SPAR Group Announces a 25% Increase in Revenue and a 600% Increase in Net Income for First Quarter 2011
Key First Quarter 2011 Financial Results
- Net revenue increased 25% to
$16.4 million compared to$13.1 million in 2010; - Gross profit increased 23% to
$5.2 million compared to$4.3 million in 2010; - Operating income increased more than ninefold to
$397,000 compared to$39,000 in 2010: - Net income increased sixfold to
$253,000 or$0.01 per share compared to$36,000 or$0.00 per share in 2010.
"We're extremely pleased with the strong sales and earnings gains we achieved during the first quarter, marking a continuation of the solid trends we experienced throughout 2010. The Company achieved double digit sales growth from both its domestic and international operations. The sales increase from domestic operations was driven entirely from organic growth, while the growth from international operations was derived from a mix of both organic growth in several key markets and a full quarter impact from our acquisition in
Summary of First Quarter 2011 Results
Three Months Ended March 31,
(in thousands)
---------------------------------------
2011 2010 Change
---------- ----------- --------------
Net Revenue: $ %
-------- ----
Domestic $ 9,521 $ 7,545 $ 1,976 26%
International 6,897 5,583 1,314 24%
---------- ----------- --------
Total $ 16,418 $ 13,128 $ 3,290 25%
Gross Profit:
Domestic $ 3,274 $ 2,756 $ 518 19%
International 1,958 1,515 443 29%
---------- ----------- --------
Total $ 5,232 $ 4,271 $ 961 23%
Operating Income (loss):
Domestic $ 591 $ 171 $ 420 250%
International (194) (132) (62) (47)%
---------- ----------- --------
Total $ 397 $ 39 $ 358 920%
Net Income (loss):
Domestic $ 500 $ 139 $ 361 260%
International (247) (103) (144) (140)%
---------- ----------- --------
Total $ 253 $ 36 $ 217 600%
Revenue for the quarter ended
Gross profit increased 23% to
Net income for the first quarter of 2011 increased to
Mr. Raymond continued, "Our 2010 acquisitions contributed positively to the Company's financial performance, but equally important, we have demonstrated that the commitment of our employees and utilization of our information systems allows us to quickly integrate our acquisitions in-order to increase profits. SPAR's strategic plan is to increase shareholder value through a continued focus on both organic revenue growth and significant expansion opportunities across numerous international and domestic markets. During the first quarter of 2011 we identified several accretive acquisition candidates that will allow us to continue to improve our overall profitability and our expectation is to close at least two of these acquisitions in the current year. For the remainder of the year we will continue to grow our revenue organically, manage our costs and efficiently integrate future acquisitions as we continue to drive shareholder value."
Balance Sheet as of
The Company continues to improve its working capital and ratio. For the period ending
The Company intends to file the Form 10-Q with the
About
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
Tables Follow
SPAR Group, Inc.
Consolidated Statements of Income
(unaudited)
(in thousands, except per share data)
Three Months Ended
March 31,
------------------
2011 2010
-------- --------
Net revenues $ 16,418 $ 13,128
Cost of revenues 11,186 8,857
-------- --------
Gross profit 5,232 4,271
Selling, general, and administrative expenses 4,573 3,973
Depreciation and amortization 262 259
-------- --------
Operating income 397 39
Interest expense 81 35
Other expense 9 3
-------- --------
Income before provision for income taxes 307 1
Provision for income taxes 24 17
-------- --------
Net income (loss) 283 (16)
Net (income) loss attributable to the non-controlling
interest (30) 52
-------- --------
Net income attributable to SPAR Group, Inc. $ 253 $ 36
======== ========
Basic/diluted net income per common share:
Net income - basic/diluted $ 0.01 $ 0.00
======== ========
Weighted average common shares - basic 19,639 19,139
======== ========
Weighted average common shares - diluted 21,347 20,269
======== ========
SPAR Group, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
March 31, December 31,
2011 2010
------------- -------------
(unaudited) (note)
Assets
Current assets:
Cash and cash equivalents $ 1,473 $ 923
Accounts receivable, net 12,240 13,999
Prepaid expenses and other current assets 814 1,283
------------- -------------
Total current assets 14,527 16,205
Property and equipment, net 1,400 1,452
Goodwill 848 848
Intangibles 351 362
Other assets 205 226
------------- -------------
Total assets $ 17,331 $ 19,093
============= =============
Liabilities and equity
Current liabilities:
Accounts payable $ 1,538 $ 1,804
Accrued expenses and other current
liabilities 2,333 2,733
Accrued expense due to affiliates 1,477 1,575
Customer Deposits 614 471
Lines of credit and other debt 3,408 5,263
------------- -------------
Total current liabilities 9,370 11,846
Other long-term liabilities 337 -
------------- -------------
Total liabilities 9,707 11,846
Equity:
SPAR Group, Inc. equity
Preferred stock, $.01 par value:
Authorized shares - 3,000,000
Issued and outstanding shares -
None - March 31, 2011
554,402 - December 31, 2010 - 6
Common stock, $.01 par value:
Authorized shares - 47,000,000
Issued and outstanding shares -
19,962,832 - March 31, 2011 and
19,314,306 - December 31, 2010 200 193
Treasury stock (1) (1)
Additional paid-in capital 13,619 13,549
Accumulated other comprehensive loss (119) (142)
Accumulated deficit (6,555) (6,808)
------------- -------------
Total SPAR Group, Inc. equity 7,144 6,797
Non-controlling interest 480 450
------------- -------------
Total liabilities and equity $ 17,331 $ 19,093
============= =============
Note: The Balance Sheet at
Contact:James R. Segreto Chief Financial OfficerSPAR Group, Inc. (914) 332-4100 Investors:Alan Sheinwald Alliance Advisors, LLC (212) 398-3486 Email Contact OrChris Camarra Alliance Advisors, LLC (212) 398-3487 Email Contact
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