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GSE Systems Announces First Quarter 2018 Financial Results

May 15, 2018 | 2018-news

COLUMBIA, MD – May 15, 2018 – GSE Systems, Inc. (GSE or the Company) (Nasdaq: GVP), a leader in real-time high-fidelity simulation systems, training/consulting and technology-enabled engineering solutions to the power and process industries, today announced financial results for the first quarter (Q1) ended March 31, 2018.


  • Acquired True North Consulting, LLC (“True North”) on May 11, 2018 for $9.75 million in cash. GSE projects that the acquired business will generate, on an annualized basis, revenue of over $10 million and, after identified synergies are implemented, adjusted EBITDA of approximately $2 million.
  • Entered into an amended and restated credit agreement with Citizens Bank, consisting of a five-year $5 million revolving line of credit and a five-year $25 million delayed draw term loan facility to fund the acquisition of True North and future acquisitions.  GSE drew down approximately $10 million to fund the acquisition of True North.


  • Revenue increased 40.1% to $22.9 million from $16.3 million in Q1 2017.
  • Gross profit rose 18.8% to $4.9 million from $4.1 million in Q1 2017.
  • Net loss totaled $1.5 million, or $(0.08) per diluted share, compared to $0.3 million, or $(0.01) per diluted share, in Q1 2017.
  • Adjusted net income1 equaled $0.2 million, or $0.01 per diluted share, compared to $0.8 million, or $0.04 per diluted share, in Q1 201
  • Adjusted EBITDA1 totaled $0.8 million, compared to $1.1 million in Q1 2017.
  • New orders rose to $24.7 million from $19.8 million in Q1 2017.

At March 31, 2018

  • Cash and equivalents of $12.4 million, including $0.6 million of restricted cash, compared to $20.1 million, including $1.0 million of restricted cash, at December 31, 2017.
  • Working capital of $11.6 million and current ratio of 1.5x.
  • Backlog totaled $72.4 million, compared to $71.4 million at December 31, 2017.

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”.

Kyle J. Loudermilk, GSE’s President and Chief Executive Officer, said, “GSE had a solid start to 2018, successfully delivering on our commitments to our customers and our shareholders. We efficiently executed on our backlog, resulting in year over year revenue growth of approximately 40% in the first quarter. We are growing our footprint as a provider of highly skilled professionals and know-how to the nuclear power industry with the recent addition of True North Consulting. Our strong balance sheet, along with our acquisition credit facility, positions us well to advance our strategy of leveraging GSE as an exciting platform for rolling-up fractured vendor ecosystems serving the nuclear power industry. We have identified and continue to work towards capitalizing on a number of exciting organic and inorganic growth opportunities.  2018 is off to a solid start, and we aim to build on our success to grow revenue and further enhance shareholder value.”

Download the full release: GSE Earnings Release Q1 2018

About GSE Systems, Inc.

GSE Systems, Inc. is a leading provider of engineering, expert staffing and simulation software to clients in the power and process industries.  GSE’s products and services are tailored to help customers achieve performance excellence in design, training, compliance, and operations. 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 Maryland, with offices in Alabama, Florida, Colorado, Texas, and Beijing, China.  Information about GSE Systems is available at

Forward-Looking Statements

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.

Company Contact
Kyle Loudermilk
Chief Executive Officer
GSE Systems, Inc.
(410) 970-7800

The Equity Group Inc.
Kalle Ahl, CFA
(212) 836-9614

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