Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 13, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'SPAR GROUP INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 20,523,909 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001004989 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
Current assets: | ' | ' | |
Cash and cash equivalents | $3,111,000 | $1,792,000 | [1] |
Accounts receivable, net | 19,037,000 | 21,414,000 | [1] |
Deferred income tax | 178,000 | 194,000 | [1] |
Prepaid expenses and other current assets | 710,000 | 596,000 | [1] |
Total current assets | 23,036,000 | 23,996,000 | [1] |
Property and equipment, net | 2,039,000 | 1,777,000 | [1] |
Goodwill | 1,792,000 | 1,792,000 | [1] |
Intangibles | 2,410,000 | 1,468,000 | [1] |
Other assets | 651,000 | 237,000 | [1] |
Total assets | 29,928,000 | 29,270,000 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 4,024,000 | 4,177,000 | [1] |
Accrued expenses and other current liabilities | 5,419,000 | 6,729,000 | [1] |
Accrued expenses due to affiliates | 2,159,000 | 705,000 | [1] |
Customer deposits | 627,000 | 263,000 | [1] |
Lines of credit | 2,214,000 | 2,393,000 | [1] |
Total current liabilities | 14,443,000 | 14,267,000 | [1] |
Long-term debt and other liabilities | 129,000 | 268,000 | [1] |
Total liabilities | 14,572,000 | 14,535,000 | [1] |
SPAR Group, Inc. equity | ' | ' | |
Authorized and available shares– 2,445,598 Issued and outstanding shares – none – September 30, 2013 and none – December 31, 2012 | ' | ' | [1] |
Authorized shares – 47,000,000 Issued shares 20,647,969 – September 30, 2013 and 20,469,471 – December 31, 2012 Outstanding shares – 20,519,319 – September 30, 2013 and 20,456,453 – December 31, 2012 | 206,000 | 205,000 | [1] |
Treasury stock, at cost, 128,650 shares | -252,000 | -26,000 | [1] |
Additional paid-in capital | 15,267,000 | 14,738,000 | [1] |
Accumulated other comprehensive loss | -887,000 | -382,000 | [1] |
Accumulated deficit | -1,452,000 | -1,696,000 | [1] |
Total SPAR Group, Inc. equity | 12,882,000 | 12,839,000 | [1] |
Non-controlling interest | 2,474,000 | 1,896,000 | [1] |
Total equity | 15,356,000 | 14,735,000 | |
Total liabilities and equity | $29,928,000 | $29,270,000 | [1] |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 | [1] |
Preferred stock, shares authorized (in Shares) | 2,445,598 | 2,445,598 | [1] |
Preferred stock, shares issued (in Shares) | 0 | 0 | [1] |
Preferred stock, shares outstanding (in Shares) | 0 | 0 | [1] |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 | [1] |
Common stock, shares authorized (in Shares) | 47,000,000 | 47,000,000 | [1] |
Common stock, shares issued (in Shares) | 20,647,969 | 20,469,471 | [1] |
Common stock, shares outstanding (in Shares) | 20,519,319 | 20,456,453 | [1] |
Treasury stock, shares (in Shares) | 128,650 | ' | |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net revenues | $27,753 | $25,357 | $80,152 | $68,984 |
Cost of revenues | 21,228 | 19,042 | 61,252 | 50,555 |
Gross profit | 6,525 | 6,315 | 18,900 | 18,429 |
Selling, general and administrative expenses | 5,747 | 5,112 | 16,900 | 15,518 |
Depreciation and amortization | 388 | 297 | 1,097 | 859 |
Operating income | 390 | 906 | 903 | 2,052 |
Interest expense | 28 | 32 | 80 | 96 |
Other income, net | -5 | -29 | -73 | -36 |
Income before provision for income taxes | 367 | 903 | 896 | 1,993 |
Income tax expense (benefits) | -139 | 62 | 200 | 134 |
Income from continuing operations | 506 | 841 | 696 | 1,859 |
Income from discontinued operations | 17 | 18 | 98 | 95 |
Net income | 523 | 859 | 794 | 1,954 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustments | 56 | 158 | -505 | -37 |
Comprehensive income | 579 | 1,017 | 289 | 1,917 |
Comprehensive income attributable to the non-controlling interest | -192 | -281 | -550 | -351 |
Comprehensive income (loss) attributable to SPAR Group, Inc. | 387 | 736 | -261 | 1,566 |
Net income attributable to the non-controlling interest | -192 | -281 | -550 | -351 |
Net income attributable to SPAR Group, Inc. | $331 | $578 | $244 | $1,603 |
Basic | ' | ' | ' | ' |
Continuing operations (in Dollars per share) | $0.02 | $0.03 | $0.01 | $0.08 |
Discontinued operations (in Dollars per share) | $0 | $0 | $0 | $0 |
Diluted | ' | ' | ' | ' |
Continuing operations (in Dollars per share) | $0.02 | $0.03 | $0.01 | $0.07 |
Discontinued operations (in Dollars per share) | $0 | $0 | $0 | $0 |
Weighted average common shares – basic (in Shares) | 20,503 | 20,275 | 20,483 | 20,175 |
Weighted average common shares – diluted (in Shares) | 21,781 | 21,987 | 21,708 | 21,682 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (Unaudited) (USD $) | Common Stock [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Total |
Share data in Thousands | |||||
Balance at January 1, 2013 at Dec. 31, 2012 | $205,000 | ($26,000) | ($382,000) | $1,896,000 | $14,735,000 |
Balance at January 1, 2013 (in Shares) at Dec. 31, 2012 | 20,469 | ' | ' | ' | ' |
Issuance of stock options and restricted shares | ' | ' | ' | ' | 438,000 |
Issuance of stock options and restricted shares (in Shares) | 25 | ' | ' | ' | ' |
Exercise of stock options | 1,000 | ' | ' | ' | 95,000 |
Exercise of stock options (in Shares) | 154 | ' | ' | ' | ' |
Purchase of joint venture affecting non-controlling interest | ' | ' | ' | 21,000 | 21,000 |
Sale of joint venture affecting non-controlling interest | ' | ' | ' | -123,000 | -120,000 |
Other changes to non-controlling interest | ' | ' | ' | 130,000 | 130,000 |
Purchase of treasury shares | ' | -232,000 | ' | ' | -232,000 |
Re-issued treasury shares | ' | 6,000 | ' | ' | ' |
Other comprehensive loss | ' | ' | -505,000 | ' | -505,000 |
Net income | ' | ' | ' | 550,000 | 794,000 |
Balance at September 30, 2013 at Sep. 30, 2013 | $206,000 | ($252,000) | ($887,000) | $2,474,000 | $15,356,000 |
Balance at September 30, 2013 (in Shares) at Sep. 30, 2013 | 20,648 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | ||
Operating activities | ' | ' | |
Net income | $794,000 | $1,954,000 | |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | |
Depreciation and amortization | 1,097,000 | 859,000 | |
Bad debt | 48,000 | 54,000 | |
Share based compensation | 438,000 | 416,000 | |
Changes in non-controlling interest | 8,000 | ' | |
Changes in operating assets and liabilities, net of business acquisitions and dispositions: | ' | ' | |
Accounts receivable | 2,299,000 | -2,317,000 | |
Prepaid expenses and other assets | -512,000 | -598,000 | |
Accounts payable | -153,000 | 880,000 | |
Accrued expenses, other liabilities and customer deposits | 804,000 | 3,075,000 | |
Net cash provided by operating activities | 4,826,000 | 4,332,000 | |
Investing activities | ' | ' | |
Purchases of property, equipment and capitalized software | -1,039,000 | -704,000 | |
Partners investments in subsidiaries | 20,000 | 16,000 | |
Net cash used in investing activities | -2,540,000 | -1,088,000 | |
Financing activities | ' | ' | |
Net payments on lines of credit | -177,000 | -2,884,000 | |
Proceeds from options exercised | 95,000 | 105,000 | |
Payments on term debt | -22,000 | -29,000 | |
Payments on capital lease obligations | -154,000 | -162,000 | |
Purchase of treasury shares | -232,000 | -24,000 | |
Net cash used in financing activities | -490,000 | -2,994,000 | |
Effects of foreign exchange rate on cash | -477,000 | -26,000 | |
Net change in cash and cash equivalents | 1,319,000 | 224,000 | |
Cash and cash equivalents at beginning of period | 1,792,000 | [1] | 1,705,000 |
Cash and cash equivalents at end of period | 3,111,000 | 1,929,000 | |
Supplemental disclosure of cash flows information | ' | ' | |
Interest paid | 98,000 | 120,000 | |
Income taxes paid | 224,000 | 81,000 | |
Supplemental disclosure of non-cash financing activities | ' | ' | |
Acquisition of equipment through capital leases | ' | 253,000 | |
MFI Business [Member] | ' | ' | |
Investing activities | ' | ' | |
Purchase of subsidiary | -1,300,000 | ' | |
India Preceptor Subsidiairy [Member] | ' | ' | |
Investing activities | ' | ' | |
Purchase of subsidiary | -21,000 | ' | |
NMS, LLC [Member] | ' | ' | |
Investing activities | ' | ' | |
Purchase of subsidiary | -200,000 | -400,000 | |
Supplemental disclosure of non-cash financing activities | ' | ' | |
Liability related to Acquisition | ' | 200,000 | |
Stock issuance related to acquisition of NMS, LLC | ' | 165,000 | |
Mexican Subsidiary [Member] | ' | ' | |
Supplemental disclosure of non-cash financing activities | ' | ' | |
Liability related to Acquisition | ' | $200,000 | |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
1. Basis of Presentation | |
The unaudited, consolidated financial statements of SPAR Group, Inc., a Delaware corporation ("SGRP"), and its subsidiaries (together with SGRP, collectively, the "Company" or the "SPAR Group"), accompanying this Quarterly Report on Form 10-Q for the quarter and nine-month period ended September 30, 2013 (this "Quarterly Report"), have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation have been included in these interim financial statements. However, these interim financial statements should be read in conjunction with the annual consolidated financial statements and notes thereto for the Company as contained in the SGRP's Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission (the "SEC") on April 2, 2013 (the "2012 Annual Report"), and SGRP's Proxy Statement for its 2013 Annual Meeting of Stockholders as filed with the SEC on April 19, 2013 (the "2013 Proxy Statement"). Particular attention should be given to Items 1 and 1A of the Annual Report respecting the Company's Business and Risk Factors, respectively, and the following parts of SGRP's 2013 Proxy Statement: (i) SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT, (ii) CORPORATE GOVERNANCE, (iii) EXECUTIVE OFFICERS, COMPENSATION, DIRECTORS AND OTHER INFORMATION and (iv) EXECUTIVE COMPENSATION, EQUITY AWARDS AND OPTIONS. The Company's results of operations for the interim periods are not necessarily indicative of its operating results for the entire year. |
Note_2_Business_and_Organizati
Note 2 - Business and Organization | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Nature of Operations [Text Block] | ' |
2. Business and Organization | |
The SPAR Group is a supplier of merchandising and other marketing services throughout the United States and internationally. The Company also provides in-store event staffing, in-store audit service, product sampling, furniture and other product assembly services, technology services and marketing research services. Assembly services are performed in stores, homes and offices while those other services are primarily performed in mass merchandisers, office supply, grocery, drug store, independent, convenience and electronics stores. | |
As of September 30, 2013, the Company operates in 9 countries. Although it operates in a single reportable business segment (merchandising and marketing services), the Company currently divides its operations for marketing, administrative and other purposes into two geographic divisions: its Domestic Merchandising Services Division, which provides those services in the United States of America; and its International Merchandising Services Division, which provides similar merchandising, marketing services and in-store event staffing services in Japan, Canada, South Africa, India, China, Australia, Mexico and Turkey. The Company continues to focus on expanding its merchandising and marketing services business throughout the world. |
Note_3_Earnings_Per_Share
Note 3 - Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
3. Earnings Per Share | |||||||||||||||||
The following table sets forth the computations of basic and diluted earnings per share (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Income from continuing operations attributable to SPAR Group, Inc. | $ | 322 | $ | 569 | $ | 194 | $ | 1,554 | |||||||||
Denominator: | |||||||||||||||||
Shares used in basic net income per share calculation | 20,503 | 20,275 | 20,483 | 20,175 | |||||||||||||
Effect of diluted securities: | |||||||||||||||||
Employee stock options | 1,278 | 1,712 | 1,225 | 1,507 | |||||||||||||
Shares used in diluted net income per common share calculation | 21,781 | 21,987 | 21,708 | 21,682 | |||||||||||||
Basic net income per common share | $ | 0.02 | $ | 0.03 | $ | 0.01 | $ | 0.08 | |||||||||
