• 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 Reports First Quarter 2022 Financial Results

            May 16, 2022/in Financials, General News

            COLUMBIA, Md., May 16, 2022 /PRNewswire/ — GSE Systems, Inc. (“GSE Solutions”, “GSE”, or “the Company”) (Nasdaq: GVP), a leader in delivering and supporting engineering, compliance, simulation, training and workforce solutions that support decarbonization of the power industry, today announced its financial results for the first quarter (“Q1”) ended March 31, 2022.

            Q1 2022 Business and Financial Highlights

            • Company orders in Q1 2022 were $11.1 million, compared to $13.0 million in Q1 2021.
            • Performance Improvement Solutions orders in Q1 2022 was $6.4 million, up 14.3% from $5.6 million in Q1 2021.
            • Company was awarded additional contracts for Thermal Performance Optimization and Regulatory Programs.
            • Backlog at March 31, 2022, was $40.1 million, including $31.9 million of Performance Improvement Solutions backlog, and $8.2 million of Workforce Solutions backlog, which is relatively stable from Q4 2021 levels.
            • Entered into agreement for Convertible Note and repaid in full, all outstanding line-of-credit indebtedness of $1.8 million.
            • During Q1 2022, the Company received Employee Retention Credit refunds of $1.1 million, with remaining refunds due of $3.1 million as of March 31, 2022.
            • Ended Q1 with cash, cash equivalents and restricted cash of $7.0 million, including restricted cash of $1.6 million.

            Management Commentary

            “I am pleased with the progress made during the first quarter, whereby we continue to see signs of improvement in the industry.  Additionally, we were able to improve our capital structure and balance sheet in a very timely manner. This has enabled us to make key investments during the quarter to prepare GSE for future organic growth opportunities, especially as our end markets continue a path towards normalization following the pandemic induced slowdown over the past two years, including much of 2021,” commented Kyle J. Loudermilk, GSE’s President and Chief Executive Officer.  “While the first quarter was a bit of a pause from the strong second half of 2021, our backlog has remained solid, and we have a solid pipeline of opportunities to pursue. We remain optimistic about the direction of the company for the remainder of the fiscal year. In the near-term, we believe that the upgrades of power plants that were delayed as a result of the pandemic has created a backlog of projects that will require GSE’s solutions. Longer term, the macro trends towards grid stability, energy security and decarbonization are in our favor, providing a solid foundation to be optimistic about the future.”

            Emmett Pepe, CFO of GSE Systems, added, “From a capital perspective, we made key improvements, including the issuance of a convertible note, which was used to repay in full the prior line of credit. The financing has also enabled us to make some additional hires and investments into our divisions to place the company in a solid position for growth by identifying and winning additional opportunities. We have received cumulative Employee Retention Credit refunds through the CARES Act of approximately $1.9 million through March 31, 2022 and subsequently received refunds of approximately $1.0 million in Q2. The company is expecting to receive the remaining refunds of approximately $2.1 million in the next three to six months. The receipt of these credits enhances the company’s cash position and allows the company to make necessary investments for the future.”

            Q1 2022 FINANCIAL RESULTS

            Orders in Q1 2022 were $11.1 million, a decrease of 14.6% compared to $13.0 million in Q1 2021. Orders for Performance Engineering increased 14.3% to $6.4 million in Q1 2022 compared to $5.6 million in Q1 2021. For Workforce Solutions, orders were $4.7 million in Q1 2022, compared to $7.4 million in Q1 2021.

            Revenue during Q1 2022 was $12.3 million, a decrease of 6.3% compared to $13.1 million in Q1 2021 and a decrease of 11.5% compared to $13.9 million in Q4 2021. The decrease of revenue was primarily due to a decline in software license sales as well as software maintenance renewals from an exceptional level in Q4.  This is beginning to reflect an emerging seasonality of the software business, as this business continued to grow significantly over each of the last three years and should grow sequentially throughout the calendar year, with many renewals occurring in Q4.

            Performance Improvement Solutions revenue was $6.4 million in Q1 2022 compared to $6.8 million in Q4 2021, and $7.1 million in Q1 2021. The sequential change was due to a decline in software license sales from an exceptional level in Q4, reflecting natural seasonality of the software business as this business continued to grow over each of the last three years. The year over year change was primarily due to several significant System Design and Build (“SDB”) projects ending in the prior fiscal year and delays in commencing new contracts remotely due to the COVID-19 pandemic.

