ENGlobal Corporation First Quarter 2016 Results

    

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

The following table illustrates the composition of the Company's revenue and profitability for its operations 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
						% 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	%

The following table presents certain balance sheet items as of March 26, 2016 and December 26, 2015:

(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		-			-

The Company's Quarterly Report on Form 10-Q for the three months ended March 26, 2016 is expected to be filed with the Securities and Exchange Commission reflecting these results by the end of the day today.

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.

ENGlobal 4Q and FY 2015 Report

ENGlobal Reports Fourth Quarter and Fiscal Year 2015 Results
   
HOUSTON, March 03, 2016 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of engineering and automation services, today announced earnings of $10.5 million and diluted earnings per share of $0.38 for the fiscal year ended December 26, 2015.

2015 Fiscal Year Highlights as compared to 2014 Fiscal Year results:

• Revenue of $79.6 million, a 26.2% decrease
• Gross profit margin of 20.4%, a decrease of 130 basis points
• Net income of $10.5 million, an increase from a net income of $6.0 million
• Earnings of $0.38 per diluted share, an increase from $0.22 per diluted share

Revenue decreased to $79.6 million for the fiscal year ended December 26, 2015, or a 26.2% decrease from $107.9 million for the fiscal year ended December 27, 2014. ENGlobal reported net income of $10.5 million, or $0.38 per diluted share, for the fiscal year ended December 26, 2015, compared to net income of $6.0 million, or $0.22 per diluted share, for the prior year period. During the fiscal year ended December 26, 2015, the company incurred non-cash expenses for depreciation, amortization and stock compensation of $2.1 million as compared to $2.7 million for the comparable period in 2014.

In April 2015, the Company's Board of Directors authorized the repurchase of up to $2 million of the Company's common stock from time to time, based on prevailing market conditions.  Through February 23, 2016, ENGlobal had repurchased 250,000 shares of common stock for $232 thousand under this program.  As of February 23, 2016, the remaining amount authorized for repurchase under this program was $1.8 million.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "While 2015 was a challenging year due to the severe decline in oil prices and spending cuts in the energy industry, through our service agreements and aggressive project bidding we were able to maintain profitability and a positive future outlook.  It is notable that the Company's recent positive performance has enabled us to release the valuation allowance on our deferred tax asset that has been in place since 2012."

Mr. Hess continued, "We maintained solid relationships with our financial partners, had a substantial cash balance throughout the year, and had no borrowings from our working capital lines during 2015.  We enter this year well positioned to seek out both internal and external opportunities to grow our business."

William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal, added: "I would like to thank the outstanding men and women of ENGlobal for their hard work and dedication toward a successful 2015.  We are fortunate as a company to primarily serve midstream and downstream clientele, who have ongoing areas of project activity. Thus far this year we have gotten off to a slow start utilizing our resources; however, awards of new business have been extremely strong. We are well positioned for the challenges ahead, and remain enthusiastic about the opportunities for our Company."

The following table illustrates the composition of the Company's revenue and profitability for its operations for the fiscal years ended December 26, 2015 and December 27, 2014. It can be found here:

Contract Award Supporting World Class Project

HOUSTON, Feb. 10, 2016 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ:ENG), a leading provider of automation and engineering services, today announced an award for the supply of process analytical systems to a world class U.S. Gulf Coast ethylene expansion project. The equipment includes critical components used to monitor compliance with mandated environmental regulations and provides analytical information supporting plant utilities and process controls. The project schedule requires staggered deliveries throughout the third and fourth quarters of 2016.

Year-to-date, the Company's Automation Segment has received awards in excess of $5MM. This level of success illustrates the Company's wide range of expertise in both engineering and fabrication, and in the key areas of process analytics, electrical power and control systems.

"Our ability to provide early technical input to the project development teams was a key element of our success," said William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "We work diligently with owners and contractors to ensure that process analytical equipment is value engineered for optimum performance.  I would like to thank this important client for their confidence and applaud the respective project teams for their technical contributions."

