Blog Update

Rev 4.0

ENGlobal Provides Post-Divestiture Corporate Update

HOUSTON, Feb. 10, 2014 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, today provided a corporate update after considering its 2012-2013 business divestitures, the most recent of which was closed in the third quarter of 2013.

While the Company has yet to complete its final year-end accounting and audit processes, ENGlobal provided the following analysis of its post-divestiture performance and estimated fourth quarter 2013 financial data from continuing operations:

1.  Revenue of approximately $25.0 million.
2.  Consolidated gross profit margin of approximately 19% of revenue.
3.  Selling, general and administrative (SG&A) expenses of approximately 17% of revenue, including non-recurring transition expenses.
4.  At December 28, 2013, cash on hand of approximately $5.5 million, without borrowing from the Company's working capital facility.

"Our current business is best represented by an increase in gross profit margins and an improved financial condition as a smaller, more focused Company," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer. "The position that we find ourselves in today is a direct result of steps initiated in late 2012, which includes a largely rebuilt and highly motivated management team, an emphasis on customer satisfaction, project execution and cost containment; and innovative strategies for future business development. While we are not satisfied with our overall results, we are pleased with the progress we have made to date and look forward to additional improvements in the coming year."

As previously reported, the Company discontinued its electrical services division and divested its land/right of way and midstream inspection divisions during 2012, as well as divested its Gulf Coast engineering and in-plant operations in the third quarter of 2013. ENGlobal experienced operating losses through the first half of 2013 and, therefore, expects to report an operating loss for the full year 2013, despite post-divestitures operating improvements.

ENGlobal plans to issue its results for the year ended December 31, 2013 and file its Annual Report on Form 10-K on or about March 13, 2014.

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ENGlobal Provides Update on Recent Automation Awards

HOUSTON, Feb. 6, 2014 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, today reports on a range of project scopes that were recently awarded to its Automation Segment. The cumulative value of the awards to ENGlobal is in excess of $10.0 million.

•An automated pipe handling equipment company has awarded ENGlobal additional projects to procure, integrate, and test a number of automated driller's cabins, which include consolidated drilling controls, automated pipe handling controls, programmable logical controller (PLC) hardware and data processing systems.

•A large engineering and construction firm has awarded ENGlobal a continuous emissions monitoring system (CEMS), which is specifically designed to meet the environmental pollution regulatory requirements for stack emissions and air quality standards.

•ENGlobal is providing design and integration services for several analyzer shelters and remote instrument enclosure (RIE) buildings to a large refiner. The Company's scope also includes engineering, procurement, and testing of the analyzer shelters and RIEs.

•A midstream master limited partnership (MLP) has selected ENGlobal as its automation systems integration contractor. Specifically, the Company is providing procurement, fabrication, and testing of process control shelters, PLC systems, railcar and truck loading/unloading facilities, and satellite stations.

"We are pleased to receive these project awards from both new and existing clients," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer. "ENGlobal has been successful in marketing its new operational direction, as illustrated by these recent project awards. We are especially proud to showcase our midstream/downstream Engineering and Automation services and new-to-market upstream capabilities."

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Vault Computer Performance Report

Vault Computer builds fast, reliable computers. We only build them with the highest quality components. How fast are they?

Performance is measured by calculations of Pi using the multi-thread program y-cruncher (Gamma Cruncher). Calculations are made to various lengths of Pi measured in time (seconds). Results are as follows without overclocking.

CPU 4-Core @ 4.2GHz:

Calculate Pi to 25 Million digits  -  09.948 secs.
Calculate Pi to 50 Million digits  -  21.770 secs.
Calculate Pi to 100 Million digits - 47.967 secs.
Calculate Pi to 1 Billion digits     - 676.600 secs.

CPU 8-Core @ 4.0GHz:

Calculate Pi to 25 Million digits  -    6.759 secs.
Calculate Pi to 50 Million digits  -  14.098 secs.
Calculate Pi to 100 Million digits - 28.607 secs.
Calculate Pi to 1 Billion digits     - 376.084 secs.

