In a release issued under the same headline on Monday, April 17th
by SPAR Group, Inc. (NASDAQ: SGRP), please note that in the
Condensed Consolidated Statement of Operations for the three months
ended December 31, 2022, did not properly compute Income (loss)
before income taxes. The corrected release follows:
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 fourth quarter and
twelve-month period ended December 31, 2022.
Mike Matacunas, the Company’s President
and Chief Executive Officer, commented, “Fiscal 2022 was a
strategically transformative year for the Company. We successfully
grew merchandising, remodeling and distribution services across the
platform and especially in the U.S., resulting in record high
revenues, and we also acquired or built new analytical tools and
capabilities, as well as improved recruitment and candidate
technology. I want to thank our entire SPAR team for their
tremendous performance during a globally challenging labor and
macro-economic environment in 2022.
“As we discussed last fall, the Company and
Board are exploring strategic alternatives for SPAR with the goal
of maximizing shareholder value. With a strong balance sheet, 90%+
revenue growth over the last 5 years, expanding gross profit
margins, diversified services, and long-term relationships with
some of the most important consumer goods and retail companies in
the world, we continue to believe that the Company is valued below
our nearest competitors. Although we have nothing to report
publicly on this process, we remain committed to the execution of
our work of growing the business, serving our clients and
supporting our employees and joint venture partners,”
concluded Matacunas.
Fourth Quarter 2022 Financial
Results
Net revenues were $64.6 million, comprised of
$48.6 million from Americas (75.2%) and $9.4 million from EMEA
(14.5%), and $6.7 million from APAC (10.3%). Total net revenue
increased by 7.7% (up 11.8% on a constant currency basis), Americas
increased over the prior year by 20.8% (up 21.2% on a constant
currency basis), EMEA decreased by 2.1% (up 13.6% on a constant
currency basis), and APAC decreased by 34.8% (down 26.9% on a
constant currency basis) from the prior year quarter.
Gross profit was $13.4 million, or 20.7% of
revenues, compared to $10.7 million, or 17.7% of revenues, in the
prior year quarter. This 300-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 containment procedures.
An impairment of goodwill was recorded in the
2022 fourth quarter, which resulted in a non-cash charge of $2.5
million.
Selling, general and administrative (SG&A)
expenses were $11.2 million, or 17.3% of revenues, compared to $8.8
million, or 14.6% of revenues, in the prior year quarter. 2022
SG&A expenses included $1.2 million of bad debt expenses
related to one customer, as well as costs associated with pursuing
strategic alternatives.
Operating loss was $760 thousand versus
operating loss of $3.1 million from the prior year quarter, which
was impacted by items mentioned earlier. In 2021, comparisons
included costs associated with the majority stockholders change in
control.
Net loss attributable to SPAR Group, Inc. was
$2.5 million, or $0.11 per share, compared to net loss attributable
to SPAR Group Inc. of $4.4 million, or $0.21 per share, in the
year-ago quarter. Adjusted net income attributable to SPAR Group,
Inc. (1) in the quarter was $420 thousand, or $0.02 per share,
compared to a loss of $644 thousand, or $0.03 per share, in the
year-ago quarter.
Consolidated Adjusted EBITDA (1) in the 2022
quarter was $3.5 million, compared to Adjusted EBITDA of $2.2
million in the prior year. Adjusted EBITDA attributable to SPAR
Group, Inc. (1) in the 2022 quarter was $2.3 million, compared to
Adjusted EBITDA of $361 thousand in the prior year.
(1) |
Adjusted 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. |
|
|
Twelve-Month Period 2022 Financial
Results
Net revenues were $261.3 million, comprised of
$198.6 million from Americas (76.0%) and $36.7 million from EMEA
(14.0%), and $26.0 million from APAC (10.0%). Total net revenue
increased by 2.2% (up 3.5% on a constant currency basis), the
Americas revenues increased by 6.5% (up 4.9% on a constant currency
basis), EMEA increased by 3.3% (up 14.5% on a constant currency
basis), and APAC decreased by 23.0% (down 15.9% on a constant
currency basis), all compared to the prior year twelve months.
Gross profit was $51.0 million, or 19.5% of
revenues, compared to $47.5 million, or 18.6% of revenues, in the
prior year.
