HOUSTON, TX--(Marketwired - Nov 29, 2016) - ENGlobal, a leading provider of engineering and automation services, today announced a new project award valued at approximately $7 million. ENGlobal's Automation business segment has been selected as the supplier of Analytical Process Control Equipment for a major chemical complex on the U.S. Gulf Coast. These control systems will provide information regarding critical feedback on product quality and information regarding safe operating conditions for the facility. Design of these systems has commenced, with project execution being scheduled over the next 18 months.
William A. Coskey, P.E., CEO of ENGlobal stated, "This important award illustrates a general uptick in activity we've recently experienced in our business. As one data point, the Company's overall backlog has increased approximately 20% thus far in the fourth quarter of 2016, with all ENGlobal business units experiencing backlog growth during this period. We're encouraged by this recent trend, and the size and breadth of the proposal opportunities we're currently seeing."
03 November 2016
ENGlobal Reports Third Quarter 2016 Results
HOUSTON, TX--(Marketwired - Nov 3, 2016) - ENGlobal, a leading provider of engineering and automation services, today announced results for the third quarter ended September 24, 2016.
ENGlobal reported net income of $0.5 million for the third quarter of 2016 which was an increase of $0.2 million as compared to the net income reported for the prior year period. The net income per diluted share was $0.02 for the third quarter just ended and $0.01 for the third quarter of 2015. Revenue decreased $2.2 million to $16.0 million from $18.2 million, or a 12% decrease, for the three months ended September 24, 2016, as compared to the three months ended September 26, 2015.
ENGlobal reported a net loss of $1.9 million for the nine months ended September 24, 2016, a decrease of $3.8 million compared to net income of $1.9 million reported for the prior year period. The net loss per diluted share was $0.07 for the nine months ended September 24, 2016 compared to net income per diluted share of $0.07 for the nine months ended September 26, 2015. Revenue decreased $17.7 million to $44.6 million from $62.4 million, or a 29% decrease, for the nine months ended September 24, 2016, as compared to the nine months ended September 26, 2015.
In April 2015, the Company's Board of Directors authorized the repurchase of up to $2.0 million of the Company's common stock from time to time, based on prevailing market conditions. Through September 24, 2016, ENGlobal has repurchased and retired approximately 950,911 shares of common stock at a cost of $1.2 million under this program. As of September 24, 2016, the remaining amount authorized for repurchase under this program was $0.8 million.
Management's Assessment
Mark Hess, ENGlobal's Chief Financial Officer stated: "Although our recent backlog has been relatively stable, we have experienced a large upturn in project awards thus far in the fourth quarter. Similarly, we are seeing a significant increase in our proposal pipeline; however, projects are continuing to be awarded more slowly than in the past. ENGlobal has been striving to reduce both direct and variable expenses while our end markets have been in a downturn. These efforts, combined with an increase in project work, have allowed the Company to achieve profitability in the third quarter."
Mr. Hess continued: "Our balance sheet remains very strong. Cash increased by $1.4 million during the quarter to $16.1 million at the end of September, primarily as a result of the collection of retention receivables, and we continue to have no borrowings under our working capital facility. In total, we have $22.3 million in net working capital which we believe is sufficient for us to weather the current market cycle and for future expansion."
William A. Coskey, P.E., Chairman and CEO of ENGlobal added: "The Company continues to be opportunistic in making investments during this time in order to position our business for improving conditions. We continue to add highly experienced personnel in key positions; an effort which is just now producing results based on our significant upturn in both proposal activity and bookings."
Mr. Coskey continued: "In addition, we have increased our project execution capabilities as a result of opening our 31 acre fabrication facility in Henderson, Texas. In the near term, this latest investment should allow us to perform more project scope by fabricating certain mechanical components. We also expect this new service to have many cross selling opportunities with our existing engineering, automation and integration businesses. However, the important long term strategy will be to facilitate ENGlobal as a provider of highly engineered and modularized process systems. We expect to provide our clients with a great amount of value that can be achieved through standardized and modular construction, and single point of project execution. "
The following is a summary of the income statement for the three months and nine months ended September 24, 2016 and September 26, 2015 can be found in the tables here:
01 September 2016
What Can You Do To Help America?
Greetings everyone,
It has been hard to escape the recent events and the news broadcasts surrounding them. By now many of you have noticed that the mainstream news hasn’t been filling you in on all the facts. There are some exceptions if you watch the news a great deal; digging past the agendas you can find some startling facts. After so much time it becomes clear the true story doesn’t fit the media's agenda.
