Q2 2024 SPAR Group Inc Earnings Call
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Operator: .................. [inaudible] Good morning, and welcome to the SPAR Group second quarter 2024 financial results conference call. All participants will be in a listen-only mode.
Speaker Change: Good morning, and welcome to the SPAR Group second quarter 2024 financial results conference call.
Operator: For questions, should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. Please note, this event is being recorded. I would now like to turn the conference over to Sandy Martin of Three Part Advisors. Please go ahead.
Speaker Change: All participants will be in listen-only mode.
Speaker Change: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
Speaker Change: Please note, this event is being recorded.
Speaker Change: I would now like to turn the conference over to Sandy Martin of Three Part Advisors. Please go ahead.
Sandy Martin: Thank you, Operator, and good morning, everyone. We appreciate you joining us for the SPAR Group, Inc. conference call to review the second quarter 2024 results. Joining me on the call today are SPAR's Chief Executive Officer, Mike Matacunas, and the company's Chief Financial Officer, Antonio Calisto Pato. This call is also being webcast and can be accessed through the audio link on the events and presentations page of the investor relations section at investors dot sparring dot com. The information recorded on this call speaks only as of today, so please be advised that any time-sensitive information may no longer be accurate as of the date of any replay or transcript reading.
Sandy Martin: I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements, expectations, future events, or future financial performance, or forward-looking statements, may be made pursuant to the safe harbor provisions of the private security litigation reform act of 1995. Forward-looking statements, by their nature, are uncertain and outside of the company's control. Actual results may differ materially from those expressed or implied.
Sandy Martin: Thank you, Operator, and good morning, everyone. We appreciate you joining us for the SPAR Group Inks conference call to review the second quarter 2024 results.
Speaker Change: Joining me on the call today are SPARS Chief Executive Officer Mike Matacunas and the company's Chief Financial Officer Antonio Calisto-Pato.
Speaker Change: This call is also being webcast and can be accessed through the audio link on the events and presentations page of the investor relations section at investors.sparing.com.
Speaker Change: The information recorded on this call speaks only as of today, so please be advised that any time-sensitive information may no longer be accurate as of the date of any replay or transcript reading.
Speaker Change: I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements,
Speaker Change: expectations, future events, or future financial performance are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Speaker Change: Forward-looking statements by their nature are uncertain and outside of the company's control. Actual results may differ materially from those expressed or implied. Please refer to today's earnings press release for our disclosures on forward-looking statements.
Speaker Change: These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission.
Speaker Change: Management may also refer to non-GAAP financial measures and reconciliations to the nearest GAAP measures can be found at the end of our earnings release.
Speaker Change: SPAR group assumes no obligation to update or revise any forward-looking statements publicly.
Mike Matacunas: Finally, the earnings press release we issued earlier today is posted on the Investor Relations section of our website at sparing.com. A release copy was also included in the 8K submitted to the SEC. Now, I would like to turn the call over to the company's CEO, Mike Matacunas. Thank you, Sandy, and good morning.
Mike Matacunas: Finally, the earnings press release we issued earlier today is posted on the investor relations section of our website at sparring.com. A release copy was also included in the 8K submitted to the SEC. Now I would like to turn the call over to the company's CEO, Mike Matacunas.
Mike Matacunas: I am pleased to share our second quarter results and continued progress. We will not be opening the line for questions today in light of our announced go private transaction that is in process. We announced on June 5th that we had signed a letter of intent with High Wire Capital to take SPAR Group private. This process is ongoing, and we will make additional announcements as we complete the appropriate steps. For the second quarter, our consolidated revenue was $57 million as we exited several global joint ventures in the quarter, and the performance of these businesses was in last year's numbers. To be specific, note that South Africa, China, and Australia National Merchandising Services revenue was not in our 2024 second quarter numbers.
Mike Matacunas: Thank you, Sandy, and good morning. I am pleased to share our second quarter results and continued progress.
Speaker Change: We will not be opening the line for questions today in light of our announced GoPrivate transaction that is in process.
