Late Summer 2012 Stock News And Events

Rev 6.6

I Love The Smell Of Burned Pizza In The Morning - It Smells Like....Inevitability.

• Edd Pagano has resigned and Mr. Coskey picked up the loose reins. Well folks, that took some time to happen. See new post - ENGlobal CEO Resigns.
• The stock markets so far seem unimpressed. The price is virtually unaffected near the multi-year lows at ~ $1.45. The volume is up huge with big blocks trading.  Looks like no increase in confidence so far.
• 8/2 New 5-year low on ENG stock, $1.34 on 71K shares.
• 8/7 New 5-year intraday low on ENG stock, $1.26.Closed at $1.28 on 157K shares.
• 8/9  New 5-year intraday low on ENG stock, $1.16. Closed at $1.18 on 55K shares.
• 8/10  New 5-year intraday low on ENG stock, $1.0302. Closed at $1.12 on 114K shares. Market Cap is below liquidation value.
• 8/13 New 5-year intraday low and close on ENG stock, $1.01 on 192K shares.
• 8/13 1630 No announcements currently. I would think that if there were some hopeful news it would be before 2Q earnings. It maybe possible 2Q will be delayed but now we wait and see if it will be tomorrow as announced and what other possible news may accompany it.
• 8/13 NT 10Q Filed by ENGlobal - Earnings Delay.  PART III--NARRATIVE
  
  State below in reasonable detail why forms 10-K, 20-F, 11-K, 10-Q, 10-D, N-SAR, or the transition report or portion thereof, could not be filed within the prescribed time period.
  
  The Registrant’s management deemed additional time is necessary to ensure full, complete and accurate disclosure and to complete the financial statements required for inclusion within the Quarterly Report on Form 10-Q for the period ended June 30, 2012. We believe that the subject quarterly report will be available for filing on or before August 20, 2012.
• 8/14 New 5-year intraday low on ENG stock, $0.92. Closed at $0.97 on 123K shares.
• 8/15 New 5-year intraday low on ENG stock, $0.80. Closed at $0.87 on 92K shares
• 8/16 The stock rose today on heavy volume to $0.98. As stated above in the NT 10Q the report filing may occur on or before August 20, 2012.
• Friday should be an interesting day for the stock. Watch for the SEC filing from now until Monday: http://sec.gov/cgi-bin/browse-edgar?company=&match=&CIK=eng&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany
• Friday 8/17 The PR came out and made proper reference to the last set report date of 8/14 with the delayed date set on 8/20 "After Market Close". The Conference Call will be held the next day 8/21 at 1100 EDT. Should be interesting. Maybe some more PR issued then also.
• 8/21 New 5-year intraday low on ENG stock, $0.68. Closed at $0.79 on 1.2M shares.
• 8/22 New 5-year low close of .77 on 419K shares.
• 8/27 New 5-year low close of .73 on 104K shares.
• 8/31 New 5-year low close of .70 on 56K shares.
• 9/7 New 5-year intraday low on ENG stock, $0.65. New 5-year close at $0.69 on 246K shares. 

• HOUSTON, Aug. 1, 2012 /PRNewswire/ -- Express Energy Services, LLC (EES) today announces that John R. Beall has joined as Chief Financial Officer, effective July 5, 2012. Mr. Beall replaces Jim Davis, who is retiring from EES.  See "Appointments And Moves" for more information.

8/21 0753 EDT KeyBanc Downgrades ENGlobal Corporation (ENG) to Hold; Q2 Miss, Visibility Weak KeyBanc downgraded ENGlobal Corporation (NASDAQ: ENG) from Buy to Hold.

Analyst, Matt Tucker, said, "We are downgrading ENGlobal following its weaker-than-expected 2Q12 results, which have dampened our near to medium-term earnings outlook and have put the firm in violation of covenants under its new credit facility, generating some concerns around ENG's near-term liquidity. This follows several quarters of disappointing performance from ENG and adds to a series of events that have contributed to the uncertainty around the firm's direction, including recent credit issues that we believe impacted competitiveness in 1H12 (at least temporarily), the abrupt June 13 departure of its CFO (still without full-time replacement), and the unexpected August 1 departure of two-year CEO Edd Pagano, who was replaced by co-founder, Chairman and former CEO Bill Coskey."

 "...the unexpected August 1 departure of two-year CEO Edd Pagano" Don't read much, huh Matt?

KeyBanc lowers FY13 EPS estimate from $0.38 to $0.00.

Are you kidding me? What do you think they believe what conditions should constitute a Sell rating?