For more information please review the previous article here.

Vault Computer builds an Encrypted Version of the same fast computer. This prevents unauthorized access and start up of your computer. It also prevents anyone from seeing, reading or stealing data from a hard drive removed from your computer - 100% Guaranteed. We use 256-bit AES Encryption - the same encryption used by the U.S. Government.

Please visit our website with video demonstration: www.thevaultpc.com

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HOUSTON, Dec. 20, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and related project services, today announced the results of its 2013 annual stockholders' meeting held this morning in North Houston.

The formal business of the meeting included the election of the following directors to a one-year term: William A. Coskey, P.E., David W. Gent, P.E., Randall B. Hale, and David C. Roussel. In addition, ENGlobal's stockholders approved: (1) the amendment to the ENGlobal 2009 Equity Incentive Plan to increase the number of shares of common stock reserved for issuance thereunder from 980,000 shares to 1,830,000 shares; (2) the ratification of the appointment of Hein & Associates LLP as the independent auditors of ENGlobal for fiscal year 2013; (3) approved the compensation of our named executive officers; and (4) approved "three years" as to the frequency of the occurrence of future advisory votes on executive compensation.

Approximately 91.94% of ENGlobal's total common stock outstanding was represented at the meeting, either in person or by proxy. Of those shares, approximately 97.99% were cast in favor of the election of the Company's directors, 77.21% were cast in favor of the approval of an amendment to the ENGlobal 2009 Equity Incentive Plan, approximately 94.04% were cast in favor of the ratification of the appointment of Hein & Associates LLP, 92.8% were cast in favor of the compensation of our named executive officers, and 68.96% were cast in favor of "three years" as the stockholders' choice as to the frequency of the occurrence of future advisory votes on executive compensation. Upon conclusion of the formal business of the meeting, ENGlobal's President and CEO, Mr. Coskey, provided an operational update to the stockholders.

Editorial: Since the company was not sold in entirety a later than usual Annual Meeting was scheduled to meet SEC requirements.  The common events happened but of note the share reserve was increased (almost doubled) from 980K to 1.83 million shares. These shares can be used for a number of reasons and most commonly as incentive for attracting top level employees and as a leadership retaining incentive. On one hand it is dilution and shares are used as the cost of stockholders, which is unfavorable. On the other hand, it is common business for companies that have weakness or more diplomatically said, less resources. The reasons for such can be pondered...however, IF I was faced with the same conditions I would probably request those extra shares also.

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The old Blog Update has become: Summer and Fall News and Events 2013. You can find the previous information within that post.

In the last 1.75 years this blog has received over 38,800 hits and 60,900 pageviews as of writing from 62 different countries. Readership comes from the following countries: United States, Canada, Australia, New Zealand, Bermuda, Russia, Saudi Arabia, United Arab Emirates, Oman, Iraq, Pakistan, Sweden, Finland, Latvia, Poland, Germany, Argentina, Uruguay, Brazil, Colombia, Ecuador, Chile, Panama, Costa Rica, Trinidad and Tobago, Dominican Republic, Japan, South Korea, Netherlands, Hong Kong, Singapore, Thailand, Vietnam, Indonesia. China, England, Ireland, Spain, France, Belgium, Italy, Switzerland, Ukraine, Czech Republic, Romania, Bulgaria, Hungary, Slovenia, Serbia, Georgia, Moldova, Turkey, Kazakhstan, Malaysia, Philippines, Israel, Tanzania, India, Sri Lanka, Algeria, Gabon and South Africa. Thank you to everyone for reading.

I would have never thought that many hits would be realized and I will continue to support the readership. Welcome to the new countries viewing - Turkey, Czech Republic, Bermuda, Kazakhstan, Panama, South Africa, Serbia, Trinidad and Tobago, Moldova, Gabon, Costa Rica, South Korea and Gabon readers. If you need engineering work monitor this website in the future. 

