The following is a summary of the SPAR Group, Inc. (SGRP) Q1 2024 Earnings Call Transcript:
Financial Performance:
SPAR Group reported an increase in Q1 2024 revenue by 6.7%.
The company reported a decrease in Selling, General & Administrative expense (SG&A) by nearly $850,000, leading to 220 basis points of favorability as a percentage of revenue.
SPAR Group gained $7.2 million from the sale of their South African business.
The resultant EBITDA for the quarter is $10.1 million and the net income attributable to SPAR is $6.6 million.
Earnings per share are reported at $0.28, a significant increase from $0.04 year over year.
Business Progress:
SPAR Group has purchased back 1 million shares from one of their largest shareholders and a founder, and completed the acquisition of Resource Plus US joint venture fully, bringing more value to shareholders.
The Remodel business in the US showed significant recovery with 98% growth compared to the same quarter last year.
The company won $35 million in new business in the US and Canada, including a lucrative multi-year deal valued at over $12 million per year with one of the US's largest home improvement retailers.
SPAR's strategic exit from the South Africa business was due to a significant drop in gross margin and decrease in year-over-year revenue, a move aimed at preserving long-term shareholder value.
In an initiative to simplify operations, SPAR announced its exit from Australia, China, National Merchandising Services, South Africa, and Brazil.
More details: SPAR Group IR
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