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SPAR Group first quarter revenue rose 24%

RBR Staff Writer Published 15 May 2013

SPAR Group, a supplier of retail merchandising and other marketing services, has reported 24% increase in revenue to $26.2m for the first quarter (Q1) ended 31 March 2013 compared to $21m during the same period the previous year.

The increase in domestic net revenues is primarily due to the incremental revenue from the recent acquisition of general merchandising and certain in-store audit services from Market Force Information and the acquisition of National Marketing Services in the third quarter of 2012.

The increase in 2013 international net revenues was directly attributable to incremental revenue from the newly integrated acquisitions in South Africa and Romania, and increased revenue in China and Australia.

Net income declined to $44,000 from $307,000 during the same period in 2012.

Gross profit increased 5% to $6m compared to $5.8m the same period of 2012, mainly due to incremental spending in support of new project startups and recent acquisitions when compared to the same period in 2012.

SPAR Group CEO Gary Raymond said the company experienced a decline in net income due primarily to incremental spending in support of new project startups and recent acquisitions.

"Our expansion efforts demonstrate our company's strength across channels, categories and geographies, and reflect the traction we're achieving internationally," Raymond added.

"We will remain focused on improving both our revenue and profits, as we expect to meet our previously stated annual revenue guidance of $115 million."

SPAR Group provides in-store merchandising to manufacturers, distributors and retailers worldwide, primarily in mass merchandiser, office supply, grocery, drug, independent, convenience, electronics, toy and specialty stores.

The company also offers furniture and other product assembly services, audit services, in-store events, technology services and marketing research.