Gp Strategies Corp (GPX) 10-Q Quarterly Report November 2018

Columbia, MD. November 6, 2018. Global performance improvement solutions provider GP Strategies Corporation (NYSE: GPX) today reported financial results for the quarter ended September 30, 2018.

Overview:


•	Revenue of $123.6 million for third quarter of 2018 compared to $124.1 million for third quarter of 2017


•	Gross profit of $19.2 million, or 15.5%, of revenue for third quarter of 2018 compared to $18.6 million, or 15.0%, for third quarter of 2017


•	Diluted earnings per share of $0.20 for third quarter of 2018 compared to $0.19 per share for third quarter of 2017

"Recent developments are favorable for improved operating results in 2019," stated Scott N. Greenberg, Chief Executive Officer of GP Strategies. "GP Strategies has just been selected by a large multi-national insurance company for a global training outsourcing contract, subject to contract negotiations. In addition, we recently won a multi-million dollar contract for a U.S. product training launch with a Japanese automotive manufacturer. We have also seen increased revenue in our engineering & technical services practice, which was the first area of focus by our new sales organization, so I am pleased with the traction resulting from our investment in business development. Implementation expenses related to our new cloud ERP system are expected to decrease significantly, since the Company went live on this system effective October 1, 2018. These expenses totaled $4.9 million in 2017 and $3.0 million for the first nine months of 2018. Based upon these efforts, we believe GP Strategies is strongly positioned for 2019 and beyond."

The Company's revenue decreased slightly to $123.6 million for the third quarter of 2018 from $124.1 million in the third quarter of 2017. Revenue in the Workforce Excellence segment increased $3.5 million, or 5%, largely driven by a 19% increase in the Company's engineering & technical services practice as well as revenue growth from recently completed acquisitions, offset by a continued decline in UK job skills training services due to the previously disclosed funding changes by the UK government for their apprenticeship programs. Revenue in the Business Transformation Services segment declined $4.0 million, or 9%, largely due to project completions which contributed to higher revenues in 2017, as well as a change in the timing of shipment of magazine publications for automotive customers in 2018 compared to 2017.

Operating income increased $1.8 million to $6.2 million for the third quarter of 2018 from $4.4 million for the third quarter of 2017. The increase in operating income is primarily due to a $0.6 million increase in gross profit, a $1.9 million decrease in general and administrative expenses (largely due

The following information was filed by Gp Strategies Corp (GPX) on Tuesday, November 6, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Gp Strategies Corp's 10-Q Quarterly Report:

Financial - Expense Highlight
The decrease in general and administrative expenses is primarily due to a $1.7 million reduction in ERP implementation costs related to our new financial system which went live on October 1, 2018 (consisting of a $1.2 million decrease in third party costs and a net $0.5 million decrease in internal labor costs).

Other - Other Highlight
Because these forward-looking statements are based upon managements expectations and assumptions and are subject to risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, but not limited to, those factors set forth in Item 1A - Risk Factors of the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and those other risks and uncertainties detailed in our periodic reports and registration statements filed with the Securities and Exchange Commission.
Revenue - Product Highlight
The revenue decrease is due to the following: a $2.8 million net decrease in our Sales Enablement practice primarily due to the following: a $2.5 million decline due to the completion of non-recurring vehicle launch events in 2017; and a $2.1 million decline in magazine publications due to a change in the timing of shipment in certain publications from third quarter of 2018 to the fourth quarter of 2018; partially offset by a $1.2 million increase in training services for automotive clients; and an estimated $0.6 million increase in revenue contributed by the TTi Europe acquisition completed on August 7, 2018 (since the acquisitions are integrated into our operations, the estimated revenue contribution is based on a pro forma trailing twelve month revenue run rate at the time of acquisition).
Revenue - Product Highlight
The net decrease in revenue is due to the following: a $4.1 million net decrease in our Sales Enablement practice primarily due to the following: a $7.2 million decline due to the completion of non-recurring vehicle launch events in 2017; and a $2.2 million decline in magazine publications due to a change in the timing of shipment in certain publications from third quarter of 2018 to the fourth quarter of 2018; partially offset by a $4.7 million increase in training services for automotive clients; and an estimated $0.6 million increase in revenue contributed by the TTi Europe acquisition completed on August 7, 2018 (since the acquisitions are integrated into our operations, the estimated revenue contribution is based on a pro forma trailing twelve month revenue run rate at the time of acquisition).
M & A - Other Highlight
The increase in cash in financing activities is primarily due to an increase in borrowings under our credit agreement to fund acquisitions, partially offset by a $6.1 million increase in cash used for share repurchases.
Financial - Earnings
The gross profit decrease is...Read more
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Revenue - Product
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Financial - Cash Flow
Cash Flows Nine Months ended...Read more
Financial - Expense
In addition, there was a...Read more
Financial - Earnings
The Managed Learning Services offerings...Read more
Financial - Expense
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Financial - Expense
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Other - Other
Effective January 1, 2018, we...Read more
Revenue - Product
Nine Months ended September 30,...Read more
Financial - Expense
The $2.4 million of capitalized...Read more
Financial - Earnings
Results of Operations General Overview...Read more
Revenue - Product
Revenue Workforce Excellence revenue increased...Read more
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Revenue - Geography
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Financial - Expense
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Other - Other
In addition, there were $69.0...Read more
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We operate in a continually...Read more
Financial - Earnings
Business Transformation Services gross profit...Read more
Revenue - Product
Revenue Workforce Excellence revenue increased...Read more
Other - Other
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The increase to the provisional...Read more
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Financial - Expense
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Other - Other
The Business Transformation Services segment...Read more
M & A - Other
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M & A - Other
This acquisition strengthens our eLearning...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Gp Strategies Corp provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: GPX
CIK: 70415
Form Type: 10-Q Quarterly Report
Accession Number: 0000070415-18-000145
Submitted to the SEC: Tue Nov 06 2018 12:31:07 PM EST
Accepted by the SEC: Tue Nov 06 2018
Period: Sunday, September 30, 2018
Industry: Educational Services