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Tag: SPAR Group

  • Takeover News Drives SPAR Group (SGRP) Stock Up Sharply

    Takeover News Drives SPAR Group (SGRP) Stock Up Sharply

    The stock price of SPAR Group, Inc. (NASDAQ: SGRP) had an incredible increase on Tuesday, rising by 65.52% to close at $2.40 per share. The news of the acquisition proposal, which had a big influence on trade volumes and market confidence, caused this noticeable spike.

    SPAR Group Unveiled Highwire Capital Acquisition Agreement

    SPAR Group and Highwire Capital, an investment group committed to using technology to accelerate corporate change, have formally entered into a definitive acquisition agreement. The Board of Directors has approved this strategy change in full.

    According to the agreement, shareholders of SPAR Group would get $2.50 in cash for each share, which is a substantial 72% premium over the share price that closed on the trading day before the announcement.

    SGRP to Change from Public to Private Entity

    After the sale closes, SPAR Group will be a privately held company, assuming approval from the investors and satisfaction of all closing requirements. Consequently, SGRP shares will no longer be listed on NASDAQ.

    The completion of an extensive review process carried out by the company’s Special Committee and Board of Directors is expected to result in an immediate and substantial value delivery to investors. Finding strategic options that would increase shareholder value and give the business the financial flexibility needed for upcoming expansion projects was the goal of this analysis.

    Transaction and Leadership Details

    The deal is projected to finalize in the fourth quarter of 2024, pending regulatory approvals and stockholder consent. Highwire Capital has secured a debt financing commitment sufficient to complete the acquisition. Concurrently, William H. Bartels, a SPAR Group Board member and significant shareholder, has entered into a voting agreement and irrevocable proxy with Highwire.

    Additionally, as a closing condition, SPAR Group will ensure a minimum balance sheet cash of $14.2 million, including anticipated proceeds from the disposal of any company assets. Following the transaction’s closure, Mike Matacunas, who has served as President and CEO since early 2021, will continue to lead SPAR Group.

  • Why SPAR Group Inc. (SGRP) stock is declining in Tuesday’s pre-market?

    SPAR Group Inc. (SGRP) shares plunged 6.79% in Tuesday’s pre-market and were trading at $2.06, as of this writing. On Monday, SGRP’s stock gained 27.75% and closed at $2.21. SGRP shares have risen 186.98% over the last 12 months, and they have moved up 54.55% in the past week. Over the past three months, the stock has gained 27.75%, while over the past six months, it has shed 72.66%. The company has a current market of $41.26 million and its outstanding shares stood at 21.19 million.

    Let’s see why it is facing negativity in the pre-market session on Tuesday?

    SGRP made new appointments

    On July 13, 2021, SPAR Group, Inc (SGRP) appointed Ron Lutz as Chief Global Commercial Officer, and William Linnane was appointed as Chief Strategy and Growth Officer, to further strengthen its executive team and support the company’s global expansion.

    Resignation of Three Independent SGRP Board Members

    On June 15, 2021, SPAR Group, Inc announced that Mr. Arthur H. Baer, Mr. Igor Novgorodtsev, and Mr. Jeffrey A. Mayer, have resigned from the Corporation’s Board of Directors, effective June 9, 2021.

    Recent SGRP financial results

    On May 13, 2021, SPAR Group, Inc (SGRP) released its financial results for its first quarter ended March 31, 2021.

    Q1 2021 financial highlights

    • SPAR Group reported consolidated net revenue of $61.1 million in Q1 2021 compared to $61.3 million in Q1 2020.
    • Gross Profit was $12.3 million and gross margin was 20.1% in Q1 2021 compared to $11.8 million gross profit and 19.2% gross margin in Q1 2019.
    • Selling, General, and Administrative expenses were $9.01 million in Q1 2021 compared to $9.7 million in Q1 2020.
    • Operating Income was $2.7 million in Q1 2021 compared to $1.5 million in the prior year’s first quarter.
    • Net Income attributable to SGRP was $0.9 million in Q1 2021, compared to $0.3 million during the prior year’s first quarter.
    • Earnings per share were $0.04 in Q1 2021 compared to $0.01 in the prior year’s quarter.

    Increasing Credit Facility

    On May 04, 2021, SPAR Group, Inc (SGRP)  increased and extended the terms of its current line of credit. The maximum amount of the line of credit increased by $2 million to $18 million and the length of the term was extended by 18 months to October 2023.

    Q4 and FY-2020 financial results announcement

    On March 31, 2021, SPAR Group, Inc released its financial results for its fourth quarter and fiscal year ended December 31, 2020.

