Englobal (ENGC) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 25, 2016	Aug. 03, 2016
Document And Entity Information
Entity Registrant Name	ENGLOBAL CORP
Entity Central Index Key	933,738
Document Type	10-Q
Document Period End Date	Jun. 25, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-26
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		27,799,181
Trading Symbol	ENG
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2016	Jun. 27, 2015	Jun. 25, 2016	Jun. 27, 2015
Income Statement [Abstract]
Operating revenues	$ 13,842	$ 21,053	$ 28,654	$ 44,155
Operating costs	11,989	16,444	25,128	35,424
Gross profit	1,853	4,609	3,526	8,731
Selling, general and administrative expenses	3,313	3,555	6,703	7,559
Operating income (loss)	(1,460)	1,054	(3,177)	1,172
Other income (expense):
Other income (expense), net	1	26	7	645
Interest expense, net	(49)	(44)	(85)	(66)
Income (loss) from operations before income taxes	(1,508)	1,036	(3,255)	1,751
Provision (benefit) for federal and state income taxes	95	60	(903)	152
Net income (loss)	$ (1,603)	$ 976	$ (2,352)	$ 1,599
Basic and diluted income (loss) per common share:	$ (0.06)	$ 0.03	$ (0.08)	$ 0.06
Basic and diluted weighted average shares used in computing earnings per share:	27,831	28,017	27,884	27,950

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 25, 2016	Dec. 26, 2015
Current Assets:
Cash and cash equivalents	$ 14,739	$ 7,806
Trade receivables, net of allowances of $377 and $1,150	14,274	24,097
Costs and estimated earnings in excess of billings on uncompleted contracts	3,648	4,062
Other current assets	872	1,459
Total Current Assets	33,533	37,424
Property and equipment, net	1,670	2,145
Goodwill	2,806	2,806
Deferred tax asset	10,200	9,137
Other assets	542	688
Total Assets	48,751	52,200
Current Liabilities:
Accounts payable	3,627	3,182
Accrued compensation and benefits	2,451	3,086
Billings in excess of costs and estimated earnings on uncompleted contracts	3,750	3,912
Other current liabilities	1,315	1,690
Total Current Liabilities	11,143	11,870
Long Term Leases	185	318
Total Liabilities	11,328	12,188
Commitments and Contingencies (Note 7)
Stockholders' Equity:
Common stock - $0.001 par value; 75,000,000 shares authorized; 27,886,598 and 28,058,513 shares issued and outstanding at June 25, 2016 and December 26, 2015, respectively	28	28
Additional paid-in capital	36,948	37,185
Accumulated earnings	447	2,799
Total Stockholders' Equity	37,423	40,012
Total Liabilities and Stockholders' Equity	$ 48,751	$ 52,200

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 25, 2016	Dec. 26, 2015
Statement of Financial Position [Abstract]
Trade receivables, allowances	$ 377	$ 1,150
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares outstanding	27,886,598	28,058,513
Common stock, shares issued	27,886,598	28,058,513

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 25, 2016	Jun. 27, 2015
Cash Flows from Operating Activities:
Net income (loss)	$ (2,352)	$ 1,599
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	619	784
Share-based compensation expense	242	249
Loss on disposal of fixed assets	1
Non cash change in note receivable		(635)
Deferred tax asset	(1,063)
Changes in current assets and liabilities:
Trade accounts receivable	9,823	2,715
Costs and estimated earnings in excess of billings on uncompleted contracts	414	(1,047)
Other current assets	662	351
Accounts payable	444	(2,544)
Accrued compensation and benefits	(635)	(554)
Billings in excess of costs and estimated earnings on uncompleted contracts	(162)	(1,428)
Income taxes payable	(257)	(349)
Other current liabilities, net	(72)	(1,102)
Net cash provided by (used in) operating activities	7,664	(1,961)
Cash Flows from Investing Activities:
Property and equipment acquired	(84)	(649)
Proceeds from notes receivable	29	6,083
Net cash (used in) provided by investing activities	(55)	5,434
Cash Flows from Financing Activities:
Debt issuance costs	(20)	(7)
Purchase of treasury stock	(479)
Payments on capitalized leases	(177)	(364)
Net cash used in financing activities	(676)	(371)
Net change in cash	6,933	3,102
Cash and cash equivalents, at beginning of period	7,806	6,213
Cash and cash equivalents, at end of period	14,739	9,315
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	87	101
Cash paid during the period for income taxes (net of refunds)	418	502
Supplemental disclosure of noncash investing activities:
Property and equipment purchased through capital lease assignment		$ 168

