Performance improvement solutions provider GP Strategies Corp. (GPX) reported Wednesday a fourth-quarter loss over prior year's profit, hurt chiefly by one-time goodwill impairment charges.
Net loss for the fourth quarter was $0.93 million or $0.06 per share, compared to profit of $2.74 million or $0.16 per share in the prior-year period.
During the quarter, the company incurred $5.51 million as goodwill impairment charges related to Sandy segment. Adjusting for non-cash goodwill impairment loss, earnings declined to $0.15 per share from $0.16 per share last year.
On average, four analysts' polled by Thomson Reuters estimated earnings to be $0.18 per share. Analysts' estimate typically excludes special items.
Revenue for the quarter was $63 million, down 11% from $70.4 million last year, and also came below Street's estimate of $71.67 million.
Segment-wise, manufacturing & BPO revenue decreased 5% to $28.4 million, and Process & Government revenue declined 19%, to $12.1 million. Energy segment revenue increased 30% to $6.0 million, while Sandy Training & Marketing revenue fell 22% to $16.5 million last year.
Scott Greenberg, Chief Executive Officer, said, "During the fourth quarter of 2008, we began to see reduced spending by customers in certain end markets, particularly in the manufacturing sector, including the automotive, steel and electronics and semi-conductors industries."
For the full-year 2008, net income declined to $7.84 million or $0.47 per share, from $9.68 million or $0.56 per share last year. Adjusted earnings for the year were $0.67 per share. Revenue for the year rose 8% to $267.9 million from $248.4 million last year. The Street estimated earnings of $0.70 per share on revenues of $276.58 million.
Currently, the stock is down 12.07%, trading at $2.55 on the New York Stock Exchange.
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