2018 Financial Results
GSE Systems, Inc. (“GSE” or “the Company”) (Nasdaq: GVP), a leading provider of engineering, expert staffing, and simulation software to clients in the power and process industries, today announced its financial results for the fourth quarter (“Q4”) and fiscal year ended December 31, 2018.
Kyle J. Loudermilk, GSE’s President and Chief Executive Officer, said, “Our adjusted EBITDA in the fourth quarter of 2018 grew by 46.7% year-over-year to $2.8 million, one of the best quarterly outcomes in our history, while GSE’s full year 2018 adjusted EBITDA rose 31.6% year-over-year to $7.4 million, also one of the best annual outcomes in more than two decades.”
View the full press release here.
GSE Systems Corporate Update
GSE Systems has acquired two major companies that will greatly enhance its portfolio of specialized engineering services to the nuclear market.
True North Consulting is an engineering company founded in 1999 in Montrose, Colorado. The company employs roughly 60 professionals with expertise in areas such as in-service testing for engineering programs focused on ASME OM code including Appendix J, balance of plant programs, thermal performance, in-service inspection for specialty engineering including ASME Section XI as well as software solution.
DP Engineering adds approximately 110 full-time professionals with expertise in various fields such as mechanical design; civil/structural design; electrical, instrumentation and controls design; digital controls/cyber security; and fire protection. They primarily work under master service agreements as the Engineer of Choice for leading nuclear utility operators.
These acquisitions establish GSE as the go-to provider of specialized technical engineering and expert staffing solutions in the nuclear power industry. GSE can now deploy over 500 highly specialized employees to serve the complex needs of the nuclear power industry during a time when it is facing acute shortages of technical talent and expertise.
Our strategy to create value for our customers, employees and shareholders through consolidating a fragmented ecosystem of vendors serving the nuclear power industry. In addition to broadening GSE’s engineering services offering, these acquisitions expand and deepen our relationships with several of the largest U.S. nuclear energy providers, while improving GSE’s overall operating margin profile. As one company, we will add greater value to our customers than could offer independently.
Contact us to learn more.
GSE Presents at CONTE 2019
The Conference on Nuclear Training and Education (CONTE) is a biennial international forum with an emphasis on the future of the nuclear industry and is aimed at training, education, and workforce development. GSE and Hyperspring gave a total of three presentations at the conference addressing trends and issues in nuclear training.
Mike Battaglia presented a recap of the project to build three new simulators for Southern Nuclear. These are copies of the current simulators at the Hatch, Farley and Vogtle nuclear plants. The presentation focused on the driving forces behind Southern Nuclear’s investment, project specific details and lessons learned. SNC’s stated goals included:
- improving the quality of life for workers through less shift work
- avoiding maintenance related scheduling issues
- having all three sites on a common technology platform
- updating to more modern equipment such as new modular I/O, and GSE’s PSA-HD Severe Accident Simulation model.
Battaglia went into depth talking about reducing heat load, reducing power consumption, improving serviceability of panel instrumentation, and reducing maintenance. associated with GSE’s new I/O (input/output) system offering. Check out more information in our blog.
Michael Battaglia presenting at CONTE 2019
Hyperspring’s Rick Shindel gave a presentation on implementation of the BWR Owners Group Emergency Operating Procedures and Severe Accident Guidelines, Revision 4. Rick provided guidance to assist utilities in implementing the change for operating crew procedure verification and validation, and training.This is a service offered by Hyperspring.
Shindel’s presentation consisted of topics such as the execution of the changes required to implement revision 4 of the EP/SAG strategies demand of a concise and integrated project plan. Other topics were implementation of Revision 4 Change, integration being key, the Role of Project Managers, the Role of Subject Matter Experts, and the Role of training.
Lastly, Gill Grady gave a presentation on the gaining value from virtual control panel simulators and explored a variety of use cases across both industry and academia. Grady’s presentation also introduced GSE’s SmartScenario product for automating the role of instructors and other operators to enable self-paced training and introducing serious gaming concepts for the next generation of operators.
Throughout the three presentations, GSE was able to discuss various ways to help nuclear companies be more effective in training and compliance.
GSE Presents New Onyx for RELAP and Controls™ at Conference
At the recent Power Plant Simulation Conference run by the Society for Computer Simulation, GSE’s Michael Battaglia presented the Onyx–RELAP™and Onyx Control™ platforms.
INL’s RELAP-3D Code is a premier safety analysis tool used by research organizations, plant engineering and education. While the system is robust, it can also cumbersome to work with. GSE’s Onyx platform helps make the RELAP software more robust by combining it with our state-of-the-art real-time simulator technology.
GSE’s Onyx-RELAP™ platform allows users to import existing RELAP input files and view internal parameters using INL naming convention. Then the user can interact with the model by monitoring and modifying the parameters during the model’s execution. The ability to pause and step through a transient, speed up or slow down the execution and debug RELAP crashes such as view flow or pressure oscillations during execution can greatly streamline testing. This is the perfect interface, particularly for new users of RELAP.
Battaglia also presented the Onyx-Control platform. This platform uses the same Onyx™ UI to allow users to design, simulate, debug and tune control systems. Onyx-Control™ allows you to use control sheets drawn using object-oriented drag and drop interfaces. Also, the I/O list and equipment is integrated with control sheets. The Onyx-Control™ system helps control system engineers find and solve design issues early in the development stage of a project, thereby minimizing rework due to test failures. The design helped simplify communication and collaboration between teams.
