GSE Systems Announces Fourth Quarter and Full Year 2016 Financial Results
FULL YEAR 2016 OVERVIEW
- Revenue totaled $53.1 million, compared to $56.8 million in 2015.
- Net income increased to $1.4 million, or $0.08 per diluted share, from a net loss of $4.7 million, or $(0.26) per diluted share, in 2015.
- Adjusted net income1 expanded to $3.6 million, or $0.20 per diluted share, from approximately breakeven, or $0.00 per diluted share, in 2015.
- Adjusted EBITDA1 rose 231% to $4.6 million from $1.4 million in 2015.
- Cash flow from operations grew to $10.2 million from $1.0 million in 2015.
- New orders increased to $79.5 million from $56.0 million in 2015.
Q4 2016 OVERVIEW
- Revenue totaled $13.3 million, compared to $14.3 million in Q4 2015.
- Net income was $1.0 million, or $0.05 per diluted share, compared to $1.0 million, or $0.06 per diluted share, in Q4 2015.
- Adjusted net income increased 43% to $1.9 million, or $0.10 per diluted share, from $1.3 million, or $0.07 per diluted share, in Q4 2015.
- Adjusted EBITDA grew 17% to $2.1 million from $1.8 million in Q4 2015.
- New orders rose to $16.8 million from $13.9 million in Q4 2015, driven by a major contract expansion with EDF Energy.
At December 31, 2016
- Cash and equivalents of $22.9 million, including $1.1 million of restricted cash, up 56% from $14.6 million, including $3.6 million of restricted cash, at December 31, 2015.
- Working capital of $12.0 million and current ratio of 1.4x.
- $0 long-term debt.
- Backlog totaled $73.2 million, up 53% compared to year-end 2015 backlog of $47.9 million.
1 Refer to the non-GAAP reconciliation tables at the end of this press release for a definition of “adjusted EBITDA” and “adjusted net income”.
SYKESVILLE, MD – March 9, 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 fourth quarter (“Q4”) and full year ended December 31, 2016.
Kyle J. Loudermilk, GSE’s President and Chief Executive Officer, said, “GSE closed an outstanding 2016 with a solid fourth quarter, successfully delivering on our commitments to our customers and our shareholders. We finished the year with a significantly higher cash balance of $22.9 million, reflecting GSE’s improved operations and strong cash flow generation. Our strengthened financial position enhances our ability to pursue a number of exciting organic and inorganic growth opportunities that we have identified. Our focus on organic growth is most recently illustrated by our major contract expansion in Q4 2016 with EDF Energy to upgrade the control room station simulation system at their Torness nuclear power plant in the United Kingdom. As a result of this and other major new orders we won in 2016, we finished the year with near-record backlog. 2016 was a transformational year for GSE in many ways. In 2017, we aim to build on our success to grow revenue and further enhance shareholder value.”
About GSE Systems, Inc.
GSE Systems, Inc. provides professional and technical engineering, staffing services and simulation software to clients in the power and process industries. Our solutions enhance customer safety and performance across training, design & licensing, engineering, and operations and maintenance. The Company has over four decades of experience, more than 1,100 installations, and customers in over 50 countries spanning the globe. GSE Systems is headquartered in Sykesville (Baltimore), Maryland, with offices in Columbia, Maryland, Montrose, Colorado, 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.