For example, take all the past media coverage surrounding the liberal idea of spreading war refugee immigrants throughout Europe and the US. Why don’t you hear much about it now? The answer is that those enabling leaders were wrong; because the refugee distribution has ended up to be a cultural disaster for all of those countries. With civil unrest, crimes including massive rape increases plague these nations. All this disaster while footing the bills for people who do not want to integrate into those counties but rather to assimilate these host countries into their Muslim culture. All of the countries receiving refugees did was salt their population with infiltrators who will undermine their governments and destabilize their culture. It would be quite different if the refugees wished to integrate, becoming part of their hosts’ cultures. But they don’t.
We have seen our US culture erode over the last several years; people are divided, racism is surging and our economic recovery is poor. Without a doubt this is due to poor leadership. Moreover, that economic pain we are all feeling is capitalism dying.
So who do we have to pick from in this next election - Trump and Clinton? Clinton is easier to summarize because we have seen her in several roles over the last two decades. Her results have not been impressive. Trump is not as well-known with most of his dealings private and away from public scrutiny.
Trump is a rather coarse individual with rough edges who has been showing some improvement. He is successful in business. What both Democrats and nonsupporting Republicans have failed to recognize is that their actions for many years are what made him the popular candidate. People in both parties are tired of poor representation and politicians that serve primarily to enrich themselves.. Trump represents a departure from the sameness we have grown to disdain.
Even more bothersome are Republicans that do not acknowledge Trump's popularity. It is one thing not to like Trump or not to support him. It is a wholly different situation when these Republicans seek to undermine the majority's choice. Not respecting the will of the people is a fundamental flaw that will have long-term effects. These Republicans better learn quickly or they will lose the trust of their party members.
I decided to go see Trump at a speech in Florida. The experience was so much better in person without the “filtering” by the media. He was quite warming and aspired to “Make America Great Again”. He spoke on many topics I feel are of greatest importance. If you have read an earlier article I wrote covering the FBI Summit regarding IP Loss, the subject concerned safeguarding our economy. This is our #1 issue and the US economy continues to weaken. All other issues unrelated are side issues. Our country can have the most or best of anything – the largest Army, Navy, Air Force or nuclear weapons, but none of that matters if your economy goes – you are simply done!
Trump is dedicated to solving several key issues:
• Economic strength – bring manufacturing and jobs back to America
• Favorable Trade Deals – “We don’t win anymore”
• Combat Currency Manipulation (China) - Prevent the undermining of our products for export
• Illegal Immigration – A well-known topic but many fail to understand just how much this costs us by undermining our economy and direct funding
• Trade Deficit – This will fall in line with success in the above points and by reducing a bloated government.
Trump’s accomplishments include becoming a billionaire, surviving bankruptcy and starting a couple hundred businesses with only 4 bankruptcies, which is a pretty small percentage. Since he doesn’t run all those businesses himself he obviously knows how to pick people to run organizations.
I wanted to go see Hillary Clinton speak in my town but it cost $500 to attend and $1000 to have your picture taken with her. I declined. From her beginning effort as First Lady she failed at Healthcare Reform, remember? With her departure from the White House the first thing I remember was her stealing historical and priceless artifacts from the White House and then being forced to return them. As Senator she didn’t do much. Of the many bills she sponsored only three became law: the Kate Mullany National Historic Site Act, renaming a Post Office and renaming a highway – yeah, that’s it.
As Secretary of State – well, we have followed this more closely since then. Benghazi was a disaster. Her 11-hour hearing proved she lied about the nature of Ambassador Chris Stevens’ cause of death and she lied to the American public even though she knew it was a terrorist attack. It was all right there in the testimony her supporters refuse to read or learn.
The private email server issue - let's bypass the opinions and go directly to a comparison of Hillary's own statements with FBI Director James Comey.
From NBC News:
More on what the AP found out about Hillary Clinton's inconsistencies can be found here.
It goes without saying that anyone who has put the security of the United States at risk through this level of carelessness is unqualified to be President.
An unlit side note of Clinton's failure to keep important information secure is that in her last batch of released emails, it was discovered she had Ambassador Chris Stevens' schedule in an email on her personal server, thus exposing that information to unknowns and potentially hostile forces.
http://www.breitbart.com/national-security/2016/03/01/hillary-emails-betrayed-whereabouts-of-murdered-ambassador-chris-stevens/
This is the same personal server that a recently extradited Romanian hacker said he easily hacked into. This hacker was in a US jail waiting to be interviewed but turned up dead (in jail) just hours after Comey made his FBI announcement.
http://christiantimesnewspaper.com/breaking-romanian-hacker-with-access-to-clinton-emails-found-dead-in-jail-cell/
South Carolina Representative Trey Gowdy asked FBI Director James Comey some very direct questions proving many false statements by Hillary Clinton. The testimony may be found here.
