EXHIBIT A
ENGlobal Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||
Management Summary | ||||||||||||||||||||||||||||||||||||||||||||||||
For the Twelve Months Ending December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 2010 | 2010 | 2010 | ||||||||||||||||||||||||||||||||||||||||||
Quarter | % | Quarter | % | Quarter | % | Oct | % | Nov | % | Dec | % | Quarter | % | YTD | % | Budget | % | Variance | ||||||||||||||||||||||||||||||
REVENUE | ||||||||||||||||||||||||||||||||||||||||||||||||
Automation | $ | 15,216,824 | $ | 15,790,362 | $ | 15,000,261 | $ | 6,978,656 | $ | 5,137,341 | $ | 5,909,438 | $ | 18,025,436 | $ | 64,032,882 | $ | 57,030,713 | $ | 7,002,169 | ||||||||||||||||||||||||||||
Engineering | 33,175,871 | 35,917,774 | 44,728,032 | 18,062,642 | 13,588,261 | 15,628,123 | 47,279,026 | 161,100,703 | 169,848,169 | (8,747,466 | ) | |||||||||||||||||||||||||||||||||||||
Land | 19,591,078 | 21,996,994 | 26,023,754 | 10,904,228 | 8,404,986 | 8,559,762 | 27,868,977 | 95,480,802 | 119,813,892 | (24,333,090 | ) | |||||||||||||||||||||||||||||||||||||
Total Revenue | 67,983,773 | 100.0 | % | 73,705,130 | 100.0 | % | 85,752,047 | 100.0 | % | 35,945,526 | 100.0 | % | 27,130,588 | 100.0 | % | 30,097,323 | 100.0 | % | 93,173,439 | 100.0 | % | 320,614,387 | 100.0 | % | 346,692,774 | 100.0 | % | (26,078,387 | ) | |||||||||||||||||||
DIRECT COSTS | ||||||||||||||||||||||||||||||||||||||||||||||||
Automation | 12,526,656 | 82.3 | % | 13,716,269 | 86.9 | % | 13,794,716 | 92.0 | % | 5,797,554 | 83.1 | % | 4,394,117 | 85.5 | % | 5,163,771 | 87.4 | % | 15,355,442 | 85.2 | % | 55,393,083 | 86.5 | % | 45,882,460 | 80.5 | % | (9,510,623 | ) | |||||||||||||||||||
Engineering | 28,793,433 | 86.8 | % | 32,150,398 | 89.5 | % | 38,621,720 | 86.3 | % | 16,148,126 | 89.4 | % | 12,190,579 | 89.7 | % | 13,871,372 | 88.8 | % | 42,210,077 | 89.3 | % | 141,775,628 | 88.0 | % | 138,658,408 | 81.6 | % | (3,117,220 | ) | |||||||||||||||||||
Land | 17,837,086 | 91.0 | % | 20,028,385 | 91.1 | % | 23,804,059 | 91.5 | % | 9,978,046 | 91.5 | % | 7,697,838 | 91.6 | % | 7,890,132 | 92.2 | % | 25,566,016 | 91.7 | % | 87,235,546 | 91.4 | % | 105,230,308 | 87.8 | % | 17,994,762 | ||||||||||||||||||||
Total Direct Costs | 59,157,175 | 87.0 | % | 65,895,052 | 89.4 | % | 76,220,495 | 88.9 | % | 31,923,726 | 88.8 | % | 24,282,534 | 89.5 | % | 26,925,275 | 89.5 | % | 83,131,535 | 89.2 | % | 284,404,257 | 88.7 | % | 289,771,176 | 83.6 | % | 5,366,919 | ||||||||||||||||||||
GROSS MARGIN | 8,826,598 | 13.0 | % | 7,810,078 | 10.6 | % | 9,531,552 | 11.1 | % | 4,021,800 | 11.2 | % | 2,848,054 | 10.5 | % | 3,172,048 | 10.5 | % | 10,041,904 | 10.8 | % | 36,210,130 | 11.3 | % | 56,921,598 | 16.4 | % | (20,711,468 | ) | |||||||||||||||||||
