ENGlobal Reports Fourth Quarter and Fiscal Year 2012 Results

ENGlobal Reports Fourth Quarter and Fiscal Year 2012 Results

HOUSTON, April 15, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading
provider of energy-related engineering and automation services, today
announced its financial results for the fourth quarter and fiscal year ended
December 29, 2012.

Fiscal Year 2012

Revenues for the year ended December 29, 2012 were $227.9 million, a decrease
of approximately 4% from the $237.6 million posted for the year ended December
31, 2011. Excluding certain non-cash charges, such as the impairment of
goodwill and the write-off of a deferred tax asset, ENGlobal reported a net
loss from continuing operations of $8.7 million, or $(0.32) per diluted share
for fiscal year 2012, compared to a net loss of $4.4 million from continuing
operations, or $(0.16) per diluted share for fiscal year 2011.

Fourth Quarter 2012

Revenues in the fourth quarter of 2012 were approximately $52.1 million, a
decrease of 30% from $74.6 million from the prior year period. ENGlobal
reported a net loss of $2.5 million from continuing operations, or $(0.09) per
diluted share, for the quarter ended December 29, 2012, compared to a net loss
of $2.6 million, or $(0.10) per diluted share for the quarter ended December
31, 2011.

Management's Assessment

William A. Coskey, P.E., ENGlobal's Chairman and Chief Executive Officer,
stated: "ENGlobal's turnaround plan essentially began in the fourth quarter of
last year. While the Company experienced a difficult 2012 and continues to
face a number of challenges, we are cautiously optimistic about our operations
resulting from measures that were implemented in the last six months. During
this time, the Company sold two non-strategic businesses, discontinued
another, and we are now focused on our core operational segments."

Mark A. Hess, ENGlobal's Chief Financial Officer, added: "We are also
operating more efficiently and seeing significant margin improvement from our
continuing operations. The latter of which is primarily due to ENGlobal's
ongoing efforts to significantly reduce overruns on its projects andto
improvecommercial terms on its contracts. We remain dedicated to reducing our
dependence on our working capital credit facility. As a result of the
implementation of the above initiatives and the sale of our Field Solutions
divisions, we have reduced the level of borrowings under our working capital
credit facility to $26.8 million at the end of 2012 and we are currently
borrowing significantly below that level."

Mr. Coskey concluded,"As a result of our combined efforts, steady financial
improvement, and increasing backlog, our management team can be proud to have
outperformed the Company's financial turnaround plan for each month since its
inception."

The following table illustrates the composition of the Company's revenue for
the fiscal years ended December29,2012 and December 31, 2011:

            Year Ended                        Year Ended
(dollars in  December 29, 2012                 December 31, 2011
millions)
             Total    % of    Gross  Operating Total    % of    Gross  Operating
Segment      Revenue  Total   Profit Profit    Revenue  Total   Profit Profit
                      Revenue Margin Margin             Revenue Margin Margin
                                                               
Engineering
&            $168,930 58.5%   7.4%   (6.5)%    $175,387 53.1%   8.8%   4.5%
Construction
Automation   58,986   20.4%   10.6%  3.4 %     62,216   18.9%   9.8%   3.3%
Discontinued 60,822   21.1%   4.8%   (6.0)%    92,551   28.0%   1.6%   (4.5)%
Operations
Consolidated $288,738 100.0%  7.5%   (4.4)%    $330,154 100.0%  7.0%   1.7%

The following table illustrates the composition of the Company's revenue and
profitability for the three months ended December29, 2012 and December 31,
2011:

            Quarter Ended                    Quarter Ended
(dollars in  December 29, 2012                December 31, 2011
millions)
             Total   % of    Gross  Operating Total   % of    Gross  Operating
Segment      Revenue Total   Profit Profit    Revenue Total   Profit Profit
                     Revenue Margin Margin            Revenue Margin Margin
                                                             
Engineering
&            $37,769 62.4%   8.7%   3.0%      $47,148 51.7%   6.6%   2.8%
Construction
Automation   14,342  23.7%   14.5%  7.8%      27,494  30.1%   4.1%   0.6%
Discontinued 8,380   13.9%   (1.0)% (5.2)%    16,570  18.2%   (8.8)% (13.6)%
Operations
Consolidated $60,491 100.0%  9.0%   3.0%      $91,212 100.0%  3.1%   (0.9)%

The Company's Annual Report on Form 10-K for the year ended December 29, 2012
will be filed with the Securities and Exchange Commission today reflecting
these results. The Company will not host an earnings conference call for the
year ended December29, 2012.

