Core Insights - SPAR Group's shares have returned +9.5% over the past month, outperforming the S&P 500 composite's +3.3% and the Zacks Business - Services industry's -1.6% [1] Earnings Estimates Revisions - For the current quarter, SPAR Group is expected to post break-even earnings per share, reflecting a -100% change from the year-ago quarter, with the Zacks Consensus Estimate also changing -100% over the last 30 days [4] - The consensus earnings estimate for the next fiscal year is $0.12, indicating a -61.3% change from the previous year's expectations, with no change in the estimate over the past month [5] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $44 million, representing a -33.3% year-over-year change. For the current and next fiscal years, sales estimates are $193.7 million and $172 million, indicating -26.3% and -11.2% changes, respectively [8] - SPAR Group reported revenues of $68.69 million in the last quarter, showing a +6.7% year-over-year change, with EPS of $0.06 remaining unchanged from the previous year [9] Performance and Valuation - Over the last four quarters, SPAR Group surpassed consensus EPS estimates three times and topped revenue estimates two times [10] - The current consensus earnings estimate for the fiscal year is $0.31, reflecting a +47.6% change from the prior year, with no change in the estimate over the last 30 days [14] - SPAR Group is graded A in valuation metrics, indicating it is trading at a discount to its peers [20] Market Position - SPAR Group is currently on Zacks.com's list of the most searched stocks, suggesting increased interest that could influence its performance [2] - The Zacks Rank 2 (Buy) indicates that SPAR Group may outperform the broader market in the near term [15][21]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the task of finding cutting-edge growth stocks ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics a ...

Core Viewpoint - SPAR Group, Inc. has seen a significant stock performance increase of +42.5% over the past month, outperforming the Zacks S&P 500 composite's +4.8% and the Zacks Business - Services industry's +3% [1] Earnings Estimates - SPAR Group is expected to post break-even earnings per share for the current quarter, reflecting a year-over-year change of -100%, with the Zacks Consensus Estimate also changing -100% over the last 30 days [4] - For the current fiscal year, the consensus earnings estimate is $0.31, indicating a +47.6% change from the prior year, with a +50% increase in the estimate over the last 30 days [4] - The consensus earnings estimate for the next fiscal year is $0.12, showing a -61.3% change from the expected report a year ago, with no change in the estimate over the past month [5] Revenue Growth - The consensus sales estimate for the current quarter is $44 million, indicating a year-over-year change of -33.3%, while estimates for the current and next fiscal years are $193.7 million and $172 million, reflecting -26.3% and -11.2% changes, respectively [9] Last Reported Results - SPAR Group reported revenues of $68.69 million in the last quarter, a +6.7% year-over-year change, with an EPS of $0.06 matching the previous year [10] - The reported revenues exceeded the Zacks Consensus Estimate of $48 million by +43.11%, and the EPS surprise was +400% [10] - Over the last four quarters, SPAR Group surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [11] Valuation - SPAR Group is graded A in the Zacks Value Style Score, indicating it is trading at a discount to its peers [15]

SPAR Group, Inc. (SGRP) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a chan ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the ...

SPAR Group (SGRP) is a stock many investors are watching right now. SGRP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8, which compares to its industry's average of 19.37. Over the past year, SGRP's Forward P/E has been as high as 32.50 and as low as 8, with a median of 16.05. Investors should also recognize that SGRP has a P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as ...

