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:
