SPAR Group Reports 2014 Third Quarter Year-Over-Year Revenue Growth of 12% and Earns $0.02 Per Share
Financial Results for the Three and Nine month Periods ended |
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For the Three Months Ended |
For the Nine Months Ended |
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Change | Change | |||||||
2014 | 2013 | $ | % | 2014 | 2013 | $ | % | |
Net Revenue: | ||||||||
Domestic | $ 11,666 | $ 11,327 | $ 339 | 3% | $ 35,265 | $ 32,390 | $ 2,875 | 9% |
International | 19,343 | 16,426 | 2,917 | 18% | 54,704 | 47,762 | 6,942 | 15% |
Total | $ 31,009 | $ 27,753 | $ 3,256 | 12% | $ 89,969 | $ 80,152 | $ 9,817 | 12% |
Gross Profit: | ||||||||
Domestic | $ 3,774 | $ 3,446 | $ 328 | 10% | $ 10,787 | $ 9,908 | $ 879 | 9% |
International | 3,532 | 3,079 | 453 | 15% | 10,449 | 8,992 | 1,457 | 16% |
Total | $ 7,306 | $ 6,525 | $ 781 | 12% | $ 21,236 | $ 18,900 | $ 2,336 | 12% |
Operating Income (Loss): | ||||||||
Domestic | $ 557 | $ 99 | $ 458 | 463% | $ 852 | $ 383 | $ 469 | 123% |
International | (10) | 291 | (301) | (103)% | 602 | 520 | 82 | 16% |
Total | $ 547 | $ 390 | $ 157 | 40% | $ 1,454 | $ 903 | $ 551 | 61% |
Net Income (loss) attributable to |
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Domestic | $ 390 | $ 192 | $ 198 | 103% | $ 500 | $ 236 | $ 264 | 112% |
International | (7) | 139 | (146) | (104)% | 90 | 8 | 82 | 1,025% |
Total | $ 383 | $ 331 | $ 52 | 16% | $ 590 | $ 244 | $ 346 | 142% |
Earnings (loss) per Diluted Share: | ||||||||
$ 0.02 | $ 0.02 | $ -- | $ 0.03 | $ 0.01 | $ 0.02 |
Financial Highlights for the Three Months Ending
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Revenue for the 2014 third quarter totaled
$31 million , an increase of 12% as compared to$27.8 million for the 2013 third quarter; - Domestic and international revenue for the 2014 third quarter increased 3% and 18% respectively, compared to last year;
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Gross profit for the 2014 third quarter totaled
$7.3 million , an increase of 12% as compared to$6.5 million for the 2013 third quarter; - Domestic and international gross profit increased 10% and 15% respectively;
- Gross profit margin remained constant at 24% for both third quarter periods; and
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Net income for the 2014 third quarter totaled
$383,000 or$0.02 per diluted share as compared to net income of$331,000 or$0.02 per diluted share, for the corresponding period last year.
Domestic net revenue totaled
Domestic gross profit margins increased 2 percentage points to 32% of net revenue for the three months ended
The Company reported net income of
Financial Highlights for the Nine Months Ending
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Revenue for the first nine months of 2014 totaled
$90 million , an increase of 12% compared to$80.2 million for the first nine months of 2013; -
Domestic and international revenue for the nine month period ending
September 30, 2014 increased 9% and 15% respectively, compared to the same period last year; -
Gross profit for the first nine months of 2014 totaled
$21.2 million , an increase of 12% compared to$18.9 million for the same period in 2013; - Gross profit domestically and internationally increased 9% and 16% respectively;
- Gross profit margin remained unchanged at 24% during both nine month periods; and
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Net income for the first nine months of 2014 totaled
$590,000 or$0.03 per diluted share compared to net income of$244,000 or$0.01 per diluted share.
