GP Strategies Reports Strong Fourth Quarter and Full Year 2012 Financial Results

   GP Strategies Reports Strong Fourth Quarter and Full Year 2012 Financial
                                   Results

PR Newswire

ELKRIDGE, Md., Feb. 26, 2013

ELKRIDGE, Md., Feb. 26, 2013 /PRNewswire/ --Global performance improvement
solutions provider GP Strategies Corporation (NYSE: GPX) today reported
financial results for the quarter and fiscal year ended December 31, 2012.

Overview of Fourth Quarter 2012 Results:

  oRevenue of $106.0 million for fourth quarter of 2012, up $12.1 million or
    13% compared to $93.9 million for fourth quarter of 2011
  oOperating income of $10.2 million for fourth quarter of 2012, up $2.0
    million or 24% compared to $8.2 million for fourth quarter of 2011
  oEBITDA of $12.4 million, up $2.1 million or 21% for fourth quarter of 2012
    compared to $10.3 million for fourth quarter of 2011
  oCash flow from operations of $8.3 million for fourth quarter of 2012, up
    $2.7 million or 47% compared to $5.6 million for fourth quarter of 2011

The Company's revenue increased 13% or $12.1 million during the fourth quarter
of 2012 compared to the fourth quarter of 2011. The revenue growth was driven
by previously completed acquisitions combined with strong organic growth. The
Learning Solutions, Sandy Training & Marketing and Energy Services segments
achieved double-digit organic revenue growth during the fourth quarter of 2012
compared to the fourth quarter of 2011 due to increased training services for
several new and existing customers. Operating income increased 24% or $2.0
million during the fourth quarter of 2012 primarily due to a $3.2 million
increase in gross profit which was largely attributable to organic revenue
growth. Net income was $6.1 million, or $0.32 per diluted share, for the
fourth quarter of 2012 compared to $5.9 million, or $0.31 per diluted share,
for the fourth quarter of 2011. The fourth quarter 2011 results include a $0.9
million, or $0.05 per share, income tax benefit due to the reduction of a tax
liability. Excluding this item, diluted earnings per share increased $0.06
during the fourth quarter of 2012 compared to the fourth quarter of 2011.

The Company achieved record revenue of $401.6 million for the year ended
December 31, 2012, resulting in a 21% overall increase and 10% organic growth
over 2011. Operating income increased 28% or $7.7 million in 2012 to $35.7
million for the year ended December 31, 2012. Net income was $22.7 million, or
$1.18 per diluted share, for the year ended December 31, 2012 compared to
$17.9 million, or $0.94 per diluted share, for the year ended December 31,
2011.

"GP Strategies achieved record results for 2012, with strong organic growth
and contributions from acquired businesses continuing in the fourth quarter,"
commented Scott N. Greenberg, Chief Executive Officer of GP Strategies. "Our
free cash flow of approximately $22.8 million in 2012 enabled us to continue
to make strategic acquisitions while maintaining a strong balance sheet. By
our acquisition of BlessingWhite, we strengthened our ability to deliver
comprehensive leadership and professional development services to customers on
a global basis. We anticipate continued investment in our global platform in
2013."

Balance Sheet and Cash Flow Highlights

As of December 31, 2012, the Company had cash and cash equivalents of $7.8
million compared to $4.2 million as of December 31, 2011. The Company had no
short-term borrowings or long-term debt outstanding and had $50 million of
available borrowings under its line of credit as of December 31, 2012. Cash
provided by operating activities was $25.3 million for the year ended December
31, 2012 compared to $16.2 million for the year ended December 31, 2011.
During the quarter and year ended December 31, 2012, the Company repurchased
127,000 and 180,000 shares, respectively, of its common stock in the open
market for approximately $2.5 million and $3.4 million, respectively, in cash.

Investor Call

The Company has scheduled an investor conference call for 10:00 a.m. ET on
February 26, 2013. In addition to prepared remarks from management, there will
be a question and answer session on the call. The dial-in numbers for the live
conference call are 800-750-5849 or 212-231-2919, using conference ID number
21650133. A telephone replay of the call will also be available beginning at
12:00 p.m. on February 26^th, until 12:00 p.m. on March 12^th. To listen to
the replay, dial 800-633-8284 or 402-977-9140, using conference ID number
21650133.