ENGlobal Announces Project Awards

HOUSTON, Dec. 14, 2015 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of automation and engineering services, today announced its success in being awarded three new projects in late November with a combined value of approximately $6 million. This new work for the Company's Automation Segment serves to illustrate its wide range of expertise in both engineering and fabrication, and in the key areas of electrical power, control systems and process analytics. 

More specifically, ENGlobal has been selected by a major refining client in the Rocky Mountains to design, fabricate and supply a modular Power Distribution Center, which is needed to provide critical electrical switchgear for their operations.

The Company will also provide the full scope of controls engineering and systems equipment for a midstream energy master limited partnership. This work is integral to a new crude oil transportation and storage facility to be located on the Texas Gulf Coast.

Finally, ENGlobal has been selected as the designer and supplier of all online process analytical equipment for a new chemical production facility on the U.S. Gulf Coast. ENGlobal will deliver this equipment beginning in the second quarter of next year, with extended deliveries throughout the second half of 2016.

"Our past performance and ability to provide complete engineered solutions for our clients is a critical element for our success," said William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "I would like to thank these three important clients for their confidence and include a note of appreciation to our teams for their technical contributions."

ENGlobal Corporation 3Q 2015

    
ENGlobal Reports Third Quarter 2015 Results

HOUSTON, Nov. 6, 2015 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and automation services, today announced its financial results for the third quarter ended September 26, 2015.

HIGHLIGHTS OF CONTINUING OPERATIONS:

    Revenues of $18.2 million
    Gross profit margin of 20.7%
    Net income of $0.01 per diluted share

Revenues in the third quarter of 2015 were $18.2 million, a decrease of 32.4% from $26.9 million in the prior year period. ENGlobal reported net income of $0.3 million, or $0.01 per diluted share, for the quarter ended September 26, 2015, compared to net income of $1.8 million, or $0.07 per diluted share, for the quarter ended September 27, 2014. During the quarter ended September 26, 2015, the Company incurred non-cash expenses for depreciation, amortization and stock compensation of $0.5 million as compared to $0.7 million for the same period in 2014.

Net income for the nine months ended September 26, 2015 was $1.9 million as compared to $5.2 million for the nine months ended September 27, 2014. The company incurred non-cash expense for depreciation, amortization and stock compensation of $1.5 million as compared to $2.1 million for the same period in 2014.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "We are pleased to report another profitable quarter. ENGlobal's profit margins remain respectable given the current environment, and our available capital has improved over the last year. The Company continues to maintain a healthy balance sheet with an increasing cash balance and working capital, with no borrowings under our credit facility, all of which puts us in a good position to take advantage of external growth opportunities."

"One ENGlobal response to the current energy marketplace continues to be internally investing in our Business," said William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "It's an opportune time to be adding key personnel to our management team – focusing on proven individuals who bring years of experience and industry relationships. We are excited about the many opportunities which we expect to result from our on-going business development, as well as from key personnel who have joined our team in recent months."

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended September 26, 2015 and September 27, 2014, see tables here:

As you can see the profits are low but they are not negative. Margins remain high and there is overture for expansion and acquisitions. The economy is not good so this is survivable for now. No borrowing on their credit facility has been necessary and there are good possibilities for future improvement. So the outlook remains positive. Good luck to everyone.

Over 700 Engineering Empolyess Are Changing Their Business Cards - Again.

Burrow Global, LLC, a Full-Service EPC Firm, Acquires Furmanite Technical Solutions

Burrow strengthens technical services staff for core process industries

HOUSTON (SEPTEMBER 23, 2015) - Burrow Global, LLC (BG) announced today that it has entered into an agreement to purchase the assets, contracts and certain liabilities of Furmanite Technical Solutions (FTS), a division of Furmanite America. The transaction is scheduled to close on September 28, 2015.