Diluted net income per common share | $ | 0.02 | $ | 0.03 | $ | 0.01 | $ | 0.07 | |||||||||
Note_4_Credit_Facilities
Note 4 - Credit Facilities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Debt Disclosure [Text Block] | ' | ||||||||||||||||
4. Credit Facilities | |||||||||||||||||
Sterling Credit Facility: | |||||||||||||||||
SGRP and certain of its domestic subsidiaries, namely SPAR Marketing Force, Inc., National Assembly Services, Inc., SPAR Group International, Inc., SPAR Trademarks, Inc., and SPAR Acquisition, Inc. (each a "Subsidiary Borrower", and together with SGRP, collectively, the "Borrowers"), are parties to a Revolving Loan and Security Agreement dated as of July 6, 2010, as amended in June 2011, July 2012 and January 2013 (as amended, the "Loan Agreement"), with Sterling National Bank as "Lenders" and "Agent"(the "Sterling Credit Facility"). Effective January 1, 2013, the Sterling Credit Facility charged interest on the loans outstanding thereunder at the Prime Rate (as that term is defined in the Loan Agreement) plus one quarter of one percent (0.25%) per annum (instead of the higher rates previously charged), which interest rate automatically changes with each change in such Prime Rate. | |||||||||||||||||
Revolving Loans of up to $6.5 million are available to the Borrowers under the Sterling Credit Facility based upon the borrowing base formula defined in the Loan Agreement (principally 85% of "eligible" domestic accounts receivable less certain reserves). The Sterling Credit Facility is secured by substantially all of the assets of the Borrowers (other than SGRP's foreign subsidiaries, certain designated domestic subsidiaries, and their respective equity and assets). | |||||||||||||||||
The Sterling Credit Facility contains certain financial and other restrictive covenants and also limits certain expenditures by the Borrowers, including, but not limited to, capital expenditures and other investments. | |||||||||||||||||
The parties have amended the Sterling Loan Agreement effective as of July 1, 2013, to (among other things) extended the scheduled term of the Loan Agreement to July 6, 2016 (with no early termination fee), eliminated the requirement for a "closed lock box" so that collections no longer automatically pay down the loans under the Loan Agreement, and reduced the interest rate on those loans to the Agent's floating Prime Rate (as defined in the Loan Agreement) minus one half of one percent (0.50%) per annum (which is a reduction of 0.75 % per annum over the previous rate), and reduced the unused line fee to one-eighth of one percent (0.125%) per annum (which is half of the previous rate of one quarter of one percent (0.25%)). | |||||||||||||||||
See Note 17 to the Consolidated Financial Statements - Subsequent Events, respecting the Fifth Amendment to the Sterling Credit Facility dated October 30, 2013, which added the Company's Canadian subsidiaries as borrowers under that facility. | |||||||||||||||||
International Credit Facilities: | |||||||||||||||||
In October 2011, SPARFACTS Australia Pty. Ltd. replaced the Commonwealth Bank line of credit with a new receivables based secured line of credit facility with Oxford Funding Pty Ltd. for approximately $1.1 million. The facility provides for borrowing based upon a formula as defined in the agreement (principally 80% of eligible accounts receivable less certain deductions). The agreement technically expired on October 31, 2012, but is being extended from month to month at the Company's request. SPARFACTS is in the process of negotiating new financing. | |||||||||||||||||
SPAR Canada Company, a wholly owned Canadian subsidiary ("SCC"), had a secured credit agreement with Royal Bank of Canada ("RBC") providing for a Demand Operating Loan for a maximum borrowing of approximately $728,000. The Demand Operating Loan provided for borrowing based upon a formula as defined in the agreement (principally 75% of eligible accounts receivable less certain deductions) and had a minimum total debt to tangible net worth covenant. The RBC facility was replaced on October 30, 2013, when SCC became a borrower under the Sterling Credit Facility pursuant to the Fifth Amendment, as described in Note 17 to the Consolidated Financial Statements - Subsequent Events. | |||||||||||||||||
The Japanese subsidiary, SPAR FM Japan, Inc., a wholly owned subsidiary, has secured a loan with Mizuho Bank for approximately $204,000. The loan is payable in monthly of $2,400 at an interest rate of 0.1% per annum with a maturity date of February 28, 2018. The outstanding balance at September 30, 2013, was approximately $129,000. | |||||||||||||||||
Summary of Company Credit and Other Debt Facilities: (in thousands) | |||||||||||||||||
30-Sep-13 | Average | 31-Dec-12 | Average | ||||||||||||||
Interest Rate(1) | Interest Rate(2) | ||||||||||||||||
Credit Facilities Loan Balance: | |||||||||||||||||
United States | $ | 2,214 | 2.8 | % | $ | 1,762 | 4.3 | % | |||||||||
Australia | - | - | 210 | 9.4 | % | ||||||||||||
Canada | - | - | 421 | 4 | % | ||||||||||||
$ | 2,214 | $ | 2,393 | ||||||||||||||
Other Debt Facility: | |||||||||||||||||
Japan Term Loan | $ | 129 | 0.1 | % | $ | 171 | 0.1 | % | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Unused Availability: | |||||||||||||||||
United States | $ | 2,835 | $ | 4,248 | |||||||||||||
Australia | 1,119 | 1,035 | |||||||||||||||
Canada | 728 | 331 | |||||||||||||||
$ | 4,682 | $ | 5,614 | ||||||||||||||
(1) Based on average interest rate for the three months ended September 30, 2013. | |||||||||||||||||
(2) Based on average interest rate for the twelve months ended December 31, 2012. |
Note_5_Capital_Lease_Obligatio
Note 5 - Capital Lease Obligations | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Leases, Capital [Abstract] | ' | ||||||||||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | ' | ||||||||||||
5. Capital Lease Obligations | |||||||||||||
The Company has four outstanding capital lease obligations with interest rates ranging from 4.5% to 7.0%. The related capital lease assets balances are detailed below (in thousands): | |||||||||||||
Start Date: | Original Cost | Accumulated | Net Book Value at September 30, 2013 | ||||||||||
Amortization | |||||||||||||
November, 2010 | $ | 48 | $ | 47 | $ | 1 | |||||||
June, 2011 | 140 | 109 | 31 | ||||||||||
January, 2012 | 224 | 131 | 93 | ||||||||||
January, 2012 | 29 | 17 | 12 | ||||||||||
$ | 441 | $ | 304 | $ | 137 | ||||||||
Annual future minimum lease payments required under the leases, together with the present value as of September 30, 2013, are as follows (in thousands): | |||||||||||||
Year Ending | |||||||||||||
December 31, | Amount | ||||||||||||
2013 | $ | 38 | |||||||||||
2014 | 113 | ||||||||||||
$ | 151 | ||||||||||||
Less amount representing interest | 7 | ||||||||||||
Present value of net minimum lease payments included with other liabilities | $ | 144 | |||||||||||
Note_6_RelatedParty_Transactio
Note 6 - Related-Party Transactions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||||||||||
6. Related-Party Transactions | |||||||||||||||||
SGRP's policy respecting approval of transactions with related persons, promoters and control persons is contained in the SPAR Group Code of Ethical Conduct for its Directors, Senior Executives and Employees Amended and Restated (as of) August 1, 2012 (the "Ethics Code"). Article V of the Ethics Code generally prohibits each "Covered Person" (including SGRP's officers and directors) from engaging in any business activity that conflicts with his or her duties to the Company, and directs each "Covered Person" to avoid any activity or interest that is inconsistent with the best interests of the SPAR Group, in each case except for any "Approved Activity" (as such terms are defined in the Ethics Code). Examples of violations include (among other things) having any ownership interest in, acting as a director or officer of or otherwise personally benefiting from business with any competitor, customer or vendor of the Company other than pursuant to any Approved Activity. Approved Activities include (among other things) any contract with an affiliated person (each an "Approved Affiliate Contract") or anything else disclosed to and approved by SGRP's Board of Directors (the "Board"), its Governance Committee or its Audit Committee, as the case may be, as well as the ownership, board, executive and other positions in SBS, SAS, SIT, NMA, NRS and others (as defined and described below) held by certain directors, officers or employees of SGRP or their family members. The Company's senior management is generally responsible for monitoring compliance with the Ethics Code and establishing and maintaining compliance systems, including conflicting relationships and transactions, subject to the review and oversight of SGRP's Governance Committee as provided in clause IV.11 of the Governance Committee's Charter, and SGRP's Audit Committee as provided in clause I.2(l) of the Audit Committee's Charter. The Governance Committee and Audit Committee each consist solely of independent outside directors. | |||||||||||||||||
SGRP's Audit Committee has the specific duty and responsibility to review and approve the overall fairness of all material related-party transactions. The Audit Committee receives every affiliate contract and amendment thereto for its review and approval (to the extent approval is given), and each contract is periodically (often annually) again reviewed, in accordance with the Audit Charter, the Ethics Code, the rules of the Nasdaq Stock Market, Inc. ("Nasdaq"), and other applicable law to ensure that the overall economic and other terms will be (or continue to be) no less favorable to the Company than would be the case in an arms-length contract with an unrelated provider of similar services (i.e., its overall fairness). The Audit Committee periodically reviews all related party relationships and transactions described below, and as of this Quarterly Report the parties are in compliance with those agreements. | |||||||||||||||||
SPAR Business Services, Inc. ("SBS"), formerly known as SPAR Marketing Services, Inc. ("SMS"), SPAR Administrative Services, Inc. ("SAS"), formerly known as SPAR Management Services, Inc. ("SMSI") and SPAR InfoTech, Inc. ("SIT"), are affiliates of SGRP but are not part of the consolidated Company. Mr. Robert G. Brown, a Director, the Chairman and a major stockholder of SGRP, and Mr. William H. Bartels, a Director and the Vice Chairman of the Company and a major stockholder of SGRP, are the sole stockholders of SBS and SAS. Mr. Brown is the sole stockholder of SIT. Mr. Brown is a director and officer of SBS and SIT. Mr. Bartels is a director and officer of SAS. | |||||||||||||||||
SBS and SAS provided approximately 99% and 98% of the domestic merchandising specialist field force used by the Company (other than NMS, as defined below) for the nine months ended September 30, 2013 and 2012, respectively, and approximately 94% and 93% of the domestic field management used by the Company at a total cost of approximately $18.0 million and $18.2 million for the nine months ended September 30, 2013 and 2012, respectively. Pursuant to the terms of the Amended and Restated Field Service Agreement dated as of January 1, 2004, as amended, in 2013 the Company received merchandising services from SBS through the use of approximately 9,000 field merchandising specialists. SBS also furnished (without charge) 240 handheld computers used by field merchandising specialists in the performance of various merchandising and marketing services in the United States, which the Company estimates has an aggregate value of approximately $2,000 to $3,000 per month. Pursuant to the terms of the Amended and Restated Field Management Agreement dated as of January 1, 2004, in 2013 the Company received administrative services from SAS through the use of 60 full-time national, regional and district administrators. For those services, the Company has agreed to reimburse SBS and SAS for their total costs of providing those services and to pay SBS and SAS each a fee equal to 4% of their respective total costs (the "Plus 4% Compensation"). Those costs include all field expenses of SBS, all payroll and employment tax expenses of SAS and all legal and other administrative expenses paid by either of them as well as the lease expense of the handheld computers referred to above. The net total Plus 4% Compensation earned by SBS and SAS for services rendered was approximately $693,000 and $694,000 for the nine months ended September 30, 2013 and 2012, respectively. The Company also provides certain administrative services directly to SBS and SAS, without charge, for accounting (in 2012 only), human resource and legal services, which the Company believes is more efficient if paid directly, and would otherwise have been subject to cost plus reimbursement. The value of these services for the nine months ended September 30, 2013 and 2012 was approximately $455,000 and $438,000, respectively. The Company charged SBS and SAS $54,000 for accounting services for the nine months ended September 30, 2013. Those service agreements with SBS and SAS were scheduled to automatically renew on December 31, 2013, and are being renegotiated. In order to prevent such automatic renewal, the Company has given SBS and SAS the required notice of non-renewal under those agreements. | |||||||||||||||||