Presentation of Non-GAAP Information

This press release contains non-GAAP financial measures, including EBITDA
(earnings before interest, income taxes, depreciation and amortization). The
Company believes this non-GAAP financial measure is useful to investors in
evaluating the Company's results. This measure should be considered in
addition to, and not as a replacement for, or superior to, either net income,
as an indicator of the Company's operating performance, or cash flow, as a
measure of the Company's liquidity. In addition, because EBITDA may not be
calculated identically by all companies, the presentation here may not be
comparable to other similarly titled measures of other companies. For a
reconciliation of this non-GAAP financial measure to the most comparable GAAP
equivalent, see the Non-GAAP Reconciliation – EBITDA, along with related
footnotes, below.

About GP Strategies

GP Strategies Corporation (NYSE: GPX) is a global performance improvement
solutions provider of training, eLearning solutions, management consulting and
engineering services. GP Strategies' solutions improve the effectiveness of
organizations by delivering innovative and superior training, consulting and
business improvement services, customized to meet the specific needs of its
clients. Clients include Fortune 500 companies, manufacturing, process and
energy industries, and other commercial and government customers. Additional
information may be found at www.gpstrategies.com.

Forward-Looking Statements

We make statements in this press release that are considered forward-looking
statements within the meaning of the Securities Exchange Act of 1934. 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. Except as required by law, we do not
intend to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.

TABLES FOLLOW

GP STRATEGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
                                   Quarter ended         Year ended
                                   December 31,          December 31,
                                   2012       2011       2012       2011
Revenue                            $105,985   $ 93,892   $401,572   $333,167
Cost of revenue                    86,560     77,626     329,601    276,533
 Gross profit                     19,425     16,266     71,971     56,634
Selling, general and               9,280      8,037      35,500     30,249
administrative expenses
Gain on reversal of deferred rent  -          -          -          1,041
liability
Gain (loss) on change in fair                                    
value of
                                   74         11         (789)      517
contingent consideration, net
Operating income                   10,219     8,240      35,682     27,943
Interest expense                   94         60         269        209
Other income                       127        159        389        657
 Income before income tax        10,252     8,339      35,802     28,391
expense
Income tax expense                 4,115      2,399      13,114     10,531
 Net income                      $  6,137  $  5,940  $ 22,688  $ 17,860
                                                                

Basic weighted average shares      19,083     18,778     18,956     18,766
outstanding
Diluted weighted average shares    19,333     19,050     19,275     19,010
outstanding


Per common share data:
 Basic earnings per share         $  0.32  $  0.32  $   1.20 $   0.95
 Diluted earnings per share       $  0.32  $  0.31  $   1.18 $   0.94
Other data:
EBITDA ^(1)                      $  12,397 $  10,257 $  44,042 $  34,787

(1) The term EBITDA (earnings before interest, income taxes, depreciation
and amortization) is a non-GAAP financial measure that the Company believes is
useful to investors in evaluating its results. For a reconciliation of this
non-GAAP financial measure to the most comparable GAAP equivalent, see the
Non-GAAP Reconciliation – EBITDA, along with related footnotes, below.



GP STRATEGIES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands)
(Unaudited)
                                       Quarter ended       Year ended
                                       December 31,        December 31,
                                       2012      2011      2012      2011
Revenue by segment:
Learning Solutions                     $ 46,119  $ 35,729 $161,455  $130,392
Professional & Technical Services      19,953    23,755    87,844    85,285
Sandy Training & Marketing             19,160    15,303    70,243    54,604
Performance Readiness Solutions ^(2)   12,984    13,183    55,794    40,079
Energy Services                        7,769     5,922     26,236    22,807
Total revenue                          $ 105,985 $ 93,892 $401,572  $333,167
Gross profit by segment:
Learning Solutions                     $ 8,902  $ 6,628  $ 31,355 $ 22,325
Professional & Technical Services      3,158     3,874     13,194    14,279
Sandy Training & Marketing             3,172     2,545     10,954    8,116
Performance Readiness Solutions ^(2)   1,724     1,198     7,762     4,662
Energy Services                        2,469     2,021     8,706     7,252
Total gross profit                     $ 19,425 $ 16,266 $ 71,971  $ 56,634
Operating income by segment:
Learning Solutions                     $ 4,538  $ 3,391  $ 16,487 $ 9,700
Professional & Technical Services      1,536     2,044     5,717     7,526
Sandy Training & Marketing             1,611     1,213     4,897     3,018
Performance Readiness Solutions ^(2)   541       (51)      2,548     601
Energy Services                        1,919     1,632     6,822     5,540
Gain on reversal of deferred rent      -         -         -         1,041
liability
Gain (loss) on change in fair value of                            

