SPAR Group Earns $0.03 per Share for the 2014 Second Quarter
Financial Results for the Three and Six month Periods ended
For the Three Months Ended |
For the Six Months Ended |
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Change | Change | |||||||
2014 | 2013 | $ | % | 2014 | 2013 | $ | % | |
Net Revenue: | ||||||||
Domestic |
|
$ 11,374 | $ 1,267 | 11% | $ 23,599 | $ 21,062 | $ 2,537 | 12% |
International | 18,283 | 16,036 | 2,247 | 14% | 35,361 | 31,337 | 4,024 | 13% |
Total |
|
|
$ 3,514 | 13% | $ 58,960 | $ 52,399 | $ 6,561 | 13% |
Gross Profit: | ||||||||
Domestic | $ 3,972 | $ 3,415 | $ 557 | 16% | $ 7,014 | $ 6,461 | $ 553 | 9% |
International | 3,727 | 3,152 | 575 | 18% | 6,916 | 5,913 | 1,003 | 17% |
Total |
|
$ 6,567 | $ 1,132 | 17% | $ 13,930 | $ 12,374 | $ 1,556 | 13% |
Operating Income (Loss): | ||||||||
Domestic | $ 561 | $ (23) | $ 584 | na | $ 297 | $ 281 | $ 16 | 5% |
International | 449 | 229 | 220 | 96% | 610 | 228 | 382 | 168% |
Total | $ 1,010 | $ 206 | $ 804 | 390% | $ 907 | $ 509 | $ 398 | 78% |
Net Income (loss) attributable to |
||||||||
Domestic | $ 414 | $ (144) | $ 558 | na | $ 114 | $ 45 | $ 69 | 153% |
International | 163 | 14 | 149 | na | 94 | (132) | 226 | na |
Total | $ 577 | $ (130) | $ 707 | $ 208 | $ (87) | $ 295 | ||
Earnings (loss) per DilutedShare: | ||||||||
$ 0.03 | $ (0.01) | $ 0.04 | $ 0.01 | -- | $ 0.01 |
Financial Highlights for the Three Months Ending
-
Revenue for the 2014 second quarter totaled
$30.9 million , an increase of 13% as compared to$27.4 million for the 2013 second quarter; - Domestic and international revenue for the 2014 second quarter increased 11% and 14% respectively, compared to last year;
-
Gross profit for the 2014 second quarter totaled
$7.7 million , an increase of 17% as compared to$6.6 million for the 2013 second quarter; - Domestic and international gross profit increased 16% and 18% respectively;
- Gross profit margin improved to 25% for the 2014 second quarter as compared to 24% for the 2013 second quarter; and
-
Net income for the 2014 second quarter totaled
$577,000 or$0.03 per diluted share as compared to a net loss of$130,000 or$(0.01) per diluted share.
Domestic net revenue totaled
Domestic cost of revenue was 68.6% of net revenue for the three months ended
The Company reported net income of
Financial Highlights for the Six Months Ending
-
Revenue for the 2014 first six months totaled
$59 million , an increase of 13% as compared to$52.4 million for the 2013 first six months; - Domestic and international revenue for the 2014 first six months increased 12% and 13% respectively;
-
Gross profit for the 2014 first six months totaled
$13.9 million , an increase of 13% as compared to$12.4 million for the 2013 first six months; - Gross profit domestically and internationally increased 9% and 17% respectively;
- Gross profit margin remained unchanged at 24% during both six month periods; and
-
Net income for the 2014 first six months totaled
$208,000 or$0.01 per diluted share as compared to a net loss of$87,000 or$0.00 per diluted share.
Domestic net revenue totaled
Domestic cost of revenue was 70.3% of net revenue for the six months ended
The Company reported net income of
Balance Sheet as of
As of
Conference Call Details:
Date:
Time:
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There will also be a simultaneous audio feed webcast and archived recording of the conference call available at http://www.sparinc.com under the "Investor Relations" menu section and "News Releases" sub-menu of the website, or you may use the link audio feed and archived recording of the conference call available at http://public.viavid.com/index.php?id=110540.
About SPAR Group
Forward-Looking Statements
Certain statements in this news release and made in the update conference call referenced above are forward-looking, including (without limitation) any expectations, guidance or other information respecting the pursuit or achievement of the Company's five corporate objectives (growth, customer value, employee development, productivity & efficiency, and earnings per share), building upon the Company's strong foundation, leveraging compatible global opportunities, improving on the value we already deliver to customers, our growing client base, continuing balance sheet strength, customer contract expansion, growing revenues and becoming profitable through organic growth and acquisitions, attracting new business that will increase SPAR Group's revenues, improving product mix, continuing to maintain or reduce costs and consummating any transactions. You should not place undue reliance on the Company's forward-looking statements and similar information because they are based on the Company's plans, intentions, expectations and estimates (although it believes them to be reasonable) and involve known and unknown risks, uncertainties and other unpredictable factors (many of which are beyond the Company's control) that could cause them to fail to occur or be realized or to be materially and adversely different from those the Company planned, intended, expected or estimated.
