SPAR Group, Inc. (NASDAQ: SGRP) (“SPAR”, “SPAR
Group” or the “Company”), a leading global provider of
merchandising, marketing, and distribution services today reported
financial and operating results for the three and nine months ended
September 30, 2023.
Mike Matacunas, the Company’s President
and Chief Executive Officer, commented, “Results were in
line with expectations for the third quarter with continued
strength in our core merchandising business. Our U.S. merchandising
business grew by 27%, Canada merchandising grew by 23%, Mexico by
28% and Brazil by 10%. We believe there is continued opportunity
and a growing addressable market as brands and retailers turn to
SPAR for the last product touch and driving the consumer
experience.
“The great strength in our core merchandising
business was offset on a consolidated basis by our Asia Pacific
businesses, smaller joint ventures and the U.S. retail remodel
business that is beginning to recover after a slowing earlier in
the year. At the same time, we delivered higher margins for the
fourth quarter in a row. Our consolidated gross margin is 150 basis
points higher than the same period last year with some really
strong improvements in U.S. merchandising gross margin up 290 basis
points, South Africa up by 90 basis points and Brazil up 230 basis
points. I am pleased with our continued progress on profitability
and our ability to successfully recruit, retain and reward great
talent to serve our clients. We are up 140 basis points year to
date on gross margin.
“I am also pleased that our wholly owned
businesses continue to outperform. You will note that our
attributable Adjusted EBITDA is up 21.5% year on year for the
quarter and 23.8% up for the first nine months of the year. This is
a signal of the growing strength in our core and our ability to
execute.
“While we focus on growth and profitability, we
continue to explore strategic alternatives that will create value
for our shareholders. We do not have an update today, but we remain
committed to this work and unlocking the potential of this great
company for years to come,” concluded Matacunas.
Third Quarter 2023 Financial
Results
Net revenues were $67.3 million, comprised of
$53.8 million from Americas (79.9%), $7.9 million from EMEA
(11.7%), and $5.7 million from APAC (8.4%). Total net revenue
decreased by 3.6%, down 4.5% on a constant currency basis. Americas
revenues were comparable to the prior year. EMEA revenues declined
by 12.1% and APAC decreased by 20.6% from the prior year quarter.
Gross profit was $13.4 million, or 19.9% of
revenues, compared to $12.8 million, or 18.4% of revenues, in the
prior year quarter. This 150-basis point improvement in gross
profit margin was due to a number of planned initiatives, which
included improved contract terms and pricing, system enhancements
and other cost containments, as well as services mix shifts in the
quarter.
Selling, general and administrative (SG&A)
expenses were $11.3 million, or 16.8% of revenues (16.5% of
revenues excluding non-recurring costs associated with reviewing
strategic alternatives), compared to $10.6 million, or 15.2% of
revenues, in the prior year quarter. Non-recurring
costs associated with reviewing strategic alternatives were $143
thousand during the third quarter.
Operating income was $1.5 million, down 10.4%,
versus operating income of $1.7 million from the prior year
quarter.
Net income attributable to SPAR Group, Inc. was
$259 thousand, or $0.01 per share, compared to a net loss
attributable to SPAR Group Inc. of $32 thousand, or $0.00 per
share, in the year-ago quarter. Non-GAAP net income attributable to
SPAR Group, Inc. (1) in the quarter was $570 thousand, or $0.02 per
share, compared to $212 thousand, or $0.01 per share, in the
year-ago quarter.
Consolidated Adjusted EBITDA (1) in the 2023
quarter was $2.5 million, comparable to $2.5 million in the prior
year. Adjusted EBITDA attributable to SPAR Group, Inc. (1) in the
2023 quarter was $1.5 million, compared to $1.2 million in the
prior year.
(1) Adjusted non-GAAP Net income attributable to
SPAR Group, Inc. and Adjusted Diluted earnings per share
attributable to SPAR Group, Inc., and Adjusted EBITDA are non-GAAP
financial measures as defined and reconciled below.
