ENGlobal Receives $6 Million Extension to Contract Award, $275 Million in Pending Proposals Await Customer Decisions
September 03 2019 - 8:55AM
ENGlobal (NASDAQ:ENG
), a leading
provider of engineered modular systems and automation solutions,
today reported it has received an extension valued at $6 million to
perform additional work on a project that was initiated and
announced in October of last year. ENGlobal has been
engaged to provide process analytical engineering and related
support services to assist in the restart of an idled oil refinery
and terminal into a fully functioning and environmentally compliant
facility. The Company’s awards to date on this restart
project now total approximately $12 million, and the extension
announced today is expected to be performed over the next six
months.
ENGlobal has been called upon to execute the
first of its customer’s multiple phase plan – featuring a thorough
upgrade to the analytical and instrumentation equipment at the
refinery and terminal. Specifically, this work requires
that ENGlobal provide home office engineering, detailed design,
material procurement and an on-site installation and commissioning
staff. The additional phases are expected to require
similar services that will be performed in different areas of the
facility until the refinery and terminal is successfully restarted
and fully functional.
“We sincerely thank our valued customer
for their confidence in our abilities and performance to date, as
demonstrated by this extension of our services,” said Chairman and
CEO William A. Coskey, P.E. “We are committed to providing
excellent resources and successfully meeting the time critical
schedule for restarting this facility.”
Mr. Coskey continued, “ENGlobal continues to
seek out internal growth - to scale up our business through a focus
on executing larger scopes of work. We are making
progress on our modular systems strategy and have been successful
in identifying and bidding numerous larger opportunities. In
support of this point, we overall now have $275 million of
proposals outstanding that are awaiting customer decisions.
“Winning even a moderate portion of these
proposals, particularly those of larger value, could have a
significant positive effect on ENGlobal’s revenue growth and
financial performance going forward,” said the CEO.
About ENGlobal
ENGlobal (NASDAQ: ENG) is a leading provider of
engineered modular solutions to the energy sector throughout the
United States and internationally. ENGlobal operates through
two business segments: Automation and Engineering. ENGlobal's
Automation segment provides services related to the design,
integration and implementation of process distributed control and
analyzer systems, advanced automated data gathering systems and
information technology. Within the Automation segment,
ENGlobal's Government Services group provides engineering, design,
installation and operation and maintenance of various government,
public sector and international facilities, and specializes in the
turnkey installation and maintenance of automation and
instrumentation systems for the U.S. Defense industry worldwide.
The Engineering segment provides multi-disciplined engineering
services relating to the development, management and execution of
projects requiring professional engineering and related project
management services. Further information about the Company and
its businesses is available at www.ENGlobal.com.
Safe Harbor for Forward-Looking Statements
The statements above regarding the Company's
expectations regarding its operations and certain other 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: (1) our ability to identify, evaluate, and complete any
strategic alternative in connection with our review of strategic
alternatives; (2) the impact of the announcement of our review of
strategic alternatives on our business, including our financial and
operating results, or our employees, suppliers and customers; (3)
our ability to increase our revenue and profitability; (4) our
ability to realize project awards or contracts on our pending
proposals, and the timing, scope and amount of any related awards
or contracts; (5) the effect of economic downturns and the
volatility and level of oil and natural gas prices; (6) our ability
to retain existing customers and attract new customers; (7) our
ability to accurately estimate the overall risks, revenue or costs
on a contract; (8) the risk of providing services in excess of
original project scope without having an approved change order; (9)
our ability to execute our expansion into the modular solutions
market and to execute our updated business growth strategy to
position the Company as a leading provider of higher value
industrial automation and Industrial Internet of Things services to
its customer base; (10) our ability to attract and retain key
professional personnel; (11) our ability to fund our operations and
grow our business utilizing cash on hand, internally generated
funds and other working capital; (12) our ability to obtain
additional financing, including pursuant to a new credit facility,
when needed: (13) our dependence on one or a few customers; (14)
the risks of internal system failures of our information technology
systems, whether caused by us, third-party service providers,
intruders or hackers, computer viruses, malicious code,
cyber-attacks, phishing and other cyber security problems, natural
disasters, power shortages or terrorist attacks; (15) our ability
to realize revenue projected in our backlog and our ability to
collect accounts receivable and process accounts payable in a
timely manner; (16) the uncertainties related to the U.S.
Government's budgetary process and their effects on our long-term
U.S. Government contracts; (17) the risk of unexpected liability
claims or poor safety performance; (18) our ability to identify,
consummate and integrate potential acquisitions; (19) our reliance
on third-party subcontractors and equipment manufacturers; (20) our
ability to satisfy the continued listing standards of NASDAQ with
respect to our common stock or to cure any continued listing
standard deficiency with respect thereto; and (21) the effect of
changes in laws and regulations, including U.S. tax laws, with
which the Company must comply and the associated cost of compliance
with such laws and regulations. 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. In addition, reference is
hereby made to cautionary statements set forth in the Company's
most recent reports on Form 10-K and 10-Q, and other SEC
filings.
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Contacts:
Mark A. Hess, CFO (281) 878-1000 ir@ENGlobal.com
Market Makers - Investor Relations Jimmy Caplan 512-329-9505
jimmycaplan@me.com
Market Makers - Media Relations Rick Eisenberg 212-496-6828
eiscom@msn.com
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