How much more regular and inherent lying without remorse have to be demonstrated before it is considered pathological?
Enough? Well what can you do about it? You have to vote. You have to go out and solicit every vote you can, especially from young people who have less experience and enable older individuals who would find it difficult to get to the polls. We have to turn out in numbers because the future of America is at stake.
Good luck to everyone and America.
31 August 2016
Ransomware Data Threats Increases in 2015
In the earlier article, “The Quiet Threat to Industry and America” we learned just how severe Intellectual Property (IP) loss is worldwide and within the US. We know how devastating it is to our economy as well as how quickly it can undermine businesses and industry. No one can replace your hard earned sweat equity, research, proprietary and intellectual property. A corporation can be wiped out with effective hacks and data theft. Smart businesses and industry are changing from a reactionary model to proactive measures to ensure their future.
A new problem is growing all over the world – it is called Ransomware. The implications are quite startling. Basically, your computers and servers are infected with a sophisticated malware that encrypts the entire contents of your hard drives – all your data is locked. You or your business is denied use of your data until a ransom is paid – typically in Bitcoin internet currency. Ransom demands range from hundreds to tens of thousands. The ransom is bad enough but the real damages occur from disruption or paralysis of business.
The statistics for ransomware varies; however, it is all bad news showing dramatic increases in 2015 in hundreds of percent. AVAST security software, as an example, detected that over six weeks that their users encountered ransomware infected sites 18 million times. Rather than provide a multitude of statistics and references just search the term “Ransomware Statistics” and see for yourself.
These crimes fall under the jurisdiction of the FBI. They warned about ransomware early last year. If you are hacked, cyberattacked or experienced computer or hard drive theft the FBI is there to investigate. The ransomware class includes Cryptolocker, Cryptowall, Teslacrypt, CTB-Locker, Torrentlocker and Reveton with new similar versions being reported every day.
Ransomware can even reprogram the firmware in your hard drives (SSDs and HDDs). Once the drive is reprogrammed, the firmware can reload associated malware each time infected systems boot and the malware persists even if the drives are reformatted or the operating system is reinstalled. Once infected, security software can't detect the associated malware which is stored in a hidden area of the drive. This version makes ransomware almost impossible to detect and cure.
Changing Times
In the past federal agencies including the FBI have long urged people not to pay ransom to the criminals, as there is no guarantee that they will even receive an unlock key. The situation has now changed with the higher strength of ransomware. Just how strong are these tools? The FBI attended the 2015 Cyber Security Summit in Boston last October. Assistant Special Agent Joseph Bonavolonta, who oversees the FBI's Boston office, advised the companies infected with ransomware to better pay up the ransom!
"The ransomware is that good," said Bonavolonta. "To be honest, we often advise people just to pay the ransom."
Many IT and corporate professionals took offense or were startled by the remarks. However, examine the bigger picture. Paying is no guarantee but criminals have been showing some honesty in unlocking data after the ransom is paid. They know if they don’t give you the unlock key that word gets around and corporations will stop paying and their ploy will no longer make them money.
The FBI issued a notice in June, which identified CryptoWall as the most common form of ransomware affecting individuals and businesses in the US. The Bureau said it had received 992 complaints related to CryptoWall between April 2014 and June 2015 with losses totaling $18 million.
Bonavolonta also cautioned that the Bureau may not be able to pry encrypted data from the clutches of the ransomware authors, who use ultra-secure encryption algorithms to lock up ransomed data.
“The easiest thing may be to just pay the ransom”, Bonavolonta, who said that efforts by the Bureau and others to defeat the encryption used by the malware did not bear fruit. “The amount of money made by these criminals is enormous and that’s because the overwhelming majority of institutions just pay the ransom.”
The success of the ransomware ends up benefiting victims: because so many people pay, the malware authors are less inclined to wring excess profit out of any single victim, keeping ransoms low. And most ransomware scammers are good to their word, Bonavolonta said. “You do get your access back.”
The FBI still wants to hear about ransomware infections, even from firms that pay the criminals off. “Do we want you to call the FBI? Yes,” said Bonavolonta. The FBI has been collecting information on ransomware scams and wants to be able to keep abreast of how the scams are evolving.
What can you do to prevent ransomware from affecting you or your corporation?
There are many ways to prevent ransomware and data loss but it takes a proactive attitude and measures to prevent these infections. On the hardware side invest in good modern computers that feature “hotswap” data hard drives. Hotswapping allows the user to start and shut down a hard drive without turning off the computer. This allows the user to keep data isolated and invisible to the internet, hackers and viruses or malware.
