ENGlobal Reports Third Quarter 2015 Results
November 06 2015 - 6:55AM
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:
|
Quarter
Ended |
Quarter
Ended |
(in thousands) |
September 26,
2015 |
September 27,
2014 |
|
|
% of |
Gross |
Operating |
|
% of |
Gross |
Operating |
Segment |
Total |
Total |
Profit |
Profit |
Total |
Total |
Profit |
Profit |
|
Revenue |
Revenue |
Margin |
Margin |
Revenue |
Revenue |
Margin |
Margin |
|
|
|
|
|
|
|
|
|
Engineering & Construction |
$ 11,945 |
65.6% |
14.4% |
8.9% |
$ 12,350 |
45.9% |
12.9% |
5.8% |
Automation |
6,265 |
34.4% |
32.8% |
23.4% |
14,577 |
54.1% |
30.8% |
25.6% |
Consolidated |
$ 18,210 |
100.0% |
20.7% |
2.3% |
$ 26,927 |
100.0% |
22.6% |
7.7% |
The following table presents certain balance sheet items as of
September 26, 2015 and September 27, 2014:
(in thousands) |
As of September 26,
2015 |
As of September 27,
2014 |
Cash |
$ 11,878 |
$ 5,741 |
Working capital |
25,813 |
18,959 |
Credit facility balance |
-- |
-- |
The Company's Quarterly Report on Form 10-Q for the quarter
ended September 26, 2015 will be filed with the Securities and
Exchange Commission today reflecting these results.
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.
Safe Harbor for Forward-Looking Statements
The statements above regarding the Company's expectations
regarding its operations and certain other matters discussed in
this press release may constitute forward-looking statements within
the meaning of the federal securities laws and are subject to risks
and uncertainties including, but not limited to: (1) the effect of
economic downturns and the volatility of oil and natural gas prices
and significantly depressed oil prices since the end of 2014; (2)
our ability to execute to our internal performance plans such as
our post-divestiture outlook, productivity improvement and cost
containment initiatives; (3) our ability to attract and retain key
professional personnel; (4) our ability to retain existing
customers and attract new customers; (5) our ability to realize
revenue projected in our backlog and our ability to collect
accounts receivable and process accounts payable in a timely
manner; (6) our ability to identify, consummate and integrate
potential acquisitions; (7) our reliance on third-party
subcontractors and equipment manufacturers; (8) our ability to
sustain profitability and positive cash flow from operations; (9)
our ability to comply with the terms of our new credit facility;
(10) operational and political risks in Russia and Kazakhstan along
the Caspian Sea; (11) the effect of changes in laws and regulations
with which the Company must comply and the associated costs of
compliance with such laws and regulations; and (12) the effect of
changes in accounting policies and practices as may be adopted by
regulatory agencies. Actual results and the timing of certain
events could differ materially from those projected in or
contemplated by the forward-looking statements due to a number of
factors detailed from time to time in ENGlobal's filings with the
Securities and Exchange Commission. In addition, reference is
hereby made to cautionary statements set forth in the Company's
most recent reports on Form 10-K and 10-Q, and other SEC
filings.
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CONTACT: Mark A. Hess
(281) 878-1040
ir@ENGlobal.com
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