VARIABLE LABOR | ||||||||||||||||||||||||||||||||||||||||||||||||
Automation | 1,307,752 | 8.6 | % | 1,330,391 | 8.4 | % | 1,354,919 | 9.0 | % | 504,005 | 7.2 | % | 379,266 | 7.4 | % | 450,864 | 7.6 | % | 1,334,134 | 7.4 | % | 5,327,197 | 8.3 | % | 3,692,416 | 6.5 | % | (1,634,781 | ) | |||||||||||||||||||
Engineering | 2,389,403 | 7.2 | % | 2,162,091 | 6.0 | % | 1,434,317 | 3.2 | % | 367,858 | 2.0 | % | 367,894 | 2.7 | % | 349,878 | 2.2 | % | 1,085,631 | 2.3 | % | 7,071,441 | 4.4 | % | 6,843,182 | 4.0 | % | (228,259 | ) | |||||||||||||||||||
Land | 257,146 | 1.3 | % | 286,569 | 1.3 | % | 278,151 | 1.1 | % | 87,680 | 0.8 | % | 81,097 | 1.0 | % | 101,706 | 1.2 | % | 270,483 | 1.0 | % | 1,092,349 | 1.1 | % | 910,189 | 0.8 | % | (182,160 | ) | |||||||||||||||||||
Total Variable Labor | 3,954,301 | 5.8 | % | 3,779,051 | 5.1 | % | 3,067,387 | 3.6 | % | 959,543 | 2.7 | % | 828,257 | 3.1 | % | 902,448 | 3.0 | % | 2,690,248 | 2.9 | % | 13,490,987 | 4.2 | % | 11,445,787 | 3.3 | % | (2,045,200 | ) | |||||||||||||||||||
GROSS PROFIT | 4,872,297 | 7.2 | % | 4,031,027 | 5.5 | % | 6,464,165 | 7.5 | % | 3,062,257 | 8.5 | % | 2,019,797 | 7.4 | % | 2,269,600 | 7.5 | % | 7,351,656 | 7.9 | % | 22,719,143 | 7.1 | % | 45,475,811 | 13.1 | % | (22,756,668 | ) | |||||||||||||||||||
G&A EXPENSES | ||||||||||||||||||||||||||||||||||||||||||||||||
Automation | 901,219 | 5.9 | % | 1,300,698 | 8.2 | % | 977,106 | 6.5 | % | 386,259 | 5.5 | % | 539,274 | 10.5 | % | 371,104 | 6.3 | % | 1,296,637 | 7.2 | % | 4,475,660 | 7.0 | % | 5,405,497 | 9.5 | % | 929,837 | ||||||||||||||||||||
Engineering | 2,494,445 | 7.5 | % | 4,633,382 | 12.9 | % | 8,954,331 | 20.0 | % | 562,213 | 3.1 | % | 538,627 | 4.0 | % | 741,464 | 4.7 | % | 1,842,304 | 3.9 | % | 17,924,463 | 11.1 | % | 6,754,361 | 4.0 | % | (11,170,102 | ) | |||||||||||||||||||
Land | 735,420 | 3.8 | % | 870,905 | 4.0 | % | 951,923 | 3.7 | % | 319,369 | 2.9 | % | 303,696 | 3.6 | % | 299,089 | 3.5 | % | 922,154 | 3.3 | % | 3,480,402 | 3.6 | % | 3,439,895 | 2.9 | % | (40,507 | ) | |||||||||||||||||||
Corporate | 3,252,078 | 4.8 | % | 3,467,673 | 4.7 | % | 3,648,207 | 4.3 | % | 1,226,689 | 3.4 | % | 1,151,188 | 4.2 | % | 1,348,391 | 4.5 | % | 3,726,268 | 4.0 | % | 14,094,226 | 4.4 | % | 12,959,609 | 3.7 | % | (1,134,617 | ) | |||||||||||||||||||
Total G&A Expenses | 7,383,162 | 10.9 | % | 10,272,658 | 13.9 | % | 14,531,567 | 16.9 | % | 2,494,530 | 6.9 | % | 2,532,785 | 9.3 | % | 2,760,048 | 9.2 | % | 7,787,363 | 8.4 | % | 39,974,751 | 12.5 | % | 28,559,362 | 8.2 | % | (11,415,389 | ) | |||||||||||||||||||
NET OPERATING INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||||||