Vault Computer is one company that builds in this feature. Vault Computers can be equipped with cloned drives that can replace an infected drives in just minutes; without high IT expense or downtime that loses work productivity. Offline data storage within the same computer can restore backed up data in minutes utilizing fast transfer speeds. The ability to hotswap and keep data isolated from problems or unwelcome exposure is the same method US Government security agencies use. Bad guys cannot infect or steal what they cannot see.
Vault Computer also uses hardware encryption to protect your data from theft and access by unauthorized personnel. The first and most obvious difference with an Vault Encrypted Computer is that there is no “foot in the door” with the new hardware encryption. The computer will not boot up without the proper key inserted. This means no user hack tools are possible - there is no back door. You can now control who uses the computer and who sees the data on it.
Moreover, if the computer is stolen or the encrypted hard drive is removed it will not reveal any data. No forensic techniques can be applied and your data is secure from unwanted investigation. The data is invisible, irretrievable, unbreakable and secure from unauthorized access – period.
Prevention and Smart Computer Use is Key to Avoid Ransomware
Other measures an individual or corporations may take to prevent ransomware or computer infections are worthwhile. Here are some examples:
• Always use Antivirus software and a firewall. Keep the antivirus updated.
• Install a Malware remover. Malwarebytes is popular.
• Use a popup blocker.
• Maintain frequent Backups. Keep Backups offline and invisible to the Internet.
• Be careful with emails and attachments. Call and verify attachments that are strange or unexpected.
• Corporate education programs – awareness training. Statistics indicate education training is very worthwhile.
• Enable automatic OS updates, or download OS updates regularly, to keep
operating systems patched against known vulnerabilities.
• Install patches from other software manufacturers as soon as they are
distributed.
• Only download software—especially free software—from sites you know and trust (malware can also come in downloadable games, file-sharing programs, and customized toolbars).
• Have strong passwords, and don’t use the same passwords for everything.
• Encrypt important data and hard drives.
Don’t wait until you lose data because it may be simply too late. Data theft and data ransom are on the rise. Don’t let these cripple your business. Good practices with proactive thinking and defenses are the key to protecting your valuable data and Intellectual Property.
30 August 2016
The Quiet Threat to Industry and America
America’s New National Security Issue
A serious epidemic of data loss is encroaching upon industry and business in the United States.
How serious is it?
The FBI states: “Business models have been compromised and critical innovation pipelines have been hijacked. Our economy and national security are under relentless attack. Economic security is America’s “new” national security issue.” https://summit.fbi.gov/about.html
The FBI held a special invitation only summit across the US at FBI offices and invited experts and companies offering solutions. In early July I was invited to attend the FBI National Intellectual Property Protection Summit on 15 September. I attended the summit with FBI agents at a secure aerospace contractor facility.
This article serves as part of my responsibility to help educate industry and the business community as outlined by the summit. Before the summit began I obtained a Criminal Justice Information System (CJIS) certificate to be able to view and work with sensitive classified data. Attendees were warned not to record the event and that some identifying information was considered restricted. The FBI Director, James Comey, greeted us and the summit ran for 3 hours with experts from across the US discussing IP loss and what business and industry can do to stop it. Speaker Bios can be found here.
Why did the FBI get involved and hold the summit? Business in the USA as a whole is not very healthy. According to the FBI we have been in cyber war since 2005 with attacking countries increasing transgressions on an exponential basis. Due to the increasing rate of data theft, the US cannot sustain a healthy economy for very long without our economic security being undermined. How much Intellectual Property is being lost?
According to the FBI, https://summit.fbi.gov , in 2014:
• $600 Billion is the impact of intellectual property breaches on the global economy.
• $300 Billion of intellectual property breaches occur in the US alone!
• $6 Trillion is the calculated worth of intellectual property in the United States.
• 40 Million is the number of American jobs vulnerable to intellectual property theft.
$300 Billion was lost within the US in 2014 according to the summit dialog and 2015 is outpacing last year. The numbers are realistically on the low side for several reasons. Data loss is underreported by companies both public and private because:
1. The news hits the bottom line quickly.
2. Losing data undermines confidence.
3. It is embarrassing.
4. It is a new problem - Industry is unprepared and is reactive instead of proactive.
Let’s bring this home a little. Most of our readers are in the engineering, petrochemical business and related services. Attendees viewed a map of the US indicating major losses in millions of dollars to industry represented by a red dot for each loss. The entire eastern seaboard from the Mid-Atlantic States upward to Cape Cod was solid red. Naturally, I looked at my home in Florida and saw significant losses. Then I shifted my attention to my second home state of Texas having lived there three times. My eyes centered on Beaumont, Texas with 5 huge losses in 2014 totaling over $1.2 billion. The names of the corporations are restricted but everyone would recognize them. Houston, Texas was solid red like the northeastern US. I didn’t have time to total those even larger losses there for last year.
