GSE Systems reports Q4 adjusted EPS (28c) vs. (49c) last year

Reports Q4 revenue $10.2M vs. $11.6M last year. “Fiscal 2023 was a year in which we streamlined the company to properly reflect the state of the end market and aligned our efforts towards industry spend: lifetime extension of the existing fleet and increasing power production from the existing fleet through targeted capital investment. To that end, we are pleased with the Engineering revenue year-over-year increase, which resulted in an improved gross margin for the Company. Our focus on engineering utilization, especially in the second half of the year, has yielded solid results, and that focus will continue into 2024 as we continue to build our backlog. Workforce Solutions continues to be a challenge, as the industry is simply no longer committing to significant staff augmentation projects as they had prior to the pandemic. That said, we have worked diligently to now be properly aligned to the market and have seen significant improvement in our operational results in the second half of 2023. Our improved Adjusted EBITDA numbers in the second half of the year reflect this proper alignment and new mix of business. Moving into 2024, we will benefit from a full year of streamlined operational costs, an improved engineering utilization and a business mix that will continue to favor higher margin business and revenue.” Emmett Pepe, CFO of GSE Systems, added, “As expected, we continued our improvement in reducing operating expenses as reflected in the reductions both quarter-over-quarter and year-over-year. These improvements, with the majority occurring in the second half of 2023, led to a favorable full year variance over 2022. We are positioned to achieve a full year of reduced operating expenses in 2024. We continue to pay down our corporate debt, while maintaining our cash position which improved in the quarter as a result of the cost saving measures.”