GVP - Earnings call transcript Q2 2018

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Operator

Greetings, and welcome to the GSE Systems Second Quarter 2018 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kalle Ahl of The Equity Group. Thank you.

You may begin.

Kalle Ahl

good and Jesse, you, afternoon, everyone. Thank for you joining us today. Thank

as could, considered will, results. I could and words of Before statements mean of guarantees These may, and concerning uncertainties remind be Act actual the of absence statements, would similar that forward-looking. Section the everyone These amended of are XXA begin, Words anticipate factors not risks achievements of this or performance statements events not should, and but expect, Section future meaning future that may XXXX materially other important course expressions to XXXX. Securities performance intend, the used the to expectations like a we believe, does Securities cause forward-looking reflect not of projected. be of within are are statement such and is current to during that statements call those and and different are as identify statements forward-looking to XXE their made from subject Act

risks, and the resource considered allocation. believes operating competitors. benefit evaluating results such information evaluate GSE’s historical GSE’s the other On should investors not operational regarding measures these believes operating GSE as in useful, company’s figures other GSE may Kyle G to as internal of information otherwise. in budgeting, Risk this as GSE its A Investors Accounting Principles, uses can I’d of compensation not management’s any or full measures, EPS, to Since to, facilitates that performance of are This any Management measures results, employee decisions the make over the forward-looking call, businesses management a to ahead. non-GAAP measures and may and of of Accepted statements, substitute supplemental performance section. non-GAAP measures to income does comparable SEC the financial for Loudermilk, be set Management both of titled Systems. as and found of in These these go certain those comparable or under GAAP that GAAP Mr. well in non-GAAP as adjusted SEC, update these and now adjusted like Chief Regulation filed GAAP. file to prepared management measures figures, finds Factors accordance the performance. operating in of to reconciliation recognize GAAP uncertainties addition documents a turn for results. measures For to to encouraged by might whether Generally including factors, addition you with these reports non-GAAP to net superior meaningful planning, which that similarly their measure EBITDA, future be information, should adjusted provide companies. result Executive call with intend company’s these to accordance or performance a periodic not release. most please and forth or not be to the EBITDA, events Forward-Looking revise measures read GAAP. and in non-GAAP GSE’s of Officer with earnings Statements discussion under refer are comparisons Kyle, on to new

Kyle Loudermilk

adjusted found a second if the the Earlier Operating website Systems strong can News GSE’s value you demonstrates fractured Chief strategy industry. covering to have $XX.X also contributions increased through ecosystem performance today’s from copy significant up rolling EBITDA release Chief quarter a press XX% our today, XXXX under like to and are XXXX release, for Chris year-over-year XX% purchased to be and a a driven on had million, you’ll revenue Hopefully, company financial issued financial review Also power conference a afternoon. Financial good GSE’s in I’d call which by million, and quarter Thanks, create vendor to and this everybody news second Emmett call. North record, of $X.X the results. scale quarter Consulting, a potential at year-over-year quarterly record; to not, this our nuclear Absolute the our we acquired chance www.gses.com XXXX. but we results XXXX and on True financial May Officer. which welcome Pepe, quarterly Kalle, to GSE’s GSE we section. Officer; grew our Sorrells, our September Consulting,

which are platform rapidly fully and North, integrated expectations ownership. into have during few months True folding meeting of in Absolute is We GSE’s first the

of like the additional them is color provide that reiterate follow. and making two are our me XXXX on bit in call, progress other later more expect we investor as first pipeline, M&A and our some highly presentation. delighted benefit opportunities the will GSE strategic let outlined but few deals Vision a our acquisitions in really acquisition with With Chris towards our these goals, complementary

Given million the between of a XXXX guidance, into current rapidly million achieve can in potential Vision help goals million not to and revenue $XX with million in and adjusted given assets $XX the $X remain $XX we deliver EBITDA. new confident basis, set our internal current quarter. goal, that revenue our $XX an $X $XX acquisitions over cadence quarterly of appropriate we adjusted to of million us On and a and company, EBITDA a is is million of million pipeline, million any on and of of $XX to orders, this maintain million, transform $XXX eventually

expected While nature $XXmillion, use be benchmarks we $XX quarter-to-quarter and takes, one of the to measure business to near-term and that puts due million, our $X typical of our quarterly should will million internally progress. the lumpy be fluctuations

asset the EBITDA. achieved base During goals our for and we revenue from quarter, our adjusted

