In the first quarter of 2015, ENGlobal Corp. (NASDAQ: ENG) demonstrated
its versatility, expertly navigating the recent downturn in energy commodity
prices despite the market’s softness.
“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,” 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 aided in these promising
results, recording over 57 percent of the company’s total revenue for the
quarter while receiving a gross profit margin of 15.5 percent by providing a
host of engineering, procurement, and construction management (EPCM) services.
In recent years, the company’s global reputation for consistently designing and
delivering complex midstream and downstream products has allowed ENGlobal to
carve out sustainable market share within the industry. This strong growth and
history of providing quality work has allowed the company to maintain a
constant presence on Engineering News Record’s annual list of the Top 500
engineering design firms for more than a decade.
In addition to a world-class safety performance record, the company’s
Engineering and Construction group has attained multiple alliance agreements
with leading industry clients. ENGlobal’s comprehensive range of services,
which includes everything from feasibility studies and conceptual design to
turnkey project responsibility, should ensure that the company continues to
improve its financial results alongside a recovering energy market.
“While there is always room for improvement, I believe we are in a
strong financial position and poised for future growth,” stated Mark Hess,
Chief Financial Officer of ENGlobal. “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.”
The company’s ability to remain profitable despite the continued
softness of the energy sector is a testament to the quality of ENGlobal’s
leadership team, and this leadership will remain imperative as market
conditions make initial movements towards recovery. Moving forward, it appears
likely that a continued focus on minimized overhead costs and low risk projects
will be vital to the company’s financial success in the months to come. As
gasoline prices continue to hover near their highest point since late in 2014,
ENGlobal’s growth will likely depend on the sustained improvement of overall
project activity in the energy sector.
For more information, visit www.englobal.com
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