Selling, general and administrative (SG&A)
expenses were $41.1 million, or 15.7% of revenues, compared to
$36.8 million, or 14.4% of revenues, in the prior year period.
Refer to explanations for fourth quarter 2022 financial
results.
An impairment of goodwill was recorded in the
2022 fourth quarter, which resulted in a non-cash charge of $2.5
million.
Operating income was $5.4 million versus
operating income of $4.2 million from the prior year twelve months.
In 2021, comparisons included costs associated with the majority
stockholders change in control.
Net loss attributable to SPAR Group, Inc. was
$732 thousand, or $0.03 per share, compared to $1.8 million, or
$0.08 per share, in the twelve months of 2021. Adjusted net income
attributable to SPAR Group, Inc. (1) for the full year was $1.9
million, or $0.09 per share, compared to $2.6 million, or $0.12 per
share, in the year-ago period.
Consolidated Adjusted EBITDA (1) in the 2022
full year was $10.8 million, compared to $11.9 million in the prior
year period. Adjusted EBITDA attributable to SPAR Group, Inc. (1)
in the 2022 full year was $6.1 million, compared to $7.0 million in
the prior year period.
(1) |
Adjusted 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 December 31,
2022
The Company’s total worldwide liquidity at the
end of the fourth quarter was $14.7 million, with $9.3 million in
cash, cash equivalents and restricted cash and $5.4 million of
unused availability as of December 31, 2022. For the twelve months
ended December 31, 2022, net cash used in operating activities was
$5 million and was primarily due increases in working capital and
higher withholding tax assets related to Brazil. The Company ended
the year with positive net working capital of $26.4 million at
December 31, 2022.
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 fourth quarter and twelve months ended December 31,
2022. 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 April 24, 2023, by
calling 1-877-344-7529 using passcode ID 3899783#. 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 Current Report on Form 10-Q by SGRP with
the Securities and Exchange Commission (the “SEC”)
on November 15, 2021. There also are forward-looking
statements contained in SGRP’s Annual Report on Form 10-K for
its fiscal year ended December 31, 2021, as filed with
the SEC on April 15, 2022, and SGRP’s First
Amendment to Annual Report on Form 10-K/A for the year
ended December 31, 2020, as filed with
the SEC on May 2, 2022 (as so amended, the
“Annual Report”), in SGRP’s amended definitive Proxy Statement
respecting its Annual Meeting of Stockholders held on August
12, 2021, which SGRP filed with the SEC on July 20,
2021 (the “Proxy Statement”), and the 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 Income |
(unaudited) |
(In thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
64,643 |
|
|
$ |
60,023 |
|
|
$ |
261,268 |
|
|
$ |
255,719 |
|
Related party – cost of revenues |
|
|
1,510 |
|
|
|
1,449 |
|
|
|
8,804 |
|
|
|
7,401 |
|
Cost of revenues |
|
|
49,742 |
|
|
|
47,928 |
|
|
|
201,452 |
|
|
|
200,796 |
|
Gross profit |
|
|
13,391 |
|
|
|
10,646 |
|
|
|
51,012 |
|
|
|
47,522 |
|
Selling, general and administrative expense |
|
|
11,183 |
|
|
|
8,756 |
|
|
|
41,135 |
|
|
|
36,778 |
|
Majority Stockholders Change of control agreement |
|
|
- |
|
|
|
4,478 |
|
|
|
- |
|
|
|
4,478 |
|
Depreciation and amortization |
|
|
510 |
|
|
|
510 |
|
|
|
2,033 |
|
|
|
2,083 |
|
Impairment of goodwill |
|
|
2,458 |
|
|
|
- |
|
|
|
2,458 |
|
|
|
- |
|
Operating (loss) income |
|
|
(760 |
) |
|
|
(3,097 |
) |
|
|
5,386 |
|
|
|
4,183 |
|
Interest expense |
|
|
371 |
|
|
|
184 |
|
|
|
965 |
|
|
|
585 |
|
Other (income), net |
|
|
(119 |
) |
|
|
(301 |
) |
|
|
(482 |
) |
|
|
(510 |
