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Note 11 - Segment Information
 9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

11.

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 continues to evaluate the global growth strategy. To better align with its global growth strategy, effective January 1, 2022, the Company began reporting in (3) regional segments as follows: 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 new 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

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2022

  

2021

  

2022

  

2021

 

Revenue:

                

Americas

 $53,738  $49,849  $149,992  $146,213 

Asia - Pacific

  7,147   7,921   19,351   23,584 

EMEA

  8,947   9,653   27,283   25,899 

Total revenue

 $69,832  $67,423  $196,626  $195,696 
                 

Operating income:

                

Americas

 $1,441  $2,206  $5,862  $6,203 

Asia - Pacific

  (341)  (177)  (1,491)  (300)

EMEA

  620   646   1,772   1,379 

Total operating income

 $1,720  $2,675  $6,143  $7,282 
                 

Interest expense (income):

                

Americas

 $203  $110  $399  $396 

Asia - Pacific

  6   1   24   (14)

EMEA

  61   13   172   20 

Total interest expense

 $270  $124  $595  $402 
                 

Other expense (income), net:

                

Americas

 $(12) $(11) $(24) $74 

Asia - Pacific

  (50)  14   (62)  (66)

EMEA

  (64)  (140)  (277)  (216)

Total other expense (income), net

 $(126) $(137) $(363) $(208)
                 

Income before income tax expense:

                

Americas

 $1,250  $2,107  $5,487  $5,733 

Asia - Pacific

  (297)  (192)  (1,453)  (220)

EMEA

  623   773   1,877   1,575 

Total income before income tax expense

 $1,576  $2,688  $5,911  $7,088 
                 

Income tax expense:

                

Americas

 $467  $392  $1,346  $1,728 

Asia - Pacific

  (145)  13   (104)  83 

EMEA

  354   144   700   225 

Total income tax expense

 $676  $549  $1,942  $2,036 

 

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2022   2021   2022   2021 

Net income:

                

Americas

 $783  $1,715  $4,141  $4,005 

Asia - Pacific

  (152)  (205)  (1,349)  (303)

EMEA

  269   629   1,177   1,350 

Total net income

 $900  $2,139  $3,969  $5,052 
                 

Net (income) loss attributable to non-controlling interest:

                

Americas

 $(582) $(535) $(1,660) $(1,400)

Asia - Pacific

  (45)  106   476   160 

EMEA

  (305)  (530)  (996)  (1,201)

Total net (income) attributable to non-controlling interest

 $(932) $(959) $(2,180) $(2,441)
                 

Net income (loss) attributable to SPAR Group, Inc.:

                

Americas

 $201  $1,180  $2,481  $2,605 

Asia - Pacific

  (197)  (99)  (873)  (143)

EMEA

  (36)  99   181   149 

Total net income (loss) attributable to SPAR Group, Inc.

 $(32) $1,180  $1,789  $2,611 
                 

Depreciation and amortization:

                

Americas

 $482  $506  $1,456  $1,498 

Asia - Pacific

  15   (9)  39   44 

EMEA

  9   12   29   31 

Total depreciation and amortization

 $506  $509  $1,524  $1,573 
                 

Capital expenditures:

                

Americas

 $433  $454  $1,214  $1,205 

Asia - Pacific

  –   (18)  14   19 

EMEA

  30   104   9   208 

Total capital expenditures

 $463  $540  $1,237  $1,432 

 

Note: There were no inter-company sales for the nine months ended September 30, 2022 or 2021.

 

  

September 30,

  

December 31,

 
  

2022

  

2021

 

Assets:

        

Americas

 $86,151  $64,960 

Asia - Pacific

  6,044   10,699 

EMEA

  12,009   13,357 

Total assets

 $104,204  $89,016 

 

  

September 30,

  

December 31,

 
  

2022

  

2021

 

Long lived assets:

        

Americas

 $4,524  $3,968 

Asia - Pacific

  1,609   1,798 

EMEA

  229   295 

Total long lived assets

 $6,362  $6,061 

 

Geographic Data (in thousands)

 

  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2022

  

2021

  

2022

  

2021

 
      

% of

      

% of

      

% of

      

% of

 
      

consolidated

      

consolidated

      

consolidated

      

consolidated

 

Country revenue:

     

net revenue

      

net revenue

      

net revenue

      

net revenue

 

United States

 $32,475   46.5% $28,696   42.6% $87,406   44.5% $79,624   40.7%

Brazil

  16,904   24.2   14,913   22.1   49,504   25.2   40,809   20.9 

South Africa

  8,947   12.8   9,653   14.3   27,283   13.9   25,899   13.2 

Mexico

  2,375   3.4   4,307   6.4   7,132   3.6   19,929   10.2 

China

  3,460   5.0   3,735   5.5   7,930   4.0   10,193   5.2 

Japan

  1,725   2.5   2,348   3.5   5,536   2.8   7,336   3.7 

Canada

  2,707   3.9   1,650   2.4   5,949   3.0   4,886   2.5 

India

  831   1.1   1,933   2.9   4,765   2.4   6,199   3.2 

Australia

  408   0.6   188   0.3   1,121   0.6   821   0.4 

Total revenue

 $69,832   100.0% $67,423   100.0% $196,626   100.0% $195,696   100.0%