In the second quarter of 2015,
ENGlobal Corp. (NASDAQ: ENG) recorded its sixth straight quarter of profitable
results. In large part, these results were attributable to the consistent
performance of the company’s engineering and construction segment, which
accounted for over 61 percent of ENGlobal’s total revenue for the period.
Despite the recent drop in oil and gas prices, which continue to hover near
six-year lows, the segment’s performance was a mild improvement over the second
quarter of 2014, further highlighting the effectiveness of the company’s
current strategy aimed at expanding its market share and locating new clients
and business opportunities.
“ENGlobal’s response to the current
energy marketplace has been to increase our efforts in developing new
business,” William Coskey, P.E., chairman and chief executive officer of
ENGlobal, stated in a news release. “While we are excited about several new
opportunities and client relationships that this internal process has produced,
it also appears to be a great time to consider strategic acquisitions.”
In addition to its profitable
results in the second quarter, ENGlobal continues to maintain a favorable
balance sheet, which should give the company an opportunity to capitalize on
current market conditions through an aggressive pursuit of new client
relationships and potential strategic acquisitions. As of its latest filings,
ENGlobal reported a healthy cash balance and working capital of $25.4 million
with no borrowings under its current credit facility.
Over the past three decades,
ENGlobal has built a significant presence in a collection of energy markets
through its unique commitment to innovation and cost-effective automation. With
services ranging from feasibility studies and conceptual design to turnkey
project responsibility, the company has established itself as a mainstay among
the country’s top engineering firms. For this reason, ENGlobal has been ranked
by Engineering News Record magazine as a Top 500 engineering design firm for
more than 10 years.
ENGlobal’s strong results from its
engineering and construction segment were supplemented by the performance of
its automation segment. Although total revenue for the segment declined from
the results of the previous year, the company was able to increase the
segment’s gross profit margin by 7.4 percent in order to help it maintain
profitability for the quarter.
For prospective shareholders, the
company’s profitable results despite current market conditions continue to
highlight the immense value of its experienced management team. Moving forward,
look for ENGlobal to continue capitalizing on the opportunities presented by
the current condition of the energy marketplace in order to promote strong
results for the future.
For more information, visit www.englobal.com
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