Recently the DoD defense contractor Leidos was awarded a $4.3 billion contract for data cyber security. This award size is unprecedented for data security and serves as an indicator of magnitude of data loss in the US. That contract is announced here.
How are losses calculated? Of those companies that report data loss the FBI sends in a team on a confidential basis to ascertain all aspects of the breach. They also work with accounting personnel to make estimates and projections to what the data theft costs the company.
Who is stealing data? You have a good idea if you watch the news regularly because you can’t miss the almost daily data loss reports. The primary offenders are China, Russia Military, Russia Industrial Espionage (organized crime), and North Korea. However, attacks are coming from a myriad of countries in Eastern Europe, the Middle East and Africa – so it seems everyone is getting into cybercrime, because it is a shortcut to profit.
Why are these countries and other criminals stealing IP data? This is a big question and I won’t pretend to know the entire answer. However, the motives of many attacks are clear; to hurt us economically and as a possible prelude to future aggression. This is one reason why the US government is requiring more data handling security from contractors performing their work. In the future, if you intend to do government work you will have to prove the working data is secured.
Setting this issue aside let’s look at another obvious reason for data theft. Thieves want to learn what you and your company knows. They want to bypass what it costs your corporation in time and money to obtain your intellectual property and operating knowledge. Stealing data, IP and the secrets of operating a business simply helps criminals start a business without the same costs.
FBI summary: “The tactics employed by bad actors are continually evolving, but their basic approach remains somewhat static: steal valuable intellectual property (IP), skip the costly R&D stage, systematically degrade their competitor’s business model, and then diminish their market share and the value of their research with predatory and/or destructive practices. The global marketplace features several nations relying on economic espionage as an integral part of their country’s business model.” - https://summit.fbi.gov/about.html
China, for example, is notorious at stealing company information. With the knowledge of how to start and run a business a cheaper labor source can undercut the heretofore competitive prices and thus steal market share.
Examine the far reaching economic damage of IP theft. Take an example of war; when a country bombs a factory to put it out of business to disrupt production. Eventually the factory is rebuilt, some workers are replaced and production resumes. When intellectual property and operating knowledge is stolen to set up a competing business at lower costs the “factory” or US business is displaced in the market and is shut down. The factory does not reopen, workers lose their jobs, they do not have money to spend and the tax base is reduced. Thus begins an economic decay in trickledown effect through our economy.
Simply examine the repeating history of what happens to countries with a weak or collapsing economy. If a country loses economic viability it is done. This is equally true of corporations on a smaller scale within US industry. Now you understand the awful and insidious scenario that the FBI wants to prevent by educating Government, Industry and Business to stop data loss.
What can you do? First, be proactive instead of reactive. Second, recognize it is a real and growing problem. Educate yourself how Data and IP Loss happens and how to prevent it. Third, implement a security plan and educate others in your organization. Take your responsibility by being a patriotic American and spread the word to other companies.
Information Technology (IT) personnel need to be involved in educating your company’s employees on the methods of data breach and ‘social engineering” used to fool them. Unfortunately, we are in a different world with different values. The fastest growing type of data theft is insider theft and unauthorized computer access. Your company may have spent millions in facility security and access but it is useless against inside theft.
Recognize the barriers to taking action. The idea that it “happens to other corporations” is based on the importance and profitability of your corporation in the marketplace, luck and time. You will have to spend some money. View your cyber and computer security technology as improvements in its proper framework; by comparing your investment to the cost of losing your intellectual property and operating data. Protect your future viability.
For more information you can visit www.thevaultpc.com on computer security. A downloadable Secure Data IP Plan for Government, Industry and Business is available on the ‘Secure Data Storage’ page here, and one for Healthcare and Insurance is on the ‘US Government, CJIS and HIPAA’ page here.
Losing Intellectual Property is bad but losing data that is subsequently used against you is far reaching and permanent. Once your company is hit - it is too late. Your company is part of America’s economic security and sustainable future. Do something about it.
For questions or additional information visit the ‘Contact Us’ page on the link here.
04 August 2016
ENGlobal Reports Second Quarter 2016 Results
HOUSTON, TX--(Marketwired - Aug 4, 2016) - ENGlobal, a leading provider of engineering and automation services, today announced results for the second quarter which ended June 25, 2016.
