GPX - Earnings call transcript Q1 2019

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Operator

Good morning, and welcome to the GP Strategies First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ann Blank, Vice President of Investor Relations. Please go ahead.

Ann Blank

you. Thank and strategies everyone earnings quarter to call. welcome morning, first GP XXXX Good

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

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

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

Scott Greenberg

of provide our achieved outlook the and first And quarter revenue Q&A XXXX will gross CFO, a both for XXXX. presentation, I'll After profit conclude results initiatives. quarter analysis To reported your in on President updates overview you, our to will before call. presentation our continue you'll an summary, market Adam, call, This and financial for Good I'll will strategies. useful the our this will our first Adam's the it's a Dugan, the results initiate Then we first results. includes GP we morning, Today of quarter financial GP session. then We first XXXX global of with The conference present Strategies in-depth find and brief Thank and format quarter provide improvements. WebEx our presentation. morning, informative it's a significant future. Hopefully give which company's Mike positive quarterly welcome reinforce Ann. key analysis. opened, with

quarter objectives. first progress showed the long operating achieving company's term in results The

for In addition, we see our momentum new structure future revenue. gaining sales

is up customers corresponding an positive of revenue over had And prior high year-to-year backlog we've the our our $XXX.X considered up from recurring the revenue XXXX. from March is which in derived that a of stream XXst, XX% basis of that over year. is our is company Our period all-time attribute XX% on is to million and a typically of XX% of

In the the accretive addition, to we pleased and be in TTi expect progress with beginning XXXX. of are quarter with TTi our acquisition second

the quarter now Adam. building quarter fourth negatively is of foundation and first the by Company's that believe continued discussed on post I'll that the Oracle to call the turn on TTi were expense. over being results integration impacted earnings said, additional company acquisition the the course While severance I With the call. implementation

Adam Stedham

backlog that pleased We're will realize quarter It's make Scott. feel demonstrate are regarding first We Scott earnings efforts to XXXX. you, with and key the confident a beginning the to important factors operating an of our revenue Thank results that throughout couple transformation to that grow continue mentioned. our impact.

First record backlog in. TTi without Strategies adds GP simply factored any the has backlog backlog a total. The to TTi

backlog our Second depleting grown without we've pipeline. our

in up backlog pipeline our backlog. but fact X% January This both the rather pipeline a in and is backlog, conversion that indicates a to pipeline since In not X. increase of is increase simply market

our the pillars of shared on At the strategy largest of to the strategy aggressively a we A through of expansion history feel the large percentage Strategies XXXX. clients gross margins able historical had targeted North we'll discussed result wallet QX the expansion expansion the by We industries. outside that for is company. in realize growth revenue regions. business international had four to focused we margin point, Day. within our growth, business of expansion, portion and plan. turning indicated we're expanding organic America acquisition international in be GP our back our around key for of of our to working shift and of the Now be a that Investor North margin to end At declining time of recharging outside of that the and business focusing We're levels. GP to that we last we margins call do that historical at areas And strategy. America these share able we'll acquisition of our TTi

time growth. pleased these minute. in declining we I'll seasonally during of and about realized around Investor and the Development optimistic We're turning continue strategy a up our XXXX constant The sales our on QX, everybody remind versus growth some focus units little more the Regarding is strategies. first just with growth, has that Technical bit year in of results the two Organizational weakest I'll quarter share businesses we're the year details were that in about we a to GP discussed organic organic QX both our ramp continued that organic services. quarter business currency that and services Day that and Engineering is

price a with EBITDA. our of of margin acquisition cutting at it on value. operated acquisition and shareholder acquisition we a on for This focused focused significant break to TTi size Prior through roughly we're far TTi Our the acquisition for track pleased shifting the very while was strategy, this considering feel opportunity Thus year. their costs. profile improving sales outcome our our the provides this year we're progress we're plan simultaneously and even

reach discuss impact and to Excellence the to business wins, QX revenue positive not run impact we're Managed sustained Services Workforce have continue and just we and ramp outsourcing like trends monthly quickly QX. for by QX our of segments training in I'd to middle anticipated our QX. the financial any everyone to announced shift Learning they'll segment, will Within QX. minimal little rate like have. to previously three bit that a have we see I'd in in remind the in The the profit the Now conversation

undeclared the Services three of Learning just January contracts, contract starting a our million contract per to three three contract we've begin begin year. wins, contracts that discussed of previously $X.X year this Now Also will begin as for another up year to are five important Manage Manage recently X, build million been addition exclusively will that year, trend There's we to North of Services $X.X I in Europe, awarded verbally next August an Learning XXXX these in year X to won book per America. of those outside year outsourcing out well.

