GP Strategies Corp. (GPX, Financial) filed Quarterly Report for the period ended 2010-03-31.
Gp Strategies Corp. has a market cap of $141.4 million; its shares were traded at around $7.6 with a P/E ratio of 15.2 and P/S ratio of 0.7. GPX is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
For the three months ended March 31, 2010, we had income before income tax expense of $3.7 million compared to $2.6 million for the three months ended March 31, 2009. The increase was primarily due to a $0.9 million gain on the change in estimated fair value of contingent consideration during the first quarter of 2010 related to acquisitions completed in 2009, which is discussed further below and in Note 4 to the Condensed Consolidated Financial Statements. In addition, excluding the gain on change in fair value of contingent consideration, operating income increased $0.3 million, the components of which are discussed below. Net income was $2.2 million, or $0.12 per diluted share, for the three months ended March 31, 2010, compared to net income of $1.5 million, or $0.09 per diluted share, for the three months ended March 31, 2009. During the three months ended March 31, 2010, diluted weighted average shares outstanding increased by 2,640,000 to 18,714,000 shares outstanding compared to 16,074,000 shares for the same period in 2009, primarily due to the equity investment by Sagard Capital Partners, L.P. in December 2009. The increase in shares outstanding resulted in a decrease in diluted earnings per share of $0.02 per share for the first quarter of 2010 compared to the first quarter of 2009.
· $6.8 million increase in revenue attributable to acquisitions completed during 2009, which includes $3.0 million for Milsom, $1.2 million for Option Six and $2.6 million for PerformTech;
The Companys cash balance increased $2.7 million from $10.8 million as of December 31, 2009 to $13.5 million as of March 31, 2010. The increase in cash and cash equivalents during the first quarter of 2010 resulted from cash provided by operating activities of $3.7 million, cash used in investing activities of $0.7 million, cash used in financing activities of $0.1 million and a $0.2 million negative effect due to exchange rate changes on cash and cash equivalents.
Cash used in financing activities was $0.1 million for the first quarter of 2010 compared to $4.8 million for the first quarter of 2009. The decrease in cash used in financing activities is primarily due to the repayment of short-term borrowings of $3.2 million during the first quarter of 2009 compared to no borrowings or repayments in 2010. In addition, there was a decrease of $0.8 million of cash used for share repurchases during the first quarter of 2010 compared to the first quarter of 2009, and a $0.6 million decrease in the change in negative cash book balances during the first quarter of 2009.
General Physics has a $35 million Credit Agreement with a bank that expires on October 31, 2010, with annual renewal options, and is secured by certain assets of General Physics. The maximum interest rate on borrowings under the Credit Agreement is at the daily LIBOR Market Index Rate plus 2.25%. Based upon the financial performance of General Physics, the interest rate can be reduced. As of March 31, 2010, the rate was LIBOR plus 1.25%. The Credit Agreement contains covenants with respect to General Physics minimum tangible net worth, total liabilities ratio, leverage ratio, interest coverage ratio and its ability to make capital expenditures. General Physics was in compliance with all loan covenants under the Credit Agreement as of March 31, 2010. The Credit Agreement also contains certain restrictive covenants regarding future acquisitions, incurrence of debt and the payment of dividends. The Credit Agreement permits General Physics to provide GP Strategies up to $10 million of cash to repurchase shares of its outstanding common stock in the open market. There was $6.8 million remaining available for future share repurchases under the $10 million authorized amount as March 31, 2010. General Physics is otherwise currently restricted from paying dividends or management fees to the Company in excess of $1.0 million in any year. As of March 31, 2010, there were no borrowings outstanding and $27.1 million of available borrowings under the Credit Agreement, based upon 80% of eligible accounts receivable and 80% of eligible unbilled receivables.