About ENGlobal

ENGlobal (Nasdaq:ENG) 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 and 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 currently has approximately
1,400employees in 11offices and 9cities. 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: (i) our ability to comply with the terms of the forbearances under
the PNC Credit Facility and Ex-Im Bank Facility; (ii) our ability to obtain an
extension of the forbearance periods under the PNC Credit Facility and Ex-Im
Bank Facility or otherwise obtain the cure or waiver of defaults under the PNC
Credit Facility and Ex-Im Bank Facility; (iii) whether the exploration and
consideration of strategic alternatives will result in any transaction and
such transaction's effects on the Company and its stockholders; (iv) our
ability to achieve profitability and sustainable positive cash flow from our
operations; (v) the effect of changes in accounting policies and practices as
may be adopted by regulatory agencies, as well as by the Financial Accounting
Standards Board; (vi) the effect of changes in the business cycle and
downturns in local, regional and national economy and our ability to respond
appropriately to the current worldwide economic financial situation;(vii) the
effect on the Company's competitive position within its market area in view
of, among other things, the increasing consolidation within its services
industries, including the increased competition from larger regional and
out-of-state engineering and professional service organizations; (viii) the
effect of increases and decreases in oil prices; (ix) the availability of
parts from vendors; (x) our ability to collect accounts receivable in a timely
manner; (xi) our ability to accurately estimate costs and fees on fixed-price
contracts; (xii) our ability to hire and retain qualified personnel; (xiii)
our ability to retain existing customers and get new customers; (xiv) our
ability to mitigate losses; (xv) our ability to achieve our business strategy
while effectively managing costs and expenses; (xvi) our ability to estimate
exact project completion dates; (xvii) our ability to effectively monitor
business done outside of the United States; (xviii) our ability to realize the
benefits of the sale of our Field Solutions segment, including our ability to
collect unbilled trade receivables; (xiv) the performance of the energy
sector; and (xv) 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. The Company
cautions that the foregoing list of important factors is not exclusive. 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.Also, the information contained in this
press release is subject to the risk factors identified in the Company's most
recent Form 10-K.

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Financial Highlights
(in thousands, except per basic data)

                                         Quarter Ended     Year Ended
                                         December 31       December 31
                                         2012     2011     2012      2011
                                                                  
Operating revenues                        $52,111  $74,642  $227,916  $237,603
Operating costs                           46,741   70,398   209,196   216,165
Gross profit                              5,370    4,244    18,720    21,438
                                                                  
Selling, general and administrative       5,938    6,866    39,807    25,582
expenses
Operating loss                            (568)    (2,622)  (21,087)  (4,144)
                                                                  
Other income (expense):                                            
Other income (expense), net               —        7        (100)     (61)
Interest income (expense), net            (555)    (317)    (1,875)   (1,028)
                                                                  
Loss before provision for income taxes    (1,123)  (2,932)  (23,062)  (5,233)
                                                                  
Provision (benefit) for income taxes      1,395    371      7,001     (831)
Net loss from continuing operations       $(2,518) $(2,561) $(30,063) $(4,402)
Income (loss) from discontinued           1,241    (1,411)  (3,538)   (2,674)
operations
Net loss                                  (1,277)  (3,972)  (33,601)  (7,076)
                                                                  
Earnings (loss) per common share: basic                            
and diluted
Income (loss) from continuing operations  $(0.09)  $(0.10)  $(1.25)   $(0.16)
Income (loss) from discontinued           $0.04    $(0.05)  $(0.12)   $(0.10)
operations
Net Income (loss)                         (0.05)   (0.15)   (1.13)    (0.26)
                                                                  
Weighted average shares used in computing
earnings (loss) per share - basic and     26,951   26,763   26,883    26,722
diluted:
                                                                  
                                                                  
Selected Balance Sheet Information (in                    As of December 31
thousands):
                                                         2012      2011
                                                                  
Cash                                                      $ 6,873   $2,301
Working capital                                           13,303    32,053
Property and equipment, net                               2,997     3,260
Total assets                                              78,687    104,179
Stockholders' Equity                                      25,299    58,500

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

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