SPAR Group Exceeds Revenue Guidance and Announces Revenue Growth to $73.5 Million for Fiscal Year 2011
2011 Company Highlights
- Revenue for the fiscal year increased by 16% and by 26% for the fourth quarter of 2011 based on strong growth from the Company's international operations.
- Added several new subsidiaries in 2011 to expand operations in
Mexico ,Turkey andChina that are expected to add additional$18 million in revenue in 2012. - International division revenues grew by 55% for the fourth quarter and 34% for the fiscal year.
- Working capital improved to
$7.2 million from$4.4 million year over year and cash on hand increased approximately$800,000 .
"Having exceeded our revenue guidance for FY2011,
Three Month Financial Results for the period ended
- Total revenue increased 26%, led by strong growth of 55% in the International division,
- Net Income of
$1.2 million , - Gross Profit increased 11%.
Three Months Ended December 31,
(in thousands)
---------------------------------------
2011 2010 Change
--------- --------- -------------------
Net Revenue: $ %
--------- --------
Domestic $ 10,188 $ 10,060 $ 128 1%
International 13,411 8,678 4,733 55%
--------- --------- ---------
Total $ 23,599 $ 18,738 $ 4,861 26%
Gross Profit:
Domestic $ 3,721 $ 3,925 $ (204) (5)%
International 3,535 2,638 897 34%
--------- --------- ---------
Total $ 7,256 $ 6,563 $ 693 11%
Operating Income:
Domestic $ 1,213 $ 1,404 $ (191) (14)%
International 315 247 68 28%
--------- --------- ---------
Total $ 1,528 $ 1,651 $ (123) (8)%
Net Income:
Domestic $ 991 $ 1,143 $ (152) (13)%
International 213 52 161 307%
--------- --------- ---------
Total $ 1,204 $ 1,195 $ 9 1%
Revenue for the quarter ended
Gross profit increased 11% to
Net income for the fourth quarter of 2011 was
Fiscal Year Ended
- Total revenue increased 16%,
- Domestic revenue increased
$1.2 million , - International revenue increased
$9.1 million , - Gross profit increased
$1.5 million , - Working capital continues to show improvement at
$7.2 million .
Twelve Months Ended December 31,
(in thousands)
-----------------------------------------
2011 2010 Change
--------- --------- -------------------
Net Revenue: $ %
--------- --------
Domestic $ 37,809 $ 36,564 $ 1,245 3%
International 35,715 26,590 9,125 34%
--------- --------- ---------
Total $ 73,524 $ 63,154 $ 10,370 16%
Gross Profit:
Domestic $ 12,590 $ 13,129 $ (539) (4)%
International 9,906 7,860 2,046 26%
--------- --------- ---------
Total $ 22,496 $ 20,989 $ 1,507 7%
Operating Income:
Domestic $ 2,774 $ 3,044 $ (270) (9)%
International 111 (213) 324 152%
--------- --------- ---------
Total $ 2,885 $ 2,831 $ 54 2%
Net Income (loss):
Domestic $ 2,333 $ 2,673 $ (340) (13)%
International (119) (506) 387 77%
--------- --------- ---------
Total $ 2,214 $ 2,167 $ 47 2%
Revenue for the fiscal year 2011 increased 16% to
Gross profit for the fiscal year 2011 increased 7% to
Net income for the fiscal year 2011 totaled
Balance Sheet as of
As of
The Company intends to file the Form 10-K with the
About
Certain statements in this news release and such conference call are forward-looking, including (without limitation) expectations or guidance respecting customer contract expansion, growing revenues and profits through organic growth and acquisitions, attracting new business that will increase
Tables Follow
SPAR Group, Inc.
Consolidated Statements of Income
(unaudited)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
Net revenues $ 23,599 $ 18,738 $ 73,524 $ 63,154
Cost of revenues 16,343 12,175 51,028 42,165
--------- --------- --------- ---------
Gross profit 7,256 6,563 22,496 20,989
Selling, general, and
administrative expense 5,467 4,619 18,542 17,140
Depreciation and amortization 261 293 1,069 1,018
--------- --------- --------- ---------
Operating income 1,528 1,651 2,885 2,831
Interest expense 36 171 197 310
Other expense (income) 11 (36) (11) (21)
--------- --------- --------- ---------
Income before provision for
income taxes 1,481 1,516 2,699 2,542
Provision for income taxes 291 188 362 263
--------- --------- --------- ---------
Net income 1,190 1,329 2,337 2,279
Net loss (income) attributable to
the non-controlling interest 14 (133) (123) (112)
--------- --------- --------- ---------
Net income attributable to SPAR
Group, Inc. $ 1,204 $ 1,195 $ 2,214 $ 2,167
========= ========= ========= =========
Net income per basic/diluted
common share:
Net income - basic $ 0.06 $ 0.06 $ 0.11 $ 0.11
========= ========= ========= =========
Net income - diluted $ 0.06 $ 0.06 $ 0.10 $ 0.11
========= ========= ========= =========
Weighted average common shares -
basic 20,101 19,290 19,958 19,209
========= ========= ========= =========
Weighted average common shares -
diluted 21,344 21,047 21,327 20,602
========= ========= ========= =========
SPAR Group, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
December 31, December 31,
2011 2010
------------ ------------
Assets (unaudited) (note)
Current assets:
Cash and cash equivalents $ 1,705 $ 923
Accounts receivable, net 15,461 13,999
Prepaid expenses and other current assets 801 1,283
------------ ------------
Total current assets 17,967 16,205
Property and equipment, net 1,523 1,452
Goodwill 1,148 848
Intangibles 705 362
Other assets 178 226
------------ ------------
Total assets $ 21,521 $ 19,093
============ ============
Liabilities and equity
Current liabilities:
Accounts payable $ 1,819 $ 1,804
Accrued expenses and other current liabilities 4,039 2,733
Accrued expense due to affiliates 1,092 1,575
Customer deposits 183 471
Lines of credit and other debt 3,641 5,263
------------ ------------
Total current liabilities 10,774 11,846
Long-term debt and other liabilities 334 -
------------ ------------
Total liabilities 11,108 11,846
Equity:
SPAR Group, Inc. equity
Preferred stock, $.01 par value:
Authorized and available shares - 2,445,598
Issued and outstanding shares - None -
December 31, 2011
554,402 - December 31, 2010 - 6
Common stock, $.01 par value:
Authorized shares - 47,000,000
Issued and outstanding shares - 20,103,043 -
December 31, 2011
19,314,306 - December 31, 2010 201 193
Treasury stock - (1)
Additional paid-in capital 13,940 13,549
Accumulated other comprehensive loss (172) (142)
Accumulated deficit (4,626) (6,808)
------------ ------------
Total SPAR Group, Inc. equity 9,343 6,797
Non-controlling interest 1,070 450
------------ ------------
Total liabilities and equity $ 21,521 $ 19,093
============ ============
Note: The Balance Sheet at December 31, 2010 , is excerpted from the
consolidated audited financial statements as of that date but does not
include certain information and footnotes required by accounting principles
generally accepted in the United States for complete financial statements.
Contact:James R. Segreto Chief Financial OfficerSPAR Group, Inc. (914) 332-4100 Investors:Alan Sheinwald Alliance Advisors, LLC (212) 398-3486 Email ContactChris Camarra Alliance Advisors, LLC (212) 398-3487 Email Contact
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