No salary reimbursements for Mr. Brown or Mr. Bartels are included in such reimbursable costs or Plus 4% Compensation. However, since SBS and SAS are "Subchapter S" corporations and are owned by Messrs. Brown and Bartels, all income from SBS and SAS is allocated to them. | |||||||||||||||||
National Merchandising Services, LLC ("NMS"), is a consolidated domestic subsidiary of the Company and is owned jointly by SGRP through its indirect ownership of 51% of the NMS membership interests and by National Merchandising of America, Inc. ("NMA"), through its ownership of the other 49% of the NMS membership interests. (See Note 11 to the Consolidated Financial Statements - Purchases and Sale of Interests in Subsidiaries). Mr. Edward Burdekin is the Chief Executive Officer and President and a director of NMS and also is an executive officer and director of NMA and the sole member and manager of National Retail Source, LLC ("NRS"). Ms. Andrea Burdekin, Mr. Burdekin's wife, is the sole stockholder and a director of NMA and a director of NMS. NRS and NMA are affiliates of the Company but are not consolidated with the Company. | |||||||||||||||||
NRS is expected to provide substantially all of the domestic merchandising specialist field force used by NMS. Pursuant to the terms of the Master Field Services Agreement dated as of August 1, 2013, as amended (the "NRS Services Agreement"), NMS will receive merchandising services from NRS through the use of approximately 1,100 field merchandising specialists. Prior to that date, NMS received such merchandising services from NMA pursuant to the terms of the substantially similar Field Services Agreement dated as of July 31, 2012, as amended (the "NMA Services Agreement"). For those services, the Company has agreed to reimburse NRS (and NMA before it) for its total costs of providing those services and to pay NRS (and NMA before it) a fee equal to 2% of its total costs (the "Plus 2% Compensation"). Those costs include all field and insurance expenses of NRS (and NMA before it) but exclude certain legal and other administrative expenses. Accordingly, no salary reimbursement for Mr. Burdekin or Ms. Burdekin are included in such reimbursable costs or Plus 2% Compensation. | |||||||||||||||||
NMS commenced operations as of September 1, 2012. NRS (and NMA before it) provided all of the domestic merchandising specialist field force used by NMS for the nine months ended September 30, 2013. The total Plus 2% Compensation earned by NRS and NMA for services rendered was approximately $30,000 for the nine months ended September 30, 2013 (of which $6,000 was earned by NRS during August and September of 2013 and $24,000 was earned by NMA during January through July of 2013). | |||||||||||||||||
In connection with the approval of those related party agreements with NMA in 2012, the Board approved, based (in part) on the recommendation and approval of its Governance Committee (which is comprised solely of independent directors), the restated Ethics Code. As a result, the newly approved NRS Field Services Agreement is, and the NMA Field Services Agreement and other previously approved affiliate contracts continue to be, exempted from various conflict prohibitions in the Ethics Code. | |||||||||||||||||
The Company continues to purchase services from SBS, SAS and NRS because it believes the value of services it receives from them are at least as favorable to the Company as it could obtain from non-affiliated providers of similar services. The Company believes it is the largest and most important customer of SBS, SAS and NRS (and from time to time may be their only customer), and accordingly the Company is able to negotiate better terms, receives more personal and responsive service and is more likely to receive credits and other financial accommodations from SBS, SAS and NRS than the Company could reasonably expect to receive from an unrelated service provider who has significant other customers and business. The Company periodically evaluates these fees and rates charged by comparable national labor sourcing firms to serve as a comparison to the rates charged by SBS, SAS and NRS. Based on an analysis performed by management, the Company believes that its cost of revenue would have increased by at least $550,000 and $560,000 for the nine months ended September 30, 2013 and 2012, respectively, if the Company would have instead used an unaffiliated entity to provide comparable services. All affiliate contracts are reviewed and approved by SGRP's Audit Committee, as described above. | |||||||||||||||||
The following transactions occurred between the Company and the above affiliates (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Services provided by affiliates: | |||||||||||||||||
Field merchandiser services (SBS) | $ | 5,417 | $ | 5,044 | $ | 14,304 | $ | 14,803 | |||||||||
Field management services (SAS) | 1,266 | 1,125 | 3,706 | 3,395 | |||||||||||||
Field merchandiser services (NRS and NMA) | 447 | 396 | 1,553 | 396 | |||||||||||||
Total services provided by affiliates | $ | 7,130 | $ | 6,565 | $ | 19,563 | $ | 18,594 | |||||||||
Accrued expenses due to affiliates : | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Total accrued expenses due to affiliates | $ | 2,159 | $ | 705 | |||||||||||||
In July 1999, SPAR Marketing Force, Inc. (“SMF”), SBS and SIT entered into a perpetual software ownership agreement providing that each party independently owned an undivided share of and had the right to unilaterally license and exploit their "Business Manager" Internet job scheduling software (which had been jointly developed by such parties), and all related improvements, revisions, developments and documentation from time to time voluntarily made or procured by any of them at its own expense. In addition, SPAR Trademarks, Inc. ("STM"), SBS and SIT entered into separate perpetual trademark licensing agreements whereby STM has granted non-exclusive royalty-free licenses to SIT and SBS (and through them to their commonly controlled subsidiaries and affiliates by sublicenses, including SAS) for their continued use of the name "SPAR" and certain other trademarks and related rights of STM, a wholly owned subsidiary of SGRP. SBS and SAS provide services to the Company, as described above, and SIT no longer provides services to and does not compete with the Company. | |||||||||||||||||
Effective August 31, 2013, the Company sold its equity interests and working capital investment in its Romanian subsidiary, SPAR Business Ideas Provider S.R.L. ("BIP"), to a Company affiliate, SPAR InfoTech, Inc. ("SIT"), for a total purchase price of $348,465. The Company received, at closing, $187,767 in cash and the balance is payable over 30 months with interest at 6% per annum. The purchase price was equal to the book value of the Company's interests in BIP, which management believes approximates fair value. The sale to SIT was approved by the Company's Audit Committee and Board of Directors. | |||||||||||||||||
Through arrangements with the Company, SBS, SAS and other companies owned by Mr. Brown or Mr. Bartels participate in various benefit plans, insurance policies and similar group purchases by the Company, for which the Company charges them their allocable shares of the costs of those group items and the actual costs of all items paid specifically for them. All such transactions between the Company and the above affiliates are paid and/or collected by the Company in the normal course of business. As an accommodation, the Company also provides certain accounting, human resource and similar administrative services to SIT and certain other affiliates of Robert G. Brown and William H. Bartels, at a nominal cost. | |||||||||||||||||
In addition to the above, SAS purchases insurance coverage for worker compensation, casualty and property insurance risk for itself, SBS and (through SBS under contracts with them) it's field merchandising specialists, and the Company from Affinity Insurance, Ltd. ("Affinity"). SAS owns minority (less than 1%) equity interest in Affinity, and Robert G. Brown is a director of Affinity. The Affinity insurance premiums for such coverage are ultimately charged to SAS, SBS (and through SBS to its covered field merchandising specialists) and the Company based on the contractual arrangements of the parties. | |||||||||||||||||
In the event of any material dispute in the business relationships between the Company and SBS, SAS, SIT or NRS, it is possible that Mr. Brown, Mr. Bartels or Mr. Burdekin may have one or more conflicts of interest with respect to these relationships and such dispute could have a material adverse effect on the Company. |
Note_7_Preferred_Stock
Note 7 - Preferred Stock | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Preferred Stock [Text Block] | ' |
7. Preferred Stock | |
SGRP's certificate of incorporation authorizes it to issue 3,000,000 shares of preferred stock with a par value of $0.01 per share (the "SGRP Preferred Stock"), which may have such preferences and priorities over the SGRP Common Stock and other rights, powers and privileges as the Company's Board of Directors may establish in its discretion from time to time. The Company has created and authorized the issuance of a maximum of 3,000,000 shares of Series A Preferred Stock pursuant to SGRP's Certificate of Designation of Series "A" Preferred Stock (the "SGRP Series A Preferred Stock"), which have dividend and liquidation preferences, have a cumulative dividend of 10% per year, are redeemable at the Company's option and are convertible at the holder's option (and without further consideration) on a one-to-one basis into SGRP Common Stock. As of September 30, 2013, there are no shares of SGRP Series A Preferred Stock outstanding, and there are 2,445,598 shares of SGRP Series A Preferred Stock authorized and available for issuance under SGRP's certificate of incorporation and Certificate of Designation of Series "A" Preferred Stock. The number of shares authorized and available by such designation could, however, be reduced by amendment or redemption to facilitate the creation of other SGRP Preferred Series. |
Note_8_StockBased_Compensation
Note 8 - Stock-Based Compensation and Other Plans | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' |
8. Stock-Based Compensation and Other Plans | |
SGRP currently grants options to its eligible directors, officers and employees and certain consultants (who are employees of its affiliates) to purchase shares of Common Stock issued by SGRP ("SGRP Shares") pursuant to the 2008 Stock Compensation Plan, as amended (the "2008 Plan"). SGRP also has granted stock options that continue to be outstanding under the 2000 Stock Option Plan ("2000 Plan"). The 2000 Plan will continue to govern any remaining outstanding options issued under it for so long as such options are outstanding. As described below, SGRP also has the authority to issue other types of stock-based awards under the 2008 Plan, but to date has only issued restricted stock in addition to such options. | |
