SPAR Group Inc. (SGRP) shares plunged 6.79% in Tuesday’s pre-market and were trading at $2.06, as of this writing. On Monday, SGRP’s stock gained 27.75% and closed at $2.21. SGRP shares have risen 186.98% over the last 12 months, and they have moved up 54.55% in the past week. Over the past three months, the stock has gained 27.75%, while over the past six months, it has shed 72.66%. The company has a current market of $41.26 million and its outstanding shares stood at 21.19 million.

Let’s see why it is facing negativity in the pre-market session on Tuesday?

SGRP made new appointments

On July 13, 2021, SPAR Group, Inc (SGRP) appointed Ron Lutz as Chief Global Commercial Officer, and William Linnane was appointed as Chief Strategy and Growth Officer, to further strengthen its executive team and support the company’s global expansion.

Resignation of Three Independent SGRP Board Members

On June 15, 2021, SPAR Group, Inc announced that Mr. Arthur H. Baer, Mr. Igor Novgorodtsev, and Mr. Jeffrey A. Mayer, have resigned from the Corporation’s Board of Directors, effective June 9, 2021.

Recent SGRP financial results

On May 13, 2021, SPAR Group, Inc (SGRP) released its financial results for its first quarter ended March 31, 2021.

Q1 2021 financial highlights

• SPAR Group reported consolidated net revenue of $61.1 million in Q1 2021 compared to $61.3 million in Q1 2020.
• Gross Profit was $12.3 million and gross margin was 20.1% in Q1 2021 compared to $11.8 million gross profit and 19.2% gross margin in Q1 2019.
• Selling, General, and Administrative expenses were $9.01 million in Q1 2021 compared to $9.7 million in Q1 2020.
• Operating Income was $2.7 million in Q1 2021 compared to $1.5 million in the prior year’s first quarter.
• Net Income attributable to SGRP was $0.9 million in Q1 2021, compared to $0.3 million during the prior year’s first quarter.
• Earnings per share were $0.04 in Q1 2021 compared to $0.01 in the prior year’s quarter.

Increasing Credit Facility

On May 04, 2021, SPAR Group, Inc (SGRP)  increased and extended the terms of its current line of credit. The maximum amount of the line of credit increased by $2 million to $18 million and the length of the term was extended by 18 months to October 2023.

Q4 and FY-2020 financial results announcement

On March 31, 2021, SPAR Group, Inc released its financial results for its fourth quarter and fiscal year ended December 31, 2020.

 Q4 2020 financial highlights

• For Q4 2020 consolidated net revenue was $59.4 million compared to $61.1 million in the prior year’s fourth quarter.
• SGRP Gross Profit was $11.5 million with a gross margin of 19.4% in Q4 2020 compared to $12.0 million gross profit and gross margin of 19.7% in the prior year’s fourth quarter.
• Operating Income was $2.9 million in Q4 2020 compared to $1.2 million in the prior year’s fourth quarter.
• Net Income was $2.0 million in Q4 2020 when compared to a net loss of $(0.6) million in the prior year’s quarter.
• Earnings per share were $0.10, compared to a net loss of $0.03 in the prior year’s quarter.

Conclusion

Well, as of this writing, there is no recent news that could justify SGRP negative start on Tuesday. We hope that it will perform well in the remaining trading sessions.