Note 9 - Segment Information

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

9. Segment Information

The Company reports net revenues from operating income by reportable segment. Reportable segments are components of the Company for which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company provides similar merchandising, business technology and marketing services throughout the world, operating within

two

reportable segments, its Domestic Division and its International Division. The Company uses those divisions to improve its administration and operational and strategic focuses, and it tracks and reports certain financial information separately for each of those divisions. The Company measures the performance of its Domestic and International Divisions and subsidiaries using the same metrics. The primary measurement utilized by management is operating profits, historically the key indicator of long-term growth and profitability, as the Company is focused on reinvesting the operating profits of each of its international subsidiaries back into its local markets in an effort to improve market share and continued expansion efforts.

The accounting policies of each of the reportable segments are the same as those described in the Summary of Significant Accounting Policies. Management evaluates performance as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Revenue:
United States	$	22,123		$	28,006		$	45,412		$	46,662
International		28,821			40,217			66,880			78,721
Total revenue	$	50,944		$	68,223		$	112,292		$	125,383
Operating income:
United States	$	315		$	2,608		$	623		$	3,360
International		1,648			1,622			2,817			2,601
Total operating income	$	1,963		$	4,230		$	3,440		$	5,961
Interest expense (income):
United States	$	144		$	185		$	276		$	246
International		(60	)		2			36			142
Total interest expense	$	84		$	187		$	312		$	388
Other (income), net:
United States	$	(1	)	$	(1	)	$	(1	)	$	(1	)
International		(49	)		(191	)		(57	)		(256	)
Total other (income), net	$	(50	)	$	(192	)	$	(58	)	$	(257	)
Income before income tax expense:
United States	$	172		$	2,424		$	348		$	3,115
International		1,757			1,811			2,838			2,715
Total income before income tax expense	$	1,929		$	4,235		$	3,186		$	5,830
Income tax expense:
United States	$	124		$	501		$	199		$	702
International		500			927			760			1,284
Total income tax expense	$	624		$	1,428		$	959		$	1,986

Net income:
United States	$	48		$	1,923		$	149		$	2,413
International		1,257			884			2,078			1,431
Total net income	$	1,305		$	2,807		$	2,227		$	3,844
Net (income) attributable to non-controlling interest:
United States	$	(519	)	$	(679	)	$	(583	)	$	(775	)
International		(889	)		(605	)		(1,451	)		(930	)
Total net (income) attributable to non-controlling interest	$	(1,408	)	$	(1,284	)	$	(2,034	)	$	(1,705	)
Net income (loss) attributable to SPAR Group, Inc.:
United States	$	(471	)	$	1,244		$	(434	)	$	1,638
International		368			279			627			501
Total net income (loss) attributable to SPAR Group, Inc.	$	(103	)	$	1,523		$	193		$	2,139
Depreciation and amortization:
United States	$	419		$	382		$	832		$	754
International		120			146			247			284
Total depreciation and amortization	$	539		$	528		$	1,079		$	1,038
Capital expenditures:
United States	$	288		$	344		$	669		$	722
International		156			127			117			213
Total capital expenditures	$	444		$	471		$	786		$	935

Note:  There were

no

inter-company sales for the 

six

months ended

June 30, 2020

or

2019

.

	June 30,		December 31,
	2020		2019
Assets:
United States	$	30,697	$	24,927
International		43,213		54,608
Total assets	$	73,910	$	79,535

	June 30,		December 31,
	2020		2019
Long lived assets:
United States	$	4,182	$	4,957
International		3,358		3,954
Total long lived assets	$	7,540	$	8,911

Geographic Data

(in thousands)

	Three Months Ended June 30,										Six Months Ended June 30,
	2020					2019					2020					2019
			% of					% of					% of					% of
			consolidated					consolidated					consolidated					consolidated
International revenue:			net revenue					net revenue					net revenue					net revenue
Brazil	$	10,539		20.7	%	$	16,612		24.3	%	$	26,103		23.2	%	$	32,145		25.6	%
South Africa		6,088		12.0			6,442		9.4			13,002		11.6			12,976		10.3
Mexico		4,820		9.5			5,664		8.3			10,667		9.5			10,951		8.7
China		2,756		5.4			3,180		4.7			5,320		4.7			6,459		5.2
India		1,915		3.8			2,065		3.0			4,207		3.7			4,271		3.4
Japan		1,649		3.2			2,865		4.2			4,431		3.9			5,595		4.5
Canada		1,004		2.0			2,459		3.6			2,720		2.4			4,563		3.6
Australia		50		0.1			863		1.3			430		0.4			1,627		1.3
Turkey		-		-			67		0.1			-		-			134		0.1
Total international revenue	$	28,821		56.7	%	$	40,217		58.9	%	$	66,880		59.4	%	$	78,721		62.7	%