ENGlobal Corporation: Fourth Quarter and Fiscal Year 2012 Results

HOUSTON, April 15, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, today announced its financial results for the fourth quarter and fiscal year ended December 29, 2012.

Fiscal Year 2012

Revenues for the year ended December 29, 2012 were $227.9 million, a decrease of approximately 4% from the $237.6 million posted for the year ended December 31, 2011. Excluding certain non-cash charges, such as the impairment of goodwill and the write-off of a deferred tax asset, ENGlobal reported a net loss from continuing operations of $8.7 million, or $(0.32) per diluted share for fiscal year 2012, compared to a net loss of $4.4 million from continuing operations, or $(0.16) per diluted share for fiscal year 2011.

Fourth Quarter 2012

Revenues in the fourth quarter of 2012 were approximately $52.1 million, a decrease of 30% from $74.6 million from the prior year period. ENGlobal reported a net loss of $2.5 million from continuing operations, or $(0.09) per diluted share, for the quarter ended December 29, 2012, compared to a net loss of $2.6 million, or $(0.10) per diluted share for the quarter ended December 31, 2011.

Management's Assessment

William A. Coskey, P.E., ENGlobal's Chairman and Chief Executive Officer, stated: "ENGlobal's turnaround plan essentially began in the fourth quarter of last year. While the Company experienced a difficult 2012 and continues to face a number of challenges, we are cautiously optimistic about our operations resulting from measures that were implemented in the last six months. During this time, the Company sold two non-strategic businesses, discontinued another, and we are now focused on our core operational segments."

Mark A. Hess, ENGlobal's Chief Financial Officer, added: "We are also operating more efficiently and seeing significant margin improvement from our continuing operations. The latter of which is primarily due to ENGlobal's ongoing efforts to significantly reduce overruns on its projects and to improve commercial terms on its contracts. We remain dedicated to reducing our dependence on our working capital credit facility. As a result of the implementation of the above initiatives and the sale of our Field Solutions divisions, we have reduced the level of borrowings under our working capital credit facility to $26.8 million at the end of 2012 and we are currently borrowing significantly below that level."

Mr. Coskey concluded, "As a result of our combined efforts, steady financial improvement, and increasing backlog, our management team can be proud to have outperformed the Company's financial turnaround plan for each month since its inception."

The following table illustrates the composition of the Company's revenue for the fiscal years ended December 29, 2012 and December 31, 2011: Click Here