Mike Matacunas: We announced on June 5th that we signed a letter of intent with High Wire Capital to take SPAR Group private. This process is ongoing and we will make additional announcements as we complete the appropriate steps.
Mike Matacunas: For the second quarter, our consolidated revenue was $57 million, and as we exited several global joint ventures in the quarter, and the performance of these businesses was in last year's numbers.
Mike Matacunas: To be specific, note that South Africa, China, Australia and National Merchandising Services revenue was not in our 2024 second quarter numbers. Brazil was in two of the three months in the quarter. We realize this makes comparing our performance difficult as we complete the simplification of our business.
Mike Matacunas: Perhaps the best way to think about our second quarter is to look within our America segment. It made up 94% of the company's total quarter revenue. Let's look at the United States and Canada specifically. These are our core businesses and they had a strong performance.
Mike Matacunas: The United States revenue is up 37% over last year. You may recall that our remodel business had slowed in the second quarter last year while clients pulled back on capital projects.
Mike Matacunas: As I noted in last quarter's call, the remodel business recovered faster than we expected and grew by 88% over last year in the second quarter. We've added new clients and expanded our key client relationships.
Mike Matacunas: We've added new clients and expanded our key client relations. The merchandising work also grew in the second quarter. We resigned a $5 million annual agreement with a long-tenured client and expanded our work at another small-box discount retailer with more than 10,000 stores at the same time.
Mike Matacunas: The merchandising work also grew in the second quarter. We re-signed a $5 million annual agreement with a long-tenured client and expanded our work at another small box discount retailer with more than 10,000 stores.
Mike Matacunas: We negotiated a new four-year $25 million plus agreement with a leading brand that expands our current business and covers both the United States and Canada. Behind both of these growth stories is our assembly and distribution services business that grew by 17.5% in the second quarter, expanded our services and distribution centers, and initiated new work in bike assembly for a larger, consolidated gross margin for the quarter was 19.2%. This is a hundred basis point improvement over the first quarter, reflects the strong growth and remodel and transformation. The remodel and transformation margins are lower than merchandising.
Mike Matacunas: At the same time, we negotiated a new four-year, $25 million plus agreement with a leading brand that expands our current business and covers both the United States and Canada.
Mike Matacunas: Behind both of these growth stories is our assembly and distribution services business that grew by 17.5% in the second quarter. We expanded our services and distribution centers and initiated new work in bike assembly for a large retailer.
Mike Matacunas: Consolidated gross margin for the quarter was 19.2 percent. This is a hundred basis point improvement over the first quarter. Reflects the strong growth and remodel and transformation work.
Mike Matacunas: So when this grows disproportionately, the consolidated margin is lower. SGNA's consolidated margin for the second quarter was 9.5 million, down 1.1 million from 10.6 million last year, but up 60 basis points is a percent of revenue. As you might expect, as we divest from these international joint ventures, the cost of exiting has a tail on it. In addition, we are spending money to support our strategic initiatives. In general, we believe the dollars are trending the right way, and we are managing SG&A care.
Speaker Change: The remodel and transformation margins are lower than merchandising. So when this grows disproportionately, the consolidated margin is lower.
Speaker Change: That's DNA for the second quarter was 9.5 million down 1.1 million from 10.6 million last year But up 60 basis points is a percent of revenue
Speaker Change: As you might expect, as we divest from these international joint ventures, the cost of exiting has a tail on it. In addition, we are spending money to support our strategic initiative. In general, we believe that dollars are trending the right way, and we are managing SG&A carefully.
Mike Matacunas: As a result of the one-time capital gain, consolidated EBITDA for the quarter was $6.4 million, up approximately $4 million from last year. The resulting net income attributable to SPAR for the quarter was $3.6 million, or $0.15 per share. We have more work to complete the simplification of our business. We are announcing our exit from our business in Japan today. This transaction has been completed and will close without condition later this month.
Speaker Change: As a result of the one-time capital gain, consolidated EBITDA for the quarter was $6.4 million, approximately $4 million in last year. The resulting net income attributable to SPAR for the quarter was $3.6 million or $15 per share.
