Despite a downturn in energy
commodity prices, ENGlobal Corp. (NASDAQ: ENG) has industry analysts intrigued
after posting strong financial results for the first quarter of 2015.
“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,” stated Mark Hess, Chief
Financial Officer of ENGlobal. “While there is always room for improvement, I
believe we are in a strong financial position and poised for future growth.”
In an effort to remain
profitable despite a slumping market, the company has focused operations on
low-risk projects and minimized overhead costs. This positioning has
contributed to ENGlobal’s strong performance thus far in 2015. The company’s
Engineering and Construction division, in particular, has thrived in recent
months. According to first quarter results, the division realized growth of
more than four percent over the same period last year, providing promise of
strong shareholder returns when energy commodity prices rebound.
“We have pared the Company down
to a smaller, more focused operation,” stated William Coskey, Chairman and
Chief Executive Officer of ENGlobal. “These and other actions have allowed the
Company to remain profitable, with positive cash flow during this downturn.”
ENGlobal’s Engineering and
Construction group serves a collection of market sectors including alternative
energy, power generation and government. The company’s recent growth and
reputation for quality work have helped establish ENGlobal among the top
domestic design firms, claiming accolades from Engineering News Record,
Business Week magazine, The Houston Chronicle and American Executive magazine.
This performance has contributed to the company’s global reputation as a leading
designer of state-of-the-art plant automation systems.
In March, the company bolstered
this reputation through the announcement of a five year extension to its
Professional Services Agreement with Xcel Energy. A major U.S. electric and
natural gas company with annual revenue exceeding $10 billion, Xcel has teamed
with ENGlobal on a variety of substantial capital programs, including a 60 mile
West Main segment pipeline replacement. Continued confidence from clients in
the capabilities of ENGlobal will have a strong positive impact on the
company’s future expansion potential.
Moving forward, ENGlobal appears
to be poised for continued growth in the vital energy market. With one of the
industry’s most experienced management teams leading the way, the company is in
a strong position to deliver significant returns to shareholders in the years
to come.
For more information, visit
www.englobal.com
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