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.