GP Strategies Corporation Highlights On 2/29/12, the Company reported its financial results for 4Q11 and full-year 2011, including the following highlights:
¦Reported record revenue of $93.9 million (M) during 4Q11 increased by 33% from the year-ago period revenue of $70.8M.
¦Reported net income increased 39% during 4Q11 to $5.9M compared to net income in the year-ago period of $4.3M, resulting in earnings per share (diluted EPS) of $0.31 during 4Q11 compared to $0.23 in the year-ago period.
¦As of year-end 2011, reported cash / equivalents of $4.2M vs. $28.9M at year-end 2010. During 2011, $GPX utilized $35.6M in cash for acquisitions and ended 2011 with no debt and $34.5M available under a revolving line of credit with approximately 19M shares of common stock outstanding.
¦Generated cash from operating activities of $5.6M during 4Q11 and $16.2M for full-year 2011 with EBITDA of $10.3M (11% of revenue) during 4Q11 that increased 43% from the year-ago period level of $7.2M (10% of revenue).
¦RWD consulting business (acquired in April 2011 for $25.8M) contributed $17.2M (revenue) and $1.9M (gross profit) during 4Q11 while other acquisitions and organic (previously-owned business units) growth contributed the other $5.9M in revenue growth for the quarter.
The Company highlighted its successful strategic acquisition strategy in the highly fragmented $59.7 billion training industry (with 18 acquisitions completed since 2006) as a key element in expanding its capabilities and achieving the growing, record profit, revenue and cash flow (EBITDA) reported during 4Q11 and for the full year. $GPX also highlighted leadership and skills training as a potential source of growth that will complement the Company’s core strategic focus on sales training and e-Learning.
$GPX has global reach with offices located worldwide and 2,500 employees poised to capitalize on the growing shift toward e-Learning within the training industry as companies from a variety of industries (for example, financial services, information technology and manufacturing) shift from traditional in-person training to more efficient, flexible and convenient e-Learning applications.
On the 4Q11 earnings conference call, the Company also announced a new financial services contract award representing an estimated $5M-plus annual revenue opportunity. In addition, $GPX is poised to benefit from a resurgent U.S. and global auto manufacturing industry, which represented 17% of the Company’s total revenue in 2011.