Speaker Change: We have more work to complete the simplification of our business. We are announcing our exit of our business in Japan today. This transaction has been completed and will close without condition later this month.
Mike Matacunas: We continue to operate in the U.S., Canada, Mexico, and India. The core of our business is the U.S. and Canada, which have significant growth potential. We have dialed in our ability to recruit because the pipeline is strong, cash is flowing in, and we are energized by the market's reaction to our strategy. After Antonio covers more detailed financial results, I will share additional thoughts and insights about the business. Antonio
Speaker Change: We continue to operate in the U.S., Canada, Mexico, and India. The core of our business is the U.S. and Canada with significant growth potential.
Speaker Change: We have dialed in our ability to recruit, the pipeline is strong, cash is excellent, and we are energized by the market's reaction to our strategy. After Antonio covers more detailed financial results, I will share additional thoughts and insights about the business. Antonio? Thank you, Mike, and good morning, everyone.
Antonio Pato: Thank you, Mike, and good morning, everyone. In the second quarter, net revenue was total $57.3 million, reflecting a decline from the prior year due to our strategic exits of our South Africa, China, Australia, and NMS joint venture. This act resulted in zero revenues from these entities in the current quarter compared to last year.
Antonio Calisto-Pato: In the second quarter, net revenues totaled $57.3 million, reflecting a decline from the prior year due to our strategic exits of our South Africa, China, Australia, and NMS joint ventures.
Antonio Calisto-Pato: These exits resulted in zero revenues from these entities in the current quarter compared to last year.
Antonio Pato: However, Q2 net revenues were primarily driven by the Americas segment, which generated $54 million, marking a 3.8% increase compared to the prior year. During the second quarter, we completed the acquisition of the remaining 49% of ResourcePlus, now owning 100% of all U.S. business. Our joint venture in Brazil was sold in the second quarter, and as a result, we reported a partial quarter of revenues in Q2 2024 compared to last year. As Mike mentioned, our ongoing U.S.-based revenues increased by 37%, and our Canadian business saw a 40% increase.
Antonio Calisto-Pato: However, Q2 net revenues were primarily driven by the America segment, which generated $54 million, marking a 3.8% increase compared to the prior year.
Antonio Calisto-Pato: During the second quarter, we completed the acquisition of the remaining 49% of ResourcePlus, now owning 100% of all U.S. businesses.
Antonio Calisto-Pato: Our joint venture in Brazil was sold in the second quarter and as a result we reported partial quarter of revenues in Q2 2024 compared to last year.
Speaker Change: is Mike mentioned, are ongoing US-based revenues increased by 37% and are Canadian business, so a 40% increase.
Antonio Pato: This growth is primarily due to our remodel business and the continuation of a significant recovery in store remodels that started in 2023. Our growth profit for the second quarter was $11 million, or 19.2% of revenues, compared to $13.1 million, or 19.9% of revenues in the prior year quarter. The margin compression was primarily due to a shift towards the remodeling business, which inherently has higher labor and travel.
Speaker Change: This growth is primarily due to our remodel business and continuation of a significant recovery in store remodels that started in 2023.
Speaker Change: Our growth profit for the second quarter was $11 million, or 19.2% of revenues, compared to $13.1 million, or 19.9% of revenues in the prior year quarter.
Speaker Change: The margin compression was primarily due to a shift towards the remodeling business, which inherently has higher labor and travel costs.
Antonio Pato: Telling General and Administrative Expenses were $9.5 million or 16.7% of revenues in the second quarter, compared to $10.6 million or 16.1% of revenues in the prior year. SCNA costs, including non-recurring strategic alternative costs of $325,000, during Q2 2024. The second quarter also included a $4.9 million net gain on the sale of the Brazil Convention, which was partially offset by a loss on the. Operating income for the quarter was $5.9 million, a significant increase from $2 million in the prior year period.