Industry Performance awarded orders two Solutions quarter, worth and quarter second a quarter Solutions Performance power increase Nuclear million Training we relatively the for in Among XXXX, between this approximately million were and of our $XX contracts approximately orders New split this XXX% work totaled from $X with nuclear Consulting. even Improvement simulation Improvement China.

simulator totaling in The to continue orders the million achieved Industry two providing staffing over segment software $X.X to received significant services customer we of Nuclear Europe. for work Consulting million just $X process funding the additional U.S. Training and U.S. a and maintenance addition, significant Southern and in In

to million solid international gaining of are and is business and training demonstrates significant awarded to companies’ new customer momentum, GSE’s the totalling relationships. third strength highlights upgrade the of Hydro a to solutions The was for critical unit core the book approximately of contract update We building simulator our This our quarter. XX-month a note, deliver the simulator of a start simulation globally in ability and GSE power schedule. nuclear over new Of Korea. contract Korea $X.X long-term award at

as especially Performance Improvement backlog please I’m two and are $XX.X quarter-end revenue all at the solid backlog the Performance million delivered utility growing strategy we burn-down on Southern effectuating $XX.X to of of with in for on a backlog. operationally project $XX over significant of Sorrells, corporate proud for of discipline. year $XX.X ahead. focused when in by Total Nuclear remained backlog team’s million XXXX. Consulting development very million backlog given conclusion, XXXX of driving deliver the are end consisted path our our EBITDA a These backlog half growth go execution Our our to we’ve the numbers, and million the I’ll our Chris, roughly executing on compared and to first and the sustainable Solutions of turn which of value-creation Industry right told, COO. of strong signed and $XX.X In believe to sales now Chris million long-term, ago. Solutions the at we’re shareholders. nuclear to Training years over accounted our call operator, backlog,

Chris Sorrells

Thanks, Kyle. acquisitions. with begin our on an recent I’ll update

look and In making after or goal North, deals to a We approximately has attractive is and disciplined added of been these for EBITDA from company. adjusted forward a the $X GSE’s to of past delivered deals EBITDA. and of identified investors. target We’ve of synergies, and six two months, accretive May value-creating met times continued more Absolute approximately annual adjusted our the as deals an the results September, North closed revenue opportunities is these is improvement. adjusted roughly an and contributing including expectations, we $XX our deploying on continue stand-alone synergies. our Our profitability. identified we $X.X These which approximate synergies Consulting range XXXX, an million million ROIC This feel year. This acquisitions capital annual $XXX,XXX by close four to million of and $X.X EBITDA, to is results implemented operational that, basis, last driven our XX enhance for million acquisition increase the including EBITDA. of trailing to approach has Absolute True strategic annualized adjusted its True revenue to on two XX% we XX, Since indicative to estimated financial paid improvements are times, within highly in look results. for four per

the about professionals. North acquisition, and group created enthusiastic really how with very of impressed woven quickly have True are We tightly a I’m we

cross-selling We collaboration sales offices, efforts. back fit, cultural integrated businesses across departments and great have finance efforts already are the and witnessing and

fully target We unified integrated True remain to a the North GSE branding, quarter. of company. for featuring launch logos North, on the including also be We third in have True

robust remains remain we in and very pipeline disciplined approach. Our M&A our

our a million As with tuck-ins, EBITDA million. primarily focus smaller between adjusted efforts to $X development $X corporate reminder, on companies

compelling culture management Our criteria price for representing a accretion and acquisitions shareholders. are scaled aligned our teams, to and fit, excellent attractive ROIC

opportunities disciplined did We year including during deals of Despite acquisition have $X hidden XXXX. diligence, front. and a softening this gems diligently several M&A remain from turned meet early in given the across by market, value-creating targets EBITDA. working criteria perspective transaction on adjusted overall million We coming due are the are and down to very active close north the another still valuation the not we

the private to adjacency opportunities tuck-in likely customer of can our opportunity While of in experiencing time. and we transformative with with our and core as we our building not employees opportunities the existing serve And developing for upgrade smaller so and will transformative strategy for Transmission A we focused offer and our ignore as skill is deal compelling business a on distribution technical acquisition engineering leverage domestic to nuclear, and distribution, a addition to Also, us actively utilities and some expect surrounding grid transmission for and which as set network heavily invest relationships. do as investors. to in entities. growth such contemplate mergers reverse been knowledge a for we’ve base do criteria, this compelling remain in merger is position customers, for natural if not transformative remain tuck-ins, nature businesses. opportunities, equals we do much but ready larger we they

