COLUMBIA, Md. — March 10, 2020 — Global performance improvement solutions provider GP Strategies Corporation (NYSE: GPX) today reported financial results for the quarter ended December 31, 2019.


  • Revenue of $155.4 million for fourth quarter of 2019 compared to $132.9 million for fourth quarter of 2018, and annual revenue of $583.3 million for full year 2019 compared to $515.2 million in 2018
  • Gross profit of $23.3 million, or 15.0% of revenue, for fourth quarter of 2019 compared to $18.3 million, or 13.8%, for fourth quarter of 2018
  • Diluted earnings per share of $0.56 for fourth quarter of 2019 compared to $0.02 per share for fourth quarter of 2018 (Adjusted EPS of $0.23 for fourth quarter of 2019 compared to $0.11 for fourth quarter of 2018 after adjusting for special items)
  • Cash flow from operations of $8.8 million for fourth quarter of 2019 compared to $7.7 million for fourth quarter of 2018
  • Backlog of $349.8 million as of December 31, 2019, a 10.0% increase compared to $318.0 million as of December 31, 2018

“In the fourth quarter of 2019, the Company achieved revenue growth of 17%, of which 12% was organic growth, compared to the fourth quarter of 2018,” stated Scott N. Greenberg, Chief Executive Officer of GP Strategies. “In addition, our Adjusted EBITDA increased by 46% for the fourth quarter of 2019 compared to the corresponding period of 2018. The progress that we’ve made in our business development efforts has translated into positive results for the quarter. We continued to improve our balance sheet and generated approximately $8.8 million of operating cash flow for the quarter. We were able to reduce our net debt position, after subtracting cash, to $74.7 million at December 31, 2019 compared to $103.1 million as of December 31, 2018. The improvement in our balance sheet gives us increased flexibility going forward.”

“We are seeing significant traction with our business development efforts which contributed to organic growth of 5% for 2019,” stated Adam Stedham, President of GP Strategies. “Both the TTi acquisition and our existing automotive services within our Business Transformation Services segment had strong 2019 revenue growth, exceeding the Company’s overall organic growth rate. This trend reinforces our confidence in the opportunities for GP Strategies within the global automotive industry. In addition, our work has ramped up on many of the previously announced managed services awards, resulting in increased revenue in our Workforce Excellence segment. Our backlog has increased from $318.0 million as of December 31, 2018 to $349.8 million as of December 31, 2019.”

The Company’s revenue increased $22.5 million, or 17.0%, to $155.4 million for the fourth quarter of 2019 from $132.9 million in the fourth quarter of 2018. Revenue in the Workforce Excellence segment increased $9.0 million, or 11.6%, primarily due to growth in managed learning services due to new outsourcing and content development contracts. Revenue in the Business Transformation Services segment increased $13.5 million, or 24.5%, due to revenue from the TTi Global acquisition completed in December 2018, as well as an increase in sales training services for automotive clients.  Revenue for the fiscal year ended December 31, 2019 was $583.3 million, up $68.1 million or 13.2% from 2018 revenue of $515.2 million. Foreign currency exchange rate changes resulted in decreases in U.S. dollar reported revenue of $0.3 million during the fourth quarter of 2019 and $7.5 million for the year ended December 31, 2019.

Operating income increased $12.9 million to $15.3 million for the fourth quarter of 2019 from $2.4 million for the fourth quarter of 2018 primarily due to a $12.1 million pre-tax gain on the sale of the Company’s tuition program management business in the fourth quarter of 2019. In addition, gross profit increased $5.0 million, or 27.4%, due to increased revenues, offset by a $3.1 million increase in general and administrative expenses.

Net income was $9.5 million, or $0.56 per share, for the fourth quarter of 2019 compared to $0.4 million, or $0.02 per share, for the fourth quarter of 2018. After accounting for special items, which are set forth in the Non-GAAP Reconciliation – Adjusted EPS below, Adjusted EPS was $0.23 for the fourth quarter of 2019 compared to $0.11 for the fourth quarter of 2018. Net income for the fiscal year ended December 31, 2019 was $15.2 million, or $0.90 diluted earnings per share compared to $9.8 million, or $0.59 diluted earnings per share for the fiscal year ended December 31, 2018.

Balance Sheet and Cash Flow Highlights

As of December 31, 2019, the Company had cash of $8.2 million compared to $13.4 million as of December 31, 2018. The Company had $82.9 million of long-term debt outstanding as of December 31, 2019 under its $200 million revolving credit facility compared to $116.5 million outstanding as of December 31, 2018.  Cash provided by operating activities was $13.4 million for the year ended December 31, 2019 compared to $11.2 million for the same period in 2018.

Investor Call

The Company has scheduled an investor conference call and webcast for 10:00 a.m. Eastern Time on March 10, 2020. Prepared remarks regarding the company’s financial and operational results will be followed by a question and answer period with GP Strategies’ executive management team. The conference call may be accessed via webcast at: or by calling +1 (833) 535-2204 within the US, or +(412) 902-6747 internationally, and requesting the “GP Strategies Conference.” The presentation slides broadcast via the webcast will also be available on the Investors section of GP Strategies’ website the morning of the call. Participants must be logged in via telephone to submit a question to management during the call. Participants may optionally pre-register for the webcast at

The webcast will be archived on the Investors section of GP Strategies’ website and will remain available for 90 days. Alternatively, a telephonic replay of the conference call will be available for one week and may be accessed by dialing +1 (877) 344-7529 in the US, or +1 (412) 317-0088 internationally, and requesting conference number 10139861.

Presentation of Non-GAAP Information

This press release contains non-GAAP financial measures, including Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization), Adjusted Earnings per Diluted Share (Adjusted EPS), backlog, free cash flow (cash flow from operating activities less capital expenditures), and organic revenue growth. The Company believes these non-GAAP financial measures are useful to investors in evaluating the Company’s results. These measures 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 these measures 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  Adjusted EBITDA and Adjusted EPS to the most comparable GAAP equivalents, see the Non-GAAP Reconciliations, along with related footnotes, below.

About GP Strategies

GP Strategies Corporation (NYSE: GPX) is a global performance improvement solutions provider of sales and technical training, digital learning 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

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.