Registrant's telephone number, including area code: (914) 332-4100

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

 

 

 

 

 

On July 31, 2009, SPAR Group, Inc. (the "Registrant"), issued a press release reporting its financial results for the second quarter ended June 30, 2009, a copy of which is attached to this Current Report on Form 8-K (the "Report") as Exhibit 99.1, and which is hereby incorporated herein by reference.

 

The information in Item 2.02 of this Report, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. It shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

 

 

EXHIBIT INDEX

 

 

 

 

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EXHIBIT 99.1

 

PondelWilkinson Inc. 1880 Century Park East, Suite 350 Los Angeles, CA 90067      T        (310) 279 5980      F        (310) 279 5988             W   www.pondel.com

 

NEWS RELEASE	CONTACTS:	James R. Segreto Chief Financial Officer SPAR Group, Inc. (914) 332-4100
		Roger S. Pondel / Judy Lin Sfetcu PondelWilkinson Inc. (310) 279-5980

 

 

SPAR GROUP REPORTS IMPROVED FINANCIAL RESULTS

 

FOR 2009 SECOND QUARTER, SIX MONTHS

 

TARRYTOWN, NY—July 31, 2009—SPAR Group, Inc. (NASDAQ:SGRP) today reported financial results for the second quarter and six months ended June 30, 2009.

Net revenues for the 2009 second quarter were $13.5 million, compared with $18.9 million a year ago. The company reported net income for the 2009 second quarter of $236,000, or $0.01 per diluted share, compared with net income of $3,000, or $0.00 per share, for the 2008 second quarter. Included in the 2009 second quarter results was other income of $285,000, resulting from a credit for prior legal expenses. Results for the 2008 second quarter included $458,000 in non-recurring litigation costs and a $170,000 tax benefit. Selling, general and administrative expenses for the 2009 second quarter decreased 13% to $3.9 million from $4.5 million a year ago.

“Second quarter revenues continued to be affected by weak global economic conditions, with our overseas operations experiencing the greater impact,” said Gary Raymond, SPAR Group’s president and chief executive officer. “We remain steadfastly focused on serving our clients, helping them to improve their performance, while at the same time increasing our marketing efforts to attract new business worldwide.

“In 2008, our management team had taken swift action to reduce expenses and control costs throughout the company. We are confident that SPAR Group’s solid foundation will allow us to weather the current economic storm and emerge even stronger as business conditions improve,” Raymond added.

Revenue in the U.S. for the 2009 second quarter was $6.8 million, compared with $8.9 million a year ago. SPAR Group’s U.S. operations for the 2009 second quarter reported that net income significantly improved to $564,000, compared to a net loss of $185,000 for the 2008 second quarter.

International revenue for the 2009 second quarter was $6.7 million, compared with $10.0 million last year. The division posted a net loss of $328,000, versus net income of $188,000 for the 2008 second quarter.

 

 

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For the 2009 six-month period, SPAR Group had revenues of $28.6 million, compared with $36.4 million last year. The company reported net income of $41,000 for the first half of 2009, equal to breakeven per share, which included other income of $265,000 resulting from a favorable judgment in a legal action and $285,000 from a credit for prior legal expenses, versus a net loss of $247,000, or $0.01 per share, for the 2008 comparable period. Results for the 2008 six-month period included $458,000 in non-recurring litigation costs and a $170,000 tax benefit. Selling, general and administrative expenses for the 2009 year-to-date period decreased 14% to $7.8 million from $9.2 million a year ago.

Revenue in the U.S. for the first half of 2009 was $12.4 million, compared with $16.4 million in the same period a year ago. The U.S. operation reported sharply increased net income of $444,000 for the 2009 six-month period versus a net loss of $504,000 for the first six months of 2008.

International revenue for the six months ended June 30, 2009 was $16.2 million, compared with $20.0 million for the same period last year. Net loss for the international operations was $403,000 for the first half of 2009, compared with net income of $257,000 in the first half of 2008.

 

About SPAR Group

 

SPAR Group, Inc. is a diversified international marketing services company, providing a broad array of services to help companies improve their sales, operating efficiency and profits at retail worldwide. The company provides in-store merchandising, in-store event staffing, RFID and other technology, as well as research, to manufacturers and retailers covering all product classifications and all classes of trade, including mass market, drug store, convenience store and grocery chains. The company operates throughout the United States and internationally in Japan, Canada, Turkey, South Africa, India, Romania, China, Lithuania, Latvia, Estonia, Australia and New Zealand. For more information, visit SPAR Group’s Web site, www.sparinc.com.

 

Certain statements in this news release are forward-looking, including, but not limited to, attracting new business that will increase SPAR Group’s revenues and continuing to maintain costs. 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 these and other factors that could affect future results, performance or trends are discussed in SPAR Group’s 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.

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(Tables follow)

 

 

 

 

SPAR Group, Inc.

Consolidated Statements of Operations

(unaudited)

(in thousands, except per share data)

 

 

 

 

SPAR Group, Inc.

Consolidated Balance Sheets

(unaudited)

(in thousands, except share and per share data)