[SPAR Group, Inc. Reports First Quarter 2024 Results](index=1&type=section&id=SPAR%20Group%2C%20Inc.%20Reports%20First%20Quarter%202024%20Results) [Performance Overview](index=1&type=section&id=Performance%20Overview) SPAR Group reported strong Q1 2024 results, driven by U.S. remodel business recovery and Canadian performance, while simplifying its structure Q1 2024 Key Financial Highlights (YoY) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Consolidated Revenues | $68.7 million | $64.4 million | +6.7% | | Consolidated Operating Income | $9.6 million | $3.2 million | +204% | | Diluted EPS | $0.28 | $0.04 | +600% | - The strong financial performance was attributed to the U.S. remodel business recovering more quickly than planned and continued excellent results from the Canadian business[2](index=2&type=chunk) - The company is significantly simplifying its structure through strategic divestitures, acquisition of minority interest in its U.S. joint venture, and share repurchases[2](index=2&type=chunk) [Detailed Financial Analysis](index=1&type=section&id=First%20Quarter%202024%20Financial%20Results) Q1 2024 net revenues increased, driven by Americas growth, while operating income surged due to a significant one-time gain from strategic divestitures Q1 2024 Net Revenues by Segment | Segment | Revenue (Q1 2024) | % of Total | YoY Change | | :--- | :--- | :--- | :--- | | Americas | $54.7 million | 79.6% | +12.5% | | EMEA | $8.3 million | 12.0% | -14.7% | | APAC | $5.8 million | 8.4% | -5.5% | | **Total** | **$68.7 million** | **100%** | **+6.7%** | - Gross profit margin declined from **22.0% to 18.3% YoY**, caused by a mix shift to the remodeling business with higher costs and margin pressure in South Africa from government-mandated wage increases[4](index=4&type=chunk) - Operating income rose to **$9.6 million**, which included a **$7.2 million** gain on the sale of business from strategic divestitures[5](index=5&type=chunk) Q1 2024 GAAP vs. Non-GAAP Net Income | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income (GAAP) | $6.6 million | $866 thousand | | Diluted EPS (GAAP) | $0.28 | $0.04 | | Adjusted Net Income (Non-GAAP) | $1.3 million | $1.3 million | | Adjusted Diluted EPS (Non-GAAP) | $0.06 | $0.05 | [Financial Position and Liquidity](index=2&type=section&id=Financial%20Position%20as%20of%20March%2031%2C%202024) As of March 31, 2024, SPAR Group maintained a strong liquidity position with **$21.0 million** in total worldwide liquidity and **$38.2 million** in net working capital - Total worldwide liquidity was **$21.0 million** at the end of the quarter[10](index=10&type=chunk) - The company held **$16.6 million** in cash and cash equivalents[10](index=10&type=chunk) - Net cash provided by operating activities for the three months was **$615 thousand**[10](index=10&type=chunk) - The company ended the quarter with net working capital of **$38.2 million**[10](index=10&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated financial statements, detailing its performance and financial position [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2024 net revenues grew, and operating income significantly increased to **$9.6 million**, primarily due to a **$7.2 million** gain on business sale, leading to a surge in net income Q1 2024 vs Q1 2023 Income Statement Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net revenues | $68,693 | $64,380 | | Gross profit | $12,542 | $14,138 | | Gain on sale of business | $(7,157) | - | | Operating income | $9,572 | $3,150 | | Net income attributable to SPAR Group, Inc. | $6,627 | $866 | | Diluted income per common share | $0.28 | $0.04 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to **$104.5 million**, while total liabilities rose to **$64.5 million**, with stockholders' equity remaining flat Balance Sheet Summary (in thousands) | Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $16,629 | $10,719 | | Total current assets | $93,194 | $76,109 | | **Total assets** | **$104,531** | **$90,281** | | Total current liabilities | $55,023 | $48,565 | | **Total liabilities** | **$64,475** | **$50,035** | | **Total stockholders' equity** | **$40,056** | **$40,246** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2024, net cash from operations was **$615 thousand**, with financing activities providing **$6.3 million**, leading to a **$5.9 million** net increase in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $615 | $2,936 | | Net cash used in investing activities | $(878) | $(343) | | Net cash provided by (used in) financing activities | $6,344 | $(628) | | **Net increase in cash and cash equivalents** | **$5,910** | **$1,908** | [Supplemental Information](index=7&type=section&id=Supplemental%20Information) This section provides supplemental financial information, including segment performance and GAAP to non-GAAP financial measure reconciliations [Segment Performance](index=7&type=section&id=Segment%20Information) In Q1 2024, the Americas segment was the standout performer with revenue increasing to **$54.7 million** and operating income jumping to **$9.4 million**, offsetting declines in other regions Segment Performance Q1 2024 vs Q1 2023 (in thousands) | Segment | Net Revenues (2024) | Net Revenues (2023) | Operating Income (2024) | Operating Income (2023) | | :--- | :--- | :--- | :--- | :--- | | Americas | $54,655 | $48,578 | $9,427 | $2,521 | | APAC | $5,761 | $6,100 | $(216) | $(192) | | EMEA | $8,277 | $9,702 | $361 | $821 | | **Total** | **$68,693** | **$64,380** | **$9,572** | **$3,150** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures to provide a clearer view of core performance, with Q1 2024 Adjusted Net Income at **$1.3 million** and Consolidated Adjusted EBITDA at **$3.4 million** - Non-GAAP measures are presented to supplement GAAP results by excluding items like one-time gains, restructuring costs, and other special items to better reflect core operating performance[26](index=26&type=chunk) Adjusted Net Income Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income attributable to SPAR Group Inc. | $6,627 | $866 | | Adjustments (net of taxes) | $(5,292) | $387 | | **Adjusted Net income attributable to SPAR Group, Inc.** | **$1,335** | **$1,253** | Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Consolidated Net Income | $7,181 | $1,777 | | Adjustments (Depreciation, Interest, Taxes, etc.) | $2,902 | $1,905 | | **Consolidated EBITDA** | **$10,083** | **$3,682** | | Further Adjustments (Gain on Sale, etc.) | $(6,699) | $490 | | **Consolidated Adjusted EBITDA** | **$3,384** | **$4,172** | | **Adjusted EBITDA attributable to SPAR Group, Inc.** | **$2,466** | **$2,896** | [Other Disclosures](index=2&type=section&id=Other%20Disclosures) This section provides additional disclosures, including conference call details, company overview, and cautionary notes on forward-looking statements [Conference Call Information](index=2&type=section&id=Conference%20Call) The company scheduled a conference call for May 15, 2024, at 10:00 a.m. Eastern Time to discuss its Q1 2024 results - A conference call to discuss Q1 2024 results was scheduled for May 15, 2024, at 10:00 a.m. Eastern Time[11](index=11&type=chunk) [About SPAR Group, Inc.](index=3&type=section&id=About%20SPAR%20Group%2C%20Inc.) SPAR Group is a prominent global merchandising and marketing services company with over 50 years of experience, operating in more than eight countries - SPAR Group is a leading global merchandising and marketing services company with over 50 years of experience, operating in more than eight countries[12](index=12&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements subject to various risks and uncertainties, where actual results may differ materially from expectations - The report contains 'forward-looking statements' which involve known and unknown risks and uncertainties[13](index=13&type=chunk)[15](index=15&type=chunk) - Readers are advised to carefully consider these statements and the associated risk factors described in SEC filings and not to place undue reliance on them[15](index=15&type=chunk)[16](index=16&type=chunk)

