Attached files
| file | filename |
|---|---|
| 8-K - 8-K - GP STRATEGIES CORP | a12-11138_18k.htm |
Exhibit 99.1
|
|
NEWS RELEASE |
GP Strategies Reports Strong First Quarter 2012 EPS of $0.23
Revenue Grew 46%; Operating Income Increased 70%; EBITDA up 67%
Elkridge, MD. May 3, 2012. Global performance improvement solutions provider GP Strategies Corporation (NYSE: GPX) today reported financial results for the quarter ended March 31, 2012.
Overview of First Quarter 2012 Results:
· Revenue of $93.6 million for first quarter of 2012 compared to $64.3 million for first quarter of 2011
· Operating income of $7.3 million for first quarter of 2012 compared to $4.3 million for first quarter of 2011
· Diluted earnings per share of $0.23 for first quarter of 2012 compared to $0.14 per share for first quarter of 2011
· EBITDA of $9.2 million for first quarter of 2012 compared to $5.5 million for first quarter of 2011
· Cash flow from operations of $7.0 million for first quarter of 2012
The Company’s revenue increased 46% or $29.3 million during the first quarter of 2012 compared to the first quarter of 2011. The RWD consulting business, which was acquired from RWD Technologies in April 2011, contributed $17.7 million of revenue during the first quarter of 2012. All of the Company’s operating segments achieved organic growth during the quarter, resulting in total organic revenue growth of 13% for the Company during the first quarter of 2012. The growth was driven by increased services for both new and existing customers across a variety of industries. Operating income increased 70% to $7.3 million for the first quarter of 2012 from $4.3 million for the first quarter of 2011. Net income was $4.4 million for the first quarter of 2012 compared to $2.6 million for the first quarter of 2011.
“I am pleased to report that our trend of extremely strong financial results continued into 2012,” commented Scott N. Greenberg, Chief Executive Officer of GP Strategies. “We achieved double-digit organic revenue growth, led by solid performance across all of our operating segments. These positive results, combined with the successful execution of our acquisition strategy, continue to reinforce the Company’s long-term growth prospects.”
Balance Sheet and Cash Flow Highlights
As of March 31, 2012, the Company had cash and cash equivalents of $8.3 million compared to $4.2 million as of December 31, 2011. The Company had no short-term borrowings or long-term debt outstanding as of March 31, 2012. Cash provided by operating activities was $7.0 million for the quarter ended March 31, 2012 compared to $2.4 million for the same period in 2011.
Investor Call
The Company has scheduled an investor conference call for 10:00 a.m. ET on May 3, 2012. In addition to prepared remarks from management, there will be a question and answer session on the call. The dial-in numbers for the live conference call are 800-681-1608 or 303-223-2690, using conference ID number 21590137. A telephone replay of the call will also be available beginning at 12:00 p.m. on May 3rd, until 12:00 p.m. on May 17th. To listen to the replay, dial 800-633-8284 or 402-977-9140, using conference ID number 21590137.
Presentation of Non-GAAP Information
This press release contains non-GAAP financial measures, including EBITDA (earnings before interest, income taxes, depreciation and amortization). The Company believes this non-GAAP financial measure is useful to investors in evaluating the Company’s results. This measure should be considered in addition to, and not as a replacement for, or superior to, either net income, as an indicator of the Company’s operating performance, or cash flow, as a measure of the Company’s liquidity. In addition, because EBITDA may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. For a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent, see the Non-GAAP Reconciliation — EBITDA, along with related footnotes, below.
About GP Strategies
GP Strategies Corporation (NYSE: GPX) is a global performance improvement solutions provider of sales and technical training, eLearning solutions, management consulting and engineering services. GP Strategies’ solutions improve the effectiveness of organizations by delivering innovative and superior training, consulting and business improvement services, customized to meet the specific needs of its clients. Clients include Fortune 500 companies, manufacturing, process and energy industries, and other commercial and government customers. Additional information may be found at www.gpstrategies.com.
Forward-Looking Statements
We make statements in this press release that are considered forward-looking statements within the meaning of the Securities Exchange Act of 1934. These statements are not guarantees of our future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to be materially
different from those we project. For a full discussion of these risks, uncertainties and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
TABLES FOLLOW
GP STRATEGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
|
|
|
Three months ended |
| ||||
|
|
|
March 31, |
| ||||
|
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
|
| ||
|
Revenue |
|
$ |
93,605 |
|
$ |
64,293 |
|
|
Cost of revenue |
|
77,993 |
|
53,501 |
| ||
|
Gross profit |
|
15,612 |
|
10,792 |
| ||
|
Selling, general and administrative expenses |
|
8,288 |
|
6,748 |
| ||
|
