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SPAR Group Announces Financial Results for the Second Quarter Ended June 30, 2018

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WHITE PLAINS, N.Y., Aug. 20, 2018 (GLOBE NEWSWIRE) -- SPAR Group, Inc. (NASDAQ:SGRP), a leading supplier of retail merchandising, business technology and other marketing services in 10 countries throughout North America, Latin America, Asia Pacific and Africa, today announced financial results for the second quarter ended June 30, 2018.

Highlights for the three and six-month periods ended June 30, 2018, as compared to the same periods in the prior year include:

  • Revenue for the second quarter of 2018 increased $16.5 million, or 39 percent, to $59.2 million.  International operations contributed to $8.6 million of the increase. Domestic operations contributed $7.9 million to year-over-year revenue growth.

  • Revenue for the six-month period ending June 30, 2018 increased $31.2 million, or 38 percent, to $113.8 million.  International operations contributed to $16.3 of the increase. Domestic operations contributed $14.9 million to year-over-year revenue growth.

  • During the second quarter, the Company recorded one-time charges totaling approximately $2.0 million: $1.3 million for a settlement respecting related party labor litigation and $675,000 due to the uncertainty of collection against unsecured advances to related parties. 

  • Operating loss for the second quarter was $(1.2 million), a $2.2 million difference versus operating income of $971,000 during the same period last year.  Excluding these one-time charges, operating income decreased $192,000 year over year, led by a decrease in profitability from domestic operations.

  • Operating loss for the six-month period ended June 30, 2018 was $(506,000), a $1.9 million difference versus operating income of $1.5 million during the same period of 2017. 

  • Net loss attributable to SPAR Group for the second quarter of 2018 was $1.8 million or $(0.09) per share; compared to net income of $343,000 or $0.02 per diluted share, during the second quarter of 2017. 

  • Net loss attributable to SPAR Group for the six months ended June 30, 2018 was $1.6 million, or $(0.08) per share; compared to a net income of $99,000, or $0.00 per diluted share, for the same period in 2017. 
 
Financial Results by Geography (in 000's, except per share data)
 
  Three Months Ended June 30, %   Six Months Ended June 30,
    % 
Revenue:   2018       2017   Change     2018        2017     Change 
International $    37,668     $    29,037   29.7 %   $          73,878     $     57,602       28.3
Domestic      21,556         13,685   57.5 %                    39,925           25,006       59.7
Total $   59,224     $   42,722   38.6 %   $    113,803     $              82,608       37.8
                                           
           
  Three Months Ended June 30, %
  Six Months Ended June 30,     %
Operating Income:   2018     2017   Change
    2018       2017     Change
International $    663        $    679     (2.4 %)   $    1,713     $    1,098     56.0 %
Domestic     (1,900 )          292            (2,219 )        357    
Total $    (1,237 )      $    971       $    (506 )   $    1,455    
                                 
             
  Three Months Ended June 30,     Six Months Ended June 30,    
Net (loss) income:   2018     2017          2018     2017      
International $    (32 )      $    (205 )     $    355     $ (189 )    
Domestic      (1,731 )          548            (1,993 )    
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