Speaker Change: Selling General and Administrative Expenses were $9.5 million, or 16.7% of revenues in the second quarter, compared to $10.6 million, or 16.1% of revenues in the prior year.
Speaker Change: A CNA cost including non-recording strategic alternative cost of $325,000 during Q2 2024.
Speaker Change: The second quarter also included a $4.9 million net gain on the sale of the Brazil joint venture, which was partially offset by a loss on the China joint venture.
Speaker Change: Operating income for the quarter was $5.9 million, a significant increase from $2 million in the prior year period.
Antonio Pato: Net income attributable to SPAR Group Inc. for Q2 was $3.6 million, or $0.15 per diluted share, compared to a net income of $639,000, or $0.03 per share, in the year-ago quarter. Adjusted net income attributable to SPAR Group Inc. was $99,000, or 0 cents per diluted share, compared to $696,000, or 3 cents per share, in the year-a Consolidated EBITDA for the second quarter of 2024 was $6.4 million, compared to $2.5 million in the prior year quarter. This includes gains of $4.9 million on the sale of joint ventures.
Speaker Change: Net income attributable to SPAR Group Inc. for Q2 was $3.6 million or $0.15 per diluted share compared to a net income of $639,000 or $0.03 per share in the year-ago quarter.
Speaker Change: Adjusted net income attributable to SPAR Group Inc. was $99,000 or 0 cents per diluted share compared to $696,000 or 3 cents per share in the year-ago quarter.
Speaker Change: Consolidated EBITDA for the second quarter of 2024 was 6.4 million dollars compared to 2.5 million dollars in the prior year quarter. This includes gains of 4.9 million dollars on the sale of joint ventures.
Mike Matacunas: Consolidated adjusted EBITDA was $1.9 million compared to $2.6 million in the prior year. Q2 adjusted EBITDA at Tribalto SPAR Group Inc. was $1.4 million compared to $1.6 million in the prior year quarter. Now turning to the year-to-date results, net revenues for the first half of 2024 were $126 million, with the American segment contributing $108.7 million. This represents a decrease from $130 million in the prior year, primarily due to our strategic exits from Australia, the U.S., and NMS joint ventures as of the end of 2023, and from South Africa, Brazil, and China during the first half of 2024.
Speaker Change: Consolidated adjusted EBITDA was $1.9 million compared to $2.6 million in the prior year.
Speaker Change: Q2 Adjusted EBITDA at Chubutu Spy Group Inc. was $1.4 million compared to $1.6 million in the prior year quarter.
Speaker Change: Now, turning to the year-to-date results, net revenues for the first half of 2024, or $126 million, with the American segment contributing a $108.7 million.
Speaker Change: This represents a decrease from $130 million in the prior year, primarily due to our strategic exits from Australia, the U.S. NMS joint ventures as of the end of 2023, and from South Africa, Brazil and China during the first half of 2024.
Mike Matacunas: First half net income attributable to SPAR Group Inc was $10.3 million or 43 cents per diluted share, all due to chair, a significant improvement compared to $1.5 million or $0.06 per diluted share in the prior year. Adjusted net income attributable to SPAR Group Inc for the 2024 first half was $1.4 million or 6 cents per diluted share compared to $1.3 million of 5 cents per diluted share in the prior Consolidated Adjusted Abit for the first half of 2024 is $5.3 million, compared to $6.7 million in a priori.
Speaker Change: First half net income attributable to SPAR Group Inc. was $10.3 million or $0.43 per diluted share. A significant improvement compared to $1.5 million or $0.06 per diluted share in the prior year.
Speaker Change: Adjusted net income attributable to SPAR Group Inc. for the 2024 first half was $1.4 million, or $0.06 per diluted share, compared to $1.3 million, or $0.05 per diluted share in the prior year.
Speaker Change: Consolidators are just at habit for the first off of 2024 with 5.3 million dollars, compared to 6.7 million dollars in a priori.
