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]
GSE Systems(GVP) - 2020 Q2 - Earnings Call Transcript