• Jobs & Careers
  • Investor Center
  • GSE Home
  • Search
GSE Solutions
  • Design & Analysis
      • Design & Analysis
        • Civil & Structural Engineering
        • Electrical / I&C Engineering
        • Fire Protection Engineering
        • Mechanical Engineering
        • All GSE Engineering Services >
      • Core competencies are engineering, project studies and design modifications, but through alliances with our teaming partners, we offer a myriad of related services.

        Watch video >

      • Engineer of Choice Provider - We maintain a deep bench of expertise that includes both bright, promising engineers and staff members with 40 or more years of industry experience.

    • Systems & Simulation
        • Systems & Simulation Solutions
          • High-fidelity Simulators
          • Classroom Simulators
          • Engineering Simulators
          • On-demand Training & Simulations
          • Simulator Upgrades & Maintenance
          • Platforms & Development Tools
          • Advanced Simulation Models
          • All GSE Engineering Services >
        • The most experienced simulation company in the world. Having delivered more full-scope simulators than all of our competitors combined.

          Watch video >

        • December 2022 News - GSE Solutions to Develop First-of-its-kind Hydrogen Plant Model for NuScale Power

          Read more >

      • Programs & Performance
          • Engineering Programs Services
            • ASME Code Programs
            • ASME Section XI Programs
            • Balance of Plant (BOP) Programs
            • Equipment Qualification Programs
            • Engineering Programs Training
            • Nuclear Power Plant Life Extension Services
            • Software (EP-Plus Engage)
          • Thermal Performance Services
            • Data Validation & Reconciliation (DVR)
            • Engineering Analysis & Support
            • Monitoring & Testing Services
            • Program Assessment Services
            • Thermal Performance Training
            • Thermal System Monitoring (TSM)
            • All GSE Engineering Services >
          • True North Consulting is now GSE Engineering, Programs & Performance group. Letter to customers >

        • Training Services
            • Nuclear Operator Training
              • SRO Certifications
              • Classroom Simulators
            • Engineering Programs Training
              • 10 CFR Appendix J
              • Advanced CHECWORKS
              • Appendix III MOV
              • Inservice Inspection (ISI) Programs
              • Inservice Testing (IST) Training
            • Thermal Performance Training
              • Basic Thermal Performance Training
              • Basic Thermal Performance for Fossil
              • Moisture Separator and Reheater Training
            • Training for Process/O&G
              • On-demand Simulation
              • Cloud-based Courses & Tutorials
              • All GSE Workforce Solutions >
            • Our team brings more than 40 years of experience developing training programs for the power generation industry. GSE offers training programs to fit every need, from turn-key to custom programs, to on-demand and certification courses.

              Watch video >

          • Technical Staffing
              • Technical Staffing
                • Nuclear Staffing
                • Thermal/Fossil Staffing
                • Oil & Gas Staffing
                • Renewable Energy Staffing
                • Transmission & Distribution Staffing
                • Vets On Call Program
              • Specialty Consultants
                • Nuclear Operations Specialists
                • Thermal Performance Analysts
                • Procedure Services & Specialists
                • Simulation Specialists
                • Nuclear Training Instructors
                • Design & Maintenance Engineers
                • All GSE Workforce Solutions >
              • GSE experts help identify solutions and talent to address workforce gaps. The GSE Workforce Solutions team will make sure the right people and skills are in place for customer operations to run smoothly.

                Watch video >

            • About
              • About GSE
              • Press Releases
              • Leadership
              • Board Members
              • Investor Center
              • Blogs & Articles
              • Resource Library
            • Contact
            • Menu Menu

            GSE Solutions Announces Third Quarter 2020 Financial Results

            November 16, 2020/in Financials, General News

            Columbia, MD – November 16, 2020 – GSE Systems, Inc. (“GSE Solutions”, “GSE” or “the Company”) (Nasdaq: GVP),  a leader in delivering and supporting end-to-end training, engineering, compliance, simulation and workforce solutions to the power industry, announced today its financial results for the three months ended September 30, 2020 (“Q3 2020”).

            Q3 2020 Financial Overview

            • Revenue of $9 million, compared to $20.0 million in Q3 2019
            • Gross profit of $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 $2 million, or $(0.06) per basic and diluted share in Q3 2019
            • Adjusted net loss1 of $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 $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 $3 million
            • New orders of $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

            At September 30, 2020

            • Cash and cash equivalents of $7 million
            • Total indebtedness of $13.6 million
            • Working capital of $4 million and current ratio of 1.1x
            • Backlog of $44.6 million

            1 Refer to the non-GAAP reconciliation tables at the end of this press release for a definition of “EBITDA”, “adjusted EBITDA” and “adjusted net income”.

             

            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.”

