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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 11, 2013

  

SPAR Group, Inc.

(Exact Name of Registrant as Specified in Charter)

     

Delaware 

(State or Other Jurisdiction of Incorporation)

0-27824

(Commission File No.)

33-0684451

(IRS Employer Identification No.)

 

333 Westchester Avenue, South Building, Suite 204, White Plains, NY   10604
(Address of Principal Executive Offices)   (Zip Code)
     
Registrant's telephone number, including area code: (914) 332-4100
 

(Former Name or Former Address, if Changed Since Last Report)

 

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:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  

 
 

 

 

Item 2.02.     Results of Operations and Financial Condition.

 

On November 14, 2013, we, SPAR Group, Inc. ("SGRP" or the "Registrant"), and its subsidiaries (together with SGRP, "we", "our" or the "Company"), issued a press release (the "Earnings Release") reporting our financial results for our fiscal quarter and six-month period that ended on September 30, 2013 (our "2013 Third Quarter").

 

A copy of the Earnings Release is attached to this Current Report on Form 8-K (this "Report") as Exhibit 99.1 and is hereby incorporated herein by reference.

 

Item 8.01.     Other Events.

 

On November 11, 2013, we issued a press release (the "Call Release") announcing that Mr. Gary Raymond, our President and Chief Executive Officer, and Mr. Jim Segreto, our Chief Financial Officer, will host a shareholder update conference call on Thursday, November 14, 2013, at 11:00 a.m. Eastern Time. During the call management will discuss the Company's 2013 Third Quarter financial results and provide a shareholder update on recent business developments.

 

Conference Call Details:

Date: Thursday, November 14, 2013

Time: 11:00 a.m. EST

TOLL-FREE: 1-877-941-4774

TOLL/INTERNATIONAL: 1-480-629-9760

 

It is recommended that participants dial in approximately 5 to 10 minutes prior to the start of the 11:00 a.m. call. A telephonic replay of the conference call may be accessed approximately three hours after the call through November 14, 2013 by dialing 1-877-870-5176, or 1-858-384-5517 for international callers, and entering the replay pin number 4649005.

 

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://www.viavid.net/.

 

A copy of the Call Release is attached to this Report as Exhibit 99.2 and is hereby incorporated herein by reference.

 

Information Not "Filed"

 

The information in Items 2.02 and 8.01 of this Report and the Earnings Release and the Call Release (collectively, the "Release"), and any information that may be conveyed in such conference call, shall, to the greatest extent permitted by applicable law, not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. Such information, to the extent deemed or determined to have been not "filed" under applicable law, shall not be deemed incorporated by reference in any filing by us under the Securities Act of 1933, as amended (the "Securities Act"), except as shall be expressly set forth by specific reference in such a filing.

 

Forward Looking Statements

 

Statements contained in this Report and the attached Release, and any statements that may be made in such conference call, include "forward-looking statements" within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange and other applicable federal and state securities laws, rules and regulations, each as amended (together with the Securities Act and Exchange Act, collectively, "Securities Laws"). Forward looking statements are also included in SGRP's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed with the Securities and Exchange Commission (the "SEC") on April 2, 2013 (the "Annual 2012 Report"), SGRP's Proxy Statement for its 2013 Annual Meeting of Stockholders as filed with the SEC on April 19, 2013 (the "2013 Proxy Statement"), in SGRP's Quarterly Reports on Form 10-Q as filed with the SEC from time to time after the Annual Report (each a "Quarterly Report"), and the Company's other filings with the SEC under applicable Securities Laws (including this Report, SGRP's Annual Report, Proxy Statement and Quarterly Report(s), each a "SEC Report"). The Company's SEC Reports are available on the Company's website at http://investors.sparinc.com).

 

 
-1-

 

 

Forward looking statements include (without limitation) any statements relating to anticipated, prospective or desired customers, acquisitions, growth or markets, trends, updates, or other anticipated, estimated, expected or desired assets, business, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, profits, prospects, sales, strategies, taxation, valuation or other achievement, results, risks or condition. 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" or similar words or variations or negatives of those words.

