Gp Strategies Corp (GPX) 10-Q Quarterly Report August 2019

Columbia, MD. August 1, 2019. Global performance improvement solutions provider GP Strategies Corporation (NYSE: GPX) today reported financial results for the quarter ended June 30, 2019.

Overview:


•	Record revenue of $149.4 million for second quarter of 2019 compared to $133.7 million for second quarter of 2018


•	Record gross profit of $23.0 million for second quarter of 2019 compared to $22.6 million for second quarter of 2018


•	Diluted earnings per share of $0.19 for second quarter of 2019 compared to $0.22 per share for second quarter of 2018


•	Backlog of $330.5 million as of June 30, 2019, a 23% increase compared to $268.8 million as of June 30, 2018

“We are pleased to report both record revenue and gross profit in the second quarter, which enhances confidence in our outlook for the future,” stated Scott N. Greenberg, Chief Executive Officer of GP Strategies. "These results were achieved despite a significant decline in foreign currency exchange rates which negatively impacted our U.S. dollar reported revenue and gross profit by $2.3 million and $0.3 million, respectively, in the second quarter of 2019. With our increased backlog and significant new opportunities, we believe the positive momentum should continue.”

"Having completed six months of 2019, we continue to see our new sales structure gaining traction,” commented Adam H. Stedham, President of GP Strategies. “We are pleased that we are generating higher than anticipated revenues from our TTi business. In addition, we continue to make progress on improving TTi's profitability to align with the company's gross margins. We continue to be confident that we are on track to execute throughout the remainder of 2019."

The Company's revenue increased $15.7 million, or 12%, to $149.4 million for the second quarter of 2019 from $133.7 million in the second quarter of 2018. Revenue in the Business Transformation Services segment increased $16.7 million, or 32%, largely due to the TTi Global acquisition completed in December 2018, as well as an increase in sales training services for automotive clients. This increase was partially offset by a $1.0 million, or 1%, revenue decrease in the Workforce Excellence segment. Foreign currency exchange rate changes resulted in a $2.3 million decrease in U.S. dollar reported revenue during the second quarter of 2019, which primarily impacted the Workforce Excellence segment.

The following information was filed by Gp Strategies Corp (GPX) on Thursday, August 1, 2019 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 - Earnings Highlight
Business Transformation Services gross profit of $9.6 million or 14.0% of revenue for the second quarter of 2019 increased by $1.9 million or 25.1% compared to gross profit of $7.6 million or 14.8% of revenue for the second quarter 2018 primarily due to gross profit contributed by the acquired TTi business and improved gross margins in our Organizational Development practice.

Other - Other Highlight
Because these forward-looking statements are based upon management's 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 Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and those other risks and uncertainties detailed in our periodic reports and registration statements filed with the Securities and Exchange Commission.
Financial - Earnings Highlight
The decrease in cash from operations is primarily due to a decrease in net income and a net decrease in working capital balances during the six months ended June 30, 2019 compared to the same period in 2018.
Financial - Earnings Highlight
Business Transformation Services gross profit of $17.4 million or 13.6% of revenue for the six months ended June 30, 2019 increased by $3.5 million or 24.8% when compared to gross profit of $14.0 million or 13.9% of revenue for the same period in 2018 primarily due to $1.6 million of gross profit contributed by the acquired TTi business, a $1.0 million increase in gross profit in our Organizational Development practice and a $0.9 million increase in gross profit in our Sales Enablement practice.
M & A - Other Highlight
The proceeds of the Credit Agreement were used, in part, to repay in full all outstanding borrowings under the Original Credit Agreement, and additional proceeds of the revolving credit facility are expected to be used for working capital and other general corporate purposes of the Company and its subsidiaries, including the issuance of letters of credit and Permitted Acquisitions, as defined.
Financial - Cash Flow
While we cannot assess the...Read more
Revenue - Product
The net increase in revenue...Read more
Financial - Earnings
Workforce Excellence gross profit of...Read more
Revenue - Product
Business Transformation Services revenue increased...Read more
Other - Other
We use words such as...Read more
Financial - Income
The effective income tax rate...Read more
Financial - Income
The effective income tax rate...Read more
Other - Other
Effective January 1, 2018, we...Read more
Revenue - Product
Business Transformation Services revenue increased...Read more
Financial - Expense
General and Administrative Expenses General...Read more
Financial - Expense
The net increase is due...Read more
Financial - Earnings
We are a global performance...Read more
Financial - Expense
General and administrative expenses increased...Read more
Other - Other
Borrowings under the Credit Agreement...Read more
Revenue - Product
Our revenue increased $15.7 million...Read more
Revenue - Product
Our revenue increased $30.2 million...Read more
Financial - Shares
The decrease in cash provided...Read more
Other - Other
The decrease in cash and...Read more
Revenue - Geography
Foreign currency exchange rate changes...Read more
Revenue - Geography
Foreign currency exchange rate changes...Read more
Revenue - Product
Workforce Excellence revenue increased $2.0...Read more
Other - Other
We believe we are a...Read more
Other - Other
As of June 30, 2019,...Read more
Financial - Earnings
Base Rate loans will bear...Read more
Financial - Expense
Interest expense increased $2.7 million...Read more
Other - Other
As of June 30, 2019,...Read more
Financial - Income
Income tax expense for the...Read more
Financial - Income
Income tax expense for the...Read more
Financial - Income
Operating income, the components of...Read more
M & A - Other
We recognized a $0.6 million...Read more
M & A - Other
We recognized a net gain...Read more
Financial - Debt
There were $1.3 million of...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: 0000070415-19-000097
Submitted to the SEC: Fri Aug 02 2019 7:29:12 AM EST
Accepted by the SEC: Fri Aug 02 2019
Period: Sunday, June 30, 2019
Industry: Educational Services