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 March 31, 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. Emerging Growth Company ☐ If an emerging gr ...

Financial Data and Key Metrics Changes - For Q1 2024, consolidated revenue increased by 6.7% year-over-year, totaling $68.7 million, with net income attributable to SPAR at $6.6 million or $0.28 per diluted share, compared to $0.04 per diluted share in the prior year [16][44][57] - SG&A expenses decreased by nearly $850,000, representing a 220 basis point improvement as a percentage of revenue, totaling $9.6 million or 14% of revenues [16][17] - Consolidated EBITDA for Q1 2024 was $10.1 million, significantly up from $3.7 million in the prior year [44][57] Business Line Data and Key Metrics Changes - The Americas segment saw a revenue increase of 12.5%, while EMEA and APAC segments experienced declines of 14.7% and 5.5%, respectively [43] - The US business, including the Resource Plus joint venture, grew by 17%, and Canada grew by 79% [42] - The remodeling business in the US accelerated, growing by 98% compared to the same quarter last year [42] Market Data and Key Metrics Changes - The South African business experienced a significant drop in gross margin by 910 basis points, contributing to overall margin compression [4][5] - The company exited several international markets, including South Africa and Brazil, to simplify operations and focus on core markets [8][9] Company Strategy and Development Direction - The company is focused on simplifying its operations and has exited several international markets to enhance shareholder value [8][9] - The core business remains in merchandising, remodeling, and distribution, primarily in the US and Canada, with a strong emphasis on client-centric services [10][11] - The company aims to capitalize on macro trends such as low unemployment and retail staffing challenges to drive growth [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, highlighting strong demand for services in the US and Canada and a positive response from clients regarding recent strategic changes [17][35] - The management noted that the remodeling business is recovering faster than expected, driven by pent-up demand from clients [50][63] Other Important Information - The company reported total worldwide liquidity of $21 million, with $16.6 million in cash and cash equivalents [6] - The company has announced a share buyback of 1 million shares from a major shareholder and acquired the balance of the Resource Plus joint venture [55] Q&A Session Summary Question: What caused the revenue increase despite selling off several businesses? - Management indicated that the core business is growing, with the US and Canada combined up 22%, and emphasized the strong performance of new clients [60][63] Question: What is the margin profile expected if the Brazilian business is exited? - Management confirmed that Brazilian gross margins are lower than those in Canada and the US, and exiting Brazil is expected to benefit overall margins [52] Question: What is the company's approach to capital allocation moving forward? - The company is considering both share repurchases and acquisitions, focusing on both large and small opportunities to enhance capabilities and shareholder value [25][53]