First Nine Months 2023 Financial
Results
Net revenues were $197.6 million, comprised of
$154.5 million from Americas (78.2%) and $25.8 million from EMEA
(13.0%), and $17.4 million from APAC (8.8%). Total net revenue
increased by 0.5%, up 2.4% on a constant currency basis, and
Americas revenues increased over the prior year by 3.0%, EMEA
decreased by 5.6%, and APAC decreased by 9.9% from the prior year
period.
Gross profit was $40.6 million, or 20.5% of
revenues, compared to $37.6 million, or 19.1% of revenues, in the
prior year period. This 140-basis point improvement in gross profit
margins was due to a number of planned initiatives, which included
improved contract terms and pricing, system enhancements and other
cost containments.
Selling, general and administrative (SG&A)
expenses were $32.3 million, or 16.4% of revenues (16.1% of
revenues excluding non-recurring costs associated with reviewing
strategic alternatives), compared to $30.0 million, or 15.2% of
revenues, in the prior year period. Non-recurring costs associated
with reviewing strategic alternatives were $571 thousand during the
first nine months of 2023.
Operating income was $6.7 million, up 8.9%,
versus operating income of $6.1 million from the prior year
period.
Net income attributable to SPAR Group, Inc. was
$1.8 million, or $0.08 per share, comparable to net income
attributable to SPAR Group Inc. of $1.8 million, or $0.08 per
share, in the nine-month period a year ago. Non-GAAP net income
attributable to SPAR Group, Inc. (1) in the period was $2.5
million, or $0.11 per share, compared to $2.0 million, or $0.09 per
share, in the year-ago period.
Consolidated Adjusted EBITDA (1) in the 2023
period was $9.2 million, compared to Consolidated Adjusted EBITDA
of $7.9 million in the prior year. Adjusted EBITDA attributable to
SPAR Group, Inc. (1) in the 2023 period was $6.0 million, compared
to $4.9 million in the prior year.
(1) Adjusted non-GAAP Net income attributable to
SPAR Group, Inc. and Adjusted Diluted earnings per share
attributable to SPAR Group, Inc., and Adjusted EBITDA are non-GAAP
financial measures as defined and reconciled below.
Financial Position as of September 30,
2023
The Company’s total worldwide liquidity at the
end of the first nine months was $12.4 million, with $8.0 million
in cash and cash equivalents and $4.4 million of unused
availability as of September 30, 2023. For the nine
months ended September 30, 2023, net cash provided by operating
activities was $1.6 million. The Company ended the nine months with
positive net working capital of $27.5 million at September 30,
2023.
Conference Call
The Company will conduct a conference call today
at 10:00 a.m Eastern Time to discuss financial and operating
results for the third quarter and nine months ended September 30,
2023. To access the call, live by phone, dial 1-833-630-1542
(Domestic), 1-412-317-1821 (International) and ask for the SPAR
Group call at least 10 minutes prior to the start time.
A telephonic replay will be available through November 21, 2023, by
calling 1-877-344-7529 using passcode ID 2719462#. A webcast of the
call will also be available live and for later replay on the
Company’s Investor Relations website at
https://investors.sparinc.com/events-and-presentations.
About SPAR Group, Inc.
SPAR Group is a leading global merchandising and
marketing services company, providing a broad range of services to
retailers, manufacturers, and distributors around the world. With
more than 50 years of experience, 25,000+ merchandising specialists
around the world, an average of 200,000+ store visits a week and
long-term relationships with some of the world’s leading
manufacturers and retail businesses, we provide specialized
capabilities across more than nine countries. Our unique
combination of scale, merchandising and marketing expertise,
combined with our unwavering commitment to excellence, separate us
from the competition. For more information, please visit the SPAR
Group’s website at http://www.sparinc.com.
