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ENGlobal Corp Reports Operating Results (10-Q)

August 10, 2009 | About:

ENGlobal Corp (ENG) filed Quarterly Report for the period ended 2009-06-30.

ENGlobal Corporation provides engineering automation systems field inspection and land management and regulatory services principally to the petroleum refining petrochemical pipeline production and process industries throughout the United States and internationally. It has very quickly become one of the fastest growing engineering firms in the United States. From its roots as a small local engineering and design company to its current position as an international organization ENGlobal has always focused on providing innovative cost-effective solutions. ENGlobal is organized to meet the total needs of our clients from a single individual for an in-plant assignment to large EPCm projects. ENGlobal Corp has a market cap of $111.91 million; its shares were traded at around $4.1 with a P/E ratio of 11.71 and P/S ratio of 0.23.

Highlight of Business Operations:

As a percentage of revenue, all other SG&A expense increased 1.3 percentage

points to 4.3% for the three months ended June 30, 2009, from 3.0% for the

comparable prior-year period. All other SG&A expense decreased

approximately $0.7 million, or 17.1%, to $3.4 million for the three months

ended June 30, 2009, from $4.1 million for the comparable prior-year

period. Decreases in all other SG&A were primarily the result of decreases

of $300,000 in incentive bonus accruals that we did not have this year due

to underperformance, $352,000 in salaries and employee related expenses,

$203,000 in professional services, and $45,000 in depreciation and

amortization expense, offset by increases of $134,000 in facilities

expenses and $130,000 in office expenses.



As a percentage of revenue, all other SG&A expense increased 0.5 percentage

points to 3.9% for the six months ended June 30, 2009, from 3.4% for the

comparable prior-year period. All other SG&A expense decreased

approximately $1.2 million, or 15.0%, to $6.8 million for the six months

ended June 30, 2009, from $8.0 million for the comparable prior-year

period. Decreases in all other SG&A were primarily the result of decreases

of $600,000 in incentive bonus accruals that we did not have this year due

to underperformance, $653,000 in salaries and employee related expenses,

$196,000 in professional services, and $76,000 in depreciation and

amortization expense, offset by increases of $220,000 in facilities

expenses and $149,000 in office expenses.



Detailed revenue:

Detail-design $ 22,140 66.2% $ 46,041 59.4% $ 52,646 69.2% $ 83,976 64.9%

Field services 9,944 29.7% 13,069 16.9% 20,437 26.9% 26,057 20.1%

Procurement services 71 0.2% 17,466 22.5% 380 0.5% 17,500 13.5%

Fixed-price 1,299 3.9% 903 1.2% 2,566 3.4% 1,975 1.5%

- - - -

Total revenue: $ 33,454 100.0% $ 77,479 100.0% $ 76,029 100.0% $ 129,508 100.0%



Gross profit: 2,753 8.2% 12,779 16.5% 7,369 9.7% 22,661 17.5%



Operating SG&A expense: 1,638 4.9% 2,262 2.9% 2,964 3.9% 3,557 2.7%

- - - -



Operating income: $ 1,115 3.3% $ 10,517 13.6% $ 4,405 5.8% $ 19,104 14.8%

= = = =



Read the The complete Report

Rating: 2.6/5 (5 votes)

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