Opinion 8/10

Having thought about the situation ENGlobal is in for some time I think the most likely outcome and smart transition for ENGlobal is a merger/buyout of some type. Why? It is the best outcome for everyone. If the BOD lets this company go bankrupt what risk does that pose for them given the total loss for investors (the stock would be cancelled) and catastrophic blow to thousands of employees? This would be the poster child for reckless management for sure and lawyers to the SEC would agree.

To avoid all this, a merger/buyout is the best option. Most certainly they have been approached and received offers. Who would buy? A good question, however, ENG is not without value, there are assets, AR, contracts, backlog and loyal employees. I think large companies may find something imbedded within ENG that would interest them and there are a lot of large companies. Smaller local companies like Burrow Global or RDS are the major local players. BG would be eliminated purely on their competent, quick gentleman’s success story and prehistory. That leaves also successful and larger RDS along with a multitude of even larger players and with possible capitol investor groups.

The real problem I think happening within ENGlobal is cash and loss of personnel. Not paying vendors is problematic and costs trust and time. Not paying employees – well, they walk and this erodes ability to make money. Employees are the real long-term value in a company. Another scenario threat would have desperate people doing desperate things and not operating ethically with the highest integrity, without exception.  Managing in the face of crisis requires courage from the leadership.  Does ENG management, and the BOD, have it? Time for them to demonstrate such virtues may have gone by or at best is running out quickly.

I think there is a real race going on now to hold things together by the clock ticking with PNC using their power in some fashion, keeping employees paid, and getting a deal done with a company or capitol group to transition the company.  When may this be announced? This could occur Friday 8/10 after the close until Tuesday; before the 2Q announcement. That surely would render bad news moot by degree or level of transition. If this does not happen expect more stock volatility and anxiety from uncertainty - people do not do well with uncertainty, especially when they have a great deal at stake.

The prospect of ENGlobal continuing otherwise is not likely unless downsizing to core profitable services occurs. Additionally, a change in management style to one that is "hands-on" and active in a recession would be necessary. It is a “survival of the fittest” business environment.

ENGlobal SEC Filing 8/7/2012

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 3, 2012, Michael G. Bryant advised the Registrant of his resignation as Executive Vice President – Field Solutions for personal reasons effective immediately.  Mr. Bryant has served as Executive Vice President of Field Solutions since November 2011.  David Sinclair will replace Mr. Bryant.

David Sinclair, 54, has served as the Registrant’s Senior Vice President of its Field Solutions segment in November 2011.  From 2001 to November 2011, he served as the Vice President of Land in the Field Solutions segment for the Registrant and a predecessor company.  Mr. Sinclair brings over 30 years of experience in both domestic and international assignments for the pipeline industry. Prior to joining the Registrant, he spent 16 years at Enron as the Director of Right of Way and as an independent land consultant.  He is presently a Trustee and former President of the Right of Way International Education Foundation, an IRWA course facilitator, Past Chairman of the IRWA Pipeline Committee, Past President of IRWA Chapter 8, and a Past Chairman of the Southern Gas Association’s (SGA) Right of Way Roundtable. Mr. Sinclair holds a Bachelor of Business Administration from Texas Tech University.

Opinion

"Another one bites the dust"  Great as a song - bad as status quo for any company. This was revealed earlier on this website in an earlier comment on ENGlobal CEO Resigns.

David Sinclair who will take over the duties brings good experience to the job. Do not make the mistake of thinking that his working for Enron is a detriment, it isn't, it was good professional experience added to his career. I have had lunch with David in the past and have spoken with him several times at ENGlobal. I mentioned him within the past Annual Meeting posts that I made on the message boards. He is rock solid and a good man for the job.

2Q 2012 Predictions And "What Ifs"

I have been getting a lot of questions for an opinion on ENGlobal’s forthcoming 2Q financial results. This is a good opportunity to examine the Profit or No Profit scenarios and the “What If” permutations.

What if ENGlobal makes a Profit?

That could mean more “Pagano” for everyone, extra cheese and free delivery...enjoy.

How many of you think ENGlobal will make a profit? I don’t!  Please leave comments and reasons to why you think they will make a profit.  That’s it for this section.

What if ENGlobal makes No Profit?

