Note 9 - Segment Information

6 Months Ended

Jun. 30, 2021

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,
	2021			2020			2021			2020
Revenue:
United States	$	27,252		$	22,123		$	50,927		$	45,412
International		39,924			28,821			77,346			66,880
Total revenue	$	67,176		$	50,944		$	128,273		$	112,292
Operating income:
United States	$	332		$	315		$	1,090		$	623
International		1,555			1,648			3,516			2,817
Total operating income	$	1,887		$	1,963		$	4,606		$	3,440
Interest expense (income):
United States	$	151		$	144		$	289		$	276
International		(22	)		(60	)		(12	)		36
Total interest expense	$	129		$	84		$	277		$	312
Other expense (income), net:
United States		(1	)		(1	)		(3	)		(1	)
International		6			(49	)		(67	)		(57	)
Total other expense (income), net	$	5		$	(50	)	$	(70	)	$	(58	)
Income before income tax expense:
United States	$	182		$	172		$	804		$	348
International		1,571			1,757			3,595			2,838
Total income before income tax expense	$	1,753		$	1,929		$	4,399		$	3,186
Income tax expense:
United States	$	7		$	124		$	176		$	199
International		614			500			1,310			760
Total income tax expense	$	621		$	624		$	1,486		$	959

Net income:
United States	$	175		$	48		$	628		$	149
International		957			1,257			2,285			2,078
Total net income	$	1,132		$	1,305		$	2,913		$	2,227
Net (income) attributable to non-controlling interest:
United States	$	(2	)	$	(519	)	$	(82	)	$	(583	)
International		(616	)		(889	)		(1,400	)		(1,451	)
Total net (income) attributable to non-controlling interest	$	(618	)	$	(1,408	)	$	(1,482	)	$	(2,034	)
Net income (loss) attributable to SPAR Group, Inc.:
United States	$	173		$	(471	)	$	546		$	(434	)
International		341			368			885			627
Total net income (loss) attributable to SPAR Group, Inc.	$	514		$	(103	)	$	1,431		$	193
Depreciation and amortization:
United States	$	385		$	419		$	775		$	832
International		149			120			289			247
Total depreciation and amortization	$	534		$	539		$	1,064		$	1,079
Capital expenditures:
United States	$	352		$	288		$	637		$	669
International		207			156			253			117
Total capital expenditures	$	559		$	444		$	890		$	786

Note: There were no inter-company sales for the three and six months ended June 30, 2021 or 2020.

	June 30,		December 31,
	2021		2020
Assets:
United States	$	38,489	$	31,675
International		56,491		52,354
Total assets	$	94,980	$	84,029

	June 30,		December 31,
	2021		2020
Long lived assets:
United States	$	4,553	$	4,809
International		1,984		2,487
Total long lived assets	$	6,537	$	7,296

Geographic Data (in thousands)

	Three Months Ended June 30,										Six Months Ended June 30,
	2021					2020					2021					2020
			% of					% of					% of					% of
			consolidated					consolidated					consolidated					consolidated
International revenue:			net revenue					net revenue					net revenue					net revenue
Brazil	$	13,596		20.2	%	$	10,539		20.7	%	$	25,897		20.2	%	$	26,103		23.2	%
South Africa		8,524		12.7			6,088		12.0			16,246		12.7			13,002		11.6
Mexico		8,363		12.4			4,820		9.5			15,622		12.2			10,667		9.5
China		3,195		4.8			2,756		5.4			6,458		5.0			5,320		4.7
Japan		2,538		3.8			1,915		3.8			4,988		3.9			4,207		3.7
Canada		2,040		3.0			1,004		2.0			3,918		3.1			2,720		2.4
India		1,358		2.0			1,649		3.2			3,584		2.8			4,431		3.9
Australia		310		0.5			50		0.1			633		0.5			430		0.4
Total international revenue	$	39,924		59.4	%	$	28,821		56.7	%	$	77,346		60.4	%	$	66,880		59.4	%