03/14/2019 | Press release | Distributed by Public on 03/15/2019 01:30
Columbia, MD - March 14, 2019 - GSE Systems, Inc. ('GSE' or 'the Company') (Nasdaq: GVP), a leading provider of engineering, expert staffing, and simulation software to clients in the power and process industries, today announced its financial results for the fourth quarter ('Q4') and fiscal year ended December 31, 2018.
At December 31, 2018
1 Refer to the tax benefit of $(6.6)million that the Company recorded in Q4 2017. As a result, the Company released a net $8.1 million valuation allowance against the deferred tax assets related to the U.S. entities, and a charge of $1.4 million for provision for uncertain tax positions.As a result, for 2017, the Company reflected a tax benefit of $(6.2) million.
2 During the quarter ended June 30, 2018, the Company identified an immaterial error of $1.2 million, or $0.06 per share, in the December 31, 2017 financial statements related to the release of the valuation allowance against deferred tax assets attributable to windfall tax benefits. The financial statements for the year ended December 31, 2017 reflect the correct comparative data.
3Refer to the non-GAAP reconciliation tables at the end of this press release for a definition of 'EBITDA', 'adjusted EBTIDA' and 'adjusted net income'.
Kyle J. Loudermilk, GSE's President and Chief Executive Officer, said, 'Our adjusted EBITDA in the fourth quarter of 2018 grew by 46.7% year-over-year to $2.8 million, one of the best quarterly outcomes in our history, while GSE's full year 2018 adjusted EBITDA rose 31.6% year-over-year to $7.4 million, also one of the best annual outcomes in more than two decades. Full year 2018 adjusted net income increased 55.0% to $4.7 million, or $0.24 per diluted share. These strong financial results reflect our ongoing commitment to providing clients with best-in-class engineering and expert staffing solutions, as well as meaningful contributions from the highly-complementary acquisitions of Absolute Consulting in September 2017 and True North Consulting in May 2018. During the year, we won a range of impressive new business orders globally and maintained a solid backlog despite the wind down of our very large full scope simulator project in the US. We are very pleased with this sales performance because it supports the validity of our strategy to consolidate the fragmented ecosystem of vendors serving the nuclear power industry. With the strategic acquisition of DP Engineering in February 2019, we have added an outstanding team of professionals with a broad range of engineering capabilities for nuclear power, including a core competency in engineering design modifications implemented during regularly scheduled nuclear plant outages. We aim to build on our success to date and further enhance GSE's platform during the remainder of 2019, focusing on the additional value we can create for our clients and shareholders.'