Counselor Top 40 distributor BAMKO (asi/131431) engineered year-over-year revenue and earnings increases in 2024 even though sales and earnings declined on an annual basis in the fourth quarter.

The Los Angeles-headquartered distributor, which operates through a remote workforce, reported March 11 that full-year sales increased 3.1% in 2024 compared to 2023, reaching $353.31 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) tallied nearly $36.3 million in 2024, up 9.5%.

“Overall, we are pleased with BAMKO's 2024 results,” company President Jake Himelstein, a member of Counselor’s Power 50 list of promo’s most influential people, told ASI Media. “We have been able to leverage our supply chain and operating expense structure to drive more profitability to the bottom line.”

Nonetheless, BAMKO’s sales declined in the fourth quarter of 2024 compared to Q4 2023, dropping 5.45% to about $92.4 million. EBITDA went backwards, too, falling 24% year over year in 2024’s Q4 to about $8.88 million.

Himelstein told ASI Media that the firm believes better days are ahead.

“We are investing in sales leadership to expand our share of wallet with existing customers, as well as to add new customers at a faster pace,” Himelstein stated. “Our expanding market share should result in stronger growth over time, especially once economic uncertainty lifts.”

“Overall, we are pleased with BAMKO's 2024 results. We have been able to leverage our supply chain and operating expense structure to drive more profitability to the bottom line.” Jake Himelstein, BAMKO (asi/131431)

Promotional products distributors in general ended 2024 with more of a whimper than a bang. The Distributor Quarterly Sales Survey from ASI Research showed that growth in Q4 clocked in at a relatively anemic 1.4% compared to the prior year’s fourth quarter. Still, distributors overcame myriad challenges to collectively increase North American promo sales by 1.8% in 2024 compared to 2023. The $26.6 billion in total annual distributor sales was a new industry record, ASI Research showed.

Superior Group of Companies (SGC), BAMKO’s parent company, also operates healthcare apparel and contact center businesses. The firm reported March 11 that across all its business segments – BAMKO and the others included – sales rose about 4% to nearly $565.68 million. After-tax net income for the year increased 36% to $12 million, translating to basic earnings per share of $0.75 and diluted earnings per share of $0.73.

The fourth quarter was a tough one, though. SGC’s overall net sales declined to about $145.4 million compared to Q4 2023 net sales of $147.2 million. Pretax income retreated to $2.5 million, down from $4.2 million in the comparative 2023 period. Net income went the wrong way, too, coming in at $2.1 million ($0.13 per diluted share) in Q4 2024 compared to $3.6 million ($0.22 per diluted share) during the previous year’s fourth quarter.

ICYMI: Nice work, #promoproducts distributors. In the face of all the headwinds the industry faced last year, this is quite an achievement. And optimism is on the rise for 2025 ~ !https://t.co/zd11IvSJag

— Chris Ruvo (@ChrisR_ASI) January 27, 2025

Still, SGC is predicting that revenue for full-year 2025 will rise in the $20 million to $30 million dollar range compared to 2024, tallying between $585 million and $595 million. The firm forecasts full-year earnings per diluted share to be between $0.75 and $0.82, up from $0.73 in 2024.

SGC’s board of directors has approved a new stock repurchase plan that authorizes the repurchase of up to an additional $17.5 million worth of its common stock. The company has also entered into a second amendment to its credit agreement with lenders that effectively enables SGC to make restricted payments in an amount not to exceed $30 million in any fiscal year, up from $20 million previously. This increase “will allow the company greater flexibility in paying dividends and funding share repurchases,” SGC said.

“While market conditions continue to reflect customer uncertainty, our team is demonstrating resilience and adaptability, and we are committed to tackling what we can control,” said SGC CEO Michael Benstock. “Specifically, we are focused on cost management, operational efficiencies, customer experience and driving innovation. When conditions turn, we see tremendous opportunities for growth and market share opportunities across our three attractive end markets.”

Based on reported 2023 North American promotional product revenue of $342.7 million, BAMKO ranked eighth on Counselor’s most recent list of the largest distributors in the industry.