ENGlobal Reports First Quarter 2016 Results
May 10 2016 - 6:55AM
ENGlobal (Nasdaq:ENG), 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):
(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.
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 and level of oil and natural
gas prices; (2) our ability to realize revenue projected in our
backlog and our ability to collect accounts receivable and process
accounts payable in a timely manner; (3) our ability to retain
existing customers and attract new customers; (4) our dependence on
one or a few customers; (5) the uncertainties related to the US
Government’s budgetary process and their effects on our long-term
US Government contracts; (6) our ability to attract and retain key
professional personnel; (7) operational and political risks in
Russia and Kazakhstan along the Caspian Sea; (8) our ability to
execute to our internal performance plans to operate profitability
and generate positive cash flow from operations; (9) our ability to
identify, consummate and integrate potential acquisitions; and (10)
our ability to purchase shares under our stock repurchase program
due to changes in stock prices and other conditions. 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. 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.
Click here to join our email list:
http://www.b2i.us/irpass.asp?BzID=702&to=ea&s=0
Contact:
Mark Hess
Phone: 281-878-1040
E-mail: IR@ENGlobal.com
ENGlobal (NASDAQ:ENG)
Historical Stock Chart
From Jun 2024 to Jul 2024
ENGlobal (NASDAQ:ENG)
Historical Stock Chart
From Jul 2023 to Jul 2024