GP Strategies Reports Earnings of $0.11 Per Share for the Third Quarter of 2006 Compared to $0.05 Per Share for the Third Quarter of 2005.ELKRIDGE, Md. -- GP Strategies Corporation (NYSE NYSE See: New York Stock Exchange :GPX GPX - Early system on UNIVAC II. Listed in CACM 2(5):16 (May 1959). ), a global provider of training and e-Learning solutions, management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects , and engineering services through its operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. General Physics Corporation, today reported strong third quarter 2006 results. Third Quarter Highlights: * Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $3.1 million, up 17.3% compared to the third quarter of 2005 * Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before interest expense and income tax expense of $3.3 million, up 20.2% compared to the third quarter of 2005 * Income from continuing operations of $1.7 million, up 19.7% compared to the third quarter of 2005 * Net cash provided by operations of $9.8 million for the nine months ended September 30, 2006 "I am pleased to report that the Company achieved strong earnings per share for the third quarter ended September 30, 2006, which represented an increase of over 100% compared to the corresponding period in 2005," said Scott N. Greenberg, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of GP Strategies. "In addition, we continue to demonstrate progress in expanding our global footprint and currently have over 15 people working on projects in India, with an office in China on the horizon. As a total solutions provider, GP offers customers subject matter expertise and extensive training experience to support customers on a worldwide basis." Third Quarter 2006 Results Revenue was $44.1 million for both the third quarter of 2006 and third quarter of 2005. While revenue in total was flat year over year, there was an increase of $3.3 million in revenue in the Manufacturing & BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra segment, offset by a decrease of $3.3 million in revenue for the Process, Energy & Government segment. During the third quarter of 2006, operating income increased $0.5 million to $3.1 million, compared to $2.6 million in the third quarter of 2005. The increase in operating income is attributable to an increase in gross profit of $0.2 million and a $0.2 million reduction in selling, general and administrative expenses during the third quarter of 2006 compared to the third quarter of 2005. During the third quarter of 2006, income from continuing operations increased $0.3 million to $1.7 million, compared to $1.5 million for the third quarter of 2005. The increase is primarily attributable to increased operating income discussed above, as well as an increase in other income. During the third quarter of 2006, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased $0.06 to $0.11 per share, compared to $0.05 per share for the third quarter of 2005. The increase is attributable to increased operating income discussed above, a reduction in common shares outstanding due to the capital stock restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). in January 2006 and repurchases of common stock in the open market, and the loss on discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of GSE GSE general somatic efferent system. in 2005 which did not recur in 2006. Nine Months ended September 30, 2006 Results Revenue was $133.4 million for the nine months ended September 30, 2006 compared to $131.3 million for the same period of 2005. The $2.1 million net increase in revenue is attributable to a $8.6 million increase in the Manufacturing & BPO segment, offset by a $6.5 million decrease in revenue in the Process, Energy & Government segment. During the nine months ended September 30, 2006, operating income increased $1.2 million to $8.8 million, compared to $7.6 million for the same period of 2005. The increase in operating income is attributable to an increase in gross profit of $1.0 million, primarily due to the net increase in revenue, and a decrease in selling, general and administrative expenses of $0.2 million. During the nine months ended September 30, 2006, income from continuing operations increased $1.1 million to $4.9 million, compared to $3.7 million for the same period of 2005. The increase is primarily due to increased operating income discussed above, as well as an increase in other income. During the nine months ended September 30, 2006, diluted earnings per share increased $0.14 to $0.28 per share, compared to $0.14 per share for the third quarter of 2005. The increase is attributable to increased operating income discussed above, a reduction in common shares outstanding due to the capital stock restructuring in January 2006 and repurchases of common stock in the open market, and the loss on discontinued operations of GSE in 2005 which did not recur in 2006. The Company has scheduled an investor conference call for 10:00 a.m. ET on November 9, 2006. In addition to prepared remarks from management, there will be a question and answer session on the call. The dial-in number for the live conference call will be 888-633-3324 using conference ID number 1246463. A telephone replay of the call will also be available beginning at 1:00 p.m. on November 9th, until 11:59 p.m. on November 23rd. To listen to the replay, dial 800-642-1687 or 706-645-9291, using conference ID number 1246463. About GP Strategies Corporation GP Strategies, whose operating subsidiary is General Physics Corporation, is a NYSE listed company listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → (GPX). General Physics is a global provider of training and e-Learning solutions, management consulting, and engineering services, improving the effectiveness of organizations by customizing solutions that enhance an organization's people, processes or technology. Clients include Fortune 1000 companies and government customers. Additional information about GP Strategies may be found at www.gpstrategies.com and about General Physics at www.gpworldwide.com. This report contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward looking statements. Forward-looking statements are not statements of historical facts, but rather reflect our current expectations concerning future events and results. We use words such as "expects," "intends," "believes," "may," "will" and "anticipates" to indicate forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, but not limited to, those factors set forth under Item 1A, Risk Factors, in our 2005 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and those other risks and uncertainties detailed in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. We caution that these risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors emerge from time to time. We cannot predict these new risk factors, nor can we assess the effect, if any, of the new risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ from those expressed or implied by these forward-looking statements. If any one or more of these expectations and assumptions proves incorrect, actual results will likely differ materially from those contemplated by the forward-looking statements. Even if all of the foregoing assumptions and expectations prove correct, actual results may still differ materially from those expressed in the forward-looking statements as a result of factors we may not anticipate or that may be beyond our control. While we cannot assess the future impact that any of these differences could have on our business, financial condition, results of operations and cash flows or the market price of shares of our common stock, the differences could be significant. We do not undertake to update any forward-looking statements made by us, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this report. TABLES FOLLOW The following table summarizes the consolidated results of operations of GP Strategies Corporation ("the Company" or "GP Strategies") for the three and nine months ended September 30, 2006 and 2005. As previously announced, GP Strategies completed the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of GSE Systems, Inc. (GSE) on September 30, 2005. Subsequent to the spin-off, the Company's operations consist of General Physics Corporation ("General Physics") and the Company ceased to have any ownership interest in GSE. The operations of GSE have been reclassified to discontinued operations for the prior periods presented. [TABLE OMITTED] The following table summarizes the condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. data of GP Strategies, as of September 30, 2006 and December 31, 2005 (in thousands). [TABLE OMITTED] (1) On January 19, 2006, the Company completed a restructuring of its capital stock, which included the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 2,721,500 shares of its common and Class B stock, and the exchange of 600,000 shares of its Class B stock into 600,000 shares of common stock, and had the effect of eliminating all outstanding shares of Class B stock. The repurchase and exchange was financed with approximately $20.3 million of cash on hand. |
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