GSE Systems Announces 2015 Second Quarter Financial Results
Q2 2015 OVERVIEW
- Revenue of $13.6 million in Q2 2015, including $5.4 million of revenue from the acquisition of Hyperspring, LLC, completed in November 2014, compared to $8.3 million in Q2 2014.
- Operating loss of $1.3 million in Q2 2015 compared to $2.0 million in Q2 2014. Operating loss for Q2 2015 includes a loss of $513,000 from the change in fair value of contingent consideration related to acquisitions as compared to a loss of $20,000 from the change in fair value of contingent consideration related to acquisitions in Q2 2014.
- Net loss of $1.5 million, or $0.08 per diluted share, compared to a net loss of $2.0 million, or $0.11 per diluted share, in Q2 2014.
- Performance Improvement Solutions orders totaled $12.7 million, compared to $11.1 million in Q1 2015 and $9.6 million in Q2 2014. Staff Augmentation orders totaled $6.1 million, compared to $7.0 million in Q1 2015.
At June 30, 2015
- Total cash and equivalents of $9.8 million, or $0.55 per diluted share, excluding $4.5 million of restricted cash.
- Working capital of $9.9 million.
- $0 long-term debt.
- Backlog of $57.5 million, up from $52.4 million at the end of Q1 2015 and from $48.4 million at the end of Q4 2014.
Sykesville, MD – August 13, 2015 – GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), a global energy industry performance improvement company, today announced financial results for the second quarter (“Q2”) ended June 30, 2015. Results for Q2 2015 include the results of Hyperspring, LLC (“Hyperspring”), which was acquired on November 14, 2014.
With the acquisition of Hyperspring, GSE 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.
Kyle J. Loudermilk, Chief Executive Officer of GSE, said, “I am excited to be joining the Company at this critical juncture in its history, and see a compelling opportunity to create sustainable incremental value for stockholders. However, our recent financial performance has disappointed our stockholders, which we clearly need to address as that is unacceptable. In the near future, we will be completing a review of our global operations, identifying those areas in which we can generate efficiencies and areas where growth can be attained, to return us to profitability. Going forward, we will continue to leverage the Company’s core strengths—its talented workforce, unique technologies, diverse client base and strong balance sheet—in order to grow our Performance Improvement Solutions and Staff Augmentation segments. At the same time, we expect to explore growth opportunities in adjacent markets and, over time, transform our business model towards a greater mix of recurring revenues.”
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.