The 2008 Plan increased the number of SGRP Shares that may be covered by awards under all plans to 5.6 million SGRP Shares in the aggregate plus the aggregate number of option shares surrendered (other than in exercise) or expired after May 29, 2008. The stock options issued under the 2008 Plan are typically "nonqualified" (as a tax matter), have a ten (10) year maximum life (term) and vest during the first four years following issuance at the rate of 25% on each anniversary date of their issuance. Stock options are granted at the market price on the grant date, and the Company recognizes compensation expense equal to the fair value of the award, calculated as of the grant date and recognized over the requisite service period (which generally is the vesting period). Fair value is calculated using the Black-Scholes option pricing model. | |
Based upon the Black-Scholes calculation, share-based compensation expense related to employee and director stock option grants totaled $394,000 and $348,000 for the nine months ended September 30, 2013 and 2012, respectively. The unamortized expense as of September 30, 2013, was approximately $1.4 million for outstanding stock option grants. | |
On August 6, 2013, 428,000 new stock option grants were issued to employees at an exercise price of $2.14, which represents the fair market value of a share of the Company’s common stock on August 6, 2013, as determined in accordance with the Company’s 2008 Plan. The estimated stock compensation expense is $915,980, which will be recognized ratably over the four year vesting period. The fair value of each option was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: dividend yield of 0%; volatility factor of expected market price of common stock of 157%; risk free interest rate of 1.71%; and expected lives of 6 years. | |
On January 3, 2013 and May 7, 2013, 10,000 and 30,000 new stock option grants were issued to directors at an exercise price of $1.70 and $2.04, respectively which represents the fair market value of a share of the Company’s common stock on January 3, 2013 and May 7, 2013, respectively, as determined in accordance with the Company’s 2008 Plan. The estimated stock compensation expense is $17,000 and $61,200, respectively, which will be recognized ratably over the one year vesting period. The fair value of each option is estimated based on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: dividend yield of 0%; volatility factor of expected market price of common stock of 157%; risk free interest rate of 1.71%; and expected lives of 6 years. | |
Additionally, during the nine months ended September 30, 2013, new stock option grants covering 28,000 SGRP Shares were awarded to eight new employees of the Company and SAS at an exercise price of $1.69 per share which represents the fair market value of a share of the Company’s common stock on the date of issue, as determined in accordance with the Company’s 2008 Plan. The estimated stock compensation expense is $47,320, which will be recognized ratably over the four year vesting period. The fair value of each option was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: dividend yield of 0%; volatility factor of expected market price of common stock of 157%; risk free interest rate of 1.71%; and expected lives of 6 years. | |
Pursuant to the 2008 Plan, SGRP's Compensation Committee authorized a restricted SGRP common stock award of 100,000 shares on March 10, 2011 (the "2011 RS Award"), and 25,000 shares on August 1, 2012 (the "2012 RS Award"), as additional compensation to Mr. Raymond, the Company's Chief Executive Officer and President. The restricted shares vest in five equal parts on each of the five anniversaries following the award date (20,000 shares a year in the case of the 2011 RS Award, which started to vest on March 10, 2012, and 5,000 shares a year in the case of the 2012 RS Award, which starts to vest on August 1, 2013), so long as Mr. Raymond continues to be so employed by the Company on the applicable vesting date. If Mr. Raymond leaves such employment, he will lose his right to receive any unvested shares. The compensation expense related to each such award will be amortized by the Company over the five (5) year vesting periods, starting on the issuance date of each award (March 10, 2011, and August 1, 2012, respectively). The Company recorded compensation expenses for the nine months ended September 30, 2013, of $36,613 for the 2011 RS Award and $4,266 for the 2012 RS Award. The unamortized expense as of September 30, 2013 was $117,870 for the 2011 RS Award and $21,023 for the 2012 RS Award. |
Note_9_Customer_Deposits
Note 9 - Customer Deposits | 9 Months Ended |
Sep. 30, 2013 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ' |
Other Liabilities Disclosure [Text Block] | ' |
9. Customer Deposits | |
Customer deposits at September 30, 2013, were $627,000 ($335,000 from domestic operations and $292,000 from international operations) compared to $263,000 at December 31, 2012 ($176,000 from domestic operations and $87,000 from international operations). |
Note_10_Commitments_and_Contin
Note 10 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
10. Commitments and Contingencies | |
Legal Matters | |
The Company is a party to various legal actions and administrative proceedings arising in the normal course of business. In addition, the Company is involved in various other legal actions and administrative proceedings through its contractual obligation to pay SBS's costs (as part of the total costs of SBS borne by the Company - see Note 6 to Consolidated Financial Statements - Related Party Transactions). In the opinion of the Company's management, disposition of these matters are not anticipated to have a material adverse effect on the Company or its estimated or desired assets, business, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, prospects, sales, strategies, taxation or other achievement, results or condition. |
Note_11_Purchase_of_Interests_
Note 11 - Purchase of Interests in Subsidiaries | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||
11. Purchases and Sale of Interests in Subsidiaries | |||||||||
The following contains descriptions of the Company's purchases and sale of interests in its operating subsidiaries during the nine month period ended September 30, 2013. In each of the subsidiaries noted below, the Company, through its various agreements with the applicable Local Investor, has provided for appropriate exit strategies that are fair and equitable for each partner. | |||||||||
BIP (Romania) | |||||||||
Effective August 31, 2013, the Company sold its interests in its Romanian joint venture, SPAR Business Ideas Provider S.R.L. ("BIP"), to the Company's affiliate, SIT. See Note 6 to the Consolidated Financial Statements – Related-Party Transactions. | |||||||||
NMS (USA) | |||||||||
In September 2012, the Company made a domestic acquisition that also used its international strategy of seeking a minority (i.e., non-controlling) non-affiliated Local Investor for the Company's new consolidated subsidiary in Georgia, U.S.A. As with most of its international counterparts, the Company acquired a 51% interest in National Merchandising Services, LLC, a newly formed Nevada limited liability company ("NMS"), and is providing its usual Global Contributions, and since then NMS has been a part of the Company's consolidated financial reports. NMS provides merchandising services in the U.S.A. to multiple Fortune 500 companies previously supplied by its Local Investor. The Local Investor in this case is National Merchandising of America, Inc., a Georgia corporation ("NMA"), which owns a 49% interest in NMS and will provided field merchandising services to NMS pursuant to a Field Services Agreement with NMS through July 31, 2013. In addition, NMA contributed substantially all of its customers to NMS and is providing the usual Local Contributions. | |||||||||
The Company's initial investment in NMS was $859,050, which consists of the following (1) $510 in capital, (2) a cash payment of $400,000 to NMA at closing and a $200,000 non-interest bearing promissory note paid to NMA on January 2, 2013, (3) issuance of SPAR common stock worth $165,000 to NMA, and (4) a contingent liability of $93,540 described below. | |||||||||
NMS agreed to pay an incentive consulting fee ("Consulting Fee") to NMA based on NMS achieving certain earnings goals in each of the next three 12 month periods. The Consulting Fee is calculated based on 50% of NMS earnings in excess of the annual base earnings of $500,000. The maximum consideration for the Consulting Fee could be as much as $600,000. The projected consulting fee is approximately $93,540 and has been recorded as a contingent liability at December 31, 2012 and September 30, 2013. The Company has completed its valuation of the fair value and related allocation between identifiable intangibles and goodwill, and recorded the following in 2012. The intangible asset is being amortized over ten years. The amortization expense was $39,474 for the nine months ended September 30, 2013. | |||||||||
Intangible asset | $ | 526,320 | |||||||
Goodwill | 332,730 | ||||||||
$ | 859,050 | ||||||||
CMR-Meridian (South Africa) | |||||||||
In September 2012, the Company's existing local consolidated subsidiary, SGRP Meridian (Pty) Ltd. ("SGRP Meridian"), acquired a majority (51%) of the equity interests in CMR Meridian (Pty) Ltd. ("CMR-Meridian"). Combined Manufacturers National (Pty) Ltd ("CMR") acquired the remaining minority (49%) non-controlling interest in CMR-Meridian as its Local Investor, contributed substantially all of its customers to CMR-Meridian and provided the usual Local Contributions while the Company is providing its usual Global Contributions. SGRP Meridian and CMR-Meridian are both part of the Company's consolidated financial reports. | |||||||||
CMR-Meridian initiated operations on October 1, 2012 and the Company provided approximately $380,000 in a working capital loan to SGRP Meridian to assist SGRP Meridian in this new joint venture. SGRP Meridian, through the joint venture agreement with CMR, paid approximately $73,000 at closing and recorded a contingent liability in the amount of $154,000 representing the fair value of potential future payments required to be made by SGRP Meridian to CMR provided certain financial conditions are achieved by CMR-Meridian in 2013 and 2014. The required payments based on an exchange rate of Rand to US Dollars at September 30, 2013, are as follows: (a) $69,000 if CMR-Meridian achieves $228,000 of earnings before interest and taxes for the twelve month period ending December 31, 2013; and (b) $92,000 if CMR-Meridian achieves $228,000 of earnings before interest and taxes for the twelve month period ending December 31, 2014. If during these two periods the earnings before interest and taxes is lower than $228,000 the payment in each year will be reduced proportionately. | |||||||||
In addition to the above payments, CMR-Meridian may be required to pay CMR an Incentive Consulting Fee provided CMR-Meridian meets the following financial criteria. Should CMR-Meridian's earnings before interest and taxes exceed $228,000 in each of the following twelve month periods ending December 31, CMR-Meridian will pay to CMR: | |||||||||
For 2013, the payment will be 50% of the excess earnings up to a maximum of $159,000, | |||||||||
For 2014, the payment will be 25% of the excess earnings up to a maximum of $93,000, and | |||||||||
For 2015, the payment will be 10% of the excess earnings up to a maximum of $44,000. | |||||||||
At the end of the first three full years of operations, an additional bonus of $57,000 will be paid by CMR-Meridian to CMR if the combined cumulative earnings before interest and taxes exceed $684,000 provided that in each year, a minimum $228,000 in earnings is achieved. Based on current projections, the Company does not believe at this time that CMR-Meridian will meet the criteria to earn the Incentive Consulting Fee; therefore no contingent liability has been recorded as of December 31, 2012 or September 30, 2013. However, the Company will continue to evaluate the potential for the Incentive Consulting Fee throughout 2013. | |||||||||
Preceptor (India) | |||||||||
In March 2013, the Company purchased a majority (51%) of the equity interests in Preceptor Marketing Services Private Limited ("Preceptor"), a recently formed Indian corporation, from Krognos Integrated Marketing Services Private Limited ("Krognos"), and Preceptor became a new consolidated subsidiary of the Company. The Company also is providing the usual Global Contributions to Preceptor, while Krognos as the Local Investor retained the remaining minority (49%) non-controlling interest in Preceptor and is providing the usual Local Contributions. Krognos also is the Local Investor in the Company's existing subsidiary in India, SPAR Krognos Marketing Private Limited. Preceptor will enable the Company to service clients not serviced by its existing Indian subsidiary. The Company paid $21,000 for its interest in Preceptor, and Preceptor became a consolidated subsidiary of the Company on March 1, 2013. | |||||||||