Leadership - Doing The Right Thing

I was having lunch with a good friend today and our conversation broached the differences between good people and people who behave poorly. It is a well-known trait that when the environment around people degrades so does human behavior. Likewise, when a company has problems the environment declines and you see difficulties ensue. When the leaders of those companies make poor choices or simply do not "do the right thing" it affects everyone. Many employees are keen to this and feel their leaders lose integrity and credibility by letting the problems make decisions for them. In the end, poor choices lead to losing more than you know and that loss centers on respect.

I have had numerous discussions about leadership with a good friend and colleague who is the Corporate Principal Project Manager at Arkema. He has decades of experience, is tough on expectations and generous to help or advise those with problems. I agree with him about company progress - that it is all about the team. Moreover, that it is our responsibilities as leaders to set examples for others, become mentors and pass forward the the knowledge you gained.

If you are in a leadership position, I encourage you to always do the right thing and set an example. After all, our environment changes and difficulties resolve themselves, leaving you with the reputation you earned with your own actions. The best practice for enduring problematic times is teamwork. That teamwork will depend on respect and trust. This is why leaders need to choose wisely and respect everyone down to the youngest employees. Resist speaking negatively about others and seek a positive way to resolve issues. If you cause someone harm or loss, make good on it no matter what the cost. Repay the loss and learn to apologize.

In a recent administrative position I became aware of one of my direct reports being hurt by a coworker. As a concerned leader I confronted the coworker carefully and with respect alerted this person to the problem. I was so impressed by the quick apology and desire for this person to make a personal apology that I knew the problem was solved. This person earned respect in spite of the problem caused. Never underestimate the power of apology. I have learned to go out of your way to take responsibility for problems even if they are not directly caused by you. This will build your character and others' trust in you.

We will all make mistakes. I like to tell people that I try to learn from my mistakes and I plan "to do a whole lot of more learning". It is not a person's values that make them a better person - it their behavior. For a moment, reflect on how you treat others and if you are a leader to "always do the right thing". If you see a problem occurring at home, at church, a gathering or in the office and you don't think you are a leader, then, you are missing the opportunity to become one.

In parting, I leave you with one of many examples "of doing the right thing" as an inspiration:

19 year old Joey Prusak is the manager of a Dairy Queen in Minnesota.  He was working during the lunch rush when a blind man in line dropped a $20 bill on the floor.  The woman in line next to the blind man quickly picked up the $20 and put it in her purse.  Joey was shocked.  When she got to the counter to order her lunch Joey told her that she would not be served until she returned the $20 to the blind man.  She refused and Joey asked her to leave. She did so only after creating a ruckus.

Not done with being a good person, Joey gave the blind man $20 out of his own pocket.  Equal to two hours of his gross pay.

Now watch the video. Pilot Out.

http://www.youtube.com/watch?feature=player_embedded&v=xQwF3KtXxXA

ENGlobal Corporation: 3Q 2013 Results

HOUSTON, Nov 08, 2013 (GLOBE NEWSWIRE via COMTEX) -- ENGlobal, a leading provider of energy-related engineering and automation services, announced today its financial results for the third quarter ended September 28, 2013.

Third Quarter 2013 Highlights Compared to Third Quarter 2012:

• Breakeven earnings per share, an improvement from a loss per share of $0.83 
• Revenue of $43.3 million, a decrease of 24.7%
• Gross profit margin of 12.0%, an increase from 5.7%
• Overall SG&A decreased from $7.1 million to $5.2 million
• Reduced bank debt from $29.4 million to $1.1 million

ENGlobal reported a net loss of approximately $50 thousand, or $(0.00) per share, from both continuing and discontinued operations for the quarter ended September 28, 2013. This compares to a net loss of approximately $22.3 million, or $(0.83) per share, and a net loss from continuing operations of approximately $18.7 million, or $(0.67) per share, for the quarter ended September 29, 2012. Third quarter 2013 revenues decreased to $43.3 million, 24.7% lower than the $57.5 million for the third quarter of 2012, primarily due to the sale of the Gulf Coast Engineering and In-Plant operations on August 30, 2013.

