AUBURN HILLS, Mich., Aug. 14, 2024 (GLOBE NEWSWIRE) -- SPAR Group, Inc. (NASDAQ:SGRP) ("SPAR," "SPAR Group" or the "Company"), a leading provider of merchandising, marketing, and distribution services today reported financial and operating results for the three and six months ended June 30, 2024. Mike Matacunas, the Company's President and Chief Executive Officer, commented, "Our second quarter results reflect a focus on simplification and driving growth in the Americas, specifically the U.S. and Canada. Our revenues in the second quarter were up 37% in the ongoing U.S. business and 14% in Canada. In addition, we continued to divest in underperforming assets in the second quarter resulting in a one-time $4.9 million capital gain and increasing our cash to $22 million. Our financials are stronger than they have ever been in the history of the company and demand for our services is growing. "The last three years have seen a transformation of this business from a complex, joint-venture based, legally mired, trapped cash, hard to understand company to a focused, simplified, financially solid, cash-rich, growing enterprise. At the same time, we have delivered value to our shareholders, expanded our client base and energized the organization. In effect, we changed two wheels of the car at the same time and I couldn't be prouder of this team," said Mike Matacunas, Chief Executive Officer. "Lastly, we do not have an update on our ‘go private' announcement from June 5th other than to confirm this process remains underway and we will communicate when appropriate," concluded Matacunas. Second Quarter 2024 Highlights Net revenues of $57.3 million, primarily comprised of $54.0 million from the Americas segment Closed divestitures of China and Brazil Gross profit was $11.0 million, or 19.2% of revenues. Gain on selling businesses of $4.9 million Net income attributable to SPAR Group, Inc. of $3.6 million, or $0.15 per diluted share, up 467%. Repurchased 1 million shares under our Board-approved share buyback program. Six Months 2024 Highlights Net revenues of $126.0 million, primarily comprised of $108.7 million from the Americas segment (86%). Gross profit was $23.5 million, or 18.7% of revenues. Net gains on selling businesses of $12.1 million. $11 million increase in cash since year-end 2023 Net income attributable to SPAR Group, Inc. of $10.3 million, or $0.43 per diluted share. Financial Position as of June 30, 2024 The Company's total worldwide liquidity at the end of the quarter was $33.4 million, with $21.7 million in cash and cash equivalents and $11.8 million of unused availability as of June 30, 2024. For the six months ended June 30, 2024, net cash provided by operating activities was $170 thousand. The Company ended the quarter with net working capital of $24.8 million on June 30, 2024. 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 period ended June 30, 2024. To access the call live by phone, dial 1-833-630-1542 (Domestic) and 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 August 21, 2024, by calling 1-877-344-7529 using passcode ID 3263044# 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 merchandising and marketing services company, providing a broad range of services to retailers, manufacturers, and distributors. With more than 50 years of experience, the company distinguishes itself from the competition by offering flexible, scalable and innovative solutions to some of the world's leading brands and retailers. 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 an Annual Report on Form 10-K by SGRP with the Securities and Exchange Commission (the "SEC") for its fiscal year ended December 31, 2023, and 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. Media Contact:Ronald MargulisRAM                                                  Investor Relations Contact:Sandy Martin Three Part       - Financial Statements Follow – SPAR Group, Inc. and SubsidiariesCondensed Consolidated Statements of Income(unaudited)(In thousands, except per share data)     Three Months Ended   Six Months Ended   June 30   June 30   2024 2023   2024 2023                     Net revenues $ 57,290   $ 65,936     $ 125,984   $ 130,316   Related party - cost of revenues   -     1,682       -     3,179   Cost of revenues   46,297     51,158       102,448     99,903   Gross profit   10,993     13,096       23,536     27,234   Selling, general and administrative expense   9,541     10,605       19,158     21,061   Gain on sale of business   (4,919 )   -       (12,076 )   -   Depreciation and amortization   478     494       989     1,026   Operating income   5,893     1,997       15,465     5,147   Interest expense   567     478       1,097     868   Other expense (income), net   (296 )   (125 )     (288 )   (183 ) Income before income tax expense   5,622     1,644       14,656     4,462                       Income tax expense   1,547     538       3,401     1,579   Net income   4,075     1,106       11,255     2,883   Net (income) loss attributable to non-controlling interest   (448 )   (467 )     (1,002 )   (1,378 ) Net income (loss) attributable to SPAR Group, Inc. $ 3,627   $ 639     $ 10,253   $ 1,505   Basic income per common share attributable to SPAR Group, Inc.   0.15     0.03       0.43     0.06   Diluted income per common share attributable to SPAR Group, Inc. $ 0.15   $ 0.03     $ 0.43   $ 0.06   Weighted-average common shares outstanding– basic   23,786     23,250       23,670     23,182   Weighted-average common shares outstanding – diluted   24,010     23,392       23,873     23,337                               SPAR Group, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(unaudited)(In thousands, except share and per share data)     June 30