GSE Systems, Inc. (“GSE” or “the Company”) (NYSE Amex: GVP), a global energy services solutions provider, today announced financial results for the third quarter ended September 30, 2011.
Jim Eberle, Chief Executive Officer of GSE, commented, “For Q3 2011, we reported increased revenues, higher gross profit, and a $1.4 million improvement in net income. During Q3 2011, we received a $3.0 million change order related to the Company’s contract to build a new nuclear power plant simulator and distributed control system for a two-unit reactor plant in Slovakia, which increased the total contract value from $23.8 million to $26.8 million. This change order also increased the overall gross profit on the project and generated an additional $0.7 million in project gross profit for the three and nine months ended September 30, 2011. Higher margin revenue generated by GSE EnVision also contributed to improved gross profit in Q3 2011.
“During the third and fourth quarters of 2011, we were awarded contracts totaling $14.4 million, comprised of $11.5 million in nuclear projects and $2.9 million in non-nuclear (fossil and process) projects. $5.9 million of these orders were not included in the Company’s backlog of $50.8 million at September 30, 2011. These awards reflect our strong global market position in the nuclear simulation industry, as well as our ongoing efforts to diversify our business model and revenue streams. We are also actively pursuing opportunities in areas such as training new employees and providing ongoing education for more seasoned professionals. This initiative is in response to the anticipated consequences of an aging national and global demographic. Over the next five years, it is estimated that retirement and attrition will require the replacement of 40-50% of the U.S. nuclear and non-nuclear energy operations workforce.
“Our financial position at September 30, 2011 included cash and cash equivalents of $17.7 million, working capital of $29.4 million, and no long-term debt. Our balance sheet at quarter-end also included $5.0 million of restricted cash as compared to $1.0 million of restricted cash at December 31, 2010.”