ENGlobal Reports First Quarter 2014 Results

ENGlobal Reports First Quarter 2014 Results

HOUSTON, May 8, 2014 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading
provider of engineering and automation services, today announced its financial
results for the first quarter ended March 29, 2014.

HIGHLIGHTS OF CONTINUING OPERATIONS (1^st QTR 2014 compared to 1^st QTR 2013):

  *Revenue of $26.9 million, a 33% increase
  *Gross profit margin of 22.6%, an increase of 10.9 percentage points
  *Net income from continuing operations of $1.8 million, an increase from a
    net loss of $(1.0) million
  *Earnings from continuing operations of $0.07 per diluted share, an
    increase from a net loss of $(.04)

Revenues in the first quarter of 2014 were $26.9 million, a decrease of 46%
from $49.8 million from the prior year period, which included the revenue from
the EPCM business sold in August of 2013. On a comparable basis, revenue from
the continuing businesses increased 33% from $20.2 million in the first
quarter of 2013. ENGlobal reported net income from continuing operations of
$1.8 million, or $0.07 per diluted share, for the quarter ended March 29,
2014, compared to a net loss from continuing operations of $(1.0) million, or
$(0.04) per diluted share, for the quarter ended March 30, 2013. During the
quarter ended March 29, 2014, the company incurred non-cash expenses for
depreciation, amortization and stock compensation expense of $0.7 million as
compared to $0.6 million for the same period in 2013.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "I believe we are
beginning to see the results of the initiatives that we began undertaking in
late 2012 and early 2013. We have pared the company down to a smaller, more
focused operation, and reduced the risk profile of the projects we are
undertaking, and are maintaining strict control over our overhead costs. As a
result, our margins are improving. We have no borrowings under our current
credit facility and have maintained a healthy cash balance during the quarter.
While there is always room for improvement, I believe we are in a strong
financial position and poised for future growth."

"I can't be more proud of the significant progress we have made, which is
reflected in today's report," said William Coskey, P.E., Chairman and Chief
Executive Officer of ENGlobal. "I would like to thank all of our stakeholders
– our valued customers, employees and investors – for their continued

The following table illustrates the composition of the Company's revenue and
profitability for its operations for the three months ended March 29, 2014 and
March 30, 2013:

            Quarter Ended                      Quarter Ended
(dollars in  March 29, 2014                     March 30, 2013
                            Gross  Operating                 Gross  Operating
            Total     % of    Profit Profit    Total     % of    Profit Profit
                       Total                              Total
Segment      Revenue   Revenue Margin Margin    Revenue   Revenue Margin Margin
&            $12,763 47.4%   18.4%  10.1%     $10,544 21.2%   11.7%  4.8%
Automation   14,135    52.6%   26.5%  21.5%     9,651     19.4%   20.5%  9.9%
Operations   --        --      --     --        29,568    59.4%   8.8%   5.1%
Consolidated $26,898 100.0%  22.6%  16.1%     $49,763 100.0%  11.7%  6.0%

The following table presents certain balance sheet items as of March 29, 2014
and March 30, 2013:

(dollars in thousands)  As of March 29,2014 As of March 30,2013
Cash                    $5,530              $1,025
Working capital         15,571              14,146
Credit facility balance --                  20,242

The Company's Quarterly Report on Form 10-Q for the quarter ended March 29,
2014 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)our ability to execute to our internal performance plans such
as our post-divestiture outlook, productivity improvement and cost containment
initiatives; (2)our ability to comply with the terms under our credit
facility; (3)our ability to achieve profitability and sustainable positive
cash flow from operations; (4)our ability to realize revenue projected in our
backlog and our ability to collect accounts receivable and process accounts
payable in a timely manner; (5)our ability to respond appropriately to the
current worldwide economic situation and the resulting decrease in demand for
our services; (6) operational and political risks in Russia and Kazakhstan
along the Caspian Sea, (7)our ability to achieve our business strategy while
effectively managing costs and expenses; (8)the effect of changes in the
prices of oil and natural gas; (9)delays related to contract awards; (10)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;
(11)the effect of changes in accounting policies and practices as may be
adopted by regulatory agencies; (12) our ability to maintain adequate internal
controls; (13)the effect on our competitive position within our market area
in view of, among other things, competitive pricing pressure; and (14)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.

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CONTACT: Mark A. Hess
         (281) 878-1040

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