Read the The complete Report
Gp Strategies Corp. has a market cap of $141.4 million; its shares were traded at around $7.6 with a P/E ratio of 15.2 and P/S ratio of 0.7. GPX is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
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, 2009, 2008, 2007 and 2006, we repurchased approximately 526,000, 1,091,000, 678,500 and 420,000 shares, respectively, of our common stock in the open market for a total cost of approximately $2.2 million, $8.8 million, $6.5 million and $3.1 million, respectively. During the three months ended March 31, 2010, we repurchased approximately 3,500 shares of our common stock in the open market. As of March 31, 2010, there was approximately $2.4 million available for future repurchases under the buyback program. There is no expiration date for the repurchase program.For the three months ended March 31, 2010, we had income before income tax expense of $3.7 million compared to $2.6 million for the three months ended March 31, 2009. The increase was primarily due to a $0.9 million gain on the change in estimated fair value of contingent consideration during the first quarter of 2010 related to acquisitions completed in 2009, which is discussed further below and in Note 4 to the Condensed Consolidated Financial Statements. In addition, excluding the gain on change in fair value of contingent consideration, operating income increased $0.3 million, the components of which are discussed below. Net income was $2.2 million, or $0.12 per diluted share, for the three months ended March 31, 2010, compared to net income of $1.5 million, or $0.09 per diluted share, for the three months ended March 31, 2009. During the three months ended March 31, 2010, diluted weighted average shares outstanding increased by 2,640,000 to 18,714,000 shares outstanding compared to 16,074,000 shares for the same period in 2009, primarily due to the equity investment by Sagard Capital Partners, L.P. in December 2009. The increase in shares outstanding resulted in a decrease in diluted earnings per share of $0.02 per share for the first quarter of 2010 compared to the first quarter of 2009.
· $6.8 million increase in revenue attributable to acquisitions completed during 2009, which includes $3.0 million for Milsom, $1.2 million for Option Six and $2.6 million for PerformTech;
The Companys cash balance increased $2.7 million from $10.8 million as of December 31, 2009 to $13.5 million as of March 31, 2010. The increase in cash and cash equivalents during the first quarter of 2010 resulted from cash provided by operating activities of $3.7 million, cash used in investing activities of $0.7 million, cash used in financing activities of $0.1 million and a $0.2 million negative effect due to exchange rate changes on cash and cash equivalents.
Cash used in financing activities was $0.1 million for the first quarter of 2010 compared to $4.8 million for the first quarter of 2009. The decrease in cash used in financing activities is primarily due to the repayment of short-term borrowings of $3.2 million during the first quarter of 2009 compared to no borrowings or repayments in 2010. In addition, there was a decrease of $0.8 million of cash used for share repurchases during the first quarter of 2010 compared to the first quarter of 2009, and a $0.6 million decrease in the change in negative cash book balances during the first quarter of 2009.
General Physics has a $35 million Credit Agreement with a bank that expires on October 31, 2010, with annual renewal options, and is secured by certain assets of General Physics. The maximum interest rate on borrowings under the Credit Agreement is at the daily LIBOR Market Index Rate plus 2.25%. Based upon the financial performance of General Physics, the interest rate can be reduced. As of March 31, 2010, the rate was LIBOR plus 1.25%. The Credit Agreement contains covenants with respect to General Physics minimum tangible net worth, total liabilities ratio, leverage ratio, interest coverage ratio and its ability to make capital expenditures. General Physics was in compliance with all loan covenants under the Credit Agreement as of March 31, 2010. The Credit Agreement also contains certain restrictive covenants regarding future acquisitions, incurrence of debt and the payment of dividends. The Credit Agreement permits General Physics to provide GP Strategies up to $10 million of cash to repurchase shares of its outstanding common stock in the open market. There was $6.8 million remaining available for future share repurchases under the $10 million authorized amount as March 31, 2010. General Physics is otherwise currently restricted from paying dividends or management fees to the Company in excess of $1.0 million in any year. As of March 31, 2010, there were no borrowings outstanding and $27.1 million of available borrowings under the Credit Agreement, based upon 80% of eligible accounts receivable and 80% of eligible unbilled receivables.
Read the The complete Report
