NOTE 3 - DISPOSAL OF CONTINUING OPERATIONS

3 Months Ended

Mar. 29, 2014

Disclosure Text Block Supplement [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

NOTE 3 – 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 the Company was $17 million, consisting primarily of $15 million of cash and a $3.0  million promissory note issued at 4% interest with a Furmanite Corporation guarantee.  The transaction resulted in a $721,000 gain on the sale of these operations.  The Company 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 the Company to Furmanite.  In conjunction with this sale, the Company reduced its corporate selling, general and administrative expenses to support ongoing continuing operations.  The impact of the sale of these operations for the three months ended March 29, 2014 and the comparable period in 2013 is summarized as follows (dollars in thousands):

2014 Continuing Operations:	For the Three Months Ended March 29, 2014		Disposed Operations		Pro Forma For the Three Months Ended March 29, 2014
Operating revenues	$	26,898		—	$	26,898
Operating costs		20,814		—		20,814
Gross profit		6,084		—		6,084
Selling, general and administrative expenses		4,119		—		4,119
Operating income (loss)	$	1,965		—	$	1,965

2013 Continuing Operations:	For the Three Months Ended March 30, 2013			Disposed Operations		Pro Forma For the Three Months Ended March 30, 2013
Operating revenues	$	49,763		$	29,568	$	20,195
Operating costs		43,964			26,975		16,989
Gross profit		5,799			2,593		3,206
Selling, general and administrative expenses		6,212			1,088		5,124
Operating income (loss)	$	(413	)	$	1,505	$	(1,918	)