ENGlobal Announces 2020 Financial Results

Investor Conference Call Scheduled Today at 9:00 am Eastern

HOUSTON, TX / ACCESSWIRE / March 11, 2021 / ENGlobal Corporation (NASDAQ:ENG), a leading provider of complete project solutions for renewable and traditional energy, today announced that, for the year ended December 26, 2020, the company posted a net loss of $625,000, or $(.02) per share, on revenue of $64,449,000, compared with a net loss of $1,466,000, or $(.05) per share, on revenue of $56,446,000 for the year ended December 28, 2019.

The company's $8.0 million, or 14.2 percent, improvement in revenue compared to the prior year was primarily the result of an increase in revenue from the Engineering, Procurement, Construction Management (EPCM) segment of $6.5 million, or 33.5 percent, to $25.9 million for 2020 as compared with $19.4 million in 2019. ENGlobal's continued performance on designing and delivering a complete modular hydrogen plant was largely responsible for this growth in revenue when compared to the prior year.

The company's reduced annual loss - an improvement of 57 percent over 2019 - was primarily the result of the increase in revenue and higher margin projects from the company's EPCM segment as well as a decrease of $0.5 million in SG&A expense year-over-year. However, COVID-related project delays and resulting inefficiencies experienced by the Company during the latter half of 2020 served to partially offset these improvements.

"I believe that ENGlobal is in a strong market position as we enter 2021", said newly appointed CEO Mark Hess. "First, we have extensive expertise in building renewable fuel process plants and facilities as well as over 35 years' experience in project execution in all sectors of the traditional oil and gas industry. Second, the company has successfully transitioned to vertically integrated project execution and delivery - including engineering and design to modular fabrication and automation integration. Third, despite the challenges posed by COVID in 2020, we made excellent progress in adding to our list of established technology and construction partners during the year. This accomplishment, in turn, has added to our differentiated capabilities - all of which we believe makes ENGlobal a more attractive, single source option for our clients' changing needs."

Mr. Hess continued: "Overall, we expect to have an increased ability to attract and perform the higher-value contracts that we are targeting, including the many attractive green and renewable energy projects in the $10 to $250 million range. As one metric of how our newly organized business model is just beginning to perform, the Company is now seeing a significant uptick in proposal activity with improving market conditions, with $278 million in proposals in process or issued to our clients already this year."

"During the latter half of 2020, many businesses were shut down, airlines were not flying and demand for many of our clients' products dwindled. Consequently, our business development efforts in many of our markets were severely hampered. Our backlog suffered as a result and we ended the year at about $24 million. Our focus the first part of this year is to rebuild our backlog as quickly as possible and we are investing heavily in our business development efforts to accomplish this goal."

At December 26, 2020, ENGlobal had cash on hand of $13.7 million compared to $8.3 million at December 28, 2019. The company's December 26, 2020 cash on hand included the proceeds from its previously disclosed $4.9 million PPP loan and borrowings of $1.5 million from its $6.0 million Revolving Credit Facility. The company expects the PPP loan to be entirely forgiven, and if so, only the Revolving Credit Facility would remain as debt.

The following table illustrates the composition of the Company's revenue and profitability for its operations for the fiscal years ended December 26, 2020 and December 28, 2019:

   Year Ended    Year Ended 
(amounts in thousands)  December 26, 2020    December 28, 2019 
Segment  Total Revenue    % of Total Revenue    Gross Profit Margin    Operating Profit (Loss) Margin    Total Revenue    % of Total Revenue    Gross Profit Margin    Operating Profit (Loss)Margin 
Engineering & Construction  25,929      40.2%    9.1%    (0.3)%  19,436      34.4%    8.4%    (4.3)%
Automation    38,520      59.8%    15.8%    11.7%    37,010      65.6%    17.0%    12.4%
Consolidated  64,449      100.0%    13.1%    (0.6)%  56,446      100.0%    14.0%    (2.5)%

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended December 26, 2020 and December 28, 2019:

   Three Months Ended    Three Months Ended 
(amounts in thousands)  December 26, 2020    December 28, 2019 
Segment  Total Revenue    % of Total Revenue    Gross Profit Margin    Operating Profit Margin    Total Revenue    % of Total Revenue    Gross Profit Margin    Operating Profit Margin 
Engineering & Construction  6,158      53.2%    17.5%    1.7%  3,888      23.3%    1.5%    (14.9)%
Automation    5,419      46.8%    23.3%    8.6%    12,800      76.7%    22.7%    19.2%
Consolidated    11,577      100.0%    20.2%    (5.3)%    16,688      100.0%    17.7%    4.6%

The following is a summary of the Company's statement of operations for the last four quarters which may be helpful in analyzing our ongoing business:

(amounts in thousands)


Fiscal Year













Gross Profit






Gross Profit Margin






General & Administrative Expenses






Operating Income (Loss)






Net Income (Loss)






The following table presents certain balance sheet items as of December 26, 2020 and December 28, 2019:

(amounts in thousands)  As ofDecember 26, 2020    As ofDecember 28, 2019 
Cash and restricted cash  13,706    8,307 
Working capital    14,039      11,289 

(amounts in thousands, except per share amounts)

   Year Ended December 26,    Year Ended December 28, 
   2020    2019 
Operating revenues  64,449    56,446 
Operating costs    55,998      48,530 
Gross profit    8,451      7,916 
Operating costs and expenses:               
Selling, general, and administrative expenses    8,834      9,317 
Operating loss    (383)    (1,401)
Other income (expense)               
Interest expense, net    (153)    (31)
Other income, net    14      49 
Loss before income taxes    (522)    (1,383)
Provision for federal and state income taxes    (103)    (83)
Net loss  (625)  (1,466)
Basic and diluted loss per common share  (0.02)  (0.05)
Basic and diluted weighted average shares used in computing loss per share:    27,474      27,414 