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 25, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	NOTE 1 – BASIS OF PRESENTATION The condensed consolidated financial statements of ENGlobal Corporation (which may be referred to as “ENGlobal,” the “Company,” “we,” “us,” or “our”) are prepared in accordance with accounting principles generally accepted in the United States of America. The Company consolidates all of its subsidiaries’ financial results, and significant inter-company accounts and transactions have been eliminated in the consolidation. The condensed consolidated financial statements of the Company included herein are unaudited for the six month periods ended June 25, 2016 and June 27, 2015, have been prepared from the books and records of the Company pursuant to the rules and regulations of the Securities and Exchange Commission, and in the case of the condensed balance sheet as of December 26, 2015, have been derived from the audited financial statements of the Company. These financial statements reflect all adjustments (consisting of normal recurring adjustments), which are, in the opinion of management, necessary to fairly present the results for the periods presented. Certain information and note disclosures, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 26, 2015, included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The Company has assessed subsequent events through the date of filing of these condensed consolidated financial statements with the Securities and Exchange Commission and believes that the disclosures made herein are adequate to make the information presented herein not misleading. A summary of our critical accounting policies is disclosed in Note 2 to the consolidated financial statements included in our 2015 Annual Report on Form 10-K. Our critical accounting policies are further described under the caption “Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2015 Annual Report on Form 10-K. In the second quarter of 2016, the Company corrected the presentation of the proceeds of the Notes Receivable that affected the second, third and fourth quarters of 2015. Proceeds from Notes Receivable of $6.1 million were classified as a component of Cash Flows from Financing Activities when the proper classification should have been as a component of Cash Flows from Investing Activities. Management has evaluated the reclassification from both a quantitative and qualitative impact and has determined that this reclassification was not material to previously released financial statements. This reclassification had no impact on income or loss from operations, the balance sheet or the net cash generated or used for any period. Each of our quarters is comprised of 13 weeks, which includes two 4-week months and one 5-week month (4-5-4 calendar quarter).

Contracts

Contracts	6 Months Ended
	Jun. 25, 2016
Contractors [Abstract]
Contracts	NOTE 2 – CONTRACTS Costs, estimated earnings and billings on uncompleted contracts consisted of the following at June 25, 2016 and December 26, 2015: June 25, 2016 December 26, 2015 (dollars in thousands) Costs incurred on uncompleted contracts $ 55,810 $ 67,488 Estimated earnings on uncompleted contracts 21,565 27,492 Earned revenues 77,375 94,980 Less: billings to date 77,477 94,830 Net costs and estimated earnings (loss) in excess of billings on uncompleted contracts $ (102 ) $ 150 Costs and estimated earnings in excess of billings on uncompleted contracts $ 3,648 $ 4,062 Billings in excess of costs and estimated earnings on uncompleted contracts (3,750 ) (3,912 ) Net costs and estimated earnings (loss) in excess of billings on uncompleted contracts $ (102 ) $ 150 Revenue on fixed-price contracts is recorded primarily using the percentage-of-completion (cost-to-cost) method. Revenue and gross margin on fixed-price contracts are subject to revision throughout the lives of the contracts and any required adjustments are made in the period in which the revisions become known. To manage unknown risks, management may use contingency amounts to increase the estimated costs, therefore, lowering the earned revenues until the risks are better identified and quantified or have been mitigated. We currently have $2.1 million in contingency amounts as of June 25, 2016 compared to $2.4 million as of December 26, 2015. Losses on contracts are recorded in full as they are identified. Fixed price contracts generally include retainage provisions under which a percentage of the contract price is withheld until the project is complete and has been accepted by our customer. We currently have $3.9 million in retainage as of June 25, 2016 compared to $6.9 million as of December 26, 2015. We recognize service revenue as soon as the services are performed. For clients that we consider higher risk, due to past payment history or history of not providing written work authorizations, we have deferred revenue recognition until we receive either a written authorization or a payment. We currently have $0.1 million in deferred revenue recognition as of June 25, 2016 compared to $0.1 million as of December 26, 2015. This deferred revenue represents work on not–to-exceed contracts that has been performed but has not been billed or booked as revenue due to our revenue recognition policies as the work was performed outside the contracted amount without obtaining proper work order changes. It is uncertain as to whether these revenues will eventually be recognized by us or the proceeds collected. The costs associated with these billings have been expensed as incurred.

