SPAR Group Announces Financial Results For The Third Quarter Ended September 30, 2016

WHITE PLAINS, N.Y., Nov. 21, 2016 (GLOBE NEWSWIRE) -- SPAR Group, Inc. (Nasdaq:SGRP), a leading supplier of retail merchandising and other marketing services throughout the United States and internationally, today announced financial results for the third quarter ended September 30, 2016.

Highlights for the third quarter and nine-month period ended September 30, 2016, as compared to the same periods in the prior year include:
  • Revenue for the third quarter of 2016 increased 18% to $33.4 million.  Adjusting for the negative impact of foreign currency translation, third quarter revenue increased 22% year over year.
  • For the nine months ended September 30, 2016, revenue increased 3% to $89.8 million.  Adjusting for the negative impact of foreign currency translation, revenue for the nine-month period increased 11% year over year.
  • Net loss attributable to SPAR Group for the third quarter of 2016 was ($58,000), or ($0.00) per diluted share, compared to a net loss of ($92,000), or ($0.00) per diluted share, during the third quarter of 2015.
  • For the nine months ended September 30, 2016, net income was $84,000, or $0.00 per diluted share, compared to a net loss of $(137,000), or ($0.01) per diluted share for the same period in 2015.
  • In mid-September, the Company established SPAR Brazil by acquiring a majority ownership position of New Momentum and New Momentum Services from The Interpublic Group in Brazil.  For the short period in September 2016, SPAR Brazil contributed approximately $1.9 million to the Company's revenue and $(43,000) to its net loss.

Financial Results by Geography (in 000's)
    Three Months Ended September 30,   %   Nine Months Ended September 30,   %
Revenue: 2016   2015   Change   2016   2015   Change
International $ 22,106     $ 17,563     26 %   $ 57,513     $ 54,219     6 %
Domestic   11,332       10,706     6 %     32,268       32,783     (2 )%
Total $   33,438     $   28,269     18 %   $   89,781     $   87,002     3 %
                                           

    Three Months Ended September 30,   Nine Months Ended September 30,
Net Income (loss): 2016   2015   2016   2015
International $ (66 )   $ (131 )   $ 43     $ (372 )
Domestic   8       39       41       235  
Total $    (58 )   $   (92 )   $    84     $   (137 )
               
Earnings Per Basic and Diluted share:            
  $   (0.00 )   $    (0.00 )   $    0.00     $   (0.01 )
                               

"We saw solid improvement in revenue and profitability in our international business, which unfortunately, was partially offset by weak performance in our domestic operations.  SPAR Group has great people and systems, but our operational and financial performance has been inconsistent.  With a little realignment, I think we can make significant improvements," commented Chief Executive Officer, Scott Popaditch.  "Near term, we will focus on making improvements to our domestic operations to drive growth and profitability on a more consistent basis.  At the same time, we are investing in the growth of our international operations.  We established operations in Brazil through acquisition, and plan further investment there to build a solid foundation that can lead to even greater growth in South America.  These changes and investment will take time to show results, but I am optimistic we will begin to see meaningful change by the end of 2017." 

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