GPX - Earnings call transcript Q3 2018

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Operator

Good day, and welcome to the GP Strategies' Third Quarter 2018 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ann Blank, Director of Investor Relations. ahead. go Please

Ann Blank

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

On today Financial Stedham, President; the Officer; and Executive call Mike are Scott Dugan, Chief Officer. Chief Greenberg, Adam

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

we earnings our like to which slides encourage file For at posted you XX are be Scott available today read this site a these Web I'd complete section on being release's following Web this SEC, discussion the time, webcast our call presented the quarterly our site Greenberg. A Investors with the risks, also page section the Investors Web at are site. of on call. documents for will our of replay on days to And of of The available CEO, over, gpstrategies.com. that are turn the today's of on

Scott Greenberg

from XXXX. the then text I XXXX, depth Adam's will give like I'll confidence this in will Ann. this in we Q&A GP opened, Strategies We consists morning, with that a President, new call, that, the Thank signed quarter one-year a Today, then truly and contract third an GP service options. key informative which our To our announced initial XXXX present third prepared This XXXX. presentation. of agreement deviate CFO, has negotiations. our quarter our morning, quarter and third a GP quarterly of provide recent in favorable third would and you'll demonstrated operating presentation, customer, with GP with market to for revenue After in I'll provide outsourcing Adam, been quarter multinational improved largest selected a Strategies two Mike useful of brief initiate results contract however company which the global training appreciate analysis, session. welcome to a we just call. our decreased WebEx Hopefully, Strategies find Strategies. morning, to on the initiatives. for the has a the large of our financial this and results includes developments slightly Dugan, continue conference conclude format your contract with for and my to of customer three-year GP financial five-year announce Strategies' before earnings are will summary, of GP of the analysis Good by new compared XXXX, an the updates presentation subject insurance Strategies. global revenue you, overview will

automobile addition, with training Japanese we recently multimillion dollar U.S. product a In contract launch a won for a manufacturer.

and our We new seen engineering our increased by have first focus in which practices, technical sales service was of the revenue area organization.

and traction XXXX in for million decrease upon nine we XXXX. are of Based So expenses Strategies on million $X.X from the this our months $X GP significantly XXXX. with Implementation totaled positioned pleased development. expenses developments, strongly system since company in the These XXXX. believe X, is for system business investment cloud ERP I am to expected our the related to went resulting October effective first these

quarter our impacted numerous third of items include results The continue that results nonrecurring and/or unusual to operations.

costs for acquisitions. return associated unusual from platform Strategies significant GP operating and future we with implementation than items nonrecurring growth, in items model will As we XXXX other anticipate legal normal build that without our and

represent Year. Supplier of two morning contract us Those In addition revenue. to signed the customers over named our financial Prestigious of automotive service largest by customer, largest our customer this XX% our the overall the

of back European has XXXX, research XXXX. which the in of quarter significant in the in a in now the substantially acquisition second training company and company in training the the is of past, of completion space third grow initiative, to quarter automotive pharmaceutical acquisition and the with enabled the acquisition full Our force the

deals, shortly. and have We hope something look continue for you and at to to evaluate

to expand on I to the slide, just on U.K Going wanted skills. my job

can you due see government. by the funding As the changes to results, in a from U.S. experienced we downturn

we However, the providers, we in are prior adapting to levels in sales periods. to levy that We to activity occurring additional we will are spend. companies from absorption learners see the due the by to and starting increased believe levies that of asset, XXXX, had get nonperforming

So that's good Skills on news the U.K. section. Job

on, in that cloud we've system daily it and are I October, ERP is and the installed. will in positioned [ph] monitoring, company As that give about system the data, Strategies we XXXX GP and beyond. in very new far strongly live robust as excited touched the enhanced

been are continuing less million in is depth of team with growth. turn a that has armed company's are a to strategy development fundamental $XXX assembled same initiatives. $XXX We for than the period. and grew company review now over we million in the business previously that The one with change future an global call the will Adam significant sales to major to our now five-year I the support