Mike Matacunas: Turning to the company's financial position as of June 30, 2024, our balance sheet remains strong, with total worldwide liquidity at quarter end of $33.5 million. This includes $21.7 million in cash, cash equivalents, and restricted cash, and $11.8 million of news availability. Cash from operating activities was $170,000 in the first six months of the year, and the [inaudible] As of June 30, the company's networking capital stood at $24.8 million, and the accounts receivable balance stood at $38 million. With that, I would like to turn it back to Michael.
Speaker Change: Turning to the company financial position as of June 30, 2024, our balance sheet remains strong with total worldwide liquidity at quarter end of 33.5 million dollars.
Speaker Change: This includes 21.7 million dollars in cash, cash equivalents and restricted cash, and 11.8 million dollars of unused availability.
Speaker Change: Cash from Operating Activities was $170,000 in the first six months of the year, and the net increase in cash was $11 million.
Speaker Change: As of June 30, the company's networking capital stood at $24.8 million, and the accounts receiveable balance with $38 million.
Speaker Change: With that, I would like to turn it back to Mike.
Mike Matacunas: Thank you, Antonio. Recently, in the midst of a strategic initiative by an interested party, I was asked why I joined SPAR, what makes SPAR different from the competition, what are the secret ingredients? What is the potential?
Mike Matacunas: Thank you, Antonio.
Mike Matacunas: Recently, in the midst of this strategic initiative by an interested party, was asked why I joined SPAR, but makes SPAR different than the competition, what are the secret ingredients, what is the potential, and perhaps most importantly, why is this a good investment.
Mike Matacunas: And perhaps, most importantly, why is this a good investment? The first part of my answer. SPAR serves a growing need in the market, as labor for retailers becomes tighter, consumer expectations rise, room for operational error, smaller retailers, and flexibility, and they need it more than before. 20 years ago, you could operate a small retail store with 175 to 215 hours of weekly payroll.
Mike Matacunas: and the first part of my answer.
Mike Matacunas: is that SPAR serves a growing need in the market.
Mike Matacunas: As labor for retailers becomes tighter, consumer expectations rise, room for operational error smaller. Retailers need flexibility and they need it more than before.
Mike Matacunas: 20 years ago you could operate a small retail store with 175 to 215 hours of weekly payroll. It means a store manager, assistant store manager, one to two cashiers, and a series of part-time staff.
Mike Matacunas: You need a store manager, a systems manager, one to two cashiers, and a series of part-time staff. Today, the cost of this staff is higher. Recruiting is more difficult, retention nearly unheard of, and there are more remote locations than ever. If you want to operate a great retail box, you need flexibility. One of the basic forms of this flexibility is third-party labor. Ten you, as a retailer, leverage the vendors and brands to provide labor to stock their shelves, maintain presentations, and change price tags, which is the success of retailers today such as Target, Walmart, Dollar General, Family Dollar, Meyers, and so many more.
Mike Matacunas: Today the cost of this staff is higher, recruiting is more difficult, retention nearly unheard of, and more remote locations than ever. If you want to operate a great retail box, you need flexibility.
Mike Matacunas: One of the basic forms of this flexibility is third-party labor.
Mike Matacunas: and you as a retailer leverage the vendors and brands to provide labor to stock their shelves, maintain presentations, and change price tags, etc.
Mike Matacunas: who's just successful retailers today such as Target, Walmart, Dollar General, Family Dollar, Meyers, and so many more. They understand this.
Mike Matacunas: They understand that they're expanding the labor ecosystem to support their business and differentiate themselves. And this is an area of distinction, or SPAR. SPAR offers a unique combination of scale and flexibility. The competition only goes for scale, but the future requires change. Put a final point on it. Competition locks you into the scale approach by representing the brand. In other words, retailers have to do it their way, as opposed to the best way for the retailer's consumer.
Mike Matacunas: They are expanding the labor ecosystem to support their business and differentiate themselves, and this is an area of distinction.
Mike Matacunas: or SPAR.
Speaker Change: SPAR offers the unique combination of scale and flexibility.
Speaker Change: The competition only goes for scale, but the future requires both.
Speaker Change: to put a finer point on it.