Revenue decreased $7.3 million to $13.8 million from $21.1 million, or a 34.7% decrease, for the three months ended June 25, 2016, as compared to the three months ended June 27, 2015. ENGlobal reported a net loss of $1.6 million for the second quarter of 2016, a decrease of $2.5 million compared to net income of $1.0 million reported for the prior year period. The net loss per diluted share was $0.06 for the second quarter just ended, compared to net income per diluted share of $0.03 for the second quarter of 2015.
Revenue decreased $26.5 million to $28.7 million from $44.2 million, or a 60.0% decrease, for the six months ended June 25, 2016, as compared to the six months ended June 27, 2015. ENGlobal reported a net loss of $2.4 million for the second quarter of 2016, a decrease of $4.0 million compared to net income of $1.6 million reported for the prior year period. The net loss per diluted share was $0.08 for the six months ended June 27, 2015 compared to net income per diluted share of $0.06 for the six months ended June 27, 2015.
In April 2015, the Company's Board of Directors authorized the repurchase of up to $2.0 million of the Company's common stock from time to time, based on prevailing market conditions. Through June 25, 2016, ENGlobal had repurchased approximately 499,344 shares of common stock for $0.5 million under this program. As of June 25, 2016, the remaining amount authorized for repurchase under this program was $1.5 million.
Management's Assessment
Mark Hess, ENGlobal's Chief Financial Officer stated: "We have been challenged by the significant decline in oil and gas prices and the resulting drop in our clients' activities. However, during the second and third quarters, the Company has taken significant specific steps to improve revenue generating opportunities, improve gross profit margins, and reduce administrative expenses. Benefits from these recently initiated measures should be realized in the quarters to come as we expect to move towards profitability."
Mr. Hess continued: "Although projects have been taking longer to be awarded, our backlog has increased from last year end and our pipeline is robust. Importantly, ENGlobal continues to generate positive cash flow. The Company's cash position increased from $7.8 million at the end of last year to $14.7 million as of June 25, 2016. We expect that our working capital will be adequate for ongoing operations."
William A. Coskey, P.E., Chairman and CEO of ENGlobal added: "Given our debt free balance sheet and diverse mix of business, ENGlobal remains well positioned to successfully navigate through the current industry environment. As stated before, ENGlobal has been using the current downturn to invest in our business through the addition of highly experienced project and business development professionals. As a direct result of these actions, the differentiated offerings under development have the potential to positively transform our business over time. We remain committed to realizing ENGlobal's full potential, and increasing shareholder value over the long term."
The following is a summary of the income statement for the three months and six months ended June 25, 2016 and June 27, 2015 can be found here:
The Company's Quarterly Report on Form 10-Q for the quarterly period ended June 25, 2016 is expected to be filed with the Securities and Exchange Commission reflecting these results by the end of the day today.
10 May 2016
ENGlobal Corporation First Quarter 2016 Results
HOUSTON, May 10, 2016 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of engineering and automation services, today announced first quarter results for 2016.
Revenue decreased $8.3 million to $14.8 million from $23.1 million, or a 35.9% decrease for the three months ended March 26, 2016, as compared to the three months ended March 28, 2015. ENGlobal reported a net loss of $0.7 million for the three months ended March 26, 2016, a decrease of $1.3 million from the net income of $0.6 for the three months ended March 28, 2015. The net loss per diluted share was $0.03 for the three months ended March 26, 2016 compared to net earnings per diluted share of $0.02 for the three months ended March 28, 2015.
In April 2015, the Company's Board of Directors authorized the repurchase of up to $2.0 million of the Company's common stock from time to time, based on prevailing market conditions. Through March 26, 2016, ENGlobal had repurchased approximately 322,588 shares of common stock for $0.3 million under this program. As of March 26, 2016, the remaining amount authorized for repurchase under this program was $1.7 million.
Management's Assessment
Mark Hess, ENGlobal's Chief Financial Officer stated: "As previously indicated, our year started slowly and was characterized by lower utilization of the Company's resources. However the positives are that the Company has observed an increase in proposal activity and a 37% increase in backlog during the first quarter, centered primarily on downstream and automation related projects. As work is being initiated on an increased level of backlog, utilization into the second quarter of 2016 has shown improvement."
Mr. Hess continued, "ENGlobal remains well positioned to successfully navigate through the current industry environment - namely we have maintained a substantial cash balance, had positive cash flow from operations and had no borrowings from our working capital line during the quarter. We are also active in considering both internal and external opportunities to grow the Company."
