ENGlobal Corporation: Third Quarter 2014 Results

HOUSTON, Nov. 6, 2014 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and automation services, today announced its financial results for the third quarter and nine months ended September 27, 2014.

2014 Third Quarter Highlights for Continuing Operations as compared to 2013 Third Quarter results:

• Revenue of $26.9 million, a 17.0% increase from comparable operations
• Gross profit margin of 22.6%, an increase of 640 basis points from comparable operations
• Net income from continuing operations of $1.8 million, an increase from a net loss of $0.1 million
• Earnings of $0.07 per diluted share from continuing operations, an increase from $0.00 earnings per diluted share

On a comparable basis, revenue from the continuing businesses increased to $26.9 million or a 17.0% increase from $23.0 million in the third quarter of 2013. ENGlobal reported net income from continuing operations of $1.8 million, or $0.07 per diluted share, for the quarter ended September 27, 2014, compared to a loss of $0.1 million from continuing operations or $0.00 per diluted share, for the quarter ended September 28, 2013. During the quarter ended September 27, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation expense of $0.7 million as compared to $0.5 million for the comparable period in 2013.

2014 Nine Months Highlights for Continuing Operations as compared to 2013 Nine Months results:

• Revenue of $81.0 million, a 26.8% increase from comparable operations
• Gross profit margin of 22.2%, an increase of 700 basis points from comparable operations
• Net income from continuing operations of $5.2 million, an increase from a net loss of $2.6 million
• Earnings of $0.19 per diluted share from continuing operations, an increase from a loss of $0.10 per diluted share

On a comparable basis, revenue from the continuing businesses increased to $81.0 million for the nine months ended September 27, 2014 or a 26.8% increase from $63.9 million for the nine months ended September 28, 2013. ENGlobal reported net income from continuing operations of $5.2 million, or $0.19 per diluted share, for the nine months ended September 27, 2014, compared to a loss of $2.6 million from continuing operations or $0.10 per diluted share, for the nine months ended September 28, 2013. During the nine months ended September 27, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation expense of $2.1 million as compared to $1.6 million for the comparable period in 2013.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "We are continuing to see positive results from initiatives that have been undertaken at ENGlobal over the last two years. Our improved performance is best demonstrated by a significant increase in margins, consistent project execution, as well as substantial internal growth in our continuing operations. We maintained a substantial cash balance and had no borrowings during the quarter. We also successfully replaced our current credit facility on September 16^th with a similar three year facility that will help provide the working capital to sustain our growth."

William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal added: "ENGlobal is continuing to perform well, both operationally and financially, as evidenced by this fourth consecutive quarter of profitability. All stakeholders in our Company can and should take pride in the significant turnaround that we together have accomplished over the last two years. Our solid financial footing now gives us an excellent base from which to extend our Company's growth."

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended September 27, 2014 and September 28, 2013: click here for tables

The numbers are looking better I will take a closer look at the SEC filing and make additional comments as necessary. Good luck to everyone.

ENGlobal Corporation: Second Quarter 2014 Results

HOUSTON, Aug. 8, 2014 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and automation services, today announced its financial results for the second quarter ended June 28, 2014.

HIGHLIGHTS OF CONTINUING OPERATIONS (2nd QTR 2014 compared to 2nd QTR 2013):

•     Revenue of $27.2 million, a 32% increase from comparable operations

•     Gross profit margin of 21.3%, an increase of 7.9 percentage points from comparable operations

•     Net income from continuing operations of $1.6 million, an increase from a net loss of $(1.6) million

•     Earnings from continuing operations of $0.05 per diluted share, an increase from a net loss of $(.06) per diluted share

On a comparable basis, revenue from the continuing businesses increased to $27.2 million. A 32% increase from $20.2 million in the second quarter of 2013. ENGlobal reported net income from continuing operations of $1.6 million, or $0.05 per diluted share, for the quarter ended June 28, 2014, compared to a net loss from continuing operations of $(1.6) million, or $(0.06) per diluted share, for the quarter ended June 29, 2013. During the quarter ended June 28, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation expense of $0.7 million as compared to $0.6 million for the same period in 2013.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "I believe we are continuing to see positive results from initiatives that have been undertaken at ENGlobal over the last two years. Our improved performance is best demonstrated by a significant increase in margins, consistent project execution, as well as substantial internal growth in our continuing operations."

