GP Strategies Corporation (GPX) has reported a 7.53 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $4.09 million, or $0.24 a share in the quarter, compared with $3.80 million, or $0.23 a share for the same period last year. Revenue during the quarter grew 5.78 percent to $122.45 million from $115.76 million in the previous year period. Gross margin for the quarter expanded 35 basis points over the previous year period to 15.83 percent. Total expenses were 94.62 percent of quarterly revenues, down from 94.99 percent for the same period last year. This has led to an improvement of 37 basis points in operating margin to 5.38 percent.
Operating income for the quarter was $6.59 million, compared with $5.80 million in the previous year period.
"GP Strategies reported first quarter 2017 revenue of $122.4 million, which was a record for the Company's first quarter" stated Scott N. Greenberg, chief executive officer. "Organic revenue growth and revenue from recently completed acquisitions more than offset a $3.7 million decline from foreign currency fluctuations. The Performance Readiness Solutions and Sandy Training & Marketing segments both paved the way for the revenue growth. Our pre-tax income for the first quarter included $0.4 million of financial system implementation costs and $0.3 million of legal expenses relating to acquisitions. In the quarter, the Company continued its acquisition strategy with the purchase of McKinney Rogers in February and the acquisition of Emantras, which was completed in April.”
Working capital increases sharply
GP Strategies Corporation has recorded an increase in the working capital over the last year. It stood at $56.23 million as at Mar. 31, 2017, up 58.66 percent or $20.79 million from $35.44 million on Mar. 31, 2016. Current ratio was at 1.48 as on Mar. 31, 2017, up from 1.29 on Mar. 31, 2016. Days sales outstanding were almost stable at 70 days for the quarter, when compared with the last year period.
Debt moves up
GP Strategies Corporation has witnessed an increase in total debt over the last one year. It stood at $60.53 million as on Mar. 31, 2017, up 11.67 percent or $6.33 million from $54.20 million on Mar. 31, 2016. Total debt was 18.65 percent of total assets as on Mar. 31, 2017, compared with 18.40 percent on Mar. 31, 2016. Debt to equity ratio was at 0.35 as on Mar. 31, 2017, up from 0.34 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 15.05 for the quarter from 23.67 for the same period last year.
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