TARRYTOWN, NY -- (MARKET WIRE) -- 02/14/12 --
SPAR Group, Inc. (NASDAQ: SGRP) (the "Company" or "SPAR Group"), a leading supplier of retail merchandising and other marketing services throughout the United States and internationally, today announced revenue guidance of $72 Million for the fiscal year 2011. This would represent an increase in revenue of $9 million or 14%, compared to the same period in 2010.
"Management is pleased with the Company's anticipated double digit growth for the 2011 fiscal year," stated Gary Raymond, Chief Executive Officer of SPAR Group. "We are confident that SPAR Group will grow even more aggressively throughout 2012 due to the increased capabilities of our international division and our current pipeline of new contracts. The international subsidiaries we established in 2011 are expected to significantly augment our business and increase revenue starting in the first quarter of 2012. Our strategy of identifying opportunities that will deepen our product and service offerings globally has been a tremendous success and we expect to secure additional profitable acquisitions that will have a positive effect on the Company's revenue going forward. Our main focus remains on the effective integration of
our endeavors in China, Mexico, Turkey, and India, while increasing sales and improving overall profitability."
The Company's anticipated revenue improvement is primarily attributable to continued growth both domestically and internationally through its new subsidiaries established in Mexico and Turkey as well as significant incremental revenue growth in a majority of the international markets, most notably in South Africa and Canada. SPAR Group's efforts to expand its domestic and international market shares are expected to increase profitability well into 2012. SPAR Group will continue to review additional acquisition and growth opportunities that could be accretive to 2012 forecasted earnings.
About SPAR Group
SPAR Group, Inc. is a diversified international merchandising and marketing services company and provides a broad array of services worldwide to help companies improve their sales, operating efficiency and profits at retail locations. The Company provides merchandising and other marketing services to manufacturers, distributors and retailers worldwide, primarily in mass merchandisers, office supply, grocery and drug store chains, independent, convenience and electronics stores, as well as providing furniture and other product assembly services, in-store events, radio frequency identification ("RFID") and related technology services and marketing research. The Company has supplied these project and product services in the United States since certain of its predecessors were
formed in 1979 and internationally since the Company acquired its first international subsidiary in Japan in May of 2001. Product services include product additions; placement, reordering, replenishment, labeling, evaluation and deletions, and project services include seasonal and special product promotions, product recalls and complete setups of departments and stores. The Company operates throughout the United States and internationally in 9 of the most populated countries, including China and India. For more information, visit the SPAR Group's Web site at http://www.sparinc.com/.
Certain statements in this news release and such conference call are forward-looking, including (without limitation) growing revenues and profits through organic growth and acquisitions, attracting new business that will increase SPAR Group's revenues, continuing to maintain costs and consummating any transactions. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control. The Company's actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of SPAR Group's selling and marketing functions, continued customer satisfaction and contract renewal,
new product development, continued availability of capable dedicated personnel, continued cost management, the success of its international efforts, success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in SPAR Group's most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
Contact:
James R. Segreto
Chief Financial Officer
SPAR Group, Inc.
(914) 332-4100
Investors:
Alan Sheinwald
Alliance Advisors, LLC
(212) 398-3486
Email Contact
Chris Camarra
Alliance Advisors, LLC
(212) 398-3487
Email Contact
Source: SPAR Group Inc.
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