GSE Systems (GVP) Reports Q4 EPS of $0.13, Revenues Miss

March 31, 2021 4:17 PM EDT
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Price: $1.42 --0%

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Interest income, net: 11K

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GSE Systems (NASDAQ: GVP) reported Q4 EPS of $0.13, versus $0.33 reported last year. Revenue for the quarter came in at $12.7 million versus the consensus estimate of $13.4 million.

Q4 2020 Overview

  • Revenue of $12.7 million, compared to $17.3 million in Q4 2019.
  • Gross profit of $3.8 million, compared to $5.0 million in Q4 2019.
  • Operating loss of $(1.2) million, compared to $(1.6) million in Q4 2019.
  • Net loss of $(1.5) million, or $(0.07) per diluted share, compared to $(6.3) million, or $(0.32) per diluted share, in Q4 2019.
  • Adjusted net income1 of $2.6 million, or $0.13 per diluted share, compared to $6.7 million, or $0.33 per diluted share, in Q4 2019.
  • Adjusted EBITDA1 of $1.1 million, compared to $1.2 million in Q4 2019.
  • New orders equaled $7.9 million, compared to $16.2 million in Q4 2019.
  • Awarded master service agreements with a major U.S. utility for a combined value of $35 million during a two- year period, commencing in 2021 and ramping up during the year. These agreements are not included in the Company’s fourth quarter new orders or quarter-ending backlog.

Kyle J. Loudermilk, GSE’s President and Chief Executive Officer, said, “We concluded 2020 on a very encouraging note, with fourth quarter adjusted EBITDA improving to positive $1.1 million, compared to three straight quarters of negative adjusted EBITDA to start the year amidst the onset of the COVID-19 pandemic. GSE achieved this positive result despite an ongoing lull in industrywide project activity in the fourth quarter due to the COVID-19 pandemic. We noted an uptick in bidding activity at the end of the quarter and were very pleased to be awarded two master service agreements in December with a major U.S. utility for a combined value of $35 million over two years. Work under these agreements will commence in the second quarter of 2021 and ramp up throughout the year. During the quarter, we also continued to build our Software as a Service cloud-based revenue stream, highlighted by a large U.S. oil company’s multi-year subscription to our EnVision On-Demand software simulation and training platform. In 2020, our recurring software revenue totaled $3.9 million, up 34% from $2.9 million in the prior year. This represents significant progress in our efforts to grow our software revenue.”

Mr. Loudermilk continued, “While uncertainties related to the pandemic persist, we noted a surge in RFP activity to start 2021 and, depending on our success rate converting bids to wins, we could see a meaningful upswing in business in the second half of the year. We are optimistic about our near- and long-term prospects, especially as a result of the renewed focus on decarbonizing the power sector. Our services are essential to the nuclear industry, which plays a critical role in the decarbonization of energy. We remain focused on growing our businesses organically, executing on an exciting product and solutions roadmap as well as emphasizing cross selling and upselling opportunities.”

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



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