The following is a summary of the SPAR Group, Inc. (SGRP) Q4 2023 Earnings Call Transcript:

Financial Performance:

• SPAR Group reported Q4 revenue of $65.1 million, an increase of 0.7% from the prior year.

• Gross profit rose by 11%, indicating a 210 basis point improvement in profit percentage.

• EBITDA for the quarter was reported as $3.1 million, a significant rise from a $250,000 loss reported for the same period last year.

• Net income was reported at $795,000 for the quarter, as compared to a loss of $1.84 million in the corresponding quarter last year.

• For the full year, reported revenue was $262.7 million, registering a marginal increase of 0.6%.

• Gross profit for the full year was up by 8.8%, and the gross profit margin was up 160 basis points over 2022.

• EBITDA for 2023 was reported as $11.4 million, marking a significant increase of 54% from the previous year.

• Net income attributable to SPAR for 2023 was $3.9 million, as compared to a loss of $732,000 in 2022.

Business Progress:

• The core catalyst behind Q4 revenue performance was driven by the company's US owned merchandising business, which increased the revenue by 9%.

• The company saw recovery in its US client store remodels, signalling strong sales momentum in merchandising services in the US and Canada.

• SPAR announced plans to divest its share from joint ventures in Australia, China, Brazil, South Africa and the US.

• The goal of these divestitures is to streamline the portfolio and operating model of the organization, paving the way for potential future growth.

• The company highlighted positive macro trends impacting the industry like higher retail sales, lower unemployment, and strong capital deployment. Additionally, it reported successfully navigating challenges like rising labor costs.

More details: SPAR Group IR

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