with the contract across regions One all is global revenues a distributed the over five world. of

So, will contracts strategy of these North outside our of continue to growth expand America.

segment, loss experienced significant the based the organization currently large project. effects they'll and significant a overrun QX. QX services backlog on they in will of service experienced a be due growth very in operated single but In within profitable adverse a small Workforce business the be a at XXXX. Now organization business lines all throughout Technical That of XXXX, loss QX to gross fuels has QX, profit profitable broad in a Excellence in the Engineering alternative and

acquisition our includes the move services let's development This TTi and practices. on the enablement the segment to So inclusive practice organizational sales segment. transformation business of

of enablement, TTi. XXXX sales up QX, backlog For XXXX is the versus exclusive QX,

is later industry sales into the was due very reacting year. and enablement the revenue XXXX segment automotive the although profit strength our it growth to for primarily We've QX, a strong schedule versus our that's down publication automotive and within business. shift pipeline it of for the to in combined The our and client slightly historical addition gross largest moving In also GP. experienced TTi TTi acquisition positively a

helped growth incremental has multiple achieve strategy automotive us clients. Our across

rate. higher is for XXXX to this versus is we a the practice model margin strategy the driver shift gross higher margin run services. historical be operate development of a contribution, at excuse This should than contribution XXXX. organization me at development. focusing this discussed profit believe in operate gross We our and on our the organizational moving key QX, model substantially QX, up to margin consistently organizational efforts Now sales strategy higher this Previously practice, the able in around for

by more this revenue revenues believe achieved. our focusing these on we contribution realize historically services, scale profit we've than the margin we on will gross As higher

over update And businesses. I'll the on an more now for it Mike of that's to turn So financial analysis. detailed the

Michael Dugan

$X.X increase million in was and was alternative the of segment, to government, service with $XXX.X in demilitarization everyone. due due reported drivers Thanks, increase is this in revenue and was training by revenue $XX.X were services $XXX program the million practice Workforce of from revenue offset within reported X.X the profit million QX $XX.X how foreign acquisition XX.X% Bridging Transformation or revenue QX UK The the $XX XXXX. workforce drivers contributed recovery in $X.X $XX.X IC or Services projects, X.X% in QX Slide net fuels reported of by the May $XX.X job practice. Sales of million in million segment in of in segment. million less last the to practice than Starting completed segment in million in up increase X BTS from Sales increases is which in practice ETS million good million increase publication the services ETS revenue disaster practice out the 'XX a segment. revenue segment. line revenue which and in to revenue net a the segment $X of QX million a primarily of million Within to XXXX. for $XX.X million currency presentation. due service that revenue Axon to $X.X which of decrease primarily The recorded million million of million increase morning revenue $X.X QX revenue increase the included QX Excellence XX.X% Bridging Enablement or revenue to decrease currency within exchange million million the which a the of other in in and skills The million practice primarily to year. of development in services. decline in caused reported Changes Breaking the in worked due revenue a $X.X BTS $X.X of in reported this the completed gross a million up increase revenue revenue platform $X.X a decrease primarily a Enablement Europe Adam chemical on a $X.X in global in TTi administered TTi which reported The from Business a and foreign the the Partially changing, million 'XX. decrease acquisitions QX had for Development in in contributed contributed offsetting of adoption million million revenue organizational is last The -- workforce $X.X net rates $X.X $X.X due revenue million changes from the UK the revenue rates. XXXX. services. is Overall of excellent of Learning net excellence were increase exchange Managed revenue due of net BTS a revenue decrease U.S. and Content segment revenue publication Training net the $X in QX this was MLS the due government We the increase in up services increases partially had $X.X which year. in

