GSE Systems Announces 2015 Fourth Quarter Financial Results
Q4 2015 OVERVIEW
- Revenue increased by 12% to $14.2 million from $12.7 million in Q4 2014. Gross profit rose by 29% to $4.5 million, or 31.4% of revenue, from $3.5 million, or 27.3% of revenue, in Q4 2014.
- Selling, general and administrative expenses declined by 27%, a $1.2 million improvement from Q4 2014.
- Operating income totaled $1.0 million, a significant turnaround compared to an operating loss of $1.5 million in Q4 2014 and GSE’s first quarter of positive operating income since Q3 2012.
- Adjusted EBITDA increased to $1.5 million, versus an adjusted EBITDA loss of $0.7 million in Q4 2014.
- Net income equaled $0.9 million, or $0.05 per diluted share, compared to a net loss of $1.4 million, or $(0.08) per diluted share, in Q4 2014.
- Company-wide cost-reduction program largely implemented; continued to invest in resources for growth, including the appointment of Dr. Bahram Meyssami as Chief Technology Officer in December 2015.
At December 31, 2015
- Cash and equivalents of $14.6 million, or $0.82 per diluted share, including $3.6 million of restricted cash.
- Working capital of $8.7 million and current ratio of 1.4x.
- $0 long-term debt.
- Backlog of $47.9 million as of December 31, 2015, compared to $49.7 million at December 31, 2014.
Sykesville, MD – March 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 fourth quarter (“Q4”) ended December 31, 2015.
Kyle J. Loudermilk, GSE’s President and Chief Executive Officer, said, “We concluded 2015 on a very strong note, recording GSE’s first quarter of positive operating income and net earnings since the third quarter of 2012. Our Q4 2015 financial results directly reflect our team’s efforts to reduce costs, improve business processes and enhance productivity levels across the entire company. We have made significant progress executing our turnaround plan, yet still have more to do to create a best in class technology enabled software and service company focused on primarily the global nuclear power industry.”
Mr. Loudermilk continued, “Now that we have an appropriate, streamlined cost structure in place, and have staffed most of our critical senior leadership positions, our focus turns to the next phase of our strategic plan: reinvigorating GSE’s growth. As we move forward, we are optimistic that we will continue to add critical hires where needed to affect our growth, including growing our backlog. I remain optimistic about the business opportunities in front of us, not only in our existing businesses, but also in adjacent markets. In 2016 we expect to provide additional details on new elements of our growth strategy, including initiatives that support a more diversified, recurring revenue base. I am confident that as we continue to successfully execute our strategy, we will increase cash flow, improve GSE’s strong balance sheet, grow our backlog, and enhance shareholder value.”
About GSE Systems, Inc.
GSE is a world leader in real-time high-fidelity simulation, providing a wide range of simulation, training, consulting 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 Navarre, Florida 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.