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(GVP) - 2021 Q4 - Earnings Call Transcript