Certain MFI Business (USA) | |||||||||
In March 2013, the Company also purchased general merchandising service and certain in-store audit service businesses from Market Force Information, Inc. ("MFI"), a leading customer intelligence solution provider. The acquired in-store audit services include the price, point of sale, out of stock, intercept and planogram audits managed by MFI's New York office. With this acquisition, the Company entered the growing in-store audit service business and expanded its existing general merchandising service and client base domestically. | |||||||||
The purchase was made pursuant to the Asset Purchase Agreement dated as of March 15, 2013 (the "Purchase Agreement") between MFI, as the seller, and SPAR Marketing Force, Inc. ("SMF"), a consolidated subsidiary of SGRP and its principal domestic operating company. The purchase was completed on March 15, 2013. The Purchase Price under the Purchase Agreement consisted of a cash purchase price of $1,300,000 and the assumption of certain specified liabilities (principally those arising after the closing under the assumed contracts). The Company plans to complete its purchase price valuation analysis during 2013 and record the appropriate intangible assets and or goodwill based on its analysis. Currently, the Company has recorded $1,300,000 as an intangible asset and is amortizing it on a straight line basis for five years. In addition, SMF entered into a Consulting Services Agreement and a Transition Services Agreement with MFI, under which MFI will provide certain services, equipment and facilities for up to one year, and various assignments and other transfer documents. | |||||||||
The following table includes the amount of MFI's revenue and earnings included in the Company's consolidated income statement for the three and nine months ended September 30, 2013 and a pro forma calculation of the amounts of MFI's revenue and earnings that would have been included in the Company's consolidated income statement for the three and nine months ended September 30, 2013 and 2012 had the MFI acquisition date been January 1, 2013 and 2012, instead of March 15, 2013 (in thousands): | |||||||||
Revenue | Net | ||||||||
Income | |||||||||
(Loss) | |||||||||
Actual MFI from July 1 to September 30, 2013 | $ | 1,766 | $ | (150 | ) | ||||
2013 consolidated supplemental pro forma from July 1 to September 30, 2013 | $ | 27,753 | $ | 331 | |||||
2012 consolidated supplemental pro forma from July 1 to September 30, 2012 | $ | 28,179 | $ | 216 | |||||
Actual MFI from March 15 to September 30, 2013 | $ | 4,485 | $ | 339 | |||||
2013 consolidated supplemental pro forma from January 1 to September 30, 2013 | $ | 82,316 | $ | (106 | ) | ||||
2012 consolidated supplemental pro forma from January 1 to September 30, 2012 | $ | 77,252 | $ | 736 | |||||
Note_12_Geographic_Data
Note 12 - Geographic Data | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||||||
12. Geographic Data | |||||||||||||||||||||||||||||||||
The Company operates in the same single reportable business segment (e.g., merchandising and marketing services) in both its Domestic Merchandising Services Division and its International Merchandising Services Division. The Company uses those divisions to improve its administration and operational and strategic focuses, and it tracks and reports certain financial information separately for each of those divisions. The Company measures the performance of its domestic and international divisions and subsidiaries using the same metrics. The primary measurement utilized by management is operating profits, historically the key indicator of long-term growth and profitability, as the Company is focused on reinvesting the operating profits of each of its international subsidiaries back into its local markets in an effort to improve market share and continued expansion efforts. Set forth below are summaries of the Company's net revenues from its United States subsidiaries (i.e., the Domestic Merchandising Services Division) and from its international (non-U.S.) subsidiaries (i.e., the International Merchandising Services Division), net revenue from certain international subsidiaries as a percent of consolidated net revenue, operating income and long lived assets by geographic area for 2013 and 2012, respectively (in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||||||
United States | $ | 11,327 | $ | 11,016 | $ | 32,390 | $ | 31,182 | |||||||||||||||||||||||||
International | 16,426 | 14,341 | 47,762 | 37,802 | |||||||||||||||||||||||||||||
Total net revenues | $ | 27,753 | $ | 25,357 | $ | 80,152 | $ | 68,984 | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net revenues international: | % of | % of | % of | % of | |||||||||||||||||||||||||||||
consolidated | consolidated | consolidated | consolidated | ||||||||||||||||||||||||||||||
net revenue | net revenue | net revenue | net revenue | ||||||||||||||||||||||||||||||
Mexico | $ | 4,002 | 14.40% | $ | 4,095 | 16.10% | $ | 11,277 | 14.10% | $ | 10,432 | 15.10% | |||||||||||||||||||||
South Africa | 3,873 | 14 | 1,823 | 7.2 | 11,809 | 14.7 | 5,590 | 8.1 | |||||||||||||||||||||||||
Japan | 2,079 | 7.5 | 1,733 | 6.8 | 4,680 | 5.8 | 4,602 | 6.7 | |||||||||||||||||||||||||
China | 1,911 | 6.9 | 1,458 | 5.7 | 4,956 | 6.2 | 2,999 | 4.3 | |||||||||||||||||||||||||
Canada | 1,545 | 5.6 | 1,660 | 6.5 | 4,389 | 5.5 | 4,864 | 7.1 | |||||||||||||||||||||||||
Australia | 1,283 | 4.6 | 2,208 | 8.7 | 5,046 | 6.3 | 5,056 | 7.3 | |||||||||||||||||||||||||
India | 1,203 | 4.3 | 467 | 1.8 | 3,318 | 4.1 | 1,404 | 2 | |||||||||||||||||||||||||
All others | 530 | 1.9 | 897 | 3.5 | 2,287 | 2.9 | 2,855 | 4.1 | |||||||||||||||||||||||||
Total international revenues | $ | 16,426 | 59.20% | $ | 14,341 | 56.30% | $ | 47,762 | 59.60% | $ | 37,802 | 54.70% | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Operating income: | |||||||||||||||||||||||||||||||||
United States | $ | 99 | $ | 729 | $ | 383 | $ | 2,049 | |||||||||||||||||||||||||
International | 291 | 177 | 520 | 3 | |||||||||||||||||||||||||||||
Total operating income | $ | 390 | $ | 906 | $ | 903 | $ | 2,052 | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Long lived assets: | |||||||||||||||||||||||||||||||||
United States | $ | 4,434 | $ | 3,145 | |||||||||||||||||||||||||||||
International | 2,458 | 2,129 | |||||||||||||||||||||||||||||||
Total long lived assets | $ | 6,892 | $ | 5,274 | |||||||||||||||||||||||||||||
Note_13_Supplemental_Balance_S
Note 13 - Supplemental Balance Sheet Information (in thousands) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Supplemental Balance Sheet Disclosures [Text Block] | ' | ||||||||
13. Supplemental Balance Sheet Information (in thousands) | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accounts receivable, net, consists of the following: | |||||||||
Trade | $ | 13,407 | $ | 18,011 | |||||
Unbilled | 5,354 | 3,577 | |||||||
Non-trade | 367 | 42 | |||||||
19,128 | 21,630 | ||||||||
Less allowance for doubtful accounts | 91 | 216 | |||||||
Accounts receivable, net | $ | 19,037 | $ | 21,414 | |||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property and equipment, net, consists of the following: | |||||||||
Equipment | $ | 8,513 | $ | 8,366 | |||||
Furniture and fixtures | 595 | 570 | |||||||
Leasehold improvements | 250 | 250 | |||||||
Capitalized software development costs | 5,753 | 5,044 | |||||||
15,111 | 14,230 | ||||||||
Less accumulated depreciation and amortization | 13,072 | 12,453 | |||||||
Property and equipment, net | $ | 2,039 | $ | 1,777 | |||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Intangible assets consist of the following: | |||||||||
Customer contracts and lists | $ | 3,069 | $ | 1,804 | |||||
Less accumulated amortization | 659 | 336 | |||||||
$ | 2,410 | $ | 1,468 | ||||||
The Company is amortizing the customer contracts of $3.1 million on a straight line basis between 3 and 10 years. Amortization expense for the nine months ended September 30, 2013 and 2012 was approximately $323,000 and $113,000, respectively. The unamortized expense for each of the following years is as follows: | |||||||||
Year | Amount | ||||||||
2013 | $ | 454 | |||||||
2014 | 525 | ||||||||
2015 | 462 | ||||||||
2016 | 382 | ||||||||
2017 | 382 | ||||||||
Thereafter | 205 | ||||||||
Total | $ | 2,410 | |||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
Accrued salaries payable | $ | 625 | $ | 799 | |||||
Taxes payable | 878 | 1,460 | |||||||
Loans from domestic and international partners | 1,167 | 1,559 | |||||||
Accrued accounting and legal expense | 358 | 358 | |||||||
Final payment for purchase of NMS, LLC | - | 200 | |||||||
Contingent liabilities, incentive for consulting fees | 689 | 689 | |||||||
Short term portion of capital lease obligations | 115 | 178 | |||||||
Other | 1,587 | 1,486 | |||||||
Accrued expenses and other current liabilities | $ | 5,419 | $ | 6,729 | |||||
Note_14_Foreign_Currency_Rate_
Note 14 - Foreign Currency Rate Fluctuations | 9 Months Ended |
Sep. 30, 2013 | |
Foreign Currency [Abstract] | ' |
Foreign Currency Disclosure [Text Block] | ' |
14. Foreign Currency Rate Fluctuations | |
The financial statements of the foreign entities consolidated into SPAR Group, Inc. consolidated financial statements were translated into United States dollar equivalents at exchange rates as follows: balance sheet accounts for assets and liabilities were converted at quarter-end rates, equity at historical rates and income statement accounts at average exchange rates for the quarter. The resulting translation gains and losses are reflected in accumulated other comprehensive gain or loss in the statements of stockholders' equity. Foreign currency transaction gains and losses are reflected in net earnings. The Company has foreign currency exposure with its international subsidiaries. In both 2013 and 2012, these exposures are primarily concentrated in the South African Rand, India Rupee and Canadian Dollar. Total international assets were $12.8 million and total liabilities were $10.1 million based on exchange rates at September 30, 2013. International revenues for the nine months ended September 30, 2013 and 2012 were $47.8 million and $37.8 million, respectively. The international division reported net income of approximately $8,000 and a net loss of $205,000 for the nine months ended September 30, 2013 and 2012, respectively. |
Note_15_Discontinued_Operation
Note 15 - Discontinued Operations | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||||||||||||
15. Discontinued Operations | |||||||||||||||||
Effective August 31, 2013, the Company sold its equity interests and working capital investment in its Romanian subsidiary, SPAR Business Ideas Provider S.R.L. ("BIP"), to a Company affiliate, SPAR InfoTech, Inc. ("SIT"), for a total purchase price of $348,465, The Company received, at closing, $187,767 in cash and the balance is payable over 30 months with interest at 6% per annum. The purchase price was equal to the book value of the Company's interests in BIP, which management believes approximates fair value. The sale to SIT was approved by the Company's Audit Committee and Board of Directors. | |||||||||||||||||
As a results of the sale, the Romanian operations were reported in the consolidated financial statements of the Company as a discontinued operation. The consolidated statements of cash flows do not separately report the cash flows of the discontinued operations. | |||||||||||||||||
The components of the earnings from discontinued operations are presented below (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net revenues | $ | 952 | $ | 1,066 | $ | 3,426 | $ | 2,828 | |||||||||
Cost of revenues | 733 | 858 | 2,736 | 2,258 | |||||||||||||
Gross profit | 219 | 208 | 690 | 570 | |||||||||||||
Selling, general and administrative expenses | 208 | 177 | 562 | 426 | |||||||||||||
Depreciation and amortization | – | 1 | 1 | 9 | |||||||||||||
Operating income | 11 | 30 | 127 | 135 | |||||||||||||