Cautionary Note Regarding
Forward-Looking Statements
This Press Release contains, and the above
referenced recorded comments, will contain “forward-looking
statements” within the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, made by, or
respecting, SPAR Group, Inc. (“SGRP”) and its
subsidiaries (together with SGRP, “SPAR”, “SPAR Group” or the
“Company”), filed in a Quarterly Report on Form 10-Q by SGRP with
the Securities and Exchange Commission (the
“SEC”) expected to be filed on or about November 14, 2023.
There also are forward-looking statements contained in SGRP’s
Annual Report on Form 10-K for its fiscal year
ended December 31, 2022, as filed with
the SEC on April 17, 2023, and SGRP’s First
Amendment to Annual Report on Form 10-K/A for the year
ended December 31, 2022, as filed with
the SEC on May 1, 2023 (as so amended, the
“Annual Report”), and SGRP’s Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and other reports and statements as and
when filed with the SEC (including the Quarterly Report,
the Annual Report and the Proxy Statement, the Information
Statement, the Second Special Meeting Proxy/Information Statement,
each a “SEC Report”). “Forward-looking statements” are defined in
Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and other applicable
federal and state securities laws, rules and regulations, as
amended (together with the Securities Act and Exchange Act, the
“Securities Laws”).
The forward-looking statements made by the
Company in this Press Release may include (without limitation) any
expectations, guidance or other information respecting the pursuit
or achievement of the Company’s corporate strategic objectives. The
Company’s forward-looking statements also include, in particular
and without limitation, those made in “Business”, “Risk Factors”,
“Legal Proceedings”, and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in the Annual
Report. You can identify forward-looking statements in such
information by the Company’s use of terms such as “may”, “will”,
“expect”, “intend”, “believe”, “estimate”, “anticipate”,
“continue”, “plan”, “project” or similar words or variations or
negatives of those words.
You should carefully consider (and not place
undue reliance on) the Company’s forward-looking statements, risk
factors and the other risks, cautions and information made,
contained or noted in or incorporated by reference into this Press
Release, the Annual Report, the Proxy Statement and the other
applicable SEC Reports that could cause the Company’s actual
performance or condition (including its assets, business, clients,
capital, cash flow, credit, expenses, financial condition, income,
liabilities, liquidity, locations, marketing, operations,
performance, prospects, sales, strategies, taxation or other
achievement, results, risks, trends or condition) to differ
materially from the performance or condition planned, intended,
anticipated, estimated or otherwise expected by the Company
(collectively, “expectations”) and described in the information in
the Company’s forward-looking and other statements, whether
expressed or implied. Although the Company believes them to be
reasonable, those expectations involve known and unknown risks,
uncertainties, and other unpredictable factors (many of which are
beyond the Company’s control) that could cause those expectations
to fail to occur or be realized or such actual performance or
condition to be materially and adversely different from the
Company’s expectations. In addition, new risks and uncertainties
arise from time to time, and it is impossible for the Company to
predict these matters or how they may arise or affect the Company.
Accordingly, the Company cannot assure you that its expectations
will be achieved in whole or in part, that the Company has
identified all potential risks, or that the Company can
successfully avoid or mitigate such risks in whole or in part, any
of which could be significant and materially adverse to the Company
and the value of your investment in SGRP’s Common Stock.
You should also carefully review the risk
factors described in the Annual Report (See Item 1A – Risk Factors)
and any other risks, cautions or information made, contained or
noted in or incorporated by reference into the Annual Report, the
Proxy Statement or other applicable SEC Report. All forward-looking
and other statements or information attributable to the Company or
persons acting on its behalf are expressly subject to and qualified
by all such risk factors and other risks, cautions and
information.
The Company does not intend or promise, and the
Company expressly disclaims any obligation, to publicly update or
revise any forward-looking statements, risk factors or other risks,
cautions or information (in whole or in part), whether as a result
of new information, risks or uncertainties, future events or
recognition or otherwise, except as and to the extent required by
applicable law.
