NOTE 4 - DISPOSAL OF CONTINUING OPERATIONS

9 Months Ended

Sep. 28, 2013

Disclosure Text Block Supplement [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

NOTE 4 – DISPOSAL OF CONTINUING OPERATIONS

On August 30, 2013, the Company completed the sale of substantially all of its Gulf Coast engineering and in-plant operations to a subsidiary of Furmanite Corporation. The total value of the transaction to ENGlobal was $18 million, subject to certain adjustments, consisting primarily of $16 million of cash at closing and a $3.0 million promissory note issued at 4% interest with a Furmanite Corporation guarantee with a subsequent adjustment of $1 million owing to Furmanite reflected in current accounts payable.  The transaction resulted in a $487,000 gain on the sale of these operations.  ENGlobal used most of the net proceeds from this transaction to repay advances under the PNC Credit Facility.  As a result of this transaction, approximately 900 employees transferred from ENGlobal to Furmanite.  The impact of the sale of these operations are summarized as follows (amounts in thousands):

2013 Continuing Operations:	For the Nine Months Ended September 28, 2013			Disposed Operations		Pro Forma For the Nine Months Ended September 28, 2013
Operating revenues	$	143,709		$	79,768	$	63,941
Operating costs		127,194			72,954		54,240
Gross profit		16,515			6,814		9,701
Selling, general and administrative expenses		17,782			2,748		15,034
Operating income (loss)	$	(1,267	)	$	4,066	$	(5,333	)

2012 Continuing Operations:	For the Nine Months Ended September 29, 2012			Disposed Operations			Pro Forma For the Nine Months Ended September 28, 2012
Operating revenues	$	175,805		$	90,527		$	85,278
Operating costs		162,455			85,537			76,918
Gross profit		13,350			4,990			8,360
Selling, general and administrative expenses		19,301			2,824			16,477
Goodwill impairment		14,568			14,568			—
Operating income (loss)	$	(20,519	)	$	(12,402	)	$	(8,117	)