GPX - Earnings call transcript Q3 2017

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Operator

Good morning. My name is Tia, and I will be your conference operator today for the GP Strategies' Third Quarter 2017 Earnings Conference Call. All lines will be placed on mute, preventing any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded. you. Thank turn to now of Blank, call Relations. Investor the will Ann over Director I ahead. go Please

Ann Blank

Good you. quarter call. third welcome XXXX Thank and earnings morning, to GP Strategies

the Executive Greenberg, and On Esposito-Mayer, are Sharp, Sharon Officer. Doug President; Chief Financial Chief today call Officer; Scott

like would materially are comments our which remind you to actual could different cause certain risks results I will begin, that forward-looking be include from we expectations. to Before that to statements subject today's and uncertainties

you section the to of with gpstrategies.com. discussion a this Web call encourage be on I'd this on are risks, For will to site of our these over file At available read time, like we our the posted call complete documents Scott. on of at which to site SEC, Web replay today. turn also the A Investors our later

Scott Greenberg

gas per the and for final on third including a Strategies per the and quarter of share before an a provide welcome you, overview present was $.XX Q&A third XXXX. quarterly our our XXXX, will for will share I to an inclusive third morning, initiatives. quarter contract. give To session. follow then financial morning $.XX but Doug earnings key global quarter will that in write-off format. presentation, a will will Good an of initiate After I Thank on conference then Strategies acquisition will summary conclude updates update we of analysis, usual Sharon the Today This the a the GP call, earnings of reported results with market our oil provide Ann. Doug's we and of call. announced quarter depth XXXX of the GP brief opened

quarter in another this and the third expectations. corresponding in Excluding impacted increased million acquisitions quarter it XXXX. achieved the $XXX.X project segment. was due strong of segment to our would strategies. on We performance Performance This million a Revenue despite to Readiness in increase Solutions quarter from XXXX impact these the revenue $X.X the been Learning in oil $XXX and which results gas revenue million loss strong quarter our from GP by have for negative the write-off, approximately Solutions by current from

our disappointed While for from implementation. X% approximately was for of only are quarter with Company's $X.X These this system we client the The the in million investments represented third contract EBITDA revenue results total ERP this XX project, loss and our months. million new $X.X the approximately on the trailing $X.X include million. revenue of

program is Scotland for Solutions which us YouTrain, Performance ERP million $X EBITDA of apprenticeship In with year. revenue our and approximately non-cash and companies two with Historic capabilities based strengthened acquisition analysts provides which third basis. on add Some GP is and XXXX, the the expense August strategy compensation acquisition Strategies XX, forma continued and These of completed practices. per IT capabilities on the cyber $X.X security was quarter in approximately the U.K. is million. back to for CLS quarter in acquisitions a expenses these enhance And pro

still so have our for additional by showing the paved Solutions to revenue revenue We million, growth. which Solutions Learning Learning acquisition growth. largest increased evaluating are our million been group The segment robust our $XX.X currently flow. by cash way $XX.X from opportunities The strong supported X% is

months of nine cash $XX.X for XXXX. from flow ended the of the $XX.X million XX, for months the operations addition, company XXXX, nine compared generated to In million September

a see, can you as significant increase. So

September The the trailing the the months in the open shares have market the nine XX-months of as repurchased stock buyback ended share XXXX. XX, kept far the As approximately buyback, approximately XXX,XXX GP Strategies shares fairly million company for $X.X for in million activity XXXX summary over third XX.X approximately of a a with basis and of corresponding diluted XXXX. bit years. I the outstanding the fully few give like for a quarter little would XX.X of to shares last on consistent and period million

in know, many our to global building foreign our level As have heavily years investments term high in anticipate come. operations personnel the reach to invested of of and adding long our shareholders seeing and we we these return

establish discussed growing was added an offices initiatives five to approximately insurance do a approximately over continue highly third for business is sector basis. the revenue We multiple $XX with have service was We organic just previous where in our services to expand the still and finance XX% in XX XXX these excess our XX.X%. which fragmented in years Pac companies is revenue worldwide making annual it Asia is global the of these financial of sector. industries. six in it goal region region started On global our this We fastest and to the on the ago, sector GP approximately of Strategies years performing brand currently our ago, in we quarter and in calls and million

