gp strategies investor presentation...2 safe harbor this presentation has been prepared by gp...
TRANSCRIPT
Knowledge. Performance. Impact.
GP Strategies INVESTOR Presentation
MBI – GP Strategies Company Confidential
March 2016
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Safe Harbor
This presentation has been prepared by GP Strategies. This presentation does not constitute an offer to any person or to the general public to acquire securities issued in any jurisdiction or an inducement to enter into investment activity.
The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The Company or any of its respective affiliates shall not have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.
This presentation is only for persons having professional experience in matters relating to investments and must not be acted or relied on by persons who are not such persons.
This presentation includes ‘forward-looking statements’. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company’s products and services) are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Past performance cannot be relied upon as a guide to future performance.
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INVESTMENT DATA
Common Shares Outstanding – Fully Diluted 17.1 million
Market Capitalization @ $26.01 per share $445 million
Revenue –Twelve Months Ended 12/31/2015 $490 million
EBITDA – Twelve Months Ended 12/31/2015* $41.2 million
Corporate Contacts:Scott Greenberg, CEO 443-367-9640
Sharon Esposito-Mayer, CFO 443-367-9636
Investor Relations:Ann Blank, Director, Investor Relations 443-367-9925
Exchange: NYSE (GPX)Business: Custom Training & Performance ImprovementWeb Address: www.gpstrategies.comHeadquarters: Columbia, Maryland USA
Exchange: NYSE (GPX)Business: Custom Training & Performance ImprovementWeb Address: www.gpstrategies.comHeadquarters: Columbia, Maryland USA
*Excluding Restructuring, Currency Losses and Loss on Contingent Consideration
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Our MISSION is to enable people and businesses to perform at their highest potential.
Our VISION is a world where business excellence
makes possibilities achievable.
VALUESVISIONMISSION VISION
VALUES MISSION
VISIONVALUESGP Strategies
GP Strategies is a leading custom TRAINING andPERFORMANCE improvement company.
GP Strategies AWARDS
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Engineering New Record2015 ENR Top 500 Design Firms
Elearning! Magazine2015 Winner for Best Outsource Learning Services provider 2014 Excellence for Best Managed Learning Services provider
Training Industry, Inc.2016 Top 20 Sales Training Company (9th Consecutive Year) 2016 Top 20 Leadership Training Company (4th Consecutive Year)2015 Top 20 IT Training Company (8th Consecutive Year)2015 Top 20 Gamification Company (2nd Consecutive Year)2015 Top 20 Learning Portal Company (6th Consecutive Year)2015 Top 20 Workforce Development Company (4th Consecutive Year) 2015 Top 20 Content Development Company (5th Consecutive Year)2015 Top 20 Training Outsourcing Company (12th Consecutive Year)
Brandon Hall Group2015 Gold | Best Custom Content
Gold | Best Sales Training ProgramGold | Best Advance in Benefits Strategy and AdministrationSilver | Best Advance in Custom ContentSilver | Best Learning TeamBronze | Best Advance in Compliance TrainingBronze | Best Unique or Innovative Leadership Development ProgramBronze | Best New Hire Onboarding ProgramBronze | Best Advance in Succession and Career Management
Leadership Excellence2014 Leadership Partners and Providers
Large Consulting Groups (50+employees); Ranked #3(7th Consecutive Year)
Leadership Excellence2007-2015 Leadership 500
Deere & Company2015 “Partner-Level Supplier” Recognition
(6th Consecutive Year)
What CLIENTS say about us:What INDUSTRY says about us:
Our LOCATIONS
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EMEAAMERICAS
ArgentinaBrazil
CanadaColombiaMexico
United States
APAC
Australia*Hong Kong
IndiaJapan
Mainland ChinaMalaysia
PhilippinesSingapore
South KoreaTaiwan
DenmarkEgypt *
Finland *France
GermanyHungary *
NetherlandsPoland
South AfricaTurkey
United Arab EmiratesUnited Kingdom
* Registered Entity – Office Location Pending
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xx 152 Fortune 500 Customers
119 Global 500 List Customers
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Organization Growth — CUSTOMERS
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• Competitive Strengths:– Global Delivery and Single-Source Custom Training Solutions Provider– Outstanding Reputation in the Industry– Diverse and Stable Client Base– Scalable Technology Platform– Legacy Technical Expertise– Business Model Supports Visibility of Revenue– Highly Qualified and Dedicated Employees and Tenured Management
GP Strategies COMPETITIVE STRENGTHS
• Industry Drivers:– Outsourcing - companies focusing on core competencies and reducing costs– Cost effectiveness of E-Learning solutions– New products, changing technology and regulations– Global expansion and alignment
Training is a LARGE and FRAGMENTED MARKET
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• Total training industry is over $100 billion• Currently, in excess of 60% of training is performed by in-house
departments, but the trend to outsource increased in 2015
We are focused on expanding our SERVICES and PRODUCT LINES
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GP Strategies REVENUE BY SEGMENT
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Sandy Training & Marketing
18%
Learning Solutions, 42%
Performance Readiness
Solutions 16%
Professional & Technical
Services, 24%
Twelve Months Ended December 31, 2015• Product Sales Training• Marketing
• Managed Global Learning Services
• Content Design & Development
• Organization & Leadership Development
• Sales Solutions
• Technical & Engineering• Energy Products• Government Services