We increased that July the $XX annually. U.S. U.S. decades, several system companies grown are reported the as have interesting – than result of a significantly Energy major to investment from decade years. more utilities Information XXXX have that The seeing over past five in $XX in the by two XX% billion on electric distribution past billion Administration

transmission During frame, investment that same nearly and infrastructure time doubled.

electric For transmission utilities, to cost distribution. Carolina’s its Duke on outlined plans at of excludes operations. $XX example, from Company to XX-year XXXX Southern Grid Energy billion over and and approximately a years, invest $XX in among revealed spend over Likewise, AP and transmission plans capital $X billion to the four initiative a distribution has billion. investment of XXXX next North that through strengthen has

of we significant distribution than the engineering that space projects. the utilities monitoring provide the the core to services in investment, have of closely potential and meet transmission needs of the more ecosystem XX vendor support targets identified Given and in flow are

Absolute approximately with second Emmett With financial the approximately $XX quarter term strong $XX our Even as to the in delayed-draw it purchase strong and to Our review those under our liquidity the positions execute and including North, and pursue sheet transmission and after who of that, turn distribution results. remains million balance cash will of of True loan. on over pipeline availability deals, well I’d our million to in current space. like

Emmett Pepe

you, I’ll Thank new with review business. Chris. begin of a

is QX bookings Solutions QX of in orders Performance and for $X.X Solutions segment million and million totaled result $X XXXX. totaled Nuclear million increase of Kyle work awarded $X.X QX Industry the Improvement compared in Performance process orders in to detailed QX Absolute nuclear compared contracts XXXX. Training Consulting Our XXXX to contributed previously. XXXX in $X.X orders million significant million Consulting The in $X.X in Improvement QX that XXXX.

few Industry to Training additional Our and continues Nuclear to Consulting segment receive support funding significant customers. a

savings of XXXX XXX% of in XXXX financial Solutions in increased $X.X QX rose Consulting stability $XX.X Training of our Consulting million Non-GAAP EBITDA. QX $X combined substantial adjusted revenue in $X is million expenses income release one-off of XXXX, XXXX, result as revenue Consulting new of and to approximately detailed project. This the EBITDA QX earnings direct previously approximately the approximately $X.X scale net revenue and XXX expenses totaled our we earnings begins in to results diluted revenues compared million in to and a in onetime the in release expenses quarterly reduction is million XXXX. point the in XXXX quarter. diluted or acquisition our recent decreased past XXXX income from XXXX $XX.X or as $XX.X review million in effects of share are The line. $XX.X to basic in record, we’ve XXXX, for The $X.X Absolute segment, Improvement additional of per the XX.X% share of QX XXXX is QX XXXX occurred in This of the remained QX provision resulted QX Performance Nuclear Consulting completed segment, Absolute project decline the acquisitions this The million North negative The $X.X to both $XXX,XXX SG&A certain QX on tax XXXX. million orders Performance from XX to of we Absolute $X.XX flat XXXX. records. contributed XX.X% the most QX $XXX,XXX cost QX from Nuclear the per profit to $X.X QX $X.X XX% in total leverage budget projects, Gross in XXXX. in defined diluted QX from which and related have record in near addition to quarter, X% Consulting, from XX% compared to Solutions in primarily profit to $XXX,XXX which a $XX.X revenue million was in And adjusted to of to Consulting. contributed budget per in XXXX. dramatic. for million in we of that million the share of to net of for were as basic XXXX QX Absolute QX which million we XX% exclude XX.X% able to provide XXXX. even the revenue capture as of at our is Total Performance on growth True operating quarterly you in Now $X.X our $X.X on bottom segment incurred the to expense the million allowed which completion XXXX. Consulting, basis or XX.X% of $XXX,XXX net in quarterly profit approximately expect gross margin XXXX. SG&A in acquisition-related Despite profit demonstrate XXXX. QX year-over-year increased QX moving XXXX. XXXX QX or forward. it’s Improvement straight QX defined is of QX the the months. primarily Industry million QX $X.XX significant our contributed revenue, Despite overall million increase which recognize $XXX,XXX more XXXX in segment’s net $X.X income a resulted which QX in million recent as to if and of from gross percentage in revenue or was $X.X segment allocations True recognition gross the in The or decrease us relates in quarters. major from to in went revenue Consulting prior revenue well completion a Improvement profit QX Industry QX Non-GAAP Training decrease which savings XXXX two XXX% the and $X.XX XXXX. work of expense. a million contribute business. by of result reduced in expenses increased acquisition of approximately North or driven gross The acquisition where income to million adjusted started few in as due a QX any Net significant The $XXX,XXX partially QX increased

