Q2 2024 SPAR Group Inc Earnings Call Transcript
Key Points
- SPAR Group Inc (SGRP) reported consolidated revenue of $57 million for the second quarter, with strong performance in the Americas segment.
- The United States revenue increased by 37% over the previous year, driven by a significant recovery in the remodel business.
- The company secured new clients and expanded key client relationships, including a new four-year $25 million-plus agreement with a leading brand.
- Consolidated gross margin improved by 100 basis points over the first quarter, reflecting strong growth in remodel and transformation work.
- SG&A expenses decreased by $1.1 million compared to the previous year, indicating effective cost management.
- The company exited several global joint ventures, including South Africa, China, Australia, and National Merchandising Services, which impacted revenue comparisons.
- Gross profit for the second quarter was $11 million, down from $13.1 million in the prior year, due to a shift towards the remodeling business with higher labor and travel costs.
- SG&A expenses as a percentage of revenue increased by 60 basis points, partly due to nonrecurring strategic alternative costs.
- Adjusted EBITDA for the second quarter was $1.9 million, down from $2.6 million in the prior year.
- Net revenues for the first half of 2024 decreased to $126 million from $130 million in the prior year, primarily due to strategic exits from several international markets.
Good morning, and welcome to the SPAR Group second-quarter 2024 financial results conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Sandy Martin of Three Part Advisors. Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate you joining us for the SPAR Group, Inc., conference call to review the second-quarter 2024 results. Joining me on the call today are SPAR's Chief Executive Officer, Mike Matacunas; and the company's Chief Financial Officer, Antonio Calisto Pato. This call is also being webcast and can be accessed through the audio link on the Events and Presentations page of the Investor Relations section at investors.sparinc.com. The information recorded on this call speaks only as of today, so please be advised that any time-sensitive information may no longer be accurate as of the date of any replay or transcript reading.
I would also like to remind you that the statements made
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