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]

Company Operations and Structure - As of December 31, 2023, the company operated in eight countries, including the United States, Canada, Mexico, Brazil, South Africa, China, Japan, and India[20]. - The Company operates in various regions, with 100% ownership in entities in the USA, Canada, and Japan, while maintaining 51% ownership in several subsidiaries across Latin America, Asia, and EMEA[38]. - The Company reported a labor force of approximately 24,288 people in 2023, with 17,032 in the Americas, 2,001 in Asia-Pacific, and 5,255 in EMEA[50][52][53][54]. - The Company operates through three divisions: Americas, Asia Pacific (APAC), and Europe, Middle East, and Africa (EMEA)[36]. Business Strategy and Growth - The company aims to grow its core business, introduce or acquire new services, and invest in technology to achieve top-line growth and expanded margins[32]. - The company's growth strategy focuses on three priorities: growing the core business, introducing or acquiring new services, and investing in technology[32]. - The company aims to expand its services to existing clients while actively pursuing new business opportunities through proposals and marketing efforts[33]. - The company believes in testing new ideas and services to increase revenues and expand client relationships, adapting to the changing retail landscape[34]. Technology and Innovation - The company’s technology, SPARView, is considered a core competitive strength that enables better communication and optimization of services[35]. - The company recognizes its SPARView technology as a competitive advantage, enabling better communication, planning, and optimization of services[35]. - The Company invested $1.0 million in technology development in 2023, down from $1.5 million in 2022, focusing on proprietary software for scheduling and reporting[49]. - The Company’s global technology systems, including co-owned software, are crucial for operational efficiency and are licensed to various subsidiaries and vendors[49]. - The company is committed to providing higher value services over time through continuous adaptation and innovation in technology[35]. Market Position and Client Base - The company believes the merchandising and marketing services industry will continue to grow, driven by the need for efficiency in retail[28]. - The Company does not have any clients that represented 10% or more of its net revenue for the years ended December 31, 2023, and 2022, indicating a diversified client base[48]. - The Company provides six principal types of services, including Merchandising and Marketing, Assembly and Installation, and Business Analytics, aimed at enhancing retail environments and customer engagement[39][40][41][42][43][44]. - The Company serves a wide range of retail segments, including mass merchandisers, grocery, and consumer electronics, ensuring comprehensive market coverage[46][47]. Financial Performance and Profitability - The Company emphasizes the importance of operating profit as a key indicator of long-term growth and profitability, focusing on reinvesting profits into local markets[38]. - The marketing services industry is highly competitive, with the Company competing against both large enterprises and smaller firms, highlighting the need for quality service and technological development[57]. Employee and Vendor Relations - The Company maintains good relations with its employees and independent vendors, which is crucial for operational efficiency[56]. - The Company continues to evaluate its business model regarding the use of third-party independent contractors in response to changing client requirements and regulatory environments[55]. Recent Developments - The company divested its stake in the Australian joint venture effective December 31, 2023, which will impact future financial results[36]. - The company actively pursues requests for proposals (RFPs) and participates in industry events to expand its business[33]. - The company recognizes the importance of adapting to changes in technology and market trends to provide better results for clients[35].

SPAR Group, Inc. (NASDAQ:SGRP) Q4 2023 Earnings Conference Call April 1, 2024 10:00 AM ET Company Participants Sandy Martin - Investor Relations, Three Part Advisors Michael Matacunas - President and Chief Executive Officer Antonio Calisto Pato - Chief Financial Officer Conference Call Participants Theodore O'Neill - Litchfield Hills Research Operator Hello and welcome to the SPAR Group Fourth Quarter and Full Year 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operat ...

SPAR Group, Inc. (NASDAQ:SGRP) Q3 2023 Earnings Conference Call November 14, 2023 10:00 AM ET Company Participants Sandy Martin - IR, Three Part Advisors Michael Matacunas - CEO Antonio Calisto Pato - CFO Conference Call Participants Theodore O'Neill - Litchfield Hills Research Operator Good morning, and welcome to the SPAR Group Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Sandy Marti ...

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, 2023 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 ...