GP Strategies Revenue Grew 46%; Operating Income Increased 70%; EBITDA up 67%
Overview of First Quarter 2012 Results:
¦Revenue of $93.6 million for first quarter of 2012 compared to $64.3 million for first quarter of 2011
¦Operating income of $7.3 million for first quarter of 2012 compared to $4.3 million for first quarter of 2011
¦Diluted earnings per share of $0.23 for first quarter of 2012 compared to $0.14 per share for first quarter of 2011
¦EBITDA of $9.2 million for first quarter of 2012 compared to $5.5 million for first quarter of 2011
¦Cash flow from operations of $7.0 million for first quarter of 2012
The Company's revenue increased 46% or $29.3 million during the first quarter of 2012 compared to the first quarter of 2011. The RWD consulting business, which was acquired from RWD Technologies in April 2011, contributed $17.7 million of revenue during the first quarter of 2012. All of the Company's operating segments achieved organic growth during the quarter, resulting in total organic revenue growth of 13% for the Company during the first quarter of 2012. The growth was driven by increased services for both new and existing customers across a variety of industries. Operating income increased 70% to $7.3 million for the first quarter of 2012 from $4.3 million for the first quarter of 2011. Net income was $4.4 million for the first quarter of 2012 compared to $2.6 million for the first quarter of 2011.
"I am pleased to report that our trend of extremely strong financial results continued into 2012," commented Scott N. Greenberg, Chief Executive Officer of GP Strategies. "We achieved double-digit organic revenue growth, led by solid performance across all of our operating segments. These positive results, combined with the successful execution of our acquisition strategy, continue to reinforce the Company's long-term growth prospects."
Balance Sheet and Cash Flow Highlights
As of March 31, 2012, the Company had cash and cash equivalents of $8.3 million compared to $4.2 million as of December 31, 2011. The Company had no short-term borrowings or long-term debt outstanding as of March 31, 2012. Cash provided by operating activities was $7.0 million for the quarter ended March 31, 2012 compared to $2.4 million for the same period in 2011.
Investor Call
The Company has scheduled an investor conference call for 10:00 a.m. ET on May 3, 2012. In addition to prepared remarks from management, there will be a question and answer session on the call. The dial-in numbers for the live conference call are 800-681-1608 or 303-223-2690, using conference ID number 21590137. A telephone replay of the call will also be available beginning at 12:00 p.m. on May 3rd, until 12:00 p.m. on May 17th. To listen to the replay, dial 800-633-8284 or 402-977-9140, using conference ID number 21590137.
