GSE Systems, Inc. (NASDAQ:GVP) Q1 2022 Earnings Conference Call May 16, 2022 4:30 PM ET Company Participants Adam Lowensteiner - Vice President of Lytham Partners Kyle Loudermilk - President & CEO Emmett Pepe - CFO & Treasurer Conference Call Participants William Bremer - Vanquish Capital Operator Good day and welcome to the GSE Systems, Inc. Reports First Quarter of Fiscal Year 2022 (ph) Financial Results. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, t ...

| --- | --- | --- | --- | |-------|-------|-------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Investor Presentation | | | | | GSE Systems, Inc. ("GSE Solutions") | | | | | NASDAQ: GVP | | | | | Spring 2022 | | Forward Looking Statements and Non-GAAP Financial Measures This presentation, our remarks, and answers to questions contain statements that are considered forward-looking statements within the meaning ...

Financial Data and Key Metrics Changes - Revenue for Q4 2021 was $13.9 million, a 9.6% increase compared to $12.7 million in Q4 2020 [54] - Fiscal 2021 total revenue was $55.2 million, a 4.2% decrease from $57.6 million in fiscal 2020 [54] - Gross profit in Q4 2021 was $3.1 million, approximately 22% of revenue, down from $3.8 million or 29.9% of revenue in Q4 2020 [57] - Net loss in Q4 2021 was $1.9 million or $0.09 per share, compared to a loss of $1.5 million or $0.07 per share in Q4 2020 [60] - Adjusted EBITDA was a loss of $1.1 million in Q4 2021, a decrease from a loss of $0.1 million in Q3 2021 [61] Business Line Data and Key Metrics Changes - Engineering Performance revenues were $6.8 million in Q4 2021, down from $7.6 million in Q4 2020 [55] - Workforce Solutions revenue increased approximately 38.1% to $7 million in Q4 2021, up from $5.1 million in Q4 2020 [56] - Orders for Workforce Solutions in Q4 2021 were $10.6 million, a 202% increase compared to $3.5 million in Q4 2020 [46] Market Data and Key Metrics Changes - Total orders for the fiscal year increased 25% to $56.5 million, with Q4 orders climbing by 128% to nearly $18 million [32] - Backlog improved to $41.3 million in Q4 2021, up from $37.5 million at the end of Q3 2021 [61] Company Strategy and Development Direction - The company is focused on capitalizing on the need for stable energy supply and decarbonization of the power sector, which are seen as key catalysts for growth [35] - GSE is positioned to benefit from the macro trends in the nuclear industry, particularly the push for zero-carbon energy solutions [50] - The company aims to expand its SaaS-based software solutions, which have shown significant growth and potential for recurring revenue [43][44] Management's Comments on Operating Environment and Future Outlook - Management believes the effects of the pandemic on the industry are largely behind, with improvements in new orders indicating a recovery [66] - The rise in energy prices and geopolitical issues are driving a renewed focus on nuclear energy as a stable and clean energy source [67] - The company is optimistic about future opportunities due to its unique offerings in the nuclear power generation sector [51] Other Important Information - The company entered into a financing agreement that improved liquidity and eliminated restrictive covenants from its previous line of credit [63] - A new board member, Thomas Dougherty, was welcomed, bringing over 40 years of experience in the nuclear power industry [69] Q&A Session Summary Question: Expectations on gross profit margins returning to pre-COVID levels - Management indicated that gross margins are currently lower due to the mix of business, with Workforce Solutions being a lower-margin segment compared to Performance Solutions [75] Question: Potential of the SaaS business - Management expressed excitement about the growth of the SaaS business, highlighting new product introductions and significant year-over-year growth [78] Question: Effects of the bipartisan infrastructure and jobs bill - Management noted that the industry is excited about the recognition and funding for infrastructure improvements, expecting funds to start flowing within the next year [79] Question: Importance of recent financing - Management emphasized that the new financing agreement provides flexibility and positions the company well for growth [81] Question: Revenue opportunities from SMRs - Management discussed the long-standing partnership with NuScale and the potential revenue from upcoming SMR projects [82]

GSE Systems, Inc. (NASDAQ:GVP) Q3 2021 Earnings Conference Call November 15, 2021 4:30 PM ET Company Participants Adam Lowensteiner - Vice President of Lytham Partners Kyle Loudermilk - President & Chief Executive Officer Emmett Pepe - Chief Financial Officer Conference Call Participants Operator Good afternoon and welcome to GSE Systems Third Quarter Fiscal Year 2021 Financial Results Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an op ...

GSE Systems, Inc. (NASDAQ:GVP) Q2 2021 Earnings Conference Call August 16, 2021 4:30 PM ET Company Participants Adam Lowensteiner - VP, Lytham Partners Kyle Loudermilk - President, CEO & Director Emmett Pepe - CFO & Treasurer Conference Call Participants Operator Good afternoon, and welcome to the GSE Systems Inc. Reports Second Quarter Fiscal Year 2021 Financial Results Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Adam ...

GSE Systems, Inc. (NASDAQ:GVP) Q1 2021 Results Conference Call May 17, 2021 4:30 PM ET Company Participants Robert Blum - Investor Relations, Lytham Partners Kyle Loudermilk - President and Chief Executive Officer Conference Call Participants David Wright - Henry Investment Trust Operator Good day and welcome to the GSE Systems Reports First Quarter Fiscal Year 2021 Financial Results Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions]After the today's presentati ...