We financial as as sector. are strong currently push into the service the attributes a the making industry same has pharmaceutical major it

detailed continue quarter. focus largest presentation to With market who for date it which being sector. turn also financial automotive, to our that will Sharon, on said, I'll over is We to the in give will now XXXX a

Sharon Esposito-Mayer

quarter or $XXX.X We the morning million Scott, third which X% Thanks, over of revenue a everyone. good $X.X quarter million, reported $XXX of third XXXX increase revenue million. represented and

in on fully of and quarter, August October million million acquisition of Solutions of and year million X% acquisition in and the revenue, revenue technical year April million a of revenue to third $XX.X XX a and provided contributed a publication quarter. fourth was and $XX.X the related increase McKinney $XXX.X revenue quarter to and million of $XXX,XXX in or leadership quarter XXXX X decrease services engineering of a resulted of a X that XX in in of CLS quarter $X.X in segment The technical on a of negative increase a and quarter. million revenue services. also publication company decline a represented development provided net a million September negative on Readiness was the acquisition million the XXXX. revenue exchange in in in content million. by the revenue, X% was recently August quarter adjustment $XXX,XXX due foreign on revenue aerospace to we was mentioned, acquisitions. in during publication with in gas exchange X partially increase growth Rogers revenue growth impact Professional a $X.X a had decrease due completed $XX.X due to a quarter YouTrain increase this was XX Solutions the completed offsetting completed of decrease and dispute quarter provided projecting or the on provided revenue increase This X% for growth experienced delivered adjustment on led partial XXXX. Solutions XX% year this provided organic or the in revenue. Performance and was There partially $XXX,XXX had for $X.X a X%. to revenue February to completed an Learning by months acquisition a outsourcing strong also training million client XX% $X.X an $X.X of $XXX,XXX in quarter a increase of revenue $X.X revenue were estimated year growth September the revenue the decrease quarter million. remaining This and Revenue $XXX,XXX million that the or completed million performance in due revenue. in revenue date shipment consistent The technical There was and Revenues XXXX, was decreases automotive year. $XX.X services and acquisition revenue third increase of The of performance the an the third in million, $XXX,XXX revenue to $X $XXX,XXX by largest $X.X decrease over million segments year [indiscernible] and million The in and and compared in Maverick rate Learning Organic declines the $X.X two a was fourth million with partially automotive or cost of or segment. to of for on Emantras Scott revenue impacted million during professional part a services increase or eLearning impact event due the sector oil was $XXX,XXX our decrease decline revenue to compared segment. $XX.X X% during third training to as offset $X revenue revenue. revenue XXXX This net the offset cumulative of X% date revenue ended represented million changes Sandy's portfolio of technical by training million $XXX,XXX and the in noted. due Sandy are to As exchange we in in in launch The nine Readiness a a the increases of to increased offset $X.X XX% in these X% increase our rates. favorable to on XXXX. services XXXX. and $X.X non-recurring contract $XX.X sector training in adjustment the of Sandy revenue Performance largely date Solutions XXXX in from the was rates overall revenue $XXX,XXX impact negative net revenue by quarter were reduction September a quarter these revenue primarily was comprised client $X.X total publication by vehicle

to revenue XX% The accounted single revenue and XXXX. of compared to for to We September XX% and which continue have insurance date date financial sector XX% XXXX customer a XXXX revenue to a from comprised XXXX. our in date automotive concentration of year to year year both

