GP Strategies — Investor Presentation (December 2020)
22 slides from GP Strategies's investor presentation, Dec 15, 2020
Slide 1: Investor Presentation, December 15, 2020
Ze GP “h:° STRATEGIES® Investor Presentation December 15, 2020
Slide 2: Cautionary Note about Forward-looking Statements and Non-GAAP Financial Measures
Cautionary Note about Forward-looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 of the Securities Exchange Act of 1934, as amended (the “Exchange Act").
Slide 3: Helping clients achieve superior business results
gas yourWorkforce eer") Transformationibams HELPING CLIENTS ACHIEVE SUPERIOR BUSINESS RESULTS INCREASE OPTIMIZE MAXIMIZE cs EFFICIENCEY mn PERFORMANCE POTENTIAL Le
Slide 4: Investment Data
Investment Data Exchange: NYSE (GPX) Business: Workforce Transformation Solutions Web Address: www.gpstrategies.com Headquarters: Columbia, Maryland USA Investor Relations Candice Hester, VP, 443-274-5893 Operating Highlights: Proactive approach by the Management team in dealing with the impact of t
Slide 5: Why GP Strategies
Why GP STRATEGIES GP “Ai? STRATEGIES® GPX NYSE. Growth Cyclical Company Strong Balance Sheet Strong Cash Flow Generation Focused on: Margin Expansion Portfolio Management Selective Strategic Acquisitions
Slide 6: Blue Chip Customer Base
Blue Chip Customer Base 148 of Fortune 500 companies 124 of Global 500 companies Operate in more than 80 countries COVID-19 creating an environment that requires virtual employee training Historical strong performance after economic cycles Large Addressable Market GPX H ig al | ig al Global Capabili
Slide 7: Strong Competitive Position
Strong Competitive Position 1. Largest Competitor ——-- Internal Training Departments a) During economic down cycles internal training staff are frequently reduced b) During economic recoveries, organizations have typically been slow to add internal training department costs GP historically emerges f
Slide 8: Global Operations
Global Operations Data as of 9/30/2020 Canada, United States * Satellite Locations Cyprus*, Denmark, Egypt, Finland, France, Germany, Hungary’, Ireland*, Netherlands, Poland, Portugal’, Romania, Spain, Sweden, Switzerland, South Africa, Turkey, United Arab Emirates, United Kingdom @ o@ @® Approx. 10
Slide 9: Deep Expertise in Key Industries
Deep ~“@ Expertise in KEY Industries Life Sciences Energy/Oil & Gas @ Financial a O mx Technology Aerospace & Defense
Slide 10: Align your vision and strategy for sustained superior results
Align your vision and strategy for sustained superior results. Our Purpose To enable people and businesses to perform at their highest potential BUSINESS CONSULTING & ORGANIZATIONAL DEVELOPMENT | _, LEADERSHIP SOLUTIONS f Create your leadership edge. = —— LEARNING STRATEGY & SOLUTIONS Workforce Deve
Slide 11: GP Strategies Awards & Recognitions
GP Strategies Awards & Recognitions We have received accolades on the journey to excellence for both the company and our clients. 2020 Brandon Hall HCM Excellence Gold | Best Advance in Competencies and Skill Development | Metlife Gold | Best Learning Program Supporting a Change Transformation Busin
Slide 12: Financials & Financial Strategy
Financials & Financial Strategy
Slide 13: Cash Flow Allocation
Cash Flow Allocation The Company has significantly reduced its net In October 2020, the Company sold its Long-Term Debt with a combination of free cash IC Axon business division for approximately flow generated from Operations and proceeds $28.0 million subject to certain adjustments from divestitur
Slide 14: Portfolio Management
Portfolio Management DIVESTITURE SALE PRICE DATE COMPLETED TTM REVENUE GROSS PROFIT Tuition Reimbursement (sold to Bright Horizons) $20.0M 10/1/2019 $6.5M $1.3M Alternative Fuels (sold to Cryogenic Industries) $6.0M Vélg2020 $11.0M $1.6M $28.0M (plus potential 10/1/2020 $12.5M Not disclosed $2.0M ea
Slide 15: Selective Strategic Acquisitions
Selective Strategic Acquisitions ACQUISITION STRATEGY POTENTIAL RETURN OF CAPITAL ww nae The Company will focus on strategic The Company historically has been active in a acquisitions in complementary competencies in share repurchase program as a way of core industries with the following criteria: i
Slide 16: Strong Balance Sheet
Strong Balance Sheet The Company has historically generated strong net cash flow from operating activities. Revolving Credit Agreement $119.7M $82.9M $43.8M* Borrowings Borrowings Borrowings under revolver under revolver under revolver as of as of as of 6/30/19 12/31/19 9/30/2020 *Does not include p
Slide 17: Focus on margin expansion, interest expense reduction, and EPS improvement
Looking forward, our focus is on margin expansion, interest expense reduction, and EPS improvement mAdjusted EBITDA Revenue ($ in millions) 7.0% 9.0% 9.7% 74% 6.0% : i | poste $1.26 $1.43 $0.90 $0.84 $0.56 Pp ‘Adjusted EBITDA is a non-GAAP financial STRATEGIES’ non-GAAP financial measure to the most
Slide 18: Q&A
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Reconciliation — Adjusted EBITDA
Non- GAAP Reconciliation — Adjusted EBITDA” Nine Months Ended Three Months Ended Year Ending Year Ending Year Ending Year Ending Perri 30, 2020 September 30, 2020 December 31, 2019 December 31, 2019 December 31,2018 _ December 31, 2017 _ December 31, 2016 Net income (loss) $8,116 $ (1,379) $9,495 $1
Slide 21: Non-GAAP Reconciliation — Adjusted EPS
Non-GAAP Reconciliation — Adjusted EPS) Nine Months Ended Three Months Ended _Year Ending Year Ending Year Ending Year Ending Séaiicber 30, 2020 September 30, 2020 December 31, 2019 December 31, 2019 _December 31,2018 _December 31, 2017 __December 31, 2016 Diluted EPS $048 $ (0.08) $0.56 $0.90 $059
Slide 22: We're at our best when helping our clients achieve their best
GP We're at our best when helping our clients achieve their best. STRATEGIES® Making a meaningful impact on the world together. gpstrategies.com We're social, chat with us! FJ @apcorp Efjgpstrategies = EY} blog.gpstrategiescom ff} gp-strategies-corporation You) GPStrategiesCorp [email protected]
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