HOUSTON, Aug. 9, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, announced today its financial results for the second quarter ended June 29, 2013.
Second Quarter 2013 Highlights Compared to Second Quarter 2012:
- $0.06 loss per share, an improvement from a loss per share of $0.37
- Revenue of $50.6 million, a decrease of 14.5%
- Gross profit margin as a percentage of revenue of 10.9%, an increase from 8.8%
- Overall SG&A decreased from $7.9 million to $6.4 million
"The impending divestiture of our Gulf Coast engineering and in-plant operations to Furmanite will result in a major transformation of our business," said William A. Coskey, P.E., Founder and Chief Executive Officer of ENGlobal. "The transaction is expected to close by the end of August, and the corporate services transition is expected to be substantially complete by the end of 2013."
Mr. Coskey continued. "In effect, this transaction serves as a directional change for ENGlobal. We will have a fresh start and our management team will now have the freedom to pursue strategic opportunities that we believe will ultimately grow the Company. Through the balance of this year, we will firm up the new goals for our Company's future – and look forward to communicating our short- and long-term plans during that time."
The Company's gross profit margin as a percentage of revenue increased to 10.9% in the three months ended June 29, 2013 as compared to 8.8% for the three months ended June 30, 2012. The primary reason for this increase is reduced variable costs and improved efficiencies in the Automation segment.
The following table illustrates the composition of the Company's revenue and profitability for the three months ended June 29, 2013 and June 30, 2012, respectively [see table within the link below]:
http://www.b2i.us/profiles/investor/ResLibraryView.asp?ResLibraryID=64502&BzID=702&g=541&Nav=0&LangID=1&s=30
Overall, selling, general and administrative ("SG&A") expenses decreased $1.5 million, or 19%, from $7.9 million in the three months ended June 30, 2012 to $6.4 million for the three months ended June 29, 2013. As a percentage of revenue, SG&A decreased to 12.6% for the three months ended June 29, 2013, from 13.3% for the comparable period in 2012.
The amount outstanding under the Company's credit facility was $26.8 million at December 29, 2012, $14.7 million at June 29, 2013 and $12.5 million at August 7, 2013. These decreases were primarily due to the release of restricted cash related to the expiration of the Company's Ex-Im Letter of Credit Facility and the liquidation of the working capital of its divested business units.
On July 5, 2013, the Company entered into a definitive agreement under which its Gulf Coast engineering and in-plant operations will be sold to Furmanite America, Inc., a subsidiary of Furmanite Corporation (NYSE:FRM). The total value of the transaction to ENGlobal is expected to be approximately $21.5 million, consisting primarily of cash at closing and a $3.5 million promissory note issued with a Furmanite Corporation guarantee. ENGlobal intends to use the net proceeds from this transaction to repay its outstanding debt and for working capital purposes. The transaction has been approved by the boards of directors for both companies, and is expected to close on or around August 30, 2013, subject to lender approval and the completion of customary conditions.
The Company's Quarterly Report on Form 10-Q for the quarter ended June 29, 2013 will be filed with the Securities and Exchange Commission later today reflecting these results.
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