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.
