GSE Systems Announces 2014 Third Quarter Financial Results – Acquires Hyperspring LLC and Invests in IntelliQlik LLC
Q3 2014 OVERVIEW
- Revenue of $7.8 million compared to $11.9 million in Q3 2013.
- Gross profit of $2.5 million, or 31.4% of revenues, compared to gross profit of $3.1 million, or 25.9% of revenues, in Q3 2013.
- Net loss of $1.9 million, or $0.11 per diluted share, compared to a net loss of $1.0 million, or $0.06 per diluted share, in Q3 2013.
At September 30, 2014
- Total cash and equivalents of $16.0 million, or $0.90 per diluted share.
- Working capital of $17.0 million.
- $0 long-term debt.
- Backlog of $45.7 million, up 26.6% compared to the end of Q2 2014.
Sykesville, MD – November 17, 2014 – GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), a global energy services solutions provider, today announced financial results for the third quarter (“Q3”) ended September 30, 2014. The Company also announced the acquisition of Hyperspring, LLC and investment in IntelliQlik, LLC through its operating subsidiary, GSE Power Systems, Inc.
Jim Eberle, Chief Executive Officer of GSE, said, “Our Q3 2014 results reflected the completion of the Slovakia simulator project in April 2014, the completion of several large projects in 2013, and continuing delays in capital expenditures by fossil fuel companies, especially with respect to coal-fired power plants. However, we are very encouraged by our strengthening backlog, which increased by 27% from June 30, 2014 to $45.7 million at September 30, 2014. During Q3 2014, we generated $17.6 million of new business across a broad range of sectors and geographies, bringing our ninemonth year-to-date order total to $33.5 million. These newly-awarded Q3 2014 projects will contribute to our results starting in Q4 2014 and continuing through 2015. Our balance sheet remains strong, with approximately $16 million of cash and equivalents at quarter-end and no long-term debt. We believe that we are well positioned for a resumption in growth, especially as industry capital expenditure programs return to more normalized levels.”
About GSE Systems, Inc.
GSE is a world leader in real-time high-fidelity simulation, providing a wide range of simulation, training and engineering solutions to the power and process industries. Its comprehensive and modular solutions help customers achieve performance excellence in design, training and operations. GSE’s products and services are tailored to meet specific client requirements such as scope, budget and timeline. The Company has over four decades of experience, more than 1,100 installations, and hundreds of customers in over 50 countries spanning the globe. GSE Systems is headquartered in Sykesville (Baltimore), Maryland, with offices in St. Marys, Georgia; Huntsville, Alabama; Chennai, India; Nyköping, Sweden; Stockton-on-Tees, UK; Glasgow, UK; and Beijing, China. Information about GSE Systems is available at www.gses.com.
We make statements in this press release that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. These statements reflect our current expectations concerning future events and results. We use words such as “expect,” “intend,” “believe,” “may,” “will,” “should,” “could,” “anticipates,” and similar expressions to identify forward-looking statements, but their absence does not mean a statement is not forward-looking. 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. We do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.