 

You should carefully consider all forward-looking statements, risk factors and the other risks, cautions and information noted in this Report, the Company's 2012 Annual Report and the Company's other SEC Reports that could cause the Company's actual assets, business, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, prospects, sales, strategies, taxation or other achievement, results, risks or condition to differ materially from those anticipated by the Company and described in the information in the Company's forward-looking statements, whether express or implied, as the Company's anticipations are based upon the Company's plans, intentions, expectations and best estimates and (although the Company believe them to be reasonable) involve known and unknown risks, uncertainties and other factors that could cause them to fail to occur or be realized or to be materially and adversely different from those the Company anticipated.

 

Although the Company believes that its plans, intentions, expectations and estimates reflected or implied in such forward-looking statements are reasonable, the Company cannot assure you that such plans, intentions, expectations or estimates 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. You should carefully review the risk factors described in Item 1A – "Risk Factors" in the Company's 2012 Annual Report and any other risks, cautions or information contained in or incorporated by reference into any applicable SEC Report. All forward-looking and other statements and 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.

 

You should not place undue reliance on the Company's forward-looking statements and similar information because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond its control. The Company's forward-looking statements, risk factors and other risks, cautions and information (whether contained in this Quarterly Report or other applicable SEC Report) are based on the information currently available to the Company and speak only as of the date specifically referenced, or if no date is referenced, then as of December 31, 2012, in the case of the 2013 Proxy Statement or the last day of the period covered thereby in the case of any other applicable SEC Report. 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. Over time, the Company's actual assets, business, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, prospects, sales, strategies, taxation or other achievements, results, risks or condition will likely differ from those expressed or implied by the Company's forward-looking statements, and such difference could be significant and materially adverse to the Company and the value of your investment in the Company's Common Stock.

 

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 statements (in whole or in part), whether as a result of new information, future events or recognition or otherwise, except as and to the extent required by applicable law.

 

 
-2-

 

 

 Item 9.01.    Financial Statements and Exhibits.

 

(a) Exhibits:
 

99.1

Press Release of the Registrant dated November 14, 2013, as attached hereto.

 

99.2

Press Release of the Registrant dated November 11, 2013, as attached hereto.

 

 

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.

 

  SPAR Group, Inc.  
       
Date:  November 14, 2013 By: /s/ James R. Segreto  
    James R. Segreto, Chief Financial Officer  
       

  

 

 
-3-

 

 

EXHIBIT INDEX

          

Exhibit

Number 

Description
   

99.1

Press Release of the Registrant dated November 14, 2013, as attached hereto.

   

99.2

Press Release of the Registrant dated November 11, 2013, as attached hereto.

 

 

 

 

-4-

 

 

Exhibit 99.1

 

 

SPAR Group Announces Third Quarter 2013 Revenue Increase to $27.8 Million

 

WHITE PLAINS, N.Y., November 14, 2013 -- SPAR Group, Inc. (NASDAQ: SGRP) ("we", the "Company" or "SPAR Group"), a leading supplier of retail merchandising and other marketing services throughout the United States and internationally, today announced financial results for the third quarter and nine months ending September 30, 2013.

 

Company Highlights

 

Third Quarter 2013

 

o

Revenue increased 9% to $27.8 million

 

o

International revenue increased 15% to $16.4 million

 

o

Net income was $331,000 or $0.02 per diluted share

 

Nine months of 2013

 

o

Net revenues increased 16% to $80.2 million

 

o

Domestic revenues increased $1.2 million to $32.4 million

 

o

International revenues increased 26% to $47.8 million

 

o

Net income was $244,000 or $0.01 per diluted share

 

Gary Raymond, Chief Executive Officer of SPAR Group, commented, “Management is pleased with the overall revenue growth that the Company has achieved throughout the third quarter and nine month period ended September 30, 2013. SPAR’s top line success continues to be driven by our international business, most notably the integration of the acquisitions in South Africa and India and the organic growth of our operations in China and Mexico. Domestically, we completed the integration of the MFI transaction which is now providing profitable revenue to our bottom-line.”

 

Mr. Raymond continued, “Going forward management will continue to implement stringent cost reduction initiatives in order to reduce operating expenditures and increase margins throughout all business operations. The Company’s balance sheet remains strong, which will allow us to leverage our proven growth strategy of targeting and acquiring immediately accretive acquisitions. Management expects to capitalize on the numerous growth opportunities ahead as we increase overall profitability during the fourth quarter, traditionally our strongest period.”

