ENGlobal Reports First Quarter 2019 Results
HOUSTON, May 13, 2019 (GLOBE NEWSWIRE) -- ENGlobalCorporation,
a leading provider of engineered modular solutions, today announced
results for the first quarter ended March 30, 2019.
The
company reported a net loss of $1.0 million, or $0.04 per diluted
share, for the first quarter just ended compared to a net loss of $1.2
million, or $0.04 per diluted share, for the first quarter of 2018.
Management's Assessment
Mark
Hess, ENGlobal's Chief Financial Officer, said: "Operating results have
improved modestly with reduced losses on both a year-over-year and
sequential quarterly basis. Much of this improvement can be attributed
to management's attention to fixed overhead expense, which is
approximately 10% lower than during the first quarter of last year,
notwithstanding additions of key overhead personnel to support strategic
initiatives."
Mr. Hess continued: "It is also
important to note that our operations produced cash of $1.2 million
during the most recent quarter, which ended with a cash balance of
approximately $7.3 million."
William Coskey, P.E.,
Chairman and Chief Executive Officer, said: "We are encouraged by
ENGlobal's new business opportunities and current high level of proposal
activity. Our booked backlog was approximately $30 million at the end
of the first quarter. Year-to-date through April 30, 2019, ENGlobal had
submitted new proposals totaling $102 million, with $90 million of these
proposals outstanding and awaiting a customer decision. The company's
win rate has improved significantly this year, due primarily to our
estimating and proposal organization that was strengthened in the fourth
quarter of 2018."
Mr. Coskey continued: "While
ENGlobal has not yet achieved consistent profitability primarily due to
lack of scale, we remain a debt free company and are continuing to
evaluate strategic opportunities aimed at increasing shareholder value."
ENGlobal
also announced it has been engaged to perform various levels of work on
three separate natural gas liquids facilities that are planned for
Texas and Louisiana. The company has received a Limited Notice to
Proceed on early engineering activities for an LPG Export Terminal, as
this work is deemed critical in meeting the scheduled on-stream date in
the first half of 2021. This export terminal will include refrigeration
and storage for propane, butane and iso-butane products for loading on
VLGC ships for international transport. Additionally, the company is
performing an early FEED study for a second propane/butane export
facility, as well as a remote tank farm facility with storage and
ancillary equipment for the same products. For commercial reasons, the
dollar values of these current engineering awards and potential
extensions are not being disclosed.
TABLES
The following is a summary of the income statement for the three months ended March 30, 2019 and March 31, 2018:| (amounts in thousands) | Three months ended March 30, 2019 | Three months ended March 31, 2018 | |||||
| Revenue | $ | 12,163 | $ | 13,188 | |||
| Gross Profit | 1,338 | 1,413 | |||||
| General & Administrative Expenses | 2,304 | 2,582 | |||||
| Operating Loss | (966 | ) | (1,169 | ) | |||
| Net loss | (974 | ) | (1,200 | ) | |||
The following table presents certain balance sheet items as of March 30, 2019 and December 29, 2018:
| (amounts in thousands) | As of March 30, 2019 | As of December 29, 2018 | ||
| Cash | $ | 7,297 | $ | 6,060 |
| Working capital | 12,337 | 13,725 | ||
The
following table illustrates the composition of the Company's revenue
and profitability for its operations for the three months ended March
30, 2019 and March 31, 2018:
| Three months ended | Three months ended | ||||||||||||||||
| (amounts in thousands) | March 30, 2019 | March 31, 2018 | |||||||||||||||
| Segment | Total Revenue | % of Total Revenue | Gross Profit Margin | Operating Profit (Loss) Margin | Total Revenue | % of Total Revenue | Gross Profit Margin | Operating Profit (Loss) Margin | |||||||||
| Engineering & Construction | $ | 5,633 | 46.3 | % | 11.9 | % | 1.5 | % | $ | 5,095 | 38.6 | % | 8.2 | % | (0.2 | )% | |
| Automation | 6,530 | 53.7 | % | 10.2 | % | 3.7 | % | 8,093 | 61.4 | % | 12.3 | % | 3.6 | % | |||
| Consolidated | $ | 12,163 | 100.0 | % | 11.0 | % | (7.9 | )% | $ | 13,188 | 100.0 | % | 10.7 | % | (8.9 | )% | |
The Company's Quarterly Report on Form 10-Q for the first quarter ended March 30, 2019 is expected to be filed with the Securities and Exchange Commission today reflecting these results by the end of the day on Monday, May 13, 2019.
For additional information on ENGlobal's Q1 2019 performance, please refer to its Form 10-Q filing on the company website, or at sec.gov.
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