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SEGMENT INFORMATION
 3 Months Ended
Mar. 30, 2024
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 6 – SEGMENT INFORMATION

 

Our operating segments are strategic business units that offer our services and products to customers in their respective industries. The operating performance is regularly reviewed with operational leaders in charge of these segments, the Chief Executive Officer (“CEO”), the Chief Financial Officer (“CFO”) and others. This group represents the chief operating decision maker (“CODM”) for ENGlobal.

 

Our three operating segments are: (i) Automation, (ii) Engineering, and (iii) Government Services.

 

Our Automation group provides the design and programming of automated control systems as well as designs, fabricates, integrates and commissions modular systems that include remote instrumentation control stations, on-line process analytical data, continuous emission monitoring, and electric power distribution. Often these packaged systems are housed in a fabricated metal enclosure, modular building or freestanding metal rack, which are commonly included in our scope of work. We provide automation engineering, procurement, fabrication, systems integration, programing and on-site commissioning services to our clients for both new and existing facilities.

 

Our Engineering group focuses on providing engineering, procurement, construction, and automation services as well as fabricated products to downstream refineries and petrochemical facilities as well as midstream pipeline, storage and other transportation related companies. These services are often applied to small capital improvement and maintenance projects within refineries and petrochemical facilities. For our transportation clients, we work on facilities that include pumping, compression, gas processing, metering, storage terminals, product loading and blending systems. This group also provides engineering, fabrication and automation services to clients who have operations in the U.S. oil and gas exploration and development markets. The operations are usually associated with the completion, purification, storage and transmission of the oil and gas from the well head to the terminal or pipeline destination.

 

Our Government Services group provides services related to the engineering, design, installation and maintenance of automated fuel handling and tank gauging systems for the U.S. military across the globe.

 

We have two reportable segments: Commercial and Government Services. Our Engineering and Automation groups are aggregated into one reportable segment, Commercial.

 

Our corporate and other expenses that do not individually meet the criteria for segment reporting are reported separately as Corporate expenses.

 

Revenue, operating income, identifiable assets, capital expenditures and depreciation for each segment are set forth in the following table. The amount identified as Corporate includes those activities that are not allocated to the operating segments and include costs related to business development, executive functions, finance, accounting, safety, human resources and information technology that are not specifically identifiable with the segments.

 

Segment information is as follows (dollars in thousands):

 

 

 

Commercial

 

 

Government Services

 

 

Corporate

 

 

Consolidated

 

For the three months ended March 30, 2024:

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$4,389

 

 

 

2,139

 

 

 

—

 

 

 

6,528

 

Gross profit

 

 

350

 

 

 

114

 

 

 

—

 

 

 

464

 

Gross profit margin

 

 

8.0%

 

 

5.3%

 

 

 

 

 

 

7.1%

SG&A

 

 

720

 

 

 

106

 

 

 

1,191

 

 

 

2,017

 

Operating profit (loss)

 

 

(370)

 

 

8

 

 

 

(1,191)

 

 

(1,553)

Other income, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

222

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(43)

Tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,396)

 

 

Commercial

 

 

Government Services

 

 

Corporate

 

 

Consolidated

 

For the three months ended April 1, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$11,835

 

 

 

1,358

 

 

 

—

 

 

 

13,193

 

Gross loss

 

 

(1,602)

 

 

(220)

 

 

—

 

 

 

(1,822)

Gross loss margin

 

 

(13.5)%

 

 

(16.2)%

 

 

 

 

 

 

(13.8)%

SG&A

 

 

2,746

 

 

 

136

 

 

 

1,534

 

 

 

4,416

 

Operating loss

 

 

(4,348)

 

 

(356)

 

 

(1,534)

 

 

(6,238)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(72)

Tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,329)

 

Total assets by segment are as follows (dollars in thousands):

 

Total Assets by Segment

 

As of

March 30, 2024

 

 

As of

December 30, 2023

 

 

 

(dollars in thousands)

 

Commercial

 

$8,799

 

 

$11,740

 

Government Services

 

 

4,221

 

 

 

3,780

 

Corporate

 

 

3,019

 

 

 

3,267

 

Consolidated

 

$16,039

 

 

$18,787