ENGlobal Corporation: Awarded ~$5M Contract

ENGlobal Awarded Project from Utica East Ohio Midstream

 Houston, TX, July 23, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ: ENG), a leading provider of energy-related engineering and automation services, announced today that it has been awarded a project from Utica East Ohio Midstream LLC ("UEO"), to provide engineering and procurement support services at its Leesville cryogenic processing plant.  The value of the award to ENGlobal is approximately $5.0 million.

ENGlobal's scope consists of engineering and procurement support services for a control room, condensate stabilization unit, site grading, and design integration services for a 200 million standard cubic feet per day (MMSCFD) cryogenic unit.  The Company expects to begin work on the project immediately with project completion anticipated in the second quarter of 2014.

UEO is a joint venture between M3 Ohio Gathering LLC, Access Midstream Partners, L.P., and EV Energy Partners, L.P. and is one of the largest integrated midstream service complexes in eastern Ohio ("UEO Buckeye").  The UEO Buckeye complex currently includes 800 million cubic feet per day of natural gas processing and associated NGL fractionation, loading and terminal facilities.  The 200 million cubic feet per day Leesville facility is the second processing plant in UEO Buckeye complex, which will recover natural gas liquids (NGLs) in the liquids-rich Utica shale play, and has a design capacity of up to 600 million cubic feet per day.

"ENGlobal is pleased to be a part of building this major gas processing facility in the Utica shale development," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer. "Having been selected for both the engineering and procurement work, ENGlobal is able to provide a greater level of responsibility throughout the scope of the project.  We would like to thank UEO for their confidence in our capabilities."

ENGlobal Corporation: Sells Engineering and In-Plant Operations to Furmanite

ENGlobal Announces Agreement to Sell Its Gulf Coast Engineering and In-Plant Operations to Furmanite

HOUSTON, July 16, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, announced today that it has signed a definitive agreement under which ENGlobal's Gulf Coast engineering and in-plant operations will be sold to Furmanite America, Inc. ("FAI"), a subsidiary of Furmanite Corporation (NYSE:FRM). The total value of the transaction to ENGlobal is expected to be approximately $21.5 million, consisting primarily of cash at closing and a $3.5 million promissory note issued with a parent company guarantee.

ENGlobal's Gulf Coast engineering operations consist of its Beaumont, TX, Baton Rouge, LA, Lake Charles, LA, Deer Park, TX, and Freeport, TX offices, which primarily perform work for downstream clients across the region. The Company will retain its Engineering operations and the entirety of its Automation operations located in Houston, TX, Tulsa, OK, Mobile, AL, Denver, CO, and Chicago, IL, which primarily perform midstream and downstream related projects.

ENGlobal intends to use the net proceeds from this transaction to repay its outstanding debt. The transaction has been approved by the boards of directors for both companies, and is expected to close within 60 days, subject to lender approval and the completion of customary conditions. In addition, the companies have agreed to facilitate a smooth transition of corporate service functions and to support each company's business development efforts. Under terms of the agreement, approximately 900 employees will transfer from ENGlobal to Furmanite.

"The transaction with Furmanite, representing approximately half of our business, has stood out among all alternatives as making the most sense for our employees, clients and shareholders," said William A. Coskey, P.E., Founder, Chairman and Chief Executive Officer. "The ongoing ENGlobal operations will become strategically focused, well positioned for growth, and essentially free of bank debt. We will continue to build on the expertise of our heritage Engineering and Automation segments and also expect to target specific engineered solutions, utilizing both in-house and third party intellectual property."

Mr. Coskey continued, "We are pleased to announce that throughout our turnaround plan over the last year – and through Closing of this transaction, we will have reduced our debt and vendor obligations by approximately $50.0 million. The resulting revitalized Company with 500 employees will become the foundation from which to rebuild ENGlobal."

The Company expects that this transaction will substantially complete its review of strategic alternatives. In October 2012, ENGlobal announced its plan to explore strategic alternative options, which included raising capital, selling a portion of the Company's assets, and the possible sale or merger of ENGlobal, among other alternatives. Since that time, the Company discontinued its Electrical Services division and divested its Land/Right of Way and Midstream Inspection divisions.

Summer and Fall News and Events 2013

Rev 6.0

ENGlobal Announces Expansion of Its Department of Defense Contract

HOUSTON, Nov. 4, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, today announced that its wholly-owned subsidiary, ENGlobal Government Services, Inc. based in Tulsa, Oklahoma, has been awarded an additional delivery order on one of its existing multi-year contracts from the U.S. Department of Defense. The value of the award to ENGlobal from the Space and Naval Warfare Systems Center (SSC) Atlantic is estimated to be approximately $7.0 million.