GSE Systems, Inc. (NASDAQ:GVP) Q4 2020 Earnings Conference Call March 31, 2021 4:30 PM ET Company Participants Kalle Ahl – Investor Relations-The Equity Group Kyle Loudermilk – President and Chief Executive Officer Emmett Pepe – Chief Financial Officer Conference Call Participants Operator Greetings and welcome to GSE SolutionsÂ' Fourth Quarter and Year End 2020 Financial Results Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal pr ...

GSE Systems, Inc. (NASDAQ:GVP) Q3 2020 Earnings Conference Call November 16, 2020 5:00 PM ET Company Participants Kalle Ahl - Investor Relations, The Equity Group Kyle Loudermilk - President and Chief Executive Officer Emmett Pepe - Chief Financial Officer Conference Call Participants Tim Chatard - Meros Investments Operator Hello and welcome to the GSE Solutions Third Quarter 2020 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasu ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2020 was $14.3 million, down from $23.5 million in Q2 2019, reflecting a decrease of $9.2 million [9][18] - Adjusted EBITDA for Q2 2020 was a loss of $191,000 compared to an adjusted EBITDA of $1.9 million in Q2 2019 [9][21] - Gross profit in Q2 2020 totaled $3.6 million, down from $5.9 million in Q2 2019 [19] - SG&A expenses increased to $4.7 million in Q2 2020 from $4.3 million in Q2 2019, primarily due to a provision for a legal settlement [20] Business Line Data and Key Metrics Changes - Performance Improvement segment revenue was $8.3 million in Q2 2020, down from $13 million in the prior year [18][28] - NITC segment revenue was $6.1 million in Q2 2020, down from $10.5 million in Q2 2019 [18][28] - Performance Improvement gross profit decreased to $2.7 million from $4.5 million year-over-year, while NITC gross profit decreased to $832,000 from $1.3 million [19] Market Data and Key Metrics Changes - The total backlog at the end of Q2 stood at $46.6 million, consisting of $31.2 million in performance improvement backlog and $15.4 million in NITC backlog [12] - The company generated cash flow from operations totaling approximately $360,000 during the quarter [12] Company Strategy and Development Direction - The company aims to manage through the pandemic by providing essential services while maintaining a solid backlog cushion [12] - There is a focus on organic growth, streamlining operations, containing costs, maximizing cash flow, and paying down debt [14] - The long-term demand outlook for staffing and training services in the nuclear power industry remains robust [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter results were depressed due to COVID-19, with industry-wide RFP delays and project postponements [8] - The expectation is that project work will rebound post-COVID, similar to past industry shocks [14] - Management remains optimistic about long-term opportunities, citing the essential nature of their services [13] Other Important Information - The company received a Paycheck Protection Program loan of $10 million, which is being used for payroll and related costs [23] - Net debt at the end of Q2 totaled $5 million, consisting of $23.3 million in debt and $18.3 million in cash [13][21] Q&A Session Summary Question: What were the segment revenues for Performance and NITC? - Performance Improvement revenue was $8.3 million and NITC revenue was $6.1 million for the quarter [28] Question: What is the timetable for determining the forgivable amount of the PPP loan? - The company expects to finalize its position regarding the PPP loan by Q4 of this year, subject to audits [30] Question: What is the process for submitting the PPP loan forgiveness plan? - The process involves submitting a plan to the bank, which then contacts the SBA for further action [32] Question: Which bank was used for the PPP loan? - The bank of record for the PPP loan is Citizens Bank, which is an SBA lender [33]

Financial Data and Key Metrics Changes - Total revenue in Q1 2020 was $17.7 million, down from $22.2 million in Q1 2019, reflecting a decrease of $2.5 million in the performance improvement segment and $2 million in the Nuclear Industry Training & Consulting (NITC) segment [10][25] - Adjusted EBITDA was negative $0.6 million in Q1 2020 compared to positive $0.2 million in Q1 2019, with an impairment charge of $4.3 million recorded for intangible assets [10][29] - Cash position at the end of Q1 2020 was $11.4 million, with total debt of $16.8 million, a decrease of $1.7 million from Q4 2019 [13][30] Business Line Data and Key Metrics Changes - Performance solution segment orders totaled $5.3 million, up from $4.6 million in the prior year quarter, indicating a steady flow of business [15] - NITC segment orders increased to $14.3 million from $8.5 million in the prior year quarter, driven by continued services to primary nuclear utility customers [17] - Total backlog at the end of Q1 stood at $54 million, exceeding the year-end 2019 backlog of $52.7 million, indicating a solid start to the year [18] Market Data and Key Metrics Changes - New orders during Q1 increased approximately 36% year-over-year to $19.6 million, exceeding internal plans despite COVID-19 challenges [14] - The long-term demand outlook for industry staffing and training services remains strong due to the unique needs of the nuclear power industry [18][23] Company Strategy and Development Direction - The company emphasizes protecting employee and client health during the COVID-19 pandemic while focusing on organic growth, streamlining operations, and maximizing cash flow [22] - A strategic collaboration with ABB Bailey Japan was established to provide thermal simulation services to the Japanese power market, indicating a focus on expanding service offerings [16] Management Comments on Operating Environment and Future Outlook - Management noted that customer behavior is shifting towards delaying non-essential work, but essential services for operational safety and efficiency will continue [11][12] - The company expects pent-up demand for services to eventually translate into higher backlog figures as nuclear facilities require reliable power delivery [19][20] - Management anticipates another challenging period in Q2 2020 due to conservative client approaches to new projects [21] Other Important Information - The company received $10 million from the Federal Payroll Protection Program, which bolstered its cash position [30] - The company plans to aggressively pay down debt and expects to refinance remaining debt by year-end [13] Q&A Session Summary - The Q&A session was not detailed in the provided content, and no specific questions or answers were recorded [31][35]