Core Points - SPAR Group's stockholders approved the merger with Highwire Capital on October 25, 2024, with a merger consideration of $2.50 per share [1][2] - The merger is an all-cash transaction, and the agreement was established on August 30, 2024 [2] - SPAR Group's management expresses commitment to completing the transaction and delivering value to shareholders [3] Company Overview - SPAR Group, Inc. provides merchandising, marketing, and distribution services, focusing on improving brand experiences and transforming retail spaces [5] - Highwire Capital aims to transform middle-market businesses by integrating innovative technologies with traditional operating models, driving efficiency and fostering industry advancements [4]

Core Viewpoint - SPAR Group, Inc. has experienced a decline in stock performance over the past month, with a return of -7.1%, contrasting with the Zacks S&P 500 composite's increase of +3.5% and the Zacks Business - Services industry's gain of +6.4% [1] Earnings Estimate Revisions - The current quarter's earnings estimate for SPAR Group is projected at $0.02 per share, reflecting a significant decrease of -81.8% from the same quarter last year [4] - The consensus earnings estimate for the current fiscal year stands at $0.46, indicating a year-over-year increase of +119.1% [4] - For the next fiscal year, the consensus earnings estimate is $0.12, which represents a decline of -73.9% compared to the previous year [5] Revenue Projections - The consensus sales estimate for the current quarter is $39 million, showing a year-over-year decrease of -40.1% [8] - Estimated revenues for the current and next fiscal years are $207 million and $172 million, indicating changes of -21.2% and -16.9%, respectively [8] Last Reported Results - In the last reported quarter, SPAR Group's revenues were $37.79 million, a year-over-year decline of -43.9% [9] - The reported EPS of $0.02 matches the EPS from the same period last year [9] - The company reported revenues that were -10.03% below the Zacks Consensus Estimate of $42 million [10] Valuation - SPAR Group has received an A grade in the Zacks Value Style Score, suggesting it is trading at a discount compared to its peers [14] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [12][13] Conclusion - The Zacks Rank 3 indicates that SPAR Group may perform in line with the broader market in the near term, despite the current market buzz [15]

Core Viewpoint - SPAR Group, Inc. has experienced a significant decline in stock performance, with a return of -11.6% over the past month, contrasting with the S&P 500's +0.6% and the Business - Services industry's +0.1% [1] Earnings Estimates - SPAR Group is expected to report earnings of $0.02 per share for the current quarter, reflecting a year-over-year decrease of -81.8% [4] - The consensus earnings estimate for the current fiscal year stands at $0.46, indicating a year-over-year increase of +119.1% [4] - For the next fiscal year, the consensus estimate is $0.12, representing a decline of -73.9% compared to the previous year [5] - Over the last 30 days, the earnings estimates have remained unchanged [4][5] Revenue Projections - The consensus sales estimate for the current quarter is $39 million, which shows a year-over-year decline of -40.1% [8] - For the current fiscal year, the sales estimate is $207 million, indicating a decrease of -21.2%, while the next fiscal year's estimate is $172 million, reflecting a -16.9% change [8] Recent Performance - In the last reported quarter, SPAR Group generated revenues of $37.79 million, a year-over-year decline of -43.9% [9] - The reported revenues were below the Zacks Consensus Estimate of $42 million, resulting in a revenue surprise of -10.03% [10] - The company has surpassed consensus EPS estimates two times and revenue estimates three times over the last four quarters [10] Valuation Metrics - SPAR Group is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [14] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [12][13] Overall Outlook - The Zacks Rank for SPAR Group is 3 (Hold), suggesting that the stock may perform in line with the broader market in the near term [6][15]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the first quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from __________ to __________. Commission file number 0-27408 SPAR GROUP, INC. (Exact name of Registrant as specified ...

Group 1 - SPAR Group, Inc. (SGRP) stock closed at $2.41, showing a +0.42% change from the previous day, outperforming the S&P 500, which fell by 0.28% [1] - Over the past month, SGRP shares have decreased by 3.23%, underperforming the Business Services sector's gain of 1.14% and the S&P 500's gain of 0.41% [1] Group 2 - Analysts expect SPAR Group, Inc. to report earnings of $0.02 per share, indicating no growth compared to the same quarter last year, with revenue projected at $42 million, down 37.62% year-over-year [2] - Full-year Zacks Consensus Estimates predict earnings of $0.46 per share and revenue of $207 million, reflecting year-over-year changes of +119.05% for earnings and -21.22% for revenue [3] Group 3 - Recent analyst estimate revisions for SPAR Group, Inc. suggest a positive outlook for the company's business trends, as these revisions are correlated with near-term share price momentum [4][3] - The Zacks Rank system, which evaluates estimate changes, currently ranks SPAR Group, Inc. as 3 (Hold), with the consensus EPS projection remaining unchanged over the past 30 days [5] Group 4 - SPAR Group, Inc. has a Forward P/E ratio of 5.22, which is significantly lower than the industry average Forward P/E of 19, indicating a valuation discount [6] - The Business Services industry, which includes SPAR Group, has a Zacks Industry Rank of 83, placing it in the top 33% of over 250 industries [6][7]

