GSE Systems announces first quarter 2017 financial results
Sykesville, MD – May 15, 2017 – 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, 2017.
Q1 2017 OVERVIEW
- Revenue increased 25.9% to $16.3 million from $13.0 million in Q1 2016, the highest quarterly revenue in over 10 years.
- Gross profit rose 13.7% to $4.1 million from $3.6 million in Q1 2016.
- Net loss totaled $0.3 million, or $(0.01) per diluted share, compared to net income of $0.1 million, or $0.01 per diluted share, in Q1 2016.
- Adjusted net income1 equaled $0.6 million, or $0.03 per diluted share, compared to $0.5 million, or $0.03 per diluted share, in Q1 2016; sixth straight quarter of positive adjusted net income.
- Adjusted EBITDA1 totaled $0.8 million in both Q1 2017 and Q1 2016.
- New orders topped $19.8 million, the second-highest quarterly total in 7 years.
- Cash flow from operations exceeded $1.3 million compared to $1.6 million in Q1 2016.
At March 31, 2017
- Cash and equivalents of $22.8 million, including $1.1 million of restricted cash, compared to $22.9 million, including $1.1 million of restricted cash, at December 31, 2016.
- Working capital of $14.0 million and current ratio of 1.5x.
- No outstanding long-term debt.
- Backlog of $79.6 million, compared to $73.2 million at December 31, 2016.
1Refer to the non-GAAP reconciliation tables at the end of this press release for a definition of “adjusted EBITDA” and “adjusted net income”.
Kyle J. Loudermilk, GSE’s President and Chief Executive Officer, said, “In Q1 2017, GSE achieved 26% year-overyear revenue growth, driven by particularly strong demand for our Nuclear Industry Training and Consulting staffing services and the advancement of three major nuclear simulation projects in our Performance Improvement Solutions division. Our Nuclear Industry Training and Consulting segment achieved record quarterly orders, revenue, and gross profit, while ending Q1 2017 with its highest backlog ever. Our reinvigorated sales team generated total new orders exceeding $19.8 million this quarter and, as we execute on our near-record backlog, we believe GSE is well positioned for revenue growth in 2017. Armed with $22.8 million in cash at the end of Q1 2017, we are seeking and carefully evaluating select inorganic opportunities that can enhance our growth trajectory, enhance organic growth opportunities, and in-turn create additional 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.