Dave Mossberg - IR Jill Blanchard - CEO Jim Segreto - CFO

My name is Dave Mossberg, Investor Relations representative for SPAR Group. On this recording, we will be discussing SPAR Group’s Fourth Quarter and 2015 Year-End Financial Results. Joining me to provide comments will be Ms. Jill Blanchard, Chief Executive Officer and President and Mr. Jim Segreto, our Chief Financial Officer. Before we begin, I’m going to review the company’s Safe Harbor statement. Investors should remember that the statements in this conference call that are not descriptions of historical facts are forward-looking statements relating to future events. As such, all forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and actual results may differ materially. When used in this call, the words anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project and other similar expressions as they relate to SPAR Group are such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, which may cause actual results to differ from those anticipated by SPAR Group at this time. In addition, other risks are more fully described in SPAR Group’s public filings with the U.S. Securities and Exchange Commission, which can be reviewed at www.sec.gov. With that, I would like to turn the call over to Jill Blanchard, CEO and President. Jill?

Thanks Dave. Welcome to the call and thank you for your interest in SPAR Group. We have mixed financial results for fourth quarter and 2015 financial performance. We continue to face the headwinds of unfavorable foreign exchange rate. However know that out the effects of FX we have positive comparisons in our international operations with growth from Mexico, China and South Africa offset by weakness in Australia. Our domestic business struggled down 6% for the year. Growth from new as well as existing customers was below our expectations and was not enough to offset the loss of a large customer due to industry consolidation as well as inconsistent business trends in one of our smaller business unit. We have also scaled back on investment in our domestic growth initiatives which slowed the pace a bit of new business growth and we will cover more on this topic later. While our performance has been inconsistent across markets and business units, we are having success in adding new global customers, also new initiatives were able to generate new business in late 2015, which we expect to be incremental to revenue in the current year. Our nearer term results are likely to continue to be inconsistent, until we can roll our strategic initiatives across our entire footprint and overall I am encouraged that we have puts in place the right strategic initiatives that will allow for more consistent financial performance. Before I get into more detail on our strategies and plan I’m going to turn the call over to our CFO Jim Segreto and he will provide greater detail on our financial results and I’ll be back with more detail. Jim?

Thank you, Jill. I will now give a quick overview of our fourth quarter and total year financial results for 2015. Revenue for the quarter was 32.3 million, an increase of 0.7%. Adjusting for foreign currency translation revenue would have been a positive 11.6%, compared to the same period in 2014. Revenue for the year was $119.3 million, a decrease of 2.2% compared to last year. Adjusting for foreign currency translation revenue actually increased 6.1% year-over-year. Breaking down revenue by geography, our domestic revenue was down 2.8% for the quarter and 6% for the year, the decrease in domestic revenue is primarily related to our decision to take our foot off of the accelerator in terms of investment in domestic business development. We were concern with domestic profitability levels in 2015 and focused on stabilizing profitability, but not so far that we won’t be able to resume growth in our domestic business going forward. I should emphasize here that we are maintaining existing customer relationships and our strategies are delivering success in adding new customers. As profitability improved, we expect to step-up investments in growth. Our domestic revenue is also affected by underperformance in two of our smaller business units both of which we have discussed in previous quarters. One of these business units was adversely affected by a late 2014 competitive acquisition of one it’s larger U.S. customers and through the process of being acquired is no longer doing business with SPAR. The other underperforming domestic business unit did recover in Q4, but not enough to offset weaknesses from earlier in the year. This business is less than 10% of our domestic revenue but can be very -- fairly volatile and during 2015, it was exceptionally so. On a brighter note, international revenue increased 2.6% for the quarter and…

Thanks Jim. Before we go into a review of our strategies. I to spend a few minutes going over some industry trends that we think are going to provide attractive secular growth opportunities for our business. It’s important to know that despite the growth of online retail physical stores will continue to be an important part of overall retail sales. According to 2015 Frost & Sullivan study, physical stores were 95% of almost $12 trillion in global retail sales in 2015. And by 2025, they are expected to be 81% of $23 trillion in global retail sales, which translates almost $7.5 trillion and dollar of growth over the next 10 years and that’s $3.7 trillion more growth than online sales are expected to experience over that same time period. So no wonder that online retailers like Amazon are opening up physical stores. While physical stores are going to continue to be the vast majority of retail sales in order to succeed retailers manufacturers will may to adapt to the way consumer shopping is changing. Even though digital devices influence 8 in 10 purchases, according to a 2015 MasterCard Omni-shopper and new shopper study 98% of those purchases happen in stores. But consumers are demanding more interact with knowledgeable sales associates when they’re in those stores. According to 2014 study from Tulip Retail about 7 in 10 people, who don’t find the sales associate helpful, will not make that purchase, conversely 9 in 10, who do, we’ll make that purchase and 97% will buy as much or more than planned. Those shows the important of bringing [ph] up in-store sales associates to service customers. Yet according to 2015 study from EKN Research about 70% of in-store labor time is spend on operational task versus sales and customer service and majority of…