21 March 2017
ENGlobal Wins Modular Environmental Project
HOUSTON, TX--(Marketwired - Mar 21, 2017) - ENGlobal, a leading provider of engineering and automation services, today announced that it was awarded an environmental project valued at over $1 million, with the potential to expand to a larger scope. Located in the Southeast U.S, this environmentally driven installation will provide cleaner air and enhanced plant operability, while significantly benefitting from ENGlobal's accelerated schedule.
This award highlights the Company's integrated approach for providing engineered modular solutions utilizing its heritage professional skills together with its more recently formed fabrication capability. Execution of this important project will involve multiple ENGlobal capabilities, including engineering, automation, procurement and fabrication, for the key elements of an industrial recycling facility.
"We believe that our vertically integrated approach to project delivery will continue to benefit our targeted markets," said William A. Coskey, P.E., CEO of ENGlobal. "We are delighted to be selected as a critical partner for this environmental project."
09 March 2017
ENGlobal 4Q and FY 2016 Results
ENGlobal Reports Fourth Quarter and Fiscal Year 2016 Results
HOUSTON, TX--(Marketwired - Mar 9, 2017) - ENGlobal, a leading provider of engineering and automation services, today announced a net loss of $2.3 million and a diluted loss per share of $0.08 for the fiscal year ended December 31, 2016.
2016 Fiscal Year results as compared to 2015 Fiscal Year results:
Revenue decreased to $59.2 million for the fiscal year ended December 31, 2016, or a 25.6% decrease, from $79.6 million for the fiscal year ended December 26, 2015. ENGlobal reported a net loss of $2.3 million, or $0.08 per diluted share, for the fiscal year ended December 31, 2016, compared to net income of $10.5 million, or $0.38 per diluted share, for the prior year period. During the fiscal year ended December 31, 2016, the Company incurred non-cash expenses for depreciation, amortization and stock compensation of $1.6 million as compared to $2.0 million for the comparable period in 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 February 28, 2017, ENGlobal has repurchased and retired 1,127,894 shares of common stock at a total cost of $1,407,106 under this program and the remaining amount authorized for repurchase under this program was $592,894.
Management's Assessment
Mark Hess, ENGlobal's Chief Financial Officer, said: "2016 was a challenging year for ENGlobal. With client spending on a decline, it was difficult to keep our work force utilized, which put downward pressure on our gross profit margins. During 2016, we trimmed our SG&A expenses over $1.8 million by streamlining our business processes, reducing our reliance on outside services and reducing our capital spending. This reduction was somewhat offset by the investments we made in people, equipment and facilities to support our modularized solutions initiative resulting in a net reduction in SG&A of $0.8 million from last year. While we realize our SG&A level is higher than it could be for a company our size, we have maintained our current overhead structure in anticipation of higher volumes."
Mr. Hess continued, "During 2016 we were able to bill and collect a significant portion of the retainage on the large project we are working on in Kazakhstan and Russia, which helped increase our cash position at the end of the year to $15.7 million. We expect to redeploy the majority of these funds in the execution of anticipated projects in the coming year."
William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal, said: "After several years of turning the business around and basically 'hunkering down' in a tough environment, I believe ENGlobal is now better positioned than at any time in its history. We're excited about the opportunity to engage in larger scopes of work which is now made possible as a result of our modular project delivery initiative. Throughout our Company, we've been making the necessary investments in key personnel and facilities in support of our business and our clients are responding positively. We're seeing more and larger opportunities as a result of our strengthened set of project capabilities. In summary, our team is excited about the strategy and I believe we have an excellent opportunity for renewed growth and improved results in the future."
The following table illustrates the composition of the Company's revenue and profitability for its operations for the fiscal years ended December 31, 2016 and December 26, 2015:
The following table
illustrates the composition of the Company's revenue and profitability
for its operations for the three months ended December 31, 2016 and
December 26, 2015:
The following is a
summary of the Company's income statement for the last four quarters
which may be helpful in analyzing our ongoing business:
The following table presents certain balance sheet items as of December 31, 2016 and December 26, 2015:
The Company's Annual
Report on Form 10-K for the year ended December 31, 2016 is expected to
be filed with the Securities and Exchange Commission today reflecting
these results.
HOUSTON, TX--(Marketwired - Mar 9, 2017) - ENGlobal, a leading provider of engineering and automation services, today announced a net loss of $2.3 million and a diluted loss per share of $0.08 for the fiscal year ended December 31, 2016.
2016 Fiscal Year results as compared to 2015 Fiscal Year results:
Revenue decreased to $59.2 million for the fiscal year ended December 31, 2016, or a 25.6% decrease, from $79.6 million for the fiscal year ended December 26, 2015. ENGlobal reported a net loss of $2.3 million, or $0.08 per diluted share, for the fiscal year ended December 31, 2016, compared to net income of $10.5 million, or $0.38 per diluted share, for the prior year period. During the fiscal year ended December 31, 2016, the Company incurred non-cash expenses for depreciation, amortization and stock compensation of $1.6 million as compared to $2.0 million for the comparable period in 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 February 28, 2017, ENGlobal has repurchased and retired 1,127,894 shares of common stock at a total cost of $1,407,106 under this program and the remaining amount authorized for repurchase under this program was $592,894.
Management's Assessment
Mark Hess, ENGlobal's Chief Financial Officer, said: "2016 was a challenging year for ENGlobal. With client spending on a decline, it was difficult to keep our work force utilized, which put downward pressure on our gross profit margins. During 2016, we trimmed our SG&A expenses over $1.8 million by streamlining our business processes, reducing our reliance on outside services and reducing our capital spending. This reduction was somewhat offset by the investments we made in people, equipment and facilities to support our modularized solutions initiative resulting in a net reduction in SG&A of $0.8 million from last year. While we realize our SG&A level is higher than it could be for a company our size, we have maintained our current overhead structure in anticipation of higher volumes."