Speaker Change: The competition locks you into the scale approach by representing the brand. In other words, retailers have to do it their way.
Mike Matacunas: Now, I'm a 30-plus year retailer. That's not a sustainable way to do business in this sector. If you want to win, you enable the retailer to optimize the consumer experience in whatever way makes them profitable. If Five Below needs to turn the greeting cards to make sure Mother's Day is set and nothing else is done. If Dollar General wants to introduce an exciting new category of product and then maintain it for six months. Done.
Speaker Change: as opposed to the best way for the retailer's consumer. Now, I'm a 30-plus year retailer. That's not a sustainable way to do business in this sector. If you want to win, you enable the retailer to optimize the consumer experience in whatever way makes them win.
Speaker Change: If Five Below needs to turn the greeting cards to make sure Mother's Day is set and nothing else, done. If Dollar General wants to introduce an exciting new category of product and then maintain it for six months, done. If the Bleach Aisle needs new pricing, checkout area replenishing, gift cards audited, done.
Mike Matacunas: If the bleach aisle needs new pricing, checkout area replenishment, gift cards audited, done. Flexibility, only SPAR offers this approach in the market, and the need for this flexibility on a greater scale is growing over here. The second part of the answer I give is that we needed to go on a diet.
Dunn: Done. Flexibility. Only SPAR offers this approach in the market and the need for this flexibility on a greater scale is growing every year.
Dunn: The second part of the answer I give...
Mike Matacunas: to get to a lean, focused machine. [inaudible] With those who have followed me in my career, I like transformation, boldness, and delivering results. When I arrived at SPAR, we were in nine countries plus two defunct others, with Domestic and Internet Action and Joint Thank You. We were distracted by global economic issues, repatriating cash, transfer pricing, and management calls from six in the morning till 10 at night to cover the time zone. And fundamentally, our shareholders were not getting value for their money. The decades-old strategy did not produce results for our shareholders.
Dunn: is that we needed to go on a diet.
Dunn: and get to a lean focused machine.
Speaker Change: For those who have followed me in my career, you know, I like transformation boldness and delivering results when I arrived at Spar We were in nine countries plus two defunct others
Speaker Change: We had domestic and international joint ventures. We were distracted by global economic issues, repatriating cash, transfer pricing, and management calls from 6 in the morning till 10 at night to cover the time zone. And fundamentally, our shareholders were not getting value from this.
Mike Matacunas: We needed to trim the facts and work our core. Core strength and stability are the basis for our growth, and SPAR's core was merchandising and retail transformation in the United States and Canada. This is where we can create long-term sustainable value for our shareholders. Accomplishing this transformation has been a monumental task, negotiating exits in far-reaching countries while strengthening our core all the while. Focusing on shareholder value creation has taken time, but the initial results are compelling. The third reason I give to WISEPAR is our secret ingredient: our people.
Speaker Change: The decades-old strategy did not produce results for a share of it. We needed to trim the fact and work our core.
Speaker Change: Core strength and stability is the basis for our growth and as far as core was merchandising and retail transformation in the United States and Canada. This is where we can create long-term sustainable value for our shareholders.
Speaker Change: Accomplishing this transformation has been a monumental task for negotiating exits and far-reaching countries while strengthening our core all the while.
Speaker Change: focusing on shareholder value creation has taken time, but the initial results are compelling.
Speaker Change: The third reason I give to White Spar is our secret ingredient, our people.
Mike Matacunas: I've met and consider the CEOs of my competition serious executives. These are proven professionals with a history of success, but they don't have what I have, the SPAR. Cory Bells, our Chief Operating Officer, is widely known as a thought leader in proven executive leadership. William Lennon, our Chief Strategy and Growth Officer, has decades of proven results. Antonio Colisto Pato, our Chief Financial Officer, has a Master's in Tax Law degree and an MBA just to keep his mind sharp. And behind this group are hundreds of others, just like
Speaker Change: I've met and considered the CEOs of my competition serious executives. These are proven professionals.
