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.