CORRECTION: SPAR Group Reports Results for the Third Quarter Ended September 30, 2021
~ 3Q Revenue Increased 15% Over Prior Year
~ Year-to-date Operating Income Increased 7%
~ Year-to-date Net Income Increased 95%
SPAR Group, Inc. (NASDAQ: SGRP), a leading global provider of merchandising and marketing services, today reported financial results for its third quarter ended September 30, 2021.
“With another quarter of double-digit revenue growth, we are building momentum. I am pleased with the progress we are making and the response from our clients, some of the most exciting companies in the world. Despite the continued labor market pressures and slow pace of economic recovery in select international markets, we are driving top and bottom line results,” stated
Third Quarter Results
Consolidated net revenue was
Gross Profit was
Selling, General and Administrative expenses were 14.0% of revenue versus 13.8% during the prior year’s third quarter.
Operating Income decreased 19.9% to
Net Income attributable to SPAR Group increased by 3.1% to
Balance Sheet as of
Financial Results by Geography (in 000's, except per share data)
|Three Months Ended
||%|| Nine Months Ended
|Three Months Ended
||%||Nine Months Ended
|Net income||Three Months Ended
||Nine Months Ended
|Earnings Per Basic and Diluted Share:|
About SPAR Group
SPAR Group is a global merchandising and marketing services company, providing a broad range of services to retailers, manufacturers and distributors around the world. With more than 50 years of experience, 25,000+ merchandising specialists around the world, an average of 200,000+ store visits a week and long-term relationships with some of the world’s leading manufacturers and retail businesses.
For more information, please visit the SPAR Group's website at http://www.sparinc.com.
This Press Release contains, and the above referenced recorded comments, will contain "forward-looking statements" within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, made by, or respecting, SPAR Group, Inc. ("SGRP") and its subsidiaries (together with SGRP, “SPAR”, "
The forward-looking statements made by the Company in this Press Release may include (without limitation) any expectations, guidance or other information respecting the pursuit or achievement of the Company's corporate strategic objectives, building upon the Company's momentum and strong foundation, leveraging compatible opportunities, growing the Company’s client base, products and market position, and continuing to strengthen the Company’s balance sheet, revenues and profitability. The Company's forward-looking statements also include, in particular and without limitation, those made in "Business", "Risk Factors", "Legal Proceedings", and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Annual Report. You can identify forward-looking statements in such information by the Company's use of terms such as "may", "will", "expect", "intend", "believe", "estimate", "anticipate", "continue", "plan", "project" or similar words or variations or negatives of those words.
You should carefully consider (and not place undue reliance on) the Company's forward-looking statements, risk factors and the other risks, cautions and information made, contained or noted in or incorporated by reference into this Press Release, the Annual Report, the Proxy Statement and the other applicable SEC Reports that could cause the Company's actual performance or condition (including its assets, business, clients, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, performance, prospects, sales, strategies, taxation or other achievement, results, risks, trends or condition) to differ materially from the performance or condition planned, intended, anticipated, estimated or otherwise expected by the Company (collectively, "expectations") and described in the information in the Company's forward-looking and other statements, whether express or implied. Although the Company believes them to be reasonable, those expectations involve known and unknown risks, uncertainties and other unpredictable factors (many of which are beyond the Company's control) that could cause those expectations to fail to occur or be realized or such actual performance or condition to be materially and adversely different from the Company's expectations. In addition, new risks and uncertainties arise from time to time, and it is impossible for the Company to predict these matters or how they may arise or affect the Company. Accordingly, the Company cannot assure you that its expectations will be achieved in whole or in part, that the Company has identified all potential risks, or that the Company can successfully avoid or mitigate such risks in whole or in part, any of which could be significant and materially adverse to the Company and the value of your investment in SGRP's Common Stock.
You should also carefully review the risk factors described in the Annual Report (See Item 1A – Risk Factors) and any other risks, cautions or information made, contained or noted in or incorporated by reference into the Annual Report, the Proxy Statement or other applicable SEC Report. All forward-looking and other statements or information attributable to the Company or persons acting on its behalf are expressly subject to and qualified by all such risk factors and other risks, cautions and information.
The Company does not intend or promise, and the Company expressly disclaims any obligation, to publicly update or revise any forward-looking statements, risk factors or other risks, cautions or information (in whole or in part), whether as a result of new information, risks or uncertainties, future events or recognition or otherwise, except as and to the extent required by applicable law.
Consolidated Statements of Income and Comprehensive Income (loss)
(In thousands, except share and per share data)
|Three Months Ended||Nine Months Ended|
|Cost of revenues||54,813||46,849||158,821||137,478|
|Selling, general and administrative expense||9,426||8,145||28,020||25,287|
|Depreciation and amortization||509||530||1,573||1,609|
|Other (income), net||(137)||(143||)||(208)||(201||)|
|Income before income tax expense||2,688||3,315||7,088||6,502|
|Income tax expense||549||870||2,036||1,830|
|Net (income) attributable to non-controlling interest||(959||)||(1,301||)||(2,441||)||(3,335||)|
|Net income attributable to
|Basic and diluted income per common share:||$||0.06||$||0.05||$||0.12||$||0.06|
|Weighted average common shares – basic||21,295||21,110||21,248||21,108|
|Weighted average common shares – diluted||21,589||21,147||21,592||21,152|
|Other comprehensive income (loss):|
|Foreign currency translation adjustments||$||(1,352||)||71||(2,696||)||(3,908||)|
|Comprehensive loss (income) attributable to non-controlling interest||(311)||(1,326||)||(423||)||(871||)|
|Comprehensive income (loss) attributable to
Consolidated Balance Sheets
(In thousands, except share and per share data)
|Cash and cash equivalents||$||15,300||$||15,972|
|Accounts receivable, net||59,234||46,914|
|Prepaid expenses and other current assets||5,320||3,631|
|Total current assets||79,854||66,517|
|Property and equipment, net||3,043||2,795|
|Operating lease right-of-use assets||2,114||2,900|
|Intangible assets, net||2,430||2,255|
|Deferred income taxes||4,162||4,201|
|Liabilities and equity|
|Accrued expenses and other current liabilities||22,369||18,745|
|Due to affiliates||3,716||3,775|
|Customer incentives and deposits||3,306||1,799|
|Lines of credit and short-term loans||13,828||9,329|
|Current portion of operating lease liabilities||1,048||1,398|
|Total current liabilities||54,423||42,905|
|Operating lease liabilities, less current portion||1,066||1,502|
|Long-term debt and other liabilities||1,000||1,000|
|Commitments and contingencies – See Note 8|
|Additional paid-in capital||17,025||16,645|
|Accumulated other comprehensive loss||(4,591||)||(3,913||)|
|Total liabilities and equity||$||97,711||$||84,029|