QX $X.X of of in projecting are $X.X revenue 'XX. publication at to to 'XX be in million We million QX compared

practice even $XX.X of strategy segment in TTi development The increasing is in revenue gross reported QX million $X.X is reported $X.X were in Adam the to $XX.X in higher In business profit primarily profit from profit was due The to increase a the revenue last in gross profit increase It the by and the year. primary increase $X.X a due profit again the profit decrease pointing Bridging profit increase increases $X.X $X.X gross the XX.X% or this which which organizational we primarily in offset profit due on terms in out were gross $X.X main the up acquisition. ETS XX.X% of increase skills reported profit the is excellent this of 'XX. practice. to in or workforce million has segment to or gross services the due QX gross in services million focus gross as practice million million UK primarily drivers, drivers segment mentioned from in service of a revenue to partially the 'XX. by $X.X profit gross training which the of due profit the million increase the segment million of is gross profit, line MLS reported of which reported gross QX million in also selling $X.X Gross from with lower reported worth in QX in the million XX.X% QX been the practice the revenue million previously noted. up in OD, margin transformation gross job as in contributed decline to up

Moving bad administrative increase expenses of QX XX.X% acquisition, increase There cost from million in debt the G&A X. in a on Slide the a $X.X or acquisition, million of drivers quarter-over-quarter. in XX amortization in severance are expense expense in TTi bad up General a $X.X on and million expenses QX expenses. initiatives QX, was savings from The in in in increase miscellaneous million to increase in other $X.X SG&A primary the million million TTi expense G&A up are a quarter a credit. $X.X debt debt million related booked $X.X was as $X.X expenses $X.X bad to net in was debt bad increase versus XXXX $X.X

quarter million included implementation the expenses well the as life ERP and audit system. quarter, new related postal Within fees incurred $X.X as increased of services support the G&A to the continued during

XXXX million quarter optimize expect the seek as approximately quarter the to of ERP $X.X per fourth We to incur through platform. we

be during program. rate $X.X QX additional forward. of the the and in there Sales inside is not incurred expenses business management in and with are million million XXXX of of run the to marketing for an million expected expense quarter to Finally addition part of quarter-over-quarter drivers severance the personnel unique that the being up QX the incurred $X.X the going investment was $X.X development, corporate sales account in

associated incurred 'XX in the in on restructuring integration million P&L connection the related cost TTi tax up QX Rogers the In $X.X QX, our items with gain to to of the rate, was the is the maverick in the due on effective Interest contingent of $X.X interest reorganization with contingent XX. to XXXX facility $X.X million McKinney income changes QX of on valuation. million and slide million in the primarily We higher $X.X compared fair consideration rates and other Moving to consideration on and prior under is charges borrowings of in credit expense change savings and of 'XX related $XX.X first QX $XX.X initiatives. $X.X value tax was of million of QX of the of income one-time QX true 'XX XXXX included tax. tax rate mandatory versus the million up in in rate million minimal, 'XX. The repatriation

$X.X per was items share in to Slide for of QX to on $X.XX slide Diluted QX EPS million per earnings and million the an QX year, million reconciliation 'XX for adjusted $X.X in the share A compared share both QX for adjusted versus per $X.X million Net in of $X.XX on last per adjusted this of of of special and is EBITDA earnings of XX. last Moving $X.XX summary EPS was QX impact 'XX. net aggregate $X.X which was income a share earnings per totaled appendix year. EBITDA to $X.XX of QX Adjusted XXXX. compared share QX the the presentation. the to for in for adjusted in results of

highlights Moving to on XX. some Slide on balance sheet

debt Our cash is million. up net $X

up associated managed earnings system. revenue the unbilled implementation of and with QX, while was approximately liked disruption TTi materially of these these the of of primarily the our million balances January $X.X balance over in new stay last into we carried reduce a net ERP system recall only result million, the $XX In accounts you would being we not up as February. the net as we as the If in the call, to, acquisition did have terms excluding even deferred to ERP and from AR disruption

audit subsequent normal with billing returned close quarter to a we the timing to teams cycle March, focused and on until billings the wasn't up As saw first backlog. begin It and were the the catch that more support.

per billings $XX January in month. $XX this, and billings per February on and for metrics some March averaged averaged For million April million month,

May, back to and While clear May that time that more a returned in still cycle have billings -- the been delayed -- normal early we at time. little we to backlog billing completed anticipate this at will billing any have

of at For QX the the convert at outstanding for March, compared compared The up the as as April to take items, roughly the date to was XXXX. QX, end leverage end respective of Debt X.X from million to AR of $XXX.X of XX was cash. to the of XXXX. to and 'XX of the QX billing X.X early days million May it $XXX.X invoices catch ratio should XX the

In on addition credit there million $XX.X was ratio to the our borrowings cash a under as of on leverage million of XXXX of available QX, hand, based X.XX. $X.X of facility maximum

Moving on XX Slide to backlog.

