HOUSTON, Nov 08, 2013 (GLOBE NEWSWIRE via COMTEX) -- ENGlobal, a leading provider of energy-related engineering and automation services, announced today its financial results for the third quarter ended September 28, 2013.
Third Quarter 2013 Highlights Compared to Third Quarter 2012:
- Breakeven earnings per share, an improvement from a loss per share of $0.83
- Revenue of $43.3 million, a decrease of 24.7%
- Gross profit margin of 12.0%, an increase from 5.7%
- Overall SG&A decreased from $7.1 million to $5.2 million
- Reduced bank debt from $29.4 million to $1.1 million
ENGlobal reported a net loss of approximately $50 thousand, or $(0.00) per share, from both continuing and discontinued operations for the quarter ended September 28, 2013. This compares to a net loss of approximately $22.3 million, or $(0.83) per share, and a net loss from continuing operations of approximately $18.7 million, or $(0.67) per share, for the quarter ended September 29, 2012. Third quarter 2013 revenues decreased to $43.3 million, 24.7% lower than the $57.5 million for the third quarter of 2012, primarily due to the sale of the Gulf Coast Engineering and In-Plant operations on August 30, 2013.
"ENGlobal has come a long way in fundamentally reshaping its Business over a relatively short period of time," said William A. Coskey, P.E., Founder and Chief Executive Officer of ENGlobal. "ENGlobal's management team has been almost completely reorganized, a move which has proven to be effective in terms of improving margins and reducing expenses. In addition, the Company has sold or discontinued four non-strategic businesses since my return as CEO."
Mr. Coskey, continued. "Through these and other measures, we've been able to significantly reduce dependence on our working capital credit facility and have now returned to being in full compliance with its covenants required by our facility. These actions of divesting certain assets have been important to ENGlobal - both in terms of financial liquidity and for our higher value engineering and automation focus going forward."
The Company's gross profit margin as a percentage of revenue increased to 12.0% in the three months ended September 28, 2013 as compared to 7.1% for the prior year period. The primary reason for this increase is the implementation of our profit improvement plan, which reduced the risk profile of our project mix, reduced variable costs, and improved efficiencies in the Automation segment.
The amount outstanding under the Company's credit facility was $26.8 million at December 29, 2012, $1.1 million at September 28, 2013 and $567 thousand at November 8, 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.
The following table illustrates the composition of the Company's revenue and profitability, inclusive of discontinued operations, for the three months ended September 28, 2013 and September 29, 2012, respectively (click on link for article and table):
http://www.englobal.com/profiles/investor/ResLibraryView.asp?ResLibraryID=66293&BzID=702&Nav=0&LangID=1&s=0&Category=64
Overall, selling, general and administrative ("SG&A") expenses decreased $3.5 million, or 40.2%, from $8.7 million in the three months in 2012 to $5.2 million for the current quarter. As a percentage of revenue, SG&A remained steady at 12.0% for the three months ended September 28, 2013 when compared to the prior period.
In the three months ended September 29, 2012, the Company recorded goodwill impairment in the amount of $17.0 million of which $14.6 million was attributable to continuing operations.
The Company's Quarterly Report on Form 10-Q for the quarter ended September 28, 2013 will be filed with the Securities and Exchange Commission later today reflecting these results.
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