Other (income) expense | (6 | ) | 12 | 29 | 40 | ||||||||||||
Income from operations | $ | 17 | $ | 18 | $ | 98 | $ | 95 | |||||||||
Note_16_Taxes
Note 16 - Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
16. Taxes | |
In July 2006, the FASB issued an interpretation, Accounting for Uncertainty in Income Taxes, now codified as ASC Topic 740, which detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise's financial statements. Tax positions must meet a more-likely-than-not recognition threshold and requires that interest and penalties that the tax law requires to be paid on the underpayment of taxes should be accrued on the difference between the amount claimed or expected to be claimed on the return and the tax benefit recognized in the financial statements. The Company's policy is to record this interest and penalties as additional tax expense. The Company's tax reserves at September 30, 2013, and December 31, 2012, totaled $123,000 and $93,000, respectively, for potential domestic state tax and federal tax liabilities. | |
SGRP and its subsidiaries file numerous consolidated, combined and separate company income tax returns in the U.S. Federal jurisdiction and in many U.S. state and foreign jurisdictions. With few exceptions, SGRP and its domestic subsidiaries are subject to U.S. Federal, state and local income tax examinations for the years 2009 through the present. However, tax authorities have the ability to review years prior to the position taken by the Company to the extent that SPAR Group utilized tax attributes carried forward from those prior years. |
Note_17_Subsequent_Events
Note 17 - Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
17. Subsequent Events | |
As of October 30, 2013, SGRP and certain of its domestic subsidiaries (as borrowers) entered into the Fifth Agreement of Amendment to Revolving Loan and Security Agreement And Other Documents (the "Fifth Amendment") with Sterling National Bank ("Sterling") as Agent and Lender, a copy of which is attached to this Quarterly Report as Exhibit 10.1. The Fifth Amendment adds SPAR Canada, Inc., SPAR Canada Company ("SCC"), and SPAR Wings & Ink Company ("SWI") as borrowers under the Sterling Credit Facility. See Note 4 to the Consolidated Financial Statements - Credit Facilities: Sterling Credit Facility, above. As a result, the receivables of the Company's Canadian subsidiaries, SCC and SWI, are now included in the Company's borrowing base and pledged to Sterling and advances are available to those Canadian borrowers under the Sterling Credit Facility. SCC has retired its existing credit facility with the Royal Bank of Canada and replaced it by becoming a borrower under the Sterling Credit Facility. |
Note_3_Earnings_Per_Share_Tabl
Note 3 - Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Income from continuing operations attributable to SPAR Group, Inc. | $ | 322 | $ | 569 | $ | 194 | $ | 1,554 | |||||||||
Denominator: | |||||||||||||||||
Shares used in basic net income per share calculation | 20,503 | 20,275 | 20,483 | 20,175 | |||||||||||||
Effect of diluted securities: | |||||||||||||||||
Employee stock options | 1,278 | 1,712 | 1,225 | 1,507 | |||||||||||||
Shares used in diluted net income per common share calculation | 21,781 | 21,987 | 21,708 | 21,682 | |||||||||||||
Basic net income per common share | $ | 0.02 | $ | 0.03 | $ | 0.01 | $ | 0.08 | |||||||||
Diluted net income per common share | $ | 0.02 | $ | 0.03 | $ | 0.01 | $ | 0.07 |
Note_4_Credit_Facilities_Table
Note 4 - Credit Facilities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||||||||||
30-Sep-13 | Average | 31-Dec-12 | Average | ||||||||||||||
Interest Rate(1) | Interest Rate(2) | ||||||||||||||||
Credit Facilities Loan Balance: | |||||||||||||||||
United States | $ | 2,214 | 2.8 | % | $ | 1,762 | 4.3 | % | |||||||||
Australia | - | - | 210 | 9.4 | % | ||||||||||||
Canada | - | - | 421 | 4 | % | ||||||||||||
$ | 2,214 | $ | 2,393 | ||||||||||||||
Other Debt Facility: | |||||||||||||||||
Japan Term Loan | $ | 129 | 0.1 | % | $ | 171 | 0.1 | % | |||||||||
' | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Unused Availability: | |||||||||||||||||
United States | $ | 2,835 | $ | 4,248 | |||||||||||||
Australia | 1,119 | 1,035 | |||||||||||||||
Canada | 728 | 331 | |||||||||||||||
$ | 4,682 | $ | 5,614 |
Note_5_Capital_Lease_Obligatio1
Note 5 - Capital Lease Obligations (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Leases, Capital [Abstract] | ' | ||||||||||||
Schedule of Capital Leased Assets [Table Text Block] | ' | ||||||||||||
Start Date: | Original Cost | Accumulated | Net Book Value at September 30, 2013 | ||||||||||
Amortization | |||||||||||||
November, 2010 | $ | 48 | $ | 47 | $ | 1 | |||||||
June, 2011 | 140 | 109 | 31 | ||||||||||
January, 2012 | 224 | 131 | 93 | ||||||||||
January, 2012 | 29 | 17 | 12 | ||||||||||
$ | 441 | $ | 304 | $ | 137 | ||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | ||||||||||||
Year Ending | |||||||||||||
December 31, | Amount | ||||||||||||
2013 | $ | 38 | |||||||||||
2014 | 113 | ||||||||||||
$ | 151 | ||||||||||||
Less amount representing interest | 7 | ||||||||||||
Present value of net minimum lease payments included with other liabilities | $ | 144 |
Note_11_Purchase_of_Interests_1
Note 11 - Purchase of Interests in Subsidiaries (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Note 11 - Purchase of Interests in Subsidiaries (Tables) [Line Items] | ' | ||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||
Intangible asset | $ | 526,320 | |||||||
Goodwill | 332,730 | ||||||||
$ | 859,050 | ||||||||
MFI Business [Member] | ' | ||||||||
Note 11 - Purchase of Interests in Subsidiaries (Tables) [Line Items] | ' | ||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||
Revenue | Net | ||||||||
Income | |||||||||
(Loss) | |||||||||
Actual MFI from July 1 to September 30, 2013 | $ | 1,766 | $ | (150 | ) | ||||
2013 consolidated supplemental pro forma from July 1 to September 30, 2013 | $ | 27,753 | $ | 331 | |||||
2012 consolidated supplemental pro forma from July 1 to September 30, 2012 | $ | 28,179 | $ | 216 | |||||
Actual MFI from March 15 to September 30, 2013 | $ | 4,485 | $ | 339 | |||||
2013 consolidated supplemental pro forma from January 1 to September 30, 2013 | $ | 82,316 | $ | (106 | ) | ||||
2012 consolidated supplemental pro forma from January 1 to September 30, 2012 | $ | 77,252 | $ | 736 |
Note_12_Geographic_Data_Tables
Note 12 - Geographic Data (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||||||
United States | $ | 11,327 | $ | 11,016 | $ | 32,390 | $ | 31,182 | |||||||||||||||||||||||||
International | 16,426 | 14,341 | 47,762 | 37,802 | |||||||||||||||||||||||||||||
Total net revenues | $ | 27,753 | $ | 25,357 | $ | 80,152 | $ | 68,984 | |||||||||||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net revenues international: | % of | % of | % of | % of | |||||||||||||||||||||||||||||
consolidated | consolidated | consolidated | consolidated | ||||||||||||||||||||||||||||||
net revenue | net revenue | net revenue | net revenue | ||||||||||||||||||||||||||||||
Mexico | $ | 4,002 | 14.40% | $ | 4,095 | 16.10% | $ | 11,277 | 14.10% | $ | 10,432 | 15.10% | |||||||||||||||||||||
South Africa | 3,873 | 14 | 1,823 | 7.2 | 11,809 | 14.7 | 5,590 | 8.1 | |||||||||||||||||||||||||
Japan | 2,079 | 7.5 | 1,733 | 6.8 | 4,680 | 5.8 | 4,602 | 6.7 | |||||||||||||||||||||||||
China | 1,911 | 6.9 | 1,458 | 5.7 | 4,956 | 6.2 | 2,999 | 4.3 | |||||||||||||||||||||||||
Canada | 1,545 | 5.6 | 1,660 | 6.5 | 4,389 | 5.5 | 4,864 | 7.1 | |||||||||||||||||||||||||
Australia | 1,283 | 4.6 | 2,208 | 8.7 | 5,046 | 6.3 | 5,056 | 7.3 | |||||||||||||||||||||||||
India | 1,203 | 4.3 | 467 | 1.8 | 3,318 | 4.1 | 1,404 | 2 | |||||||||||||||||||||||||
All others | 530 | 1.9 | 897 | 3.5 | 2,287 | 2.9 | 2,855 | 4.1 | |||||||||||||||||||||||||
Total international revenues | $ | 16,426 | 59.20% | $ | 14,341 | 56.30% | $ | 47,762 | 59.60% | $ | 37,802 | 54.70% | |||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Operating income: | |||||||||||||||||||||||||||||||||
United States | $ | 99 | $ | 729 | $ | 383 | $ | 2,049 | |||||||||||||||||||||||||
International | 291 | 177 | 520 | 3 | |||||||||||||||||||||||||||||
Total operating income | $ | 390 | $ | 906 | $ | 903 | $ | 2,052 | |||||||||||||||||||||||||
Reconciliation of Long Lived Assets from Segments to Consolidated [Table TextBlock} | ' | ||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Long lived assets: | |||||||||||||||||||||||||||||||||
United States | $ | 4,434 | $ | 3,145 | |||||||||||||||||||||||||||||
International | 2,458 | 2,129 | |||||||||||||||||||||||||||||||
Total long lived assets | $ | 6,892 | $ | 5,274 |
Note_13_Supplemental_Balance_S1
Note 13 - Supplemental Balance Sheet Information (in thousands) (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accounts receivable, net, consists of the following: | |||||||||
Trade | $ | 13,407 | $ | 18,011 | |||||
Unbilled | 5,354 | 3,577 | |||||||
Non-trade | 367 | 42 | |||||||
19,128 | 21,630 | ||||||||
Less allowance for doubtful accounts | 91 | 216 | |||||||
Accounts receivable, net | $ | 19,037 | $ | 21,414 | |||||
Schedule of Property Plant and Equipment [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property and equipment, net, consists of the following: | |||||||||
Equipment | $ | 8,513 | $ | 8,366 | |||||
Furniture and fixtures | 595 | 570 | |||||||
Leasehold improvements | 250 | 250 | |||||||
Capitalized software development costs | 5,753 | 5,044 | |||||||
15,111 | 14,230 | ||||||||
Less accumulated depreciation and amortization | 13,072 | 12,453 | |||||||
Property and equipment, net | $ | 2,039 | $ | 1,777 | |||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Intangible assets consist of the following: | |||||||||
Customer contracts and lists | $ | 3,069 | $ | 1,804 | |||||
Less accumulated amortization | 659 | 336 | |||||||
$ | 2,410 | $ | 1,468 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||
Year | Amount | ||||||||
2013 | $ | 454 | |||||||
2014 | 525 | ||||||||
2015 | 462 | ||||||||
2016 | 382 | ||||||||
2017 | 382 | ||||||||
Thereafter | 205 | ||||||||
Total | $ | 2,410 | |||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
Accrued salaries payable | $ | 625 | $ | 799 | |||||
Taxes payable | 878 | 1,460 | |||||||
Loans from domestic and international partners | 1,167 | 1,559 | |||||||
Accrued accounting and legal expense | 358 | 358 | |||||||
Final payment for purchase of NMS, LLC | - | 200 | |||||||
Contingent liabilities, incentive for consulting fees | 689 | 689 | |||||||
Short term portion of capital lease obligations | 115 | 178 | |||||||
Other | 1,587 | 1,486 | |||||||
Accrued expenses and other current liabilities | $ | 5,419 | $ | 6,729 |
Note_15_Discontinued_Operation1
Note 15 - Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net revenues | $ | 952 | $ | 1,066 | $ | 3,426 | $ | 2,828 | |||||||||
Cost of revenues | 733 | 858 | 2,736 | 2,258 | |||||||||||||
Gross profit | 219 | 208 | 690 | 570 | |||||||||||||
Selling, general and administrative expenses | 208 | 177 | 562 | 426 | |||||||||||||
Depreciation and amortization | – | 1 | 1 | 9 | |||||||||||||
Operating income | 11 | 30 | 127 | 135 | |||||||||||||
Other (income) expense | (6 | ) | 12 | 29 | 40 | ||||||||||||
Income from operations | $ | 17 | $ | 18 | $ | 98 | $ | 95 |
Note_2_Business_and_Organizati1
Note 2 - Business and Organization (Details) | Sep. 30, 2013 |
Disclosure Text Block [Abstract] | ' |
Number of Countries in which Entity Operates | 9 |
Note_3_Earnings_Per_Share_Deta
Note 3 - Earnings Per Share (Details) - Basic and diluted earnings per share (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Income from continuing operations attributable to SPAR Group, Inc. (in Dollars) | $331 | $578 | $244 | $1,603 |
Denominator: | ' | ' | ' | ' |
Shares used in basic net income per share calculation | 20,503 | 20,275 | 20,483 | 20,175 |
Effect of diluted securities: | ' | ' | ' | ' |
Employee stock options | 1,278 | 1,712 | 1,225 | 1,507 |
Shares used in diluted net income per common share calculation | 21,781 | 21,987 | 21,708 | 21,682 |
Basic net income per common share (in Dollars per share) | $0.02 | $0.03 | $0.01 | $0.08 |
Diluted net income per common share (in Dollars per share) | $0.02 | $0.03 | $0.01 | $0.07 |
Note_4_Credit_Facilities_Detai
Note 4 - Credit Facilities (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Mizuho Bank [Member} | ' | ' |