our these to contributed Solutions gross revenue XXXX. XXXX. the Gross our million from also to compared third which financial by accounted United single in oil revenue compared profit the quarter million were foreign million represented decline SG&A XX% that in increased and is The X% $X.X in discussed by to system go from implementation, increasing to gross the to the $X.X we contract quarter XX.X% XX% Gross $X.X and total new customer decline XXXX increased of SG&A a due in date profit professional million September a increase a segment decreased services expected a the to date XXXX. The expense. expense professional the gross $XXX,XXX of also The estimated profit. X% of of decline revenue. Combined, X%. Sandy cost fourth percentage or and and and the impact and net and a labor $X.X a increase a in expense recognized to impact approximately financial Revenue cost our to a due $XXX,XXX profit $XXX,XXX profit or We the of $X.X or to due gain profit in benefits earned profit year live from $XX.X resulted XX% adjustment million. in quarter acquisition of and in or there to client, due gross decreased in $XXX,XXX as million largely concentration X% have XX% quarter $X.X in operations $X.X negative revenue year gross decrease increases estimated in million $XXX,XXX in quarter, $XXX,XXX quarter of in technical this is during due date percentage a had dollars in $XXX,XXX overall taken XX% amortization increase implementation expense, impact gas $XXX,XXX was quarter gross to the same we venture joint revenue the an increased a in to and and on change a on an income was services in on The consideration gross due negative the XX% payment. profit XXXX on revenue in increase States revenue services which the $X.X related million in profit negative will interest the These by of to increase results XX% rates. Projected bad profit contingent increased the in a anticipate related during the our as contact million of early the largest $XXX,XXX expense, cost. quarter gross related revenue a third growth. year quarter. Learning technical to and segment. of outside of increase to increase to due reserve for Interest to in the year. offset was Other to debt the income to the

$XXX,XXX before the or $X.X due income was taxing rate oil of third quarter a in largely in resulting to million by XXXX, in decrease increase change rate contract jurisdictions. compared compared to the Third million taken in quarter $X.X to to a a quarter The $X.X in quarter compared expense XXXX of million from $X.X the of XXXX million mix million XX.X%, the or the income of tax third the $X.X taxing in is the adjustments and decline gas XX.X% was driven $X.X million SG&A. in our tax taxable to lower XXXX. and

also taken contract quarter to a that other in the reduction income was reduced items the there rate. adjustment In the in U.S. projected contributed discrete addition, driven by part and during

a tax approximately rate projecting of quarter We XX%. are fourth

net million in Third to compared XXXX. quarter million $X.X $X.X income was

per third XXXX. share $X.X impacted by contract quarter $.XX compared million per negative in of $.XX EPS share. loss quarter were earnings to share Third $.XX The per the

on the sheet. Moving to balance

cash hand the at at end million XXXX of XX, were Our September compared to million $XX $XX.X the on XXXX. balances

$XXX,XXX spent as both $X.X and on and in During year. repurchases $X.X share to mentioned, of million just August YouTrain the acquisition, the Scott this year, CLS on completed fund we the million acquisition

received to million both year date from and $X.X We $XX.X items, date $X.X flows cash XX, and considerations. compensation the earlier in million, add a backs compared million contingent cash resulting to million depreciation also XXXX non-cash backlog September, additions cash to date $X.X asset to the in $XXX $XXX The Emantras months to date year including on plus of Rogers nine September, million. at for $XX.X the were of of September, McKinney changes We call $XXX,XXX discuss XXXX. generated acquisition by million the million is and end to $X.X spent XXXX. when flows $XX fund September XXXX. million in million net the $XXX,XXX compared compared Fixed September $XX.X income non-cash million to gain a September to Doug, expense from the was $X.X of $XX.X taxes of as year offset to amortization due the comprised this operating I operational to $XX.X will backlog of fund at to income At year. million XXXX highlights. difference will declined Approximately At to million of free year of million some to non-cash backlog of end decrease operations million million be December completed income, a will timing other the over in and in $XXX and time, who turn of deferred $X.X acquisition,

Doug Sharp

everyone. I Thank quick and hello, you, just Sharon to communicate. three have points

a consistency by than simply for new workforce global work our level First, products, put the more yesterday. desire Said strong, at it processes, and There driven is transferred and differently, based regulations always new corporate are knowledge and remains to to also on mentioned, we great creative, corporate a performance space, my the training from leader innovative not second be our in. size global just solutions. in training developing also is and our and To offering reach space as but or be macro corporate a today technology was to demand the for learning and Scott turnover. training point,