     Q4 2020 financial highlights

    • For Q4 2020 consolidated net revenue was $59.4 million compared to $61.1 million in the prior year’s fourth quarter.
    • SGRP Gross Profit was $11.5 million with a gross margin of 19.4% in Q4 2020 compared to $12.0 million gross profit and gross margin of 19.7% in the prior year’s fourth quarter.
    • Operating Income was $2.9 million in Q4 2020 compared to $1.2 million in the prior year’s fourth quarter.
    • Net Income was $2.0 million in Q4 2020 when compared to a net loss of $(0.6) million in the prior year’s quarter.
    • Earnings per share were $0.10, compared to a net loss of $0.03 in the prior year’s quarter.

    Conclusion

    Well, as of this writing, there is no recent news that could justify SGRP negative start on Tuesday. We hope that it will perform well in the remaining trading sessions.

  • Did Anything Boost SGRP Stock In Extended Trading?

    Did Anything Boost SGRP Stock In Extended Trading?

    The stock of leading global provider of merchandising and marketing services SPAR Group Inc. (SGRP) has risen by 8.22% to $1.58 in extended trading on Friday. SPAR stock price fell -5.81% to $1.46 in its regular trading session. A price range of $1.4501 to $1.61 was observed for the SGRP stock. A volume of 0.13 million shares was traded in SGRP, below its 100-day daily average of 0.16 million shares.

    Within the last week, SGRP shares have gained 8.15%, and within the last month, 2.82%. The price to earnings ratio for SGRP is currently 7.77, and the price to book ratio is 1.35. SGRP also had a price-to-cash-flow ratio of 2.04. Following the appointment of some new executives to the management team, SGRP stock has risen.

    Who has been appointed to the SGRP?

    SPAR Group is one of the leading global marketing and merchandising services providers, providing a wide range of services to distributors, retailers, manufacturers, and other businesses around the globe. A global network of more than 25,000 merchandising specialists accompanies SGRP at all times, along with more than 200,000 weekly store visits and long-term relationships with some of the biggest companies in the world. SGRP can provide specialized services covering 9 countries on four continents.

    The SPAR Group announced the appointment of key executives last week, strengthening its executive team and supporting the company’s global expansion.

    • As Chief Global Commercial Officer and Chief Strategy and Growth Officer, SGRP appointed Ron Lutz and William Linnane.
    • Kori Belzer has also been named the global chief operating officer with expanded responsibilities over global operations and results at SGRP.
    • Lutz will be responsible for SGRP’s business development teams in Japan, Canada, and the United States.
    • Linnane will oversee the work of SGRP’s Chief Information Officer, Division Vice President, Great Openings Division and Senior Vice President, Operations and Assembly Division.
    • In Ms. Belzer’s expanded role as Global Chief Operating Officer at SGRP, she will have the responsibility for developing global synergies and operational efficiencies that can improve both the performance of individual countries and the enterprise as a whole.

    How will SPAR leverage the expertise of its newly appointed executives?

    SGRP’s global business development will be led by Lutz, and he will oversee global business development, branding, and marketing, and SGRP’s operations in Japan and Canada. SGRP expects Linnane to develop new markets, grow the Great Openings and Assembly business lines and expand global programs.

    Beltzer’s responsibilities at SPAR Group (SGRP) will be expanded to include developing global synergies and enhancing operating efficiency across the globe. In addition to expanding SGRP’s success in its current markets, its expanded leadership team will accelerate its expansion into new ones.

  • Why SPAR Group Inc. (SGRP) stock lost its positive momentum in Monday’s after-market?

    Why SPAR Group Inc. (SGRP) stock lost its positive momentum in Monday’s after-market?

    SPAR Group Inc. (SGRP) shares lost 3.29% in after-market on Monday, June 14, 2021, and closed the day at $1.47 per share. Earlier, SGRP’s stock gained 2.01% in Monday’s session. SGRP shares have risen 78.84% over the last 12 months, and they have moved up 1.33% in the past week. Over the past three months, the stock has lost 10.32%, while over the past six months, it has added 47.57%.

    Let’s discuss its news and developments.

    Recent financial results

    On May 13, 2021, SPAR Group, Inc released its financial results for its first quarter ended March 31, 2021.

    Q1 2021 financial highlights

    • SPAR Group reported consolidated net revenue of $61.1 million in Q1 2021 compared to $61.3 million in Q1 2020.
    • Gross Profit was $12.3 million and gross margin was 20.1% in Q1 2021 compared to $11.8 million gross profit and 19.2% gross margin in Q1 2019.
    • Selling, General, and Administrative expenses were $9.01 million in Q1 2021 compared to $9.7 million in Q1 2020.
    • Operating Income was $2.7 million in Q1 2021 compared to $1.5 million in the prior year’s first quarter.
    • Net Income attributable to SPAR Group was $0.9 million in Q1 2021, compared to $0.3 million during the prior year’s first quarter.
    • Earnings per share were $0.04 in Q1 2021 compared to $0.01 in the prior year’s quarter.