Note 4 - Credit Facilities (Details) [Line Items] | ' | ' |
Debt Instrument, Face Amount (in Dollars) | $204,000 | $204,000 |
Debt Instrument, Periodic Payment (in Dollars) | ' | 2,400 |
Debt Instrument, Interest Rate, Stated Percentage | 0.10% | 0.10% |
Loans Payable (in Dollars) | 129,000 | 129,000 |
Sterling Credit Facility [Member] | ' | ' |
Note 4 - Credit Facilities (Details) [Line Items] | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.50% | 0.25% |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 6,500,000 | 6,500,000 |
Percent of Eligible Domestic Accounts Receivable Less Certain Reserves To Calculate Borrowing Availability | 85.00% | 85.00% |
Reduction in Interest Rate From Previous Rate | 0.75% | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.13% | 0.25% |
Oxford Funding Pty Ltd [Member] | ' | ' |
Note 4 - Credit Facilities (Details) [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 1,100,000 | 1,100,000 |
Percent of Eligible Domestic Accounts Receivable Less Certain Reserves To Calculate Borrowing Availability | 80.00% | 80.00% |
Royal Bank of Canada [Member] | ' | ' |
Note 4 - Credit Facilities (Details) [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $728,000 | $728,000 |
Percent of Eligible Domestic Accounts Receivable Less Certain Reserves To Calculate Borrowing Availability | 75.00% | 75.00% |
Note_4_Credit_Facilities_Detai1
Note 4 - Credit Facilities (Details) - Credit facilities loan balance (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Note 4 - Credit Facilities (Details) - Credit facilities loan balance [Line Items] | ' | ' | ||
Loan Balance: (in Dollars) | $2,214 | $2,393 | [1] | |
Japan Term Loan (in Dollars) | 129 | 171 | ||
Japan Term Loan | 0.10% | [2] | 0.10% | [3] |
United States [Member] | ' | ' | ||
Note 4 - Credit Facilities (Details) - Credit facilities loan balance [Line Items] | ' | ' | ||
Loan Balance: (in Dollars) | 2,214 | 1,762 | ||
Unused Availability | 2.80% | [2] | 4.30% | [3] |
Australia [Member] | ' | ' | ||
Note 4 - Credit Facilities (Details) - Credit facilities loan balance [Line Items] | ' | ' | ||
Loan Balance: (in Dollars) | ' | 210 | ||
Unused Availability | ' | [2] | 9.40% | [3] |
Canada [Member] | ' | ' | ||
Note 4 - Credit Facilities (Details) - Credit facilities loan balance [Line Items] | ' | ' | ||
Loan Balance: (in Dollars) | ' | $421 | ||
Unused Availability | ' | [2] | 4.00% | [3] |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. | |||
[2] | Based on average interest rate for the three months ended September 30, 2013. | |||
[3] | Based on average interest rate for the twelve months ended December 31, 2012. |
Note_4_Credit_Facilities_Detai2
Note 4 - Credit Facilities (Details) - Unused Availability (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 4 - Credit Facilities (Details) - Unused Availability [Line Items] | ' | ' |
UnusP5d Nvailability | $4,682 | $5,614 |
United States [Member] | ' | ' |
Note 4 - Credit Facilities (Details) - Unused Availability [Line Items] | ' | ' |
UnusP5d Nvailability | 2,835 | 4,248 |
Australia [Member] | ' | ' |
Note 4 - Credit Facilities (Details) - Unused Availability [Line Items] | ' | ' |
UnusP5d Nvailability | 1,119 | 1,035 |
Canada [Member] | ' | ' |
Note 4 - Credit Facilities (Details) - Unused Availability [Line Items] | ' | ' |
UnusP5d Nvailability | $728 | $331 |
Note_5_Capital_Lease_Obligatio2
Note 5 - Capital Lease Obligations (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Note 5 - Capital Lease Obligations (Details) [Line Items] | ' |
Number of Outstanding Capital Lease Obligations | 4 |
Minimum [Member] | ' |
Note 5 - Capital Lease Obligations (Details) [Line Items] | ' |
Capital Lease Interest Rate | 4.50% |
Maximum [Member] | ' |
Note 5 - Capital Lease Obligations (Details) [Line Items] | ' |
Capital Lease Interest Rate | 7.00% |
Note_5_Capital_Lease_Obligatio3
Note 5 - Capital Lease Obligations (Details) - Capital lease assets balances (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Capital Leased Assets [Line Items] | ' |
Original Cost | $441 |
Accumulated Amortization | 304 |
Net Book Value | 137 |
November 2010 [Member] | ' |
Capital Leased Assets [Line Items] | ' |
Original Cost | 48 |
Accumulated Amortization | 47 |
Net Book Value | 1 |
June 2011 [Member] | ' |
Capital Leased Assets [Line Items] | ' |
Original Cost | 140 |
Accumulated Amortization | 109 |
Net Book Value | 31 |
January 2012 Lease 1 [Member] | ' |
Capital Leased Assets [Line Items] | ' |
Original Cost | 224 |
Accumulated Amortization | 131 |
Net Book Value | 93 |
January 2012 Lease 2 [Member] | ' |
Capital Leased Assets [Line Items] | ' |
Original Cost | 29 |
Accumulated Amortization | 17 |
Net Book Value | $12 |
Note_5_Capital_Lease_Obligatio4
Note 5 - Capital Lease Obligations (Details) - Annual future minimum lease payments required under the leases (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Annual future minimum lease payments required under the leases [Abstract] | ' |
2013 | $38 |
2014 | 113 |
151 | |
Less amount representing interest | 7 |
Present value of net minimum lease payments included with other liabilities | $144 |
Note_6_RelatedParty_Transactio1
Note 6 - Related-Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 2 Months Ended | 7 Months Ended | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Spar Business Ideas Provider S.R.L. [Member] | Spar Business Ideas Provider S.R.L. [Member] | Spar Business Ideas Provider S.R.L. [Member] | Plus 2% Compensation [Member] | Plus 2% Compensation [Member] | Plus 4% Compensation [Member] | Plus 4% Compensation [Member] | Administrative Services [Member] | Administrative Services [Member] | Domestic Merchandising Specialists Field Force [Member] | Domestic Merchandising Specialists Field Force [Member] | Domestic Field Management [Member] | Domestic Field Management [Member] | Plus 4% Compensation [Member] | Plus 2% Compensation [Member] | NMS [Member] | NMS [Member] | NMA [Member] | Minimum [Member] | Maximum [Member] | |||||
Gross Sales Price [Member] | Cash Paid At Closing [Member] | NRS [Member] | NMA [Member] | |||||||||||||||||||||
Note 6 - Related-Party Transactions (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of Service Provided by Related Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.00% | 98.00% | 94.00% | 93.00% | ' | ' | ' | ' | ' | ' | ' |
Cost of Services | ' | ' | ' | $18,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Value of Handheld Computers Per Month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | 3,000 |
Related Party Transaction, Rate | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 2.00% | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | ' | ' | ' | 348,465 | 187,767 | ' | 6,000 | 24,000 | 693,000 | 694,000 | 455,000 | 438,000 | ' | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 7,130,000 | 6,565,000 | 19,563,000 | 18,594,000 | ' | ' | ' | ' | ' | ' | ' | ' | 54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | 51.00% | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | 49.00% | ' | ' |
Increase Decrease In Cost of Revenue | ' | ' | $550,000 | $560,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note Receivable Term for Repayment | ' | ' | ' | ' | ' | ' | '30 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_6_RelatedParty_Transactio2
Note 6 - Related-Party Transactions (Details) - Transactions Between the Company and Affiliates (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Services provided by affiliates: | ' | ' | ' | ' |
Services provided by affiliates | $7,130,000 | $6,565,000 | $19,563,000 | $18,594,000 |
Field Merchandiser Services SMS [Member] | ' | ' | ' | ' |
Services provided by affiliates: | ' | ' | ' | ' |
Services provided by affiliates | 5,417,000 | 5,044,000 | 14,304,000 | 14,803,000 |
Field Management Services [Member] | ' | ' | ' | ' |
Services provided by affiliates: | ' | ' | ' | ' |
Services provided by affiliates | 1,266,000 | 1,125,000 | 3,706,000 | 3,395,000 |
Field Merchandiser Services NMA [Member] | ' | ' | ' | ' |
Services provided by affiliates: | ' | ' | ' | ' |
Services provided by affiliates | $447,000 | $396,000 | $1,553,000 | $396,000 |
Note_6_RelatedParty_Transactio3
Note 6 - Related-Party Transactions (Details) - Accrued Expenses (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Accrued Expenses [Abstract] | ' | ' | |
Total accrued expenses due to affiliates | $2,159 | $705 | [1] |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Note_7_Preferred_Stock_Details
Note 7 - Preferred Stock (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | ||
Note 7 - Preferred Stock (Details) [Line Items] | ' | ' | ' | |
Preferred Stock, Shares Authorized | 3,000,000 | 2,445,598 | 2,445,598 | [1] |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0.01 | $0.01 | $0.01 | [1] |
Preferred Stock, Dividend Rate, Percentage | 10.00% | ' | ' | |
Preferred Stock, Conversion Basis | 'one-to-one | ' | ' | |
Preferred Class A [Member] | ' | ' | ' | |
Note 7 - Preferred Stock (Details) [Line Items] | ' | ' | ' | |
Preferred Stock, Shares Authorized | 3,000,000 | ' | ' | |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Note_8_StockBased_Compensation1
Note 8 - Stock-Based Compensation and Other Plans (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2011 | Mar. 10, 2011 | 7-May-13 | Jan. 03, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 06, 2013 | Sep. 30, 2013 | |
Non Employee Director [Member] | Non Employee Director [Member] | Non Employee Director [Member] | Eight New Employees of SGRP And SMSI [Member] | The 2011 RS Award [Member] | The 2012 RS Award [Member] | Restriced Stock Award to CEO on Mar 10, 2011 [Member] | The 2008 Plan [Member] | The 2008 Plan [Member] | |||||
Note 8 - Stock-Based Compensation and Other Plans (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | 25,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | 5,600,000 |
Share-based Compensation Arrangement by Share-based Payment Award Options Term | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Percent | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock or Unit Option Plan Expense (in Dollars) | $394,000 | $348,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | ' | ' | ' | 30,000 | 10,000 | ' | 28,000 | ' | ' | ' | 428,000 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | $2.04 | $1.70 | ' | $1.69 | ' | ' | ' | $2.14 | ' |
Estimated Stock Compensation Expense (in Dollars) | ' | ' | ' | ' | 61,200 | 17,000 | ' | ' | ' | ' | ' | 915,980 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | '1 year | ' | '4 years | ' | ' | '5 years | '4 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ' | ' | ' | ' | 157.00% | 0.00% | 0.00% | ' | ' | ' | ' | 0.00% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | ' | 6.00% | 1.71% | 157.00% | ' | ' | ' | ' | 157.00% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | ' | ' | ' | 1.71% | ' | ' | ' | ' | 1.71% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | '6 years | ' |
Restricted Stock or Unit Expense (in Dollars) | ' | ' | ' | ' | ' | ' | ' | 47,320 | 36,613 | 4,266 | ' | ' | ' |
Number Of Shares Vesting (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | 5,000 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | $117,870 | $21,023 | ' | ' | ' |
Note_9_Customer_Deposits_Detai
Note 9 - Customer Deposits (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
Note 9 - Customer Deposits (Details) [Line Items] | ' | ' | |
Customer Deposits, Current | $627,000 | $263,000 | [1] |
Domestic Operations [Member] | ' | ' | |
Note 9 - Customer Deposits (Details) [Line Items] | ' | ' | |
Customer Deposits, Current | 335,000 | 176,000 | |
International Operations [Member] | ' | ' | |
Note 9 - Customer Deposits (Details) [Line Items] | ' | ' | |
Customer Deposits, Current | $292,000 | $87,000 | |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Note_11_Purchase_of_Interests_2
Note 11 - Purchase of Interests in Subsidiaries (Details) (USD $) | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 02, 2013 | Mar. 31, 2013 | Mar. 02, 2013 | Mar. 15, 2013 | Mar. 02, 2013 | |
If Achieve $228,000 EBIT in 2013 [Member] | If Achieve $228,000 EBIT in 2014 [Member] | Year 1 of Operation [Member] | Year 2 of Operation [Member] | Year 3 of Operation [Member] | Additional Bonus After 3 Years [Member] | Minimum Threshold for Additional Bonus [Member] | NMS [Member] | NMS [Member] | NMS [Member] | CMR Meridien [Member] | Preceptor Marketing Services Private Limited [Member] | Preceptor Marketing Services Private Limited [Member] | MFI Business [Member] | MFI Business [Member] | MFI Business [Member] | ||||
