While oil prices have hovered near six-year lows for the
majority of 2015, ENGlobal Corporation (NASDAQ: ENG) has continued to leverage
the considerable industry experience of its management team to promote strong
financial results. Last week, the company demonstrated the versatility and
marketability of its offerings when it announced that the second quarter of
2015 marked its sixth consecutive quarter of profitability.
“We are pleased to report today’s profitable results – which
I’m proud to say represent six consecutive profitable quarters,” Mark Hess,
chief financial officer of ENGlobal, stated in a news release. “ENGlobal’s
profit margins remain respectable given the current environment, and our
available capital has improved over the last year.”
In an effort to counteract the effects of slumping oil and
gas prices, ENGlobal’s management expertly adjusted the margins of its
engineering and construction operations in the second quarter. In addition to
decreasing gross profit margin by 2.5 percent, as compared to the previous
year, the company’s operating profit margin was reduced by 0.6 percent. These
adjustments allowed ENGlobal to remain competitive in less-than-ideal market
conditions, effectively promoting growth despite substantial industry
limitations.
Following the release of its financial results for the
second quarter, this strategy proved to be effective. For the period, ENGlobal
achieved a mild year-over-year increase in total revenue for its engineering
and construction segment, which serves a collection of energy sectors adversely
affected by the recent fall in commodity prices. In an effort to capitalize on
this progress, the company has recently turned its attention toward broadening
its industry presence through the development of new partnerships and the
exploration of potential acquisition candidates.
“ENGlobal’s response to the current energy marketplace has
been to increase our efforts in developing new business,” stated William
Coskey, P.E., chairman and chief executive officer of ENGlobal. “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.”
According to the its latest financial report, the company
has a healthy cash balance and working capital of approximately $25.4 million.
Additionally, ENGlobal reports no borrowings under its current credit facility.
The flexibility provided by this strong balance sheet will prove instrumental
to the company’s growth efforts moving forward, particularly as related to any
acquisition agreements that may be in the cards.
For prospective shareholders, ENGlobal’s financial performance
despite slumping commodity prices is a promising indication of its market
potential in the coming months. Look for the company to continue relying on the
considerable expertise of its leadership team – which includes well over a
century of combined industry experience – in order to continue successfully
navigating prevailing market conditions and promoting sustained profitability
for the foreseeable future.
For more information, visit www.englobal.com
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