| ENGlobal Reports Third Quarter 2014 Results | |
HOUSTON, Nov. 6, 2014 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and automation services, today announced its financial results for the third quarter and nine months ended September 27, 2014. 2014 Third Quarter Highlights for Continuing Operations as compared to 2013 Third Quarter results:- Revenue of $26.9 million, a 17.0% increase from comparable operations
- Gross profit margin of 22.6%, an increase of 640 basis points from comparable operations
- Net income from continuing operations of $1.8 million, an increase from a net loss of $0.1 million
- Earnings of $0.07 per diluted share from continuing operations, an increase from $0.00 earnings per diluted share
On a comparable basis, revenue from the continuing businesses increased to $26.9 million or a 17.0% increase from $23.0 million in the third quarter of 2013. ENGlobal reported net income from continuing operations of $1.8 million, or $0.07 per diluted share, for the quarter ended September 27, 2014, compared to a loss of $0.1 million from continuing operations or $0.00 per diluted share, for the quarter ended September 28, 2013. During the quarter ended September 27, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation expense of $0.7 million as compared to $0.5 million for the comparable period in 2013. 2014 Nine Months Highlights for Continuing Operations as compared to 2013 Nine Months results:- Revenue of $81.0 million, a 26.8% increase from comparable operations
- Gross profit margin of 22.2%, an increase of 700 basis points from comparable operations
- Net income from continuing operations of $5.2 million, an increase from a net loss of $2.6 million
- Earnings of $0.19 per diluted share from continuing operations, an increase from a loss of $0.10 per diluted share
On a comparable basis, revenue from the continuing businesses increased to $81.0 million for the nine months ended September 27, 2014 or a 26.8% increase from $63.9 million for the nine months ended September 28, 2013. ENGlobal reported net income from continuing operations of $5.2 million, or $0.19 per diluted share, for the nine months ended September 27, 2014, compared to a loss of $2.6 million from continuing operations or $0.10 per diluted share, for the nine months ended September 28, 2013. During the nine months ended September 27, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation expense of $2.1 million as compared to $1.6 million for the comparable period in 2013. Management's AssessmentMark Hess, ENGlobal's Chief Financial Officer, said: "We are continuing to see positive results from initiatives that have been undertaken at ENGlobal over the last two years. Our improved performance is best demonstrated by a significant increase in margins, consistent project execution, as well as substantial internal growth in our continuing operations. We maintained a substantial cash balance and had no borrowings during the quarter. We also successfully replaced our current credit facility on September 16 th with a similar three year facility that will help provide the working capital to sustain our growth." William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal added: "ENGlobal is continuing to perform well, both operationally and financially, as evidenced by this fourth consecutive quarter of profitability. All stakeholders in our Company can and should take pride in the significant turnaround that we together have accomplished over the last two years. Our solid financial footing now gives us an excellent base from which to extend our Company's growth." The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended September 27, 2014 and September 28, 2013: | | Quarter Ended | Quarter Ended | | (in thousands) | September 27, 2014 | September 28, 2013 | | | | % 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 | $ 12,350 | 45.9% | 12.9% | 5.8% | $ 11,622 | 26.8% | 13.3% | 6.3% | | Automation | 14,577 | 54.1% | 30.8% | 25.6% | 11,397 | 26.3% | 6.9% | 10.8% | | Operations Sold | -- | --% | --% | --% | 20,279 | 46.9% | 9.2% | 3.7% | | Consolidated | $ 26,927 | 100.0% | 22.6% | 7.7% | $ 43,298 | 100.0% | 12.0% | 0.0% |
The following table illustrates the composition of the Company's revenue and profitability for its operations for the nine months ended September 27, 2014 and September 28, 2013: | | Nine Months Ended | Nine Months Ended | | (in thousands) | September 27, 2014 | September 28, 2013 | | | | % 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 | $ 37,742 | 46.6% | 16.6% | 9.0% | $ 32,526 | 22.6% | 12.2% | 4.4% | | Automation | 43,252 | 53.4% | 27.0% | 22.0% | 31,344 | 21.8% | 18.3% | 9.0% | | Operations Sold | -- | --% | --% | --% | 79,839 | 55.6% | 8.5% | 5.0% | | Consolidated | $ 80,994 | 100.0% | 22.2% | 6.9% | $ 143,709 | 100.0% | 11.5% | (0.9)% |
The following are certain key operating statistics for the last four quarters. Because the Company has come through a significant change, this information may be helpful in analyzing our ongoing business (in thousands): | | 2013 | 2014 | Trailing | | | Q4 | Q1 | Q2 | Q3 | Twelve Months | | Revenue | $ 25,253 | $ 26,898 | $ 27,170 | $ 26,927 | $ 106,248 | | Gross Profit | 4,787 | 6,084 | 5,790 | 6,083 | 22,744 | | Gross Profit Percentage | 19.0% | 22.6% | 21.3% | 22.6% | 21.4% | | General & Administrative Expenses | 4,298 | 4,119 | 4,246 | 4,000 | 16,663 | | Operating Income | 489 | 1,965 | 1,544 | 2,083 | 6,081 |
The following table presents certain balance sheet items as of September 27, 2014 and September 28, 2013: | (in thousands) | As of September 27, 2014 | As of December 28, 2013 | | Cash | $ 5,741 | $3,955 | | Working capital | 18,959 | 11,319 | | Credit facility balance | -- | -- |
The Company's Quarterly Report on Form 10-Q for the quarter ended September 27, 2014 will be filed with the Securities and Exchange Commission today reflecting these results. About ENGlobalENGlobal (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 StatementsThe 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 new credit facility; (3) our ability to sustain profitability and 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) operational and political risks in Russia and Kazakhstan along the Caspian Sea; (6) the effect of changes in the prices of oil and natural gas; (7) 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 (8) 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.Click here to join our email list: http://www.b2i.us/irpass.asp?BzID=702&to=ea&s=0CONTACT: Mark A.
