Conference Call To Discuss 2019 Results Scheduled Today at 9:00 am Eastern
Houston, March 26, 2020 (GLOBE NEWSWIRE) — ENGlobal Corporation (Nasdaq: ENG), a leading provider of engineered modular solutions, today announced that it achieved a profit of $741,000, or $.03 per share, in the fourth quarter of 2019 – the company’s first quarterly profit in five years. The company also announced it is currently on track for continued profitability in the first quarter of 2020.For the year ended December 28, 2019, the company had a net loss of $1,466,000, or $(.05) per share, on revenue of $56,446,000, compared with a net loss of $5,671,000, or $(.21) per share, on revenue of $53,996,000 for the year ended December 29, 2018. ENGlobal’s reduced annual loss – an improvement of 74 percent over 2018 – was primarily the result of the increased revenue and reduced operating cost and expenses in 2019 and a $2.1 million goodwill write off in 2018.At December 28, 2019, ENGlobal had cash on hand of $8.3 million compared to $6.1 million at December 29, 2018. The company has no significant debt.“The company’s turnaround,” said CFO Mark Hess, “is the direct result of our strategic shift away from performing on smaller project assignments toward higher-value modular process and automation systems supply contracts.”“These contracts – one of which is expected to contribute over $22 million in revenue and involves the production of clean hydrogen fuel as part of a renewable diesel production unit – are expected to permit ENGlobal to achieve higher revenues while leveraging overall operating costs,” Mr. Hess added.“We are extremely happy with our 2019 results,” commented CEO William A. Coskey, “in particular our crossover to profitability in the fourth quarter. Importantly, we are making good headway in adding to our list of established technology partners which adds to our differentiated capabilities.”“ENGlobal’s success in building these new relationships is expected to help us sign and perform the higher-value modular contracts that we are targeting, including the most attractive green and renewable energy projects. As a direct result of these strategic efforts and the roughly $10 to $250 million size installations we are targeting, we believe ENGlobal is well positioned for significant growth throughout this and future years,” he added.Going forward, ENGlobal is expected to benefit from several external trends, especially the nation’s accelerating dependence on the production of alternative and renewable energy. The company also sees continuing demand resulting from large process control and analytical equipment installations, as well as the U.S. Military’s increasing need to upgrade or replace its fueling systems.The Company does recognize we are in an unprecedented situation in regards to the COVID-19 virus. We are seeing city, county, and state governments issue stay at home mandates across the country, some of which are in cities where we have offices and employees. While most of our employees can telecommute, some cannot. Our challenge as a company is to stay productive and responsive to our clients while not being located at our normal workplace, in some cases. We are working through the logistics surrounding our employees in light of the recently issued Families First Coronavirus Response Act in order to minimize the impact to both the employee and the company. The following table illustrates the composition of the Company’s revenue and profitability for its operations for the fiscal years ended December 28, 2019 and December 29, 2018:The following table illustrates the composition of the Company’s revenue and profitability for its operations for the three months ended December 28, 2019 and December 29, 2018:The following is a summary of the Company’s statement of operations for the last four quarters which may be helpful in analyzing our ongoing business:The following table presents certain balance sheet items as of December 28, 2019 and December 29, 2018:For further information on ENGlobal’s 2019 financial results, please refer to its Form 10-K filing on the company’s website at www.englobal.com, or on the SEC’s website at www.sec.gov.Conference Call
Management will host a conference call today at 9:00am EDT to discuss the company’s 2019 financial results and outlook for 2020.To participate in the conference call, please dial (Toll Free) 844-369-8770 domestically or 862-298-0840 internationally, approximately 5-to-10 minutes before the beginning of the call. The conference call will also be broadcast live over the Internet and can be accessed at:
https://www.webcaster4.com/Webcast/Page/2272/33183You may access the teleconference replay by dialing (Toll Free) 877-481-4010 domestically or 919-882-2331 internationally, referencing conference ID 33183 or by visiting the company’s web site. The replay will be available shortly after the completion of the live event through 9:00am EDT on June 26, 2020.About ENGlobalENGlobal (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 ENGlobal’s Engineering segment, ENGlobal Government Services, Inc. provides engineering, design, installation, operations, and maintenance of various government, public sector, and international facilities, specializing in turnkey 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, its operations and certain other matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on the company’s current expectations and assumptions regarding the company’s business, the economy and other future conditions, and are subject to risks and uncertainties
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