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.