William A. Coskey, P.E., Chairman and CEO of ENGlobal added: "One ENGlobal response to the current environment has been to opportunistically invest in our business, primarily through the addition of highly experienced project and business development professionals as they become available. While there is obviously a short term cost to this strategy, the Company fully expects to benefit over the longer term through an expanded customer base, wider list of offerings and participation in new markets."
Mr. Coskey continued: "The early signs regarding the addition of key personnel are encouraging, based on positive trends in both proposal activity and backlog witnessed during the first quarter. In addition, we have coupled these longer term investments with several prudent short term steps to further reduce operating costs."
The following is a summary of the income statement for the three months ended March 26, 2016 and March 28, 2015 (in thousands):
| Three months ended March 26, 2016 | Three Months ended March 28, 2015 | |||||||||||
| Revenue | $ | 14,812 | $ | 23,102 | ||||||||
| Gross Profit | 1,673 | 4,122 | ||||||||||
| General & Administrative Expenses | 3,390 | 4,004 | ||||||||||
| Operating Income (Loss) | (1,717) | 118 | ||||||||||
| Net Income (Loss) | (749) | 623 | ||||||||||
| (in thousands) | Three months ended March 26, 2016 | Three Months ended March 28, 2015 | ||||||||||||||||||||||||||||||
| % of | Gross | Operating | % of | Gross | Operating | |||||||||||||||||||||||||||
| Total | Total | Profit | Profit | Total | Total | Profit | Profit | |||||||||||||||||||||||||
| Segment | Revenue | Revenue | Margin | Margin | Revenue | Revenue | Margin | Margin | ||||||||||||||||||||||||
| Engineering & Construction | $ | 8,527 | 57.6 | % | 7.4 | % | (1.6) | % | $ | 13,298 | 60.3 | % | 15.5 | % | 10.0 | % | ||||||||||||||||
| Automation | 6,285 | 42.4 | % | 16.5 | % | 4.7 | % | 9,804 | 39.7 | % | 21.1 | % | 13.9 | % | ||||||||||||||||||
| Consolidated | $ | 14,812 | 100.0 | % | 11.3 | % | (11.6) | % | 23,102 | 100.0 | % | 17.8 | % | 0.5 | % | |||||||||||||||||
| (in thousands) | As of March 26, 2016 | As of December 26, 2015 | ||||
| Cash | $ | 11,785 | $ | 7,806 | ||
| Working capital | 23,870 | 25,554 | ||||
| Credit facility balance | - | - | ||||
About ENGlobal
ENGlobal (Nasdaq:ENG) is a provider of engineering and automation services primarily to the energy sector throughout the United States and internationally. ENGlobal operates through two business segments: Automation and Engineering. ENGlobal's Automation segment provides services related to the design, fabrication and implementation of distributed control, instrumentation and process analytical systems. The Engineering segment provides consulting services for the development, management and execution of projects requiring professional engineering, construction management, and related support services. Within the Engineering segment, ENGlobal's Government Services group provides engineering, design, installation and operation and maintenance of various government, public sector and international facilities, and specializes in the turnkey installation and maintenance of automation and instrumentation systems for the U.S. Defense industry worldwide. Further information about the Company and its businesses is available at www.ENGlobal.com.
03 March 2016
ENGlobal 4Q and FY 2015 Report
ENGlobal Reports Fourth Quarter and Fiscal Year 2015 Results
HOUSTON, March 03, 2016 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of engineering and automation services, today announced earnings of $10.5 million and diluted earnings per share of $0.38 for the fiscal year ended December 26, 2015.
2015 Fiscal Year Highlights as compared to 2014 Fiscal Year results:
Revenue decreased to $79.6 million for the fiscal year ended December 26, 2015, or a 26.2% decrease from $107.9 million for the fiscal year ended December 27, 2014. ENGlobal reported net income of $10.5 million, or $0.38 per diluted share, for the fiscal year ended December 26, 2015, compared to net income of $6.0 million, or $0.22 per diluted share, for the prior year period. During the fiscal year ended December 26, 2015, the company incurred non-cash expenses for depreciation, amortization and stock compensation of $2.1 million as compared to $2.7 million for the comparable period in 2014.
In April 2015, the Company's Board of Directors authorized the repurchase of up to $2 million of the Company's common stock from time to time, based on prevailing market conditions. Through February 23, 2016, ENGlobal had repurchased 250,000 shares of common stock for $232 thousand under this program. As of February 23, 2016, the remaining amount authorized for repurchase under this program was $1.8 million.
