GP Strategies (GPX) Tops Q1 EPS by 4c, Revenues Beat

GP Strategies (NYSE: GPX) reported Q1 EPS of $0.16, $0.04 better than the analyst estimate of $0.12. Revenue for the quarter came in at $139.5 million versus the consensus estimate of $137.09 million.

• Record revenue of $139.5 million for first quarter of 2019 compared to $125.0 million for first quarter of 2018
• Gross profit of $21.3 million, or 15.3% of revenue, for first quarter of 2019 compared to $17.7 million, or 14.1% of revenue, for first quarter of 2018
• Diluted earnings per share of $0.02 for first quarter of 2019 compared to $0.16 per share for first quarter of 2018 (includes special items which had the net effect of reducing earnings by $0.14 per share for the first quarter of 2019)
• Backlog of $334.7 million as of March 31, 2019, a 21% increase compared to $276.5 million as of March 31, 2018

"The Company's first quarter 2019 results reinforce our positive outlook for the future," stated Scott N. Greenberg, Chief Executive Officer of GP Strategies. "We achieved both significant revenue and gross profit improvements. Combined with a record backlog, the first quarter operating results showed progress in achieving the Company's long term objectives."

"After entering 2019 with long term renewals with our two largest customers, representing 27% of our 2018 revenue, we see our new sales structure gaining momentum for future revenues. Our backlog is up 21% from the prior year to an all-time high of $334.7 million. In addition, we are pleased with our progress with the TTi acquisition and expect TTi to contribute to EBITDA in the second quarter of 2019," commented Adam H. Stedham, President of GP Strategies. "While the Company's first quarter results were affected by the integration of the TTi acquisition, continued Oracle post-implementation costs and additional severance expense, I believe that the Company is building on the foundation discussed on the fourth quarter earnings call. As we see our operating costs stabilizing in the near future, we see the potential to increase both our gross profit and EBITDA on both an absolute and percentage basis. We believe the Company is on the right path."

For earnings history and earnings-related data on GP Strategies (GPX) click here.

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