ENGlobal Wins Prime Spot on $124 Million Automated Fuels Handling Contract

9:00 am ET June 13, 2019

ENGlobal, a leading provider of engineered modular solutions, today announced that its wholly-owned subsidiary, ENGlobal Government Services, Inc. (EGS), has won one of three prime contractor spots on a U.S. Military $124 million Automated Fuel Handling Equipment multiple-award, indefinite-delivery, indefinite-quantity contract.

As part of its participation in this contract, EGS will compete for task orders to support the Defense Logistics Agency's Automated Fuel Handling Program, which provides the fuel monitoring and control systems capabilities that strengthen the mission of all military services. These task orders will include technology upgrades and refreshes of existing systems, new system design and installation, and life cycle maintenance of new and existing systems.

This contract has a five-year period of performance, and its work will be conducted around the world. It follows a previous five year U.S. Military contract covering similar projects of which ENG received task orders of approximately $52 million. Only awarded task orders are included in ENG's backlog.

Commenting on the new award, ENGlobal Chairman and CEO William A. Coskey, P.E., said, "We are extremely proud to have been selected to support our military with innovative and cutting edge fuel handling technology. For over fifteen years, ENGlobal has been honored to provide wide-ranging global solutions for our Military's fueling requirements, and through this new selection, we look forward to providing these services for many years to come."

ENGlobal Government Services specializes in the turn-key installation and maintenance of automation and instrumentation systems for the U.S. defense industry worldwide.

ENGlobal Granted 2nd Extension to Avoid Delisting

ENGlobal Corporation Granted 180-Day Extension by NASDAQ to Regain Compliance with Minimum Bid Price Rule

HOUSTON, May 30, 2019 (GLOBE NEWSWIRE) -- ENGlobal Corporation, a leading provider of engineered modular solutions, today announced it had received notification from the NASDAQ Stock Market indicating that the Company will have an additional 180-day grace period, or until November 25, 2019, to regain compliance with NASDAQ's $1.00 minimum bid requirement.

The notification indicated that the Company did not regain compliance during the initial 180-day grace period provided under the rule. In accordance with NASDAQ Marketplace Rule 5810(c)(3)(A), the Company is eligible for the additional grace period because it meets the initial listing requirements for the NASDAQ Capital Market, except for the bid price, and the provision of written notice to NASDAQ of ENGlobal's intention to cure the deficiency during the additional grace period by effecting a reverse stock split, if necessary.

If, at any time during this additional grace period, the closing bid price of the Company's common stock is at least $1 per share for a minimum of 10 consecutive business days, NASDAQ will provide the Company with written confirmation of compliance and the matter will be closed. If the Company chooses to implement a reverse stock split, however, it must complete the split no later than 10 business days prior to the expiration of the additional grace period in order to timely regain compliance.

If ENGlobal does not meet the minimum bid requirement during the additional 180-day grace period, NASDAQ will provide written notification to the Company that its common stock will be subject to delisting. At that time, the Company can request NASDAQ for a hearing to present a plan to regain compliance.

This NASDAQ notification does not impact ENGlobal's listing on the NASDAQ Capital Market at this time, and the Company's common stock will continue to trade under its current symbol "ENG" during the additional 180-day compliance period.

ENGlobal 1Q Results - Another Loss

ENGlobal Reports First Quarter 2019 Results

HOUSTON, May 13, 2019 (GLOBE NEWSWIRE) -- ENGlobalCorporation, a leading provider of engineered modular solutions, today announced results for the first quarter ended March 30, 2019.

The company reported a net loss of $1.0 million, or $0.04 per diluted share, for the first quarter just ended compared to a net loss of $1.2 million, or $0.04 per diluted share, for the first quarter of 2018.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "Operating results have improved modestly with reduced losses on both a year-over-year and sequential quarterly basis. Much of this improvement can be attributed to management's attention to fixed overhead expense, which is approximately 10% lower than during the first quarter of last year, notwithstanding additions of key overhead personnel to support strategic initiatives."

Mr. Hess continued: "It is also important to note that our operations produced cash of $1.2 million during the most recent quarter, which ended with a cash balance of approximately $7.3 million."

William Coskey, P.E., Chairman and Chief Executive Officer, said: "We are encouraged by ENGlobal's new business opportunities and current high level of proposal activity. Our booked backlog was approximately $30 million at the end of the first quarter. Year-to-date through April 30, 2019, ENGlobal had submitted new proposals totaling $102 million, with $90 million of these proposals outstanding and awaiting a customer decision. The company's win rate has improved significantly this year, due primarily to our estimating and proposal organization that was strengthened in the fourth quarter of 2018."

Mr. Coskey continued: "While ENGlobal has not yet achieved consistent profitability primarily due to lack of scale, we remain a debt free company and are continuing to evaluate strategic opportunities aimed at increasing shareholder value."

