GP Strategies Reports Second Quarter 2013 Financial Results

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COLUMBIA, Md., Aug. 1, 2013 /PRNewswire/ — Global performance improvement solutions provider GP Strategies Corporation (NYSE: GPX) today reported financial results for the quarter ended June 30, 2013.

Overview of Second Quarter 2013 Results:

• Revenue of $104.9 million for second quarter of 2013 compared to $102.3 million for second quarter of 2012
• Operating income of $8.6 million for second quarter of 2013 compared to $9.9 million for second quarter of 2012
• Diluted earnings per share of $0.27 for second quarter of 2013 compared to $0.31 per share for second quarter of 2012
• EBITDA of $ 10.6 million for second quarter of 2013 compared to $12.0 million for second quarter of 2012
• Backlog of $243.8 million as of June 30, 2013 compared to $197.2 million at June 30, 2012

The Company’s revenue increased $2.6 million or 2.5% during the second quarter of 2013 compared to the second quarter of 2012.  The revenue growth is primarily attributable to acquisitions completed during the second half of 2012 and 2013. Operating income decreased 13.8% to $8.6 million for the second quarter of 2013 from $9.9 million for the second quarter of 2012. Income before income tax expense was $8.6 million for the second quarter of 2013 compared to $10.0 million for the second quarter of 2012. Net income was $5.2 million, or $0.27 per share, for the second quarter of 2013 compared to $6.0 million, or $.31 per share, for the second quarter of 2012.    

“While the second quarter of 2013 did not show improved operating performance, it was a transformational quarter for the Company. The major award from HSBC and other positive business developments have placed the Company in a very strong position for future growth,” commented Scott N. Greenberg, Chief Executive Officer of GP Strategies.  “In addition to the HSBC contract that is only partially reflected in backlog, we are pleased with the success we’re having diversifying our business internationally.  Other global clients are looking to GP Strategies for increased levels of support. These are exciting times for GP Strategies, and we look forward to the future.”

Balance Sheet and Cash Flow Highlights

As of June 30, 2013, the Company had cash and cash equivalents of $5.2 million compared to $7.8 million as of December 31, 2012. The Company had no long-term debt outstanding as of June 30, 2013 and had $6.8 million of short-term borrowings under its $50 million line of credit as of June 30, 2013. Cash provided by operating activities was $5.5 million for the six months ended June 30, 2013 compared to $4.4 million for the same period in 2012.

Investor Call

The Company has scheduled an investor conference call for 10:00 a.m. ET on August 1, 2013. 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 800-754-1336 or 212-231-2932, using conference ID number 21661786. A telephone replay of the call will also be available beginning at 12:00 p.m. on August 1^st, until 12:00 p.m. on August 15^th. To listen to the replay, dial 800-633-8284 or 402-977-9140, using conference ID number 21661786.

Presentation of Non-GAAP Information

This press release contains non-GAAP financial measures, including EBITDA (earnings before interest, income taxes, depreciation and amortization) and backlog. The Company believes that EBITDA 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 EBITDA to the most comparable GAAP equivalent, see the Non-GAAP Reconciliation – EBITDA, along with related footnotes, below. The Company calculates backlog as the total value of executed contracts (including subcontracts and purchase orders) minus the revenue recognized under those contracts through the backlog date. Although the conversion of backlog to revenue is subject to risks and uncertainties, the Company believes that backlog is a useful indicator regarding the future revenue of the Company from existing contracts. However, there is no standard system for compiling and calculating backlog, so our backlog may not be comparable with backlog measures reported by other companies. There is no GAAP financial measure comparable to backlog, therefore, a quantitative reconciliation of backlog is not provided.

About GP Strategies

GP Strategies Corporation (NYSE: GPX) is a global performance improvement solutions provider of 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.

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SOURCE GP Strategies Corporation