"ENGlobal has come a long way in fundamentally reshaping its Business over a relatively short period of time," said William A. Coskey, P.E., Founder and Chief Executive Officer of ENGlobal. "ENGlobal's management team has been almost completely reorganized, a move which has proven to be effective in terms of improving margins and reducing expenses. In addition, the Company has sold or discontinued four non-strategic businesses since my return as CEO."

Mr. Coskey, continued. "Through these and other measures, we've been able to significantly reduce dependence on our working capital credit facility and have now returned to being in full compliance with its covenants required by our facility. These actions of divesting certain assets have been important to ENGlobal - both in terms of financial liquidity and for our higher value engineering and automation focus going forward."

The Company's gross profit margin as a percentage of revenue increased to 12.0% in the three months ended September 28, 2013 as compared to 7.1% for the prior year period. The primary reason for this increase is the implementation of our profit improvement plan, which reduced the risk profile of our project mix, reduced variable costs, and improved efficiencies in the Automation segment.

The amount outstanding under the Company's credit facility was $26.8 million at December 29, 2012, $1.1 million at September 28, 2013 and $567 thousand at November 8, 2013. These decreases were primarily due to the release of restricted cash related to the expiration of the Company's Ex-Im Letter of Credit Facility and the liquidation of the working capital of its divested business units.

The following table illustrates the composition of the Company's revenue and profitability, inclusive of discontinued operations, for the three months ended September 28, 2013 and September 29, 2012, respectively (click on link for article and table):

http://www.englobal.com/profiles/investor/ResLibraryView.asp?ResLibraryID=66293&BzID=702&Nav=0&LangID=1&s=0&Category=64


Overall, selling, general and administrative ("SG&A") expenses decreased $3.5 million, or 40.2%, from $8.7 million in the three months in 2012 to $5.2 million for the current quarter. As a percentage of revenue, SG&A remained steady at 12.0% for the three months ended September 28, 2013 when compared to the prior period.

In the three months ended September 29, 2012, the Company recorded goodwill impairment in the amount of $17.0 million of which $14.6 million was attributable to continuing operations.

The Company's Quarterly Report on Form 10-Q for the quarter ended September 28, 2013 will be filed with the Securities and Exchange Commission later today reflecting these results.

Vault Computer: Encrypted Computer Demonstration

Vault Computer has a new video demonstrating their new Encrypted Computer Design. They make use of hardware encryption that protects the entire hard drive and all the data. You can also order a Vault Computer without encryption if you want a fast, high performance computer for personal use, business, industry, engineering or media. For more information read the next article and view this video:



http://www.youtube.com/watch?v=IDb2lJtIyzI

Breakthrough Computer Technology: High Performance and Encryption

How often do we read and hear about Data and Identity Theft these days? Theft of personal, industrial and government data is on the rise and the fastest growing type of crime. Data and information are our most valuable and vulnerable resource tools. Can theft be prevented? Yes – most of it can. In keeping up with new products for Business, Industry and Engineering Computing there is new technology available. Totally encrypted computers and hard drive storage. Vault Computer has expanded into Texas and Louisiana distributing computers in the Houston, Beaumont and Lake Charles areas. These are state of the art high performance computers that are built to last with the latest technology.


There is something very new added to these computers bringing total security into your control – Encryption. As an option you can include hardware encryption to a Vault Computer at a reasonable cost. They use the only SATA hard drive solution available. Vault Computer utilizes 256-bit AES hardware encryption that encrypts the entire hard drive. Data access is only provided with a key. In fact, the computer will not load the operating system without the encryption key. What if the hard drive is removed or stolen? It will be BLANK! This means nobody can see, use or steal your data – it is safe and secure, 100%. This is the exact technology NASA and the rest of the US Government uses to protect their data and is a security industry standard.

Vault Computers with encryption are in use now by Federal Judges, Lawyers, Accountants, Doctors, Industry, Small Business and Private Individuals that want their data safe. No one will ever see your data.