ENGlobal also announced it has been engaged to perform various levels of work on three separate natural gas liquids facilities that are planned for Texas and Louisiana. The company has received a Limited Notice to Proceed on early engineering activities for an LPG Export Terminal, as this work is deemed critical in meeting the scheduled on-stream date in the first half of 2021. This export terminal will include refrigeration and storage for propane, butane and iso-butane products for loading on VLGC ships for international transport. Additionally, the company is performing an early FEED study for a second propane/butane export facility, as well as a remote tank farm facility with storage and ancillary equipment for the same products. For commercial reasons, the dollar values of these current engineering awards and potential extensions are not being disclosed.

TABLES

The following is a summary of the income statement for the three months ended March 30, 2019 and March 31, 2018:

(amounts in thousands)	Three months ended March 30, 2019				Three months ended March 31, 2018
Revenue	$	12,163			$	13,188
Gross Profit		1,338				1,413
General & Administrative Expenses		2,304				2,582
Operating Loss		(966	)			(1,169	)
Net loss		(974	)			(1,200	)

The following table presents certain balance sheet items as of March 30, 2019 and December 29, 2018:

(amounts in thousands)	As of March 30, 2019		As of December 29, 2018
Cash	$	7,297	$	6,060
Working capital		12,337		13,725

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended March 30, 2019 and March 31, 2018:

	Three months ended									Three months ended
(amounts in thousands)	March 30, 2019									March 31, 2018
Segment	Total Revenue		% of Total Revenue		Gross Profit Margin		Operating Profit (Loss) Margin			Total Revenue		% of Total Revenue		Gross Profit Margin		Operating Profit (Loss) Margin
Engineering & Construction	$	5,633	46.3	%	11.9	%	1.5	%		$	5,095	38.6	%	8.2	%	(0.2	)%
Automation		6,530	53.7	%	10.2	%	3.7	%			8,093	61.4	%	12.3	%	3.6	%
Consolidated	$	12,163	100.0	%	11.0	%	(7.9	)%		$	13,188	100.0	%	10.7	%	(8.9	)%

The Company's Quarterly Report on Form 10-Q for the first quarter ended March 30, 2019 is expected to be filed with the Securities and Exchange Commission today reflecting these results by the end of the day on Monday, May 13, 2019.
For additional information on ENGlobal's Q1 2019 performance, please refer to its Form 10-Q filing on the company website, or at sec.gov.

ENGlobal Reports Fourth Quarter and Fiscal Year 2018 Results

HOUSTON, March 28, 2019 (GLOBE NEWSWIRE) -- ENGlobal, a leading provider of engineered modular solutions to the energy industry, today announced a net loss of $5.7 million and a diluted loss per share of $0.21 for the fiscal year ended December 29, 2018. The Company incurred non-cash expenses for goodwill impairment, depreciation and amortization, and stock compensation of $2.7 million during 2018 and income tax expense of $0.1 million primarily due to state margin tax.

Management's Assessment

William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal said: "The Company is making strides to benefit from the multi-year strategic initiative we began in the fall of 2017. We have identified modular project execution offerings as the opportunity to which our capabilities are best applied, and focused our business development team on communicating these offerings to specific clients. Seven strategic initiatives have been identified where we can provide complete project execution that includes engineering, design, fabrication and integration of automated control systems as a complete packaged solution for our clients, preferably in a modular form. This "design it once - build it many times" concept has many merits for our clients including a single vendor interface, better control of costs, better control of schedule and lower safety risk, among other things, which is being well received by many of our clients."

Mr. Coskey continued: "One result of our positioning and sales efforts is that the new opportunities and proposal pipeline we track continues to increase. Many of these proposals are larger, but have not yet been awarded and have exceeded our expected award timing. Our backlog, which represents an estimate of projects that have not been completed, increased to $29.2 million at December 29, 2018. This compares to backlog of $24.1 million as of December 30, 2017. I expect our backlog will continue to increase over the course of 2019, based on current levels of proposal activity."

Mark Hess, ENGlobal's Chief Financial Officer, said: "We showed significant progress towards profitability through the first three quarters of 2018, reducing our quarterly loss to $197 thousand for the third quarter. However, during the fourth quarter the Company experienced significant, unforeseen employee benefit cost - that is anticipated to be short lived but which negatively impacted both our gross profit and SG&A. This trend reversal compounded by the Company's recent financial results also triggered an impairment of our goodwill in the fourth quarter."

Mr. Hess continued: "ENGlobal's cash on hand is trending positively, increasing $0.8 million during the fourth quarter, 2018 to a total of $6.1 million at December 29, 2018 and has continued to increase year to date in 2019 as we close out some of the larger in-process projects before investments in new projects are required. Although cash on hand has increased in the first quarter of 2019, gross profit has been negatively impacted by the delayed execution of current and expected project awards. As a result, our financial results for the first quarter are expected to be negatively impacted."

