Gp Strategies Corporation (GPX) has reported 29.22 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $4.80 million, or $0.29 a share in the quarter, compared with $3.72 million, or $0.22 a share for the same period last year.
Revenue during the quarter went down marginally by 0.78 percent to $121.98 million from $122.93 million in the previous year period. Gross margin for the quarter contracted 17 basis points over the previous year period to 16.40 percent. Total expenses were 93.44 percent of quarterly revenues, down from 94.42 percent for the same period last year. This has led to an improvement of 98 basis points in operating margin to 6.56 percent.
Operating income for the quarter was $8 million, compared with $6.86 million in the previous year period.
"While third quarter 2016 revenue was down slightly, strong performance in our Sandy Training & Marketing and Performance Readiness Solutions segments offset the continued downturn in the Professional & Technical Services segment and the dramatic decline from foreign currency fluctuations," stated Scott N. Greenberg, chief executive officer. "Our Learning Solutions segment also achieved organic revenue growth during the third quarter excluding the negative effect of foreign currency. In addition, we recently completed the acquisition of Maverick Solutions, giving GP Strategies enhanced training capabilities in the ERP arena. We continue to pursue niche acquisitions and are currently evaluating additional opportunities.”
Working capital drops significantlyGp Strategies Corporation has witnessed a decline in the working capital over the last year. It stood at $33.79 million as at Sep. 30, 2016, down 25.39 percent or $11.50 million from $45.29 million on Sep. 30, 2015. Current ratio was at 1.24 as on Sep. 30, 2016, down from 1.37 on Sep. 30, 2015. Days sales outstanding went down to 70 days for the quarter compared with 73 days for the same period last year.
Debt increases substantiallyGp Strategies Corporation has witnessed an increase in total debt over the last one year. It stood at $59.29 million as on Sep. 30, 2016, up 113.28 percent or $31.49 million from $27.80 million on Sep. 30, 2015. Total debt was 19.29 percent of total assets as on Sep. 30, 2016, compared with 9.06 percent on Sep. 30, 2015. Debt to equity ratio was at 0.37 as on Sep. 30, 2016, up from 0.18 as on Sep. 30, 2015. Interest coverage ratio improved to 21.87 for the quarter from 20.19 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