            Workforce Solutions revenue was $5.9 million in Q1 2022 compared to $7.0 million in Q4 2021, and $6.0 million in Q1 2021. The sequential change is due to a minor reduction in staffing needs from our major customers in Q1 2022.

            Gross profit in Q1 2022 was $2.4 million, or 19.8% of revenue. This compared to gross profit of $2.9 million, or 22.3% of revenue in Q1 2021, and $3.1 million, or 22.0% of revenue in Q4 2021. Gross margin was impacted by the mix of business shifting to lower margin projects.

            Operating expenses in Q1 2022 were $5.0 million compared to $4.3 million in Q1 2021. Operating expenses was $4.9 million in Q4 2021. Operating expenses were slightly elevated due to some additional corporate expenditures, such as increases in professional audit fees and corporate insurance costs.

            Operating loss was approximately $(2.6) million in Q1 2022, compared $(2.2) million in Q1 2021. Operating loss was $(1.8) million in Q4 2021.

            Net loss in Q1 2022 was $(3.4) million or $(0.16) per basic and diluted share, compared to $(2.2) million or $(0.11) per basic and diluted share in Q1 2021. Net loss was $(1.9) million or $(0.09) per basic and diluted share in Q4 2021.

            Adjusted net loss1 totaled $(2.2) million, or $(0.16) per diluted share in Q1 2022, compared to adjusted net loss of $(1.0) million, or $(0.05) per diluted share, in Q1 2021. Adjusted net income1 totaled $(1.1) million, or $(0.05) per diluted share in Q4 2021.

            Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for Q1 2022 was approximately $(2.7) million, compared to $(1.7) million in Q1 2021. EBITDA for Q4 2021 was approximately $(1.4) million.

            Adjusted EBITDA1 $(1.7) million in Q1 2022, compared to $(0.8) million in Q1 2021. Adjusted EBITDA1 totaled $(1.1) million in Q4 2021.

            Backlog at March 31, 2022, was $40.1 million, including $31.9 million of Performance Improvement Solutions backlog, and $8.2 million of Workforce Solutions backlog.

            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”.

            CONFERENCE CALL

            GSE Systems has scheduled a conference call for today, May 16, 2022 at 4:30 p.m. ET (1:30 p.m. PT) to review these results. Interested parties can access the conference call by dialing (833) 974-2453 or (412) 317-5784 or can listen via a live Internet webcast at: https://app.webinar.net/5vmZKODabJ4. Access to the link is also available in the Investor Relations section of the Company’s website at: https://www.gses.com/about/investors/.

            A teleconference replay of the call will be available for seven days at (877) 344-7529 or (412) 317-0088, confirmation # 9497259. A webcast replay will be available in the Investor Relations section of the Company’s website at https://www.gses.com/about/investors/ for 90 days.

            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 allow customers to achieve the performance they imagine. 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 proven, with over four decades of experience, more than 1,100 installations, and 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.

             

            GSE SYSTEMS, INC. AND SUBSIDIARIES

            Condensed Consolidated Statements of Operations

            (in thousands, except share and per share data)   

            Three Months ended
            March 31,
            2022 2021
            (unaudited) (unaudited)
            Revenue $12,275 $13,104
                 Cost of revenue 9,848 10,176
            Gross profit 2,427 2,928
                 Selling, general and administrative 4,507 3,734
                 Research and development 142 157
                 Restructuring charges – 808
                 Depreciation 72 76
                 Amortization of definite-lived intangible assets 260 340
                 Total operating expenses 4,981 5,115
            Operating loss (2,554) (2,187)
                 Interest expense, net (148) (54)
                 Change in fair value of derivative instruments, net (581) –
                 Other income (expense), net 16 1
            Loss before income taxes (3,267) (2,240)
                 Provision for income taxes 167 (35)
            Net loss $(3,434) $(2,205)
            Net loss per common share – basic and diluted $(0.16) $(0.11)
            Weighted average shares outstanding – Basic and Diluted 20,980,046 20,628,669

             

            GSE SYSTEMS, INC. AND SUBSIDIARIES

            CONSOLIDATED BALANCE SHEETS

            (in thousands, except share and per share data)

