GP Strategies Corporation (NYSE: GPX) announced a lease amendment for its Columbia, Maryland headquarters, effective January 1, 2021. The company will reduce its office space by 22,000 square feet, resulting in annual rental savings of approximately $750,000. This decision is part of a broader reevaluation of real estate needs, aiming for total savings of $2.0M in facility expenses for 2021 compared to the previous year. CEO Adam Stedham emphasized the ability to maintain productivity through virtual work, making strategic moves in line with alternative workplace strategies.
On October 7, 2020, GP Strategies Corporation (NYSE: GPX) announced the successful divestiture of its IC Axon business to CM Canada Acquisitions for approximately $28 million. The deal includes an adjustment based on the business's working capital at closing and potential additional payments of up to $2 million based on revenue performance. The IC Axon unit reported trailing twelve-month revenue of $12.5 million as of June 30, 2020. The divestiture is part of GP Strategies' strategy to improve liquidity, with total asset sales in the last year amounting to $53 million.
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GP Strategies Corporation (NYSE: GPX) reported a challenging second quarter of 2020, with revenue declining 29.0% to $106.1 million from $149.4 million in Q2 2019, primarily due to COVID-19 disruptions. The company revealed a net loss of $0.6 million, or $(0.04) per share, compared to net income of $3.2 million, or $0.19 per share, in the previous year. Despite these setbacks, cash flow from operations improved to $22.9 million, and long-term debt was reduced by $25.2 million. Adjusted EBITDA rose 75% sequentially, showing potential for recovery.
GP Strategies Corporation (NYSE: GPX) will release its financial results for Q2 2020 on August 7, 2020. The announcement includes an investor conference call at 8:30 a.m. Eastern Time the same day, featuring prepared remarks and a Q&A session with executive management. Investors can access the call via webcast or by phone. An archive of the webcast will be available for 90 days, while a telephonic replay will last one week. GP Strategies specializes in training, digital learning, and management consulting.
GP Strategies Corporation (NYSE: GPX) has partnered with Whisbi to enhance digital sales capabilities in the automotive sector. This collaboration will enable OEMs to utilize Whisbi's One-to-Many Broadcast technology for live product presentations, while dealers can engage customers through voice, chat, video, and screen-sharing via Whisbi's One-to-One Assisted Selling solution. The partnership aims to accelerate the digitization of business processes in dealerships, improving customer relationships and sales experiences. A global launch of a Virtual Sales Certification program is also anticipated in Q4.
On July 8, 2020, GP Strategies Corporation (NYSE: GPX) announced the appointment of Adam H. Stedham as its new Chief Executive Officer, effective immediately after serving in an interim role since June 9, 2020. Stedham expressed confidence in the company’s potential for future growth and improved shareholder returns. GP Strategies specializes in performance improvement solutions, including training and consulting services, tailored to various industries including Fortune 500 companies.
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GP Strategies Corporation (NYSE: GPX) announced a leadership transition, with Scott N. Greenberg stepping down as CEO on June 9, 2020, while remaining Chairman and Senior Advisor. Adam H. Stedham, a 23-year veteran of the company and current President, has been appointed as Interim CEO. The Board expressed gratitude for Greenberg's 40 years of service, emphasizing the company's readiness to face challenges, particularly amid the COVID-19 pandemic. Stedham aims to focus on employee safety and the company's growth potential during his interim leadership.