Mr. Hess continued: "We maintained a substantial cash balance and had no borrowings during the quarter. However, we are working with a regional bank to replace our current credit facility that matures at the end of the third quarter with a similar three year facility that will help provide the working capital to sustain our growth. While there is still some work to be done, we expect a new facility to be in place during September."

"We're obviously proud to report this third consecutive profitable quarter, which represents a major turnaround in our business from recent years," said William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "We continue to be excited about capitalizing on ENGlobal's differentiated expertise and proprietary technologies, whereby we provide value to our clients. In addition, we expect to begin evaluating select external growth opportunities – having similar characteristics and potentially providing additional capabilities for our firm."

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended June 28, 2014 and June 29, 2013 (see link):

http://www.b2i.us/profiles/investor/ResLibraryView.asp?ResLibraryID=71823&BzID=702&g=541&Nav=0&LangID=1&s=0

Overall, a good report and trend. I like what they are doing and the improvements being made. I am calling like I see it and the company is getting better. Good luck to everyone.

ENGlobal Corporation: First Quarter 2014 Results

HOUSTON, May 8, 2014 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and automation services, today announced its financial results for the first quarter ended March 29, 2014.

HIGHLIGHTS OF CONTINUING OPERATIONS (1st QTR 2014 compared to 1st QTR 2013):

•Revenue of $26.9 million, a 33% increase
•Gross profit margin of 22.6%, an increase of 10.9 percentage points
•Net income from continuing operations of $1.8 million, an increase from a net loss of $(1.0) million
•Earnings from continuing operations of $0.07 per diluted share, an increase from a net loss of $(.04)
Revenues in the first quarter of 2014 were $26.9 million, a decrease of 46% from $49.8 million from the prior year period, which included the revenue from the EPCM business sold in August of 2013. On a comparable basis, revenue from the continuing businesses increased 33% from $20.2 million in the first quarter of 2013. ENGlobal reported net income from continuing operations of $1.8 million, or $0.07 per diluted share, for the quarter ended March 29, 2014, compared to a net loss from continuing operations of $(1.0) million, or $(0.04) per diluted share, for the quarter ended March 30, 2013. During the quarter ended March 29, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation expense of $0.7 million as compared to $0.6 million for the same period in 2013.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "I believe we are beginning to see the results of the initiatives that we began undertaking in late 2012 and early 2013. We have pared the company down to a smaller, more focused operation, and reduced the risk profile of the projects we are undertaking, and are maintaining strict control over our overhead costs. As a result, our margins are improving. We have no borrowings under our current credit facility and have maintained a healthy cash balance during the quarter. While there is always room for improvement, I believe we are in a strong financial position and poised for future growth."

"I can't be more proud of the significant progress we have made, which is reflected in today's report," said William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "I would like to thank all of our stakeholders – our valued customers, employees and investors – for their continued support."

The following table illustrates (follow link) the composition of the Company's revenue and profitability for its operations for the three months ended March 29, 2014 and March 30, 2013:

http://www.englobal.com/profiles/investor/ResLibraryView.asp?ResLibraryID=70015&BzID=702&Nav=0&LangID=1&s=0&Category=64

ENGlobal Announces Technology Patents and Project Awards

Adds Subsea Business Manager to Support Subsea/Offshore Opportunities

HOUSTON, March 27, 2014 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, today announced that its Universal Master Control Station™ (UMCS™) and its industrial Heating, Ventilation, and Air Conditioning (HVAC™) solution were issued patents by the U.S. Patent and Trademark Office. The Company also announced that both the UMCS™ and HVAC™ solutions have been awarded new projects based primarily on the benefits of these respective technologies.
1. ENGlobal's UMCS™ monitors and controls subsea equipment from multiple vendors within a single master control station, among other features. As previously announced, ENGlobal's first UMCS™ was successfully installed on an offshore platform in the Gulf of Mexico for a major international oil and gas company. Today, the Company announced a follow-on order for an additional UMCS™ from the same client.
 