unique associations from team research with partnership was awards are clients, Hall marquee We alone and and like were in customers Brandon by Industry Again, In XX in use and best , and Facebook Strategies our GM, best MasterCard. innovative these learning. XXXX, and not best Mondelez and of employee thinking. games of our GP potential high with learning partnership and Lowe's, in recognized ranging agree. best awards organizations development, simulation to presented

the in are Office And in two leadership Strategies categories six excellence also recognized Learning XXXX in finally, GP to as leading ranging training industry leading listed We awards. development. a learning training provider outsourcing with in Chief in XX top incorporated leading sales training from Magazine and

being So a to the in. corporate first point, learning be space great

services innovation known transforming the workforces corporations. well quality, that space development The of for of and is are training of global and second point for we in

we position to point how final Strategies. my will GP So addresses our grow market leverage

are that proposal hard We in has that a and opportunities. fortunate very our brand resulted reputation work attracts

expand Going forward, in humble be further brand Asia America. we less will and South and our a bit Europe,

We will back it that and place our and more develop considerably will it leave Scott. opportunities. to and more sales being emphasis I at on objective to turn entertain

Scott Greenberg

have we of Hopefully, to improvements. about that hiring Approximately period. it acquisition the for today before offices I from $XXX down Q&A to and that place. get global part Doug. two our key time. bandwidth we for of turn company. in We grew million acquisitions short XX expand development on policy approximately on million over heard being company acquisition to to make we right done a acquisitions ago, initiative, resuming announced Due our would but about five the to that you, of very period do $XXX strategy. three GP a $XX year we everything felt the the and over establish revenue. XX area of I million key is months continue Thank the months our we for expansion are a like we when Historically, Strategies The of growth, last you annual people, the slowed to a to needed establish have In been GP we A acquisitions. our Strategies offices, in company strong to

revenue, world, speak. as lot as we so the but started expect of our a have in much not we So not to engine,

or and as activity. board see will the derived acquisition the up the of as next our in XX revving from revenue and I support company, leaders We you believe far the are having months being strong of

Sharon that’s the is company place we strategy our the from and and along and support growing are to as the did it facility credit have we acquisition strong heard organically, acquisition addition to going you about forward cash in date, generated in periods. continuing in As on strategy will in our and excited flow expanding from with very we prior

are us going what customers. are our look both global companies for reach, told competencies a that being for looking lot to to and our of have We by enhance is we

our listen goes customers, So development of we needs strategy. acquisition that into see our to the the do we and

currently speak, and Even have that of or as we we one in letters intent. two even are have we we evaluating acquisitions

will you hopefully, in that will that, to Q&A moderator. near now about So said, I the hear the over With future. turn being session, it

Operator

Instructions] Our [Operator Paris. first is proceed. the question line Please from Alex of

Alexander Paris

more that would bit like talked assuming we contract on little the is I calls. about contract. foreign dive the to gas oil previous I Kuwaiti and am into a this have

Scott Greenberg

the we said, judging what revenue, that’s astute annual size pretty assumption. Well, by the and a

Alexander Paris

Okay.

Just wanted to clear. be

the on what but this this want margin bit just say, do impact it, want obviously the What Second, from is revenue contract. the it size. last or provide get I hit last months. XX has months? however of contribution that XX gross over to sort the of operating, you a If revenue you give to did idea on what contract over an of X% was,

Scott Greenberg

write-off of the -- and course had into [cost] revenue of margin been Yes. XX% quarter and took well, system. receivables a this lot it's because ongoing the hit on And Well, contract not gross we a a has on, that variable billed to prior cost of but [ph] range. roughly had earned type we or in we

$X have contribution would of I to range. million those of $XXX,XXX months, roughly revenue, X% XX trailing it the the roughly would if in our been which in equates contracts we revenue roughly on So was say said,

really cost historically all item for was has pro today quarterly revenue the we And a So providing hit it did takeaway hit, because once the would not basis we rid while the of is the been from a has the income on while quarter, the off it forma have this the not are in impact a that bit big be if get be we that not contract, material. company. the writing call large to

Alexander Paris

you that When was generated the first from contract? this revenue quarter

Scott Greenberg

was quarters four I ago. think about it

have We a been for year. generating

have second in So been the have third in the it real the might started of coming been so there little was last -- the third probably but out, a so There was year. of might quarter revenue quarter that XXXX.