Investor Relations
Contact:Three Part Advisors, LLCSandy Martin / Phillip
KupperTel: 214-616-2207 or 817-778-8339
- Financial Statements Follow –
SPAR Group, Inc. and Subsidiaries |
Condensed Consolidated Statements of
Operations |
(unaudited) |
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
|
September 30 |
September 30 |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
67,333 |
|
$ |
69,832 |
|
$ |
197,649 |
|
$ |
196,626 |
|
Related party - cost of revenues |
|
|
1,628 |
|
|
2,535 |
|
|
4,807 |
|
|
7,201 |
|
Cost of revenues |
|
|
52,332 |
|
|
54,457 |
|
|
152,235 |
|
|
151,806 |
|
Gross profit |
|
|
13,373 |
|
|
12,840 |
|
|
40,607 |
|
|
37,619 |
|
Selling, general and administrative expense |
|
|
11,284 |
|
|
10,614 |
|
|
32,345 |
|
|
29,952 |
|
Depreciation and amortization |
|
|
548 |
|
|
506 |
|
|
1,574 |
|
|
1,524 |
|
Operating income |
|
|
1,541 |
|
|
1,720 |
|
|
6,688 |
|
|
6,143 |
|
Interest expense, net |
|
|
380 |
|
|
270 |
|
|
1,248 |
|
|
595 |
|
Other income, net |
|
|
(164 |
) |
|
(126 |
) |
|
(347 |
) |
|
(363 |
) |
Income before income tax expense |
|
|
1,325 |
|
|
1,576 |
|
|
5,787 |
|
|
5,911 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
227 |
|
|
676 |
|
|
1,806 |
|
|
1,942 |
|
Net income |
|
|
1,098 |
|
|
900 |
|
|
3,981 |
|
|
3,969 |
|
Net income attributable to non-controlling interest |
|
|
(839 |
) |
|
(932 |
) |
|
(2,217 |
) |
|
(2,180 |
) |
Net income (loss) attributable to SPAR Group, Inc. |
|
$ |
259 |
|
$ |
(32 |
) |
$ |
1,764 |
|
$ |
1,789 |
|
Basic income per common share attributable to SPAR Group, Inc. |
|
0.01 |
|
|
(0.00 |
) |
|
0.08 |
|
|
0.08 |
|
Diluted income per common share attributable to SPAR Group,
Inc. |
|
$ |
0.01 |
|
$ |
(0.00 |
) |
$ |
0.08 |
|
$ |
0.08 |
|
Weighted-average common shares outstanding– basic |
|
|
23,237 |
|
|
22,227 |
|
|
23,201 |
|
|
21,873 |
|
Weighted-average common shares outstanding – diluted |
|
|
23,376 |
|
|
22,227 |
|
|
23,350 |
|
|
22,010 |
|
|
|
|
|
|
|
|
|
|
|
SPAR Group, Inc. and Subsidiaries |
Condensed Consolidated Balance
Sheets (unaudited) |
(In thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
December 31, |
|
|
|
|
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
$ |
7,960 |
|
$ |
9,345 |
|
Accounts receivable, net |
|
|
|
|
|
|
65,650 |
|
|
63,714 |
|
Prepaid expenses and other current assets |
|
|
|
|
|
|
6,163 |
|
|
7,861 |
|
Total current assets |
|
|
|
|
|
|
79,773 |
|
|
80,920 |
|
Property and equipment, net |
|
|
|
|
|
|
3,094 |
|
|
3,261 |
|
Operating lease right-of-use assets |
|
|
|
|
|
|
2,023 |
|
|
969 |
|
Goodwill |
|
|
|
|
|
|
1,712 |
|
|
1,708 |
|
Intangible assets, net |
|
|
|
|
|
|
1,295 |
|
|
2,040 |
|
Deferred income taxes, net |
|
|
|
|
|
|
3,859 |
|
|
3,766 |
|
Other assets |
|
|
|
|
|
|
2,259 |
|
|
1,934 |
|
Total assets |
|
|
|
|
|
$ |
94,015 |
|
$ |
94,598 |
|
Liabilities and stockholders' equity: |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
|
|
$ |
10,533 |
|
$ |
10,588 |
|
Accrued expenses and other current liabilities |
|
|
|
|
|
|
16,674 |
|
|
20,261 |
|
Due to affiliates |
|
|
|
|
|
|
2,999 |
|
|
2,964 |
|
Customer incentives and deposits |
|
|
|
|
|
|
1,771 |
|
|
2,399 |
|
Lines of credit and short-term loans |
|
|
|
|
|