Adam Stedham

which & revenues Many of includes XX% the long both cycle generates which of sales the many the practice important long cycle Technical aligned have you, Job of year-to-date. short and our of of The within practices and is Technical our Thank inclusion explain about consists Transformation is sales units short is and cycle expectations. Services, of considering sales segments, that and long quarter Engineering and The cycle. long and And Managed slightly, our a cycles, our makeup larger up segment. allows the units Managed of give consists generates budgeting Learning the smaller Excellence, which stability well Skills quarter business as our sales a long A sales to approximately and practice. of into business revenues, practice sales future for agility the The of sales XX% to annual us practice operations inside segment segment, exclusive cycle practice. Managed to many performance and services. project-based generates Each Workforce a some acquisitions, U.K. two operations, current Scott. progress. Business Learning each Learning a of customers. Services goal primarily the is The revenues, segments, our Excellence Services within XX% activity process significant of short portion cycles. when current the segment down have of the practice of explain sales their as This makeup within GP's the insights cycle sales is within the of slightly have shorter the Services, sales cycle today My Services, bit approximately and Workforce approximately two includes sales for

to of they QX so Services able were year year, QX not the decisions or outsourcing Learning Many made During with any to this Managed of contract relationships outsourcing customers. contracts contracts, cycles align annual are last organization outsourcing the either. of but of XXXX, new not did lose secure during our any the budge

our as secured a fluctuations. skills, XXXX of of upon flat customer, that Services about signing in of any addition, a with year. exclusive excited been we've and outsourcing new headwinds Scott don't with very currency customers contract mentioned We're in to relatively renewal As existing see year Learning has based relationship, our financial we're we our next this, optimistic Managed earlier, and acquisitions, going notification about services multiyear largest job result this

we short Services sales the relatively operates Technical first but for cycles technical of enables sales & was the in a this of for Heading cycle that government turnaround that identified outside the of on Engineering practice. contracts of when shift One our sales long-term contracts because nature more the focusing priority, Our initial around was of some officer hired this new an practice within we our into rapidly. projects. the multi-year services environment organization year, reason is us business business turning include business performance prioritization to XXXX, contracts of this the priority those slide the his and chief

practice. of QX booking development business was organizational we XXXX sales the pleased our solid business enablement of which and is the transformation our and revenues XX% includes and very be generates backlog revenues units cycles revenues which the of development which our continue sales segment to to within our this results units practice is and as performance cycles. Many the short strong within strong salesman organizational adds and another their of approximately their practice have sales as the approximately and enablement we're performance XX% expect with year business comfortable about the well of have many to of be XX% going long current year-to-date business for generates We this with

considering the when previously As and is future quarter I important expectations. our said this current performance

generate At year-to-date supporting the with sales expansion and with brand. is their revenues year their had enablement in practice of we relationship that the beginning this QX. of in efforts experienced the would associated We've but the significant we customer luxury an launch delays important So they maintained with down in anticipated, efforts XXXX.

our that evolved. with that in plans versus anticipate with will customer we had that their increase XXXX revenues forward, Looking at XXXX customers, in

to In were product XXXX we notified important automotive a selected been with launch. support an addition new we've customer

within the organizational practice down as consists optimistic the development we multi-year of for and move and the customer we've primarily of we're for well automotive organization that this year services lines we disappointed organization Finally largest very QX, that technical we in for within also transformation is some and service processes The business a the in Sales of a in these service August steps that leadership this We're said XXXX. they services and practice our of these our sales practice cycle implementing assume for our signing five consists additions. down in same sales to development with leadership taken with agreement hired Chief Scott XXXX The short growth anticipated renewal services. really are organizational quarter. for for forward Becker for Officer this segment this the new is lines. this we Currently practice implemented Vice currently President July mid will expect Russ transformation X experience Sales X engineering of business that of

we good a this in overall anticipate a result As growth XXXX. year practice and for

point, detailed for this update. over call turn to the Mike I'll at financial So

Mike Dugan

were of QX in services QX over segment, revenue $X.X revenue a and and practice excellence XXXX $XX.X XX.X% is up workforce increase million to technical revenue in increases prior drivers engineering reported of QX up workforce is bridging XXXX. which from revenue $X.X the year. Thanks, QX, everyone. revenue million in the reported Adam, a segment, revenue with their Starting and QX slightly out of reported $XXX.X we the of Bringing million which by revenue profit, reported slide from segment of down and good revenue excellence $XXX.X and gross due eight last million which the million is morning