Mr. Hess continued: "We continue to be very mindful of our overhead structure, and total SG&A costs have continued to decrease. Although the Company has made investments in key individuals, product developments, new facilities and equipment, in addition to the increased employee benefit cost mentioned above, these areas of additional overhead cost have been more than offset by SG&A decreases in other areas of our business."

2018 Fiscal Year results as compared to 2017 Fiscal Year results:

Revenue decreased to $54.0 million for the fiscal year ended December 29, 2018, or 3.2%, from $55.8 million for the fiscal year ended December 30, 2017. ENGlobal reported a net loss of $5.7 million, or $0.21 per diluted share, for the fiscal year ended December 29, 2018, compared to net loss of $16.3 million, or $0.59 per diluted share, for the prior year period. The Company incurred income tax expense of $0.1 million during 2018 primarily due to state margin tax, compared to income tax expense of $10.1 million during 2017. The Company incurred non-cash expenses for goodwill impairment, depreciation and amortization, and stock compensation of $2.7 million during 2018 and the Company incurred non-cash expenses for depreciation and amortization and stock compensation of $1.6 million during 2017. No goodwill impairment was recorded in 2017.

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. The Company is not obligated to repurchase any dollar amount or specific number of shares of common stock under the repurchase program, which may be suspended, discontinued or reinstated at any time. The stock repurchase program was suspended on May 16, 2017 and reinstated on December 19, 2018. Through December 29, 2018, ENGlobal had repurchased and retired 1,212,773 shares of common stock at a total cost of $1.5 million, including 21,723 shares for $15 thousand in between December 19, 2018 and December 29, 2018.

The following table illustrates the composition of the Company's revenue and profitability for its operations for the fiscal years ended December 29, 2018 and December 30, 2017:

	Year Ended									Year Ended
(amounts in thousands)	December 29, 2018									December 30, 2017
Segment	Total Revenue		% of Total Revenue		Gross Profit Margin		Operating Profit (Loss) Margin			Total Revenue		% of Total Revenue		Gross Profit Margin		Operating Profit (Loss) Margin
Engineering & Construction	$	24,152	44.7	%	12.5	%	4.7	%		$	22,595	40.5	%	4.9	%	(7.9	)%
Automation		29,844	55.3	%	13.1	%	(2.5	)%			33,170	59.5	%	16.1	%	6.5	%
Consolidated	$	53,996	100.0	%	12.8	%	(9.6	)%		$	55,765	100.0	%	11.5	%	(11.0	)%

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended December 29, 2018 and December 30, 2017:

	Three Months Ended									Three Months Ended
(amounts in thousands)	December 29, 2018									December 30, 2017
Segment	Total Revenue		% of Total Revenue		Gross Profit Margin		Operating Profit Margin			Total Revenue		% of Total Revenue		Gross Profit Margin		Operating Profit Margin
Engineering & Construction	$	5,583	44.0	%	2.4	%	(5.6	)%		$	5,619	38.9	%	(11.3	)%	(28.5	)%
Automation		7,098	56.0	%	11.9	%	(25.6	)%			8,811	61.1	%	13.7	%	5.1	%
Consolidated		12,681	100.0	%	7.7	%	(25.3	)%			14,430	100.0	%	4.0	%	(17.4	)%

The following is a summary of the Company's statement of operations for the last four quarters which may be helpful in analyzing our ongoing business:

(amounts in thousands)		2018												Fiscal Year
	Q1			Q2			Q3			Q4					2018
Revenue	$	13,188		$	13,872		$	14,255		$	12,681			$	53,996
Gross Profit		1,413			2,253			2,293			974				6,933
Gross Profit Margin		10.7	%		16.2	%		16.1	%		7.7	%			12.8	%
General & Administrative Expenses		2,582			2,869			2,483			2,096				10,030
Goodwill impairment		-			-			-			2,086				2,086
Operating Loss		(1,169	)		(616	)		(190	)		(3,208	)			(5,183	)
Net Loss		(1,200	)		(992	)		(197	)		(3,282	)			(5,671	)

The following table presents certain balance sheet items as of December 29, 2018 and December 30, 2017:

(amounts in thousands)	As of December 29, 2018		As of December 30, 2017
Cash and restricted cash	$	6,060	$	9,648
Working capital		13,725		16,846

The Company's Annual Report on Form 10-K for the year ended December 29, 2018 is expected to be filed with the Securities and Exchange Commission today reflecting these results.

ENGlobal Reports Third Quarter 2018 Results

HOUSTON, TX, Nov. 08, 2018 (GLOBE NEWSWIRE) -- ENGlobal (NASDAQ: ENG), a leading provider of engineered modular solutions, today announced results for the third quarter ended September 29, 2018.

