Nevada
|
|
001-14217
|
|
88-0322261
|
(State or other
jurisdiction
of
incorporation)
|
|
(Commission
File
Number)
|
|
(IRS
Employer
Identification
No.)
|
654
N. Sam Houston Parkway E., Suite 400,
Houston,
Texas
|
|
77060-5914
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(Address of
principal executive offices)
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|
(Zip
Code)
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Title
of each class
|
Trading
Symbol(s)
|
Name of
each exchange on which registered
|
Common Stock, $0.001 par value
|
ENG
|
The Nasdaq Stock Market LLC
|
|
|
ENGlobal Corporation
|
|
|
(Registrant)
|
|
|
|
November 5, 2020
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|
/s/ MARK A. HESS
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(Date)
|
|
Mark A.
Hess,
Chief Financial Officer, Treasurer
and Corporate Secretary
|
(amounts in
thousands)
|
For the Three
Months Ended
|
For the Nine
Months Ended
|
||
|
September 26,
2020
|
September 28,
2019
|
September 26,
2020
|
September 28,
2019
|
Revenue
|
$15,729
|
$13,974
|
$52,871
|
$39,758
|
Gross
profit
|
1,144
|
1,675
|
6,857
|
4,955
|
Selling, general
and administrative expenses
|
2,174
|
2,371
|
6,621
|
7,125
|
Operating profit
(loss)
|
(1,030)
|
(696)
|
236
|
(2,170)
|
Net income
(loss)
|
(1,110)
|
(716)
|
59
|
(2,207)
|
|
Three Months
Ended
|
Three Months
Ended
|
||||||
(amounts in
thousands)
|
September 26,
2020
|
September 28,
2019
|
||||||
Segment
|
Total
Revenue
|
% of Total
Revenue
|
Gross Profit
Margin
|
Operating Profit
Margin
|
Total
Revenue
|
% of Total
Revenue
|
Gross Profit
Margin
|
Operating Profit
Margin
|
|
|
|
|
|
|
|
|
|
Engineering &
Construction
|
$8,016
|
51.0%
|
9.4%
|
2.2%
|
$4,256
|
30.5%
|
1.8%
|
(13.5)%
|
Automation
|
7,713
|
49.0%
|
5.1%
|
(0.4)%
|
9,718
|
69.5%
|
16.5%
|
12.1%
|
Consolidated
|
15,729
|
100.0%
|
7.3%
|
(6.5)%
|
13,974
|
100.0%
|
12.0%
|
(5.0)%
|
|
Nine
Months Ended
|
Nine
Months Ended
|
||||||
(amounts in
thousands)
|
September 26,
2020
|
September 28,
2019
|
||||||
Segment
|
Total
Revenue
|
% of Total
Revenue
|
Gross Profit
Margin
|
Operating Profit
Margin
|
Total
Revenue
|
% of Total
Revenue
|
Gross Profit
Margin
|
Operating Profit
Margin
|
|
|
|
|
|
|
|
|
|
Engineering &
Construction
|
$19,771
|
37.4%
|
8.5%
|
(0.9)%
|
$15,548
|
39.1%
|
10.1%
|
(1.6)%
|
Automation
|
33,100
|
62.6%
|
15.6%
|
12.3%
|
24,210
|
60.9%
|
14.0%
|
8.8%
|
Consolidated
|
52,871
|
100.0%
|
13.0%
|
0.4%
|
39,758
|
100.0%
|
12.5%
|
(5.5)%
|
(amounts in
thousands)
|
As
of
September 26,
2020
|
As
of
December 28,
2019
|
Cash and cash
equivalents
|
$12,699
|
$8,307
|
Working
capital
|
15,052
|
11,289
|
|
For the Three
Months Ended
|
For the Nine
Months Ended
|
||
|
September
26,
2020
|
September
28,
2019
|
September
26,
2020
|
September
28,
2019
|
Operating
revenues
|
$15,729
|
$13,974
|
$52,871
|
$39,758
|
Operating
costs
|
14,585
|
12,299
|
46,014
|
34,803
|
Gross
profit
|
1,144
|
1,675
|
6,857
|
4,955
|
|
|
|
|
|
Selling, general
and administrative expenses
|
2,174
|
2,371
|
6,621
|
7,125
|
Operating
profit (loss)
|
(1,030)
|
(696)
|
236
|
(2,170)
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
Other income,
net
|
4
|
7
|
6
|
48
|
Interest expense,
net
|
(62)
|
(5)
|
(103)
|
(12)
|
Income
(loss) from operations before income taxes
|
(1,088)
|
(694)
|
139
|
(2,134)
|
|
|
|
|
|
Provision
for federal and state income taxes
|
22
|
22
|
80
|
73
|
|
|
|
|
|
Net
income (loss)
|
(1,110)
|
(716)
|
59
|
(2,207)
|
|
|
|
|
|
Basic
and diluted income (loss) per common share:
|
$(0.04)
|
$(0.03)
|
$0.00
|
$(0.08)
|
|
|
|
|
|
Basic
and diluted weighted average shares used in computing income (loss)
per share:
|
27,507
|
27,410
|
27,529
|
27,417
|
|
September
26,
2020
|
December
28,
2019
|
ASSETS
|
|
|
Current
Assets:
|
|
|
Cash
|
$12,699
|
$8,307
|
Trade receivables,
net of allowances of $270 and $236
|
12,703
|
11,435
|
Prepaid expenses
and other current assets
|
185
|
889
|
Contract
assets
|
3,055
|
3,862
|
Total Current
Assets
|
28,642
|
24,493
|
Property
and equipment, net
|
1,193
|
1,033
|
Goodwill
|
720
|
720
|
Other
assets
|
|
|
Right of use
asset
|
1,999
|
2,133
|
Deposits and other
assets
|
391
|
307
|
Total Other
Assets
|
2,390
|
2,440
|
Total
Assets
|
$32,945
|
$28,686
|
|
|
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LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
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|
Current
Liabilities:
|
|
|
Accounts
payable
|
$3,084
|
$3,261
|
Accrued
compensation and benefits
|
2,875
|
2,783
|
Current portion of
leases
|
1,613
|
1,041
|
Contract
liabilities
|
2,732
|
5,438
|
Current portion of
note
|
3,042
|
—
|
Other current
liabilities
|
244
|
681
|
Total Current
Liabilities
|
13,590
|
13,204
|
Deferred payroll
tax
|
791
|
—
|
Long-term
debt
|
3,371
|
—
|
Long-term
leases
|
932
|
1,458
|
Total
Liabilities
|
18,684
|
14,662
|
Commitments
and Contingencies (Note 8)
|
|
|
Stockholders’
Equity:
|
|
|
Common stock -
$0.001 par value; 75,000,000
shares authorized; 27,560,686 shares issued and outstanding at
September 26, 2020 and 27,413,626 shares issued and outstanding at
December 28, 2019
|
28
|
27
|
Additional paid-in
capital
|
37,111
|
36,934
|
Accumulated
deficit
|
(22,878)
|
(22,937)
|
Total
Stockholders’ Equity
|
14,261
|
14,024
|
Total Liabilities
and Stockholders’ Equity
|
$32,945
|
$28,686
|
|
For the Nine
Months Ended
|
|
|
September
26,
2020
|
September
28,
2019
|
Cash
Flows from Operating Activities:
|
|
|
Net income
(loss)
|
$59
|
$(2,207)
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
Depreciation and
amortization
|
313
|
258
|
Share-based
compensation expense
|
177
|
45
|
Changes in current
assets and liabilities:
|
|
|
Trade accounts
receivable
|
(1,268)
|
2,748
|
Contract
assets
|
807
|
(953)
|
Prepaids and other
current assets
|
620
|
956
|
Accounts
payable
|
(177)
|
(229)
|
Accrued
compensation and benefits
|
883
|
(126)
|
Contract
liabilities
|
(2,706)
|
209
|
Income taxes
payable
|
(76)
|
16
|
Other current
liabilities, net
|
(361)
|
(460)
|
Net cash provided
by (used in) operating activities
|
$(1,729)
|
$257
|
|
|
|
Cash
Flows from Investing Activities:
|
|
|
Proceeds from notes
receivable
|
—
|
24
|
Property and
equipment acquired
|
(228)
|
(191)
|
Net cash used in
investing activities
|
$(228)
|
$(167)
|
|
|
|
Cash
Flows from Financing Activities:
|
|
|
Purchase of common
stock
|
—
|
(61)
|
Proceeds from PPP
loan
|
4,937
|
—
|
Proceeds from
revolving credit facility
|
1,476
|
—
|
Payments on finance
leases
|
(64)
|
(1)
|
Net cash provided
by (used in) financing activities
|
$6,349
|
$(62)
|
Net change in
cash
|
4,392
|
28
|
Cash
at beginning of period
|
8,307
|
6,060
|
Cash
at end of period
|
$12,699
|
$6,088
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
Cash paid during
the period for interest
|
$103
|
$12
|
Right of use assets
obtained in exchange for new operating lease liability
|
$963
|
$2,377
|
Cash paid during
the period for income taxes (net of refunds)
|
$16
|
$—
|
Debt issuance
costs
|
$140
|
$—
|
Leased assets
obtained in exchange for new finance lease liabilities
|
$219
|
$236
|