CMR Meridien [Member] | CMR Meridien [Member] | CMR Meridien [Member] | CMR Meridien [Member] | CMR Meridien [Member] | CMR Meridien [Member] | CMR Meridien [Member] | Purchase Agreement [Member] | ||||||||||||
Note 11 - Purchase of Interests in Subsidiaries (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | 51.00% | ' | 51.00% | ' | 51.00% | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | 49.00% | ' | 49.00% | ' | ' | ' |
Business Combination, Consideration Transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $859,050 | ' | ' | ' | $21,000 | ' | ' | $1,300,000 | ' |
Business Acquisition Cost of Acquired Entity Capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 510 | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | 73,000 | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred, Liabilities Incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 165,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | 689,000 | ' | 689,000 | 69,000 | 92,000 | ' | ' | ' | 57,000 | ' | 93,540 | ' | ' | 154,000 | ' | ' | ' | ' | ' |
Percent of EBIT Used to Compute Maximum Earn Out | ' | ' | ' | ' | ' | 50.00% | 25.00% | 10.00% | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Base EBITDA Used to Calculate Earn Out | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | 228,000 | ' | ' | ' | ' | ' |
Maximum Earn Out Based on EBITDA of Joint Venture | ' | ' | ' | ' | ' | 159,000 | 93,000 | 44,000 | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Projected Consulting Fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93,540 | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | '5 years | ' | ' |
Amortization of Intangible Assets | 323,000 | 113,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,474 | ' | ' | ' | ' | ' | ' | ' |
Due from Affiliates | ' | 380,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Before Interest and Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 684,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,300,000 |
Note_11_Purchase_of_Interests_3
Note 11 - Purchase of Interests in Subsidiaries (Details) - Allocation between identifiable intangibles and goodwill (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | |
NMS [Member] | ||||
Note 11 - Purchase of Interests in Subsidiaries (Details) - Allocation between identifiable intangibles and goodwill [Line Items] | ' | ' | ' | |
Intangible asset | ' | ' | $526,320 | |
Goodwill | 1,792,000 | 1,792,000 | [1] | 332,730 |
' | ' | $859,050 | ||
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Note_11_Purchase_of_Interests_4
Note 11 - Purchase of Interests in Subsidiaries (Details) - Pro Forma Information (MFI Business [Member], USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
MFI Business [Member] | ' | ' | ' | ' | ' |
Note 11 - Purchase of Interests in Subsidiaries (Details) - Pro Forma Information [Line Items] | ' | ' | ' | ' | ' |
Actual MFI Revenue | $1,766 | ' | $4,485 | ' | ' |
Actual MFI Net Income (Loss) | -150 | ' | 339 | ' | ' |
Revenue | 27,753 | 28,179 | ' | 82,316 | 77,252 |
Net Income (Loss) | $331 | $216 | ' | ($106) | $736 |
Note_12_Geographic_Data_Detail
Note 12 - Geographic Data (Details) - Net revenues (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net revenues | $27,753 | $25,357 | $80,152 | $68,984 |
United States [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net revenues | 11,327 | 11,016 | 32,390 | 31,182 |
International [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net revenues | $16,426 | $14,341 | $47,762 | $37,802 |
Note_12_Geographic_Data_Detail1
Note 12 - Geographic Data (Details) - International net revenue detail (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | $27,753 | $25,357 | $80,152 | $68,984 |
Mexico [Member] | ' | ' | ' | ' |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | 4,002 | 4,095 | 11,277 | 10,432 |
% of consolidated net revenue | 14.40% | 16.10% | 14.10% | 15.10% |
South Africa [Member] | ' | ' | ' | ' |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | 3,873 | 1,823 | 11,809 | 5,590 |
% of consolidated net revenue | 14.00% | 7.20% | 14.70% | 8.10% |
Japan [Member] | ' | ' | ' | ' |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | 2,079 | 1,733 | 4,680 | 4,602 |
% of consolidated net revenue | 7.50% | 6.80% | 5.80% | 6.70% |
China [Member] | ' | ' | ' | ' |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | 1,911 | 1,458 | 4,956 | 2,999 |
% of consolidated net revenue | 6.90% | 5.70% | 6.20% | 4.30% |
Canada [Member] | ' | ' | ' | ' |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | 1,545 | 1,660 | 4,389 | 4,864 |
% of consolidated net revenue | 5.60% | 6.50% | 5.50% | 7.10% |
Australia [Member] | ' | ' | ' | ' |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | 1,283 | 2,208 | 5,046 | 5,056 |
% of consolidated net revenue | 4.60% | 8.70% | 6.30% | 7.30% |
India [Member] | ' | ' | ' | ' |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | 1,203 | 467 | 3,318 | 1,404 |
% of consolidated net revenue | 4.30% | 1.80% | 4.10% | 2.00% |
All Others [Member] | ' | ' | ' | ' |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | 530 | 897 | 2,287 | 2,855 |
% of consolidated net revenue | 1.90% | 3.50% | 2.90% | 4.10% |
International [Member] | ' | ' | ' | ' |
Note 12 - Geographic Data (Details) - International net revenue detail [Line Items] | ' | ' | ' | ' |
Net revenue (in Dollars) | $16,426 | $14,341 | $47,762 | $37,802 |
% of consolidated net revenue | 59.20% | 56.30% | 59.60% | 54.70% |
Note_12_Geographic_Data_Detail2
Note 12 - Geographic Data (Details) - Operating income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Operating income (loss) | $390 | $906 | $903 | $2,052 |
United States [Member] | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Operating income (loss) | 99 | 729 | 383 | 2,049 |
International [Member] | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Operating income (loss) | $291 | $177 | $520 | $3 |
Note_12_Geographic_Data_Detail3
Note 12 - Geographic Data (Details) - Long lived assets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 12 - Geographic Data (Details) - Long lived assets [Line Items] | ' | ' |
Long lived assets | $6,892 | $5,274 |
United States [Member] | ' | ' |
Note 12 - Geographic Data (Details) - Long lived assets [Line Items] | ' | ' |
Long lived assets | 4,434 | 3,145 |
International [Member] | ' | ' |
Note 12 - Geographic Data (Details) - Long lived assets [Line Items] | ' | ' |
Long lived assets | $2,458 | $2,129 |
Note_13_Supplemental_Balance_S2
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | $3,069,000 | ' | $1,804,000 |
Amortization of Intangible Assets | $323,000 | $113,000 | ' |
Minimum [Member] | ' | ' | ' |
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years | ' | ' |
Note_13_Supplemental_Balance_S3
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Accounts receivable (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts Receivable, Gross | $19,128 | $21,630 |
Less allowance for doubtful accounts | 91 | 216 |
Accounts receivable, net | 19,037 | 21,414 |
Trade Accounts Receivable [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts Receivable, Gross | 13,407 | 18,011 |
Unbilled [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts Receivable, Gross | 5,354 | 3,577 |
Non-trade [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts Receivable, Gross | $367 | $42 |
Note_13_Supplemental_Balance_S4
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Property and equipment (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Property and equipment [Line Items] | ' | ' | |
Property and equipment, gross | $15,111 | $14,230 | |
Less accumulated depreciation and amortization | 13,072 | 12,453 | |
Property and equipment, net | 2,039 | 1,777 | [1] |
Equipment [Member] | ' | ' | |
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Property and equipment [Line Items] | ' | ' | |
Property and equipment, gross | 8,513 | 8,366 | |
Furniture and Fixtures [Member] | ' | ' | |
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Property and equipment [Line Items] | ' | ' | |
Property and equipment, gross | 595 | 570 | |
Leasehold Improvements [Member] | ' | ' | |
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Property and equipment [Line Items] | ' | ' | |
Property and equipment, gross | 250 | 250 | |
Software Development [Member] | ' | ' | |
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Property and equipment [Line Items] | ' | ' | |
Property and equipment, gross | $5,753 | $5,044 | |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Note_13_Supplemental_Balance_S5
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Intangible Assets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangible Assets [Abstract] | ' | ' |
Customer contracts and lists | $3,069 | $1,804 |
Less accumulated amortization | 659 | 336 |
$2,410 | $1,468 |
Note_13_Supplemental_Balance_S6
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Annual amortization expense (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Annual amortization expense [Abstract] | ' | ' |
2013 | $454 | ' |
2014 | 525 | ' |
2015 | 462 | ' |
2016 | 382 | ' |
2017 | 382 | ' |
Thereafter | 205 | ' |
Total | $2,410 | $1,468 |
Note_13_Supplemental_Balance_S7
Note 13 - Supplemental Balance Sheet Information (in thousands) (Details) - Accrued expenses and other current liabilities (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Accrued expenses and other current liabilities [Abstract] | ' | ' | |
Accrued salaries payable | $625 | $799 | |
Taxes payable | 878 | 1,460 | |
Loans from domestic and international partners | 1,167 | 1,559 | |
Accrued accounting and legal expense | 358 | 358 | |
Final payment for purchase of NMS, LLC | ' | 200 | |
Contingent liabilities, incentive for consulting fees | 689 | 689 | |
Short term portion of capital lease obligations | 115 | 178 | |
Other | 1,587 | 1,486 | |
Accrued expenses and other current liabilities | $5,419 | $6,729 | [1] |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Note_14_Foreign_Currency_Rate_1
Note 14 - Foreign Currency Rate Fluctuations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||
Note 14 - Foreign Currency Rate Fluctuations (Details) [Line Items] | ' | ' | ' | ' | ' | |
Assets | $29,928,000 | ' | $29,928,000 | ' | $29,270,000 | [1] |
Liabilities | 14,572,000 | ' | 14,572,000 | ' | 14,535,000 | [1] |
Net Income (Loss) Attributable to Parent | 523,000 | 859,000 | 794,000 | 1,954,000 | ' | |
International subsidiaries [Member] | ' | ' | ' | ' | ' | |
Note 14 - Foreign Currency Rate Fluctuations (Details) [Line Items] | ' | ' | ' | ' | ' | |
Assets | 12,800,000 | ' | 12,800,000 | ' | ' | |
Liabilities | 10,100,000 | ' | 10,100,000 | ' | ' | |
Revenues | ' | ' | 47,800,000 | 37,800,000 | ' | |
Net Income (Loss) Attributable to Parent | ' | ' | $8,000 | ($205,000) | ' | |
[1] | The Balance Sheet at December 31, 2012, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Note_15_Discontinued_Operation2
Note 15 - Discontinued Operations (Details) (Romanian Disposal Group [Member], USD $) | 0 Months Ended |
Aug. 31, 2013 | |
Romanian Disposal Group [Member] | ' |
Note 15 - Discontinued Operations (Details) [Line Items] | ' |
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | $348,465 |
Proceeds from Divestiture of Businesses | $187,767 |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
Note_15_Discontinued_Operation3
Note 15 - Discontinued Operations (Details) - Components of Earnings From Discontinued Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Net revenues | $952 | $1,066 | $3,426 | $2,828 |
Cost of revenues | 21,228 | 19,042 | 61,252 | 50,555 |
Gross profit | 219 | 208 | 690 | 570 |
Selling, general and administrative expenses | 208 | 177 | 562 | 426 |
Depreciation and amortization | ' | 1 | 1 | 9 |
Operating income | 11 | 30 | 127 | 135 |
Other (income) expense | -6 | 12 | 29 | 40 |
Income from operations | 17 | 18 | 98 | 95 |
Romanian Disposal Group [Member] | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Cost of revenues | $733 | $858 | $2,736 | $2,258 |
Note_16_Taxes_Details
Note 16 - Taxes (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Liability for Uncertain Tax Positions, Current | $123,000 | $93,000 |