improvement as a percent of sales. Taken together, this led to a 25% increase in Branded Products EBITDA. As we look ahead, we believe our growing backlog and ongoing investments in sales talent, marketing and technology will drive continued long-term growth. Our …