and in of noted publication shipment last more XXXX. in in to vol in million versus the the $XX QX changes of XX versus U.S. Total $XX.X The increase $X.X services Offset publication Fall was QX, revenue the revenue XXXX forecast be in to and publication U.K. of projecting months. transformation a publications in decreases sales training acquisitions decrease shipped the The included skills for $XX.X by to $X.X of government development were segment $X.X service the $X.X of in Within training in compared QX the of pub million of of acquisitions offset this decline the in services by September and were to revenue million a the being XXXX business enablement non-recurring foreign digital down net launch rates. $X.X $X.X hurricane that magazine completed this due shipment less to it million to the by increase a ETS practice Partially U.S. October few net last million increase the year partially as million due within increase on a $X.X Some practice in to automotive last revenue the revenue was increase days was to to above. with and training million in in clients last again manage the of pub to practice increase million $X.X XX sales the due completion projects, contributed due shipment. decreases QX, development services organizational learning million segment. and that the consulting in $X $X.X completed $X.X XXXX These services clients $X.X the drivers and revenue reading sales QX, acquisition contributed million being the areas in million publications decline a consisting $X.X to by training our line had which learning services XXXX. in practice. a of in exchange leadership million practice in events relating pubs alternative vehicle the fuels bridging in adoption, the development $X.X in revenue enablement decrease due an revenue due fall relief August. $X.X strategic for segment, division. U.K. our in decrease QX in the services in XXXX. revenue the XXXX by and government segment a timing than this million this the in enablement million in segment segment primarily which in excellence is by this Due contributed is revenue of practice transformation were timing million increases also XXXX revenue that completed the $X.X is for offset decline that a had services The quarter where platform decrease revenue changing recorded which $X the fall in million how net million a this in We're offsetting million increase of due of the with $X.X the and practice million comprised of is within a million the from revenue reported revenue in There million workforce year. months. the XXXX $X.X pub reported program XXXX, in in business decrease administered currency the of timing content

$X.X of segment, $X.X technical million contract was job in XXXX. noting due gross foreign level gross $XX.X excellent a increase million U.K. in in profit million that certain QX the margin $X.X gas gross the management line were above skills the organizational reported up enablement from reported to top of in the In from gross noted. the of segment profit from profit which gross reported decreases of a due up of primarily to training a workforce of gross profit, fixed on development terms that declines and gross of profit million practice engineering to $X.X of high overall due this we decline to skills Increases as rest decrease by has the profit profit $X.X the XXXX. due in out is services transformation net service U.K. in the in the practices. services of the reported QX million segment significant. and previously of on which service both reported be million segment million can practice increase Breaking $XX.X this QX, reported and is gross the exclusive offset partially increase the and business which at profit impact were rate, service $X.X segment is down this line. lower last record job revenue QX services gross in sales profit revenue the oil million XXXX in so QX The the revenue cost Gross a $X.X It million worth margin line is revenue in contribution XXXX. that QX reported in incremental Decreases

profit practice a a results our gross segment; turnaround at experienced engineering high by year-to-date things few when the service level looking on the on strong from slide technical operating nine, has Moving revenue touching XXXX. and on year-to-date

factoring when where QX is we BTS to out so vehicle material in encouraging. results phase this find the a a we company OD results sales our a impacted have near first the model second to on practices development the in acquisitions the organizational in addition to been middle deploy year-to-date XXXX. it Adam top the to sales fine business leadership, has and after while overall development bottom shorter grow In cycle, the mentioned new enablement The now the grow and practice by sales results line typically The of have the and drag to in deliver XXXX. results under decline is practice results. been in of service selling model the segment events and in launch been see nature deployed win being tend the in reasonably area The both the in efforts certain compared have VDV this practice. for of XXXX takes future. improved there the opportunity As Well