contingent consideration, net          74        11        (789)     517
Total operating income                 $ 10,219 $ 8,240  $ 35,682 $ 27,943
Supplemental Cash Flow Information:
Net cash provided by operating         $ 8,312  $ 5,638  $ 25,312 $ 16,199
activities
Capital expenditures                   (381)     (1,578)   (2,536)   (3,975)
Free cash flow                         $ 7,931  $ 4,060  $ 22,776  $ 12,224

(2) Formerly called the RWD segment.



GP STRATEGIES CORPORATION AND SUBSIDIARIES
Non-GAAP Reconciliation – EBITDA ^(3)
(In thousands)
(Unaudited)
                                                 

                              Quarter ended       Year ended
                              December 31,        December 31,
                              2012      2011      2012     2011
Net income ^(4)               $ 6,137  $ 5,940  $ 22,688 $ 17,860
Interest expense              94        60        269      209
Income tax expense            4,115     2,399     13,114   10,531
Depreciation and amortization 2,051     1,858     7,971    6,187
EBITDA                        $ 12,397 $ 10,257 $ 44,042 $ 34,787

(3) Earnings before interest, income taxes, depreciation and amortization
(EBITDA)is a widely used non-GAAP financial measure of operating performance.
It is presented as supplemental information that the Company believes is
useful to investors to evaluate its results because it excludes certain items
that are not directly related to the Company's core operating performance.
EBITDA is calculated by adding back to net income interest expense, income tax
expense, depreciation and amortization. EBITDA should not be considered as
substitutes either for net income, as an indicator of the Company's operating
performance, or for cash flow, as a measure of the Company's liquidity. In
addition, because EBITDA may not be calculated identically by all companies,
the presentation here may not be comparable to other similarly titled measures
of other companies.

(4) Net income includes the following infrequently occurring or
acquisition-related amounts:

  oIncome tax benefits of $1,602,000 in the third quarter of 2012 and
    $891,000 in the fourth quarter of 2011 on the reductions of uncertain tax
    position liabilities.
  oNet gain of $74,000 and net loss of $789,000, on the change in fair value
    of contingent consideration for the fourth quarter and year ended December
    31, 2012, respectively, for which no income tax benefit is recognized,
    compared to net gains of $11,000 and $517,000 for the fourth quarter and
    year ended December 31, 2011, respectively.



GP STRATEGIES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
                                                  December 31,
                                                  2012         2011
Current assets:
 Cash and cash equivalents                      $   7,761  $    4,151
 Accounts and other receivables                 83,597       67,134
 Costs and estimated earnings in excess of                  

billings on uncompleted contracts                 16,979       15,576
 Prepaid expenses and other current assets      10,143       8,863
 Total current assets                        118,480      95,724
Property, plant and equipment, net                5,511        5,562
Goodwill and other intangibles, net               118,693      108,460
Other assets                                      1,750        1,830
 Total assets                                $ 244,434    $  211,576
Current liabilities:
 Accounts payable and accrued expenses          $  47,457   $   42,500
 Billings in excess of costs and estimated                  

earnings on uncompleted contracts             21,877       17,266
 Total current liabilities                   69,334       59,766
Other noncurrent liabilities                      7,763        8,416
 Total liabilities                           77,097       68,182
Total stockholders' equity                        167,337      143,394
 Total liabilities and stockholders' equity  $ 244,434    $  211,576



© 2013 GP Strategies Corporation. All rights reserved. GP Strategies and the
GP Strategies logo design are trademarks of GP Strategies Corporation.

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SOURCE GP Strategies Corporation

Website: http://www.gpstrategies.com
Contact: Scott N. Greenberg, Chief Executive Officer, +1-410-379-3640; or
Sharon Esposito-Mayer, Chief Financial Officer, +1-410-379-3636; or Ann M.
Blank, Investor Relations, +1-410-379-3725