Line of Credit and Letter of Cr

Line of Credit and Letter of Credit Facilities	6 Months Ended
	Jun. 25, 2016
Debt Disclosure [Abstract]
Line of Credit and Letter of Credit Facilities	NOTE 3 – LINE OF CREDIT AND LETTER OF CREDIT FACILITIES Line of Credit Facility On September 16, 2014, we entered into a three year Loan and Security Agreement (“Loan Agreement”) with Regions Bank (“Lender”) pursuant to which the Lender agreed to extend credit to us in the form of revolving loans of up to the lesser of $10.0 million (the “Commitment”) or the Borrowing Base (as defined in the Loan Agreement). The Loan Agreement includes a sub-facility for standby and / or trade letters of credit up to an amount not to exceed $2.5 million. There were no loans outstanding under the Loan Agreement as of June 25, 2016 or December 26, 2015. On June 16, 2016, but effective May 29, 2016, we entered into the Second Amendment to the Loan Agreement (“Second Amendment”) with the Lender pursuant to which the Company is not required to comply with the fixed charge coverage ratio financial covenant from the fiscal month ending April 30, 2016 through the fiscal month ending December 31, 2016, provided that the Company is not permitted to have any obligations or borrowings related to working capital outstanding and the Company is required to retain a cash balance of $5 million in collection accounts with the Lender. In effect, this prohibits the Company from borrowing any material amount under the Loan Agreement with Regions Bank until the Company regains compliance with the fixed charge coverage ratio. Borrowing Base: Interest: Collateral: Term Material Covenants: ● The Company will not be a party to mergers, acquisitions, consolidations, reorganizations or similar transactions. ● The Company will not sell, lease, transfer or otherwise dispose of any of its properties or assets (subject to certain exceptions set forth in the Loan Agreement). ● The Company will not declare, pay or make any dividend or distribution on any shares of common or preferred stock or make any cash payment to repurchase or otherwise retire any common or preferred stock, provided that the Company may repurchase up to $2 million of its common stock pursuant to its announced stock repurchase plan, subject to certain conditions. ● The fixed charge coverage ratio must not be less than 1.10 to 1.00. ● The Company will not permit capital expenditures during any fiscal year to exceed $3.5 million. The Company was in compliance with all of the material covenants of the Loan Agreement as of June 25, 2016 other than the fixed charge coverage ratio, for which compliance is not required from the fiscal month ending April 30, 2016 through the fiscal month ending December 31, 2016, as described above.

Segment Information

Segment Information	6 Months Ended
	Jun. 25, 2016
Segment Reporting [Abstract]
Segment Information	NOTE 4 – SEGMENT INFORMATION 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 EPCM segment includes the government services group, which provides engineering, design, installation and operation and maintenance of various government, public sector and international facilities. The Automation segment provides services related to the design, fabrication and implementation of process distributed control and analyzer systems, advanced automation, information technology and electrical projects primarily to the upstream and downstream sectors throughout the United States as well as a specific project in Central Asia. Revenues, operating income, and identifiable assets for each segment are set forth in the following tables. The amount identified as Corporate includes those activities that are not allocated to the operating segments and include 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 June 25, 2016 and June 27, 2015 is as follows (dollars in thousands): For the three months ended June 25, 2016: EPCM Automation Corporate Consolidated Revenue $ 8,257 $ 5,585 $ — $ 13,842 Gross profit 789 1,064 — 1,853 SG&A 754 775 1,784 3,313 Operating income (loss) 35 289 (1,784 ) (1,460 ) Other income 1 Interest expense, net (49 ) Tax expense 95 Net loss $ (1,603 ) For the three months ended June 27, 2015: EPCM Automation Corporate Consolidated Revenue $ 12,931 $ 8,122 $ — $ 21,053 Gross profit 2,074 2,535 — 4,609 SG&A 739 579 2,237 3,555 Operating income (loss) 1,335 1,956 (2,237 ) 1,054 Other income 26 Interest expense, net (44 ) Tax expense (60 ) Net income $ 976 Segment information for the six months ended June 25, 2016 and June 27, 2015 is as follows (dollars in thousands): For the six months ended June 25, 2016: EPCM Automation Corporate Consolidated Revenue $ 16,784 $ 11,870 $ — $ 28,654 Gross profit 1,423 2,103 — 3,526 SG&A 1,523 1,518 3,661 6,703 Operating income (loss) (100 ) 585 (3,661 ) (3,177 ) Other income 7 Interest expense, net (85 ) Tax benefit 903 Net loss $ (2,352 ) For the six months ended June 27, 2015: EPCM Automation Corporate Consolidated Revenue $ 26,229 $ 17,926 $ — $ 44,155 Gross profit 4,132 4,599 — 8,731 SG&A 1,463 1,285 4,811 7,559 Operating income (loss) 2,669 3,314 (4,811 ) 1,172 Other income 645 Interest expense, net (66 ) Tax expense (152 ) Net income $ 1,599 Total Assets by Segment As of June 25, 2016 As of December 26, 2015 (dollars in thousands) EPCM $ 8,238 $ 13,009 Automation 13,842 19,570 Corporate 26,671 19,621 Consolidated $ 48,751 $ 52,200