If you do not need the encryption solution, Vault Computer offers the same rock solid platform without encryption if you want a performance computer for industry, business, media or personal use. These computers are extremely fast, ultra quiet and powerful. They come with a four or eight-core processor at 4+GHz per core and 16-32 GB of DRAM. A 1TB hard drive with SATA III (6GB/sec) interface is standard. These computers do not slow down when loaded with resource consuming programs or tasks.

All computers include High Definition Audio, 2/4/5.1/7.1-channel sound with 108dB Signal-to-noise ratio, DVD playback and Dolby Home Theater audio. If you want a Blu-ray DVD player you have that option.

Vault Computers are already in use in the Golden Triangle Area and used in Process Engineering, Automation, Engineering, Industry and Personal Use. Clients report that these computers blow the competition away. For more information and specifications go to:

www.thevaultpc.com

Prices are reasonable and cost thousands less than the nearest equivalent performance from the big box makers. Vault Computer uses higher quality components making them a much better choice for long service life. Whether you want unbreakable security for your data or just the fastest computer available, look into a Vault Computer.

ENGlobal Corporation: What Is InThe Future?

On 30 August we heard that ENGlobal completed its sale of Gulf Coast Engineering and In-Plant Services for about $20 million. The figure announced 16 July was $21.5 million and a $3.5 million promissory note. Offhand it looks like the deal netted ~$5 million less than first announced – the wrong money direction, but closed nevertheless.

ENGlobal’s words earlier were that they were selling “approximately half our business”. So with half the income and revenue the stock stays approximately the same? Does anyone else think the market forces are unusual?

One of the most revealing statements in the July release was, “…through Closing of this transaction, we will have reduced our debt and vendor obligations by approximately $50.0 million." Were any of you aware that debt had reached this magnitude? I don’t believe we ever got that transparency beforehand and then in July, revealing this accumulated debt fact highlighted later, as a ‘plus’ accomplishment?! Think what you want, however, the pattern of disclosure suggests you find out issues later than sooner.

A point I will give Bill Coskey, he is a survivor. This statement from the July release I find resonanting, "The ongoing ENGlobal operations will become strategically focused, well positioned for growth, and essentially free of bank debt.” The key word there was “Essentially”. For those of you that think that ENG will ever be debt free – Nope. Debt was less reduced by the money differences mentioned in the first paragraph plus an additional $10 million Credit Facility was announced in the 30 August release. Debt was reported to be $12.5 million at August 7, 2013.

The new Credit Facility is only a one-year term used for…”working capital purposes, as needed, and will allow the Company additional time to analyze its long-term capital needs.” Please notice the underlined portion which means ‘we’re not done figuring it out yet’. I do not mean to relate this idea as entirely negative; the potential for a positive situation emerging is equally possible.

Measuring the Company

2Q 2013 was a poor showing. Compared to 2Q 2012:
•    $0.06 loss per share, an improvement from a loss per share of $0.37
•    Revenue of $50.6 million, a decrease of 14.5%
•    Gross profit margin as a percentage of revenue of 10.9%, an increase from 8.8%
•    Overall SG&A decreased from $7.9 million to $6.4 million

An improved loss! A loss is a loss, your loss amount may decrease but extended losses lead to bankruptcy. Revenue decreased and now half the company is sold, so watch the revenue number closely in the future. The margins improving are a good sign. SG&A should really decrease more; however, this is the period ending 30 June. Observe the next nine months financials to establish a trend. If you see no significant positive trend then I would be concerned.

From the 2Q release: Mr. Coskey continued. "In effect, this transaction [asset sale] serves as a directional change for ENGlobal. We will have a fresh start and our management team will now have the freedom to pursue strategic opportunities that we believe will ultimately grow the Company. Through the balance of this year, we will firm up the new goals for our Company's future – and look forward to communicating our short- and long-term plans during that time." Well folks how many times have we heard something like this from recent CEO’s? Question: What took away ENGlobal’s management team’s “freedom to pursue strategic opportunities that we believe will ultimately grow the Company” in the first place?