Automotive Product Sales Training SANDY TRAINING & MARKETING
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• Automotive dealership sales training• 35+ years experience – Sandy branding• Predominant player at General Motors (largest customer) North
America• Automotive solutions offering includes technical training,
publications, and product launch services• Received major contract renewals in 2015• Large publication award in 2015• Expansion into new customers and using global platform• 5 customers in top 20
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Managed Global Learning Services
• Training Administration • Instructor Resource Management• Vendor Management• 24/7 Call Center Services• Tuition Program Management
GP Strategies LEARNING SOLUTIONS
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Content Design & Development
GP Strategies LEARNING SOLUTIONS
• Custom Content Design, Development and Delivery of training solutions that address specific levels of your organization and are in tune with local cultures and languages. Our delivery mediums include:
– Instructor-Led, Facilitative and Lecture-Based Training– E-Learning– Paper-Based Training– Technology-Based Training (WBT/CBT/CAI)– Video– Mobile– Virtual Instructor-Led Training (VILT)– Structured On-the-Job Training (OJT)– Blended Learning
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Organization & Leadership Development
• Executive Development Services• Leadership Development• Employee Engagement Services• Coaching (Mentoring)• Organizational Change and Transition Services• Platform Adoption Solutions• Role Excellence Profile
GP Strategies PERFORMANCE READINESS SOLUTIONS
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Sales Solutions
• Product Sales Training • Sales Performance Consulting• Sales Enablement Strategies• Sales Program Development • Customer Loyalty Training
GP Strategies PERFORMANCE READINESS SOLUTIONS
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Technical & Engineering
• Technical Documentation Development• Maintenance and Reliability Training and Tactics• Engineering Design/Construction Management• Process Safety, Risk Management and Compliance Solutions• Design/Build/Maintenance of LNG, LCNG and Hydrogen
Fueling Stations and Other Facilities• Power Plant Performance Consulting and Operator Training
GP Strategies PROFESSIONAL & TECHNICAL SERVICES
Technical & Engineering
GP Strategies PROFESSIONAL & TECHNICAL SERVICES
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• GPiLEARN – over 50,000 power plant workers in over 40 countries access their training on a subscription basis with over 1,600 lessons available
• EtaPRO – performance and condition monitoring software on 1,400+ generating units in 37 countries worldwide. GP Strategies real time monitoring helps plants achieve improved performance and reduced emissions
Energy Products
GP Strategies PROFESSIONAL & TECHNICAL SERVICES
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• Federal and State First Responder Training• Chemical Demilitarization Training & Support• Engineering and Technical Services
Government Services
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• Strong incremental operating margins• Variable cost structure• Strong cash flow • $65 million credit facility• Recurring client base• Backlog visibility
Strong FINANCIAL POSITION
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GP Strategies REVENUE
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
2012 2013 2014 2015
$401.6 $436.7 $501.9 $490.3 $
Mill
ions
Over 50 years of
SEASONED INSIGHTS
Serving a Diverse CLIENT BASE
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GP Strategies EBITDA
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
$55.0
2012 2013 2014 2015
$44.0 $47.5
$53.4
$38.9
$ M
illio
ns
*Inclusive of Currency Losses, Restructuring & Contingent Consideration totaling $4.0M in 2015.
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GP Strategies BACKLOG
$0$25$50$75
$100$125$150$175$200$225$250$275$300
Dec-12 Dec-13 Dec-14 Dec-15
$221.3 $239.5 $234.1 $239.1 $ M
illio
ns
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GP Strategies BALANCE SHEET
December 31, December 31,
2014 2015
Cash 14,541$ 21,030$ Accounts Receivable 99,638 90,912 Costs in Excess of Billings 30,211 46,061
Prepaid Expenses & Other 15,967 9,173
Total Current Assets 160,357 167,176
Property, Plant & Equip. 7,864 6,245 Goodwill & Intangibles 136,292 128,196
Other Assets 939 733
Total Assets 305,452$ 302,350$
Short Term Borrowings 20,799$ 34,084$ Current Portion of LT Debt 13,333 13,333 Accounts Payable 59,018 61,071
Billings in Excess of Costs 23,670 18,366
Total Current Liabilities 116,820 126,854
Long-Term Debt 24,444 11,111
Other Non-Current Liabilities 12,463 6,041
Stockholders' Equity 151,725 158,344
Total 305,452$ 302,350$
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• Recognized leader in a large training market• Blue chip customers in multiple markets• Clear growth strategy• Strong financial position• Successful acquisition strategy in highly fragmented markets
POISED for SUCCESS
gpstrategies.com
© 2016 GP Strategies Corporation. All rights reserved. GP Strategies, GP Strategies and logo design, BlessingWhite, Rovsing Dynamics, Asentus, Information Horizons, PMC, GP Sandy, Bath Consultancy Group, Academy of Training,Martonhouse, Via Training, Beneast Training, Ultra, RWD, Communication Consulting, Option Six, Milsom, Clutterbuck Associates, PerformTech, Future Perfect, Smallpeice Enterprises, Prospero Learning Solutions, Lorien Engineering Solutions,Effective-People, Effective-Learning, GPiLEARN, GPCALCS, GPSteam, EtaPRO, and VirtualPlant are trademarks or registered trademarks of GP Strategies Corporation in the U.S. and other countries. All other trademarks are trademarks orregistered trademarks of their respective owners. Proprietary to GP Strategies Corporation
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