    Increasing Credit Facility

    On May 04, 2021, SPAR Group, Inc increased and extended the terms of its current line of credit. The maximum amount of the line of credit increased by $2 million to $18 million and the length of the term was extended by 18 months to October 2023.

    Q4 and FY-2020 financial results announcement

    On March 31, 2021, SPAR Group, Inc released its financial results for its fourth quarter and fiscal year ended December 31, 2020. 

    Q4 2020 financial highlights

     

    • For Q4 2020 consolidated net revenue was $59.4 million compared to $61.1 million in the prior year’s fourth quarter.
    • Gross Profit was $11.5 million with a gross margin of 19.4% in Q4 2020 compared to $12.0 million gross profit and gross margin of 19.7% in the prior year’s fourth quarter.
    • Operating Income was $2.9 million in Q4 2020 compared to $1.2 million in the prior year’s fourth quarter.
    • Net Income was $2.0 million in Q4 2020 when compared to a net loss of $(0.6) million in the prior year’s quarter.
    • Earnings per share were $0.10, compared to a net loss of $0.03 in the prior year’s quarter. 

    FY2020 financial highlights

    • Consolidated net revenue was $230.5 million in FY 2020 compared to $252.9 million in the prior year.
    • Gross Profit was $45.2 million with a gross margin of 19.6%, in FY 2020 compared to $49.3 million gross profit and gross margin of 19.6% the prior year.
    • Operating Income was $9.7 million in FY 2020 compared to $10.2 million in FY 2019.
    • Net Income attributable to SPAR Group was $3.4 million in FY 2020 compared to $2.4 million in FY 2019.
    • Earnings per diluted share were$0.16 per share for FY 2020 compared to $0.11 per share in the prior year.

    Conclusion

    The SGRP lost in the after-market is a bit strange because there is no recent news as of this writing. We hope that SGRP stock will recover its loss on Tuesday.

  • SPAR Group Inc. (SGRP) stock plunged in the pre-market trading session: here’s why

    SPAR Group Inc. (SGRP) stock plunged in the pre-market trading session: here’s why

    Recently in the premarket trading session, SGRP stock plunged by -11.95% to the price $1.4. SGRP stock decreased by -1.24% as it closed at $1.59 for the last trading session. Shares of SPAR Group Inc. had oscillated between $1.50 and $1.63 throughout the day.

    The volume of shares that remained was 0.17 million which is less than the average daily volume of 0.38 million for the past 50 days. In the past 1 year, the company’s stock rose by triple digit percentage of 104.45% and gained 101.78% in the last 6 months.  The average 3 month volume is 343.68k; over the last three months SGRP stock gained 38.26%. Furthermore, the stock has a current market of $33.60 million and its outstanding shares stood at 21.11 million.

    The recent negative pattern of trading of SGRP stock in the pre-market came along with no recent news this month. However at the end of the month of March, the SGRP reported the financial results of the Q4 and full-year 2020.

    Insights on the SPAR group background

    SPAR Group is a merchandising company as well as a marketing company that is globally renowned. The company provides a vast range of product offerings and services. Its clients are usually retailers, manufacturers and distributors across the globe. The company has under-its-belt, 40 years of experience. The number of merchandising specialists that the company has around the world is 20,000. While the average footfall of the store visits consist of 200,000+ daily visits.

    Fourth-Quarter and Full Year Financial Report 2020

    The company announced the full financial year report on 31st March 2020.

    Here are what the highlights about the Fourth quarter say.

    • The net revenue was $59.4 million for Q4 2020, while it was $61.1 million in the Q4 2019;
    • Domestic net revenue had increased by 11.9% while international net revenue had decreased
    • Gross profit was $11.5 million for Q4 2020 while it was $12 million in the Q4 2019
    • Operating income improved 148% to $2.9 million for Q4 2020 while it was $1.2 million for Q4 2019
    • The Earnings Per Share had increased by 425%

    Here are the Full Year Results of the SGRP stock

    • Consolidated net revenue was $230.5 million for Q4 2020 compared to $252.9 million for Q4 2019
    • Gross Profit decreased to $45.2 million for Q4 2020 compared to $49.3 million for Q4 2019
    • Operating income decreased to $9.7 million for Q4 2020 compared to $10.2 million for Q4 2019
    • Net EPS increased by $0.04 per share to $0.16 per share for Q4 2020.

    SPAR Group Outlook

    SPAR Group has not released or issued any revenue or earnings guidance with the financial year 2020 report. This non-issue of guidance is now common in companies because of the Coivd-19 pandemic’s volatility and unpredictability which can also have an effect on the company’s economic and macroeconomics factors. SGRP plans to focus towards growth and stability for its operational and stock performance.