Group 1 - SPAR Group, Inc. closed at $2.48, with a +1.64% change from the previous session, outperforming the S&P 500's daily gain of 0.9% [1] - The company's shares gained 1.67% over the previous month, underperforming the Business Services sector and S&P 500, both of which gained 3.15% [1] Group 2 - The upcoming earnings report is expected to show an EPS of $0.02, unchanged from the same quarter last year, with a forecasted revenue of $42 million, indicating a 37.62% decline year-over-year [2] - For the entire fiscal year, earnings are projected at $0.46 per share, a +119.05% change, while revenue is expected to be $207 million, reflecting a -21.22% change from the prior year [3] Group 3 - Recent changes in analyst estimates are crucial as they reflect near-term business trends, with upward revisions indicating analysts' positivity towards the company's operations [4] - The Zacks Rank system, which assesses estimate changes, currently ranks SPAR Group, Inc. at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [6] Group 4 - SPAR Group, Inc. has a Forward P/E ratio of 5.3, significantly lower than the industry average of 17.21, suggesting the company is trading at a discount [7] - The Business Services industry, to which SPAR Group belongs, has a Zacks Industry Rank of 190, placing it in the bottom 25% of over 250 industries [7]

Core Viewpoint - Apollo Technology Capital Corp. expresses concerns regarding the proposed take-private transaction of SPAR Group, Inc. by Highwire Capital, highlighting issues related to financing credibility and potential harm to SPAR stockholders [1][2][5]. Financing Concerns - Apollo Capital raises serious questions about the credibility and certainty of Highwire's financing for the take-private transaction, noting that Highwire is only obligated to pay a fee of $1.76 million if financing fails, which is insufficient compensation for SPAR and its stockholders [2][4]. - The transaction is contingent upon SPAR maintaining a balance sheet cash of no less than $14.2 million, but SPAR has not disclosed its current cash expectations at closing [2][4]. Disclosure Issues - Apollo Capital calls for the SPAR Board to provide full and fair disclosure regarding Highwire's proposed financing and SPAR's cash balance expectations, as the lack of this information prevents stockholders from making an informed vote [3][5]. - The merger agreement allows Highwire to use "commercially reasonable efforts" to secure financing, but there is no commitment of equity from Highwire, raising concerns about the transaction's viability [4][5]. Board Recommendations - Despite the uncertainties surrounding the financing, SPAR's Board has recommended that stockholders vote in favor of the transaction, which Apollo Capital believes is not in the best interest of SPAR's public stockholders [5][6].

The most recent trading session ended with SPAR Group, Inc. (SGRP) standing at $2.44, reflecting a +0.41% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.17%. Elsewhere, the Dow lost 0.44%, while the tech-heavy Nasdaq lost 0.04%. The company's shares have seen an increase of 1.67% over the last month, surpassing the Business Services sector's gain of 1.44% and the S&P 500's gain of 1.25%. Market participants will be closely following the financial results of ...

The most recent trading session ended with SPAR Group, Inc. (SGRP) standing at $2.41, reflecting no shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.25% for the day. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%. The company's shares have seen an increase of 54.49% over the last month, surpassing the Business Services sector's gain of 3.75% and the S&P 500's gain of 1.65%. Analysts a ...

Company Performance - SPAR Group, Inc. closed at $2.40, with no change from the previous day, while the S&P 500, Dow, and Nasdaq experienced losses of 0.29%, 0.25%, and 0.31% respectively [1] - Over the past month, SPAR Group's shares have appreciated by 40.35%, significantly outperforming the Business Services sector's gain of 4.82% and the S&P 500's gain of 1.57% [1] Earnings Projections - The upcoming earnings report for SPAR Group is projected to show earnings per share (EPS) of $0.02, indicating no change from the same quarter last year, while revenue is expected to be $42 million, reflecting a 37.62% drop compared to the year-ago quarter [2] - For the full year, the Zacks Consensus Estimates project earnings of $0.46 per share and revenue of $207 million, representing changes of +119.05% and -21.22% respectively from the previous year [3] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for SPAR Group are important as they indicate the changing nature of near-term business trends, with positive revisions suggesting analysts' confidence in the company's performance [4] - The Zacks Rank system, which assesses stocks from 1 (Strong Buy) to 5 (Strong Sell), currently ranks SPAR Group at 3 (Hold), with the Zacks Consensus EPS estimate remaining stagnant over the past month [6] - SPAR Group's Forward P/E ratio is 5.22, which is a discount compared to the industry's average Forward P/E of 18.59 [7] Industry Context - The Business Services industry, which includes SPAR Group, has a Zacks Industry Rank of 144, placing it within the bottom 44% of over 250 industries [7] - Research indicates that industries in the top 50% rated by Zacks outperform those in the bottom half by a factor of 2 to 1 [8]