(amounts in thousands, except share amounts)

   December 26, 2020    December 28, 2019 
Current Assets:         
Cash  13,706    8,307 
Trade receivables, net of allowances of $386 and $236    7,789      11,435 
Prepaid expenses and other current assets    891      889 
Contract assets    4,090      3,862 
Total Current Assets    26,476      24,493 
Property and equipment, net    1,263      1,033 
Goodwill    720      720 
Other assets               
Right of use asset    1,628      2,133 
Deposits and other assets    351      307 
Total Other Assets    1,979      2,440 
Total Assets  30,438    28,686 
Current Liabilities:               
Accounts payable  2,138    3,261 
Accrued compensation and benefits    3,048      2,783 
Current portion of leases    1,541      1,041 
Contract liabilities    1,258      5,438 
Current portion of note    3,707      - 
Other current liabilities    745      681 
Total Current Liabilities    12,437      13,204 
Deferred payroll tax    1,037      - 
Long term debt    2,733      - 
Long term leases    608      1,458 
Total Liabilities    16,815      14,662 
Commitments and Contingencies (Note 15)               
Stockholders' Equity:               
Common stock - $0.001 par value; 75,000,000 shares authorized; 27,560,686 and 27,413,626 shares issued and outstanding at December 26, 2020 and December 28, 2019, respectively    28      27 
Additional paid-in capital    37,157      36,934 
Accumulated deficit    (23,562)    (22,937)
Total Stockholders' Equity    13,623      14,024 
Total Liabilities and Stockholders' Equity  30,438    28,686 

(amounts in thousands)

   Year Ended December 26, 2020    Year Ended December 28, 2019 
Cash Flows from Operating Activities:         
Net loss  (625)  (1,466)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:               
Depreciation and amortization    449      389 
Share-based compensation expense    223      61 
Changes in current assets and liabilities:               
Trade accounts receivable    3,646      (1,224)
Contract assets    (228)    (689)
Other current assets    (46)    245 
Accounts payable    (1,123)    89 
Accrued compensation and benefits    1,301      482 
Contract liabilities    (4,180)    4,834 
Income taxes payable    (57)    84 
Other current liabilities, net    121      (140)
Net cash provided by (used in) operating activities  (519)  2,665 
Cash Flows from Investing Activities:               
Proceeds from notes receivable    -      24 
Property and equipment acquired    (428)    (345)
Net cash used in investing activities  (428)  (321)
Cash Flows from Financing Activities:               
Purchase of stock    -      (61)
Payments on finance leases    (93)    (36)
Proceeds from PPP loan    4,949      - 
Proceeds from revolving credit facility    1,490      - 
Net cash provided by (used in) financing activities  6,346    (97)
Net change in cash    5,399      2,247 
Cash at beginning of year    8,307      6,060 
Cash at end of year  13,706    8,307 
Supplemental disclosure of cash flow information:               
Cash paid during the period for interest  153    33 
Right of use assets obtained in exchange for new operating lease liability  963    2,854 
Leased assets obtained in exchange for new finance lease liabilities  219    351 
Cash paid during the period for income taxes (net of refunds)$    86    26 

For further information on ENGlobal's 2020 financial results, please refer to its Annual Report on Form 10-K to be filed with the SEC later today and included on the company's website at www.englobal.com, or on the SEC's website at www.sec.gov.

Conference Call

Management will host a conference call today at 9:00am EST to discuss the company's 2020 financial results and outlook for 2021. To participate in the conference call, please dial in 5 to 10 minutes before the call:

(Toll Free) 888-506-0062 domestically, or 973-528-0011 internationally
Entry code: 441526

The conference call will also be broadcast live over the Internet and can be accessed at: https://www.webcaster4.com/Webcast/Page/2272/40284

The teleconference replay will be available shortly after the completion of the live event through 9:00am EST on March 18, 2021. You may access the replay by dialing (Toll Free) 877-481-4010 domestically, or 919-882-2331 internationally, and referencing conference ID 40284.

You may also access the replay by visiting the company's web site:


About ENGlobal

ENGlobal (NASDAQ:ENG) is a provider of engineering and automation services primarily to the energy sector throughout the United States and internationally. ENGlobal operates through two business segments: Automation and Engineering. ENGlobal's Automation segment provides services related to the design, fabrication and implementation of distributed control, instrumentation and process analytical systems. The Engineering segment provides consulting services for the development, management and execution of projects requiring professional engineering, construction management, and related support services. Within ENGlobal's Automation segment, ENGlobal Government Services, Inc. provides engineering, design, installation, operations, and maintenance of various government, public sector, and international facilities, specializing in turnkey automation and instrumentation systems for the U.S. Defense industry worldwide. Further information about the Company and its businesses is available at www.ENGlobal.com.

Safe Harbor for Forward-Looking Statements

The statements above regarding the Company's expectations, its operations and certain other matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties. All statements, other than statements of historical facts, included herein concerning, among other things, the Company's ability to attract and perform the higher-value contracts that it is targeting, the Company's ability to realize project awards or contracts on its pending proposals, and the anticipated forgiveness of the Company's PPP loan, are forward-looking statements. For a discussion of risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ENGlobal's filings with the Securities and Exchange Commission, including the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.

Click here to join our email list: https://www.englobal.com/investors/email-alerts/


Mark A. Hess
Phone: (281) 878-1000
E-mail: ir@ENGlobal.com

Market Makers - Investor Relations
Jimmy Caplan
Email: jimmycaplan@me.com

Market Makers - Media Relations
Rick Eisenberg
Email: eiscom@msn.com


View source version on accesswire.com:

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.