2. ENGlobal's HVAC™ is used primarily in rugged, industrial applications including those requiring higher reliability redundant configurations and hazardous area building pressurization. The self-contained system incorporates both a programmable logic controller (PLC) and a human machine interface (HMI), which provides for both local, as well as networked operation and monitoring. The HVAC™ is also specially designed to operate successfully in very hot ambient temperatures with full cooling capacity in environments up to 122ºF (50ºC). Today, the Company announced that a major drilling contractor has selected ENGlobal's HVAC™ for their upcoming driller cabin applications.

The Company also announced that Mr. Michael Martin joined ENGlobal as Subsea Controls and Integration Business Manager with a focus on developing business based on the UMCS™ and other subsea/offshore opportunities. Mike has over 30 years of entrepreneurial experience introducing new technology into the oil and gas industry. Prior to joining ENGlobal, Mr. Martin was a business development manager for Schlumberger and The Wood Group developing upstream offshore production and operations optimization solutions for assets in the Gulf of Mexico, Brazil, Mexico, North Sea, Middle East, Australia, and West Africa.

"We are pleased that the UMCS™ and HVAC™ solutions have become patented technology as we continue to build and strengthen our proprietary technology as a differentiator in the energy services marketplace," said stated William A. Coskey, P.E., Chairman and CEO of ENGlobal. "Our proprietary technology is validated by wins from two of our key customers, which we believe will lay the groundwork for these high potential market segments. Finally, I'm extremely excited to have Mike Martin's depth of experience now on our team, and am confident he will greatly expand our prospects with many new subsea and offshore clients."

ENGlobal Corporation: 4Q & FY 2013 Results

ENGlobal Reports Fourth Quarter and Fiscal Year 2013 Results

HOUSTON, March 14, 2014 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and automation services, today announced its financial results for the fourth quarter and fiscal year ended December 28, 2013.

Fourth Quarter 2013

Revenues in the fourth quarter of 2013 were approximately $25.3 million, a decrease of 51.4% from $52.1 million from the prior year period. ENGlobal reported net income of $0.4 million from continuing operations, or $0.02 per diluted share, for the quarter ended December 28, 2013, compared to a net loss of $2.5 million, or $(0.09) per diluted share, for the quarter ended December 29, 2012.

Fiscal Year 2013

Revenues for the year ended December 28, 2013 were $169.0 million, a decrease of approximately 25.8% from the $227.9 million posted for the year ended December 29, 2012. ENGlobal reported a net loss from continuing operations of $2.3 million, or $(0.08) per diluted share, for fiscal year 2013, compared to a net loss of $30.1 million from continuing operations, or $(0.32) per diluted share, for fiscal year 2012.

Management's Assessment

Mark A. Hess, ENGlobal's Chief Financial Officer, said: "During 2012 and 2013, we divested a large portion of our engineering operations and implemented a number of initiatives in order to restore profitability to our core operations. This is reflected in the decrease in our revenues, direct costs and SG&A expense year-over-year. While we are a smaller company, we are a more profitable one. Our remaining business is largely reflected in our fourth quarter 2013 results, which show an increase in our gross profit margins from approximately 10% to approximately 19% when comparing the 2012 and 2013 periods. The increase in gross profit was primarily a result of a changing mix of our business toward a higher percentage of upstream and automation activities, operating under high margin contracts, reducing the number of higher risk projects, and focusing on project execution. Our annualized fourth quarter 2013 SG&A expense was approximately $17 million, which is higher than we anticipate going forward yet significantly lower than fiscal year 2012. As a result of our increased margin and reduced expenses, our net income from continuing operations in the fourth quarter of 2013 was $362,000 as compared to a net loss from continuing operations of $2.5 million in the same period in 2012."