 

 
 

 

 

Financial Results for the three and nine-month periods ended September 30, 2013 and 2012

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 
               

Change

               

Change

 
   

2013

   

2012

   

$

   

%

   

2013

   

2012

   

$

   

%

 

Net revenue:

                                                               

Domestic

  $ 11,327     $ 11,016     $ 311       3 %   $ 32,390     $ 31,182     $ 1,208       4 %

International

    16,426       14,341       2,085       15 %     47,762       37,802       9,960       26 %

Total

  $ 27,753     $ 25,357     $ 2,396       9 %   $ 80,152     $ 68,984     $ 11,168       16 %
                                                                 
                                                                 
                                                                 

Gross profit:

                                                               

Domestic

  $ 3,446     $ 3,243     $ 203       6 %   $ 9,908     $ 9,945     $ (37 )     - %

International

    3,079       3,072       7       - %     8,992       8,484       509       6 %

Total

  $ 6,525     $ 6,315     $ 210       3 %   $ 18,900     $ 18,429     $ 472       3 %
                                                                 

Net income (loss) attributable to SPAR Group, Inc.:

 

Domestic

  $ 192     $ 617     $ (425 )     (69 )%   $ 236     $ 1,808     $ (1,572 )     (87 )%

International

    139       (39 )     178       456 %     8       (205 )     213       104 %

Total

  $ 331     $ 578     $ (247 )     (43 )%   $ 244     $ 1,603     $ (1,359 )     (85 )%
                                                                 

Earnings per diluted share:

 
    $ 0.02     $ 0.03     $ (0.01 )           $ 0.01     $ 0.07     $ (0.06 )        

 

As of August 31, 2013, the Company divested its interests in its Romanian subsidiary. As a result, the table above and attached financial statements reflect accounting for that subsidiary as a discontinued operation. Consolidated net revenue for the three and nine month periods ended September 30, 2013, increased 9% and 16%, respectively, when compared to the same periods in 2012. The increases in net revenue were primarily due to a strong performance from our subsidiaries in South Africa, India, China, Mexico and Japan. Continued growth in SPAR Group's domestic operations also contributed to the increase and was primarily due to incremental revenue from the recent acquisition of general merchandising and in-store audit services from Market Force Information, which was partially offset by a decrease in syndicated service and other project work.

 

Consolidated gross profit for the three and nine month periods ended September 30, 2013, were slightly ahead of last year’s levels. The Company’s gross profit margins were 24% for both the three and nine month periods ended September 30, 2013 compared to 25% and 27% for the same periods in 2012. Gross profit margins domestically were 30% and 31% for the three and nine month periods, ended September 30, 2013, respectively as compared to 29% and 32% for the same periods in 2012. The Company continues to focus on managing the mix of project work compared to syndicated work on a year-over-year basis. International gross profit margins were 19% for both the three and nine month periods ended September 30, 2013 compared to 21% and 22% for the same periods in 2012. The decrease in international gross margin percentages were primarily due to higher cost margin business in the new markets of Turkey, India and the unfavorable mix of business in Australia, Japan and China.

 

Net income attributable to SPAR Group decreased 43% and 85% for the three and nine month periods ended September 30, 2013, respectively, when compared to the same period a year ago. The decreases in net income for the three and nine month periods ended September 30, 2013, were driven primarily by increased spending in our domestic operations partially offset by improved international operations. 

 

 
 

 

 

Balance Sheet as of September 30, 2013

 

As of September 30, 2013, cash and cash equivalents were $3.1 million. Working capital was $8.6 million and the Company's current ratio was 1.6 to 1.  Total current assets and total assets were $23 million and $29.9 million, respectively.  Total current liabilities and total liabilities were $14.4 million and $14.6 million, respectively.  Shareholders' equity was $15.4 million at September 30, 2013.

 

Later today, the Company plans to file its Quarterly Report on Form 10-Q with the Securities and Exchange Commission and will host a shareholder conference call on Thursday, November 14, 2013 at 11:00 a.m. eastern time during which time Mr. Gary Raymond, President and Chief Executive Officer, and Mr. James Segreto, Chief Financial Officer, will discuss the Company's third quarter 2013 financial results and provide a shareholder update on recent business developments.