I want to say outright I hope ENG makes some clean profit.  However, I do not think ENG will make a profit based on their past results, especially 1Q.  As illustrated in previous postings, reported financial results, conference call comments and SEC filings the numbers looked to be potentially embellished in 1Q for reasons I will leave up to readers.  Despite numbers that do not meet the smell test the 1Q results were still a loss. With just basic logic I think continuing operations (the true operational value without affect of questionable numbers) will be a severe loss.  Without further help from these questionable numbers or errors 2Q may be a real horror show.  If you have followed ENG you know traditionally 2Q has been one of the strongest financial reporting periods for the company.

At this stage in the game, 3+ years of losses, how do you think investors, employees and public opinion will think of the CEO and BOD?  The factors of fiduciary responsibility, competence, denial and ego have reached epic proportions and are in question.

I see several scenarios that could result from another “no profit” quarter…

First, if ENG is having difficulty paying bills while running out of money, the bank, PNC, will know this with the continuous reporting requirements ENG has to make to them.  The continuous reporting was done so PNC could simply monitor and control their investment (see the Credit Facility post) to hopefully prevent losses and increased investment risk. Remember the terms of the CF make current operations a near Chapter 13, Receivership, condition.  If PNC pulls the plug, I think ENG will partially or wholly cease to function while assets are sold to satisfy the CF. There was a clear equal statement of this featured in a previous post and SEC filing. At this point vendors, creditors and clients are dealing with the bank.  Chapter 11 may follow.

Second, ENG goes direct to Chapter 11.  No one at ENG takes responsibility and blames others for the “sudden” collapse. After a few weeks the determination will be that this blog caused it.

And a third possibility is that the BOD sees bad results or bank action coming and negotiates to sell part of or all of ENG to raise cash and prevent total loss.  At this time the BOD and upper management have to know the results for April and May, and with only 14 working days remaining until the 2Q report is filed and they should have an idea what it looks like for the last 90 days.  Even if they are successful in negotiating a sale there won’t be much saved this late in the decision game.  A White Knight scenario would seemingly be preposterous given the personality of the company unless it was preplanned.

I would say realistically you might see class action lawsuits or government investigations take place based on the strange numbers and calculations reported in past news releases, conference calls and SEC filings.  The stock may soon be below acceptable NASDAQ levels and when the time limit is reached (30 days) ENG will be notified, a SEC filing made and ENG will file for an extension to remain on the NASDAQ under probation status.  If they rise above $1 within the time requirement, they stay, if not – it will be to the small penny stock boards or back to the AMEX.

Other "What Ifs"…

What if DSO increases to 85 days?  First, that could depend on how it is calculated for 2Q.  It could also mean the struggle with the “order to cash process” of not getting bills out to clients and not collecting them in a timely manner continues.  Maybe operations should take over that function!

What if vendors and subcontractors are not getting paid?  Not paying vendors and sub-contractors could mean projects, shipments and work schedules may suffer, and that new government contract may be in jeopardy as well as that large international project.  These types of issues could have an impact on getting work completed, thus reducing revenues.

What if billable man-hours decline?  How can billable man-hours not decline when it appears the loss of management and staff to competitors continues?  Maybe bonuses could be paid to management to keep them around! Wouldn’t that be ironic! Have you heard or read about that recently, companies (our government/banks) not making money, not paying debts, and yet paying out bonuses?

What if manpower utilization increases? That could mean corporate and operational overhead staffing levels have been scaled back to coincide with a decline in manpower or it could mean billable man-hours have actually increased.  Either scenario would be good news. A combination of the two would be GREAT news.

What if the BOD suddenly awakened to the fact ENG may be in trouble and stepped-up with an action plan calling for one or all of the following:
·    New management;
·    A renewed emphasis on a “core” business;
·    The divestiture of “non-core” business operations for cash to allow for acquisitions or expansion supporting its “core” business;
·    A reduction, reorganization and centralization of overhead services to fit a new model;
·    Recognition that “customers” and “cash” are king;
·    Another reverse merger;
·    An equity partner;
·    A follow-on stock offering of 10,000,000 shares at $3.50 a share to reduce debt and provide working capital (yes this would dilute earnings, but WHAT earnings?); or
·     A 7-cent per share dividend beginning January 1st?

Conclusion

What if you were in charge for a day, what solutions or changes would you make?
It won’t be long until the earnings news will be out. Given the critical nature of what we have seen the sensible logic dictates the existing operational condition and same management practices cannot continue much longer. The credit facility and Bank simply will not let it or tolerate it, respectively. Some big event will happen and it will happen soon. There are a lot of great people working for ENGlobal, I wish you the best. Good luck to everyone.

Comments are welcome.