Management's Assessment
Mark Hess, ENGlobal's Chief Financial Officer, said: "While 2015 was a challenging year due to the severe decline in oil prices and spending cuts in the energy industry, through our service agreements and aggressive project bidding we were able to maintain profitability and a positive future outlook. It is notable that the Company's recent positive performance has enabled us to release the valuation allowance on our deferred tax asset that has been in place since 2012."
Mr. Hess continued, "We maintained solid relationships with our financial partners, had a substantial cash balance throughout the year, and had no borrowings from our working capital lines during 2015. We enter this year well positioned to seek out both internal and external opportunities to grow our business."
William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal, added: "I would like to thank the outstanding men and women of ENGlobal for their hard work and dedication toward a successful 2015. We are fortunate as a company to primarily serve midstream and downstream clientele, who have ongoing areas of project activity. Thus far this year we have gotten off to a slow start utilizing our resources; however, awards of new business have been extremely strong. We are well positioned for the challenges ahead, and remain enthusiastic about the opportunities for our Company."
The following table illustrates the composition of the Company's revenue and profitability for its operations for the fiscal years ended December 26, 2015 and December 27, 2014. It can be found here:
HOUSTON, March 03, 2016 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of engineering and automation services, today announced earnings of $10.5 million and diluted earnings per share of $0.38 for the fiscal year ended December 26, 2015.
2015 Fiscal Year Highlights as compared to 2014 Fiscal Year results:
- Revenue of $79.6 million, a 26.2% decrease
- Gross profit margin of 20.4%, a decrease of 130 basis points
- Net income of $10.5 million, an increase from a net income of $6.0 million
- Earnings of $0.38 per diluted share, an increase from $0.22 per diluted share
Revenue decreased to $79.6 million for the fiscal year ended December 26, 2015, or a 26.2% decrease from $107.9 million for the fiscal year ended December 27, 2014. ENGlobal reported net income of $10.5 million, or $0.38 per diluted share, for the fiscal year ended December 26, 2015, compared to net income of $6.0 million, or $0.22 per diluted share, for the prior year period. During the fiscal year ended December 26, 2015, the company incurred non-cash expenses for depreciation, amortization and stock compensation of $2.1 million as compared to $2.7 million for the comparable period in 2014.
In April 2015, the Company's Board of Directors authorized the repurchase of up to $2 million of the Company's common stock from time to time, based on prevailing market conditions. Through February 23, 2016, ENGlobal had repurchased 250,000 shares of common stock for $232 thousand under this program. As of February 23, 2016, the remaining amount authorized for repurchase under this program was $1.8 million.
Management's Assessment
Mark Hess, ENGlobal's Chief Financial Officer, said: "While 2015 was a challenging year due to the severe decline in oil prices and spending cuts in the energy industry, through our service agreements and aggressive project bidding we were able to maintain profitability and a positive future outlook. It is notable that the Company's recent positive performance has enabled us to release the valuation allowance on our deferred tax asset that has been in place since 2012."
Mr. Hess continued, "We maintained solid relationships with our financial partners, had a substantial cash balance throughout the year, and had no borrowings from our working capital lines during 2015. We enter this year well positioned to seek out both internal and external opportunities to grow our business."
William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal, added: "I would like to thank the outstanding men and women of ENGlobal for their hard work and dedication toward a successful 2015. We are fortunate as a company to primarily serve midstream and downstream clientele, who have ongoing areas of project activity. Thus far this year we have gotten off to a slow start utilizing our resources; however, awards of new business have been extremely strong. We are well positioned for the challenges ahead, and remain enthusiastic about the opportunities for our Company."
The following table illustrates the composition of the Company's revenue and profitability for its operations for the fiscal years ended December 26, 2015 and December 27, 2014. It can be found here:
10 February 2016
Contract Award Supporting World Class Project
HOUSTON, Feb. 10, 2016 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ:ENG), a leading provider of automation and engineering services, today announced an award for the supply of process analytical systems to a world class U.S. Gulf Coast ethylene expansion project. The equipment includes critical components used to monitor compliance with mandated environmental regulations and provides analytical information supporting plant utilities and process controls. The project schedule requires staggered deliveries throughout the third and fourth quarters of 2016.
Year-to-date, the Company's Automation Segment has received awards in excess of $5MM. This level of success illustrates the Company's wide range of expertise in both engineering and fabrication, and in the key areas of process analytics, electrical power and control systems.
"Our ability to provide early technical input to the project development teams was a key element of our success," said William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "We work diligently with owners and contractors to ensure that process analytical equipment is value engineered for optimum performance. I would like to thank this important client for their confidence and applaud the respective project teams for their technical contributions."
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