SPAR Group, Inc. (NASDAQ:SGRP) shares are trading higher after the company reported fourth-quarter financial results and announced the sale of its interest in South Africa and Brazil for roughly $22 million.

The company reported an adjusted EPS of $0.11, higher than $0.02 a year ago and above the consensus of $(0.01). Sales of $65.10 million beat the consensus of $65.00 million.

Gross profit rose to $14.9 million from $13.4 million the prior year, with margin expansion of 210-basis points, led by planned initiatives, including improved contract terms and pricing, system enhancements and other cost containments, and services mix shifts.

As of December 31, 2023, the company had $10.7 million in cash and cash equivalents and $8.6 million of unused availability.

Mike Matacunas, President and Chief Executive Officer, said, "The 2023 U.S. remodel and retail transformation business was below 2022 for the year, however, ramped sequentially each quarter with expectations of revenue growth for 2024. Canada's merchandising and remodeling revenue grew by over 50% in 2023, compared to 2022."

In a separate release, the company disclosed the divestiture of its majority share in South Africa's Meridian Group to the minority shareholder Lindicom for R181 million and the sale of SGRP Brasil Participações Ltda for 58.9 million BRL to a minority shareholder.

These transactions, approved by the SPAR Board of Directors, are expected to close in the second quarter.

Investors can gain exposure to the stock via Vanguard Extended Market ETF (NYSE:VXF).

Price Action: SGPR shares are up 31% at $1.27 on the last check Monday.

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