) |
Income (loss) before income tax expense |
|
|
(1,012 |
) |
|
|
(2,980 |
) |
|
|
4,903 |
|
|
|
4,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
835 |
|
|
|
72 |
|
|
|
2,777 |
|
|
|
2,108 |
|
Net income (loss) |
|
|
(1,847 |
) |
|
|
(3,052 |
) |
|
|
2,126 |
|
|
|
2,000 |
|
Net income attributable to non-controlling interest |
|
|
(678 |
) |
|
|
(1,338 |
) |
|
|
(2,858 |
) |
|
|
(3,779 |
) |
Net income (loss) attributable to SPAR Group, Inc. |
|
$ |
(2,525 |
) |
|
$ |
(4,390 |
) |
|
$ |
(732 |
) |
|
$ |
(1,779 |
) |
Basic and diluted income (loss) per common share: |
|
$ |
(0.11 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
Weighted average common shares – basic |
|
|
22,821 |
|
|
|
21,320 |
|
|
|
22,110 |
|
|
|
21,266 |
|
Weighted average common shares – diluted |
|
|
22,957 |
|
|
|
21,589 |
|
|
|
22,110 |
|
|
|
21,266 |
|
SPAR Group,
Inc. and Subsidiaries |
|
Condensed
Consolidated Balance Sheets |
|
(unaudited) |
|
(In thousands,
except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
|
December
31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash |
|
$ |
9,345 |
|
|
|
$ |
13,473 |
|
|
Accounts receivable, net |
|
|
63,714 |
|
|
|
|
54,171 |
|
|
Prepaid expenses and other current assets |
|
|
7,861 |
|
|
|
|
4,382 |
|
|
Total
current assets |
|
|
80,920 |
|
|
|
|
72,026 |
|
|
Property and
equipment, net |
|
|
3,261 |
|
|
|
|
2,929 |
|
|
Operating
lease right-of-use assets |
|
|
969 |
|
|
|
|
1,781 |
|
|
Goodwill |
|
|
1,708 |
|
|
|
|
4,166 |
|
|
Intangible
assets, net |
|
|
2,040 |
|
|
|
|
2,295 |
|
|
Deferred
income taxes |
|
|
3,766 |
|
|
|
|
4,468 |
|
|
Other
assets |
|
|
1,934 |
|
|
|
|
1,351 |
|
|
Total
assets |
|
$ |
94,598 |
|
|
|
$ |
89,016 |
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
10,588 |
|
|
|
$ |
8,943 |
|
|
Accrued expenses and other current liabilities |
|
|
20,261 |
|
|
|
|
22,031 |
|
|
Due to affiliates |
|
|
2,964 |
|
|
|
|
3,270 |
|
|
Customer incentives and deposits |
|
|
2,399 |
|
|
|
|
3,901 |
|
|
Lines of credit and short-term loans |
|
|
17,980 |
|
|
|
|
11,042 |
|
|
Current portion of operating lease liabilities |
|
|
363 |
|
|
|
|
1,019 |
|
|
Total
current liabilities |
|
|
54,555 |
|
|
|
|
50,206 |
|
|
Operating
lease liabilities, less current portion |
|
|
606 |
|
|
|
|
762 |
|
|
Long-term
debt and other liabilities |
|
|
1,376 |
|
|
|
|
700 |
|
|
Total
liabilities |
|
|
56,537 |
|
|
|
|
51,668 |
|
|
Commitments
and contingencies – See Note 8 |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
SPAR Group,
Inc. equity |
|
|
|
|
|
|
|
|
Series
A convertible preferred stock, $0.01 par value per share: 2,445,598
shares authorized as of December 31,2022 and 2021; No shares
outstanding as of December 31,2022 and December 31, 2021 |
|
|
- |
|
|
|
|
- |
|
|
Series B
convertible preferred stock, $0.01 par value per share: 2,000,000
shares and no shares authorized as of December 31, 2022 and 2021,
respectively; 2,000,000 shares and no shares outstanding as of
December 31, 2022 and 2021, respectively; 854,753 shares and no
shares outstanding as of December 31, 2022 and 2021,
respectively |
|
|
9 |
|
|
|
|
- |
|
|
Common
stock, $0.01 par value per share: 47,000,000 shares authorized as
of December 31,2022 and December 31,2021. Shares outstanding
22,853,653 – December 31,2022 and 21,320,414 – December 31,
2021 |
|
|
229 |
|
|
|
|
213 |
|
|
Treasury
stock, at cost 205,485 shares and 54,329 shares as of December 31,
2022 and 2021 |
|
|
(285 |
) |
|
|
|
-104 |
|
|
Additional
paid-in capital |
|
|
20,708 |
|
|
|
|
17,231 |
|
|
Accumulated
other comprehensive loss |
|
|
(4,941 |
) |
|
|
|
(5,028 |
) |
|
Retained
earnings |
|
|
6,707 |
|
|
|
|
7,439 |
|
|
Total SPAR
Group, Inc. equity |
|
|
22,427 |
|
|
|
|
19,751 |
|
|
Non-controlling interest |