             

            Q3 2020 FINANCIAL RESULTS

            Q3 2020 revenue of $12.9 million, a decrease of $7.1 million, from $20.0 million in Q3 2019.

            Three months ended Nine months ended
            (in thousands) September 30, 2020   September 30, 2019 September 30, 2020   September 30, 2019
            Revenue:
            Performance $ 7,257 $ 11,417 $ 25,240 $ 36,617
            NITC 5,665 8,614 19,727 29,066
            Total revenue $ 12,922 $ 20,031 $ 44,967 $ 65,683

             

            Performance revenue decreased to $7.3 million in Q3 2020, from $11.4 million in Q3 2019. The decrease was mainly due to delays in beginning new contracts, a reduction of DP Engineering revenue due to a customer incident in the prior year and major project completions during the third quarter of 2019. We recorded total Performance orders of $9.3 million and $10.7 million for Q3 2020 and Q3 2019, respectively.

            NITC revenue decreased to $5.7 million in Q3 2020 from $8.6 million in Q3 2019. The decrease in revenue was largely due to lower staffing needs during the quarter, due primarily to the COVID-19 pandemic, contributing to lower demand for staff augmentation. NITC orders were $1.6 million and $8.3 million for Q3 2020 and Q3 2019, respectively.

            Q3 2020 gross profit was $3.3 million or 25.7% of revenue, compared to $4.7 million or 23.3% of revenue, in Q3 2019.

            Three months ended   Nine months ended
            September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
            (in thousands) $   % $   %   $   % $   %
            Gross profit:
               Performance $ 2,482 34.2% $ 3,548 31.1% $ 8,240 32.6% $ 11,787 32.2%
               NITC 837 14.8% 1,125 13.1% 2,756 14.0% 3,489 12.0%
            Consolidated gross profit $ 3,319 25.7% $ 4,673 23.3% $ 10,996 24.5% $ 15,276 23.3%

            The decrease in our gross profit of $1.4 million was primarily driven by a decrease in Performance and NITC revenue during the nine months ended September 30, 2020, as well as completion of higher margin projects in our True North and DP Engineering subsidiaries during 2019.

            Selling, general and administrative expenses in Q3 2020 totaled $2.9 million or 22.3% of revenue, compared to $3.5 million or 17.3% of revenue, in Q3 2019. The decrease in SG&A during Q3 2020 over Q3 2019 was due primarily to the net gain on legal settlement of $1.0 million in the current year with no similar activity in the prior year; this credit in SG&A is offset by an increase in business development expenses during the current fiscal year for two of our consolidated subsidiaries.

            Net loss for Q3 2020 totaled $0.7 million or $(0.03) per basic and diluted share, compared to a net loss of $1.2 million or $(0.06) per basic and diluted share, in Q3 2019.

            Adjusted net loss totaled $1.0 million or $(0.05) adjusted loss per diluted share in Q3 2020 compared to adjusted net income of $0.6 million, or $0.03 adjusted earnings per diluted share, in Q3 2019.

            Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for Q3 2020 was approximately $0.2 million, compared to $0.4 million in Q3 2019.

            Adjusted EBITDA (“AEBITDA”) totaled $(0.6) million in Q3 2020, compared to $1.4 million in Q3 2019.

            BACKLOG AND CASH POSITION

            Backlog at September 30, 2020 was $44.6 million, compared to $52.7 million at December 31, 2019. Backlog at September 30, 2020 included $33.2 million of Performance backlog and $11.4 million of NITC backlog. Performance backlog decreased by $4 million primarily due to 2019 backlog that was converted to revenues during 2020 and has only been partially replaced by new orders.

            Our cash position was $7.7 million at September 30, 2020, compared to $11.7 million at December 31, 2019. The decrease of $4 million during the nine months ended September 31, 2020 in our cash and cash equivalents was primarily due to payments on long-term debt of $18.5 million, offset by proceeds from the Paycheck Protection Program of $10 million and draws on our revolving line of credit, net of repayments of $3.5 million.

            CONFERENCE CALL

            Management will host a conference call today at 4:30 pm Eastern Time to discuss Q3 2020 results as well as other matters.

            Interested parties may participate in the call by dialing:

            (877) 407-9753 (Domestic)

            (201) 493-6739 (International)

            The conference call will also be accessible via the following link:

            https://78449.themediaframe.com/dataconf/productusers/gvp/mediaframe/41905/indexl.html

            For those who cannot listen to the live broadcast, an online webcast replay will be available www.gses.com or the following link: https://78449.themediaframe.com/dataconf/productusers/gvp/mediaframe/41905/indexl.html.

