GSE Systems Announces 2014 Fourth Quarter Financial Results
Q4 2014 OVERVIEW
- Revenue rose 6.9% to $13.1 million from $12.3 million in Q4 2013.
- Gross profit of $4.1 million, or 30.9% of revenue, compared to gross profit of $3.6 million, or 29.5% of revenue, in Q4 2013.
- Net loss of $0.8 million, or $0.05 per diluted share, compared to a net loss of $0.2 million, or $0.01 per diluted share, in Q4 2013.
- Net loss includes $0.5 million of pre-tax charges related to restructuring and Hyperspring acquisition costs.
At December 31, 2014
- Total cash and equivalents of $13.6 million, or $0.76 per diluted share, excluding $4.2 million of restricted cash.
- Working capital of $11.5 million.
- $0 long-term debt.
- Backlog of $48.4 million, up 6% from $45.7 million at end of Q3 2014.
Sykesville, MD – March 19, 2015 – GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), a global energy industry performance improvement company, today announced financial results for the fourth quarter (“Q4”) and year ended December 31, 2014. Results for Q4 2014 and full year 2014 include the results of Hyperspring, LLC (“Hyperspring”) from the date of its acquisition on November 14, 2014.
With the acquisition of Hyperspring, the Company has commenced reporting selected financial results for two business segments: Staff Augmentation, which provides personnel to fulfill staff positions on a short-term basis to energy industry customers; and Performance Improvement Solutions, which provides simulation, engineering and training solutions and services to the nuclear and fossil fuel power industry and to the chemical and petrochemical industries. Hyperspring’s results are included in the Staff Augmentation segment.
Jim Eberle, Chief Executive Officer of GSE, said, “In Q4 2014, we made significant strides in positioning GSE for the future with our acquisition of Hyperspring, our investment in IntelliQlik, LLC, and the restructuring of our U.S. and Swedish operations. Hyperspring’s staff augmentation business contributed $2.3 million to our consolidated Q4 revenue and in 2015 we will be focusing on expanding Hyperspring’s U.S. nuclear customer base and diversifying into the fossil power industry. IntelliQlik continues its development of a next generation, cloud-based software platform for online learning and learning management for all energy sectors and remains on target for a launch in late 2015. We have restructured our Swedish operations due to a reduced level of simulation business in Japan post-Fukushima and in Europe with the continent’s overall economic slowdown. In 2015 our Performance Improvement Solutions business will be investing in additional business development and operations personnel for solutions aimed specifically at the chemical and petrochemical industries. Our balance sheet remains strong, with approximately $13.6 million of cash and equivalents at quarter-end and no long-term debt, providing us with flexibility to selectively pursue additional growth opportunities as they arise.”
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.