Exhibit 99.1
News Release
FOR IMMEDIATE RELEASE
Contacts:
Jerome I. Feldman Scott N. Greenberg
Chairman & CEO President & CFO
914) 249-9750 (914) 249-9729
GP Strategies Reports RESULTS For The
QUARTER ENDED MARCH 31, 2003
IMPROVEMENT FROM FOURTH QUARTER 2002 RESULTS
NEW YORK, May 15, 2003--GP Strategies Corporation (NYSE: GPX), a global provider
of training, e-Learning solutions, management consulting and engineering
services, today announced results for the quarter ended March 31, 2003.
Net sales were $36.1 million for the first quarter ended March 31, 2003 as
compared to net sales of $36.1 million for the quarter ended December 31, 2002
and $40.2 million for the quarter ended March 31, 2002. For the first quarter
ended March 31, 2003 gross margin increased slightly as compared to the fourth
quarter of 2002 as a result of cost reductions at General Physics. However, net
sales and gross margin for the first quarter of 2003 decreased as compared to
the first quarter of 2002 primarily as a result of a reduction in revenue from
the automotive division and the e-Learning division of the manufacturing and
process segment.
For the quarter ended March 31, 2003, net loss was $0.7 million, as compared to
net loss of $1.6 million for the quarter ended December 31, 2002 and net income
of $0.2 million for the quarter ended March 31, 2002.
During the first quarter of 2003, the company's gross margins were also
negatively impacted by the elimination of a minor product line in the optical
molding operations at MXL Industries' Illinois facility.
During the first quarter of 2003, the company incurred approximately $.4 million
of severance costs, $.2 million of which is included in cost of sales. The
company also incurred $.3 million of expenses relating to the final bidding
stages of the company's sales and dealership training proposals. In addition,
during the first quarter of 2003, the company reduced its selling, general and
administrative expenses by approximately $.4 million, as compared to the first
quarter of 2002, as a result of its continued personnel reductions, the
relocation of the corporate office and other related operating expenses.
GP STRATEGIES REPORTS FIRST QUARTER RESULTS
Page 2
Results for the quarter ended March 31, 2003 include a non-cash credit on a
deferred compensation plan of $0.3 million and investment and other income, net
of $.2 million.
The Company has reduced its debt outstanding under its revolving credit
agreement by approximately 31% to approximately $22.4 million at March 31, 2003
from approximately $32.3 million at December 31, 2001. The debt levels at March
31, 2003 remained consistent with the debt outstanding under the revolving
credit agreement at December 31, 2002.
About GP Strategies Corporation
GP Strategies, whose principal operating subsidiary is General Physics
Corporation, is a NYSE listed company (GPX). General Physics is a workforce
development company that improves the effectiveness of organizations by
providing training, management consulting, e-Learning Solutions and engineering
services that are customized to meet the specific needs of clients. Programs
have been developed for service managers and executives, engineers, sales
associates, plant operators, the maintenance and purchasing workforces and
information technology professionals in the public and private sectors in North
and South America, Europe and Asia. Clients include Fortune 500 companies,
manufacturing, process and energy industries, and other commercial and
government customers. Additional information about GP Strategies may be found at
www.gpstrategies.com and about General Physics may be found at
www.gpworldwide.com.
The company has scheduled an investor conference call for 3:00 p.m. EDT today.
The dial-in number for the live conference call will be 888-273-9887
(612-332-0523 Outside the United States). A telephone replay of the call will
also be available beginning at 4:45 p.m. on May 15. To listen to the replay,
dial 800-475-6701 (320-365-3844 Outside the United States) and enter reservation
number 684872.
The forward-looking statements contained herein reflect managements' current
expectations regarding future growth, results of operations, performance and
business prospects and opportunities. Wherever possible, words such as
"anticipate," "believe," "plan," "expect" and similar expressions have been used
to identify these forward- looking statements. These statements reflect our
current beliefs and are based on information currently available to us.Except as
otherwise required by federal securities law, the company is not obligated to
update or revise these forward-looking statements to reflect new events or
circumstances. Accordingly, these statements are subject to certain risks and
uncertainties which could cause our actual growth, results, performance and
business prospects and opportunities to differ from those expressed in, or
implied by these statements, including, but not limited to, those risks and
uncertainties detailed in GP Strategies' periodic reports and registration
statements filed with the Securities and Exchange Commission.
TABLES FOLLOW
GP STRATEGIES REPORTS FIRST QUARTER RESULTS
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An unaudited comparative summary of GP Strategies' consolidated net sales and
net (loss) income for the quarters ended March 31, 2003, December 31, 2002 and
March 31, 2002 is as follows (in thousands):
Quarter Ended
----------------------------------------------------
March 31, December 31, March 31,
2003 2002 2002
------------- ------------------ --------------
Manufacturing & Process $ 32,238 $ 32,146 $ 35,165
Information Technology 1,633 1,698 2,305
Optical Plastics 2,216 2,305 2,756
---------- ---------- ----------
Net Sales $ 36,087 $ 36,149 $ 40,226
======== ======== ========
Quarter Ended
--------------------------------------------------
March 31, December 31, March 31,
2003 2002 2002
-------------- -------------------------------
Net sales $ 36,087 $ 36,149 $ 40,226
Costs of sales 32,259 32,463 34,778
---------- --------- ---------
Gross margin 3,828 3,686 5,448
Selling, general and administrative expenses (4,423) (5,001) (4,326)
Interest expense (596) (687) (754)
Investment and other income (loss), net 160 (1,445) (435)
Gains on marketable securities 74 590 440
------------- ----------- ----------
(Loss) income before income taxes (957) (2,857) 373
Income tax benefit (expense) 254 1,248 (168)
------------ ---------- -----------
Net (loss) income $ (703) $ (1,609) $ 205
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Net (loss) income per share:
Basic and Diluted $ (.04) $ (.10) $ .01
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