            March 31, 2022 December 31, 2021
            (unaudited) (audited)
            ASSETS
            Current assets:
                 Cash and cash equivalents $ 5,448 $ 3,550
                 Contract receivables, net 10,421 11,257
                 Prepaid expenses and other current assets 4,299 5,262
                      Total current assets 20,168 20,069
            Equipment, software and leasehold improvements, net 850 839
            Software development costs, net 555 532
            Goodwill 13,339 13,339
            Intangible assets, net 2,760 3,020
            Restricted cash – long term 1,583 –
            Operating lease right-of-use assets, net 1,047 1,200
            Other assets 52 52
                      Total assets $ 40,354 $ 39,051
            LIABILITIES AND STOCKHOLDERS‘ EQUITY
            Current liabilities:
                 Line of credit $ – $ 1,817
                 Current portion of long-term note 830 –
                 Accounts payable 1,133 1,179
                 Accrued expenses 1,474 1,358
                 Accrued compensation 2,235 1,452
                 Billings in excess of revenue earned 5,180 5,029
                 Accrued warranty 682 667
                 Income taxes payable 1,781 1,654
                 Derivative liabilities 1,611 –
                 Other current liabilities 1,625 1,883
                      Total current liabilities 16,551 15,039
            Long-term note, less current portion 2,955 –
            Operating lease liabilities noncurrent 502 790
            Other noncurrent liabilities 283 179
                      Total liabilities 20,291 16,008
            Commitments and contingencies (Note 16)
            Stockholders’ equity:
                 Preferred stock $0.01 par value; 2,000,000 shares authorized; no shares issued
            and outstanding
            – –
                 Common stock $0.01 par value; 60,000,000 shares authorized, 22,609,043 and
            22,533,005 shares issued, 21,010,132 and 20,934,094 shares outstanding,
            respectively
            226 225
                 Additional paid-in capital 80,777 80,505
                 Accumulated deficit (58,018) (54,584)
                 Accumulated other comprehensive income (loss) 77 (104)
                 Treasury stock at cost, 1,598,911 shares (2,999) (2,999)
                      Total stockholders’ equity 20,063 23,043
                      Total liabilities and stockholders’ equity $ 40,354 $ 39,051

            The accompanying notes are an integral part of these consolidated financial statements.

            EBITDA and Adjusted EBITDA Reconciliation (in thousands)

            References to “EBITDA” mean net (loss) income, before taking into account interest expense (income), provision for income taxes, depreciation and amortization. References to Adjusted EBITDA exclude the impact of restructuring charges, stock-based compensation expense and change in fair value of derivative instruments. 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 our results because it excludes certain items that are not directly related to our 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 Adjusted EBITDA 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 Adjusted EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G follows:

            Three Months ended
            March 31,
            2022 2021
            (unaudited) (unaudited)
            Net loss $(3,434) $(2,205)
            Interest expense, net 148 54
            Provision for income taxes 167 (35)
            Depreciation and amortization 415 513
            EBITDA (2,704) (1,673)
            Restructuring charges – 808
            Stock-based compensation expense 408 38
            Change in fair value of derivative instruments, net 581 –
            Adjusted EBITDA $(1,715) $(827)

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

            References to Adjusted net (loss) income exclude the impact of restructuring charges, stock-based compensation expense, change in fair value of derivative instruments and amortization of intangible assets related to acquisitions. Adjusted Net Income and adjusted earnings per share (adjusted EPS) are not measures of financial performance under GAAP. Management believes adjusted net income and adjusted EPS, in addition to other GAAP measures, are useful to investors to evaluate our results because they exclude certain items that are not directly related to our 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:

            Three Months ended
            March 31,
            2022 2021
            (unaudited)  (unaudited)
            Net loss $(3,434) $(2,205)
            Restructuring charges – 808
            Stock-based compensation expense 408 38
            Change in fair value of derivative instruments, net 581 –
            Amortization of intangible assets related to acquisitions 260 340
            Adjusted net loss $(2,185) $(1,019)
            Adjusted loss per common share – Diluted $(0.10) $(0.05)
            Weighted average shares outstanding – Diluted(a) 20,980,046 20,628,669
            (a) During the three months ended March 31, 2022 and 2021, we reported a GAAP net loss and an adjusted net loss. Accordingly there was no 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://gses.com/wp-content/uploads/2022/11/GSE-Solutions_tag-22a.png 0 0 Sunny Demattio https://gses.com/wp-content/uploads/2022/11/GSE-Solutions_tag-22a.png Sunny Demattio2022-05-16 16:15:482022-05-16 15:43:19GSE Reports First Quarter 2022 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