GP Strategies Corp. (GPX, Financial) filed Quarterly Report for the period ended 2009-06-30.
GP Strategies Corporation whose operating subsidiary is General Physics Corporation is a NYSE listed company. General Physics is a global provider of training and e-Learning solutions management consulting and engineering services improving the effectiveness of organizations by customizing solutions that enhance an organization\'s people processes or technology. GP Strategies Corp. has a market cap of $100.9 million; its shares were traded at around $6.4 with a P/E ratio of 10.3 and P/S ratio of 0.4.
For the three months ended June 30, 2009, we had a loss before income tax expense of $6.4 million compared to income before income tax expense of $5.1 million for the three months ended June 30, 2008. The decrease was primarily due to a goodwill and intangible asset impairment loss of $10.2 million recognized during the second quarter of 2009 and a decrease in operating income of $1.4 million, the components of which are discussed below. Net loss was $6.6 million, or $(0.42) per diluted share, for the three months ended June 30, 2009, compared to net income of $3.0 million, or $0.18 per diluted share, for the three months ended June 30, 2008.
· $2.6 million decrease in U.S. dollar revenue recognized from our operations in the United Kingdom, which consists of a $1.3 million decrease in revenue due to the unfavorable effect of currency exchange rates and a net revenue decrease of $1.9 million primarily due to a decrease in volume with training outsourcing customers, offset by an increase in revenue of $0.6 million due to expansion of government funded training programs in the UK;
Income tax expense was $0.2 million for the second quarter of 2009 compared to $2.1 million for the second quarter of 2008. The decrease is due to a decrease in income before income tax expense for the second quarter of 2009 compared to the second quarter of 2008. We recognized a $1.5 million income tax benefit related to the $10.2 million goodwill and intangible asset impairment loss incurred during the quarter for the portion of goodwill which was deductible for tax purposes. Excluding the impact of the impairment loss, the effective income tax rate was 45.7% and 41.4% for the three months ended June 30, 2009 and 2008, respectively. The increase in the effective income tax rate is primarily due to the decrease in income before income taxes and an increase in tax expense in the second quarter of 2009 compared to the second quarter of 2008 related to disregarded foreign entities for tax purposes. Income tax expense for the quarterly periods is based on an estimated annual effective tax rate which includes the federal and state statutory rates, permanent differences, and other items that may have an impact on income tax expense.
For the six months ended June 30, 2009, we had a loss before income tax expense of $3.9 million compared to income before income tax expense of $10.0 million for the six months ended June 30, 2008. The decrease was primarily due to a goodwill and intangible asset impairment loss of $10.2 million recognized during the second quarter of 2009 and a decrease in operating income of $3.9 million, the components of which are discussed below. Net loss was $5.2 million, or $(0.32) per diluted share, for the six months ended June 30, 2009, compared to net income of $5.8 million, or $0.35 per diluted share, for the six months ended June 30, 2008.
· $5.0 million decrease in U.S. dollar revenue recognized from our operations in the United Kingdom, which consists of a $2.8 million decrease in revenue due to the unfavorable effect of currency exchange rates and a net revenue decrease of $3.6 million primarily due to a decrease in volume with training outsourcing customers, offset by an increase in revenue of $1.4 million due to expansion of government funded training programs in the UK;
Read the The complete ReportGPX is in the portfolios of John Keeley of Keeley Fund Management.
GP Strategies Corporation whose operating subsidiary is General Physics Corporation is a NYSE listed company. General Physics is a global provider of training and e-Learning solutions management consulting and engineering services improving the effectiveness of organizations by customizing solutions that enhance an organization\'s people processes or technology. GP Strategies Corp. has a market cap of $100.9 million; its shares were traded at around $6.4 with a P/E ratio of 10.3 and P/S ratio of 0.4.
Highlight of Business Operations:
Since January 2006, our Board of Directors has authorized a total of $23 million of repurchases of our common stock from time to time in the open market, subject to prevailing business and market conditions and other factors. During the years ended December 31, 2008, 2007 and 2006, we repurchased approximately 1,091,000, 678,500 and 420,000 shares, respectively, of our common stock in the open market for a total cost of approximately $8.8 million, $6.5 million and $3.1 million, respectively. During the three and six months ended June 30, 2009, we repurchased approximately 109,000 and 405,000 shares, respectively, of our common stock in the open market for a total cost of approximately $0.5 million and $1.3 million, respectively. As of June 30, 2009, there was approximately $3.2 million available for future repurchases under the buyback program. There is no expiration date for the repurchase program.For the three months ended June 30, 2009, we had a loss before income tax expense of $6.4 million compared to income before income tax expense of $5.1 million for the three months ended June 30, 2008. The decrease was primarily due to a goodwill and intangible asset impairment loss of $10.2 million recognized during the second quarter of 2009 and a decrease in operating income of $1.4 million, the components of which are discussed below. Net loss was $6.6 million, or $(0.42) per diluted share, for the three months ended June 30, 2009, compared to net income of $3.0 million, or $0.18 per diluted share, for the three months ended June 30, 2008.
· $2.6 million decrease in U.S. dollar revenue recognized from our operations in the United Kingdom, which consists of a $1.3 million decrease in revenue due to the unfavorable effect of currency exchange rates and a net revenue decrease of $1.9 million primarily due to a decrease in volume with training outsourcing customers, offset by an increase in revenue of $0.6 million due to expansion of government funded training programs in the UK;
Income tax expense was $0.2 million for the second quarter of 2009 compared to $2.1 million for the second quarter of 2008. The decrease is due to a decrease in income before income tax expense for the second quarter of 2009 compared to the second quarter of 2008. We recognized a $1.5 million income tax benefit related to the $10.2 million goodwill and intangible asset impairment loss incurred during the quarter for the portion of goodwill which was deductible for tax purposes. Excluding the impact of the impairment loss, the effective income tax rate was 45.7% and 41.4% for the three months ended June 30, 2009 and 2008, respectively. The increase in the effective income tax rate is primarily due to the decrease in income before income taxes and an increase in tax expense in the second quarter of 2009 compared to the second quarter of 2008 related to disregarded foreign entities for tax purposes. Income tax expense for the quarterly periods is based on an estimated annual effective tax rate which includes the federal and state statutory rates, permanent differences, and other items that may have an impact on income tax expense.
For the six months ended June 30, 2009, we had a loss before income tax expense of $3.9 million compared to income before income tax expense of $10.0 million for the six months ended June 30, 2008. The decrease was primarily due to a goodwill and intangible asset impairment loss of $10.2 million recognized during the second quarter of 2009 and a decrease in operating income of $3.9 million, the components of which are discussed below. Net loss was $5.2 million, or $(0.32) per diluted share, for the six months ended June 30, 2009, compared to net income of $5.8 million, or $0.35 per diluted share, for the six months ended June 30, 2008.
· $5.0 million decrease in U.S. dollar revenue recognized from our operations in the United Kingdom, which consists of a $2.8 million decrease in revenue due to the unfavorable effect of currency exchange rates and a net revenue decrease of $3.6 million primarily due to a decrease in volume with training outsourcing customers, offset by an increase in revenue of $1.4 million due to expansion of government funded training programs in the UK;
Read the The complete ReportGPX is in the portfolios of John Keeley of Keeley Fund Management.
