GP Strategies Reports Net Income of $0.2 Million for the Quarter Ended March 31, 2002 Versus a Net Loss of $0.2 Million for the Quarter Ended March 31, 2001
NEW YORK--May 16, 2002--GP Strategies Corporation , a leader in workforce development and technical training, today announced results for the quarter ended March 31, 2002.Net sales were $40.2 million for the first quarter ended March 31, 2002 compared to net sales of $42.4 million for the quarter ended December 31, 2001 and $49.1 million for the quarter ended March 31, 2001. The decrease in revenues from the fourth quarter of 2001 was primarily attributable to a reduction in revenue from the automotive division and the e-Learning division of the manufacturing and process group. Revenue increases were experienced in alternative fuels, government training and domestic preparedness services and are expected to continue throughout the year.
For the quarter ended March 31, 2002, net income was $0.2 million, as compared to a net loss of $2.3 million for the quarter ended December 31, 2001 and a net loss of $0.2 million for the quarter ended March 31, 2001.
In January 2002, the company adopted Statement of Financial Accounting Standard ("SFAS") No. 142, Goodwill and Other Intangible Assets. SFAS 142 requires that goodwill and other intangible assets with indefinite useful lives no longer be amortized. The net income (loss) for the quarters ended March 31, 2002, December 31, 2001 and March 31, 2001, as adjusted for amortization expense that is no longer recorded, in accordance with SFAS No. 142, was $0.2 million, $(1.9 million ) and $0.2 million, respectively.
Results for the quarter ended March 31, 2002 reflect a gain on sale of marketable securities of $0.4 million and a non-cash credit on a deferred compensation plan of $0.6 million offset by a non-cash equity loss from Hydro Med Sciences of approximately $0.7 million.
About GP Strategies Corporation
GP Strategies, whose principal operating subsidiary is General Physics Corporation, is a NYSE listed company (GPX). General Physics is a workforce development company that improves the effectiveness of organizations by providing training, management systems and engineering services to meet the specific needs of clients. Programs have been developed for service managers and executives, engineers, sales associates, plant operators, the maintenance and purchasing workforces and information technology professionals in the public and private sectors in North and South America, Europe and Asia. Clients include Fortune 500 companies, manufacturing, process and energy industries, and other commercial and government customers. Additional information about General Physics may be found at www.gpworldwide.com.
The company has scheduled an investor conference call for 11:00 a.m. EDT today. The dial-in number for the live conference call will be 212-748-2818. A telephone replay of the call will also be available beginning at 12:00 noon on May 16. To listen to the replay, dial 800-633-8284 (858-812-6440 outside the United States) and enter reservation number 20609871.
The forward-looking statements contained herein reflect GP Strategies' management's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of GP Strategies, including, but not limited to those risks and uncertainties detailed in GP Strategies' periodic reports and registration statements filed with the Securities and Exchange Commission.
An unaudited comparative summary of GP Strategies' consolidated
net sales and net income (loss) for the quarters ended March 31, 2002,
December 31, 2001 and March 31, 2001 is as follows (in thousands):
Quarter Ended
--------------------------------
March 31, December 31, March 31,
2002 2001 2001
-------- -------- --------
General Physics $ 37,470 $ 40,030 $ 46,057
Other 2,756 2,407 3,057
-------- -------- --------
Net Sales $ 40,226 $ 42,437 $ 49,114
======== ======== ========
Quarter Ended
--------------------------------
March 31, December 31, March 31,
2002 2001 2001
-------- -------- --------
Sales $ 40,226 $ 42,437 $ 49,114
Costs of sales 34,778 37,876 42,755
-------- -------- --------
Gross margin 5,448 4,561 6,359
Selling, general and administrative
expenses (1)(2) (4,540) (6,846) (4,472)
Interest expense (754) (1,067) (1,400)
Investment and other (loss) income,
net (435) (627) 490
Loss on investments - (320) -
Restructuring reversals 214 568 373
Gain (loss) on marketable securities 440 2,818 (1,776)
-------- -------- --------
Income (loss) before income taxes 373 (913) (426)
Income tax (expense) benefit (168) (1,369) 182
-------- -------- --------
Net income (loss) $ 205 $ (2,282) $ (244)
======== ======== ========
Net income (loss) per share
Basic $ .01 $ (.19) $ (.02)
-------- -------- --------
Diluted $ .01 $ (.19) $ (.02)
-------- -------- --------
(1) Includes goodwill amortization of $0 for the quarter ended
March 31, 2002 and $0.7 million for the quarters ended
December 31, 2001 and March 31, 2001.
(2) Includes a non-cash credit (charge) on a deferred compensation
plan of $0.6 million for the quarter ended March 31, 2002 and
($0.7 million) and $1.1 million for the quarters ended
December 31, 2001 and March 31, 2001.