GSE Systems Announces First Quarter 2016 Financial Results
Q1 2016 OVERVIEW
- Revenue totaled $13.0 million, compared to $14.0 million in Q1 2015.
- Gross profit rose 10% to $3.6 million, or 27.9% of revenue, from $3.3 million, or 23.5% of revenue, in Q1 2015.
- EBITDA totaled $0.4 million, up from an EBITDA loss of $0.2 million in Q1 2015.
- Adjusted EBITDA increased to $0.8 million from approximately breakeven adjusted EBITDA in Q1 2015.
- Net income equaled $0.1 million, or $0.01 per diluted share, compared to a net loss of $0.5 million, or $(0.03) per diluted share, in Q1 2015.
- Backlog expanded significantly with the sale of three full scope nuclear simulator systems in March 2016.
- Orders rose approximately 120% to $39.8 million from $18.1 million in Q1 2015.
- Continued to invest in resources for growth, including the appointment of Sean Fuller as Senior Vice President of Sales in March 2016.
At March 31, 2016
- Cash and equivalents of $11.2 million, or $0.62 per diluted share, excluding $3.6 million of restricted cash.
- Working capital of $9.8 million and current ratio of 1.5x.
- $0 long-term debt.
- Book to Bill of 3.0x.
- Backlog increased 56% to $74.5 million, the highest level in company history, from $47.9 million at December 31, 2015.
Sykesville, MD – May 16, 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 first quarter (“Q1”) ended March 31, 2016.
Kyle J. Loudermilk, GSE’s President and Chief Executive Officer, said, “We are pleased to report GSE’s second consecutive quarter of positive adjusted EBITDA, operating income and net earnings, in spite of having an extraordinary charge impacting results. In Q1 2016, GSE recorded higher gross margins and lower operating expenses, reflecting our efforts to reduce costs and focus on project profitability. GSE’s backlog expanded significantly during the quarter, reaching a record $75 million at the end of March, driven by the sale of three full scope nuclear simulator systems to a longstanding client. We are optimistic that our operating performance will continue to improve over 2015 results as growth initiatives take hold and backlog converts to sales. While quarter-to-quarter variability can be expected, we expect to deliver positive adjusted EBITDA for full year 2016. We are in the process of finalizing our strategic growth plan and I remain enthusiastic about the opportunities not only in our existing businesses, but also in adjacent markets. Our strong balance sheet provides us with financial flexibility to pursue growth initiatives that we believe will drive 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.