Mr. Hess continued. "Another sign of our major transformation is that we ended 2012 with approximately $738,000 in unrestricted cash and borrowings of $26.8 million, while we ended 2013 with approximately $4.0 million in unrestricted cash and an undrawn working capital facility as a result of the divestiture and subsequent liquidation of our non-core business units. Consequently, we believe that ENGlobal is in a much stronger financial position."

"ENGlobal turned a major corner in 2013, financially-speaking as well as in many other respects," said William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "Our employees are executing projects extremely well with what I believe is the best, collegial management team in our Company's history. As a result of our new culture, we are building long-lasting relationships with our valued clients, and growing into some exciting areas of activity. I would like to thank all of our stakeholders – our customers, employees and investors – for their ongoing support."

The following table illustrates the composition of the Company's revenue for the fiscal years ended December 28, 2013 and December 29, 2012: (see table on the following link)

http://www.englobal.com/profiles/investor/ResLibraryView.asp?ResLibraryID=68737&BzID=702&Nav=0&LangID=1&s=0&Category=64

The Company's Annual Report on Form 10-K for the year ended December 28, 2013 will be filed with the Securities and Exchange Commission today reflecting these results.

Blog Update

Rev 4.0

ENGlobal Provides Post-Divestiture Corporate Update

HOUSTON, Feb. 10, 2014 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, today provided a corporate update after considering its 2012-2013 business divestitures, the most recent of which was closed in the third quarter of 2013.

While the Company has yet to complete its final year-end accounting and audit processes, ENGlobal provided the following analysis of its post-divestiture performance and estimated fourth quarter 2013 financial data from continuing operations:

1.  Revenue of approximately $25.0 million.
2.  Consolidated gross profit margin of approximately 19% of revenue.
3.  Selling, general and administrative (SG&A) expenses of approximately 17% of revenue, including non-recurring transition expenses.
4.  At December 28, 2013, cash on hand of approximately $5.5 million, without borrowing from the Company's working capital facility.

"Our current business is best represented by an increase in gross profit margins and an improved financial condition as a smaller, more focused Company," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer. "The position that we find ourselves in today is a direct result of steps initiated in late 2012, which includes a largely rebuilt and highly motivated management team, an emphasis on customer satisfaction, project execution and cost containment; and innovative strategies for future business development. While we are not satisfied with our overall results, we are pleased with the progress we have made to date and look forward to additional improvements in the coming year."

As previously reported, the Company discontinued its electrical services division and divested its land/right of way and midstream inspection divisions during 2012, as well as divested its Gulf Coast engineering and in-plant operations in the third quarter of 2013. ENGlobal experienced operating losses through the first half of 2013 and, therefore, expects to report an operating loss for the full year 2013, despite post-divestitures operating improvements.

ENGlobal plans to issue its results for the year ended December 31, 2013 and file its Annual Report on Form 10-K on or about March 13, 2014.

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ENGlobal Provides Update on Recent Automation Awards

HOUSTON, Feb. 6, 2014 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, today reports on a range of project scopes that were recently awarded to its Automation Segment. The cumulative value of the awards to ENGlobal is in excess of $10.0 million.

•An automated pipe handling equipment company has awarded ENGlobal additional projects to procure, integrate, and test a number of automated driller's cabins, which include consolidated drilling controls, automated pipe handling controls, programmable logical controller (PLC) hardware and data processing systems.

•A large engineering and construction firm has awarded ENGlobal a continuous emissions monitoring system (CEMS), which is specifically designed to meet the environmental pollution regulatory requirements for stack emissions and air quality standards.

•ENGlobal is providing design and integration services for several analyzer shelters and remote instrument enclosure (RIE) buildings to a large refiner. The Company's scope also includes engineering, procurement, and testing of the analyzer shelters and RIEs.