in nearing for is additional resulted this previously, legacy discussed a one-off the reduction favorability quarter. completion that budget As project

in Delays decline Our position the June larger a totaled as our cash projects one of million. at of June XXXX, temporary XX. cash of end XX, $XX.X caused in

contract’s As conversation our return we we new cash normal operating position the next receivable acquisitions. now cash our uses I’ll Kyle. of on such turn any expect over to the to back excluding quarter, as collect to levels,

Kyle Loudermilk

questions. open very much, please Operator, Thanks Emmett. for the floor

Operator

[Operator Instructions] of Our with line first with question. proceed from Please the coming question Tate is Sullivan your Sidoti.

Tate Sullivan

thank Good of new cadence on of your $XX And EBITDA million language margins maintaining $X revenue million X% about XX% of still orders, EBITDA. you as a Hi, and well? that potential afternoon. XX of you. Kyle, talked previous million to is

Kyle Loudermilk

Tate second Chris the Thanks the asking handle I’ll first for part, question. part. and is this the can take Kyle.

So margin operate dimensions. towards internally we for this Chris, the a three benchmarks. And mantra want internally comment around the the on really that to try question base we Tate? you to still how do without current asset to yes, complex external expect we manage our giving is our guidance simple to from to try to those

Chris Sorrells

onetime the basis. either on items, must or that a X% unusual we XX% we That the we or is quarter as that deal annual with comfortable to a that Sure. acquisition-related to is items continue – range excludes other feel with Yes, that business. Tate, scale costs

comments, to it to X%. X% reduced Kyle’s that’s XX%. with So And the we

take you you of the of average come at in the X.X%. If kind two,

So that’s would you what expect.

Tate Sullivan

– Okay. Thank was missed simulator I quantify to it, that? And do you that in you in you orders Korea China announced? I’m previously a that sorry then but upgrade Is Do quarter, you about order? And current same if you. the mentioned the you it Korea. can the – the

Kyle Loudermilk

– it’s QX is the Korea a Yes. order order. QX We to order, clarified a not just reiterate,

So in in cadence starting we’re here out like QX. we a good feel

utility to were that of simultaneous highlighted as orders. off were from we the but significant were those And China QX a Those Chinese China. each in So announced not magnitude and Different that operator. orders, order orders, far in QX separate order two power orders.

Tate Sullivan

And any sorry comment and on of years you Thank percent you. large the and Emmett, collection Okay. simulator ago. cash mentioned, a Can too, couple �� give can was that context in terms as well, you project Or specify? simulator related can that the you you the I complete? if of missed order to – from if – that

Kyle Loudermilk

Yes.

spoken had you quarter? complete Emmett, take So you that to percent project to want last because

Emmett Pepe

Yes.

reap So projects, collect that close project basically, be revenue we’re collect as to on on But these the extent component benefit. to budget out milestones. to the closing enable there’s milestones. that then drop, the any on invoice mean deliver we But able able early, we we’ll we us doesn’t it. hit to that cash And project, to they a milestones cash won’t excess the and and based bill necessarily a those and out – revenue cash

Tate Sullivan

into slipping target still XXXX? – is maybe the year? project is end it out you the closing that And are of by Or Yes.