as of at million to which XXXX Our XXXX. million QX compared the XX.X% million QX, was or backlog up of $XX.X is of $XXX.X $XXX.X backlog

$XX.X backlog to or XXXX, Excluding the the of Scott. within I'll next back This as of of our revenue call X% QX now turn financial TTi million XX% up $XX.X QX the the backlog update will backlog XX and the be concludes million over approximately is months. recognized

Scott Greenberg

Mike. Thank you,

can in As made Adam, Mike QX of and we've great hear from XXXX. you progress

explained positive such trend G&A things weakest You our heard expect of is some and And despite the we strong impacting how of the positive as TTi QX future, all seasonality about Mike priority to a pipeline in the as things. a few expenses quarter. integration results major then it

now sheet year. non-core any that's assets from As ratio. XXXX company the cash and leverage And improving to sale the till from strengthen flow of the uses the debt end reducing overall, free company far a balance really its of by its and as in key operations

relationships weeks the investor active as come far next actually conferences. will we be an presenting very in investor As to in few

have B. and L.A, With May We of look May the Barrington updating XXnd Needham York We in in to Riley that you conference and on quarter. the forward in session. turn City New May you to second seeing XXrd. over Q&A moderator, the at XXst, after Chicago, I'll it many

Operator

[Operator of ahead. comes Please Alex Barrington from first Research. Instructions] Parris our And question go

Chris Howe

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

Scott Greenberg

How are morning, Chris. Good you?

Chris Howe

good. I'm

saw First has that led that with color in you how I following in internationally the the five structure. outside from that quarter. and this Could seeing sales the drove success incremental quarter seeing success increase wanted structure the as pass on outsourcing contracts the X% of the to the North America. out through you you're on sales you you're just the some on, backlog to that up of start maybe new sales three provide benefits some of the of far as Can what structure that, with additional

Scott Greenberg

Absolutely.

different two I So, -- for it's two answers there so think the parts. -- different is

So structure. first the with sales

revenue the So to force we're sales give what historically centralization the us positive to for with opportunities that chance it's win and investment having the business. time enterprise, and force the was distributed enabling more sales sales any type revenue, that sales distributed their really opportunity value, us a high of regardless big the equal on sales able for person the profit of is with and relatively we'd of they across individual it's it given structure the a point rather great to force much enterprise each the give to like enable Through focusing it a clearly us business in than the with across the necessarily achieve. at focus centralization high on of that

giving of contributing result. focus so and structure, is higher big us focused also the to to that's that percentage which a a wanted the ables where us we backlog. that's win to It's driving sales So part really be

conversion our up. rate pipeline has So gone

on The international other piece. thing the I'll point out

with know conversion So in in lower high look a in our we much our pipeline outsourcing Europe. pipeline had very you success at historically North training if practice, conversion outsourcing outsourcing for for success rate you training North outsourcing a our America. We wins, rate America had

management the of part as as team was reorganization, that did we centralized specifically. for well, what outsourcing our we training proposal So

the the put teams the together put are actually and that these and proposals pitch. So write together models the

All had the same of we the much pipeline better you? pipeline that historically they're the Europe high for in that a that that question a [indiscernible] conversion conversion and in U.S. answer region. handling team getting now have Does so

Chris Howe

me does, question. leads to helpful. that's It another That

be Can your for of about should expansion the our in perhaps the opportunities margin what or you improvements pricing, it see be you through opportunities that whether we year the of characterize highlighting expectations and expansion remainder that cadence should are for industries. Just margin international forward? strategic the moving other

Adam Stedham

feel the a it. profile will is acquisition, to why we going going target think if historically and over strategy don't want how specific about we at for overall terms to the we a we're and the think the of implementing How operated point what the recent percentage. let which process in number There margin business comfortable firm. a margin with is that is think the operated expansion. at, But then GP we're get I that to margin of margin at process be, will contribute we that of two today. I margin improve this and historically the the expansion parts the expansion to for characterize think give margin explain lower we or me the TTi One

In to within margin a the is that, existing really key to expansion of selling our our services accounts. incremental profile our addition valued high

niche value are deliver on marketplace more a premium a typically you're higher to them. and margin that's services Therefore they services the additional customer. to these on a realize a pays more them able So lot

additional that margin customer, to simultaneously our introduce gross far is, account provides So, us. or to to are provides more attempting management services us percentage will a greater help it but our those of big also part margin account strategy managers is to far

experienced by driven really we've it's manager account and So significant cross-selling. amount strategy our a of

we which the that's that's and indicator that margin happening for thing call, amount an is how gross on provide more of the -- that's onto I increase, it is information good think how on you're next achieved leading a it. cross-selling we'll

Scott Greenberg

you GP of that strategies the And the interested of beginning high of if could tends the the industry we've I in at level industries we if been give sophistication in of -- XXXX an made that to that, and work us one to year, add is that [indiscernible] in looked margin and acquisition the higher last pharmaceutical particularly and the profiles.

