Segment Information

9 Months Ended

Sep. 28, 2019

Segment Reporting [Abstract]

Segment Information

NOTE 6 – SEGMENT INFORMATION

Our segments are strategic business units that offer different services and products and therefore require different marketing and management strategies. The operating performance is regularly reviewed with two operational leaders in charge of our engineering offices and automation offices 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.

The Engineering, Procurement and Construction Management (“EPCM”) segment provides services relating to the development, management and execution of projects requiring professional engineering and related project services primarily to the energy industry throughout the United States. The Automation segment provides services related to the design, integration and implementation of advanced automation, information technology, process distributed control systems, analyzer systems, and electrical projects primarily to the upstream and downstream sectors throughout the United States. The Automation segment includes the government services group, which provides engineering, design, installation and operation and maintenance of various government, public sector and international facilities and the fabrication operation.

Revenues, operating income, and identifiable assets 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 includes 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 for the three months ended September 28, 2019 and September 29, 2018 is as follows (dollars in thousands):

For the three months ended September 28, 2019:	EPCM			Automation			Corporate			Consolidated
Revenue	$	4,256		$	9,718		$	—		$	13,974
Gross profit		75			1,600			—			1,675
Gross Profit Margin		1.8	%		16.5	%					12.0	%
SG&A		651			427			1,293			2,371
Operating income (loss)		(576	)		1,173			(1,293	)		(696	)
Other income, net											7
Interest expense, net											(5	)
Tax expense											(22	)
Net loss										$	(716	)

For the three months ended September 29, 2018:	EPCM			Automation			Corporate			Consolidated
Revenue	$	6,821		$	7,434		$	—		$	14,255
Gross profit		1,133			1,160			—			2,293
Gross Profit Margin		16.6	%		15.6	%					16.1	%
SG&A		469			633			1,381			2,483
Operating income (loss)		664			527			(1,381	)		(190	)
Other income, net											11
Interest expense, net											(1	)
Tax expense											(17	)
Net loss										$	(197	)

Segment information for the nine months ended September 28, 2019 and September 29, 2018 is as follows (dollars in thousands):

For the nine months ended September 28, 2019:	EPCM			Automation			Corporate			Consolidated
Revenue	$	15,548		$	24,210		$	—		$	39,758
Gross profit		1,574			3,381			—			4,955
Gross Profit Margin		10.1	%		14.0	%					12.5	%
SG&A		1,826			1,246			4,053			7,125
Operating income (loss)		(252	)		2,135			(4,053	)		(2,170	)
Other income, net											48
Interest expense, net											(12	)
Tax expense											(73	)
Net loss										$	(2,207	)

For the nine months ended September 29, 2018:	EPCM			Automation			Corporate			Consolidated
Revenue	$	18,568		$	22,746		$	—		$	41,314
Gross profit		2,879			3,080			—			5,959
Gross Profit Margin		15.5	%		13.5	%					14.4	%
SG&A		1,426			2,001			4,508			7,935
Operating income (loss)		1,453			1,079			(4,508	)		(1,976	)
Other expense, net											(367	)
Interest expense, net											(14	)
Tax expense											(31	)
Net loss										$	(2,388	)

Total Assets by Segment	As of September 28, 2019		As of December 29, 2018
	(dollars in thousands)
EPCM	$	6,276	$	4,792
Automation		9,906		10,550
Corporate		5,956		6,964
Consolidated	$	22,138	$	22,306