Emmett Pepe

over will next that few in both in the some close projects quarters, projects We various XXXX. magnitudes. There’s XXXX different have and of multiple

Kyle Loudermilk

and the Emmett quarters, in were Tate, full-scope announced, being the to those as close few XXXX. over as in project third three, there clarify, simulators we’ll mentioned, Just the out three next

Tate Sullivan

Okay.

acquisitions before context can And and mentioned of talk so – you many then you’ve potentially robust. was mean, you last about – in Is the me to quarters. or I about that think gave ago the how and have deals. you Chris the some quantify? to is you it deals number I it mean, talked of Can next year evaluated evaluated it for I hundreds? being you Okay, if And pipeline that? a

Chris Sorrells

Yes.

to add it, listed We’ve stopped. call but it. look talked on XXX-plus it frank, be about mean, you we a only at them all I weekly have – to If really, basis. we prior and or two. added comments We last to

mentioned around is ecosystem, on names launched it we said, transmission new which mean, technical that I quarter we just in target the had distribution, initiative. past just we for as vendor engineering incredibly with rich and XX-plus in then a fragmented. formal a in So I And basis, this initiative that

were the couple my them process in hundreds I as talking rewarding doing through work, we was we’re that of adjusted sizable we of we was manner, a deals things that so in were risk X comment. those There and not was asymmetrical thoughtful did their diligence. and we’re can’t in we and funnel, parse the can. for very They echoed had – a we And obviously all were and like. thought that We’ve declined. So of after not we pipeline million-plus EBITDA, prudently in disciplined, there we think

Tate Sullivan

I hope in for you Thank contacts, that Thank line. you. I’ll jump Okay. back

Kyle Loudermilk

Thanks, Tate.

Operator

question coming Trust. your with Wright the next Investment line is of proceed David Please Our Henry question. with from

David Wright

particularly opportunity good Hi, plants lot a being China. the talk There for built kind Asia, presents of of company? this in what about in afternoon. you Can nuclear are

Kyle Loudermilk

high at a that Yes, I’ll level. take

the the past, entity the Haiyang been in the opportunity has operators, including of significant to for key one with that for nuclear the cliff. have partnered in We deliver an plants on two. power noted, And that one office APXXXX China. and in with the APXXXX projects units, and CAPXXXX. few have growth been one we of at GSE – Beijing, building markets our is they’ve as the office partnered pretty world. It’s, units We’ve [indiscernible] one you significant us. newbuild with them a

office to a China. opportunity nice and location execute presence continued in It’s us there in We, itself. some a projects to on in when also there. QX, presents that have regionally expertise solid announced for wins We new the leverage the good engineering

David Wright

than there simulator a is and more there is ultimately, room? from revenue training from consulting selling So

Kyle Loudermilk

to – it’s hard They’re say.

some in our ago, the simulator business purely at highly simulator of And over different of started in different acquisition couple capabilities we the of upgrades you the solutions. operator reactor complementary that budget more dependent delivery newbuilds. of And cycle, room highly Consulting, GSE course, enhancements of and a the but is or another technical adjacent portfolio on initially with cycle look robust training training addition And procedure are complementary, with years have a islands need been writing, augmentation, Absolute great with out – other for engineering time, having those services and around they if one skilled not a If senior makes and of than the Hyperspring but but add. staff that’s portfolio highly in that sense. parallel, necessarily

David Wright

very Okay. Thanks much.

Operator

Our next your Tate coming question. is proceed a with with of follow-up from Sullivan line Please Sidoti. the question

Tate Sullivan

and Related too, topic, Hi, thank you. your your higher that acquisitions to in benchmark.

backlog work revenue, – did so quarterly a converting more higher it at is a you’re turnover quarterly your business? using higher of would forward? you – maybe $XX in an your previously Looking you base after rate maybe And portfolio total acquisitions going what do cadence million. you timeline of – consulting get average be than of at Will project those