ENGlobal reported a net loss of $197 thousand, or $0.01 per diluted share, for the third quarter just ended compared to $12.2 million, or $0.44 per diluted share, for the third quarter of 2017. Adjusted for non-recurring litigation expenses of $146 thousand and before non-cash charges for depreciation, amortization and stock compensation expense of $145 thousand, earnings for the quarter ended September 29, 2018 would have been $94 thousand, an indicator of adjusted cash earnings, which management believes is helpful to its investors to understand the earnings of our core business.

Revenue increased by $1.4 million to $14.3 million for the three months ended September 29, 2018 from $12.9 million for the three months ended September 30, 2017 while gross profit margins increased to 16.1% for the quarter ended September 29, 2018 as compared to 12.6% for the quarter ended September 30, 2017.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer stated: "We continue to see financial progress as represented by the sequential net income improvement reported for each of the three quarters this year, together with the positive adjusted earnings reported for this third quarter. Our cash and working capital are holding steady. Our working capital at the end of the quarter was $14.9 million, which we feel is sufficient to provide for near-term growth."

Mr. Hess continued: "Another positive is the significant reduction in SG&A expense on a year over year basis. For the quarter, adjusted for non-recurring litigation services expense, SG&A expense was $2.3 million, or a $9.2 million annual run rate. This SG&A result is a significant improvement when compared to $3.0 million, or a $12.0 million annual run rate in the year ago period. I'm also pleased to report that ENGlobal's firm and contracted backlog at the end of the third quarter of 2018 was approximately $33 million, which is the highest level achieved by the Company since early 2015."

William A. Coskey, P.E., Chairman and CEO of ENGlobal added: "Our mission for the near to midterm is straightforward and about growth - this being for our Company to generate significant internal revenue and margin growth while holding overhead costs down. We plan to accomplish this goal by leveraging our talents and resources to take on larger scopes of work, primarily for turnkey, engineered modular solutions which have technological differentiation. We are now developing larger opportunities for our vertically integrated business model - engineering, mechanical fabrication, automation design, systems integration and project support services, as clients desire for their projects to be supported by a single source supplier."

Mr. Coskey continued: "Given the above mission, our management team has defined seven business strategies, each with its own internal champion and execution plan. These seven areas of focus cover the range of upstream, midstream and downstream energy-related systems, and all fit very well with our engineering, automation and project execution heritage and experience. I look forward to reporting on the Company's progress regarding these initiatives."

he following is a summary of the income statement for the three months ended September 29, 2018 and September 30, 2017:

(amounts in thousands)	Three months ended September 29, 2018				Three months ended September 30, 2017
Revenue	$	14,255			$	12,896
Gross Profit		2,293				1,621
General & Administrative Expenses		2,483				3,041
Operating Loss		(190	)			(1,420	)
Net loss		(197	)			(12,154	)

The following table presents certain balance sheet items as of September 29, 2018 and December 30, 2017:

(amounts in thousands)	As of September 29, 2018		As of December 30, 2017
Cash	$	5,252	$	9,648
Working capital		14,942		16,846

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three and nine
 months ended September 29, 2018 and September 30, 2017:

(amounts in thousands)	Three months ended September 29, 2018									Three Months ended September 30, 2017
			% of		Gross							% of		Gross
	Total		Total		Profit		Operating			Total		Total		Profit		Operating
Segment	Revenue		Revenue		Margin		Profit (Loss)			Revenue		Revenue		Margin		Profit (Loss)
Engineering & Construction	$	6,821	47.9	%	16.6	%	$	664		$	5,399	41.9	%	7.6	%	$	(105	)
Automation		7,434	52.1	%	15.6	%		527			7,497	58.1	%	16.1	%		511
Consolidated	$	14,255	100.0	%	16.1	%	$	(190	)	$	12,896	100.0	%	12.6	%	$	(1,420		)

(amounts in thousands)	Nine months ended September 29, 2018									Nine Months ended September 30, 2017
			% of		Gross							% of		Gross
	Total		Total		Profit		Operating			Total		Total		Profit		Operating
Segment	Revenue		Revenue		Margin		Profit (Loss)			Revenue		Revenue		Margin		Profit (Loss)
Engineering & Construction	$	18,568	44.9	%	15.5	%	$	1,453		$	16,976	41.1	%	10.3	%	$	128
Automation		22,746	55.1	%	13.5	%		1,079			24,360	58.9	%	16.9	%		2,017
Consolidated	$	41,314	100.0	%	14.4	%	$	(1,976	)	$	41,336	100.0	%	14.2	%	$	(3,638	)

                                                  
The Company's Quarterly Report on Form 10-Q for the quarterly period ended September 29, 2018 is expected to be filed with the Securities and Exchange Commission reflecting these results by the end of the day on Thursday, November 8, 2018.