Form 8-K ENGLOBAL CORP For: May 07

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May 7, 2015 6:56 AM EDT

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 7, 2015 

ENGlobal Corporation
(Exact name of registrant as specified in its charter)

Nevada 001-14217 88-0322261
(State or other jurisdiction
of incorporation) 		(Commission File Number) (IRS Employer Identification No.)

654 N. Sam Houston Parkway E., Suite 400, Houston, Texas 77060-5914
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code:   281-878-1000

________________________________________________________________________________
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

    [   ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    [   ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    [   ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    [   ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On May 7, 2015, ENGlobal Corporation issued a press release reporting its first quarter 2015 results of operations, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

    Exhibit 99.1.       Press release dated May 7, 2015

SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

    ENGlobal Corporation
(Registrant)
May 7, 2015
(Date)		   /s/   TAMI L. WALKER
Tami L. Walker
General Counsel and Secretary

  Exhibit Index
  99.1 Press release dated May 7, 2015






EXHIBIT 99.1

ENGlobal Reports First Quarter 2015 Results

HOUSTON, May 7, 2015 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq: ENG), a leading provider of engineering and automation services, today announced its financial results for the first quarter ended March 28, 2015.

HIGHLIGHTS OF CONTINUING OPERATIONS:

  • Revenue of $23.1 million
  • Gross profit margin of 17.8%
  • Net income of $0.02 per diluted share

Revenues in the first quarter of 2015 were $23.1 million, a decrease of 14.1% from $26.9 million in the prior year period. ENGlobal reported net income of $0.6 million, or $0.02 per diluted share, for the quarter ended March 28, 2015, compared to net income of $1.8 million, or $0.07 per diluted share, for the quarter ended March 29, 2014. During the quarter ended March 28, 2015, the Company incurred non-cash expenses for depreciation, amortization and stock compensation of $0.6 million as compared to $0.7 million for the same period in 2014.

Management's Assessment

Mark Hess, ENGlobal's Chief Financial Officer, said: "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."

Mr. Hess continued: "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."

"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," said William Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "These and other actions have allowed the Company to remain profitable, with positive cash flow during this downturn."

The following table illustrates the composition of the Company's revenue and profitability for its operations for the three months ended March 28, 2015 and March 29, 2014:

  Three Months Ended Three Months Ended
(dollars in thousands) March 28, 2015 March 29, 2014


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 $13,298 57.6% 15.5% 10.0% $12,763 47.4% 18.4% 10.1%
Automation 9,804 42.4% 21.1% 13.9% 14,135 52.6% 26.5% 21.5%
Consolidated $23,102 100.0% 17.8% 0.5% $26,898 100.0% 22.6% 7.3%

The following table presents certain balance sheet items as of March 28, 2015 and March 29, 2014:

(dollars in thousands) As of March 28, 2015 As of March 29, 2014
Cash $6,029 $5,530
Working capital 24,405 15,571
Credit facility balance — —

The Company's Quarterly Report on Form 10-Q for the quarterly period ended March 28, 2015 will be filed with the Securities and Exchange Commission today reflecting these results.

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 the Engineering segment, ENGlobal's Government Services group provides engineering, design, installation and operation and maintenance of various government, public sector and international facilities, and specializes in the turnkey installation and maintenance of 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 regarding 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 including, but not limited to: (1) the effect of economic downturns and the volatility of oil and natural gas prices and significantly depressed oil prices since the end of 2014; (2) our ability to execute to our internal performance plans such as our post-divestiture outlook, productivity improvement and cost containment initiatives; (3) our ability to attract and retain key professional personnel; (4) our ability to retain existing customers and attract new customers; (5) our ability to realize revenue projected in our backlog and our ability to collect accounts receivable and process accounts payable in a timely manner; (6) our ability to identify, consummate and integrate potential acquisitions; (7) our reliance on third-party subcontractors and equipment manufacturers; (8) our ability to sustain profitability and positive cash flow from operations; (9) our ability to comply with the terms of our new credit facility; (10) operational and political risks in Russia and Kazakhstan along the Caspian Sea; (11) the effect of changes in laws and regulations with which the Company must comply and the associated costs of compliance with such laws and regulations; and (12) the effect of changes in accounting policies and practices as may be adopted by regulatory agencies. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in ENGlobal's filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements set forth in the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.

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CONTACT: Mark A. Hess
         (281) 878-1040
         [email protected]

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