Speaker Change: with a history of success, but they don't have what I have.
the Spartan: the SPAR team.
the Spartan: Corey Belzer, our Chief Operating Officer, is widely known.
the Spartan: as a thought leader and proven executive. William Lenane, our chief strategy and growth officer, has decades of proven results. Antonio Callisto-Pato, our chief financial officer, has a master in tax, law degree, and MBA just to keep his mind sharp. And behind this group are hundreds of others just like them.
Mike Matacunas: The DNA of SPAR is a client-centric, collaborative, innovative, and inspirational spirit. One of the greatest parts of my job is spending time with our team members and sharing in their delight as they solve complex problems with really creative ideas. So while others stare inwards and into the rearview mirror, the SPAR team looks out the windshield. We're predicting the bend in the road with the signs and understand the changing lamps.
the Spartan: Deep in the DNA of SPAR.
Speaker Change: is a client-centric, collaborative, innovative, and inspirational spirit. One of the greatest parts of my job.
Speaker Change: is to spend time with our team members and share in their delight as they solve complex problems with really creative ideas.
Speaker Change: So, while others stare inwards and into the rearview mirror, the SPAR team looks out the windshield.
Speaker Change: predicting the bend in the road, read the signs, and understand the changing landscape.
Mike Matacunas: And I know that other CEOs have talked about their teams with reverence and appreciation; this SPAR Group is dead. I've worked at the top of the Fortune 150, built successful businesses, bought companies, and had the privilege of working with some amazing people. But this is the only place where you can find this many.
Speaker Change: And I know that other CEOs have talked about their teams with reverence and appreciation.
Speaker Change: But this SPAR group is different.
Speaker Change: I've worked at the top of the Fortune 150, built successful businesses.
Speaker Change: bought companies and had the privilege of working with some amazing people. But this is the only place where you can find this many of them.
Mike Matacunas: There's a group of talented, passionate, and dedicated people at Carriage State, but the working client success, and this is a special ingredient, having underscored these three points: growing demand, a focused machine, and amazing people. I also want to thank our board comprised of proven senior executives. We've accomplished more in the last 12 months with this board and the company than in the last 10 years. I appreciate their guidance. Partnership with support for driving value and delivering results for the shareholder.
Speaker Change: There's a group of talented, passionate, and dedicated people who care each day about their work and client success, and this is a special ingredient.
Speaker Change: Evan underscored these three points, growing demand, a focused machine, and amazing people. I also want to thank our board comprised of proven senior executives. We've accomplished more in the last 12 months with this board than the company has in the last 10 years. I appreciate their guidance.
Speaker Change: partnership in support for driving value and delivering results for the shareholders.
Operator: While we have much more to do and exciting times ahead, our mantra for 2024 is to go for bold. This is a great time to be SPAR. Thank you for your interest in SPAR and participating in our earnings call. Cup is called today, and have a great day. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. Too many people will go to jail if you want to join The Journey? lol
Speaker Change: While we have much more to do and exciting times ahead, our mantra for 2024 is go for bold. This is a great time to be SPAR.
Scott Spar: Thank you for your interest in SPAR and participating in our earnings call, conference call today, and have a great day.
Speaker Change: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Speaker Change: [music]
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Mike Matacunas: Brazil was in two of the three months in the quarter, and I realize this makes comparing our performance difficult. We complete the simplification of our business. Perhaps the best way to think about our second quarter is to look within our America segment, which made up 94% of the company's total quarterly revenue. Let's look at the United States and Canada specifically; these are core businesses, and they had a strong performance. United States revenue is up 37% over last. You may recall that our remodel business slowed in the second quarter last year while clients pulled back on capital. As I noted in last quarter's call, the remodel business recovered faster than we expected and grew by 88% over last year in the second quarter.
Sandy Martin: Please refer to today's earnings press release for our disclosures on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission. Management may also refer to non-GAAP financial measures, and reconciliations to the nearest GAAP measures can be found at the end of our earnings release. SPAR Group assumes no obligation to update or revise any forward-looking statements publicly.