World News: 00:08 GMT Tuesday 16th April 2019. [SPAR Group via Globe Newswire via SPi World News]
WHITE PLAINS, N.Y., April 15, 2019 (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 fourth quarter ended December 31, 2018.
Highlights for the three and twelve-month periods ended December 31, 2018, as compared to the same periods in the prior year include:
“During 2018 we made significant progress in addressing structural issues within our domestic operations, realigning our sales and marketing efforts and improving our technologies. These changes are making a difference and have resulted in improving financial operating results net of one-time charges. On the top line, our team delivered double-digit top-line growth during 2018, with organic growth both domestically and internationally plus the recent acquisition of Resource Plus. While improvements in profitability during 2018 were clouded by one-time charges, we made foundational improvements in our ability to deliver profitable growth,” said Chief Executive Officer, Christiaan Olivier. “Our pipeline of business opportunities is strong, and we expect continued revenue growth during 2019. We expect to have even stronger growth in profitability during 2019, as we gain further benefit from structural changes.”
International gross profit margin for the fourth quarter and twelve months ended December 31, 2018 was 22.4% and 17.1%, compared to 19.6% and 17.5%, respectively, for the same periods in 2017. The decline in gross profit margin year over year was directly attributable to higher cost margin business in Brazil and a write-down in Australia for one-time cost reserve adjustments, partially offset by margin improvement in Mexico, China, and Japan.
Domestic gross profit margin for the fourth quarter and twelve months ended December 31, 2018, was 19.6% and 23.5%, compared to 29.2% and 27.1%, respectively, for the same periods in 2017. Year-to-date domestic gross profit margin declined primarily due to an increase in lower margin project work compared to the same period last year.
As of December 31, 2018, cash and cash equivalents totaled $7.1 million. Working capital was $12.6 million and current ratio was 1.3 to 1. Total current assets and total assets were $55.1 million and $69.1 million, respectively. Total current liabilities and total liabilities were $42.5 million and $44.3 million, and total equity was $24.8 million as of December 31, 2018.
SPAR Group, Inc. is a diversified international merchandising and marketing services Company and provides a broad array of services worldwide to help companies improve their sales, operating efficiency and profits at retail locations. The Company provides merchandising and other marketing services to manufacturers, distributors and retailers worldwide and coordinates the operations through the use of multi-lingual proprietary technology which drives the logistics, communication and reporting for global operations and customers. SPAR works primarily in mass merchandiser, office supply, value, grocery, drug, independent, convenience, toy, home improvement and electronics stores, as well as providing furniture and other product assembly services, audit services, in-store events, technology services and marketing research. The Company has supplied these project and product services in the United States since certain of its predecessors were formed in 1979 and internationally since the Company acquired its first international subsidiary in Japan in May of 2001. Product services include restocking and adding new products, removing spoiled or outdated products, resetting categories "on the shelf" in accordance with client or store schematics, confirming and replacing shelf tags, setting new sale or promotional product displays and advertising, replenishing kiosks, providing in-store event staffing and providing assembly services in stores, homes and offices. Audit services include price audits, point of sale audits, out of stock audits, intercept surveys and planogram audits. Other merchandising services include whole store or departmental product sets or resets (including new store openings), new product launches, in-store demonstrations, special seasonal or promotional merchandising, focused product support and product recalls. The Company currently does business in ten countries that encompass approximately 50% of the total world population through its operations in the United States, Canada, Japan, South Africa, India, China, Australia, Mexico, Brazil and Turkey. For more information, please visit the SPAR Group's website at .
This Press Release contains and the above referenced recorded comments will contain "forward-looking statements" made by SPAR Group, Inc. ("SGRP", and together with its subsidiaries, the "SPAR Group" or the "Company"), There also are "forward looking statements" contained in SGRP's Annual Report on Form 10-K for the year ended December 31, 2018 (the "Annual Report"), which was filed by SGRP with the SEC on April 15, 2019, and SGRP's definitive Proxy Statement respecting its Annual Meeting of Stockholders to be held on or about May 16, 2019 (the "Proxy Statement"), which SGRP will be filling with the SEC on or about April 29,2019, 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 Annual Report and the Proxy 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, collectively, "Securities Laws").
You should 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.
James R. Segreto
Chief Financial Officer
SPAR Group, Inc.
Three Part Advisors
Globe Newswire: 00:08 GMT Tuesday 16th April 2019
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