As previously reported in July 2012, ENGlobal was 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 handling equipment (AFHE). Under the scope of the new delivery order, ENGlobal expects to perform engineering and design services to maintain, repair, and/or rebuild the fuel handling equipment of the Naval Supply Fleet Logistics Command Center in Pearl Harbor, Hawaii.

"We are successfully being awarded a steady mix of business, including this delivery order by the U.S. Department of Defense," said Mr. William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "The Company is focused on improving the profit mix of its operations and maintaining overhead discipline. We are excited about our growth potential after recent divestitures, together with select project opportunities. We believe this strategy, plus our strong financial condition, puts us in a good competitive position going forward."

Commentary and Notes: We will soon see the 3Q for ENG and how the above comments relate. This is a small but a positive contract addition.


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Furmanite Reports 3Q with a profit after Acquisition of ENGlobal Assets

Revenues for the three months ended September 30, 2013 were $99.5 million, an increase of $23.9 million, or 31.7%, over the $75.6 million reported for the three months ended September 30, 2012. Operating income for the three months ended September 30, 2013 was $4.4 million compared to an operating loss of $0.7 million for the three months ended September 30, 2012, an increase of $5.2 million. Net income for the 2013 third quarter was $2.1 million, or $0.06 per diluted share.

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ENGlobal Announces First Universal Master Control Station(TM) Installation Patent-Pending, Vendor-Independent Subsea Control System 

HOUSTON, Oct 15, 2013 (GLOBE NEWSWIRE via COMTEX) -- ENGlobal Corporation, a leading provider of energy-related engineering and automation services, announced today that its first patent-pending Universal Master Control Station(TM) (UMCS(TM)) has been successfully installed on an offshore platform in the Gulf of Mexico for a major international oil and gas company. The UMCS(TM) provides a standardized interface between industry available subsea production systems and topsides production facilities.

"We are pleased to reach this significant milestone and look forward to pending deployments of the UMCS(TM) technology," said William A. Coskey, P.E., ENGlobal's Chief Executive Officer. "ENGlobal intends to utilize the UMCS(TM) platform as the basis for further subsea controls integration projects, including hydraulic power and electrical systems. As a Subsea Controls Integrator (SCI), we offer added value to our customers by utilizing our execution skills to manage technically complex subsea projects."

The UMCS(TM) is a control station used primarily to monitor and control subsea production equipment, with features including:

-- Integration of multiple subsea equipment vendors within a single master control station;

-- Operable in new or existing subsea production/injection areas;

-- Scalable object-based programming software utilizing off-the-shelf commercial hardware;

-- Standardized interface to subsea communication units, distributed control systems, electrical power units, and hydraulic power units; and

-- Easily configurable operational graphics, security protection, interlocks, and shutdown sequences tailored via the UMCS Client Configuration Tool(TM).

As previously reported, the UMCS(TM) has been in development since 2006, with coordination between ENGlobal, its client and leading providers of subsea equipment and services. The Company acquired the subsea control system technology - and initiated its U.S. patent process - in 2010 in order to expand into the active offshore upstream market.


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To all the new Furmanite employees from ENGlobal. I wish all of you the best of luck and believe you are in good hands. Thanks for reading and I hope to post some positive trends for your company as they become available.

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Here is a labor lawsuit filed against ENGlobal:

http://englobalovertimecase.com/uploads/Doc._1_-_Complaint_ENGlobal.pdf

I am familiar with the attorney filing the suit. My advice is to question both sides of the case. Amplification is endemic in the legal world.

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8-K Filed 22-Jul-2013

Item 8.01 Other Events
Notice from The NASDAQ Listing Qualifications Department that ENGlobal Corporation has regained compliance with NASDAQ Marketplace Listing Rule 5550(a)(2)

As previously reported, on October 3, 2012, ENGlobal Corporation ("the Registrant") received a letter from The NASDAQ Listing Qualifications Department ("NASDAQ") notifying the Registrant that for the 30 consecutive trading days preceding the date of the letter, the bid price of the Registrant's common stock had closed below the $1.00 per share minimum required for continued inclusion on the NASDAQ Global Market pursuant to NASDAQ Marketplace Listing Rule 5450(a)(1), (the "October Letter").

On April 16, 2013, the NASDAQ approved the Registrant's application to list its common stock on the Capital Market and was granted an additional 180 calendar day period, or until September 30, 2013, to regain compliance.