•A midstream master limited partnership (MLP) has selected ENGlobal as its automation systems integration contractor. Specifically, the Company is providing procurement, fabrication, and testing of process control shelters, PLC systems, railcar and truck loading/unloading facilities, and satellite stations.

"We are pleased to receive these project awards from both new and existing clients," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer. "ENGlobal has been successful in marketing its new operational direction, as illustrated by these recent project awards. We are especially proud to showcase our midstream/downstream Engineering and Automation services and new-to-market upstream capabilities."

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HOUSTON, Dec. 20, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and related project services, today announced the results of its 2013 annual stockholders' meeting held this morning in North Houston.

The formal business of the meeting included the election of the following directors to a one-year term: William A. Coskey, P.E., David W. Gent, P.E., Randall B. Hale, and David C. Roussel. In addition, ENGlobal's stockholders approved: (1) the amendment to the ENGlobal 2009 Equity Incentive Plan to increase the number of shares of common stock reserved for issuance thereunder from 980,000 shares to 1,830,000 shares; (2) the ratification of the appointment of Hein & Associates LLP as the independent auditors of ENGlobal for fiscal year 2013; (3) approved the compensation of our named executive officers; and (4) approved "three years" as to the frequency of the occurrence of future advisory votes on executive compensation.

Approximately 91.94% of ENGlobal's total common stock outstanding was represented at the meeting, either in person or by proxy. Of those shares, approximately 97.99% were cast in favor of the election of the Company's directors, 77.21% were cast in favor of the approval of an amendment to the ENGlobal 2009 Equity Incentive Plan, approximately 94.04% were cast in favor of the ratification of the appointment of Hein & Associates LLP, 92.8% were cast in favor of the compensation of our named executive officers, and 68.96% were cast in favor of "three years" as the stockholders' choice as to the frequency of the occurrence of future advisory votes on executive compensation. Upon conclusion of the formal business of the meeting, ENGlobal's President and CEO, Mr. Coskey, provided an operational update to the stockholders.

Editorial: Since the company was not sold in entirety a later than usual Annual Meeting was scheduled to meet SEC requirements.  The common events happened but of note the share reserve was increased (almost doubled) from 980K to 1.83 million shares. These shares can be used for a number of reasons and most commonly as incentive for attracting top level employees and as a leadership retaining incentive. On one hand it is dilution and shares are used as the cost of stockholders, which is unfavorable. On the other hand, it is common business for companies that have weakness or more diplomatically said, less resources. The reasons for such can be pondered...however, IF I was faced with the same conditions I would probably request those extra shares also.

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The old Blog Update has become: Summer and Fall News and Events 2013. You can find the previous information within that post.

In the last 1.75 years this blog has received over 38,800 hits and 60,900 pageviews as of writing from 62 different countries. Readership comes from the following countries: United States, Canada, Australia, New Zealand, Bermuda, Russia, Saudi Arabia, United Arab Emirates, Oman, Iraq, Pakistan, Sweden, Finland, Latvia, Poland, Germany, Argentina, Uruguay, Brazil, Colombia, Ecuador, Chile, Panama, Costa Rica, Trinidad and Tobago, Dominican Republic, Japan, South Korea, Netherlands, Hong Kong, Singapore, Thailand, Vietnam, Indonesia. China, England, Ireland, Spain, France, Belgium, Italy, Switzerland, Ukraine, Czech Republic, Romania, Bulgaria, Hungary, Slovenia, Serbia, Georgia, Moldova, Turkey, Kazakhstan, Malaysia, Philippines, Israel, Tanzania, India, Sri Lanka, Algeria, Gabon and South Africa. Thank you to everyone for reading.

I would have never thought that many hits would be realized and I will continue to support the readership. Welcome to the new countries viewing - Turkey, Czech Republic, Bermuda, Kazakhstan, Panama, South Africa, Serbia, Trinidad and Tobago, Moldova, Gabon, Costa Rica, South Korea and Gabon readers. If you need engineering work monitor this website in the future.