GSE Systems (GVP) Tops Q3 EPS by 1c, Revenues Miss

GSE Systems (NASDAQ: GVP) reported Q3 EPS of ($0.05), $0.01 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $12.9 million versus the consensus estimate of $14.4 million.

Q3 2020 Financial Overview

• Revenue of $12.9 million, compared to $20.0 million in Q3 2019
• Gross profit of $3.3 million, compared to $4.7 million in Q3 2019
• Net loss of $0.7 million or $(0.03) per basic and diluted share in Q3 2020, compared to a net loss of $1.2 million, or $(0.06) per basic and diluted share in Q3 2019
• Adjusted net loss1 of $ 1.0 million, or $(0.05) adjusted loss per share in Q3 2020 , compared to adjusted net income of $0.6 million or $0.03 adjusted earnings per diluted share, in Q3 2019
• Adjusted EBITDA1 of $(0.6) million in Q3 2020, compared to $1.4 million in Q3 2019
• Cash flow provided by operations of $1.6 million during the nine months ended September 30, 2020, compared to cash used during the nine months ended September 30, 2019 of $0.3 million
• New orders of $10.9 million during Q3 2020, compared to new orders of $19.0 million in Q3 2019
• Repaid $9.9 million of outstanding long-term debt obligations during Q3 2020

Kyle J. Loudermilk, GSE’s President and Chief Executive Officer, said, “In the third quarter of 2020, industrywide RFP delays and project suspensions due to the COVID-19 pandemic continued to dampen our financial results. In this challenging environment, we remained focused on cost containment and debt repayment, while positioning GSE for success as industry demand for our services returns to normalized levels. Of note, during the quarter we repaid nearly $10 million of long-term debt and strengthened our leadership team with the appointment of Brian Greene as Vice President of our NITC business. Brian’s proven track record in staffing spans 15+ years and he already has reenergized our NITC group. Finally, our Performance segment continues to win a steady flow of fundamental engineering and simulation projects, and we remained focused on organic growth opportunities through cross selling and upselling GSE’s full range of products and services. Our services are essential to the nuclear industry, which plays a critical role in the decarbonization of energy.”

For earnings history and earnings-related data on GSE Systems (GVP) click here.

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