Hess
(281) 878-1040
ir@ENGlobal.com 
| | CII Southern Region
Annual Conference on Industrial Automation – 3rd Edition
Automation in Discrete Manufacturing -
Current Practices & Emerging Trends | 9 December 2014 : Hotel Taj Coromandel, Chennai | Introduction | Objective | India's journey to achieve a 15% growth in manufacturing sector on a sustained basis requires a skillful adoption of automation technologies to raise productivity, consistency and effectively manage the complexities of varying business cycles. The benefits of 'real-time' industrial automation accrues not only to large industry (OEM) but also the connected supply chain which includes medium and small scale industry partners. The 'automation advantage' is not only seen in our automotive industry but also in several other growth sectors like defence production, food processing, pharma, packaging, FMCG etc. In the emerging competitive and dynamic market environment, integration via automation is a critical value adder, as it allows the machine and human to systematically exchange intelligence and respond with speed and superior performance. These attributes are essential for any business to grow and compete globally. To address the evolving learning needs, CII Southern Region is organizing the Annual Industrial Automation Conference Automation in Discrete Manufacturing - Current Practices & Emerging Trends on 9th December 2014 at Hotel Taj Coromandel, Chennai. | · To understand the latest technologies, trends and challenges in understanding the various aspects of industrial automation and process control in manufacturing to drive operational excellence and productivity improvements. · To connect participants to the key technology players in the sector · Explore possibilities of meeting the decision makers of automation manufacturers/solution providers to create new business models. · To understand companies present scenario and future growth | | The Program Sessions | Participants Profile | Inaugural Session: Current Trends and Future Forecasts for Automation Technologies Session-I: Zero Defect Zero Effect · Case Study Presentation on Automation Tools to Enhance & Manage Productivity, Quality & Safety Session-II: Gearing up with Smarter Choices in Automation · Effective automation solutions for Smart Factories · Quality Management by Automation - a smarter choice · Innovation in Material Handling and Robotic Systems Session-III: Plant integration and Remote Supervision · Machine inter-connectivity standards & best practices · Asset Tracking and Tracing · Effectiveness of Cloud Computing and Analytics Session-IV: Panel Discussion on Preparing the Company for Automation · Emerging Role changes and Sensitizing the Management and Employees · Skill Building approaches to Maintain & Sustain the use of the Automation Systems · Role of the entrepreneur | · Top officials/middle Middle Level managers from the Operations, Engineering, Maintenance and Procurement Division · Manufacturing systems/IT & networking professionals · Industrial systems and machinery designers, systems integrators, automation and control engineers · Software development engineers for the discrete and process production industries · Software development engineers for the discrete and process production industries | Delegate Fee | CII Member (Including 12.36% Service Tax) · Large & Medium Scale: Rs 2809/- per delegate · SSI & Academic Institution: Rs 1685/- per delegate Non-Member (Including 12.36% Service Tax) · Large Scale: Rs. 3933/- per delegate · SSI: Rs 2247/- per delegate | Note | Contact | · DD/Cheque should be drawn in favour of Confederation of Indian Industry payable in Chennai · Participation fee is non-refundable. However, change in nomination is acceptable and the online registration is a must for changed nominations. · This is a non-residential programme. · To raise invoice email request along with the PAN & TAN No. to be sent to CII Coordinator · In case if you are unable open the link, call the CII coordinator for registration process | Mrs Vedha Murali
Deputy Director
Confederation of Indian Industry
98/1 Velachery Main Road, Guindy, Chennai 600032
Tel: 044-42444555 extn 531 Fax: 044-42444510
Email: vedha.murali@cii.in Mob: 9884377349 | Knowledge Partner | I strongly recommend for suitable nominations to the Conference. Kind regards Ashok Rao
Chairman, Conference on Industrial Automation 2013 &
Co-Chairman, Manufacturing Competitiveness Sub-Committee, CII-SR &
Managing Partner, KGK Engineering | | | |
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