ENGlobal, a Houston-based and
top-ranked provider of engineering and automation services, today posted its
first-quarter 2015 financial results.
First-quarter revenues of $23.1
million represent a decrease of 14.1% from revenues of $26.9 million a year
ago. Net income for the first quarter of 2015 was $0.6 million, or $0.02 per
diluted share, compared to net income of $1.8 million, or $0.07 per diluted
share, for the comparable quarter of 2014.
During the quarter ended March
28, 2015, ENGlobal incurred non-cash expenses for depreciation, amortization
and stock compensation of $0.6 million as compared to $0.7 million for the same
period last year.
“The recent downturn in energy
commodity prices has negatively impacted our business thus far in 2015 by
contributing to cancellations of upstream related orders at the beginning of
the first quarter. We expect continued softness in our business until overall
project activity in the energy sector improves,” said ENGlobal CFO Mark Hess.
Despite lower sales and
earnings, Hess says the company is pivoting from a healthy financial position
that allow for sustainability.
“We ended the first quarter with
a healthy cash balance and working capital of $24.4 million, and have no
borrowings under our current credit facility. In addition, notes receivable
totaling $5.1 million were collected after the end of the quarter, contributing
significantly to our cash position. While there is always room for improvement,
I believe we are in a strong financial position and poised for future growth,”
he stated.
ENGlobal CEO William Coskey,
P.E., noted how strategic corporate initiatives have contributed to the
company’s profitability amid industry challenges.
“We have pared the company down
to a smaller, more focused operation and reduced the risk profile of the
projects we are undertaking, in addition to controlling overhead costs,” he
stated. “These and other actions have allowed the company to remain profitable,
with positive cash flow during this downturn.”
For more information, visit
www.englobal.com
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