Note 10 - Segment Information

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10. 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 management in deciding how to allocate resources and in assessing performance.

The Company provides similar merchandising, business technology and marketing services throughout the world. The Company historically operated within two (2) reportable segments, its Domestic division was comprised of the business in the United States, and its international division was comprised of all countries outside United States. The Company used those divisions to improve its administration and operational focuses, and it tracked and reported certain financial information separately for each of those divisions. The Company measured the performance of its Domestic and International divisions and subsidiaries using the same metrics.

The Company continues to evaluate the global growth strategy. To better leverage the regional footprint to align with global growth strategy, effective January 1, 2022, the Company has realigned its segment from two (2) divisions to three (3) regional segments which has been recast below: Americas which is comprised of United States, Canada, Brazil and Mexico, Asia-Pacific (“APAC”) which is comprised of Japan, China, India and Australia, and Europe, Middle East and Africa (“EMEA”) which is comprised of South Africa. Certain corporate expenses have been assigned to segments based on each segment’s revenue as a percent of total company revenue.

The operations and performance metrics for each country remains unchanged; the accounting policies for each country also remains the same. Therefore the change of segment reporting has no impact to the existing accounting policies and are the same as those described in the Summary of Significant Accounting Policies. Management evaluates performance as follows (in thousands):

	Three Months Ended
	March 31,
	2022			2021
Revenue:
Americas	$	42,978		$	45,114
APAC		6,818			8,262
EMEA		9,198			7,721
Total revenue	$	58,994		$	61,097
Operating income:
Americas	$	1,780		$	2,328
APAC		(441	)		23
EMEA		728			367
Total operating income	$	2,067		$	2,718
Interest expense (income):
Americas	$	101		$	134
APAC		(1	)		7
EMEA		49			6
Total interest expense	$	149		$	147
Other expense (income), net:
Americas	$	(7	)	$	14
APAC		(16	)		(47	)
EMEA		(64	)		(42	)
Total other expense (income), net	$	(87	)	$	(75	)
Income before income tax expense:
Americas	$	1,686		$	2,180
APAC		(424	)		63
EMEA		743			403
Total income before income tax expense	$	2,005		$	2,646
Income tax expense:
Americas	$	370		$	791
APAC		(6	)		49
EMEA		187			25
Total income tax expense	$	551		$	865

Net income:
Americas	$	1,316		$	1,389
APAC		(418	)		14
EMEA		556			378
Total net income	$	1,454		$	1,781
Net (income) loss attributable to non-controlling interest:
Americas	$	(548	)	$	(515	)
APAC		153			(4	)
EMEA		(385	)		(345	)
Total net (income) attributable to non-controlling interest	$	(780	)	$	(864	)
Net income (loss) attributable to SPAR Group, Inc.:
Americas	$	768		$	874
APAC		(265	)		10
EMEA		171			33
Total net income (loss) attributable to SPAR Group, Inc.	$	674		$	917
Depreciation and amortization:
Americas	$	485		$	502
APAC		14			18
EMEA		11			10
Total depreciation and amortization	$	510		$	530
Capital expenditures:
Americas	$	466		$	294
APAC		5			36
EMEA		7			2
Total capital expenditures	$	478		$	332

Note: There were no inter-company sales for the three (3) months period ended March 31, 2022 or 2021.

	March 31,		December 31,
	2022		2021
Assets:
Americas	$	74,070	$	65,689
APAC		8,110		10,023
EMEA		16,044		13,304
Total assets	$	98,224	$	89,016

	March 31,			December 31,
	2022			2021
Long lived assets:
Americas	$	6,311		$	7,517
APAC		(1,648	)		(1,818	)
EMEA		283			362
Total long lived assets	$	4,946		$	6,061

Geographic Data (in thousands)

	Three Months Ended March 31,
	2022					2021
			% of					% of
			consolidated					consolidated
Revenue by country:			net revenue					net revenue
United States	$	23,353		39.7	%	$	23,676		38.8	%
Brazil		15,568		26.4			12,300		20.1
South Africa		9,198		15.6			7,722		12.6
Mexico		2,410		4.1			7,259		11.9
China		2,860		4.8			3,263		5.3
Japan		2,023		3.4			2,450		4.0
Canada		1,647		2.8			1,878		3.1
India		1,616		2.7			2,226		3.6
Australia		319		0.5			323		0.6
Total revenue	$	58,994		100	%	$	61,097		100	%