ENGlobal Corp. (ENG) Shares Spike on Strong Financial PerforENGlobal Corp. (ENG) Shares Spike on Strong Financial Performance in Q4, FY14
Shares of ENGlobal surged more than 5% in Thursday’s early trade as the global provider of engineering and automation services opened its books for the fourth quarter and fiscal year ended December 27, 2014, reporting increases across the board and a turn to profit for full-year 2014.
Fourth-quarter revenue increased 6.3% to $26.9 million compared to $25.3 million in the fourth quarter of 2013. Net income from continuing operations was $0.8 million, or $0.03 per diluted share, compared to income of $0.4 million, or $0.02 per diluted share, for the comparable quarter of 2013.
During the quarter ended December 27, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation of $0.6 million as compared to $0.7 million for the comparable period in 2013.
For the 12 months of 2014 ENGlobal reports revenue from continuing businesses at $107.9 million, up 21.1% compared to $89.1 million for the fiscal year ended December 28, 2013. The sale of the Gulf Coast EPCM business in August of 2013 contributed $79.8 million of revenues for fiscal 2013. Fiscal year 2014 net income from continuing operations was $6.0 million, or $0.22 per diluted share, compared to a loss of $2.3 million, or a loss of $0.08 per diluted share, for fiscal 2013.
During the fiscal year ended December 27, 2014, the company incurred non-cash expenses for depreciation, amortization and stock compensation of $2.7 million as compared to $2.2 million for the comparable period in 2013.
“We are proud to have exceeded our financial targets for 2014, which was driven by an increase in margins, consistent project execution, as well as internal growth. We maintained a substantial cash balance and had no borrowings from our working capital lines during 2014. We also successfully replaced our credit facility with a similar three-year facility that will help provide the working capital needed to further our growth,” Mark Hess, ENGlobal’s chief financial officer, stated in the news release.
ENGlobal chairman and Chief Executive Officer William Coskey, P.E. thanked company employees and said the positive results encourage additional growth.
“I would like to sincerely congratulate the outstanding men and women of ENGlobal for their contributions toward a successful 2014. We will not be immune to some industry headwinds during 2015, but are currently encouraged by the continued level of spending by our largely midstream and downstream clientele. Having regained our footing once again, we now expect to explore acquisition opportunities for external growth,” Coskey stated.
For more information, visit www.ENGlobal.com
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