Federal and State Income Taxes

Federal and State Income Taxes	6 Months Ended
	Jun. 25, 2016
Income Tax Disclosure [Abstract]
Federal and State Income Taxes	NOTE 5 – FEDERAL AND STATE INCOME TAXES The Company accounts for income taxes in accordance with FASB Accounting Standards Codification 740 for interim reporting periods. Under ASC 740-270, the Company estimates an annual effective tax rate based on year-to-date operating results and its projection of operating results for the remainder of the year. We apply this annual effective tax rate to the year-to-date operating results. If its actual results differ from the estimated annual projection, its estimated annual effective tax rate can change affecting the tax expense for successive interim results as well as the estimated annual tax expense results. Certain states are not included in the calculation of the estimated annual effective tax rate because the underlying basis for the tax is related to revenues and not taxable income. Amounts for Texas margin taxes are reported as income tax expense. The Company applies a more likely than not recognition threshold for all tax uncertainties. The Financial Accounting Standards Board (“FASB”) guidance for uncertain tax positions only allows the recognition of those tax benefits, based on their technical merits that are greater than 50 percent likelihood of being sustained upon examination by the taxing authorities. Management has reviewed the Company’s tax positions and determined there are no uncertain tax positions requiring recognition in the financial statements. U.S. federal tax returns prior to 2012 and Texas margins tax returns prior to 2012 are closed. Generally, the applicable statutes of limitations are three to four years from their filings. The Company recorded a $0.1 million income tax expense and $0.9 million income tax benefit for the three and six months ended June 25, 2016, respectively, compared to a tax expense of $0.1 million and $0.2 million for the three and six months ended June 27, 2015, respectively. The Company’s effective tax rate was -6.3% and 27.7% for the three and six months ended June 25, 2016, respectively, as compared with 5.8% and 8.7% for the three and six months ended June 27, 2015, respectively. The effective tax rate for the three and six months ended June 25, 2016 differed from the federal statutory rate of 35% primarily due a change in the operating results from net income to net loss, non-deductible items, foreign withholding tax expense and tax credits for the three and six months ending June 25, 2016. The effective tax rate for the six months ended June 27, 2015 differed from the federal statutory rate of 35% due to a full valuation allowance on the Company’s deferred tax assets. The majority of the valuation allowance was released in the fourth quarter of fiscal 2015.

Stock Repurchase Program

Stock Repurchase Program	6 Months Ended
	Jun. 25, 2016
Equity [Abstract]
Stock Repurchase Program	NOTE 6 – STOCK REPURCHASE PROGRAM On April 21, 2015, the Company announced that its Board of Directors authorized the repurchase of up to $2 million of the Company’s common stock from time to time through open market or privately negotiated transactions, based on prevailing market conditions. The Company is not obligated to repurchase any dollar amount or specific number of shares of common stock under the repurchase program, which may be suspended or discontinued at any time. As of June 25, 2016, the Company had purchased 499,344 shares for $533 thousand under the repurchase program of which 180,989 shares were purchased in the three months ended June 25, 2016 for $228 thousand.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 25, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 7 – COMMITMENTS AND CONTINGENCIES From time to time, ENGlobal or one or more of its subsidiaries is involved in various legal proceedings or is subject to claims that arise in the ordinary course of business alleging, among other things, claims of breach of contract or negligence in connection with the performance or delivery of goods and/or services. The outcome of any such claims or proceedings cannot be predicted with certainty. Management is not aware of any pending or threatened lawsuits or proceedings that are expected to have a material effect on the Company’s financial position, results of operations or liquidity. The Company carries a broad range of insurance coverage, including general and business automobile liability, commercial property, professional errors and omissions, workers’ compensation insurance, directors’ and officers’ liability insurance and a general umbrella policy, all with standard self-insured retentions/deductibles. The Company also provides health insurance to its employees (including vision and dental), and is partially self-funded for these claims. Provisions for expected future payments are accrued based on the Company’s experience, and specific stop loss levels provide protection for the Company. The Company believes it has adequate reserves for the self-funded portion of its insurance policies. The Company is not aware of any material litigation or claims that are not covered by these policies or which are likely to materially exceed the Company’s insurance limits.

