ENGlobal Announces Project Awards

HOUSTON, Dec. 14, 2015 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of automation and engineering services, today announced its success in being awarded three new projects in late November with a combined value of approximately $6 million. This new work for the Company's Automation Segment serves to illustrate its wide range of expertise in both engineering and fabrication, and in the key areas of electrical power, control systems and process analytics. 

More specifically, ENGlobal has been selected by a major refining client in the Rocky Mountains to design, fabricate and supply a modular Power Distribution Center, which is needed to provide critical electrical switchgear for their operations.

The Company will also provide the full scope of controls engineering and systems equipment for a midstream energy master limited partnership. This work is integral to a new crude oil transportation and storage facility to be located on the Texas Gulf Coast.

Finally, ENGlobal has been selected as the designer and supplier of all online process analytical equipment for a new chemical production facility on the U.S. Gulf Coast. ENGlobal will deliver this equipment beginning in the second quarter of next year, with extended deliveries throughout the second half of 2016.

"Our past performance and ability to provide complete engineered solutions for our clients is a critical element for our success," said William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "I would like to thank these three important clients for their confidence and include a note of appreciation to our teams for their technical contributions."

ENGlobal Corporation 3Q 2015

    
ENGlobal Reports Third Quarter 2015 Results

HOUSTON, Nov. 6, 2015 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and automation services, today announced its financial results for the third quarter ended September 26, 2015.

HIGHLIGHTS OF CONTINUING OPERATIONS:

    Revenues of $18.2 million
    Gross profit margin of 20.7%
    Net income of $0.01 per diluted share

Revenues in the third quarter of 2015 were $18.2 million, a decrease of 32.4% from $26.9 million in the prior year period. ENGlobal reported net income of $0.3 million, or $0.01 per diluted share, for the quarter ended September 26, 2015, compared to net income of $1.8 million, or $0.07 per diluted share, for the quarter ended September 27, 2014. During the quarter ended September 26, 2015, the Company incurred non-cash expenses for depreciation, amortization and stock compensation of $0.5 million as compared to $0.7 million for the same period in 2014.

Net income for the nine months ended September 26, 2015 was $1.9 million as compared to $5.2 million for the nine months ended September 27, 2014. The company incurred non-cash expense for depreciation, amortization and stock compensation of $1.5 million as compared to $2.1 million for the same period in 2014.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "We are pleased to report another profitable quarter. ENGlobal's profit margins remain respectable given the current environment, and our available capital has improved over the last year. The Company continues to maintain a healthy balance sheet with an increasing cash balance and working capital, with no borrowings under our credit facility, all of which puts us in a good position to take advantage of external growth opportunities."

"One ENGlobal response to the current energy marketplace continues to be internally investing in our Business," said William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "It's an opportune time to be adding key personnel to our management team – focusing on proven individuals who bring years of experience and industry relationships. We are excited about the many opportunities which we expect to result from our on-going business development, as well as from key personnel who have joined our team in recent months."

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended September 26, 2015 and September 27, 2014, see tables here:

As you can see the profits are low but they are not negative. Margins remain high and there is overture for expansion and acquisitions. The economy is not good so this is survivable for now. No borrowing on their credit facility has been necessary and there are good possibilities for future improvement. So the outlook remains positive. Good luck to everyone.

Over 700 Engineering Empolyess Are Changing Their Business Cards - Again.

Burrow Global, LLC, a Full-Service EPC Firm, Acquires Furmanite Technical Solutions

Burrow strengthens technical services staff for core process industries

HOUSTON (SEPTEMBER 23, 2015) - Burrow Global, LLC (BG) announced today that it has entered into an agreement to purchase the assets, contracts and certain liabilities of Furmanite Technical Solutions (FTS), a division of Furmanite America. The transaction is scheduled to close on September 28, 2015.

In conjunction with the closing of the transaction, approximately 775 full-time FTS professionals will transition to Burrow Global Services (BGS) a wholly owned subsidiary of parent company Burrow Global, LLC. The combination will increase BGS’ engineering and technical staff to approximately 1200 personnel and the Burrow Global companies will employ nominally 1400 EPC employees. BG will combine the FTS and BG offices in Beaumont and Deer Park, TX and Baton Rouge, LA while obtaining new offices in Lake Charles, LA and Angleton, TX.

