GSE Systems, Inc. (NASDAQ:GVP)

GB Gse Systems, Inc. (AMEX:GVP) ($2.90; $57.2M market cap), a leading provider of professional and technical engineering, staffing services, and simulation software to clients in the power and process industries, announced Q3 2018 results:

• Sales of $21.8 million vs $15.4 million in the prior year
• Non-GAAP EPS of $0.04 vs $0.03 in the prior year
• New orders increased 203% to $27.9 million from $9.2 million

“We are excited to see continuing momentum in operating leverage via Adjusted EBITDA and expect this to accelerate as we scale. In addition, new orders were the highest since the first quarter of 2016. Our acquisitions of Absolute Consulting and True North Consulting helped drive this quarter’s strong performance, demonstrating the significant potential of our strategy to scale GSE and create value through rolling up a fractured vendor ecosystem in the nuclear power industry. We continue to evaluate and pursue a robust pipeline of additional potential value-creating strategic acquisitions.”

GB Gse Systems, Inc. (AMEX:GVP) ($2.98; $58.4M market cap), a leading provider of professional and technical engineering, staffing services, and simulation software to clients in the power and process industries, today announced a five year contract worth up to $19 million. The contract is:

“...for the continuation of support services to two US Government engineering laboratories dedicated to the support of the US Navy. GSE will serve as a subcontractor to a large global engineering, construction and project management firm. The services include providing simulation engineers and test specialists. The initial year is worth $3.6 million (February 2018 to February 2019) with four additional optional years that would bring the total contract value to approximately $19 million. GSE, which has been under a series of services contracts with these laboratories for 15 years, is tasked to build and test training devices used across a variety of government locations.”

You can view our previous coverage on GVP here.

GB Gse Systems, Inc. (AMEX:GVP) ($3.28; $63.6M market cap), a company that offers training and staffing for nuclear power plants, announced it will commence trading on NASDAQ on Monday, April 30, 2018. The Company’s common stock will continue to trade on the NYSE American until the market close on Friday, April 27, 2018.

Kyle Loudermilk, GSE’s President and Chief Executive Officer, commented, “We are pleased to announce our listing on the Nasdaq Capital Market. We believe the move to Nasdaq will improve the visibility of our stock, enhance trading liquidity in our shares, and provide us with greater exposure to institutional investors.”

GB Gse Systems (AMEX:GVP) ($3.15; $61.1M market cap), the world leader in real-time high-fidelity simulation systems and training/consulting solutions announced steps to streamline global operations and increase profitability.

“We have made the strategic decision to implement a restructuring program for certain assets in Europe and India to position the company for enhanced long-term profitability and the next phase of our growth. By streamlining our global operations, we become a leaner, more agile business with less complexity, allowing us to better serve our customers as well as dedicate more time to executing our stated M&A goals. A more centralized staff will greatly enhance interactivity and innovation as we advance client solutions, and do so at a lower cost in a more effective manner. These actions are the appropriate steps for us at this stage of our company’s growth trajectory, and should directly benefit our customers, our shareholders and our employees on the whole.”

GVP ($2.75) - We are adding GVP to our Buy On Pullback Mock Portfolio 5.0 watchlist while we conduct more due diligence.

GVP ($3.15) - In a 13G filed this morning, Needham Investment Management disclosed a 5.1% stake in GVP.

GVP ($3.15) - PVAM Perlus Microcap Fund increased its stake in GeoBargain GVP to 1.3 million shares, or 7.17% of total outstanding shares.   PVAM had 986,222 or 5.44% in its original 13G filing from October 2016.

SYKESVILLE, Md.--(BUSINESS WIRE)--GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), the world leader in real-time high-fidelity simulation systems and training solutions to the power and process industries, today announced that it has been awarded an expanded contract to implement a significant upgrade to the control room station simulation system for EDF Energy’s Torness nuclear power plant in the United Kingdom. The contract, modified in December 2016, follows an initial award from EDF Energy in August 2016 for the design phase of the project. GSE expects the implementation phase of the project to commence in mid-2017 and be completed within three years. The Company ended 2016 with backlog of approximately $75 million, which is up over 56% from December 31, 2015.

The Torness station started generating electricity in 1988. In February 2016 EDF Energy announced it was extending the operating life of Torness by seven years to 2030. As part of EDF Energy’s commitment to safety and training, and an integral part of its training program accreditation process, EDF Energy made the decision to upgrade the existing simulator that was originally commissioned in 1988. The new simulation platform takes advantage of today’s advanced modeling capabilities and will provide a modern platform to extend the useful life of the simulator and plant.

GSE will maintain the existing simulator instrumentation and control panels while upgrading the computing system, all plant models and the control systems on the simulator. The Company will use its industry-leading JADETM suite of simulation tools to develop modern and sustainable models for the Unit 1 control room simulator and develop a new model for the Unit 2 plant. This will enable EDF Energy to operate the simulators in an integrated fashion for a wide range of training scenarios. In addition to the control room simulator, the Company will provide classroom simulators and a debriefing room simulator to enable students to take advantage of simulation technology across a multitude of learning environments.

Kyle J. Loudermilk, Chief Executive Officer and President of GSE, said, “We have a long standing relationship with EDF Energy and its predecessor, British Energy, having worked on simulators for a number of power stations and training facilities in the fleet. We are delighted and honored to enhance the relationship by supporting EDF Energy’s commitment to nuclear safety and training through the implementation and use of GSE’s state-of-art simulation and training technology. Nuclear power continues to play a critical role in the UK energy mix by providing carbon free power generation. We are thrilled to be chosen by EDF Energy to provide the simulation technology and services needed to support their critical nuclear assets.”

GVP ($2.66) announced two contract awards that add over $6 million to the Company’s backlog.  The two projects are with customers from the UK and Japan.  Management stated, “both projects include the options that could grow GVP’s backlog significantly further.”

GVP ($2.36) reported fourth quarter 2015results:

• Q4 sales of $14.2 million vs $12.7 million in Q4 2014

• EPS of $0.05 vs a loss of $0.08 in Q4 2014

Quotes from management:

“We concluded 2015 on a very strong note, recording GSE’s first quarter of positive operating income and net earnings since the third quarter of 2012. Our Q4 2015 financial results directly reflect our team’s efforts to reduce costs, improve business processes and enhance productivity levels across the entire company. We have made significant progress executing our turnaround plan, yet still have more to do to create a best in class technology enabled software and service company focused on primarily the global nuclear power industry.”

Mr. Loudermilk continued, “Now that we have an appropriate, streamlined cost structure in place, and have staffed most of our critical senior leadership positions, our focus turns to the next phase of our strategic plan: reinvigorating GSE’s growth. As we move forward, we are optimistic that we will continue to add critical hires where needed to affect our growth, including growing our backlog. I remain optimistic about the business opportunities in front of us, not only in our existing businesses, but also in adjacent markets. In 2016 we expect to provide additional details on new elements of our growth strategy, including initiatives that support a more diversified, recurring revenue base. I am confident that as we continue to successfully execute our strategy, we will increase cash flow, improve GSE’s strong balance sheet, grow our backlog, and enhance shareholder value.”

GVP ($2.13) - A 13D/A filed yesterday after hours shows Angeleno Investors increased its stake in GVP to 6.5% from 5.5% disclosed in original13D on December 17, 2015.  See our research note from original 13D filinghere.