GP Strategies Corp. (GPX) filed Quarterly Report for the period ended 2009-09-30.
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 $107.4 million; its shares were traded at around $6.81 with a P/E ratio of 11.9 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 nine months ended September 30, 2009, we repurchased approximately 121,000 and 526,000 shares, respectively, of our common stock in the open market for a total cost of approximately $0.8 million and $2.2 million, respectively. As of September 30, 2009, 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 September 30, 2009, we had income before income tax expense of $3.7 million compared to $5.1 million for the three months ended September 30, 2008. The decrease was primarily due to a decrease in operating income, the components of which are discussed below. Net income was $2.0 million, or $0.13 per diluted share, for the three months ended September 30, 2009, compared to net income of $2.9 million, or $0.18 per diluted share, for the three months ended September 30, 2008.
· $0.6 million net decrease in U.S. dollar revenue recognized from our operations in the United Kingdom, which consists of a $0.8 million decrease in revenue due to the unfavorable effect of currency exchange rates and a net decrease of $1.6 million primarily due to a decrease in volume with training outsourcing customers, offset by an increase in revenue of $1.3 million attributable to the acquisitions completed in 2008 and 2009 and a $0.5 million increase due to the expansion of government funded training programs in the UK.
Process & Government revenue decreased $0.4 million or 3.2% during the third quarter of 2009 compared to the third quarter of 2008. The decrease is due to a $0.9 million net decrease in revenue primarily due to a reduced volume of chemical demilitarization training services and other government training services, a $0.7 million decrease in technical services for the aerospace industry, and a $0.4 million reduction in process, maintenance and reliability training services provided to petrochemical industry clients. These revenue decreases were offset by a $1.6 million increase in revenue relating to construction projects for liquefied natural gas (LNG) fueling station facilities.
Other income decreased $0.1 million from $0.2 million for the third quarter of 2008 to $0.1 million for the third quarter of 2009. The decrease is primarily due to a $0.1 million litigation gain in the third quarter of 2008 which did not recur during the third quarter of 2009.
For the nine months ended September 30, 2009, we had a loss before income tax expense of $0.2 million compared to income before income tax expense of $15.0 million for the nine months ended September 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 $5.2 million, the components of which are discussed below, during the nine months ended September 30, 2009 compared to the same period in 2008. Net loss was $3.2 million, or $(0.20) per diluted share, for the nine months ended September 30, 2009, compared to net income of $8.8 million, or $0.52 per diluted share, for the nine months ended September 30, 2008.
GPX is in the portfolios of John Keeley of Keeley Fund Management.
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