Mr. Hess continued, "During 2016 we were able to bill and collect a significant portion of the retainage on the large project we are working on in Kazakhstan and Russia, which helped increase our cash position at the end of the year to $15.7 million. We expect to redeploy the majority of these funds in the execution of anticipated projects in the coming year."
William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal, said: "After several years of turning the business around and basically 'hunkering down' in a tough environment, I believe ENGlobal is now better positioned than at any time in its history. We're excited about the opportunity to engage in larger scopes of work which is now made possible as a result of our modular project delivery initiative. Throughout our Company, we've been making the necessary investments in key personnel and facilities in support of our business and our clients are responding positively. We're seeing more and larger opportunities as a result of our strengthened set of project capabilities. In summary, our team is excited about the strategy and I believe we have an excellent opportunity for renewed growth and improved results in the future."
The following table illustrates the composition of the Company's revenue and profitability for its operations for the fiscal years ended December 31, 2016 and December 26, 2015:
| Year Ended | Year Ended | ||||||||||||||||
| (amounts in thousands) | December 31, 2016 | December 26, 2015 | |||||||||||||||
| Segment | Total Revenue | % of Total Revenue | Gross Profit Margin | Operating Profit Margin | Total Revenue | % of Total Revenue | Gross Profit Margin | Operating Profit Margin | |||||||||
| Engineering & Construction | $ | 33,266 | 56.2% | 12.1% | 2.2% | $ | 49,277 | 61.9% | 14.1% | 8.6% | |||||||
| Automation | 25,958 | 43.8% | 23.5% | 12.6% | 30,328 | 38.1% | 30.7% | 22.5% | |||||||||
| Consolidated | $ | 59,224 | 100.0% | 17.1% | (5.5)% | $ | 79,605 | 100.0% | 20.4% | 2.6% | |||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||
| (amounts in thousands) | December 31, 2016 | December 26, 2015 | |||||||||||||||
| Segment | Total Revenue | % of Total Revenue | Gross Profit Margin | Operating Profit Margin | Total Revenue | % of Total Revenue | Gross Profit Margin | Operating Profit Margin | |||||||||
| Engineering & Construction | $ | 8,266 | 56.6% | 13.7% | 3.5% | $ | 11,103 | 64.4% | 10.0% | 4.4% | |||||||
| Automation | 6,336 | 43.4% | 24.8% | 15.1% | 6,137 | 35.6% | 43.2% | 33.4% | |||||||||
| Consolidated | 14,602 | 100.0% | 18.5% | (3.0)% | 17,240 | 100.0% | 21.8% | 2.9% | |||||||||
| (amounts in thousands) | 2016 | Fiscal Year | ||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | 2016 | ||||||||||||||||
| Revenue | $ | 14,812 | $ | 13,842 | $ | 15,968 | $ | 14,602 | $ | 59,224 | ||||||||||
| Gross Profit | 1,673 | 1,853 | 3,881 | 2,705 | 10,112 | |||||||||||||||
| Gross Profit Margin | 11.3 | % | 13.4 | % | 24.3 | % | 18.5 | % | 17.1 | % | ||||||||||
| General & Administrative Expenses | 3,390 | 3,313 | 3,511 | 3,136 | 13,350 | |||||||||||||||
| Operating Income (Loss) | (1,717 | ) | (1,460 | ) | 370 | (431 | ) | (3,238 | ) | |||||||||||
| Net Income (Loss) | (749 | ) | (1,603 | ) | 489 | (479 | ) | (2,342 | ) | |||||||||||
| (amounts in thousands) | As of December 31, 2016 |
As of December 26, 2015 |
||||
| Cash | $ | 15,687 | $ | 7,806 | ||
| Working capital | 22,200 | 25,554 | ||||
| Credit facility balance | -- | -- | ||||
01 March 2017
ENGlobal Adds Modular Project Execution Capabilities
ENGlobal Adds Modular Project Execution Capabilities
HOUSTON, TX--(Marketwired - Mar 1, 2017) - ENGlobal, a leading provider of engineering and automation services, today announced its recently opened 31 acre mechanical fabrication facility located in Henderson, Texas. With this newly available resource, the Company has strengthened its vertical integration for the engineering and delivery of a wide array of modular process systems. Through this strategy, the Company intends to leverage its heritage engineering and project support capabilities in order to realize larger turnkey scopes of work on suitable projects.
ENGlobal will target projects for which significant value can accrue to clients through a modular, "shop built" delivery approach. Expected benefits include the cost effectiveness of shop fabrication versus field construction together with improved performance metrics in the areas of schedule, quality and safety.
The Company has identified the following market areas which will be initially targeted for modular delivery:
HOUSTON, TX--(Marketwired - Mar 1, 2017) - ENGlobal, a leading provider of engineering and automation services, today announced its recently opened 31 acre mechanical fabrication facility located in Henderson, Texas. With this newly available resource, the Company has strengthened its vertical integration for the engineering and delivery of a wide array of modular process systems. Through this strategy, the Company intends to leverage its heritage engineering and project support capabilities in order to realize larger turnkey scopes of work on suitable projects.
ENGlobal will target projects for which significant value can accrue to clients through a modular, "shop built" delivery approach. Expected benefits include the cost effectiveness of shop fabrication versus field construction together with improved performance metrics in the areas of schedule, quality and safety.
The Company has identified the following market areas which will be initially targeted for modular delivery:
- Upstream well site and area production systems
- Midstream metering and truck loading systems
- Downstream processing modules
- Environmental processing units
- Burner management systems
- Remote instrument and control buildings
- Electric power distribution centers
- On-line process analytical systems
- Industrial HVAC systems
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