Alexander Paris

the per $X.X Okay. sort revenue? so quarter quarters, And quarter, so relatively sort for it million per sort quarter contract? $X a then of is in of million You it of kind even are of is the across quarter, $X.X

Sharon Esposito-Mayer

Alex. million. from a little a $X of varied probably a low as to anywhere bit mean about high run $X.X it's It's million I

been expended what based about effort really level on you it's been saying. in each average So But on of the quarter. are it's

Scott Greenberg

dispute not the trying one conservative and is But deliverable at There we thing Now our we this are terminated it. the spoke has this that felt remediate the under followed did we contract the accountants thing and we the that is realize requirements to not to are over been to contract do this contract saying was research. stage at point. is when the But we and over. we

Alexander Paris

that got stands? revenue You QX, the revenue quarter third earned dispute QX, you just over you QX, the the in deliverables. the to due that QX reversed So in

Sharon Esposito-Mayer

of we completion is costs based to at third under Yes. contract fact that I that and our the only the in at mean generated what technically this took $XXX,XXX on we contract. quarter are new look revenue the related about estimated a

in revenue always where time a price is recognition be on fixed on you So at to versus completion. based point at contract any to you are cumulative any where expect look

to going was we adjustment adjustment technically dispute are this So we deliverable the we the potential that the cumulative cost a have fact $X.X requirements. increase believe contract based that that the to due over in on a to million complete have taken,

Alexander Paris

words, this had of completion, in terms percentage some So right? other made estimate cost, of a you in is

Sharon Esposito-Mayer

the in that basically in cost we the on That based currently of that the completion we on reduction having the It's percentage single what of we increase in just methodology. make revenue And are is quarter. based turn estimate that Right. every that expect. resulted resulted dispute an in

Alexander Paris

we the if want Is deliverables, need paid you to is dispute So that these more it? for really, them. get

Sharon Esposito-Mayer

of think at for the are client. requirements I factors right on play a where many are deliverables, we it's now to deliverables. we with work what it are the coming There's into combination and the with trying the

trying As work resolve client are of But are under the the Scott we with mentioned, to them. are that to we still we contract currently. and in middle resolution

Scott Greenberg

But situation currently. this is complicated

Alexander Paris

All appreciate right. information you communicate. and able a I I that it's percentage material were contracts to Scott, adjustment think sensitive Well, I Strategies say, want of the completion to seen just risk I have information. realize from don’t always historically. GP I entail a

So...

Scott Greenberg

Yes. I years. for that ten XX adjustment have CEO the here, like in I this been company Alex, and the years for the is had least first we have and at last while, this with the a have been

Sharon Esposito-Mayer

adjustment have in probably XX that we [indiscernible] This had years.

Scott Greenberg

great have we impervious to had track obviously a but aren't it. record we So

Alexander Paris

So income But for while worst I contract terminated, contract, the under hopeful the and guess $X and my takeaway is happens $XXX,XXX is contract. scenario to the is, that the if gross continue million a a it's contract you it from case could are year you. year performance remediate contract a you

Scott Greenberg

as You I correct. so well that’s could said it as have,

Operator

Capital The next of Please Partners. Martin with Jeff the is proceed. line question from ROTH

Jeff Martin

the contracts Just lessons to sort versus not up the had this be issue and of what follow about are on it. oil you this from What learned other a the gas quick in is have the past, contract, contract different the and given contract.

Scott Greenberg

a set while if do the you GP most of of have was -- first come contract. long-term Well, contracts not in the customers, a shorter in our time deliverables effect And we with into look the where Strategies was is at time. this cases of of period period most deliverables a are our over while revenues,

think the careful on really to be very I business, is lesson so learned deliverable GP's one, main contracts. we Which to speak. have So isn't longer-term

foreign the provided have this. with combine that of the quality we you are that that and in we but know and do is a challenges doing oil gas and as did work good well. We we So do you customer believe expertise

So country cognizant when new into I contracts. well have enter something large to think getting a that has be be into scale to we as we