             

            ABOUT GSE SOLUTIONS

            We are the future of operational excellence in the power industry. As a collective group, GSE Solutions leverages top skills, expertise, and technology to provide highly specialized solutions that enable customers to achieve the performance they envision. Our experts deliver and support end-to-end training, engineering, compliance, simulation, and workforce solutions that help the power industry reduce risk and optimize plant operations. GSE is a proven solution provider, with more than four decades of industry experience and more than 1,100 installations serving hundreds of customers in over 50 countries spanning the globe. www.gses.com

             

            FORWARD LOOKING STATEMENTS

            We make statements in this press release that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. These statements reflect our current expectations concerning future events and results. We use words such as “expect,” “intend,” “believe,” “may,” “will,” “should,” “could,” “anticipates,” and similar expressions to identify forward-looking statements, but their absence does not mean a statement is not forward-looking. These statements are not guarantees of our future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. We do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

             

            Company Contact The Equity Group Inc.
            Kyle Loudermilk Kalle Ahl, CFA
            Chief Executive Officer (212) 836-9614
            GSE Systems, Inc. kahl@equityny.com
            (410) 970-7800

             

            GSE SYSTEMS, INC. AND SUBSIDIARIES

            Condensed Consolidated Statements of Operations

            (in thousands, except share and per share data)          

            (unaudited)

            Three months ended Nine months ended
            September 30, 2020 September 30, 2019 September 30, 2020   September 30, 2019
            Revenue $ 12,922 $ 20,031 $ 44,967 $ 65,683
            Cost of revenue 9,603 15,358 33,971 50,407
            Gross profit 3,319 4,673 10,996 15,276
            Operating expenses:
            Selling, general and administrative 2,878 3,465 12,548 12,231
            Research and development 137 130 526 526
            Restructuring charges 185 740 195 742
            Loss on impairment – – 4,302 5,464
            Depreciation 76 107 254 300
            Amortization of intangible assets 414 596 1,528 1,804
            Total operating expenses 3,690 5,038 19,353 21,067
            Operating loss (371) (365) (8,357) (5,791)
            Interest expense, net (128) (288) (556) (812)
            Gain (loss) on derivative instruments, net 31 (61) 35 (69)
            Other (expense) income, net (77) 59 (24) 62
            Loss before income taxes (545) (655) (8,902) (6,610)
            Provision for (benefit from) income taxes 116 568 166 (874)
            Net loss $ (661) $ (1,223) $ (9,068) $ (5,736)
            Net loss per common share – basic and diluted $ (0.03) $ (0.06) $ (0.44) $ (0.29)
            Weighted average shares outstanding used to compute net loss per share – basic and diluted 20,563,452 20,007,469 20,438,571 20,021,829

             

            GSE SYSTEMS, INC AND SUBSIDIARIES

            Selected Balance Sheet Data

            (in thousands)

              (unaudited) (audited)
            September 30, 2020 December 31, 2019
            Cash and cash equivalents $ 7,660 $ 11,691
            Current assets $ 20,520 $ 30,778
            Noncurrent assets 21,097 27,731
                Total assets $ 41,617 $ 58,509
            Current liabilities $ 18,135 $ 34,434
            Noncurrent liabilities 12,047 3,956
            Stockholders’ equity 11,435 20,119
                 Total liabilities and shareholders’ equity $ 41,617 $ 58,509

            [– End “Financial Data” Segment –][– Start “NON-GAAP Tables” Segment –]

            EBITDA and Adjusted EBITDA Reconciliation (in thousands)

             

            References to “EBITDA” means Net Income (Loss), before taking into account interest income and expense, provision for income taxes, depreciation and amortization. References to Adjusted EBITDA (“AEBITDA”) exclude the impact on our net loss due to any impairment of our intangibles, gain from the change in fair value of contingent consideration, restructuring charges, stock-based compensation expense, impact of the change in fair value of derivative instruments, provision for legal settlements and acquisition-related expenses. EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles (GAAP). Management believes EBITDA and Adjusted EBITDA, in addition to operating profit, net income and other GAAP measures, are useful to investors to evaluate the Company’s results because it excludes certain items that are not directly related to the Company’s core operating performance that may, or could, have a disproportionate positive or negative impact on our results for any particular period. Investors should recognize that EBITDA and AEBITDA might not be comparable to similarly-titled measures of other companies. This measure should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP. A reconciliation of non-GAAP EBITDA and AEBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G follows:

            Three months ended   Nine months ended
            September 30, 2020 September 30, 2019   September 30, 2020 September 30, 2019
            Net loss $ (661) $ (1,223) $ (9,068) $ (5,736)
            Interest expense, net 128 288 556 812
            Provision for (benefit from) income taxes 116 568 166 (874)
            Depreciation and amortization 579 768 2,030 2,397
            EBITDA 162 401 (6,316) (3,401)
            Gain on legal settlement, net (952) – (91) –
            Loss on impairment – – 4,302 5,464
            Impact of the change in fair value of contingent consideration – – – (1,200)
            Restructuring charges 185 740 195 742
            Stock-based compensation expense 33 114 357 1,150
            (Gain) loss on derivative instruments (31) 61 (35) 69
            Acquisition-related expenses 3 116 191 744
            Adjusted EBITDA $ (600) $ 1,432 $ (1,397) $ 3,568