|
|
15,634 |
|
|
|
|
17,597 |
|
|
Total
equity |
|
|
38,061 |
|
|
|
|
37,348 |
|
|
Total
liabilities and equity |
|
$ |
94,598 |
|
|
|
$ |
89,016 |
|
|
|
|
|
|
|
|
|
|
|
SPAR Group, Inc. and Subsidiaries |
Condensed Consolidated Statements of Cash
Flows |
(unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
2022 |
|
2021 |
Operating activities |
|
|
|
|
|
|
Net income |
|
$ |
2,126 |
|
|
$ |
2,000 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities |
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,033 |
|
|
|
2,083 |
|
Impairment of goodwill |
|
|
2,458 |
|
|
|
|
Non-cash lease expense |
|
|
646 |
|
|
|
1,120 |
|
Bad debt expense, net of recoveries |
|
|
1,092 |
|
|
|
128 |
|
Deferred income tax expense (benefit) |
|
|
994 |
|
|
|
(267 |
) |
Share-based compensation |
|
|
346 |
|
|
|
711 |
|
Majority stockholders change in control agreement |
|
|
- |
|
|
|
4,478 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(11,237 |
) |
|
|
(7,305 |
) |
Prepaid expenses and other assets |
|
|
(3,285 |
) |
|
|
(510 |
) |
Accounts payable |
|
|
1,718 |
|
|
|
1,095 |
|
Operating lease liabilities |
|
|
(744 |
) |
|
|
(1,120 |
) |
Accrued expenses, other current liabilities and customer incentives
and deposits |
|
|
(1,191 |
) |
|
|
216 |
|
Net cash provided (used in) by operating activities |
|
|
(5,044 |
) |
|
|
2,629 |
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Purchases of property and equipment and capitalized software |
|
|
(1,797 |
) |
|
|
(1,722 |
) |
Net cash used in investing activities |
|
|
(1,797 |
) |
|
|
(1,722 |
) |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Borrowings under line of credit |
|
|
30,467 |
|
|
|
77,200 |
|
Repayments under line of credit |
|
|
(25,648 |
) |
|
|
(75,451 |
) |
Proceeds related to stock options exercised |
|
|
118 |
|
|
|
- |
|
Payments related to stock options exercised |
|
|
- |
|
|
|
(123 |
) |
Repurchase of common stock |
|
|
(181 |
) |
|
|
- |
|
Distribution to non-controlling investors |
|
|
(1,785 |
) |
|
|
- |
|
Acquisition of minority interest |
|
|
(2,558 |
) |
|
|
- |
|
Proceeds from term debt |
|
|
3,530 |
|
|
|
- |
|
Payments on term debt |
|
|
(454 |
) |
|
|
(300 |
) |
Net cash provided by financing activities |
|
|
3,489 |
|
|
|
1,326 |
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash |
|
|
(776 |
) |
|
|
(4,732 |
) |
Net change in cash and cash equivalents |
|
|
(4,128 |
) |
|
|
(2,499 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
|
|
13,473 |
|
|
|
15,972 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
9,345 |
|
|
$ |
13,473 |
|
SPAR Group, Inc. and Subsidiaries |
Segment Information |
(unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
48,590 |
|
|
$ |
40,217 |
|
|
$ |
198,581 |
|
|
$ |
186,430 |
|
Asia – Pacific |
|
|
6,658 |
|
|
|
10,207 |
|
|
|
26,009 |
|
|
|
33,791 |
|
EMEA |
|
|
9,395 |
|
|
|
9,599 |
|
|
|
36,678 |
|
|
|
35,498 |
|
Total revenue |
|
$ |
64,643 |
|
|
$ |
60,023 |
|
|
$ |
261,268 |
|
|
$ |
255,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
(1,758 |
) |
|
$ |
(3,499 |
) |
|
$ |
4,103 |
|
|
$ |
2,427 |
|
Asia – Pacific |
|
|
(131 |
) |
|
|
(844 |
) |
|
|
(1,621 |
) |
|
|
(967 |
) |
EMEA |
|
|
1,128 |
|
|
|
1,246 |
|
|
|
2,904 |
|
|
|
2,723 |
|
Total operating income |
|
$ |
(760 |
) |
|
$ |
(3,097 |
) |
|
$ |
5,386 |
|
|
$ |
4,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
Adjusted 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 related to the majority stockholders change of control
agreement accrued in 2021 and realized in January of 2022. 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) 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 (Loss)
attributable to SPAR Group, Inc. toAdjusted Net
Income (Loss) attributable to SPAR Group, Inc.
