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.