SPAR Group Inc - SGRP STOCK NEWS

SPAR Group (NASDAQ: SGRP) stockholders have approved the company's acquisition by Highwire Capital. Under the merger agreement dated August 30, 2024, SGRP stockholders will receive $2.50 in cash per share of common stock. The transaction is expected to be completed in Q4 2024, subject to customary closing conditions. Once finalized, SPAR Group will become a private company and will be delisted from NASDAQ. The company will file the final voting results in a Current Report on Form 8-K with the SEC.

SPAR Group (NASDAQ: SGRP) has called a special meeting for stockholders to vote on the proposed acquisition by Highwire Capital. The virtual meeting is scheduled for October 25, 2024, at 12:00 p.m. Eastern Time. Under the terms of the unanimously approved Merger Agreement, stockholders will receive $2.50 per share in cash, representing a 72% premium over the closing share price on August 30.

The transaction, if approved, will result in SPAR Group becoming a privately held company and delisting from NASDAQ. Stockholders of record as of October 1, 2024, are eligible to vote. The company encourages all stockholders to actively participate in the voting process, which can be done by phone or internet. SPAR Group is prepared to adjourn or postpone the meeting briefly if more voting time is needed.

SPAR Group (NASDAQ: SGRP), a provider of merchandising, marketing, and distribution services, has entered into a definitive agreement to be acquired by Highwire Capital for $2.50 per share in cash. This represents a 72% premium over SPAR Group's closing share price on August 30. The transaction, unanimously approved by SPAR Group's Board of Directors, will result in SPAR Group becoming a privately held company and delisting from NASDAQ.

The deal is expected to close in Q4 2024, subject to stockholder approval and regulatory approvals. Highwire has secured debt financing to consummate the transaction. William H. Bartels, a board member holding approximately 20% of outstanding shares, has entered into a voting agreement with Highwire. Upon closing, SPAR Group will continue to be led by current President and CEO Mike Matacunas.

SPAR Group, Inc. (NASDAQ: SGRP) reported strong Q2 2024 results, showcasing its strategic transformation. Key highlights include:

• Net revenues of $57.3 million, with $54.0 million from the Americas segment
• 37% revenue growth in ongoing U.S. business and 14% in Canada
• Gross profit of $11.0 million (19.2% of revenues)
• Net income of $3.6 million ($0.15 per diluted share), up 467%
• $4.9 million capital gain from divestitures
• Cash position increased to $22 million

The company's transformation has resulted in a simplified, financially solid, and growing enterprise. SPAR Group's total worldwide liquidity was $33.4 million as of June 30, 2024. The company also repurchased 1 million shares under its Board-approved buyback program.

SPAR Group, Inc. (NASDAQ: SGRP), a leading provider of merchandising and marketing services, has announced the timing of its 2024 fiscal second quarter results release and conference call. The company will release its results on Wednesday, August 14, 2024, before the market opens. A conference call will be hosted by CEO Mike Matacunas and CFO Antonio Calisto Pato.

Investors can join the call by phone at 1-833-630-1542 (or 1-412-317-1821 for international callers) or via webcast through the company's Investor Relations website. A replay will be available until August 21st. Notably, management will not address questions regarding the letter of intent and pending transaction announced on June 5, 2024.

The latest SPAR Group (NASDAQ: SGRP) survey reveals that over 80% of consumers prefer in-store grocery shopping, with significant preferences for discount, convenience, and home improvement stores. Key motivators include trying on products and meal planning. Customer service, fast checkouts, and engaging atmospheres are important for 71%, 69%, and 51% of shoppers, respectively. Despite challenges like product availability and staffing, 70% plan to increase in-store shopping within six months. The survey highlights the need for retailers to enhance inventory management, staffing, and tech investments. Walmart leads in positive perceptions, with younger shoppers and females showing distinct preferences.

SPAR Group (NASDAQ: SGRP) has finalized the sale of its Brazilian holding company in a leveraged buyout for approximately $12 million USD to a minority shareholder. This move aims to simplify SPAR's operational structure and channel cash back into its business. Despite the sale, SPAR will maintain its relationship with the Brazilian venture to continue adding value to clients. CEO Mike Matacunas emphasized the company's focus on growth and profitability.

SPAR Group (NASDAQ: SGRP), a merchandising, marketing, and distribution services provider, has entered into a non-binding letter of intent (LOI) with Highwire Capital to go private through a merger transaction valued at $58 million, or $2.50 per share. The proposal has unanimous approval from the SPAR Board and a Special Committee of Independent Directors. If approved, this would represent a 19% premium over the 20-day average closing price and a 107% premium over the 12-month average closing price. The deal is subject to due diligence, regulatory approvals, and shareholder consent. The LOI includes a term of exclusivity and certain legal terms, but no definitive agreement has yet been executed.

SPAR Group (NASDAQ: SGRP) reported first-quarter 2024 revenues of $68.7 million, a 6.7% increase from the previous year. The company saw a 204% rise in operating income to $9.6 million, with a diluted EPS of $0.28, up 600% from last year's $0.04. This includes a $7.2 million pre-tax gain on a sale.

Net revenues were substantially driven by a 22% increase in U.S. and Canada, while the EMEA region saw a 14.7% decline. APAC revenues fell by 5.5%. Despite a gross profit decrease to $12.5 million, down from $14.1 million last year, SG&A expenses improved to $9.6 million.

SPAR's total liquidity stood at $21.0 million, with $16.6 million in cash. The company ended the quarter with net working capital of $38.2 million. Additionally, SPAR completed several strategic divestitures and a share repurchase plan.