GSE Systems Announces Second Quarter 2016 Financial Results
Q2 2016 OVERVIEW
- Revenue totaled $12.4 million, compared to $13.7 million in Q2 2015.
- Gross profit rose 24% to $3.6 million, or 29% of revenue, from $2.9 million, or 21% of revenue, in Q2 2015.
- Selling, general & administrative decreased 27% to $2.9 million, or 23% of revenue, from $4.0 million, or 29% of revenue, in Q2 2015.
- EBITDA totaled $0.4 million, up from an EBITDA loss of $1.2 million in Q2 2015.
- Adjusted EBITDA increased to $1.1 million from an adjusted EBITDA loss of $0.5 million in Q2 2015.
- Net income equaled $0.1 million, or $0.01 per diluted share, compared to a net loss of $1.5 million, or $(0.08) per diluted share, in Q2 2015.
- Adjusted net income, excluding the impact of restructuring charges, loss from the change in fair value of contingent consideration and stock-based compensation expense, increased to $0.9 million, or $0.05 per basic and diluted share, from an adjusted net loss of $0.8 million, or $(0.05) per basic and diluted share, in Q2 2015.
At June 30, 2016
- Cash and equivalents of $14.3 million, or $0.78 per diluted share, including $3.4 million of restricted cash.
- Working capital of $10.7 million and current ratio of 1.5x.
- $0 long-term debt.
- Backlog totaled $71.1 million, up 48% compared to year-end 2015 backlog of $47.9 million.
- Hired Emmett Pepe as GSE’s new Chief Financial Officer in July 2016.
- Appointed Jim Stanker to the Company’s Board of Directors and Audit Committee in August 2016.
- Chris Sorrells assumed the Chief Operating Officer role, on a permanent basis, in August 2016.
SYKESVILLE, MD – August 15, 2016 – GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), the world leader in real-time high-fidelity simulation systems and training solutions to the power and process industries, today announced financial results for the second quarter (“Q2”) ended June 30, 2016.
Kyle J. Loudermilk, GSE’s President and Chief Executive Officer, said, “We are pleased to report GSE’s fourth consecutive quarter of positive adjusted EBITDA. In Q2 2016, GSE recorded significantly higher gross margins and lower operating expenses, reflecting our continuing efforts to reduce costs and focus on project profitability. We have reduced annualized operating expenses by more than $4 million since I joined GSE approximately one year ago. We also have continued to invest in resources for growth, hiring key leadership positions in the areas of technology, finance and operations. On that note, we are pleased to announce that Chris Sorrells, who has played an instrumental role in GSE’s operational turnaround, has agreed to assume the COO role on a permanent basis. Furthermore, we strengthened our financial and accounting leadership with the appointment of Emmett Pepe as our new CFO and Jim Stanker as a new member of our Board or Directors and Audit Committee. With the benefit of an enhanced leadership team and streamlined operations, we are now firmly focused on implementing our strategy to revitalize GSE’s growth.”