“We see this as a true win for all involved including FTS, BG, our clients and our respective employees”, said Mike Burrow, Chairman/CEO of Burrow Global, LLC. “The FTS division was formerly the Gulf Coast operations of ENGlobal Corp and before that it was the legacy ‘Petrocon Engineering’ group. BG’s current senior management team includes former executives from both of those organizations. Additionally, I was the founder and CEO of Petrocon Engineering and also Co-founder and CEO of ENGlobal before coming out of retirement to establish the Burrow Global companies. With that history in mind, this union will be more like a ‘reunion’ of the original staffs of Petrocon, ENGlobal and BG. We look forward to working with our colleagues and friends once again as we unite in our common goal of establishing strong client relationships based on superior performance and safety. The combined organization will offer our clients more technical resources and geographical coverage. This greatly enhances our ability to service our clients’ needs across multiple locations while establishing a platform to better perform their major projects.”

Stock Market Instability + Fixing America

So what is new everyone? Has ENGlobal made a sudden corporate viability change? No. The markets are progressing through what should have happened a long time ago. Since the crash of 2008 we have had some unusual and never seen before conditions.

Business has not been great despite what the White House conveys. Sure, it has been great for select companies in certain sectors but not for the overall economy. The White House and other government agencies have been expressing that business is better than it really is and the main supporting ‘evidence’ they point to is the stock market. This illumination is purely to support the erroneous stance that they, this administration, have improved the economy.

My opinion is that any repair in the economy is nothing more than what would have happened naturally. I also think it would have been much better if some definitive action had taken place to repair it. Has anyone ever see anybody from that economic dream team that Obama put together (including Warren Buffett) and paraded behind him during his first campaign? Of course not, yet I digress.

Q: So what has been holding up the markets for years since the crash?
A: TARP money.

Review history and you will find George Bush started to unleash money to prevent banking and institutions from collapsing. If credit failed our economy would crash – we all get that. Enter Obama a few months later and the Federal Reserve doors went wide open. Further review later testimony from the OMB chiefs before Congress that they lost track of the money – they did not how much money was given out and to whom! This was their job and they failed to keep track of the money. Estimates ranged well into the trillions.

It is easy to figure out where the money is. A percentage of it is invested in the markets and has been holding it up for years in a bad economy. The rest resides in those investing banks and institutions and has been backing them up with a ‘no fear attitude’ helping to keep markets high. The TARP money has created a bubble of sorts that only widespread concern and true economic realization can begin to influence it. That is what happens from time to time with increasing degrees.

A falling tide lowers all ships and that is what is happening to ENGlobal. It is a better company now, albeit smaller, since Mr. Coskey took over. Cutting out dead wood and shaping it up to something better controlled is the first order of business – he did that. Reducing lower profit operations and replacing them with higher margin profit sectors, he is doing that too. That is what the offshore work and automation push is all about. Debt was erased. And this folks is a survivable model for bad times. The next phase is more expansion into higher margins via target acquisitions to get the company value up. That will show up in the future. So you have a good company and it is admirable the price is even held up this well. It’s hard to pick a bottom but it’s a buy.

So what do we need fixed? A new President that will help build business in this country is #1! You may have the strongest military, the most nuclear weapons, many powerful ships or any other measurement of power; but if you fail economically – you are done. This is precisely how the USSR collapsed.

Ignore all the side issues in the political banter. Forget all the side shows about topics that do not affect our economy. The candidate that needs to be elected will not be perfect for any one person. That candidate will have to fix our economy and have the guts to stand up to the present system that has been serving itself instead of the population they are supposed to serve. Once the economy is in repair do we then have the latitude to entertain other issues that are distracting us now from our economic problems. God Bless America. And help us to help ourselves.

Pilot out.

ENGlobal Announces the Addition of Key Professionals

HOUSTON, Aug. 27, 2015 (GLOBE NEWSWIRE) -- ENGlobal (NASDAQ:ENG), a leading provider of automation and engineering services, today announced the addition of two key professionals to its management team in newly created positions. These actions support the Company's strategic commitment to further strengthen its midstream project execution and automation engineering businesses.

Mr. John Offutt has joined ENGlobal to serve in a newly created position - General Manager, Midstream Projects, with responsibility over the Company's Tulsa and Houston midstream operations. Mr. Offutt brings his knowledge and experience in managing all phases of large transportation-related projects, with the majority of his 30 year career having been with a major midstream operating company.

In his most recent assignment, Mr. Offutt managed a $700 million capital budget including 280 miles of pipeline and associated facilities. Mr. Offutt has directed teams of project managers, engineers, construction managers and support functions, being responsible for the successful execution of a lengthy list of both large and small diameter pipeline projects.