|
19,323 |
|
|
17,980 |
|
Current portion of operating lease liabilities |
|
|
|
|
|
|
946 |
|
|
363 |
|
Total current liabilities |
|
|
|
|
|
|
52,246 |
|
|
54,555 |
|
Operating lease liabilities, net of current portion |
|
|
|
|
|
|
1,077 |
|
|
606 |
|
Long-term debt |
|
|
|
|
|
|
922 |
|
|
1,376 |
|
Total liabilities |
|
|
|
|
|
|
54,245 |
|
|
56,537 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Series B convertible preferred stock, $0.01 par value per share:
2,000,000 shares authorized as of September 30, 2023 and December
31, 2022; 2,000,000 shares issued as of September 30, 2023 and
December 31, 2022; 650,000 shares and 854,753 shares outstanding as
of September 30, 2023 and December 31, 2022, respectively |
|
|
|
|
|
|
7 |
|
|
9 |
|
Common stock, $0.01 par value per share: 47,000,000 shares
authorized as of September 30, 2023 and December 31, 2022;
23,446,444 and 23,059,138 shares issued as of September 30, 2023
and December 31, 2022, respectively; 23,240,959 shares and
22,853,653 shares outstanding as of September 30, 2023 and December
31, 2022, respectively |
|
|
|
|
|
|
232 |
|
|
229 |
|
Treasury stock, at cost, 205,485 shares and 205,485 shares as of
September 30, 2023 and December 31, 2022, respectively |
|
|
|
|
|
|
(285 |
) |
|
(285 |
) |
Additional paid-in capital |
|
|
|
|
|
|
20,928 |
|
|
20,708 |
|
Accumulated other comprehensive loss |
|
|
|
|
|
|
(4,871 |
) |
|
(4,941 |
) |
Retained earnings |
|
|
|
|
|
|
8,471 |
|
|
6,707 |
|
Total stockholders' equity attributable to SPAR Group, Inc. |
|
|
|
|
|
|
24,482 |
|
|
22,427 |
|
Non-controlling interest |
|
|
|
|
|
|
15,288 |
|
|
15,634 |
|
Total stockholders’ equity |
|
|
|
|
|
|
39,770 |
|
|
38,061 |
|
Total liabilities and stockholders’ equity |
|
|
|
|
|
$ |
94,015 |
|
$ |
94,598 |
|
|
|
|
|
|
|
|
|
|
|
SPAR Group, Inc. and Subsidiaries |
Condensed Consolidated Statements of Cash
Flows |
(unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
2023 |
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
$ |
3,981 |
|
$ |
3,969 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
1,574 |
|
|
1,524 |
|
Amortization of operating lease right-of-use assets |
|
|
|
|
|
|
433 |
|
|
589 |
|
Bad debt expense, net of recoveries |
|
|
|
|
|
|
138 |
|
|
35 |
|
Deferred income tax expense (benefit) |
|
|
|
|
|
|
(15 |
) |
|
- |
|
Share-based compensation expense |
|
|
|
|
|
|
217 |
|
|
585 |
|
Majority stockholders change in control agreement |
|
|
|
|
|
|
- |
|
|
(420 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
|
|
|
|
(1,963 |
) |
|
(12,283 |
) |
Prepaid expenses and other current assets |
|
|
|
|
|
|
1,635 |
|
|
(4,164 |
) |
Accounts payable |
|
|
|
|
|
|
409 |
|
|
3,708 |
|
Operating lease liabilities |
|
|
|
|
|
|
(433 |
) |
|
(589 |
) |
Accrued expenses and other current liabilities |
|
|
|
|
|
|
(4,336 |
) |
|
2,884 |
|
Net cash provided by (used in) operating activities |
|
|
|
|
|
|
1,640 |
|
|
(4,162 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
|
|
|
|
(1,083 |
) |
|
(1,237 |
) |
Net cash used in investing activities |
|
|
|
|
|
|
(1,083 |
) |
|
(1,237 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Borrowings under line of credit |
|
|
|
|
|
|
80,151 |
|
|
33,151 |
|