To be honest I do not think I could come up with a better statement under present conditions or would expect much different from the company’s position of being ‘painted in the corner’. I just wouldn’t let myself get into that predicament in the first place. Isn’t being proactive is what management is all about? One thing is for sure when you consider the end of the quote – change is not over and you will have to wait to hear the future plans. Good luck to everyone.

We The People

If you support Democracy you have to support the will of the majority of people – period. Something good and interesting just occurred in Colorado. Legislators bending to the will of others and not the people who voted and hired them were recalled. Stunned, these elected officials are now out of a job. This particular battle occurred in Colorado and fought over firearms and the Second Amendment, however, more importantly is was a battle won using a grass roots campaign, against elected officials who did not respect the voice of those who elected them.

Here is the full article:

Total Recall: Colorado Lawmakers Ousted in Historic Vote

When legislators disregard the voice and will of the people who vote them into office, the people should rightly vote those legislators out of office.  On Tuesday, a historic grassroots effort by voters in Colorado resulted in just that--the recall of Colorado Senate President John Morse (D) and Senator Angela Giron (D).  This week's action represents the first recall of legislators in Colorado history.  Tuesday's vote sent a clear and unmistakable message to elected officials that their primary job is to listen to the people and defend their rights and freedoms, and that they are accountable to their constituents--not the dollars or social engineering agendas of out-of-state anti-gun billionaires.  Simply put, legislators work for the voters, not the other way around!

Recall proceedings began earlier this year, after Sens. Morse and Giron voted for anti-gun legislation that restricted the ability of law-abiding residents to exercise their Second Amendment rights, including their inherent right to self-defense. This effort was driven by concerned Coloradoans, who collected petition signatures, made phone calls, knocked on doors, and worked diligently to turn voters out in this historic effort. And despite massive spending by Michael Bloomberg and the anti-gun elitists, Sens. Morse and Giron are now looking for work.

Voters in Colorado insisted that their voices be heard--and they were.  They stood up for their Second Amendment rights, against formidable anti-gun adversaries, and were victorious.  The National Rifle Association Political Victory Fund (NRA-PVF) is proud to have stood with them and applauds them for sending a clear message that their Second Amendment rights are not for sale. We were pleased that our on-the-ground grassroots efforts were able to supplement those of Colorado citizen activists and send a shot across the bow of the nation's anti-gun elites.

We look forward to working with NRA-PVF "A" rated and endorsed Bernie Herpin (R) from Colorado Springs and NRA-PVF "AQ" rated and endorsed George Rivera (R) from Pueblo in the Colorado State Senate.

http://www.nraila.org/legislation/state-legislation/2013/9/total-recall-colorado-lawmakers-ousted-in-historic-vote.aspx

A video can be seen here.

Conclusions

Americans may sit on their duffs and complain for a while, however, when we’ve had enough we take action. We unite and act. That message was just sent to those powerful and rich politicians trying to ignore our voices and constitutional rights. The rights this country was founded and then built upon. These former Colorado legislators were being influenced by Joe Biden, President Obama and Mayor Bloomberg who gave money to fight the efforts to remove them from office. Do not expect this event to make the media headlines as it should due to biased media.

See and earlier post covering media bias:

http://t38pilot8202.blogspot.com/2012/12/san-antonio-theater-shooting-gun.html

A recent example of this media bias was the 2 million strong biker ride in to Washington DC by motorcycle enthusiasts on 9/11. This was in response to an attempt at a 1 million Muslims gathering for the “American Muslim March Against Fear”. It had been originally touted as the “Million Muslim March.” The Muslims got some coverage but the motorcycle riders got next to nothing. If fact, the Muslims got a permit to gather and parade but the motorcyclists promoting American Constitutional Rights did not. At the day's close the motorcyclists numbered 880,000+, but less than 30 of the Muslims showed up.

In the end it is up to you as an individual to speak up, unite and act when your leaders no longer listen. Yes, things will change with time – they always do. However, that does not mean we have to give up Democracy and fundamental values this country was built upon. Those values are what made this country strong in the first place. Those values are what give us our freedom. Freedom allows us to bring quality to our children and families. It guarantees our right to the pursuit happiness.