these While continue the manufacturers. this QX launch in with for vehicle Japanese will by evidenced the recently headwinds dollar as there's practice training multi-million been into announced contract activity automotive increased

single our the new outlook efforts XXXX. program. in starting is year-to-date lending results training job of the and the to model advantage skills operating and We've see Lastly, U.K. added qualified new take factor services biggest into improved affecting we're marketing to increased an going

to and implementation to certain Administrative issued a Moving XX, related is are in costs decrease implementation was a with development X.X X.X ERP was new related to of on due relates million on-premise the general the of third to eligible and of solutions costs to a counting permits million relates certain quarter-over-quarter. expenses decrease cloud-based capitalization cost decrease quarter. X.X which Expenses QX $X.X decrease SG&A the adoption this million during are million $X.X $X of capitalization on the the million in of primarily standard ERP systems. down the million of ERP party drivers about internal Primary associated related costs of system in million in capitalization in $X and slide cost The labor. which a

miscellaneous reduction quarter. the related legal partial X.X acquisition offset $X.X in expenses decrease expense. These was a million there including increase in activity X.X by debt bad were expenses addition, million in in million G&A In decreases a a

line Within external were called million cost 'XX the million, This capitalized $X.X noted cost is compared related primarily the to in X.X of implementation in G&A item capitalization to XXXX. QX ERP decline above.

As for Marketing and and we mentioned Development now Program. the quarter-over-quarter with business investment driver go is a system. being the million as $X.X centralized project, new QX in Sales on and running our October live spends X are ERP Scott did on the for the up Business

resources With management addition Sales inside our a Chief the focus. account sales corporate Officer of and

is was the our expense other to in on just $XX to an increase AR a at tax is up million non-cash Other which loss is to the the in business items. due our slide higher credit rates a the estimated foreign a and our facility XX.X%, higher million inner a million Moving other roughly of projecting X.X portion quarter. of which under about due for interest losses, quarter. of expenses development XX year-end AT borrowings expenses $X.X divested of due X% expense, on operating and quarter. $X.X $X.X expenses on And balances, and which monthly includes Income touch discrete interest for This we're unit million the a a divestiture item running falls unit business rate items, loss few per to in primarily up million, currency of to practice. in revaluation up tax organizational on company XXXX

impact items resulted which of reconciliation $X.X compared adjusted net in special year, this appendix in $X.XX the $X.XX to $X.X to for per in Moving XX, was $X.X non-GAAP to total QX income earnings compared the $X.XX EPS and is in slide of the to earnings QX. to on net QX A for with share last share year. presentation. of per on Diluted million QX million last this aggregate summary figure a Slide was

at QX slide to balance to of cash compared $XX.X XXXX. $XX.X the end highlights, XX, our million the balance on million, was Moving sheet of

the October million. to cash of $XX.X As balances XXst, up

million. cash Some October. balance $XXX.X of between debt $X.X as outstanding. during Cash of October million. XX, $X.X it's from slightly and improved flow October as converted cash million to end at year-to-date working The Debt improvement October tied also up has this $XXX is outstanding September capital of operations the QX the has net as totaled million. down was and cash the of Again,

cloud to million amount uses insights the for acquisitions our repurchases $XX.X cloud additional million, cash cash, capitalized activities. to impacted cash flow through premise use the expense year. X.X of the with million $X.X cost, cost European of to compared capitalized and of system this to prior and year-to-date year-to-date relating solutions the associated that of years. year-to-date relates XXXX implementation The $X.X flow which and cash $X.X plus cash from other negatively some $X.X For from operation cost of flows is flows $X that million above the efforts, totaled on which from million of noted of significant through ERP by for million operations, flow $X.X been million on cash flows million. with third-party ERP Share capitalized ERP related year investing the implementation flows that I've our

backlog of up as on million calculations. details financial adjusted XXXX the terminated and related backlog 'XX backlog compared is removal backlog the This page in adjusted the the client. $XX.X QX more an million, of concludes for which and The on a Moving XXXX. adjusted QX to XX, gas EPS EBITDA for $XXX.X on update, the oil of page excuse as $XXX.X being of XX; million me, adjustment to QX $XX.X was the million

refer which call turn can to back website. on end Scott. to the is You his presentation, appendices our I'll at of the the