In conjunction with the closing of the transaction, approximately 775 full-time FTS professionals will transition to Burrow Global Services (BGS) a wholly owned subsidiary of parent company Burrow Global, LLC. The combination will increase BGS’ engineering and technical staff to approximately 1200 personnel and the Burrow Global companies will employ nominally 1400 EPC employees. BG will combine the FTS and BG offices in Beaumont and Deer Park, TX and Baton Rouge, LA while obtaining new offices in Lake Charles, LA and Angleton, TX.

“We see this as a true win for all involved including FTS, BG, our clients and our respective employees”, said Mike Burrow, Chairman/CEO of Burrow Global, LLC. “The FTS division was formerly the Gulf Coast operations of ENGlobal Corp and before that it was the legacy ‘Petrocon Engineering’ group. BG’s current senior management team includes former executives from both of those organizations. Additionally, I was the founder and CEO of Petrocon Engineering and also Co-founder and CEO of ENGlobal before coming out of retirement to establish the Burrow Global companies. With that history in mind, this union will be more like a ‘reunion’ of the original staffs of Petrocon, ENGlobal and BG. We look forward to working with our colleagues and friends once again as we unite in our common goal of establishing strong client relationships based on superior performance and safety. The combined organization will offer our clients more technical resources and geographical coverage. This greatly enhances our ability to service our clients’ needs across multiple locations while establishing a platform to better perform their major projects.”

Stock Market Instability + Fixing America

So what is new everyone? Has ENGlobal made a sudden corporate viability change? No. The markets are progressing through what should have happened a long time ago. Since the crash of 2008 we have had some unusual and never seen before conditions.

Business has not been great despite what the White House conveys. Sure, it has been great for select companies in certain sectors but not for the overall economy. The White House and other government agencies have been expressing that business is better than it really is and the main supporting ‘evidence’ they point to is the stock market. This illumination is purely to support the erroneous stance that they, this administration, have improved the economy.

My opinion is that any repair in the economy is nothing more than what would have happened naturally. I also think it would have been much better if some definitive action had taken place to repair it. Has anyone ever see anybody from that economic dream team that Obama put together (including Warren Buffett) and paraded behind him during his first campaign? Of course not, yet I digress.

Q: So what has been holding up the markets for years since the crash?
A: TARP money.

Review history and you will find George Bush started to unleash money to prevent banking and institutions from collapsing. If credit failed our economy would crash – we all get that. Enter Obama a few months later and the Federal Reserve doors went wide open. Further review later testimony from the OMB chiefs before Congress that they lost track of the money – they did not how much money was given out and to whom! This was their job and they failed to keep track of the money. Estimates ranged well into the trillions.

It is easy to figure out where the money is. A percentage of it is invested in the markets and has been holding it up for years in a bad economy. The rest resides in those investing banks and institutions and has been backing them up with a ‘no fear attitude’ helping to keep markets high. The TARP money has created a bubble of sorts that only widespread concern and true economic realization can begin to influence it. That is what happens from time to time with increasing degrees.

A falling tide lowers all ships and that is what is happening to ENGlobal. It is a better company now, albeit smaller, since Mr. Coskey took over. Cutting out dead wood and shaping it up to something better controlled is the first order of business – he did that. Reducing lower profit operations and replacing them with higher margin profit sectors, he is doing that too. That is what the offshore work and automation push is all about. Debt was erased. And this folks is a survivable model for bad times. The next phase is more expansion into higher margins via target acquisitions to get the company value up. That will show up in the future. So you have a good company and it is admirable the price is even held up this well. It’s hard to pick a bottom but it’s a buy.

So what do we need fixed? A new President that will help build business in this country is #1! You may have the strongest military, the most nuclear weapons, many powerful ships or any other measurement of power; but if you fail economically – you are done. This is precisely how the USSR collapsed.

Ignore all the side issues in the political banter. Forget all the side shows about topics that do not affect our economy. The candidate that needs to be elected will not be perfect for any one person. That candidate will have to fix our economy and have the guts to stand up to the present system that has been serving itself instead of the population they are supposed to serve. Once the economy is in repair do we then have the latitude to entertain other issues that are distracting us now from our economic problems. God Bless America. And help us to help ourselves.

Pilot out.