So development of mentioned, is our lot that into a effort our end as the of business Adam effort lot strategic have high margin tend portions going to of or programs the company.

Chris Howe

And one then, regard your more look update on the at an Can last difficult provide going forward? what I seeing question had you on this this be skills just marketing you're being How training. comparison. to we and UK should business job will in the efforts

Scott Greenberg

to a of the that XXXX One we things. QX, don't is be QX where acting think above things driven crossover the QX, couple downturn. would is a So us XXXX. for a little quarter of previously case. we foreign will that's be Right is not be now going be couple QX bit would exchange below, thought it'll this a by favorably create so that still

ramp sales as anticipated. force happened the as hasn't In the of addition we'd up quickly

Now higher than QX so QX based the will forecast current upon a doubt year. said, without with that be last that's

So comfortable we're that. very with

model, April what yet, seeing had that we've we're the we April, X%. which non-refunding from best of impact is don't addition that the XX% in In the change this on from the that part non-levy but month a policy had starts month work for to in the the is of XX on a contribution months. was to We in know very the a starts strong

to favorable our positive April effect. government that with of So volume that was apprenticeship had intended appears a a actually We very anticipated. better we is what having increase change, inset participants to be than April the

quarter trend give be than it current may QX last us year this right this not that But little bit quarter, in So anticipating a well. continues are favorable to lower optimism year. we is up, now if that actually QX it'll possible pick the as for we're this

Chris Howe

Those all right the know. I'll great to That's my hop questions and you. back for are queue. now Thank in

Scott Greenberg

Thank you.

Operator

from Capital Partners. ahead. Our Jeff go next comes ROTH question of Martin Please

Jeff Martin

back about an you you our Was in. morning lead your to if starting now are just bit six, the curious longer you time months on the at generation could Was give Good know guys. how in lead parts quite business. of Analyst fall sales seven just sales longer us for a curious cycles update trickle cycle those Day passed the that talked

Scott Greenberg

Sure, absolutely.

the on can and to give it you you I update then So in right. the that future, think help understand how about

at sales longer but during cycle to primarily the So two if types have customers Because initiatives had beginning sales cycles. a are the not of the cycle business awarded those of or business you QX are Services QX. Those exclusively sales our primarily Learning which businesses look our tendency businesses. enablement in Managed long to align annual budget

of year. take end to the then of activity QX, will place QX next and procurement sort participate it in going in therefore they're some So, in

the why than mentioned earlier and in work they contribute up kick I wanted in in you QX a impact you're to far we three all won, QX QX. in even that in last kick didn't QX, so minimal QX substantially has last they we in, that season fully starts contribute had But ramping our then stronger selling but QX. a outsourcings We'll even as it have year, setup we didn't So in that's though doing then in that that, would not anything it anything of we then win like good as higher to with and for high so years. the several QX, be, it been

year. QX materialize we're high continue what to as preparing means which year. we rate for quarter doing success in this report So a will it'll that for is out in QX during that it of on then and in is, thing other QX, quarter strong we're as that a long the the selling have QX And next

has just thing won historically services managed happened which frequently, another announced another contract. I that Now or didn't learning the outsourcing happen that one we training

that changing dissatisfaction client current the because supplier and their mid-year we've supplier. their won that with won because is we So their

cycle it start want of supplier situation, out to switch another XXXX. us. and Similar they're won from switching because we us they to us. transitioning to and also outsourcing that away just I to -- switch until that they're from a won't announced So lose excited they're to

how contracts, on stacking year since effect of sense. that's year. next up throughout the more That them towards win than end makes you revenues work win they then get of long you of And other. where that the rest one ramp there predominantly of you multi-year are the year So and those the that's the cycles the if sales top

Jeff Martin

helpful. does, It that's

of your anticipate backlog. to correlate backlog. Should four your organic three X% over quarters in growth terms organic rate maybe In that to in looking out or we growth growth

