COLUMBIA, Md. — May 6, 2021 — Global workforce transformation solutions provider GP Strategies Corporation (NYSE: GPX) today reported financial results for the quarter ended March 31, 2021.


  • Gross profit of $21.4 million, or 18.7% on revenue of $114.6 million, for the first quarter of 2021 compared to $17.6 million, or 13.7% on revenue of $128.3 million, for the first quarter of 2020
  • Net income of $1.7 million for the first quarter of 2021 compared to a net loss of $1.3 million for the first quarter of 2020
  • Earnings per share of $0.09 for the first quarter of 2021 compared to a net loss per share of $(0.08) for the first quarter of 2020
  • Adjusted earnings per share of $0.24 for the first quarter of 2021 compared to an adjusted loss per share $(0.03) for the first quarter of 2020
  • We had no long term-debt as of March 31, 2021 compared to $12.7 million as of December 31, 2020

“The first quarter reflects the benefits of our solid execution, through what was a challenging time for many parts of the economy, and we begin 2021 from a position of strength with the ability to capitalize on the opportunities ahead,” stated Adam Stedham, Chief Executive Officer and President of GP Strategies. “Our gross margin percentage, for the first quarter of 2021, is the strongest for the company in the last ten years for a first quarter.  We believe that the learning industry has macroeconomic tailwinds that will propel our growth.  We end the first quarter with improving market conditions, a focused strategy, no debt, significant availability under our credit facility and a higher margin profile.”


Our revenue decreased $13.7 million or 10.7% during the first quarter of 2021 compared to the first quarter of 2020. The net decrease is due to a $12.6 million decrease in our North America segment, a $1.9 million decrease in our EMEA segment partially offset by a $0.8 million increase in our Emerging Markets segment.  Excluding the effects of COVID-19, divestitures, and foreign  currency exchange rate changes, our revenue decreased $6.7 million for the first quarter of 2021 compared to the first quarter of 2020 primarily due to the timing of the shipment of publications from the first quarter of 2021 to the second quarter of 2021.  We estimate that the impact of COVID-19 resulted in at least a $7.0 million decrease in our revenue in the first quarter of 2021 compared to the first quarter of 2020 primarily due to the postponement of certain training events and other delays in client projects. In addition, our revenue decreased $2.8 million during the first quarter of 2021 due to a divested revenue stream resulting from the sale of our IC Axon Division on October 1, 2020. Offsetting these decreases, the foreign currency exchange rate changes resulted in a $2.8 million increase in U.S. dollar reported revenue during the first quarter of 2021.

Operating income (loss)

Operating income (loss) increased $3.6 million to operating income of $3.2 million for the first quarter of 2021 compared to an operating loss of $0.4 million for the first quarter of 2020.  The net increase is primarily due to a $3.8 million increase in gross profit to $21.4 million, or 18.7% of revenue from $17.6 million, or 13.7% of revenue primarily due to operating restructuring initiatives implemented in fiscal year 2020 that resulted in reduced costs and improved efficiencies.  In addition, general and administrative expenses decreased $2.4 million.  These favorable changes were partially offset by a $1.1 million gain on the sale of our Alternative Fuels Division in the first quarter of 2020, a $0.7 million restructuring charge incurring in the first quarter of 2021, a $0.6 million increase in sales and marketing expenses and a $0.3 million loss on change in fair value of contingent consideration in the first quarter of 2021.

Net income (loss)

Net income was $1.7 million, or $0.09 per share, for the first quarter of 2021 compared to a net loss of $1.3 million, or $(0.08) per share, for the first quarter of 2020. After accounting for special items, which are set forth in the Non-GAAP Reconciliation – Adjusted EPS below, Adjusted EPS was $0.24 and $(0.03) for the first quarter of 2021 and 2020, respectively.

Investor Call

The Company has scheduled an investor conference call and webcast for 12:00 p.m. Eastern Time on Thursday, May 6, 2021. 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 + 1 (412) 902-6747 internationally, and requesting the “GP Strategies Call.” 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 10155409.

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), and free cash flow (cash flow from operating activities less capital expenditures). 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 U.S. GAAP equivalents, see the Non-GAAP Reconciliations, along with related footnotes, below.

About GP Strategies

GP Strategies Corporation (NYSE: GPX) is a global workforce transformation solutions provider of 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, automotive, financial services, technology, and other commercial and government customers.

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, including statements about the anticipated effects of the COVID-19 pandemic and related events on our business and results of operations. 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, including the impact of the COVID-19 pandemic and related events that are beyond our control. 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.