On July 19, 2013, the Registrant received a letter from NASDAQ notifying the Registrant that since the closing bid price of the Registrant's common stock has been at $1.00 per share or greater for at least 10 consecutive days since the date of the October Letter, the Registrant has regained compliance with NASDAQ Marketplace Listing Rule 5550(a)(2) and NASDAQ now considers the matter closed.

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Judging by the way the stock has surged in volume on Thursday 7/11 and the price spiked to $1.54 I would say an announcement is forthcoming.

Looks like the news released today, 7/16, was a partial sale of ENG assets to Furmanite America. Opportunities will be present for all. Watch how the leaders react.

Good luck to everyone.

ENGlobal Corporation: 8K - Letters of Credit Filing

http://www.sec.gov/Archives/edgar/data/933738/000117184313002557/f8k_062013.htm


Item 8.01     Other Events


As previously reported, the Registrant’s lenders issued approximately $12.8 million in letters of credit to a client in July 2011 on the Company’s behalf to support its performance on an international Automation project (“Performance Letters of Credit”).  These Performance Letters of Credit were issued outside of the Registrant’s working capital facility with its current senior lender.


On June 17, 2013, its Performance Letters of Credit were allowed to expire.  The Registrant has proposed an alternative option to modify terms of future retention amounts to replace the Performance Letters of Credit, which is currently under consideration.


As a result, the Registrant expects its project-specific credit agreement will be terminated and approximately $7.1 million in collateral will be released to its senior lender.

Editor's Note: These Performance Letters of Credit were for the Caspian Sea Project. 

ENGlobal Corporation: 4Q and 1Q Comments

Rev. 1.1

The news has recently been quiet for ENGlobal and most everyone has been wondering what will happen next? The last credit facility expired on 30 April and we have had no news on that either. I would think some processes have already started and an event is waiting to happen.

Let’s review some of the last financial reports. For the 4Q and FY 2012 ENGlobal reported a loss from continuing operations of ($1.12). However, that wasn’t the end of the story. When you read the SEC filing the NET loss was ($1.25). An additional loss of (.13) came in from Discontinued Operations; this was a bullet point that didn’t make lead headlines.

This additional loss does not look unusual until you compare it to 1Q 2013. ENGlobal reported a profit of $.07/share. This number looked great until you see that they also reported a loss of $.04/share from Continuing Operations. Losing from Continuing Operations is bad and you are not going to get out of the hole performing like that.

In turn, this begs the question, why the profit in 1Q and what offset the loss from continuing operations? Looking into the SEC filing the answer was again Discontinued Operations (DO) but this time with a profit! So… why a loss from DO in 4Q 2012 and profit from DO in 1Q 2013? Should not the two DOs have occurred together and leveled at a ($.02) in 4Q? Those are good questions. CFO’s do have some flexibility and that is all that I can comment on as to why it happened, but one would have to think by the time they issued 4Q 2012 results they would also have known the profitable impact from the sale of DO.  Subsequently, where is the transparency and full-disclosure?  Must be a GAAP thing!

The salient issue, however, is the ongoing loss from continuing operations. This is a Black and Red issue that PNC or investment backers will not tolerate. Many months ago I proposed that ENG may be sold. Recently we saw a spike up in the stock. I think this may be an indicator of something happening. Be wise that this does not necessarily mean a sale or an associated price, however, a calculated possibility. There could be a myriad of possibilities including a stock swap. Did anyone notice that there has been no announcement of an Annual Meeting or the associated SEC filings? Logic would dictate not to expend money and energy on a moot scenario. Nevertheless, ENGlobal cannot continue to operate at loss.

Good luck to everyone.

ENGlobal Corporation: Recognized with Safety Awards

Houston, Texas, May 23, 2013 (GLOBE NEWSWIRE) -- ENGlobal (NASDAQ: ENG), a leading provider of energy-related engineering and automation services, announced today that it was awarded the following safety performance awards:

1.      "2012 Best of the Best Level of Achievement for Safety Excellence" at the 26th Annual Houston Business Roundtable (HBR) awards banquet held on May 17, 2013 in Galveston, Texas.  ENGlobal was nominated by a client for its OSHA Voluntary Protection Program (VPP) performance at the facility. In addition, the event recognized many client owners that support this prestigious annual event.

2.      At the 3rd Annual 2012 Contractor Safety Forum on May 2, 2013 in The Woodlands, Texas, ENGlobal was awarded a "Safety Excellence Award," which recognizes contractor companies that have achieved outstanding safety performance.

3.      Finally, ENGlobal received the "2012 Star of Excellence" Award, which was presented during the 2013 Voluntary Protection Program (VPP) Conference in San Antonio, Texas on May 8, 2013.  The "Stars Program" level is awarded to worksites if certain safety metrics are at least 90 percent below the Bureau of Labor Statistics national industry averages.