Gain (loss) on change in fair value of contingent consideration, net |
|
(40 |
) |
246 |
| ||
|
Operating income |
|
7,284 |
|
4,290 |
| ||
|
Interest expense |
|
40 |
|
33 |
| ||
|
Other income |
|
90 |
|
181 |
| ||
|
Income before income tax expense |
|
7,334 |
|
4,438 |
| ||
|
Income tax expense |
|
2,950 |
|
1,848 |
| ||
|
Net income |
|
$ |
4,384 |
|
$ |
2,590 |
|
|
|
|
|
|
|
| ||
|
Basic weighted average shares outstanding |
|
18,830 |
|
18,724 |
| ||
|
Diluted weighted average shares outstanding |
|
19,188 |
|
18,892 |
| ||
|
|
|
|
|
|
| ||
|
Per common share data: |
|
|
|
|
| ||
|
Basic earnings per share |
|
$ |
0.23 |
|
$ |
0.14 |
|
|
Diluted earnings per share |
|
$ |
0.23 |
|
$ |
0.14 |
|
|
|
|
|
|
|
| ||
|
Other data: |
|
|
|
|
| ||
|
EBITDA (1) |
|
$ |
9,232 |
|
$ |
5,537 |
|
|
(1) |
The term (earnings before interest, income taxes, depreciation and amortization) is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results. For a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent, see the Non-GAAP Reconciliation — EBITDA, along with related footnotes, below. |
GP STRATEGIES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)
|
|
|
Quarters ended |
| ||||
|
|
|
March 31, |
| ||||
|
|
|
2012 |
|
2011 |
| ||
|
Revenue by segment: |
|
|
|
|
| ||
|
Learning Solutions |
|
$ |
35,904 |
|
$ |
29,995 |
|
|
Professional & Technical Services |
|
24,450 |
|
17,261 |
| ||
|
Sandy Training & Marketing |
|
13,322 |
|
11,136 |
| ||
|
RWD |
|
13,831 |
|
— |
| ||
|
Energy Services |
|
6,098 |
|
5,901 |
| ||
|
Total revenue |
|
$ |
93,605 |
|
$ |
64,293 |
|
|
Gross profit by segment: |
|
|
|
|
| ||
|
Learning Solutions |
|
$ |
6,845 |
|
$ |
4,852 |
|
|
Professional & Technical Services |
|
3,569 |
|
2,640 |
| ||
|
Sandy Training & Marketing |
|
1,542 |
|
1,588 |
| ||
|
RWD |
|
1,575 |
|
— |
| ||
|
Energy Services |
|
2,081 |
|
1,712 |
| ||
|
Total gross profit |
|
$ |
15,612 |
|
$ |
10,792 |
|
|
Operating income by segment: |
|
|
|
|
| ||
|
Learning Solutions |
|
$ |
3,546 |
|
$ |
1,668 |
|
|
Professional & Technical Services |
|
1,561 |
|
923 |
| ||
|
Sandy Training & Marketing |
|
303 |
|
300 |
| ||
|
RWD |
|
245 |
|
— |
| ||
|
Energy Services |
|
1,669 |
|
1,153 |
| ||
|
Gain (loss) on change in fair value of contingent consideration, net |
|
(40 |
) |
246 |
| ||
|
Total operating income |
|
$ |
7,284 |
|
$ |
4,290 |
|
|
Supplemental Cash Flow Information: |
|
|
|
|
| ||
|
Net cash provided by operating activities |
|
$ |
6,963 |
|
$ |
2,376 |
|
|
Capital expenditures |
|
(925 |
) |
(758 |
) | ||
|
Free cash flow |
|
$ |
6,038 |
|
$ |
1,618 |
|
GP STRATEGIES CORPORATION AND SUBSIDIARIES
Non-GAAP Reconciliation —EBITDA (2)
(Dollars in thousands)
(Unaudited)
|
|
|
Three months ended |
| ||||
|
|
|
March 31, |
| ||||
|
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
|
| ||
|
Net income |
|
$ |
4,384 |
|
$ |
2,590 |
|
|
Interest expense |
|
40 |
|
33 |
| ||
|
Income tax expense |
|
2,950 |
|
1,848 |
| ||
|
Depreciation and amortization |
|
1,858 |
|
1,066 |
| ||
|
EBITDA |
|
$ |
9,232 |
|
$ |
5,537 |
|
|
(2) |
Earnings before interest, income taxes, depreciation and amortization (EBITDA) is a widely used non-GAAP financial measure of operating performance. It is presented as supplemental information that the Company believes is useful to investors to evaluate its results because it excludes certain items that are not directly related to the Company’s core operating performance. EBITDA is calculated by adding back to net income interest expense, income tax expense, depreciation and amortization. EBITDA should not be considered as substitutes either for net income, as an indicator of the Company’s operating performance, or for cash flow, as a measure of the Company’s liquidity. In addition, because EBITDA may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. |
GP STRATEGIES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
|
|
|
March 31, |
|
December 31, |
| ||
|
|
|
2012 |
|
2011 |
| ||
|
|
|
(Unaudited) |
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
8,261 |
|
$ |
4,151 |
|
|
Accounts and other receivables |
|
61,985 |
|
67,134 |
| ||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
20,126 |
|
15,576 |
| ||
|
Prepaid expenses and other current assets |
|
9,887 |
|
8,863 |
| ||
|
Total current assets |
|
100,259 |
|
95,724 |
| ||
|
Property, plant and equipment, net |
|
5,904 |
|
5,562 |
| ||
|
Goodwill and other intangibles, net |
|
108,257 |
|
108,460 |
| ||
|
Other assets |
|
1,932 |
|
1,830 |
| ||
|
Total assets |
|
$ |
216,352 |
|
$ |
211,576 |
|
|
|
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Accounts payable and accrued expenses |
|
$ |
41,024 |
|
$ |
42,500 |
|
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
17,606 |
|
17,266 |
| ||
|
Total current liabilities |
|
58,630 |
|
59,766 |
| ||
|
Other noncurrent liabilities |
|
7,987 |
|
8,416 |
| ||
|
Total liabilities |
|
66,617 |
|
68,182 |
| ||
|
Total stockholders’ equity |
|
149,735 |
|
143,394 |
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
216,352 |
|
$ |
211,576 |
|
© 2012 GP Strategies Corporation. All rights reserved. GP Strategies and the GP Strategies logo design are trademarks of GP Strategies Corporation.
# # # #
C O N T A C T S:
|
Scott N. Greenberg |
Sharon Esposito-Mayer |
Ann M. Blank |
|
Chief Executive Officer |
Chief Financial Officer |
Investor Relations |
|
410-379-3640 |
410-379-3636 |
410-379-3725 |