Nevada
|
|
001-14217
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|
88-0322261
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(State
or other jurisdiction
of
incorporation)
|
|
(Commission
File
Number)
|
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(IRS
Employer
Identification
No.)
|
654 N. Sam Houston Parkway E., Suite 400,
Houston, Texas
|
|
77060-5914
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(Address
of principal executive offices)
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(Zip
Code)
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Title
of each class
|
Trading
Symbol(s)
|
Name of
each exchange on which registered
|
Common Stock, $0.001 par value
|
ENG
|
The Nasdaq Stock Market LLC
|
Exhibit No.
|
Description
|
Press release dated
August 6, 2020
|
|
ENGlobal
Corporation
|
|
|
|
|
|
|
Date: August 6,
2020
|
By:
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/s/ Mark A. Hess
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|
|
|
Mark A. Hess
|
|
|
|
Chief
Financial Officer, Treasurer and Corporate
Secretary
|
|
Exhibit No.
|
Description
|
Press release dated
August 6, 2020
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|
For the Three
Months Ended
|
For the Six Months
Ended
|
||
|
June 27,
2020
|
June 29,
2019
|
June 27,
2020
|
June 29,
2019
|
Revenue
|
$17,882
|
$13,621
|
$37,142
|
$25,784
|
Gross
profit
|
2,453
|
1,942
|
5,713
|
3,280
|
Selling, general
and administrative expenses
|
2,314
|
2,450
|
4,447
|
4,755
|
Operating profit
(loss)
|
139
|
(508)
|
1,266
|
(1,475)
|
Net income
(loss)
|
68
|
(517)
|
1,169
|
(1,491)
|
|
Three Months
Ended
|
Three Months
Ended
|
||||||
(amounts in
thousands)
|
June 27,
2020
|
June 29,
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
|
$6,632
|
37.1%
|
9.7%
|
0.5%
|
$5,659
|
41.5%
|
14.6%
|
4.2%
|
Automation
|
11,250
|
62.9%
|
16.1%
|
12.8%
|
7,962
|
58.5%
|
14.0%
|
9.1%
|
Consolidated
|
17,882
|
100.0%
|
13.7%
|
0.8%
|
13,621
|
100.0%
|
14.3%
|
(3.7)%
|
|
Six Months
Ended
|
Six Months
Ended
|
||||||
(amounts in
thousands)
|
June 27,
2020
|
June 29,
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
|
$11,755
|
31.6%
|
7.9%
|
(3.0)%
|
$11,292
|
43.8%
|
13.3%
|
2.9%
|
Automation
|
25,387
|
68.4%
|
18.9%
|
16.1%
|
14,492
|
56.2%
|
12.3%
|
6.6%
|
Consolidated
|
37,142
|
100.0%
|
15.4%
|
3.4%
|
25,784
|
100.0%
|
12.7%
|
(5.7)%
|
(amounts in
thousands)
|
As
of
June 27,
2020
|
As
of
December 28,
2019
|
Cash and cash
equivalents
|
$14,401
|
$8,307
|
Working
capital
|
16,066
|
11,289
|
|
For the Three
Months Ended
|
For the Six Months
Ended
|
||
|
June 27,
2020
|
June 29,
2019
|
June 27,
2020
|
June 29,
2019
|
Operating
revenues
|
$17,882
|
$13,621
|
$37,142
|
$25,784
|
Operating
costs
|
15,429
|
11,679
|
31,429
|
22,504
|
Gross
profit
|
2,453
|
1,942
|
5,713
|
3,280
|
|
|
|
|
|
Selling, general
and administrative expenses
|
2,314
|
2,450
|
4,447
|
4,755
|
Operating
profit (loss)
|
139
|
(508)
|
1,266
|
(1,475)
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
Other income,
net
|
1
|
26
|
2
|
41
|
Interest expense,
net
|
(36)
|
(4)
|
(41)
|
(6)
|
Income
(loss) from operations before income taxes
|
104
|
(486)
|
1,227
|
(1,440)
|
|
|
|
|
|
Provision
for federal and state income taxes
|
36
|
31
|
58
|
51
|
|
|
|
|
|
Net
income (loss)
|
68
|
(517)
|
1,169
|
(1,491)
|
|
|
|
|
|
Basic
and diluted income (loss) per common share:
|
$0.00
|
$(0.02)
|
$0.04
|