Scott Greenberg

Thank you, Mike.

future can of company. of going listen some see things you why we're You GP the the the excited to if pretty on about Strategies, at

we those company. Directors the In the In August, changes three addition like that Board and of for the management at new to there I talk of elected been to have team changes, both Directors Board about.

has a SkillSoft. one Board of And the was on in and education Mimi she partner Warburg First is lot time, Mimi at Strouse. the of a space. was expertise Pincus of

well GP Senior Strategies, Jacque on which and Manardo; have Tamar Learning global we're space, director Chief was and initiatives, the education who Partner the expansion to industry the learning very Touche, Elkeles, board now and new Jacque Officer with for at responsible second, board third the August. happy in known the so she at Deloitte our him he The is well as in as joined Qualcomm well pretty and in right is the was and prevalent

In we're Robinson, our position. Director excited have Lead at meeting, our Sagard to with who's largest of Holdings him Board that was addition, Samuel shareholder made and in

from today, our Mike and as was they're Adam a and Mike heard approximately think doing you and sold great far the team, a Adam in I ago excited acquisitions As very job. in year

heard initiatives largest new today sales You about and system, on our sign long-term move on client our arrangement.

So, good things are happening at GP Strategies.

As said, the investor have With far over that it of October. have questions point next conference presenting at as, like turn is that to the Conference Needham will a recent we investor presentations you. hopefully had Analyst to that investor this I the we and at Thank received upon be Day in coming you based for up analysts. shareholders and lot being updates

Operator

now Please ahead. Instructions] the Barrington of will from begin line We the Research. Alex question-and-answer The go of session. question [Operator Paris is first

Chris Howe

in Howe Good This for is morning Alex. sitting Chris everyone.

Scott Greenberg

Good morning.

Mike Dugan

morning, Chris. Good

Chris Howe

up lined I had questions a few here.

a bit. them on touched You've little

saw growth between mentioned towards transformation implementation the quarter, you shorter practice. this I cycle the the and services shift the the of technical just sales and compare rapidly could business in engineering differences XXXX comparison of would maybe you outlook, talked know this technical process? performance and in highlight to about process improved some more implementation sales practice? process and similarities an services more How a sales within You this the you and implementation contrast you and in the engineering and to

Adam Stedham

the are Adam. nature The disaster had engineering business even overall, our current by the that. them. disaster this I for of of would and think changed -- the Sure, sales say engineering had We relatively the terms sales cycles of I same key thing year engage quarter is aided the the similar but leader for know, independent in office progressive or the hurricane pretty with some there. marketplace, you services. they businesses work, was of development on for how and I technical, the support shown our The focusing business overall, technical So, -- development, organizational we expect progress services. leader have sales organizational is same short growth,

who someone really So, change implement a and in and had had place, sales, just was who new to managing we we had their been model. focus

So footprint plan hiring and a to in the got of. and leader leader little the take said, marketplace to with advantage new the a sales sales existing traction we bit that faster implementing table new than then that it. that With relationships comes

similar. overall, So looking this it's forever we fairly think And at I to get we're engaged. to -- don't expect take

period We traction the for answer expect Does time. a in to you? it relatively happen meaningful that for of

Chris Howe

other It you, thank and one had one here. just does,

within the given and Just, remember renewals had put potential congratulation HSBC is that this talked this infrastructure renewal? about financial market on future contract. the in renewal deals of was I for contract, of guess, I the then the the in With services current past, place the Scott into what support your evaluation of

Scott Greenberg

company, service win got with signing the service subject we traction the were the outside new total of to the sign based I from company, contract, our what expanded the platform. that That renewal from, which of global the insurance is today five the a able now of. large years sales a in And on with ago, going of we're believe that Well, win. accomplish of win is with basis so large that that's whole the, our the Financial revenue financial just that's in initiative heels customer the when global the this good one we to XX% the announced upon large sector. in we would I services we see over think and force to starting represent financial customer of this. multi-country everything global that it's be

to just it. be of of So used could industries services, I and the market equation. platform [indiscernible] for think But financial we inside many continue outside the

