Business
SPAR Group Reports Results for the Fourth Quarter and Twelve Months Ended December 31, 2020
~ 4Q Earnings per Share Increased 425%~ 4Q Domestic Revenue Increased 11.9%~ Full Year Net Income Increased 39.2% to $3.4 Million AUBURN HILLS, Mich., March
About this update from Spar Group, Inc.
[{"type":"text","content":"~ 4Q Earnings per Share Increased 425%~ 4Q Domestic Revenue Increased 11.9%~ Full Year Net Income Increased 39.2% to $3.4 Million AUBURN HILLS, Mich., March 31, 2021 (GLOBE NEWSWIRE) -- SPAR Group, Inc. (NASDAQ: SGRP) today reported financial results for its fourth quarter and fiscal year ended December 31, 2020. “I am pleased by our fourth quarter and full year financial performance, highlighted by our strong increase in net income, improved expense leverage and growth in domestic revenue,” stated Mike Matacunas, President and Chief Executive Officer. “In addition, the continued expansion of our Great Openings business, growth of our South Africa, Mexico and India businesses during an unprecedented pandemic and the focus of our entire organization on the performance, safety and well-being of our employees and clients, has provided us a solid platform for the new year.” Fourth Quarter Results Consolidated net revenue was $59.4 million compared to $61.1 million in the prior year’s fourth quarter, a decrease of 2.8%. Domestic net revenue increased 11.9%, while international net revenue decreased 8.7%. Excluding the effect of foreign currency exchange, international revenue would have increased by 1.9%. Gross Profit was $11.5 million compared to $12.0 million in the prior year’s fourth quarter. Gross margin was 19.4% versus 19.7% in the prior year’s quarter. The primary factors affecting the 30-basis point decrease in gross profit were related to wage pressure, an increased mix of lower margin project work domestically, and lower sales levels internationally. Selling, General and Administrative expenses were 13.6% of revenue versus 16.8% in the prior year’s fourth quarter. This 320-basis point improvement in selling, general and administrative expenses was the result of efforts to reduce operational expenses and discretionary spending, as well as temporarily delaying non-essential investments. Operating Income improved 148% to $2.9 million compared to $1.2 million in the prior year’s fourth quarter, and operating margin was 4.9% compared to 1.9% in the prior year’s fourth quarter. Net Income attributable to SPAR Group improved $2.6 million to $2.0 million, when compared to a net loss of $(0.6) million in the prior year’s quarter. Earnings per share improved to $0.10, compared to a net loss of ($0.03) in the prior year’s quarter. Fu...