            Adjusted Net (Loss) Income and Adjusted EPS Reconciliation (in thousands, except per share amounts)

             References to Adjusted Net (Loss) Income exclude the impact of gain from the change in fair value of contingent consideration, loss on impairment of our intangibles, restructuring charges, stock-based compensation expense, change in fair value of derivative instruments, acquisition-related expense, acquisition-related legal settlement, amortization of intangible assets and the income tax expense impact of any such adjustments. Adjusted Net Income and adjusted earnings per share (adjusted EPS) are not measures of financial performance under generally accepted accounting principles (GAAP). Management believes adjusted net income and adjusted EPS, in addition to other GAAP measures, are useful to investors to evaluate the Company’s results because they exclude certain items that are not directly related to the Company’s core operating performance and non-cash items that may, or could, have a disproportionate positive or negative impact on our results for any particular period.  These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP. A reconciliation of non-GAAP adjusted net income and adjusted EPS to GAAP net income, the most directly comparable GAAP financial measure, is as follows:

            (in thousands) Three months ended Nine months ended
            September 30, 2020 September 30, 2019 September 30, 2020   September 30, 2019
            Net loss $ (661) $ (1,223) $ (9,068) $ (5,736)
            Gain  legal settlement, net (952) – (91) –
            Loss on impairment – – 4,302 5,464
            Impact of the change in fair value of contingent consideration – – – (1,200)
            Restructuring charges 185 740 195 742
            Stock-based compensation expense 33 114 357 1,150
            (Gain) loss on derivative instruments, net (31) 61 (35) 69
            Acquisition-related expense 3 116 191 744
            Amortization of intangible assets 414 596 1,528 1,804
            Income tax expense impact of adjustments – 186 – (1,761)
            Adjusted net (loss) income $ (1,009) $ 590 $ (2,621) $ 1,276
            Adjusted (loss) earnings per common share – diluted $ (0.05) $ 0.03 $ (0.13) $ 0.06
            Weighted average shares outstanding – diluted(1) 20,563,452 20,586,145 20,438,571 20,418,960

            (1) During the three and nine months ended September 30, 2020, we reported a GAAP net loss and an adjusted net loss. Accordingly, there were 66,261 and 12,172 dilutive shares from RSUs that were excluded from the adjusted net loss per common share.

            (1) During the three and nine months ended September 30, 2019, we reported a GAAP net loss and an adjusted net income. Accordingly, there were 578,676 and 397,131 dilutive shares from RSUs included in the adjusted earnings per share calculation that were considered anti-dilutive when calculating the net loss per share.

            Share this entry
            • Share on Facebook
            • Share on Twitter
            • Share on WhatsApp
            • Share on LinkedIn
            • Share by Mail
            https://www.hyperspring.com/wp-content/uploads/2020/11/Financial-News-Image.png 245 245 Sunny Demattio https://gses.com/wp-content/uploads/2022/11/GSE-Solutions_tag-22a.png Sunny Demattio2020-11-16 16:18:012021-01-15 10:53:29GSE Solutions Announces Third Quarter 2020 Financial Results

            Company Contact
            Sunny DeMattio
            Marketing & Communications Director
            GSE Solutions
            410.970.7931

            Kyle Loudermilk
            Chief Executive Officer
            GSE Solutions
            410.970.7800

            Lytham Partners
            Adam Lowensteiner
            Vice President
            gvp@lythampartners.com
            646.829.9702

            Topics

            • Acquisitions
            • Financials
            • Customer Wins
            • General News
            • Partnerships
            • Events & Speaking
            • Products & Solutions

            Archive

            • 2023
            • 2022
            • 2021
            • 2020
            • 2019
            • 2018
            • 2017
            • 2015
            • 2014
            • 2013
            GSE Solutions
            © 2023. All rights reserved.
            Privacy Policy

            Navigation

            • Investor Center
            • Jobs & Careers
            • Contact Us
            • Press Releases
            • Follow Us on LinkedIn

            Contact Us

            Scroll to top

            This site uses cookies to improve your browsing experience; the website may not work as expected without them. By continuing to browse this site, you consent to the use of cookies.

            OKLearn More

            Cookie and Privacy Settings



            How we use cookies

            We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

            Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

            Essential Website Cookies

            These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

            Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

            We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

            We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

            Other external services

            We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

            Google Webfont Settings:

            Google Map Settings:

            Google reCaptcha Settings:

            Vimeo and Youtube video embeds:

            Privacy Policy

            You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

            Accept settingsHide notification only