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.