ReconciliationDiluted earnings per share
attributable to SPAR Group, Inc. toAdjusted
Diluted earnings per share attributable to SPAR Group, Inc.
ReconciliationFiscal Three and Twelve Months Ended
December 31, 2022 and 2021 |
|
|
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income attributable to SPAR Group
Inc. |
|
|
(2,525 |
) |
|
|
(4,390 |
) |
|
|
(732 |
) |
|
|
(1,779 |
) |
Add-back one-time impact (net of taxes) |
|
|
2,945 |
|
|
|
3,746 |
|
|
|
2,654 |
|
|
|
4,421 |
|
Adjusted Net Income (Loss) attributable to SPAR Group,
Inc. |
|
|
420 |
|
|
|
(644 |
) |
|
|
1,922 |
|
|
|
2,642 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to SPAR Group,
Inc. |
|
$ |
(0.11 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
Add-back one-time impact (net of taxes) |
|
$ |
0.13 |
|
|
$ |
0.17 |
|
|
$ |
0.12 |
|
|
$ |
0.21 |
|
Adjusted Diluted earnings per share attributable to SPAR
Group, Inc. |
|
$ |
0.02 |
|
|
$ |
(0.03 |
) |
|
$ |
0.09 |
|
|
$ |
0.12 |
|
SPAR Group, Inc.Net Income (Loss) to
Consolidated Adjusted EBITDA toAdjusted EBITDA
attributable to SPAR Group, Inc.
ReconciliationFiscal Three and Twelve Months Ended
December 31, 2022 and 2021 |
|
|
Three MonthsEnded December 31, |
|
Twelve MonthsEnded December31, |
|
|
2022 |
2021 |
|
2022 |
2021 |
Consolidated Net Income |
|
($1,847) |
($3,052) |
|
$2,126 |
$2,000 |
Depreciation and amortization |
|
510 |
510 |
|
2,033 |
2,083 |
Interest expense |
|
371 |
184 |
|
965 |
585 |
Income Tax expense |
|
835 |
72 |
|
2,777 |
2,108 |
Other income |
|
(119) |
(301) |
|
(482) |
(510) |
Consolidated EBITDA |
|
(250) |
(2,587) |
|
7,419 |
6,266 |
Legal costs relating to CIC |
|
336 |
4,509 |
|
(32) |
4,814 |
Review of Strategic Alternatives |
|
540 |
25 |
|
540 |
72 |
Goodwill impairment |
|
2,458 |
- |
|
2,458 |
- |
Board of Directors share based compensation |
|
- |
208 |
|
- |
711 |
Board of Directors compensation |
|
394 |
- |
|
394 |
- |
Consolidated Adjusted EBITDA |
|
$3,478 |
$2,155 |
|
$10,779 |
$11,863 |
Adjusted EBITDA attributable to non controlling interest |
|
(1,158) |
(1,794) |
|
(4,637) |
(4,908) |
Adjusted EBITDA attributable to SPAR Group,
Inc. |
|
$2,320 |
$361 |
|
$6,142 |
$6,956 |
|
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)
Historical Stock Chart
From Apr 2024 to May 2024
Spar (NASDAQ:SGRP)
Historical Stock Chart
From May 2023 to May 2024