To view the presentation given, click here
These products are now available for your use. For more information, contact GSE Systems’ Michael Battaglia at (410)-970-7863 or at email@example.com.
JADE™ 5.0 Now Available
JADE™ 5.0 is available for our customers. This new release includes several productivity enhancements including:
JTopmeret® on-line tuning
Users can now modify design values directly at run-time in order to tune a system more efficiently. For example, the design valve position can be modified until the desired performance is achieved then that value can be transferred directly to the parameters for the valve.
JStation™ and JADE™ Operator Station (JOS) will no longer close when the connection to the simulator is lost. Instead, they will attempt to reconnect periodically and changes made to JOS® or JStation™ files can be reloaded without restarting the program.
Added 64 Bit Support
JOS® is able to store a larger number of drawings and objects in memory.
Contact us for more information.
DP Engineering Update and Insights
DP Engineering continues to provide a broad set of engineering services to the nuclear industry and now as part of the GSE family of companies, can offer our clients access to additional specialty engineering service for Engineering Programs, Thermal Performance™ and Balance of Plant Programs and supporting software serivces.
We are proud that during the summer of 2018 Talen Energy issued a RFP for competitive rebid of their current Engineer of Choice (EOC) contract. DPE was successful in maintaining their EOC status with Talen and was awarded a Blanket Contract through 2020.
What’s next? Nearly all U.S. nuclear utilities have extended or are in the process of extending their reactors’ operating licenses to 60 years and some are beginning to seek second license extension, 80-year operating licenses. As a result of obsolescence, lack of vendor support and spare parts, and decreasing reliability, the need to upgrade their I&C systems to digital is growing in importance. Many promising next-generation advanced reactor designs such as the Westinghouse AP-1000 and SMR’s are just over the horizon, which will come with all-digital I&C systems.
In the US, the average age of a nuclear power plant is 36 years, modernization is key for not only these individual units, but the entire US nuclear fleet as well. NRC and industry groups (NEI and EPRI) are working on developing or enhancing guidance for Safety and Non-safety digital upgrades. Safety-related digital upgrades are getting a lot of NRC attention. Several vendors are offering digital upgrades for individual components and for full system replacements.
Several nuclear fleets have announced that the will be embarking on full scale digital system upgrades. These digital upgrades will last 10 – 25 years per fleet and will range from $300 – $500 M per unit.
It is DP Engineering’s intent to position ourselves to be the preferred provider of engineering service these fleets for full scale digital system upgrades
To learn more about DP Engineering, visit their website.
True North Consulting Update And Insight
True North Consulting (TNC) continues to provide specialty engineering services to the power industry. Through its Specialty Engineer of Choice (SEOC) for engineering programs, numerous utilities are taking advantage of TNC’s unique capabilities and experience in Engineering Programs development, implementation, maintenance and assessment.
In 2018 TNC was awarded a significant project to implement Data Verification & Reconciliation solutions for a fleet of reactors for a major US Utility. The models built by TNC using Belsim’s VALI software will enable the utility to perform calculations that will reduce uncertainty and validate plant instrumentation readings as sensors age, helping plants make better operating decisions to optimize performance. In addition to analysis of instruments for critical systems, these enhanced plant models are useful for a variety of purposes, such as optimizing preventative maintenance and testing.
TNC also continues to enhance the capabilities of its Engineering Programs EP-Plus ENGAGE™ and Thermal Performance Plus™ software packages that help industry monitor and manage their engineering and thermal performance programs.
To learn more about True North Consulting, visit their website.
GSE’s EnVision OnDemand™, cloud-based learning platform is gaining momentum in the industry, having been adopted by several large Oil and Gas companies. Whether teaching new hires the fundamental building blocks they need for their career, or teaching seasoned operators how to effectively troubleshoot their process, EnVision™ simulators provide anytime, anywhere access to effective learning content.
Our unique combination of eLearning Tutorials, Generic Simulations and Critical Thinking Exercises, enable self-paced training with objective feedback on the student’s understanding of cause and effect.
The new subscription program makes courses even more affordable. When compared to custom simulators, EnVision™ provides 80% of the learning for 20% of the cost.
Learn More at www.gses.com/envision-on-demand/
GSE’s Absolute Consulting, Inc. Update and Insight
Absolute Consulting achieved some significant events in 2018 including the award of a multi-million contract for Procedure Upgrade Project (PUP) for a major southern US nuclear plant. We are implementing procedures which are technically accurate, have detail and guidance that can be followed by any qualified user, are formatted and human factored consistent with fleet/industry standards via a Fleet Template. At the completion of this initiative there should remain the necessary staffing, processes, and tools for procedure maintenance to ensure continuous improvement in the area of procedure content and use.
Absolute Consulting was also awarded a contract to provide technical trainers and procedure writers in support the DOE’s Waste Isolation Pilot Plant (WIPP). In addition to temporary staff augmentation, Absolute has grown into Direct Hire placement for our customers helping them overcome the talent shortfall due to the aging workforce.
ATTENTION: Upcoming public courseMay 20-22 | Jacksonville, FL, USA
April 2-3 – International SMR and Advanced Reactor Summit
July 22-24, AEP Generation Forum, Columbus, Ohio
August 4-9 – SMiRT 25 Conference- Charlotte, NC, USA
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