In recent weeks, ENGlobal Corporation (NASDAQ: ENG) has
provided prospective shareholders with a glimpse into its considerable growth
potential. Despite slumping energy prices, the company demonstrated its
versatility in the second quarter of 2015 by recording its sixth straight
quarter of profitability. This accomplishment is validation of ENGlobal’s
recent efforts to streamline its operations while continuing to promote market
growth. In particular, the company has maintained strict levels of control over
overhead costs in its two operating segments – engineering, procurement and
construction management (EPCM) and automation – while continuing to closely
monitor the spending of its clients.
“ENGlobal’s profit margins remain respectable given the
current environment, and our available capital has improved over the last
year,” Mark Hess, chief financial officer of ENGlobal, stated in a news release
earlier this month. “The Company continues to maintain a healthy cash balance
and working capital of $25.4 million, and we have no borrowings under our
current credit facility.”
In the company’s quarterly report, it highlighted the high
level of proposal activity it’s seen in recent months, which could provide an
indication as to its market potential moving forward. By minimizing costs,
ENGlobal has ensured that its services have remained very competitive while it
continues to focus on marketing centered on its differentiated products and
services. Additionally, the company has been vocal about the possibility of
capitalizing on current energy market conditions by purchasing proprietary or
differentiated technologies or processes in order to increase the marketability
of its unique portfolio in the future.
“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. “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.”
With a strong balance sheet in place, ENGlobal will lean on
the immense industry experience of its management team as it looks to adapt to
current market conditions. In total, the company’s leadership team brings well
over a century of combined experience to the table. William Coskey, the
company’s president and CEO, has served in his current position since 2012, and
he has been with ENGlobal in some capacity since its founding in 1985. This
management stability should provide the company with an advantage as it looks
to navigate the current energy market.
The company’s ability to remain profitable despite slumping
oil and gas prices is a positive indication of its potential in the months to
come. Look for ENGlobal to continue limiting unnecessary costs while leveraging
the flexibility provided by its strong cash balance in order to explore
strategic acquisition opportunities in the months to come.
For more information, visit www.englobal.com
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