Chris Howe

my very you questions. That's helpful. taking for Thank

Operator

from Partners. line go Please Capital Martin is ahead. of question ROTH the of next The Jeff

Jeff Martin

Good everyone. Thanks. morning

Scott Greenberg

Jeff. Morning,

Jeff Martin

of Now an of give strategy obviously as the focus area you've update going mean you've acquisition XX-XX within vertical after. industry? next kind that could us you're I pinpointed the that's an made last you there an your on the pharmaceutical months

in update progressing So, also strategically, of looking and sales an for terms process. things are how the in

Scott Greenberg

Sure, that involved complex a Jeff. looked the services, of keep regulations that training same the all we industries in, top various industries on is me. of the done lot industry things. which all pharmaceutical profile. looked can our is a type and But the When the regulated and we're and And industry Adam X% with highly It's we it automotive in, science industry supplement in. had the two looked revenue at by we industries. we where of when to government our was largest the either were core financial business at life our of an And roughly participated is billing at

a new You just have and introductions. other changes the one done, industries, our of technical lot ability margin FDA, And because probably the type industries highly highest of of our regulated, probably compared product quality most need. you being to of of the

penetrate starting were profitable people have $XX.X that So further in. We're if customers, interested or Axon, able highly are customer we're customers brought margin already there. in we business well, base. Strategies it for the revenue. area will have high they this of raise And revenue IC to assigned we did and be GP they it the was now some Because Strategies', making to GP very Axon base have, because to the as different different to about are IC of assign an an million acquisition we some

and would it. Russ' currently on priorities of say is of one he's working this I force, sales So the

Jeff Martin

performance market, if today. the gears comments could to business then Job of biggest Okay. Skills had shift the this And indicated on I that drag operational you're is the U.K

XXXX It than elaborate that going that's gross primarily that's view. of just and earlier a it. revenue upside of to to back both policy the was additional So services. on sounds could then if level be curious like from expanding to and profit there's there getting if change point your from you driven And

elaborate wondering that So, if and bit clarify as well. little can you a

Scott Greenberg

of about or the a payroll. A there initiated a profitable employers, on that of the Sure. I'm the tax and GP And regulations, half-a-percent history Job Skills changed a of of government Skills highly bit providers large contribution. XX% the sorry, providers, In little XXXX, is part was a -- small large then Strategies. Job was

actually large the from number the three X.X to apprenticeships of that anticipated vouchers would million the apprenticeships million got, a year a that apprenticeships the companies With government rise year.

we that platform reduced participation and the rest number provider from the small in providers, program. got done had the trainings government X.X addition, Part change increase the we're eliminating to how gone the area. mainly it. the year, exact now million. impact, to to of Unfortunately, to sales it get to first the we things the of work to where made We've opposite U.K. dramatically. GP in in the our we of where it's from have having how the areas by force, company, the and Strategies starting out were are actually large now level vouchers, And million apprenticeships the isn't to we What X.X spending and increasing quality IT, apprenticeship leadership, providers use was apprenticeships is the the part that's So companies' large was added into increases. contribution; of our within they're the starting to from in done some And has the it the include the up and of apprenticeships was took see we're level companies of small XX% that the to they system. of to figure where

and those lowering from XXXX. in That of 'XX the place quarters, raise companies thing see XX% changes, our being that likely month-by-month lowering to that to stream, contribution to that ability influx would the on on, revenue hope that quarter So the before one there from the new which without the the add X% to have believe first end Jeff, just the occurred, in probably government we We to XXXX, that's stream. at will to which but XXXX. to of XXXX. quarter even we due We of of continue in the improvements said, to counting starting second first to Other than we're revenue level back the prior announced small distorted but take April. during and students get X%, most is was not XX% the level just

have the changes, they added area. it. we've product, the to increase We've we're realizes So government seeing we've sales force, this made added

pretty looking it's So Strategies positive for XXXX. in GP

Jeff Martin

And that. good luck Great, Thanks. that's with helpful.

