Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

ENGlobal Reports Third Quarter Results



ENGlobal Reports Third Quarter Results

HOUSTON, Nov. 19, 2012 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading
provider of energy-related project delivery solutions, announced today its
financial results for its third quarter ended September 29, 2012. ENGlobal
reported a net loss of $22.3 million, or $0.83 per diluted share, for the
quarter ended September 29, 2012, compared to a net loss of $1.3 million, or
$0.05 per diluted share for the same period last year. Included in the third
quarter 2012 results were one-time, non-cash charges of approximately $17.5
million, primarily relating to goodwill impairments and a write-down of the
assets of the Field Solutions segment that was classified as held-for-sale at
quarter end, in addition to charges on completed fixed price projects.

Commenting on the results, William A. Coskey, P.E., ENGlobal's Founder,
Chairman and Chief Executive Officer, said, "To a large extent, the third
quarter is comprised of heritage financial items that have impacted our
Company and mask some recent improving financial trends in our business.  For
example, we continue to see gradual improvements across several of our working
capital-related metrics. I am very pleased with current business activity in
our operations, and also the progress we have made on several fronts since
August 1^st of this year."

Mr. Coskey continued, "While we are disappointed in the quarterly results, we
believe that the measures that are being implemented should begin to have a
positive impact. During the quarter, we continued to make progress on our
strategic priorities, including collaborating with our management consultant
to improve financial performance, reorganizing our management team, pursuing
opportunities to improve margins and reduce expenses, and completing the
divestiture of our Land and Right-of-Way division of the Field Solutions
segment. One thing I can say with certainty is that our management team is
engaged and energized, and working hard to produce better results going
forward."

Third quarter revenues decreased to $57.5 million, 5% lower than the
$60.5 million for the third quarter of fiscal year 2011, primarily due to a
decrease in revenue from the Gulf Coast region of the Engineering and
Construction segment.

In response to the reduced activity levels expected for the remainder of 2012,
the Company began reducing overhead and selling, general and administrative
("SG&A") staff levels beginning in June and has continued this effort
throughout the third quarter. Overall, SG&A expenses decreased $0.5 million
from $6.7 million in the three months ended September 30, 2011, to $6.2
million in the third quarter of 2012. As a percentage of revenue, SG&A expense
decreased to 10.7% for the three months ended September 29, 2012, from 11.0%
for the comparable prior year period. 

ENGlobal continues to negotiate with its lender and work with its management
consultant to restore the Company's compliance with its credit facility. 

The Company's Quarterly Report on Form 10-Q for the quarter ended
September 29, 2012 will be filed with the Securities and Exchange Commission
today reflecting these results. The Company will not be hosting an earnings
conference call for the quarter ended September 29, 2012.

About ENGlobal

ENGlobal (Nasdaq:ENG), founded in 1985, is a provider of engineering and
related project services principally to the energy sector throughout the
United States and internationally. ENGlobal operates through two business
segments: Automation and Engineering & Construction. ENGlobal's Automation
segment provides services related to the design, fabrication & implementation
of process distributed control and analyzer systems, advanced automation, and
related information technology. The Engineering & Construction segment
provides consulting services relating to the development, management and
execution of projects requiring professional engineering as well as
inspection, construction management, mechanical integrity, field support,
quality assurance and plant asset management.  ENGlobal has approximately
1,500 employees in 12 offices and 9 cities. 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) our ability to realize the benefits of the sale of the Land
and Right of Way division, including our ability to collect unbilled trade
receivables; (2) whether the exploration and consideration of strategic
alternatives will result in any transaction and such transaction's effects on
the Company and its stockholders; (3) our ability to comply with the terms of
the forbearance agreement with respect to the Company's Revolving Credit and
Security Agreement, including our ability to develop a plan to restore
compliance with the terms of such credit facility; (4) our ability to obtain
the cure or waiver of defaults under the Company's Revolving Credit and
Security Agreement and our existing letter of credit facility with
Export-Import Bank of the United States; (5) our ability to achieve
profitability and positive cash flow from operations; (6) our ability to
collect accounts receivable and process accounts payable in a timely manner;
(7) our ability to respond appropriately to the current worldwide economic
situation and the resulting decrease in demand for our services and
competitive pricing pressure; (8) our ability to achieve our business strategy
while effectively managing costs and expenses; (9) our ability to accurately
estimate costs and fees on fixed-price contracts; (10) the effect of changes
in the price of oil; (11) delays related to the award of domestic and
international contracts; (12) our ability to execute to our internal
performance plans such as our productivity improvement and cost reduction
initiatives; (13) 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, either currently or in the future, as applicable; (14) the effect
of changes in accounting policies and practices as may be adopted by
regulatory agencies, as well as by the FASB; (15) the effect on our
competitive position within our market area in view of, among other things,
increasing consolidation currently taking place among our competitors;
(16) our ability to win new business and convert those orders to sales within
the fiscal year in accordance with our annual business plan; (17) achievement
of our acquisition and related integration plans; and (18) the uncertainties
of the outcome of litigation. 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.

                                                                  
Financial Highlights
(in thousands, except earnings per share)
                                                                  
                          Quarter Ended            Nine Months Ended
                           September 29, September September 29, September 30,
                                         30,
                          2012           2011      2012          2011
                                                                  
Operating Revenue          $ 57,482       $ 60,482  $ 175,805     $ 162,961
                                                                  
Operating costs           54,212         53,706    162,455       145,767
Gross Profit              3,270          6,776     13,350        17,194
                                                                  
Selling, general and      6,162          6,682     19,301        18,716
administrative
Goodwill impairment       14,568         ----      14,568        ----
Operating Income (loss)   (17,460)       94        (20,519)      (1,522)
                                                                  
Other Income (Expense):                                           
Other income (expense),   (98)           (8)       (100)         (68)
net
Interest income           (643)          (303)     (1,320)       (711)
(expense), net
                                                                  
Income (loss) from
continuing operations     (18,201)       (217)     (21,939)      (2,301)
before income taxes
                                                                  
Provision (benefit) for
federal and state income  412            138       5,606         (460)
taxes
                                                                  
Income (loss) from        (18,613)       (355)     (27,545)      (1,841)
continuing operations
                                                                  
Income (loss) from
discontinued operations,  (3,717)        (918)     (4,779)       (1,263)
net of taxes
                                                                  
Net Income (Loss)         (22,330)       (1,273)   (32,324)      (3,104)
                                                                  
Earnings (Loss) Per
Common Share – basic and                                          
diluted:
Loss from continuing       $ (0.69)       $ (0.01)  $ (1.02)      $ (0.07)
operations
Income (loss) from         $ (0.14)       $ (0.04)  $ (0.18)      $ (0.05)
discontinued operations
Net Loss                   $ (0.83)       $ (0.05)  $ (1.20)      $ (0.12)
                                                                  
Weighted Average Shares
Used in Computing         26,964         26,620    26,882        26,585
Earnings (Loss) Per Share
– basic and diluted:
                                                                  
Selected Balance Sheet
Information (in                                    As of
thousands):
                                                   September 29, December 31,
                                                   2012          2011
                                                                  
Cash                                                $ 634         $ 26
Working capital                                    16,428        32,053
Property and equipment,                            3,241         3,260
net
Total assets                                       86,493        104,179
Stockholders' equity                               26,352        58,500
                                                                  

CONTACT: Natalie S. Hairston
         (281) 878-1000
         ir@ENGlobal.com

ENGlobal Logo
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement