ENGlobal Corporation Announces Year-End Results.HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- ENGlobal Corporation (AMEX AMEX See: American Stock Exchange :ENG ENG electronystagmography. ENG abbr. electronystagmography ENG enzootic nasal granuloma. ), a leading provider of engineering services, today reported record revenue and net income for its sixth consecutive year. For the fiscal year ended December December: see month. 31, 2004, net income increased to $2.4 million, or 10 cents per basic share, compared to net income of $2.2 million, or 9 cents per basic share, for the prior year. During 2004, the Company increased its total revenue 20.3% to $148.9 million in 2004 from $123.7 million in 2003. Revenue, gross profit and selling, general and administrative expenses ("SG&A") recognized from acquisitions during the first 12 months of their operation within ENGlobal is categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat as "Acquisition" activity. Revenue from acquired companies accounted for 7.0% of total revenue, increasing 447% to $10.4 million in revenue in 2004 from $1.9 million in revenue in 2003. The Company generated gross profits from acquisitions of $1.7 million in 2004, an increase of 689.2% from 2003. Total SG&A expenses increased 13.4% to $14.1 million in 2004 from $12.4 million in 2003. SG&A expenses not directly related to acquisitions remained approximately level from 2003 and 2004, and decreased as a percentage of total revenue. The change in working capital was also favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. , increasing to $14.5 million on December 31, 2004, as compared to $6.5 million on December 31, 2003. The Company also reported that overall gross profit increased to $18.6 million in 2004 from $17 million in 2003. Gross profit from engineering labor increased 8.1% to $14.8 million in 2004 from $13.7 million in 2003. As one measure of the Company's internal growth, labor-based revenue, without the addition of revenue from acquisitions, totaled $85.9 million, $77.5 million and $69.2 million in 2004, 2003 and 2002, respectively. The Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 2004 will be filed with the Securities and Exchange Commission on or before March 31, 2005 reflecting these results. About ENGlobal Corporation ENGlobal Corporation provides engineering services and systems principally to the petroleum refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar , petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. , pipeline, production, and process industries throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and internationally. ENGlobal's multi-disciplinary engineering services group develops projects from the initial planning stage through detailed design, procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , and construction management. The systems group develops, manufactures, installs, and services control and instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. systems utilized in various energy and process-related industries, and provides services and products that support the advanced automation and environmental technology fields. The Company, with its subsidiaries, now employs over 1,400 employees in 12 offices and occupies over 300,000 square feet of office and manufacturing space. In 2004, the Company was named the fastest growing engineering firm in the United States by ZweigWhite. Further information about the Company and its subsidiaries is available at www.ENGlobal.com.
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
Years Ended December 31
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2004 2003
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Revenue $148,888 $123,719
Net Income 2,364 2,157
Working Capital $14,503 $6,505
Property and Equipment, net 5,262 4,302
Total Assets 57,261 42,530
Long-term Debt, net of current portion 15,585 7,506
Long-term Capital Leases, net of current
portion 0 12
Stockholders' Equity $20,051 $18,175
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Basic and diluted earnings per share:
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Net income per share (basic and diluted) .10 .09
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Weighted average number of shares
outstanding (basic) 23,455 23,301
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Weighted average number of shares
outstanding (diluted) 23,786 23,734
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Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain 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, the Company's ability to achieve its business strategy while effectively managing costs and expenses. 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. Reference is hereby made to cautionary statements set forth in the Company's Form 10-K for the year ended December 31, 2004, Form 10-Q's for the quarters ended September 30, 2004, June 30, 2004, and March 31, 2004, current Forms 8-K, and other SEC filings. In addition, the information contained in this press release is also subject to the risk factors identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2004. |
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