Jeff Martin

just Okay. this now? are you you also are is or looking still million reserve, forward it And on or point? that on continuing hold then Are is to accumulate expenses $X.X work for is working is that the at and doing backward looking that the contract you

Sharon Esposito-Mayer

working is not contract, So, on hold. are yes, it we still on the

with to and are going the our And based now. forward is $X.X issues we that that adjustment through are where million We revenue client. in cost costs the the to $X.X believe trying million on booked come work looking right reserve we

will that at understanding we up in to look and of obviously QX we the that have a on overall to stand we that We we by of as continue this true end contract. progress but QX hope have where will better

Jeff Martin

you target. you run mean, activity, what than larger XX know added that you rate to of are historically. revving up have do Okay. Great. in of next acquisition the for say Does does over acquisitions to are that type X% And $XX type probably have impact I then Scott. would When mean? I million past going acquisitions imagine to the to you see have maybe I make to revenue will to $XX million shift months? to X% on to of the range would you would are in more sizable the million historically comments by grow imply we said that more $XX acquisitions, going look so that done than the made you a you acquisitions

on comment. Just additional the color revving some looking to get

Scott Greenberg

acquisitions, mainly did million now, they I were totaled they of we million. small mean are right because $XX but five $XX acquisitions that

if period as with did million get the should say lot target agree million acquisitions, acquisitions real the GP and a the in opposed the want of sizable So you, $XX of acquisitions, mix. we I we would XX-month acquisitions not $XX any have XX% to look we while be to you did at next Jeff, we into done. historically that have

on So in could with acquisitions. next in the months that would prior to in comply acquisition revenue strategy, type I order bring $XX XX of in we our hope million

Jeff Martin

industry services? terms is that that certain in is Is customers this And various targeting it Okay. geographies? strategic combination, targeting of in Is sectors?

Scott Greenberg

we about ones year. of could this the Well, talk some we did

we of areas the one C-suite. interested into So is getting the in were expanding

at get the we Rogers tend learning services. McKinney other look to GP organization. sell with of you if So in C-suite learning hope that we us the could Strategies, with the the come acquisition in The into head

is one we acquisitions. are point So targeting area at of the looking entry the

targeting global reach area is second are as the we The that well of the acquisitions.

the But area forum in what bought tour could in from the at. for what at customer took we fourth a in customers' global emphasis The look area meeting. few And to and bring to are customer York we requirements needs continue of space their an an is in or and as what last just more are that spending well, you in the those the our see actually during and are, we had we more area the customers extent us in lot and example, they them areas, and that took when future. But Strategies leadership look exchange strength ideas areas the and the years look has well, stock their GP our is, and what third in New the we acquisition their on money those gives then as reach. forum, that’s to our the all be

cross-sell and different spend and areas. those we into So, believe in customers our to in competencies could points that more are overall, we geography, it's money entre getting it's starting also getting

Jeff Martin

to client that you question the is, while a then and ramp like did coming with sector finance push you Okay. about back. how insurance and Great. And is how your pharmaceutical the in strategy with feel do into last

Scott Greenberg

relation news that. to very in bad we we the The are and that. still optimistic significant about good large from pharmaceutical Switzerland, customer is in there talked customer, about Well, generating revenue

However, that. they a coming revenue believe in you seeing slow start provider. that have implementing been will us first in from starting have in working more They heavily started quarter, I so as the significant global that

areas. different all client are to in the organizations by ramp getting was because are We of bringing, we them Strategies, starting see projects due slower up it to course, contacted not of their their GP and but

are then But start move and some revenue in So to that is starting would growth providing I States, with starting the in key they into area. good QX. they their which hope Switzerland United

Operator

B. is of the question with proceed. Please Riley Kevin from FBR. next Liu line The

Kevin Liu

Obviously, Just significantly standpoint. you talking mentioned expanded an wanted you from your with international to that infrastructure have about start off operations.