Automation | 481,197 | 3.2 | % | (556,996 | ) | -3.5 | % | (1,126,480 | ) | -7.5 | % | 290,838 | 4.2 | % | (175,316 | ) | -3.4 | % | (76,301 | ) | -1.3 | % | 39,223 | 0.2 | % | (1,163,058 | ) | -1.8 | % | 2,050,340 | 3.6 | % | (3,213,398 | ) | ||||||||||||||
Engineering | (501,410 | ) | -1.5 | % | (3,028,097 | ) | -8.4 | % | (4,282,336 | ) | -9.6 | % | 984,445 | 5.5 | % | 491,161 | 3.6 | % | 665,409 | 4.3 | % | 2,141,014 | 4.5 | % | (5,670,829 | ) | -3.5 | % | 17,592,218 | 10.4 | % | (23,263,047 | ) | |||||||||||||||
Land | 761,426 | 3.9 | % | 811,135 | 3.7 | % | 989,621 | 3.8 | % | 519,133 | 4.8 | % | 322,355 | 3.8 | % | 268,835 | 3.1 | % | 1,110,324 | 4.0 | % | 3,672,505 | 3.8 | % | 10,233,500 | 8.5 | % | (6,560,995 | ) | |||||||||||||||||||
Corporate | (3,252,078 | ) | -4.8 | % | (3,467,673 | ) | -4.7 | % | (3,648,207 | ) | -4.3 | % | (1,226,689 | ) | -3.4 | % | (1,151,188 | ) | -4.2 | % | (1,348,391 | ) | -4.5 | % | (3,726,268 | ) | -4.0 | % | (14,094,226 | ) | -4.4 | % | (12,959,609 | ) | -3.7 | % | (1,134,617 | ) | ||||||||||
NET OPERATING INCOME (LOSS) | (2,510,865 | ) | -3.7 | % | (6,241,631 | ) | -8.5 | % | (8,067,402 | ) | -9.4 | % | 567,727 | 1.6 | % | (512,988 | ) | -1.9 | % | (490,448 | ) | -1.6 | % | (435,707 | ) | -0.5 | % | (17,255,608 | ) | -5.4 | % | 16,916,449 | 4.9 | % | (34,172,057 | ) | ||||||||||||
OTHER INCOME AND DEDUCTIONS | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest Income/(Expense) | (76,179 | ) | -0.1 | % | (77,797 | ) | -0.1 | % | (100,525 | ) | -0.1 | % | (68,147 | ) | -0.2 | % | (43,919 | ) | -0.2 | % | (75,953 | ) | -0.3 | % | (188,020 | ) | -0.2 | % | (442,522 | ) | -0.1 | % | (1,166,364 | ) | -0.3 | % | 723,842 | |||||||||||
Other Income/(Expense) | (10,493 | ) | 0.0 | % | 157,819 | 0.2 | % | (33,502 | ) | 0.0 | % | (17,920 | ) | 0.0 | % | (206,255 | ) | -0.8 | % | (208,502 | ) | -0.7 | % | (432,677 | ) | -0.5 | % | (318,854 | ) | -0.1 | % | (2,660 | ) | 0.0 | % | (316,194 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | (2,597,537 | ) | -3.8 | % | (6,161,609 | ) | -8.4 | % | (8,201,429 | ) | -9.6 | % | 481,660 | 1.3 | % | (763,162 | ) | -2.8 | % | (774,903 | ) | -2.6 | % | (1,056,404 | ) | -1.1 | % | (18,016,984 | ) | -5.6 | % | 15,747,425 | 4.5 | % | (33,764,409 | ) | ||||||||||||
Tax Provision | (1,059,743 | ) | -1.6 | % | (1,644,695 | ) | -2.2 | % | (3,000,270 | ) | -3.5 | % | 160,225 | 0.4 | % | (260,489 | ) | -1.0 | % | (460,096 | ) | -1.5 | % | (560,360 | ) | -0.6 | % | (6,265,067 | ) | -2.0 | % | (42,490 | ) | 0.0 | % | 6,222,577 | ||||||||||||
NET INCOME (LOSS) | (1,537,794 | ) | -2.3 | % | (4,516,914 | ) | -6.1 | % | (5,201,159 | ) | -6.1 | % | 321,435 | 0.9 | % | (502,673 | ) | -1.9 | % | (314,807 | ) | -1.0 | % | (496,044 | ) | -0.5 | % | (11,751,917 | ) | -3.7 | % | 15,789,915 | 4.6 | % | (27,541,832 | ) |