SPAR Group, Inc. Segments Disclosure
12. Segment Information
The Company has three reportable geographic segments: Americas, Asia-Pacific, and EMEA. The Company’s Chief Executive Officer, who serves as the Chief Operating Decision Maker (CODM), regularly reviews financial information for each segment, including net revenues, selling, general and administrative expense, depreciation and amortization, interest expense, other expense (income), net, income (loss) before income tax expense, income tax expense (benefit), and net income (loss) attributable to SPAR Group, Inc. These measures are used by the CODM to assess segment performance, make decisions regarding resource allocation, and evaluate current operating results and long-term strategic opportunities in each geographic market.
| (in Thousands) | Year Ended December 31, | |||||||
| 2024 | 2023 | |||||||
| Net revenues | ||||||||
| Americas | $ | 177,232 | $ | 203,705 | ||||
| Asia - Pacific | 11,305 | 24,480 | ||||||
| EMEA | 8,277 | 34,562 | ||||||
| Total Net revenues | $ | 196,814 | $ | 262,747 | ||||
| Selling, general and administrative expense | ||||||||
| Americas | $ | 33,020 | $ | 30,213 | ||||
| Asia - Pacific | 3,107 | 8,437 | ||||||
| EMEA | 1,138 | 5,023 | ||||||
| Total Selling, general and administrative expense | $ | 37,265 | $ | 43,673 | ||||
| Operating Income (loss) | ||||||||
| Americas | $ | 1,821 | $ | 7,240 | ||||
| Asia - Pacific | (999 | ) | (599 | ) | ||||
| EMEA | 102 | 2,757 | ||||||
| Total Operating Income (loss) | $ | 924 | $ | 9,398 | ||||
| Interest expense | ||||||||
| Americas | $ | 65 | $ | 1,388 | ||||
| Asia - Pacific | 2,157 | 122 | ||||||
| EMEA | - | 409 | ||||||
| Total Interest expense | $ | 2,222 | $ | 1,919 | ||||
| Other expense (income), net | ||||||||
| Americas | $ | (1,083 | ) | $ | 1,070 | |||
| Asia - Pacific | 1,254 | (759 | ) | |||||
| EMEA | - | 35 | ||||||
| Total Other expense (income), net | $ | 171 | $ | 346 | ||||
| Income (loss) before income tax expense | ||||||||
| Americas | $ | (4,990 | ) | $ | 4,304 | |||
| Asia - Pacific | 6,338 | 236 | ||||||
| EMEA | (2,817 | ) | 2,593 | |||||
| Total Income (loss) before income tax expense | $ | (1,469 | ) | $ | 7,133 | |||
| Income tax expense (benefit) | ||||||||
| Americas | $ | 1,243 | $ | 1,543 | ||||
| Asia - Pacific | (64 | ) | 62 | |||||
| EMEA | 39 | 752 | ||||||
| Total Income tax expense (benefit) | $ | 1,218 | $ | 2,357 | ||||
| Net income (loss) | ||||||||
| Americas | $ | (6,233 | ) | $ | 3,236 | |||
| Asia - Pacific | 6,402 | (24 | ) | |||||
| EMEA | (2,856 | ) | 1,564 | |||||
| Total Net income (loss) | $ | (2,687 | ) | $ | 4,776 | |||
| Net income (loss) attributable to non-controlling interest | ||||||||
| Americas | $ | 277 | $ | (492 | ) | |||
| Asia - Pacific | (104 | ) | 33 | |||||
| EMEA | 290 | 1,333 | ||||||
| Total Net income (loss) attributable to non-controlling interest | $ | 463 | $ | 874 | ||||
| Net Income (loss) attributable to SPAR Group, Inc. | ||||||||
| Americas | $ | (6,510 | ) | $ | 3,729 | |||
| Asia - Pacific | 6,506 | (57 | ) | |||||
| EMEA | (3,146 | ) | 230 | |||||
| Total Net Income (loss) attributable to SPAR Group, Inc. | $ | (3,150 | ) | $ | 3,902 | |||
| Depreciation and amortization: | ||||||||
| Americas | $ | 1,518 | $ | 1,737 | ||||
| Asia - Pacific | 66 | 94 | ||||||
| EMEA | 32 | 170 | ||||||
| Total Depreciation and amortization: | $ | 1,616 | $ | 2,001 | ||||
| Capital expenditures: | ||||||||
| Americas | $ | 1,134 | $ | 1,077 | ||||
| Asia - Pacific | 5 | 71 | ||||||
| EMEA | - | 101 | ||||||
| Total Capital expenditures: | $ | 1,139 | $ | 1,249 | ||||
There were no inter-segment sales for 2024 or 2023.
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Assets: | ||||||||
| Americas | $ | 56,431 | $ | 71,372 | ||||
| Asia - Pacific | - | 13,361 | ||||||
| EMEA | - | 5,548 | ||||||
| Total assets | $ | 56,431 | $ | 90,281 | ||||
Geographic Data (in thousands)
| Year Ended December 31, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| Net international revenue: | % of consolidated net revenue | % of consolidated net revenue | ||||||||||||||
| United States | $ | 117,507 | 59.7 | % | $ | 104,647 | 39.8 | % | ||||||||
| Brazil | 33,185 | 16.9 | % | 74,873 | 28.5 | % | ||||||||||
| South Africa | 8,277 | 4.2 | % | 34,562 | 13.2 | % | ||||||||||
| Mexico | 12,235 | 6.2 | % | 11,691 | 4.4 | % | ||||||||||
| China | 2,698 | 1.4 | % | 10,167 | 3.9 | % | ||||||||||
| Japan | 3,778 | 1.9 | % | 6,256 | 2.4 | % | ||||||||||
| India | 4,829 | 2.5 | % | 6,148 | 2.3 | % | ||||||||||
| Canada | 14,305 | 7.2 | % | 12,494 | 4.8 | % | ||||||||||
| Australia | - | 0.0 | % | 1,909 | 0.7 | % | ||||||||||
| Total net international revenue | $ | 196,814 | 100.0 | % | $ | 262,747 | 100.0 | % | ||||||||
| (in thousands) | Year Ended December 31, | |||||||
| 2024 | 2023 | |||||||
| Long lived assets: | ||||||||
| Americas | $ | 4,479 | $ | 4,585 | ||||
| Asia - Pacific | - | 1,015 | ||||||
| EMEA | - | 745 | ||||||
| Total long lived assets | $ | 4,479 | $ | 6,345 | ||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.