SPAR GROUP LTD PINET(OTCMKTS:SGPPF): Announces 3Q13 Revenue Increase to $27.8 Million

On November 14, 2013, SPAR Group LTD PINET (OTCMKTS:SGPPF) announced its financial results for the 3rd quarter and 9 months period ended September 30, 2013.

The amount of consolidated net revenue of the company for the period of 3 and 9 month ended September 30, 2013 was increased by 9% and 16%, respectively, as compared to the same period a year ago. This increase in net revenue was mainly because of a strong performance from its subsidiaries in India, South Africa, Mexico, China and Japan.

The amount of consolidated gross profit for the period of 3 and 9 month ended September 30, 2013 were to some extent more than previous year’s levels. The gross profit margins of the company were 24% for both the period of 3 and 9 month ended September 30, 2013 as compared to 25% and 27% for the same period a year ago.

Domestic gross profit margins of the company were 30% and 31% for the period of 3 and 9 month ended September 30, 2013, respectively as compared to 29% and 32% for the same period a year ago. For both the period of 3 and 9 month ended September 30, 2013 international gross profit margins were 19% as compared to 21% and 22% for the same period a year ago. The reduction in international gross margin percentages were mainly because of higher cost margin business in the new markets of India, Turkeyand the unfavorable mix of business in Japan, Australia and China.

The net income of the company which is attributable to SPAR Group was reduced by 43% and 85% for the same period of 3 and 9 month ended September 30, 2013, respectively as compared to the same period of last year. The reduction in net income for the period of 3 and 9 month ended September 30, 2013, were primarily due to increased spending in its domestic operations partly offset by improved international operations.

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