$(0.05)
|
|
|
|
|
|
Basic
and diluted weighted average shares used in computing income (loss)
per share:
|
27,413
|
27,408
|
27,413
|
27,420
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|
June 27,
2020
|
December 28,
2019
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ASSETS
|
|
|
Current
Assets:
|
|
|
Cash
|
$14,401
|
$8,307
|
Trade receivables,
net of allowances of $270 and $236
|
9,866
|
11,435
|
Prepaid expenses
and other current assets
|
391
|
889
|
Contract
assets
|
5,118
|
3,862
|
Total Current
Assets
|
29,776
|
24,493
|
Property
and equipment, net
|
1,192
|
1,033
|
Goodwill
|
720
|
720
|
Other
assets
|
|
|
Right of use
asset
|
2,367
|
2,133
|
Deposits and other
assets
|
461
|
307
|
Total Other
Assets
|
2,828
|
2,440
|
Total
Assets
|
$34,516
|
$28,686
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
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|
Current
Liabilities:
|
|
|
Accounts
payable
|
$3,095
|
$3,261
|
Accrued
compensation and benefits
|
3,760
|
2,783
|
Current portion of
leases
|
1,605
|
1,041
|
Contract
liabilities
|
2,329
|
5,438
|
Current portion of
note
|
2,212
|
—
|
Other current
liabilities
|
709
|
681
|
Total Current
Liabilities
|
13,710
|
13,204
|
Long-term
debt
|
4,158
|
—
|
Long-term
leases
|
1,323
|
1,458
|
Total
Liabilities
|
19,191
|
14,662
|
Commitments
and Contingencies (Note 8)
|
|
|
Stockholders’
Equity:
|
|
|
Common stock -
$0.001 par value; 75,000,000
shares authorized; 27,413,626 shares issued and outstanding at June
27, 2020 and December 28, 2019
|
27
|
27
|
Additional paid-in
capital
|
37,066
|
36,934
|
Accumulated
deficit
|
(21,768)
|
(22,937)
|
Total
Stockholders’ Equity
|
15,325
|
14,024
|
Total Liabilities
and Stockholders’ Equity
|
$34,516
|
$28,686
|
|
For the Six Months
Ended
|
|
|
June 27,
2020
|
June 29,
2019
|
Cash
Flows from Operating Activities:
|
|
|
Net income
(loss)
|
$1,169
|
$(1,491)
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
Depreciation and
amortization
|
205
|
177
|
Share-based
compensation expense
|
132
|
32
|
Changes in current
assets and liabilities:
|
|
|
Trade accounts
receivable
|
1,569
|
2,022
|
Contract
assets
|
(1,256)
|
985
|
Prepaids and other
current assets
|
344
|
492
|
Accounts
payable
|
(166)
|
(16)
|
Accrued
compensation and benefits
|
977
|
192
|
Contract
liabilities
|
(3,109)
|
2,046
|
Income taxes
payable
|
219
|
(430)
|
Other current
liabilities, net
|
(192)
|
(44)
|
Net cash provided
by (used in) operating activities
|
$(108)
|
$3,965
|
|
|
|
Cash
Flows from Investing Activities:
|
|
|
Proceeds from notes
receivable
|
—
|
5
|
Property and
equipment acquired
|
(126)
|
(72)
|
Net cash used in
investing activities
|
$(126)
|
$(67)
|
|
|
|
Cash
Flows from Financing Activities:
|
|
|
Purchase of common
stock
|
—
|
(61)
|
Proceeds from PPP
loan
|
4,925
|
—
|
Proceeds from
revolving credit facility
|
1,445
|
—
|
Payments on finance
leases
|
(42)
|
(1)
|
Net cash provided
by (used in) financing activities
|
$6,328
|
$(62)
|
Net change in
cash
|
6,094
|
3,836
|
Cash
at beginning of period
|
8,307
|
6,060
|
Cash
at end of period
|
$14,401
|
$9,896
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
Cash paid during
the period for interest
|
$12
|
$9
|
Right of use assets
obtained in exchange for new operating lease liability
|
$1,182
|
$2,619
|
Cash paid during
the period for income taxes (net of refunds)
|
$86
|
$—
|
Debt issuance
costs
|
$131
|
$—
|