ELKRIDGE,
Md., Nov. 3, 2011-- GP Strategies Corporation (NYSE: GPX),
a global performance improvement solutions provider of sales and technical
training, e-Learning solutions, management consulting and engineering services
through its principal operating subsidiary General Physics Corporation, today
reported financial results for the quarter ended September 30, 2011.
Overview of Third Quarter 2011 Results:
- Revenue
of $88.9 million for third quarter of 2011, up $22.9 million or 35%
compared to $66.1 million for third quarter of 2010
- Net
income of $4.6 million for third quarter of 2011 compared to $3.1 million
for third quarter of 2010
- Earnings
of $0.24 per diluted share for third quarter of 2011 compared to earnings
of $0.17 per diluted share for third quarter of 2010
- EBITDA
of $9.4 million for third quarter of 2011, up $2.8 million or 43% compared
to EBITDA of $6.6 million for third quarter of 2010
The
Company earned $88.9 million of revenue for the quarter ended September 30,
2011, an increase of $22.9 million or 35%, compared to the same period in 2010.
The RWD consulting business, which was acquired from RWD Technologies in April
2011, contributed $19.6 million of revenue and $2.8 million of gross profit, or
14% gross margin, during the third quarter of 2011. In addition, other
recently completed acquisitions contributed approximately $4.6 million of
revenue during the third quarter of 2011. EBITDA increased $2.8 million or 43%
from $6.6 million, or 10.0% of revenue, during the third quarter of 2010 to
$9.4 million, or 10.6% of revenue, during the third quarter of 2011.
"I
am pleased to report that we continued to achieve extremely strong financial
results in the third quarter of 2011," said Scott N. Greenberg, Chief
Executive Officer of GP Strategies. "Our acquisitions enabled us to
achieve record performance in both revenue and gross profit. Our core business,
complemented by our acquisitions, continues to show positive long-term
prospects for growth. As we continue to strengthen our Company's unique
brand in a highly fragmented world market, we should be able to take advantage
of larger global opportunities."
Balance Sheet and Cash Flow Highlights
As
of September 30, 2011, the Company had cash and cash equivalents of $5.4
million, short-term borrowings outstanding of $6.2 million and available
borrowings under its revolving credit facility of $28.4 million. Cash provided
by operating activities was $5.8 million for the quarter ended September 30,
2011 and $10.6 million for the nine months ended September 30, 2011.
Investor Call
The
Company has scheduled an investor conference call for 10:00 a.m. ET on
Thursday, November 3, 2011. 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 800-954-0593 or 212-231-2909, using conference
ID number 21544096. A telephone replay of the call will also be available beginning
at 12:00 p.m. on November 3rd, until 12:00 p.m. on November 17th. To listen to
the replay, dial 800-633-8284 or 402-977-9140, using conference ID number
21544096.
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 Corporation
GP
Strategies, whose principal operating subsidiary is General Physics Corporation
(GP), is a NYSE-listed company (GPX). GP is a global performance improvement
solutions provider of sales and technical training, e-Learning solutions,
management consulting and engineering services. GP's 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.gpworldwide.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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