Michael Dugan

backlog that that the organic finite general on X% you a growth for calculation and of it's us. something take indicator So a it's a indicator health to can comparison us, quarter-over-quarter for more that kind translate and a of general is say more not of

we had while wouldn't So together. those we out we're, there, directly organic strongly that the growth two objectives feel about I tie

Jeff Martin

right, a assets might curious is sale of the of then in. Okay. And was there on timeline assets non-core potential -- what that? you -- areas be And you there, mentioned just mentioned sale those is

Scott Greenberg

few a evaluating currently are we Jeff, of those mean I assets. non-core Yes,

based upon it of be going and value. is market Some to conditions

the areas. And know major the think say this in just pieces of be would will that So in where portion you at obviously right would company, now half year a different some to think stage goal don't the the it's its I done second is get but be it of I nothing imminent. I

Jeff Martin

guys. Okay. helpful. Thanks That's

Operator

Zach [Operator B. Please Cummins our go next Instructions] And comes of ahead. Riley from question FBR.

Zach Cummins

think quarter, the the just was morning. the I from the TTi in in a two anything is Thanks you year. in excellence segments? million Yes, if for questions there between BTS revenue there could said I little segment, to and the strong segment, provide the XX-point of workforce color is taking I on Hi, good mean congrats more wondering those my terms in the amongst you start contribution around split TTi

Scott Greenberg

Yes.

rolled sales tracking up we're of all our is the Zach, So within TTi practice. enablement acquisition,

$XX.X which million entire sales embedded acquisition TTi of the enablement. that is So is the component in

Zach Cummins

are the look versus towards services over development services group. Can providing that specifically focused been to about now that do What you've within being structure the you also Can you're Understood. the the That's years? within higher just same the couple organizational typically those margin within talk organization. you past going progress And helpful. back sold. about talk that sales and that the of then like

Scott Greenberg

the sales with last force sales Day in the shared in that shared force, we turnover So and year that Investor the progress we had fall then. significant a that of we

their the the run the to force So now rate right. salesperson cost versus of a them A now, hires A sales classify be profit that typically takes I at nine it's fall typically a our hired organization maturing. XX on model. were inside in as basis, new to new we full expect basis, would monthly to positively that months between terms the to in incremental of their sales somewhere consistently in contribute on monthly bring their lot

hitting that now. point we're So

good that. pretty feel we So, about

in of of historically the few selling the So terms work, things. a there's

we capability adoption those platform to Mike significant trying services. the the some to that mentioned, sell, of technology, in in with associated a within the were services before sell that we selling had cost Some investing the investing of services were

so, we sales. beyond had And make incrementally making incremental were well were the that we off the investments that profits

emphasizing we've just stopped selling for them. services So those

backlog We and the just historical customers customers, to we to continue looking continue new off any cost Because add high. -- revenues to we're and not them from acquisition too to generate experience is repeat that. sales customer from but

designed higher those in have development focusing there, we're within selling So contribution we've addition force. and -- have and specifically on those sales that a within new we're that's leadership the products we areas to other margin

Zach Cummins

about to that's the it, sheet this receivable from then, in kind really any the on balance sheet term you here it's Thank the final should just the get concerns terms be for there cash the thoughts accounts QX, contributions different of positioning but you're it balance you of And address Yes, XXXX? of forward as for balance question near I helpful. some and ways mean that. rest like you. one sounds Is at to cash your going line point in really into a Scott helpful. that. outlined just Got starting the in you've few

Scott Greenberg

EBITDA we first flow expenses you we been our quarter, that's XX% the show, adjusted that look our generate have cash of in and onetime a severance the EBITDA or projected model. we to typically had and really EBITDA our expenses. Yes, we free of When various at lot XX%

So we obviously in future year, quarters. expenses and the through as those we go have don't

return to expect We to in historically strong generated the that cash relationships EBITDA. our has the usually company flow which is with pretty

Zach Cummins

helpful. and thank upcoming the Well of you in that's Understood, best questions taking quarter. for luck my again

Scott Greenberg

few a in see we'll and at conference. Zack, weeks Thanks, the Okay.

Operator

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

Scott Greenberg

moderator. you, Thank

pleased company lot quarter and after You the today. second for results with you the momentum the at know Thank conferences. we And like where we positive on participating look we updating seeing of forward you and the investor you are to are. in we the

Operator

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

now may disconnect. You

GP Strategies (GPX) 12 May 192019 Q1 Earnings call transcript