Note 12 - Segment Information

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

12. 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 and marketing services throughout the world, operating within two (2) 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.

As discussed in Note 2, the Company’s segment disclosure for United States and International income before income taxes and net income tables was incorrect.  Both of those tables have been corrected to allocate $615,000 of losses from International to United States pre-tax income (loss).

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):

	Year Ended December 31,
	2021			2020
Revenue, net:
Domestic	$	100,326		$	92,118
International		155,393			138,399
Total revenue	$	255,719		$	230,517
Operating (loss) income:
Domestic	$	(4,228	)	$	1,876
International		8,411			7,846
Total operating income	$	4,183		$	9,722
Interest expense (income), net:
Domestic	$	624		$	650
International		(39	)		40
Total interest expense	$	585		$	690
Other expense (income), net:
Domestic	$	15		$	8
International		(525	)		(250	)
Total other (income), net	$	(510	)	$	(242	)
Income (loss) before income tax expense:
Domestic	$	(5,672	)	$	603
International		9,780			8,671
Total income before income tax expense	$	4,108		$	9,274
Income tax expense (benefit):
Domestic	$	(1,332	)	$	133
International		3,440			179
Total income tax expense	$	2,108		$	312
Net income (loss):
Domestic	$	(4,340	)	$	470
International		6,340			8,492
Total net income	$	2,000		$	8,962
Net income attributable to non-controlling interest:
Domestic	$	(196	)	$	(883	)
International		(3,583	)		(4,712	)
Total net income attributable to non-controlling interest	$	(3,779	)	$	(5,595	)
Net (loss) income attributable to SPAR Group, Inc.:
Domestic	$	(3,730	)	$	202
International		1,951			3,165
Total net (loss) income attributable to SPAR Group, Inc.	$	(1,779	)	$	3,367
Depreciation and amortization:
Domestic	$	1,554		$	1,620
International		529			510
Total depreciation and amortization	$	2,083		$	2,130
Capital expenditures:
Domestic	$	1,397		$	1,360
International		325			240
Total capital expenditures	$	1,722		$	1,600

There were no inter-company sales for 2021 or 2020.

	December 31,
	2021		2020
Assets:
United States	$	34,276	$	31,675
International		54,740		52,354
Total assets	$	89,016	$	84,029

Geographic Data (in thousands)

	Year Ended December 31,
	2021					2020
Net international revenue:			% of consolidated net revenue					% of consolidated net revenue
Brazil	$	55,219		21.6	%	$	49,940		21.7	%
South Africa		35,498		13.9			28,235		12.2
Mexico		22,459		8.8			22,679		9.8
China		15,769		6.2			12,401		5.4
Japan		9,704		3.8			9,273		4.0
India		7,058		2.8			8,589		3.7
Canada		8,426		3.3			6,294		2.7
Australia		1,260		0.5			988		0.4
Total net international revenue	$	155,393		60.9	%	$	138,399		59.9	%

	Year Ended December 31,
	2021		2020
Long lived assets:
United States	$	4,487	$	4,809
International		1,574		2,487
Total long lived assets	$	6,061	$	7,296