Additionally, Mr. Robert Sammons has joined the Company as General Manager – Automation Engineering. In this role, Mr. Sammons has the responsibility of expanding the Company's automation capabilities, in addition to supervising several of the Company's existing projects and technologies.

Mr. Sammons has gained extensive automation experience during his 25 year career, with senior level responsibilities focused on both business development and operations. Most recently he has been active in his own business providing Process Hazard Analysis and Burner Management Safety systems to midstream processing, refining and petrochemical clients.

"ENGlobal is privileged to include both John and Robert as senior professionals and members of the ENGlobal Team," stated William A. Coskey, P.E., ENGlobal's Chairman and Chief Executive Officer. "Our intent in the current market is to remain dynamic and proactive as a Company, building upon our many project execution skills and thereby demonstrating our continuous commitment to better serve our valued clients."

ENGlobal Corporation 2Q 2015 Report

HOUSTON, Aug. 6, 2015 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of engineering and automation services, today announced its financial results for the second quarter ended June 27, 2015.

HIGHLIGHTS OF CONTINUING OPERATIONS:

    Revenue of $21.1 million,
    Gross profit margin of 21.9%
    Net income of $0.03 per diluted share

Revenues in the second quarter of 2015 were $21.1 million, a decrease of 22.5% from $27.2 million in the prior year period. ENGlobal reported net income of $1 million, or $0.03 per diluted share, for the quarter ended June 27, 2015, compared to net income of $1.6 million, or $0.06 per diluted share, for the quarter ended June 28, 2014. During the quarter ended June 27, 2015, the Company incurred non-cash expenses for depreciation, amortization and stock compensation of $0.5 million as compared to $0.7 million for the same period in 2014.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "We are pleased to report today's profitable results-which I'm proud to say represents six consecutive profitable quarters. ENGlobal's profit margins remain respectable given the current environment, and our available capital has improved over the last year. The Company continues to maintain a healthy cash balance and working capital of $25.4 million, and we have no borrowings under our current credit facility."

"ENGlobal's response to the current energy marketplace has been to increase our efforts in developing new business," said William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "While we are excited about several new opportunities and client relationships that this internal process has produced, it also appears to be a great time to consider strategic acquisitions."

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended June 27, 2015 and June 28, 2014 can be found here.

Commentary

Another decent quarter folks. That's six in a row and ENGlobal is a fully recovered corporation.  Although smaller but more manageable, the hard to manage and lower profit earning centers have been cut. What you see is lighter weight healthier ENGlobal. The name of the game will be be growing with new divisions or profit centers added that have higher margins than the old traditional heavy weighted engineering model.

The CEO is a good entrepreneur and will find new areas to add. I am curious to see if some emphasis is put on new technology where the highest margins are possible in the shortest times. That would allow some rapid growth, attention and possible some buyout offers.

Good luck to all my new and long-time friends.

ENGlobal Corporation 1Q 2015 Report

ENGlobal Reports First Quarter 2015 Results
   
HOUSTON, May 7, 2015 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of engineering and automation services, today announced its financial results for the first quarter ended March 28, 2015.

HIGHLIGHTS OF CONTINUING OPERATIONS:

    Revenue of $23.1 million
    Gross profit margin of 17.8%
    Net income of $0.02 per diluted share

Revenues in the first quarter of 2015 were $23.1 million, a decrease of 14.1% from $26.9 million in the prior year period. ENGlobal reported net income of $0.6 million, or $0.02 per diluted share, for the quarter ended March 28, 2015, compared to net income of $1.8 million, or $0.07 per diluted share, for the quarter ended March 29, 2014. During the quarter ended March 28, 2015, the Company incurred non-cash expenses for depreciation, amortization and stock compensation of $0.6 million as compared to $0.7 million for the same period in 2014.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "The recent downturn in energy commodity prices has negatively impacted our business thus far in 2015 by contributing to cancellations of upstream related orders at the beginning of the first quarter. We expect continued softness in our business until overall project activity in the energy sector improves."

Mr. Hess continued: "We ended the first quarter with a healthy cash balance and working capital of $24.4 million, and have no borrowings under our current credit facility. In addition, notes receivable totaling $5.1 million were collected after the end of the quarter, contributing significantly to our cash position. While there is always room for improvement, I believe we are in a strong financial position and poised for future growth."