 

Conference Call Details:
Date: Thursday, November 14, 2013
Time: 11:00 a.m. ET
TOLL-FREE: 1-877-941-4774
TOLL/INTERNATIONAL: 1-480-629-9760

 

It is recommended that participants dial in approximately 5 to 10 minutes prior to the start of the 11:00 a.m. call.  A telephonic replay of the conference call may be accessed approximately three hours after the call through November 21, 2013 by dialing 1-877-870-5176, or 1-858-384-5517 for international callers, and entering the replay pin number 4649005.

 

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://www.viavid.net/.

 

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 merchandiser, office supply, grocery, drug, independent, convenience, electronics, toy and specialty stores, as well as providing furniture and other product assembly services, audit services, in-store events, 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 restocking and adding new products, removing spoiled or outdated products, resetting categories "on the shelf" in accordance with client or store schematics, confirming and replacing shelf tags, setting new sale or promotional product displays and advertising, replenishing kiosks, providing in-store event staffing and providing assembly services in stores, homes and offices. Audit services include price audits, point of sale audits, out of stock audits, intercept surveys and planogram audits. Other merchandising services include whole store or departmental product sets or resets (including new store openings), new product launches, in-store demonstrations, special seasonal or promotional merchandising, focused product support and product recalls.  The Company operates throughout the United States and internationally in 10 of the most populated countries, including China and India.  For more information, visit the SPAR Group's website at http://www.sparinc.com/.

 

Forward-Looking Statements

 

Certain statements in this news release and made in the update conference call are forward-looking, including (without limitation) expectations or guidance respecting 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. 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 factors 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:

Chris Camarra

Alliance Advisors, LLC

(212) 398-3487

 

 
 

 

 

SPAR Group, Inc.
Consolidated Statements of Income and Comprehensive Income

(unaudited)

(in thousands, except per share data)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
   

2013

   

2012

   

2013

   

2012

 
                                 

Net revenues

  $ 27,753     $ 25,357     $ 80,152     $ 68,984  

Cost of revenues

    21,228       19,042       61,252       50,555  

Gross profit

    6,525       6,315       18,900       18,429  
                                 

Selling, general, and administrative expense

    5,747       5,112       16,900       15,518  

Depreciation and amortization

    388       297       1,097       859  

Operating income

    390       906       903       2,052  
                                 

Interest expense

    28       32       80       95  

Other income, net

    (5 )     (29 )     (73 )     (36 )

Income before provision for income taxes

    367       903       896       1,993  
                                 

Income taxes expense (benefits)

    (139 )     62       200       134  

Income from continuing operations

    506       841       696       1,859  

Income from discontinued operations

    17       18       98       95  

Net income

    523       859       794       1,954  

Net income attributable to the non-controlling interest

    (192 )     (281 )     (550 )     (351 )

Net income attributable to SPAR Group, Inc.

  $ 331     $ 578     $ 244     $ 1,603  
                                 

Basic income per common share:

 

Continuing operations

  $ 0.02     $ 0.03     $ 0.01     $ 0.08  

Discontinued operations

  $    

$

   

$

    $  
                                 

Diluted income per common share:

 

Continuing operations

  $ 0.02     $ 0.03     $ 0.01     $ 0.07  

Discontinued operations

  $     $     $     $  
                                 

Weighted average common shares - basic

    20,503       20,275       20,483       20,175  
                                 

Weighted average common shares - diluted

    21,781       21,987       21,708       21,682  
                                 

Net income

  $ 523     $ 859     $ 794     $ 1,954  

Other comprehensive income (loss):

                               

Foreign currency translation adjustments

    56       158       (505 )     (37 )

Comprehensive income

  $ 579     $ 1,017     $ 289     $ 1,917  

Comprehensive income attributable to non-controlling interest

    (192 )     (281 )     (550 )     (351 )

Comprehensive income (loss) attributable to SPAR Group, Inc.

