Wed, Aug 14, 8:18 PM (153 days ago)
For the quarter ending June 30, 2024, SPAR Group, Inc. reported net revenues of $57.3 million, a decline of 13.1% from $65.9 million in the same period last year, primarily due to the exit from several international markets. Gross profit fell to $11.0 million (19.2% margin) from $13.1 million (19.9% margin), driven by increased costs of revenues at 80.8%. Operating income improved significantly to $5.9 million from $2.0 million, aided by a gain on the sale of business amounting to $4.9 million. Net income rose to $4.1 million, compared to $1.1 million in Q2 2023, reflecting improved operational efficiency and strategic exits. Cash flow from operations was minimal at $0.2 million, contrasting sharply with $6.7 million in 2023. However, net cash from investing activities was positive at $11.0 million, mainly from asset sales. The company's total assets decreased to $70.0 million from $90.3 million, attributable to divestitures and operational adjustments. Looking ahead, SPAR Group faces uncertainties from market exits and ongoing operational challenges, though strategic initiatives may enhance future earnings and cash flow stability.