SPAR Group Signs Joint Venture in Turkey
Tarrytown, NY - August 23, 2011 - SPAR Group, Inc. (NASDAQ: SGRP), a diversified international merchandising and marketing services company that provides a broad array of services worldwide to help companies improve their sales, today announced the signing of a joint venture agreement to expand its operations into Turkey. The new venture, SPAR NDS, in which SPAR will hold a 51% ownership interest, expects to generate $4 million in annualized profitable revenue over the next twelve months.
The New Venture has best-in-class clients that will provide immediate accretive revenues and credibility to the newly formed endeavor. The Company will specialize in the areas of in-store merchandising and demonstrative services.
"Management is excited with the Company's reentrance into the Turkish market, and expects this partnership to provide additional earnings to our profitable international business line," stated Gary Raymond, Chief Executive Officer of SPAR Group. "SPAR Groups merchandising services are now available in 9 countries spanning 5 continents. This high margin endeavor is expected to add several new clients to our impressive group of Fortune 500 clients that we already serve. Going forward, the Company expects to sign an additional profitable JV within the current quarter. The signing of the additional JVs will provide us with additional growth that will help increase our overall revenue base and increase our profitability."
Mr. Nurgul Yilmaz, NDS's Managing Partner and CEO of SPAR NDS, added, "We are extremely pleased to partner with SPAR GROUP within the rapidly expanding Turkish marketplace. The Company looks forward to combining our 15 years of local expertise with SPAR's exceptional Real-Time Technology. Management's goal is to leverage our innovative and creative solutions to become a leader within the merchandising and marketing services arena."
About SPAR Group
SPAR Group, Inc. is a diversified international merchandising and marketing services company that provides a broad array of services worldwide to help companies improve their sales, operating efficiency and profits at retail locations. SPAR Group provides product services, project services, in-store events, radio frequency identification ("RFID"), technology services and marketing research covering all product and trade classifications, including mass market, drug store, convenience store and grocery chains. Product services include product additions; placement, reordering, replenishment, labeling, evaluation and deletions, and project services include seasonal and special product promotions, product recalls and complete setups of departments and stores. The company operates throughout the United States and internationally in 9 of the most populated countries, including China and India. For more information, visit the SPAR Group's Web site at www.sparinc.com.
Forward Looking Statements
Certain statements in this news release and such conference call are forward-looking, including (without limitation) growing revenues and profits through organic growth and acquisitions, attracting new business that will increase SPAR Group's revenues, continuing to maintain costs and consummating any transactions. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the company's control. The company's actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of SPAR Group's selling and marketing functions, continued customer satisfaction and contract renewal, new product development, continued availability of capable dedicated personnel, continued cost management, the success of its international efforts, success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in SPAR Group's most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
SPAR Group, Inc.
James R. Segreto, Chief Financial Officer