Early Summer 2012 Stock News And Events

Rev. 11.1

ENG Announces New Government Contract

Houston, July 5, 2012 (GLOBE NEWSWIRE) -- ENGlobal today announced that it is one of three firms that has been awarded a multiple award contract for the procurement of automated fuel handling equipment (AFHE) support services to the U.S. Military. If all options are exercised by the United States Navy, the cumulative value of these fixed-price contracts for the three firms is an estimated $215 million and, in that case, work could continue until June 2017.

ENGlobal is one of three firms awarded an indefinite-delivery/indefinite-quantity (ID/IQ), cost-plus-fixed-fee contract for technical and maintenance services for automated tank gauging and automated fuel service stations. The scope of the project includes development, design, engineering, fabrication, integration, installation, quality assurance, logistics, maintenance, life-cycle management and technical support for AFHE systems. Work will be performed at Department of Defense fuel facilities worldwide, and is expected to be completed by the second quarter 2013.

Space and Naval Warfare (SPAWAR) Systems Center Atlantic, in Charleston, South Carolina provides contracting activity administration services on behalf of multiple Department of Defense military departments. The U.S. Department of Defense announced this Navy contract award on June 14, 2012:

http://www.defense.gov/contracts/contract.aspx?contractid=4812

"ENGlobal has a proven track record of delivering exceptional service to SPAWAR since 2007," said Edward L. Pagano, ENGlobal's President and Chief Executive Officer. "This cumulative award for the three firms represents an increase of approximately $89 million over the 2007 award level of $126 million and, as validated by our performance, we will make every effort to increase ENGlobal's portion of the base contract funding."

Mr. Pagano continued. "Our Government Services division, based in Tulsa, Oklahoma, specializes in the turn-key installation and maintenance of automation and instrumentation systems for the U.S. defense industry worldwide. This award demonstrates that our technical capability for AFHE engineering support extends globally to keep Department of Defense fuel systems fully mission capable."

Opinion

“If all options are exercised by the United States Navy, the cumulative value of these fixed-price contracts for the three firms is an estimated $215 million and, in that case, work could continue until June 2017.” I understand the release has to be written this way but the key words are, “If all options are exercised…” and, “…work could continue until June 2017.” It is also unknown what percentage of the work ENGlobal will actually get.

“Work… is expected to be completed by the second quarter 2013” Huh? What work or phase of work is to be completed by 2Q 2013 when the potential for the contract is stated earlier to continue through 2017? Typo? Something is wrong in the details here.

Moreover, some other important information would be supportive of the apparent prime job profit feeling you get from this “Everything is OK” news release. So...I am not ready to pull up a log and join in on "Kumbaya" yet. Is this new contract replacing an older one phasing out or is this truly additional work? Are new people being hired for additional work and thus increasing billable hours? Where is the material increase? Without calculating, if this new work simply replaces backlog at the same normal governmental costs and profit parameters there is no increase in profit, only the security of sustaining income at or near the same level against the balance of the company’s other losses. Any such contribution will not come close to make up for the losses in other parts of the company. Is this good news? Yes. Will it improve ENG’s financial health? No, not without material change.


Stock News

On 27 June ENG stock hit a 5-year low. Bloomberg News featured ENGlobal and nine other stocks in a daily article titled, NASDAQ Stocks Posting Largest Volume Increases:

"ENGlobal Corp. : Approximately 569,900 shares changed hands, a 1,052.7 percent increase over its 65-day average volume. The shares fell $.06 or 4.1 percent to $1.41."

I had seen an 80K ($1.50) trade at 1001 that tallied in the volume correctly. A few hours later I noticed the volume tally had been reduced by the 80K trade. Knowing something was up traders watched more closely and saw the larger trade posting at 1524. That block traded at $1.39. It is end of quarter and witching - institutional window dressing probably has much to do with the trades.


ENGlobal Announces New Ship Channel Office and Expansions in Texas & Oklahoma

Company Signs Leases Totaling 27,887 square feet
Houston, TX, June 18, 2012 (GLOBE NEWSWIRE) -- ENGlobal (NASDAQ: ENG), a leading provider of energy-related project delivery solutions, today announced that it has finalized three leases totaling approximately 27,887 square feet for new offices in the Houston Ship Channel region and expansion of its Engineering and Construction operations in West Houston and Tulsa.

The new Ship Channel lease is located in Deer Park, Texas.  The office will support ENGlobal's Engineering and Construction segment and is ENGlobal's first location in the Houston Ship Channel.  The office will provide support to a $15 billion petrochemical market, the largest in the country.  Build-out of the office location is expected to be completed in the third quarter of 2012.

