Due to ENGlobal's rapidly growing business and healthy backlog ENG operations require more space. On 22 December an article appeared indicating ENGlobal's commitment for over 80,000 sq. ft. of additional space.
http://www.costar.com/News/Article.aspx?id=9EFAC239740BC9C886DE294CCF91934D&ref=1&src=rss
That project appears to be well underway. Before the article was written the expansion plans had already been submitted for permitting. Also, the invitation for subcontractors has been advertised and the bid date deadline has already past. You can see the Overall floor plan for the expansion project above. Click on the image for a closer view.
You may view the sub links to the plans and invitation for bids from subcontractors at this link. Drilling into the plan link you can view a .zip file of the entire set of plans.
http://www.costar.com/News/Article.aspx?id=9EFAC239740BC9C886DE294CCF91934D&ref=1&src=rss
That project appears to be well underway. Before the article was written the expansion plans had already been submitted for permitting. Also, the invitation for subcontractors has been advertised and the bid date deadline has already past. You can see the Overall floor plan for the expansion project above. Click on the image for a closer view.
You may view the sub links to the plans and invitation for bids from subcontractors at this link. Drilling into the plan link you can view a .zip file of the entire set of plans.
Based on my previous trips I believe this is ENG Automation's Houston Fabrication Unit moving into a newer, larger and more efficient HQ/Fabrication building. I reported in my last Annual Report to Stockholders that I saw this shop literally filled to the brim with contract work. I also think that the profit from the witnessed heavy contract load will add to other automation work momentum mentioned in previous posts for a very good 4Q. Additionally, EAG has a very high profit margin. I have seen advertisements from EAG and ENG's Land Group looking for new employees since early Fall to Present.
From previous company statements EAG and ELG are growing and I believe EAG is benefiting from earlier, albeit, nebulous contract announcements. Despite the hit ENG took from hurricane losses I think they will recoup much more in revenue and margins from damage repair and associated overtime in 4Q/1Q 2009. Remember, that from recent company statements increasing performance was expected not only from these two groups but also some from the Engineering and Construction Groups.
Despite the losses from hurricane and other company mentioned areas in the 3Q the continuing operations numbers range were indicative of great company health. Increasing in fact. Continuing operations is and will be the best measure of a company; it is a Wall Street standard. In 3Q the analysis showed ENGlobal’s continuing operations was .23-.25 cents per share. This would have been another company quarterly record and quite possibly an overall record without the write downs. Will there be more write downs? I can’t predict that and I would like any critic to document their specific special event/write down prediction categories and amounts with their criticism. Since special events occur infrequently, hence, the reliance on continuing operations.
In this terrible economy where does ENGlobal stand since the overall equity downturn. After the downturn was well underway ENG reported a measurable three quarter’s profit of .51 cents – 25% Higher than 2007. Backlog was 15% Higher. Billable was hours Up 20%. A 10 to 12 cent reduction in 3Q EPS due to special items indicate by adding this to the reported earnings of .13 yields a continuing operations EPS of .23 to .25 cents in Q3 2008. This represents an increase of 65 – 79% in continuing operations compared to Q3 2007. Given the actual past performance and positives given by the company ENGlobal should have a great 4Q. Moreover, based on already reported profit the headline for the 4Q/FY2008 will indicate a huge record year. How many companies do you see reporting good earnings and growth this these days?