Repayments under line of credit |
|
|
|
|
|
|
(79,520 |
) |
|
(23,904 |
) |
Payments to acquire noncontrolling interests |
|
|
|
|
|
|
(473 |
) |
|
- |
|
Distribution to noncontrolling investors |
|
|
|
|
|
|
(1,674 |
) |
|
- |
|
Net cash provided by (used in) financing activities |
|
|
|
|
|
|
(1,516 |
) |
|
9,247 |
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash |
|
|
|
|
|
|
(426 |
) |
|
(5,200 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
|
|
|
|
(1,385 |
) |
|
(1,352 |
) |
Cash, cash equivalents at beginning of period |
|
|
|
|
|
|
9,345 |
|
|
13,473 |
|
Cash, cash equivalents at end of period |
|
|
|
|
|
$ |
7,960 |
|
$ |
12,121 |
|
|
|
|
|
|
|
|
|
|
|
SPAR Group, Inc. and Subsidiaries |
Segment Information |
(unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
|
September 30, |
September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net Revenues: |
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
53,796 |
|
$ |
53,738 |
|
$ |
154,457 |
|
$ |
149,992 |
|
APAC |
|
|
5,674 |
|
|
7,147 |
|
|
17,432 |
|
|
19,351 |
|
EMEA |
|
|
7,863 |
|
|
8,947 |
|
|
25,760 |
|
|
27,283 |
|
Total net revenues |
|
$ |
67,333 |
|
$ |
69,832 |
|
$ |
197,649 |
|
$ |
196,626 |
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
1,328 |
|
$ |
1,441 |
|
$ |
5,894 |
|
$ |
5,862 |
|
APAC |
|
|
(218 |
) |
|
(341 |
) |
|
(510 |
) |
|
(1,491 |
) |
EMEA |
|
|
431 |
|
|
620 |
|
|
1,304 |
|
|
1,772 |
|
Total operating income |
|
$ |
1,541 |
|
$ |
1,720 |
|
$ |
6,688 |
|
$ |
6,143 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
Non-GAAP net income attributable to SPAR Group
and related per share amounts represents net income attributable to
SPAR Group adjusted for the removal of a one-time positive
adjustment. Adjusted EBITDA represents net income before, as
applicable from time to time, (i) interest expense, net, (ii)
provision (benefit) for income taxes, (iii) depreciation and
amortization of long-lived assets, (iv) share based compensation
expense, (v) review of strategic alternatives, (vi) nonrecurring
legal settlement costs and associated legal expenses unrelated to
the Company's core operations. These metrics are supplemental
measures of our operating performance that are neither required by,
nor presented in accordance with, GAAP. These measures have
limitations as analytical tools and should not be considered in
isolation or as an alternative to performance measure derived in
accordance with GAAP as an indicator of our operating performance.
We present Adjusted net income attributable to SPAR Group and per
share amounts, and Adjusted EBITDA because management uses these
measures as key performance indicators, and we believe that
securities analysts, investors and others use these measures to
evaluate companies in our industry. Our calculation of these
measures may not be comparable to similarly named measures reported
by other companies. The following tables present a reconciliation
of net income, the most directly comparable measure calculated in
accordance with GAAP, to these measures for the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPAR Group,
Inc. |
|
Net income
attributable to SPAR Group, Inc. to |
|
Adjusted Net
income attributable to SPAR Group, Inc.
