ELKRIDGE, Md., May 3, 2012 /PRNewswire/ — 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.

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SOURCE GP Strategies Corporation