Domestic net revenue totaled
Domestic and international gross profit margins for the nine month period ending
The Company reported net income of
Balance Sheet as of
As of
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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 | Nine Months Ended | |||
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2014 | 2013 | 2014 | 2013 | |
Net revenues | $ 31,009 | $ 27,753 | $ 89,969 | $ 80,152 |
Cost of revenues | 23,703 | 21,228 | 68,733 | 61,252 |
Gross profit | 7,306 | 6,525 | 21,236 | 18,900 |
Selling, general and administrative expenses | 6,329 | 5,747 | 18,522 | 16,900 |
Depreciation and amortization | 430 | 388 | 1,260 | 1,097 |
Operating income | 547 | 390 | 1,454 | 903 |
Interest expense | 44 | 28 | 128 | 80 |
Other (income) expense, net | (89) | (5) | (202) | (73) |
Income before provision for income taxes | 592 | 367 | 1,528 | 896 |
Income tax expense (benefit) | 21 | (139) | 373 | 200 |
Income from continuing operations | 571 | 506 | 1,155 | 696 |
Income from discontinued operations | - | 17 | - | 98 |
Net income | 571 | 523 | 1,155 | 794 |
Net income attributable to the non-controlling interest | (188) | (192) | (565) | (550) |
Net income attributable to |
$ 383 | $ 331 | $ 590 | $ 244 |
Basic income per common share: | ||||
Continuing operations | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.01 |
Discontinued operations | $ -- | $ -- | $ -- | $ -- |
Diluted income per common share: | ||||
Continuing operations | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.01 |
Discontinued operations | $ -- | $ -- | $ -- | $ -- |
Weighted average common shares - basic | 20,584 | 20,503 | 20,585 | 20,483 |
Weighted average common shares - diluted | 21,525 | 21,781 | 21,687 | 21,708 |
Net income | $ 571 | $ 523 | $ 1,155 | $ 794 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (423) | 56 | (378) | (505) |
Comprehensive income | $ 148 | $ 579 | $ 777 | $ 289 |
Comprehensive income attributable to non-controlling interest | (188) | (192) | (565) | (550) |
Comprehensive (loss) income attributable to |
$ (40) | $ 387 | $ 212 | $ (261) |
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Consolidated Balance Sheets | ||
(In thousands, except share and per share data) | ||
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2014 | 2013 | |
Assets | (Unaudited) | (Note) |
Current assets: | ||
Cash and cash equivalents | $ 5,622 | $ 2,814 |
Accounts receivable, net | 21,844 | 21,734 |
Deferred income taxes | 410 | 456 |
Prepaid expenses and other current assets | 509 | 642 |
Total current assets | 28,385 | 25,646 |
Property and equipment, net | 2,238 | 2,032 |
Goodwill | 1,800 | 1,800 |
Intangible assets | 3,339 | 2,259 |
Deferred income taxes | 1,900 | 1,900 |
Other assets | 493 | 641 |
Total assets | $ 38,155 | $ 34,278 |
Liabilities and equity | ||
Current liabilities: | ||
Accounts payable | $ 3,695 | $ 4,267 |
Accrued expenses and other current liabilities | 8,149 | 5,854 |
Accrued expenses due to affiliates | 729 | 560 |
Customer deposits | 490 | 673 |
Lines of credit | 503 | 696 |
Total current liabilities | 13,566 | 12,050 |
Other long-term liabilities | 4,120 | 3,672 |
Total liabilities | 17,686 | 15,722 |
Equity: | ||
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Preferred stock, |
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Authorized and available shares- 2,445,598 | ||
Issued and outstanding shares- | ||
None - September 30, 2014 and | ||
None - December 31, 2013 | - | - |
Common stock, |
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Authorized shares - 47,000,000 | ||
Issued shares - | ||
20,680,717 - September 30, 2014 and | ||
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207 | 207 |
Treasury stock at cost | ||
124,163 shares - September 30, 2014 and | ||
181,931 shares - December 31, 2013 | (188) | (356) |
Additional paid-in capital | 15,589 | 15,339 |
Accumulated other comprehensive loss | (1,409) | (1,031) |
Retained earnings | 2,244 | 1,654 |
Total |
16,443 | 15,813 |
Non-controlling interest | 4,026 | 2,743 |
Total Equity | 20,469 | 18,556 |
Total liabilities and equity | $ 38,155 | $ 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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