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ENGlobal Corp. (ENG) Posts Q1 Financial Results

ENGlobal, a Houston-based and top-ranked provider of engineering and automation services, today posted its first-quarter 2015 financial results.

First-quarter revenues of $23.1 million represent a decrease of 14.1% from revenues of $26.9 million a year ago. Net income for the first quarter of 2015 was $0.6 million, or $0.02 per diluted share, compared to net income of $1.8 million, or $0.07 per diluted share, for the comparable quarter of 2014.

During the quarter ended March 28, 2015, ENGlobal incurred non-cash expenses for depreciation, amortization and stock compensation of $0.6 million as compared to $0.7 million for the same period last year.

“The recent downturn in energy commodity prices has negatively impacted our business thus far in 2015 by contributing to cancellations of upstream related orders at the beginning of the first quarter. We expect continued softness in our business until overall project activity in the energy sector improves,” said ENGlobal CFO Mark Hess.

Despite lower sales and earnings, Hess says the company is pivoting from a healthy financial position that allow for sustainability.

“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. In addition, notes receivable totaling $5.1 million were collected after the end of the quarter, contributing significantly to our cash position. While there is always room for improvement, I believe we are in a strong financial position and poised for future growth,” he stated.

ENGlobal CEO William Coskey, P.E., noted how strategic corporate initiatives have contributed to the company’s profitability amid industry challenges.

“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,” he stated. “These and other actions have allowed the company to remain profitable, with positive cash flow during this downturn.”

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