As existing to would more that customers you you into next some think operations expansion in more bolt-on leverage wins, acquisitions you those look either leverage or come with out of expect year, so from and do the of of order help you kind or will would investments. get new

Scott Greenberg

could into we We break out referring, I and think you what two. out into could break it Europe it Asia. are

Europe, organic in I have would that also we there think Europe will operations. expansion acquisitions but impact our will be

in completed quarter. the we last Just two the like just

in acquisitions. Europe, So, yes

As customer of far as significant amount expansion. are seeing Asia goes, we still

in development are New opportunities, we phase the there.

mentioned, we are $XX million of As I revenue there. billing north of

the we think last I the acquisition from not will will on strategy organic the five and have in So but more be most had of come that with years. growth continuing opportunity there

Kevin Liu

this professional technical you the the the and about the Got are for from the of within the the oil have talking in rest customer of pipeline kind of what for kind you satisfied we of and growth gas morning, services specifically opportunities base if customer seeing it. foreign terms that segment, been of, and vertical. And composition

Scott Greenberg

if both the have would group back write-off in profit that slightly. quarter the unfortunately and the add of grown revenue, Well, you for results

one EtaPRO factors in we think So of growth, the and it back in quarter EtaPRO it while its key would growth have is product both first is in. I driving a the have. revenue that adding the profit that [indiscernible]. does the your not professional in think just oil I technical because that the of we am changes passing on that just I was the question. energy and the gas both all services, feeling product And have that

So ongoing analysis correct carbon plants, that. if you I emissions, EtaPRO is and have am then recognition. very measure part well. you called get at look license if program pattern space wrong, services, of back vibration a to does the What and energy we and will work which as EtaPRO. efficiency work product me of It power could technical go professional we where is thermal we and product both a robust is But and

group. the lead the in technical of services I and think that’s professional been XXXX

know, this I technical direction. slip the you services for some in move is looks doing group while other of maintenance. and So oil wasn’t professional actually and in and And, our our up grew, areas I think the one see certain in we quite gas like the that the and business reliability energy if it would starting decline, opportunities say like took that right this to starting it's the to well are

Sharon Esposito-Mayer

our of X% about actually X% company. is and company gas energy our overall Kevin, of Oil less revenue. And than is overall

to that perspective. Just put in

Kevin Liu

That’s helpful. from then And lastly Yes. me. just

term been generally, non-recurring in would if kind know so last kind am time activity time have of of there I launch you kind the services anything you the about what in they have you talking about benefit that Sandy, for the sort expect it pipeline from growth year. those of curious events. deliver. you then some these are near do of seeing I of events of more to you get Regarding the to types from the And training from

Scott Greenberg

now, won't Right QX. in doesn’t year. we major Yes. don’t events it next mean I see That see

we Sandy opportunities domestically However, U.S. at are in looking and both the

have one are year. I in Toyota that. in set last everybody, internationally, up we I sorry, office have of States is, said to Texas Plano, market United the and to in we looks from the they up domestically Texas the when things But we because set got an and So both moved starting

hard them. So we in the are get with trying foot bill our to

We automotive. are our international footprint expanding the in

for Rover work Jaguar doing outside are we Land of example, the For U.S.

We work China. are [indiscernible] doing for in

in Mercedes Benz We doing for are China. work

to domestic talent name, globally now a automotive In starting in a our kind clients see expand operation their use even year domestic manufacturers. base outside last winning was thing trying which York mainly our their of part can revenue at New of to new GP it of try with to Hyundai work they separated explain is are I which They accounts City Strategies. Motors, well. and it General And they as are the the it that we they reputation, current separately. clients moved Cadillac, have to of mainly though addition Hyundai why. we will and that to marketing to is or we rebrand division obviously start are top two added with Sandy working were this to year we Genesis two way and So did we was whereby and marketing are the and same

So are like and two expand get in we Sandy regards, of companies new that but, again, trying with to clients internationally. Toyota added kind we

Operator

back questions. no to the further turn have will you. I We Instructions] call [Operator

Scott Greenberg

I report moderator. the the at to the thank you, speak joining year-end. near everybody you, provide will would to and we Thank for like call. And in see future you we will next

participating for thanks and support. thanks your So for

Operator

participation you We and ask that call disconnect your does your that the and you gentlemen, line. Ladies thank today. for conclude for please

GP Strategies (GPX) 2 Nov 172017 Q3 Earnings call transcript