Business
SPAR Group Reports Results for the Second Quarter Ended June 30, 2021
~ 2Q Revenue Increased 32% Over Prior Year ~ Six Months Operating Income up 34% ~ Year-to-date Net Income Increased 642% AUBURN HILLS, Mich., Aug. 17, 2021
About this update from Spar Group, Inc.
[{"type":"text","content":"~ 2Q Revenue Increased 32% Over Prior Year ~ Six Months Operating Income up 34% ~ Year-to-date Net Income Increased 642% AUBURN HILLS, Mich., Aug. 17, 2021 (GLOBE NEWSWIRE) -- SPAR Group, Inc. (NASDAQ: SGRP), a leading global provider of merchandising and marketing services, today reported financial results for its second quarter ended June 30, 2021. “I am proud of our second quarter performance, as we delivered excellent topline results in both our domestic and international businesses. Year to date, our domestic business increased double digits from last year and 9.1% versus 2019, the Company’s highest revenue year. Despite many of our geographies continuing to face pressures of the pandemic, our international business increased 15.6% versus last year. The market is responding to our relentless focus on service, innovation and talent,” stated Mike Matacunas, President and Chief Executive Officer. “While I expect we will continue to face labor cost pressures in the near future, I believe these cost pressures are largely temporary and will normalize as global economies continue to recover. I remain bullish on our opportunity and confident in our new, expanded executive team to make it happen.” Second Quarter Results Consolidated net revenue was $67.2 million compared to $50.9 million in the prior year’s second quarter. Domestic net revenue was $27.3 million, increased by 23.2% from the prior year, while international net revenue increased by 38.5%. Excluding the effect of foreign currency exchange, international revenue would have increased by 25.7% and total revenue would have increased 24.6%. Gross Profit was $12.0 million compared to $9.9 million during the second quarter a year ago. Gross margin decreased 151 basis points to 17.9% versus 19.4% in the prior year’s quarter. The primary factors driving the deterioration in gross profit were related to continued labor costs pressure globally. Selling, General and Administrative expenses were 14.3% of revenue versus 14.5% in the prior year’s second quarter. This 20-basis point improvement in selling, general and administrative expenses was the result of operating expense leverage. Operating Income decreased 3.9% to $1.9 million compared to $2.0 million in the prior year’s second quarter, and operating margin was 2.8% compared to 3.9% in the prior year’s second quarter. Net Income...