"We have pared the Company down to a smaller, more focused operation and reduced the risk profile of the projects we are undertaking, in addition to controlling overhead costs," said William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "These and other actions have allowed the Company to remain profitable, with positive cash flow during this downturn."

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended March 28, 2015 and March 29, 2014 can be found here.

ENGlobal Board Approves Stock Repurchase Program

ENGlobal Board Approves Stock Repurchase Program

HOUSTON, April 21, 2015 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of engineering and automation services, today announced that its Board of Directors has authorized the repurchase of up to $2 million of the Company's Common Stock.

Shares may be repurchased through open market or privately negotiated transactions, based on prevailing market conditions. The buyback program will be executed with internally generated corporate funds and the shares acquired will be retired and returned to the status of authorized but unissued.

ENGlobal: Fourth Quarter and FY 2014 Results

ENGlobal Reports Fourth Quarter and Fiscal Year 2014 Results

HOUSTON, March 12, 2015 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of engineering and automation services, today announced its financial results for the fourth quarter and fiscal year ended December 27, 2014.

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

• Revenue of $26.9 million, a 6.3% increase
• Gross profit margin of 20.4%, an increase of 140 basis points
• Net income of $0.8 million, an increase in net income of $0.4 million
• Earnings of $0.03 per diluted share, an increase from $0.02 per diluted share

On a comparable basis, revenue from the continuing businesses increased to $26.9 million or a 6.3% increase from $25.3 million in the fourth quarter of 2013. ENGlobal reported net income from continuing operations of $0.8 million, or $0.03 per diluted share, for the quarter ended December 27, 2014, compared to income of $0.4 million, or $0.02 per diluted share, for the quarter ended December 28, 2013. During the quarter ended December 27, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation of $0.6 million as compared to $0.7 million for the comparable period in 2013.

2014 Fiscal Year Highlights for Continuing Operations as compared to 2013 Fiscal Year results:

• Revenue of $107.9 million, a 21.1% increase
• Gross profit margin of 21.7%, an increase of 530 basis points
• Net income of $6.0 million, an increase from a net loss of $2.3 million
• Earnings of $0.22 per diluted share, an increase from a loss of $0.08 per diluted share

On a comparable basis, revenue from the continuing businesses increased to $107.9 million for the fiscal year ended December 27, 2014, or a 21.1% increase from $89.1 million for the fiscal year ended December 28, 2013. The sale of the Gulf Coast EPCM business in August of 2013 had contributed $79.8 million of revenues for the year ended December 28, 2013. ENGlobal reported net income from continuing operations of $6.0 million, or $0.22 per diluted share, for the fiscal year ended December 27, 2014, compared to a loss of $2.3 million from continuing operations, or a loss of $0.08 per diluted share, for the fiscal year ended December 28, 2013. During the fiscal year ended December 27, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation of $2.7 million as compared to $2.2 million for the comparable period in 2013.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "We are proud to have exceeded our financial targets for 2014, which was driven by an increase in margins, consistent project execution, as well as internal growth. We maintained a substantial cash balance and had no borrowings from our working capital lines during 2014. We also successfully replaced our credit facility with a similar three-year facility that will help provide the working capital needed to further our growth."

William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal added: "I would like to sincerely congratulate the outstanding men and women of ENGlobal for their contributions toward a successful 2014. We will not be immune to some industry headwinds during 2015, but are currently encouraged by the continued level of spending by our largely midstream and downstream clientele. Having regained our footing once again, we now expect to explore acquisition opportunities for external growth."

The following table illustrates the composition of the company's revenue and profitability for its operations for the fiscal years ended December 27, 2014 and December 28, 2013: Click Here

Congratulations to ENGlobal on their continuing improvement. The proof is in the numbers. With margins increasing and revenue growing I like what I am seeing. These are margin levels that ENGlobal hasn't experienced in the past. Selling off lower margin operations and moving into areas with more profit such as offshore work and Automation have enabled this change. This is good helmsmanship from management working like a team.

Take another look at the comments above by Mark Hess and Bill Coskey. Mark points out good news including "...no borrowings from our working capital lines during 2014." and replacing a credit facility with a better one. Bill Coskey notes, "We will not be immune to some industry headwinds during 2015, but are currently encouraged by the continued level of spending by our largely midstream and downstream clientele. Having regained our footing once again, we now expect to explore acquisition opportunities for external growth." This is realistic honesty you don't see very much in public company reports. I like it and it is overall good news. With the higher margins they can weather the normal economic bumps better. The trend is improving and I believe ENGlobal is a Buy. Good Luck to everyone.