Reconciliation |
|
Diluted
income per common share attributable to SPAR Group, Inc.
to |
|
Adjusted
Diluted income per common share attributable to SPAR Group, Inc.
Reconciliation |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
|
|
September 30, |
September 30, |
|
|
|
2023 |
2022 |
|
|
2023 |
2022 |
|
Net Income attributable to SPAR Group Inc. |
|
$ |
259 |
|
|
$ |
(32 |
) |
|
$ |
1,764 |
|
|
$ |
1,789 |
|
|
Add-back
Adjusted EBIDTA (net of taxes) |
|
|
311 |
|
|
|
244 |
|
|
|
755 |
|
|
|
175 |
|
|
Adjusted Net
income attributable to SPAR Group, Inc. |
|
$ |
570 |
|
|
$ |
212 |
|
|
$ |
2,520 |
|
|
$ |
1,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
income per common share attributable to SPAR Group, Inc. |
|
$ |
0.01 |
|
|
$ |
- |
|
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
Add-back
Adjusted EBIDTA per common share (net of taxes) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.01 |
|
|
Adjusted
Diluted income per common share attributable to SPAR Group,
Inc. |
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
0.11 |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPAR Group, Inc. |
|
Net Income to Consolidated Adjusted EBITDA to |
|
Adjusted EBITDA attributable to SPAR Group, Inc.
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
|
|
September 30, |
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Consolidated Net Income |
|
$ |
1,098 |
|
|
$ |
900 |
|
|
$ |
3,981 |
|
|
$ |
3,969 |
|
|
Depreciation and amortization |
|
|
548 |
|
|
|
506 |
|
|
|
1,574 |
|
|
|
1,524 |
|
|
Interest expense |
|
|
380 |
|
|
|
270 |
|
|
|
1,248 |
|
|
|
595 |
|
|
Income Tax expense |
|
|
227 |
|
|
|
676 |
|
|
|
1,806 |
|
|
|
1,942 |
|
|
Other income |
|
|
(164 |
) |
|
|
(126 |
) |
|
|
(347 |
) |
|
|
(363 |
) |
|
Consolidated EBITDA |
|
|
2,089 |
|
|
|
2,226 |
|
|
|
8,262 |
|
|
|
7,667 |
|
|
Review of Strategic Alternatives |
|
|
143 |
|
|
|
- |
|
|
|
571 |
|
|
|
- |
|
|
Share based compensation |
|
|
83 |
|
|
|
309 |
|
|
|
217 |
|
|
|
589 |
|
|
Legal Costs / Settlements - non recurring |
|
|
140 |
|
|
|
- |
|
|
|
140 |
|
|
|
(368 |
) |
|
Restructuring costs |
|
|
28 |
|
|
|
- |
|
|
|
28 |
|
|
|
- |
|
|
Consolidated Adjusted EBITDA |
|
|
2,483 |
|
|
|
2,535 |
|
|
|
9,218 |
|
|
|
7,888 |
|
|
Adjusted EBITDA attributable to non controlling interest |
|
|
(977 |
) |
|
|
(1,295 |
) |
|
|
(3,211 |
) |
|
|
(3,035 |
) |
|
Adjusted EBITDA attributable to SPAR Group, Inc. |
|
$ |
1,506 |
|
|
$ |
1,240 |
|
|
$ |
6,007 |
|
|
$ |
4,853 |
|
|
|
|
|
|
|
|
|
|
|
|
Note: We report non GAAP financial measures in
addition to, and not as a substitute for, or superior to, financial
measures calculated in accordance with GAAP. See the section
entitled "Statement Regarding Use of Non GAAP Financial Measures"
for an explanation of non GAAP measures, and the table entitled
"GAAP to Non GAAP Reconciliation" for a reconciliation of GAAP to
non GAAP measures.
Spar (NASDAQ:SGRP)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Spar (NASDAQ:SGRP)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024