GP Strategies Corp. (NASDAQ:GPX) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 10:00 am ET
Good morning and welcome to the GP Strategies' Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to Ann Blank, Vice President of Investor Relations. Please go ahead.
Thank you. Good morning, everyone and welcome to GP Strategies' third quarter 2019 earnings call. On the call today are Scott Greenberg, Chief Executive Officer; Adam Stedham, President; and Mike Dugan, Chief Financial Officer.
Before we begin, I would like to remind you that today's comments will include forward-looking statements, which are subject to certain risks and uncertainties that could cause our actual results to be materially different from expectations. For a complete discussion of these risks, we encourage you to read our documents on file with the SEC, which are posted on the Investors section of our website at gpstrategies.com. A replay of this webcast will be available on our website for 90 days following today's call. The slides that are being presented today are also available on the quarterly earnings releases page of the Investors section of our website.
At this time, I'd like to turn the call over to our CEO, Scott Greenberg.
Scott N. Greenberg
Thank you, Ann. Good morning and welcome to our third quarter 2019 earnings conference call. Today, we will continue to use our quarterly format, which will include a WebEx presentation. Hopefully, you'll find this informative and useful in your analysis of GP Strategies. To initiate the call, I'll provide a brief overview of the results for the third quarter. Then, Adam, our President, will give key updates on our global initiatives with a focus on organic revenue growth opportunities. After Adam's presentation, our CFO, Mike Dugan will present the summary financial analysis. Then I will provide a summary concluding with a Q&A session.
This morning before the market opened GP Strategies announced results for the third quarter of 2019. In addition to realizing both a 12% increase in revenue and a 10% increase in adjusted EBITDA to $10.8 million in the third quarter of 2019, we have made significant progress in both our business development efforts, and strengthening our balance sheet.
The Company generated $10.9 million of operating cash flow for the quarter and our net debt position after subtracting cash was reduced to $10.5 million as of September 30th, 2019 compared to $113.5 million as of June of 2019. In addition, I'm sorry, $105.5 million was our reduction term. So, in addition to October 2019, the Company sold its tuition program management service businesses which had trailing 12-month revenue of $6.4 million for approximately $20 million.
The Company has used these net cash proceeds to further reduce its net debt. A positive attribute of our Company is that over 60% of our revenue is considered recurring on an annual basis. We currently have approximately 125 of the Global 500 companies as clients. With that being said, we are making positive inroads in both increasing wallet share and winning new customers by leveraging our global footprint.
I will now