The expansions in West Houston and Tulsa total approximately 18,039 square feet of additional space.  The new Houston location is in the Westchase Business District and represents an expansion of an existing office.  ENGlobal's Tulsa office will expand the current operation within the CityPlex Towers.  Occupancy of the offices is expected to be completed in the second quarter of 2012.

"We are excited about these key infrastructure expansions as they will allow our Engineering & Construction segments to better serve existing and future clients of ENGlobal," said Edward L. Pagano, ENGlobal's President and Chief Executive Officer. "The new Ship Channel office is a direct response to client requests to bring our engineering resources closer to the end user and illustrates our growing commitment to clients in and around this prolific petrochemical region. Combined with the growth in Texas and Oklahoma, we are well positioned for anticipated demand growth for our Engineering & Construction services."

Opinion

It is always better to go where the work is. Increasing visibility is good and I agree with this move. One would think an announcement of specific related profits, new projects or increased backlog would have preceded an announcement of office expansions. However, going after the mentioned $15 billion petrochemical market seems like a good reason. The next step is execution. Now what about sales there and who is doing that? It would be good to hear some expanded dialog on that mentioned growth in TX and OK.


ENGlobal Announces Annual Meeting Results

Houston, TX, June 14 2012 (Globe Newswire) The formal business of the meeting included the election of the following directors to a one-year term:  William A. Coskey, P.E., Edward L. Pagano, David W. Gent, P.E., Randall B. Hale, and David C. Roussel. In addition, ENGlobal's stockholders approved an amendment to the ENGlobal 2009 Equity Incentive Plan to increase the number of shares of common stock reserved for issuance there under from 480,000 shares to 980,000 shares and ratified the appointment of Hein & Associates LLP as the independent auditors of ENGlobal for fiscal year 2012.

Approximately 93.6% of ENGlobal's total common stock outstanding was represented at the meeting, either in person or by proxy. Of those shares, approximately 98.4% were cast in favor of the election of the Company's directors, 80.8% were cast in favor of the approval of an amendment to the ENGlobal 2009 Equity Incentive Plan, and approximately 98.0% were cast in favor of the ratification of the appointment of Hein & Associates LLP. Upon conclusion of the formal business of the meeting, ENGlobal's President and CEO, Mr. Pagano, updated the stockholders on ENGlobal's current business outlook and strategies.

8K Analysis and Comments

The 8K filings reveal the BOD awarded themselves additional restricted stock for another banner year of their services. The CEO received 50,335 shares of restricted stock (a 120% increase over last year) for his contribution over the last 12 months. Each of the BOD received 33,557 shares, or a 38% increase over last year's award. If one was to go back and review all the statements of changes in beneficial ownership over the past 5 years they will see that most of the stock awards have been to the benefit of the BOD.

As to the CEO's oversight of accounting, if he spent more time growing beans rather than helping count them the company might be better off. That oversight seems to be Mr. Pagano’s comfort zone as indicated in recent news and maybe they could just get a new CEO and encourage his retreat back to that zone.

A CEO can best help a CFO by oversight of Operations to assure client projects are done on time, under budget with high quality and safety. That seems to be where ENG is failing the most even though there have been errors in reporting. The company's failure to produce profits puts a lot of pressure on how to report them! Two CFO resignations in one year should be a red flag for any investor.

By the way, Mark Hess left his former company on March 22, 2010 to pursue other opportunities "effective immediately". His boss, the CFO, left 2 months later. Not sure what Mark did from April of 2010 to July of 2011 when he came with ENG. When you take the macro view of all the senior and middle management moves and departures, it is a challenge to describe what is seen, it's like a box of hamsters.

The CEO comment about the support of the current accounting staff may have been to give recognition (deserved of not) to help keep them on board. It would be very difficult if a similar transition took place and other top-level accounting staffers were to walk as happened last year. I would think ENG may have a difficult time recruiting someone with required experience to come in and take over this mess, and if they do they may not be able to afford them.

Where does this all leave us? A poor performance from the CEO for a second year: Receives more stock with a raise in shares. A BOD just watching it all happen: Receives more stock with a raise in shares. It is like a ship hitting an iceberg - backing up and hitting it again. Then you give the deck crew raises.


ENGlobal CFO Resigns

The CFO has resigned effective immediately. So we’re back for the latest round of musical chairs in Mr. Pagano’s management team. Predictable? Yes. As you may recall in the previous report covering the DSO Calculation Discrepancy the very last sentence was, “When is management going to be held accountable?” When you read that I am sure all of you knew it meant upstream from the CFO.

