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
