GP Strategies Corp. Reports Operating Results (10-K)

Author's Avatar
Feb 29, 2012
GP Strategies Corp. (GPX, Financial) filed Annual Report for the period ended 2011-12-31.

Gp Strategies has a market cap of $295.2 million; its shares were traded at around $15.91 with a P/E ratio of 20.5 and P/S ratio of 1.1. Gp Strategies had an annual average earning growth of 9.3% over the past 5 years.

Highlight of Business Operations:

We have a market concentration of revenue in the automotive sector and in prior years had a concentration of revenue from General Motors Corporation and its affiliates and successor (General Motors). Revenue from the automotive industry accounted for approximately 17%, 18% and 21% of our consolidated revenue for the years ended December 31, 2011, 2010 and 2009, respectively, and revenue from General Motors accounted for approximately 9%, 12% and 16% of our consolidated revenue for the years ended December 31, 2011, 2010 and 2009, respectively. No single customer accounted for more than 10% of our consolidated revenue in 2011 or accounts receivable as of December 31, 2011.

Professional & Technical Services gross profit of $14.3 million or 16.7% of revenue for the year ended December 31, 2011 increased by $5.2 million or 56.6% when compared to gross profit of approximately $9.1 million or 12.9% of revenue for the year ended December 31, 2010. Approximately $2.0 million of the increase in gross profit is attributable to the acquisitions completed in 2011. In addition, this segment experienced increases in gross profit and

Sandy Training and Marketing gross profit of $8.1 million or 14.9% of revenue for the year ended December 31, 2011 increased by $2.0 million or 32.8% when compared to gross profit of $6.1 million or 13.0% for the year ended December 31, 2010. The increase in gross profit is primarily due to the revenue growth in this segment during the year ended December 31, 2011 compared to 2010. In addition, approximately $0.7 million of the increase in gross profit is attributable to the acquired RWD automotive business unit included in this segment, which has higher gross margins than the existing business units in this segment.

Learning Solutions gross profit of $20.2 million or 17.0% of revenue for the year ended December 31, 2010 increased by $7.7 million or 61.6% when compared to gross profit of approximately $12.5 million or 17.1% of revenue for the year ended December 31, 2009. Approximately $5.5 million of the increase in gross profit is attributable to the acquisitions we completed in 2009 and 2010. In addition, the remaining increases in gross profit were primarily due to increased BPO and training services in 2010 noted above.

We have a market concentration of revenue in the automotive sector and in prior years had a concentration of revenue from General Motors. Revenue from the automotive industry accounted for approximately 17%, 18% and 21% of our consolidated revenue for the years ended December 31, 2011, 2010 and 2009, respectively, and revenue from General Motors accounted for approximately 9%, 12% and 16% of our consolidated revenue for the years ended December 31, 2011, 2010 and 2009, respectively. No single customer accounted for more than 10% of our consolidated revenue in 2011 or accounts receivable as of December 31, 2011.

Read the The complete Report