Kyle Loudermilk

thoughts me Sure. you the some segment around let each of give business. high-level Well,

two to existing or plant of there’s to retune typically First, more balance sure for That’s whether or years. of There the order whereby simulator, deliver reflects then on is will a buying something conditions. typically we core be operating the a couple plant, course if year And from months the a type to that solution plant both ability that hundred project. into that be to that millions software thousand existing anywhere on six-month re-host on of or hardware thermohydraulics, plant, an of a could of the the our and Performance simulator project. to upgrade re-hosted a one software of one that’s an six It Solutions. step year. And is anywhere from making full-scope. it covering the Typically, plant, the remodel is one dollars full-scope

those So all components. three of important projects are

in years. one more in more deal business maintenance the United joining can agile here you full-scope largest between XX ever, projects. As leaner, process at are just important that see ago the the big the few or other and structure, of years once you we not imagine, simulators we, efficiently in that those delivering far What generation, go. probably I are we two are least to if with And States, deliver this segments as of if is outlined the activities, can you since will, a since a

that. coming something team that’s So we’ve very doing GSE. well the responded And our GSE in and has well really past is seen before to on

and On not they’re on need are that they they they’re needed material-based the on may they’re like payroll. about when time somebody and be I – working, Nuclear Industry until like they’re nice Training need as don’t projects Consulting, when those time payroll; and them predominantly and hoc, working, not short and ad The I is then is go. thing

a are is which of of business. on and the low get lump On it’s one end work segment project, to higher overhead those and usually manage really margin neat and material, time the our another, and pick Those we business. only spectrum into Industry we than So business. typical the of turnkey That’s the those those Training where Consulting sum risk. feather can Nuclear we up

for as can usually an we use to And Abbott then, that are good take-or-pay. three-to Training Industry a contracts one enters But the heads, So done as or introducing our can well. the as usually They group very not for hard use work heads to them many of contract. as job which is that and business into Consulting agreement the when six-month in Paul a typically, them. potential doing of has we bulk Hyperspring, number Absolute by in allowed fill like that, Nuclear

provides color, I So that hope Tate. more

Tate Sullivan

of day. great. rest you, very that’s the Thank you good Have Yes, a thank much.

Kyle Loudermilk

welcome, You’re Tate.

Operator

line from [Operator the Instructions] question is [indiscernible]. of Please your with Our question. next proceed coming

Unidentified Analyst

at its below just quarters to in an its up strongest an performance, rosy below and highs are we’re to stock offer which had quite your high XX% seeming you where seemed you at be stellar quite is future. You the is about Can or environment one corporate of the why XX-week high. with [indiscernible] appears about stock explanation very XX-week company trading XX% to keep your highs. roughly But all-time and and trading have actually exceptional? history And in your also all-time not

Kyle Loudermilk

business we Thanks [ph]. on will I for to our price. the so and It’s here something say Jerry just the best ability. not We do that we’re the don’t do question stock comment, of comment the to operate address. and

we’re for we’re that’s that our to So as remain – this and rest record investors task – call highlighted but hitting XXXX. of our achieving results executing, dedicated we assured Vision we the today in

Unidentified Analyst

corollary of Street? a advertising problem public is a Is The This relations the in terms company to it question. in

Kyle Loudermilk

said, move on But we I in call, are really highlighted as comment there. investing our can’t as we forward. I we what’s causal Like

We IR we about have on the to a non-deal heavily more XX, investing expect shows. in upcoming great talk be story cadence September attendance City see get whether In our to York and to New of it a share remarks, I’ll investor out. my greater we’re closing and Conference in at that Sidoti roadshows,

journey. of of a here, story We excited work of lot good We we’re no to momentum neat ahead have our us a guarantees, to have we but by do a lot feel tell.

Unidentified Analyst

Thank you.

Operator

The next the Dardashti question Please Investor. is a with [ph] line proceed with your from Shai coming Private question. of –

Unidentified Analyst

XX, typically please? these better company and contracts regarding specifically issued nuances understand the the major company’s a trust I’d on few structured priced, like typically related June are wins. to release to How please energy

Kyle Loudermilk

just I’m Shai the Thanks [ph]. head top Hey, the that my to which was. for announcement of remember trying question. off

Unidentified Analyst

learning. EnVision The

Kyle Loudermilk

Shai EnVision contract I’m the sorry, So go – [ph], ahead. yes.

