In its 29 years of operations, Houston-based ENGlobal has
emerged a leading provider of energy-related automation and engineering
services that serve the world’s energy and government sectors. Reflecting
successful strategic initiatives to move ENGlobal toward profitability, the
company demonstrated particular strength in fiscal 2014 with a
better-than-expected sprint toward higher revenues and turn to annual profit.
“We are proud to have exceeded our financial targets for
2014, which was driven by an increase in margins, consistent project execution,
as well as internal growth,” ENGlobal CFO Mark Hess stated in the company’s
earnings statement earlier this month. “We maintained a substantial cash
balance and had no borrowings from our working capital lines during 2014. We
also successfully replaced our credit facility with a similar three-year
facility that will help provide the working capital needed to further our
growth.”
Fiscal 2014 revenues increased 21.1% to $107.9 million
compared to revenues of $89.1 million in fiscal 2013, which included $79.8
million of revenues from the 2013 sale of the Gulf Coast EPCM business. The
company turned to profit for 2014 with net income of $6.0 million, or $0.22 per
diluted share, compared to a net loss of $2.3 million, or a loss of $0.08 per
share, for the year prior. In response, ENGlobal shares have gained 17%
year-over-year, trading in a 52-week range of $1.28-$4.22.
As noted by Hess, several factors contribute to the
company’s annual growth, including a steady pace of project completion. In
addition to its Houston, Texas headquarters, ENGlobal maintains offices in
Illinois, Oklahoma, Colorado and Alabama which employ a skilled workforce of
more than 400 professionals who operate within two primary divisions.
ENGlobal’s Automation segment, which includes integration
and engineering, provides fully integrated process, power and control solutions
as well as fabrication, programming, assembly, testing and documentation, all
of which are conducted in-house. General services specific to the engineering
side include the project management, construction management and construction
coordination of automation projects such as DCS migrations, plant
re-instrumentations and expansions, and grass roots instrument, electrical and
control system installation. The segment also provides loop check,
commissioning and start-up support of process control, power distribution and
generation, analytical and EPA- regulated systems.
The Engineering (EPCM) 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.
Complementary to its two chief operating segments, ENGlobal
also operates a Subsea Controls and Integration (SCI) group which provides
advanced process automation design, engineering service and equipment for the
effective integration of communication protocols between topsides production
facilities and subsea devices. The SCI team was initiated when a major global
E&P company set out to standardize the subsea process control environment.
In 2008, ENGlobal’s SCI group was commissioned to further develop the concept
commencing with a detailed design. Working together, they defined a long-term
vision and commercialization plan for a now patented Universal Master Control
Station (UMCS) that could communicate to virtually any subsea equipment.
Moving forward, ENGlobal management expects the company to
maintain the momentum of 2014 to rally through broader industry challenges in
the coming year and pursue additional avenues of development.
“We will not be immune to some industry headwinds during
2015, but are currently encouraged by the continued level of spending by our
largely midstream and downstream clientele. Having regained our footing once
again, we now expect to explore acquisition opportunities for external growth,”
stated company CEO William Coskey, P.E.
For more information, visit www.englobal.com
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