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:

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