  $ 387     $ 736     $ (262 )   $ 1,566  

 

 

 
 

 

 

SPAR Group, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

 

     

September 30,

2013

   

December 31,

2012

 
   

(unaudited)

   

(note)

 

Assets

               

Current assets:

               
 

Cash and cash equivalents

  $ 3,111     $ 1,792  
 

Accounts receivable, net

    19,037       21,414  
 

Deferred income tax

    178       194  
 

Prepaid expenses and other current assets

    710       596  

Total current assets

    23,036       23,996  
                   

Property and equipment, net

    2,039       1,777  

Goodwill

    1,792       1,792  

Intangibles

    2,410       1,468  

Other assets

    651       237  

Total assets

  $ 29,928     $ 29,270  
                   

Liabilities and equity

               

Current liabilities:

               
 

Accounts payable

  $ 4,024     $ 4,177  
 

Accrued expenses and other current liabilities

    5,419       6,729  
 

Accrued expense due to affiliates

    2,159       705  
 

Customer deposits

    627       263  
 

Lines of credit

    2,214       2,393  

Total current liabilities

    14,443       14,267  

Long-term debt and other liabilities

    129       268  

Total liabilities

    14,572       14,535  
                   

Equity:

               

SPAR Group, Inc. equity

               
 

Preferred stock, $.01 par value:

               
 

Authorized and available shares - 2,445,598

               
 

Issued and outstanding shares –

None - September 30, 2013

               
 

None - December 31, 2012

    -       -  
 

Common stock, $.01 par value:

               
 

Authorized shares - 47,000,000

               
 

Issued shares –

20,647,969 – September 30, 2013

               
 

20,469,471 – December 31, 2012

               
 

Outstanding shares –

20,519,319 – September 30, 2013

               
 

20,456,453 – December 31, 2012

    206       205  
 

Treasury stock, at cost, 128,650 shares

    (252 )     (26 )
 

Additional paid-in capital

    15,267       14,738  
 

Accumulated other comprehensive loss

    (887 )     (382 )
 

Accumulated deficit

    (1,452 )     (1,696 )

Total SPAR Group, Inc. equity

    12,882       12,839  

Non-controlling interest

    2,474       1,896  

Total equity

    15,356       14,375  

Total liabilities and equity

  $ 29,928     $ 29,270  

Note: The Balance Sheet at December 31, 2012, 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.

 

 

 

ex99-2.htm

Exhibit 99.2

 

SPAR Group Announces Third Quarter 2013 Shareholder Update Call

 

WHITE PLAINS, N.Y., Nov. 11, 2013 (GLOBE NEWSWIRE) -- SPAR Group, Inc. (Nasdaq:SGRP) ("we", the "Company" or "SPAR Group"), a leading supplier of retail merchandising and other marketing services throughout the United States and internationally, today announced that Mr. Gary Raymond, President and Chief Executive Officer, and Mr. Jim Segreto, Chief Financial Officer, will host a shareholder update conference call on Thursday, November 14, 2013, at 11:00 a.m. Eastern Time. During the call management will discuss the Company's third quarter 2013 financial results and provide a shareholder update on recent business developments.

 

Conference Call Details:

 

Conference Call Details:

Date: Thursday, November 14, 2013

Time: 11:00 a.m. EST

TOLL-FREE: 1-877-941-4774

TOLL/INTERNATIONAL: 1-480-629-9760

 

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://www.viavid.net/.

 

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 merchandiser, office supply, grocery, drug, independent, convenience, electronics, toy and specialty stores, as well as providing furniture and other product assembly services, audit services, in-store events, 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 restocking and adding new products, removing spoiled or outdated products, resetting categories "on the shelf" in accordance with client or store schematics, confirming and replacing shelf tags, setting new sale or promotional product displays and advertising, replenishing kiosks, providing in-store event staffing and providing assembly services in stores, homes and offices. Audit services include price audits, point of sale audits, out of stock audits, intercept surveys and planogram audits. Other merchandising services include whole store or departmental product sets or resets (including new store openings), new product launches, in-store demonstrations, special seasonal or promotional merchandising, focused product support and product recalls. The Company operates throughout the United States and internationally in 10 of the most populated countries, including China and India. For more information, visit the SPAR Group's website at http://www.sparinc.com/.

 

 
 

 

 

Forward-Looking Statements

 

Certain statements in this news release and made in the update conference call are forward-looking, including (without limitation) expectations or guidance respecting 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, 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 factors 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:

Chris Camarra

Alliance Advisors, LLC

(212) 398-3487