You should carefully review the risk factors described in the Company's most recent Annual Report (See Item 1A - Risk Factors) and any other risks, cautions or information contained or incorporated by reference into the Company's most recent Annual Report or more recent Quarterly and Current Reports as filed with the
All of the Company's forward-looking statements and other information contained in this news release or presented during the update conference call referenced above are expressly qualified by all such risk factors and other risks, cautions and information contained or referenced in each of the Company's applicable SEC Reports.
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Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) | ||||
(In thousands, except share and per share data) | ||||
Three Months Ended |
Six Months Ended |
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2014 | 2013 | 2014 | 2013 | |
Net revenues |
$ 30,924 | $ 27,410 | $ 58,960 | $ 52,399 |
Cost of revenues | 23,225 | 20,843 | 45,030 | 40,025 |
Gross profit | 7,699 | 6,567 | 13,930 | 12,374 |
Selling, general and administrative expenses | 6,271 | 5,953 | 12,193 | 11,155 |
Depreciation and amortization | 418 | 408 | 830 | 710 |
Operating income | 1,010 | 206 | 907 | 509 |
Interest expense | 41 | 20 | 84 | 51 |
Other expense (income), net | (68) | (56) | (113) | (69) |
Income before provision for income taxes | 1,037 | 242 | 936 | 527 |
Income tax expense | 233 | 224 | 352 | 338 |
Income from continuing operations | 804 | 18 | 584 | 189 |
Income from discontinued operations | - | 41 | - | 82 |
Net income | ||||
Net income attributable to the non-controlling interest | 227 | 189 | 376 | 358 |
Net income attributable to |
$ 577 | $ (130) | $ 208 | $ (87) |
Basic income per common share: | ||||
Continuing operations | $ 0.03 | $ (0.01) | $ 0.01 | $ -- |
Discontinued operations | $ -- | $ -- | $ -- | $ -- |
Diluted income per common share: | ||||
Continuing operations | $ 0.03 | $ (0.01) | $ 0.01 | $ -- |
Discontinued operations | $ -- | $ -- | $ -- | $ -- |
Weighted average common shares - basic | 20,613 | 20,481 | 20,585 | 20,473 |
Weighted average common shares - diluted | 21,709 | 21,716 | 21,762 | 21,661 |
Net income | $ 804 | $ 59 | $ 584 | $ 271 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 92 | (363) | 45 | (561) |
Comprehensive income | $ 896 | $ (304) | $ 629 | $ (290) |
Comprehensive income attributable to non-controlling interest | 227 | 189 | 376 | 358 |
Comprehensive income (loss) attributable to |
$ 669 | $ (493) | $ 253 | $ (648) |
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Consolidated Balance Sheets | ||
(In thousands, except share and per share data) | ||
2014 |
2013 |
|
Assets | (Unaudited) | (Note) |
Current assets: | ||
Cash and cash equivalents | $ 4,699 | $ 2,814 |
Accounts receivable, net | 24,476 | 21,734 |
Deferred income taxes | 432 | 456 |
Prepaid expenses and other current assets | 437 | 642 |
Total current assets | 30,044 | 25,646 |
Property and equipment, net | 2,131 | 2,032 |
Goodwill | 1,800 | 1,800 |
Intangible assets | 2,003 | 2,259 |
Deferred income taxes | 1,900 | 1,900 |
Other assets | 970 | 641 |
Total assets | $ 38,848 | $ 34,278 |
Liabilities and equity | ||
Current liabilities: | ||
Accounts payable | $ 3,934 | $ 4,267 |
Accrued expenses and other current liabilities | 7,092 | 5,854 |
Accrued expenses due to affiliates | 1,049 | 560 |
Customer deposits | 766 | 673 |
Lines of credit | 558 | 696 |
Total current liabilities | 13,399 | 12,050 |
Other long-term liabilities | 5,889 | 3,672 |
Total liabilities | 19,288 | 15,722 |
Equity: | ||
|
||
Preferred stock, |
||
Authorized and available shares- 2,445,598 | ||
Issued and outstanding shares- | ||
None - June 30, 2014 and | ||
None - December 31, 2012 | - | - |
Common stock, |
||
Authorized shares - 47,000,000 | ||
Issued shares - | ||
20,680,717 - June 30, 2014 and | ||
|
207 | 207 |
Treasury stock at cost | ||
69,002 shares - June 30, 2014 and | ||
181,931 shares - December 31, 2013 | (130) | (356) |
Additional paid-in capital | 15,488 | 15,339 |
Accumulated other comprehensive loss | (986) | (1,031) |
Retained earnings | 1,862 | 1,654 |
Total |
16,441 | 15,813 |
Non-controlling interest | 3,119 | 2,743 |
Total Equity | 19,560 | 18,556 |
Total liabilities and equity |
$ 38,848 | $ 34,278 |
Note: The Balance Sheet at
CONTACT: Company Contact:Source: SPAR GroupJames R. Segreto Chief Financial OfficerSPAR Group, Inc. (914) 332-4100 Investor Contact:Valter Pinto Capital Markets Group, LLC (914) 669-0222 or (212) 398-3486 valter@capmarketsgroup.com
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