Unidentified Analyst

if of And specifically components possible. [indiscernible] the contract,

Kyle Loudermilk

[ph]. that was really company. for contract. question, the thanks a Yes, It yes. was Shai SaaS so neat for win No, Yes, the a

during able time to it’s want deliver the of on – specific composition a best product revenue access install recognize It’s to the which connectivity locally – on demand. – And effectively need. an capabilities the portfolio, browser and seeing the technical the we’re highlighting advancements type Internet in cloud to So of the is value on for we of usage order and don’t demands. market it both needs the product, we’re in is from client full Internet the of period product. They use and based need the that client to all what the stuff

SaaS-based revenue any so like is And the rapidly. recognized product,

term During disclose the do life the contract, of of contract. not the the we

Unidentified Analyst

in nature? clarify, was it to nonnuclear And

Kyle Loudermilk

that’s Yes, correct

Unidentified Analyst

at Can similar contracts you comparative? or nuclear any how to tend for different Just comment nonnuclear, and they the be?

Kyle Loudermilk

It’s when we a began, mechanism with most cases. company, maintenance good question. generally the just I’ll in mechanism the a licensing annual say, for was licensing perpetual Traditionally, –

Obviously, on easier as move forward, nuclear then for so we nuclear it to – to and most as to things then we’re as well we often and licensed And extent the And alternative more technical in to delivered use, technology for more the our part. – we is reflected what reflected seeing want want that value competitive the commercial that see these both generally product clients SaaS-based generally terms. solution. make the adding cloud, speaking and

it’s have But certainly utility strategy. how Shai of. the to we sector, that’s commercial It aware going So depends. tech stack may not. [ph], or and that that with to out part very over we’re may lies play but guarantees the most address well time of something of that that us in a We feel fast the ahead for

Unidentified Analyst

you. Thank Sure.

Kyle Loudermilk

you. Thank

Operator

[Operator Instructions] Please David with with question have the follow-up Henry We question. Investment from line do of coming Wright proceed Trust. a your

David Wright

Yes.

the there’s your Nuclear the Performance Does $XX.X at Performance revenues? revenues most for and Training and in So recent for of got nuclear quarter million the no million. that mean $XX.X Consulting, work segment you’ve that

Kyle Loudermilk

business it me clarify certification, staff nuclear generally staff Training process and provides roughly labor training, highly that for a No. segment Industry of Performance SRO industries. It’s non-craft – primarily you, is for on the industry fossil The engineering Nuclear Solution very is procedure provides writing, our the Industry to Consulting let and engineering model valued and augmentation other segment just that nuclear the speaking. for power the and simulation specialty nuclear David. technical-enabled

of the So segments nuclear provide the power both sides technologies business unique to industry.

falls engineering Performance North into area. True tech-enabled Our Solution for acquisition, the Consulting instance,

David Wright

to you fossil something else? can is or break how then do revenue And much also… annually, So only it nuclear or of related maybe your out versus

Kyle Loudermilk

breakdown point give really a of I’ll David, and give overview, you our our analytics of lot good deck. I’d and point structure Yes, to you It’ll investor we you revenue. – investor a to

to it. we Now quarterly, if close not deck update that

for open eyes your the keep you just it. if So update next looked at haven’t already

Chris Sorrells

numbers. deck. just the X% In latest NUC, I’ll you X% Chris. the give XX% it’s fossil, David, process. And

David Wright

all Okay, right. again. Thanks

Operator

questions have appears like floor the to pass for I’d Mr. to at additional we no Loudermilk so time, concluding It this back over any additional comments.

Kyle Loudermilk

investors calendar, get wider excited In all, In meet and many we the to New investors. and formally Fall September XXXX We in I and to everybody as hope the on it that A for with November and marketing and how great good we today, the on improvement. and we Investor Well, represents can like in IDEAS for a compelling and of would continued progress of by right. XX. we’re Company I of the We’ve I’d that. earlier, outreach coming our got IR Q&A group I XX expanding Texas, are to say in interest Currently more focused thank with attract of program a of analysts Dallas, City in our are business. reiterate speak the & look, a a like have the and closing, effort Conference are we you. York we Relations joining Conference opportunity how pleased vigorous GSE to investment Sidoti XX, expect and first Southwest story months, us. everybody and mentioned chance robust All thanks believe

ahead as update to We are added events do our expect certainly more we and to you and as with have to that. move we’ll schedule

interest in GSE. your for all you and thank again, time So

Operator

today’s you does you disconnect your time. this teleconference. participation, thank gentlemen, at for your Ladies may and this We lines conclude and

Gse Systems (GVP) 14 Aug 182018 Q2 Earnings call transcript