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.