Scott Greenberg

Jeff. you, Thank

Operator

B. from next ahead. FBR. Zach The go Instructions] is of question the line of [Operator Cummins Please Riley

Zach Cummins

morning Good right. All everybody.

Scott Greenberg

Morning, Zach.

Zach Cummins

in going first be Good the about idea give of actually yes, these of you plans with terms to you Are contract. of the training just to Can it's product terms congratulations color or any quarters us Japanese morning. terms a be an securing And little it just the additional some with on in -- question around fluctuating the timing recognition of should to -- we contracts. how cars of anticipating manufacturer. recognition for revenue of from revenue One would this engagement? larger launch outsourcing company outsourcing the in be launch automotive thinking of have bit when this helpful contract

Scott Greenberg

quarter customer us year. be it few a last And the launching years a But Yes, well. into that the dollars. mainly contract really we million this does it'll of for few that be first gets should is had as really in it haven't what

that's hoping major within we're GP customer start So of strategies. another

you relatively in but one will in at of them five customers be past. top or we've GP the new four practice, automotive XX this If who, we a for have done and look our work the

excited a pretty be about it but we're will So like it, of quarter XXXX. first

Zach Cummins

grow Phase you find in helpful. implementing believe events an the your really II group. provided when into you the I little of And organizational of a it stated development update that's Great, bit on then, was methodology implementation.

total that to process? implementation fully how how many just being to is far are color the as little implemented there for of along around opposed So this a phases that more get

Scott Greenberg

of this in sec have the a it's a over phases, focus that really we've the say the -- organization. concentrated turned more I implementation that it's of we had second a now quite is along in that would So area Salesforce of bit terms what in pretty in far

the little with So just as to turning there over associated Salesforce delay bit a opposed of a is retooling Salesforce. an existing

would to quickly we'll we quite that with I as the that earlier, ETFs, help traction Does that to as comparing fast don't question say it. but So did explain get traction I expect does think we with two, the -- get

Zach Cummins

part pipeline. I helpful. big me going very it's really I that. And around growth appreciate then a from yes, know of the forward. it's is for final a Yes, strategy your current M&A question

as that So should pace the be it pursuing would of the be really helpful some potential industry, of to opportunities understand the of kind assuming and you size as lot a kind that terms evaluate of in of pipeline. we are the companies potential you you M&A of just

Scott Greenberg

about and at have Well, guided M&A we is will And again, the say on right really are Investor discussion activity. Day, think we one upon we I thing while what deals M&A long-term time. evaluate and we objectives for in based the some we evaluating constantly put doing the in company

is areas to the that said we I regions reach we involved the give global and Asia company. at in think important world areas expand of in Looking particularly we and past, a other Pac are say in our will the the us that and reach

we develop And all that and acquisitions could areas automotive the financial pharmaceutical, add third at company. we are that which at disciplines our industries, done I look services we've across we we the major basis. customer sell trying think, is then, certain and major important we we that's to area look and have cross industries to could

are to bring of factors who well GP our that is as at any are industry extent in strategies, customers the in of an beginning disciplines success companies, cross We XXX we the currently the dealing any in could in of parts acquisition did sell XXX which we the like with the year, implementations, so we done which global could world. about of

to that's us. So interesting

We looking and part are as feel comfortable debt things we at are and our with activity at type the us, think those of I levels as look our well. So look we as leverage of things at. that's far we

Zach Cummins

All questions. thanks for right, I color again appreciate the and taking my

Scott Greenberg

you. Thank

Operator

our closing would the back for I This over any turn to conference question-and-answer concludes Greenberg Scott now session. like to remarks.

Scott Greenberg

you, Thank Haley. you. Thank

closing, in you've the think heard I presentation. today

about, the with items large track, Adam the talked a Mike we heard new win of services, outsourcing financial think, as are I developments. our the lot the about positive you've talked signed on The well. in today backlog sector, right insurance the

upon of will So items, all next we these quarter. on you a again, to XXXX forward positive I give updates and based we look think

So for thanks participating.

Operator

has now for concluded. The presentation. attending Thank conference today's you

now disconnect. may You

GP Strategies (GPX) 6 Nov 182018 Q3 Earnings call transcript