The CFO "resignation" was easy to predict for several reasons. To begin, let’s cover the “Who”? Reason one, as noted in the Credit Facility Analysis (6 June 2012): “Did you notice who signed the [CF] agreement?  It was not the CFO as was past practice.  Is the CFO going somewhere?” With the foreshadowing we knew the CFO position was at risk then. The next question was when? Reason two, how about right before the Annual Meeting (in one day) so Mr. Pagano can tout that the problems of accounting, transparency and ethics have been solved with the departure of the latest scapegoat. I do not think ENGlobal suffered as much from Mr. Beall's inexperience but more from Mr. Pagano's misdirection of accounting. Now the obvious why? Reason three, as noted in the 1Q 2012 10Q Analysis, 18 May 2012, Mr. Pagano puts his survival ahead of ENGlobal’s survival for the reasons given within that post. He will find others to blame and continue to practice poor management with the perception that others are buying it. I am surprised that it isn’t “Bush’s Fault”.

Until a new CFO is found Mr. Pagano states, "I am confident that our existing financial team will continue to support ENGlobal in its renewed growth efforts." When anyone sees that growth effort please let me know. Moreover, let us be reminded what Mr. Pagano's growth target is from the 1Q 2012 news release and 16 May 2012 post: Mr. Pagano says, “I am personally committed to returning ENGlobal to a position of leadership among small, well-respected engineering firms with a focus on innovation, superior client services and profitable growth." I have never heard anyone refer to ENG desiring to be a SMALL company. What happened to the billion-dollar revenue target from previous management? If he wants to "return" to a position among small, well-respected firms, where is ENGlobal presently?

Responsibility Lies at the Top

The board of directors has ultimate responsibility for the company performance and management fiascoes. With that said let’s focus on the CEO and illuminate the second reason in the preceding paragraph. Notice from the release: “…the CFO duties will be assumed by the Company's Controller, Mark A. Hess, CPA, with oversight from Edward L. Pagano, President and Chief Executive Officer.  Prior to joining ENGlobal as Chief Executive Officer, Mr. Pagano served as Chief Financial Officer for a number of public and private engineering and construction companies.” Mr. Pagano served as CFO for a number of companies. This is supposed to give comfort? Did not Mr. Pagano have "oversight" on accounting before? If he is so good as a Financial Officer why was he with a “number of public and private engineering and construction companies” to begin with? When I was hiring executives and saw long pedigreed resumes I always wondered why they job hopped or had to job hop so much.

Next, let’s cover some recent history. Why do you think the former CFO, Bob Raiford, quit? Soon followed by the former Controller, Meredith Barnes and subsequently followed six top accountants? And then lately the AP accountant in Beaumont walked off the job? These people did not leave because they felt secure in their job practicing accounting as it was successfully done before Mr. Pagano arrived. In practice we have seen what Mr. Pagano’s management and accounting “skills” have amounted to - over two years of negative profit. The CEO is where the authority rests - So does the responsibility.


ENGlobal Receives Safety Award

On June 7th ENGlobal announced it received a National Safety Excellence Merit Award from the Associated Builders and Contractors (ABC). "ABC is proud to honor ENGlobal with a National Safety Excellence Award for demonstrating an extraordinary commitment to safety and outstanding safety performance," said Michael D. Bellaman, ABC President and Chief Executive Officer. ENGlobal has truly shown a dedication to becoming one of the leaders for the industry by striving to create the safest work environment possible for its employees."

I do think this is great that ENGlobal’s tradition of safety in the workplace continues. It started with IDS/ENG CEO Mr. Coskey who did establish a fantastic safety team and record. That tradition continued with ENG CEO Mr. Burrow. The record was near perfect even as Mr. Pagano took over as CEO. I understand that he added more safety people to the team. I wondered if adding more people and overhead was wise since there was no improvement to be made on a near perfect record with a dwindling workforce? Not knowing that answer is less important that the record continues and people are not injured.

"We are pleased to accept this award from the Associated Builders and Contractors," said ENGlobal's President and Chief Executive Officer, Edward L. Pagano. "Safety is an ENGlobal Core Value that empowers our employees to intervene when they observe an unsafe situation or behavior. We believe this award recognizes the hard work and safety excellence of our employees as well as our commitment to ENGlobal's ZERO IMPACT philosophy."

I hope that “ZERO IMPACT philosophy” isn’t the same one applied to earnings?



Comments are welcome.