"We are extremely pleased to receive these awards, which recognize ENGlobal for delivering exemplary safety performance within our onsite and offsite locations," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer.  "Our Health, Safety, and Environmental (HSE) department continues to prioritize health and safety in the workplace as well as at home.  I would like to recognize our employees company-wide for their hard work and congratulate each of them on winning these awards."

Editor's note: ENGlobal always did have a great safety record.

ENGlobal Corporation: 1Q 2013 Report

ENGlobal Reports First Quarter 2013 Results

HOUSTON, May 14, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, announced today its financial results for the first quarter ended March 30, 2013.

First Quarter 2013 Highlights Compared to First Quarter 2012:

$0.07 earnings per share, an increase from a loss per share of $0.01
Revenue of $49.8 million, a decrease of 15.9%
Gross profit margin as a percentage of revenue of 11.7%, an increase from 11.1%
Corporate SG&A decreased from $4.0 million to $3.4 million
ENGlobal reported net income of approximately $1.9 million, or $0.07 per share, and a net loss from continuing operations of approximately $1.0 million, or $0.04 per share for the quarter ended March 30, 2013.  This compares to a net loss of approximately $0.1 million, or $0.01 per share, and a net loss from continuing operations of approximately $0.9 million, or $0.03 per share, for the quarter ended March 31, 2012. First quarter 2013 revenues decreased to $49.8 million, 15.9% lower than the $59.2 million for the first quarter of fiscal year 2012, primarily due to lower engineering, procurement and construction (EPC) project revenues in the Engineering and Construction segment and the conclusion of several projects in the fabrication division of the Automation segment in 2012.

Although the Company's borrowings under our credit facility have been reduced, interest expense, fees, and consulting services associated with the credit facility were approximately $520,000 higher during the first quarter of 2013 when compared to the first quarter of 2012.

Management's Assessment

"We are pleased to see the anticipated financial impact of the strategic divesture of the land and inspection divisions in late 2012," said William A. Coskey, P.E., ENGlobal's Chairman and Chief Executive Officer. "We continue to evaluate alternatives for improving our financial condition and further paying down debt. Operationally, we are making good progress on increasing profit margins under both new and existing master service agreements.  It is important to note that we have been successful in landing several significant contracts from new clients in various geographical regions as well negotiating contract extensions from a number of long-term clients, which indicates the viability of our business development efforts."

Mark A. Hess, ENGlobal's Chief Financial Officer, added, "We have been focused on our core engineering and automation businesses since the first of the year, greatly reducing exposure to EPC projects. As of March 30, 2013, project backlog was approximately $205 million, which was roughly unchanged from December 29, 2012. During the first quarter, we produced cash from operations that was used to pay down our credit facility."

The Company's gross profit margin as a percentage of revenue increased to 11.7% in the three months ended March 30, 2013 as compared to 11.1% for the three months ended March 31, 2012. The primary reason for this increase is reduced variable costs and improved efficiencies in the

Automation segment.

Overall, selling, general and administrative ("SG&A") expenses decreased $0.9 million, or 12.8%, from $7.1 million in the three months ended March 31, 2012 to $6.2 million for the three months ended March 30, 2013. As a percentage of revenue, SG&A increased to 12.6% for the three months ended March 30, 2013, from 12.0% for the comparable period in 2012.

The amount outstanding on the credit facility was $20.2 million at March 30, 2013, $26.8 million at December 29, 2012, and $19.4 million at May 13, 2013.  As previously announced, the Company entered into the Second Amendment to Revolving Credit and Security Agreement, Waiver and Forbearance Extension on December 18, 2012. Under the terms of the Amendment, the maximum revolving amount was reduced from $35.0 million beginning on February 1, 2013 as follows: $31.5 million for the period from February 1, 2013 through and including April 29, 2013, and $26.5 million for the period from April 30, 2013 through and including the last day of the term, which is presently May 29, 2015.

The Company is currently in default under the terms of the credit facility with its senior lender and the Second Amendment to the Forbearance Agreement expired on April 30, 2013. However, the lender has not taken any action with respect to the Company's defaults and the Company continues to actively discuss with the lender the terms under which such defaults may be cured or waived.

By following the link you can get the table illustrates the composition of the Company's revenue and profitability for the three months ended March 30, 2013 and March 31, 2012, respectively:

http://www.englobal.com/profiles/investor/ResLibraryView.asp?ResLibraryID=62684&BzID=702&Nav=0&LangID=1&s=0&Category=64