Contracts (Tables)

Contracts (Tables)	6 Months Ended
	Jun. 25, 2016
Contractors [Abstract]
Schedule of Costs Estimated Earnings and Billings on Uncompleted Contracts	Costs, estimated earnings and billings on uncompleted contracts consisted of the following at June 25, 2016 and December 26, 2015: June 25, 2016 December 26, 2015 (dollars in thousands) Costs incurred on uncompleted contracts $ 55,810 $ 67,488 Estimated earnings on uncompleted contracts 21,565 27,492 Earned revenues 77,375 94,980 Less: billings to date 77,477 94,830 Net costs and estimated earnings (loss) in excess of billings on uncompleted contracts $ (102 ) $ 150 Costs and estimated earnings in excess of billings on uncompleted contracts $ 3,648 $ 4,062 Billings in excess of costs and estimated earnings on uncompleted contracts (3,750 ) (3,912 ) Net costs and estimated earnings (loss) in excess of billings on uncompleted contracts $ (102 ) $ 150

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 25, 2016
Segment Reporting [Abstract]
Schedule of Segment Information for Operation Statement	Segment information for the three months ended June 25, 2016 and June 27, 2015 is as follows (dollars in thousands): For the three months ended June 25, 2016: EPCM Automation Corporate Consolidated Revenue $ 8,257 $ 5,585 $ — $ 13,842 Gross profit 789 1,064 — 1,853 SG&A 754 775 1,784 3,313 Operating income (loss) 35 289 (1,784 ) (1,460 ) Other income 1 Interest expense, net (49 ) Tax expense 95 Net loss $ (1,603 ) For the three months ended June 27, 2015: EPCM Automation Corporate Consolidated Revenue $ 12,931 $ 8,122 $ — $ 21,053 Gross profit 2,074 2,535 — 4,609 SG&A 739 579 2,237 3,555 Operating income (loss) 1,335 1,956 (2,237 ) 1,054 Other income 26 Interest expense, net (44 ) Tax expense (60 ) Net income $ 976 Segment information for the six months ended June 25, 2016 and June 27, 2015 is as follows (dollars in thousands): For the six months ended June 25, 2016: EPCM Automation Corporate Consolidated Revenue $ 16,784 $ 11,870 $ — $ 28,654 Gross profit 1,423 2,103 — 3,526 SG&A 1,523 1,518 3,661 6,703 Operating income (loss) (100 ) 585 (3,661 ) (3,177 ) Other income 7 Interest expense, net (85 ) Tax benefit 903 Net loss $ (2,352 ) For the six months ended June 27, 2015: EPCM Automation Corporate Consolidated Revenue $ 26,229 $ 17,926 $ — $ 44,155 Gross profit 4,132 4,599 — 8,731 SG&A 1,463 1,285 4,811 7,559 Operating income (loss) 2,669 3,314 (4,811 ) 1,172 Other income 645 Interest expense, net (66 ) Tax expense (152 ) Net income $ 1,599
Schedule of Segment Reporting Information for Assets	Total Assets by Segment As of June 25, 2016 As of December 26, 2015 (dollars in thousands) EPCM $ 8,238 $ 13,009 Automation 13,842 19,570 Corporate 26,671 19,621 Consolidated $ 48,751 $ 52,200

Basis of Presentation (Details

Basis of Presentation (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 25, 2016	Jun. 27, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Proceeds from notes receivable	$ 29	$ 6,083

Contracts (Details Narrative)

Contracts (Details Narrative) - USD ($) $ in Thousands	Jun. 25, 2016	Dec. 26, 2015
Contractors [Abstract]
Contingency amounts	$ 2,100	$ 2,400
Retainage contract receivable	3,900	6,900
Deferred revenue, current	$ 100	$ 100

Contracts - Schedule of Costs E

Contracts - Schedule of Costs Estimated Earnings and Billings on Uncompleted Contracts (Details) - USD ($) $ in Thousands	Jun. 25, 2016	Dec. 26, 2015
Contractors [Abstract]
Costs incurred on uncompleted contracts	$ 55,810	$ 67,488
Estimated earnings on uncompleted contracts	21,565	27,492
Earned revenues	77,375	94,980
Less: billings to date	77,477	94,830
Net costs and estimated earnings (loss) in excess of billings on uncompleted contracts	(102)	150
Costs and estimated earnings in excess of billings on uncompleted contracts	3,648	4,062
Billings in excess of costs and estimated earnings on uncompleted contracts	(3,750)	(3,912)
Net costs and estimated earnings (loss) in excess of billings on uncompleted contracts	$ (102)	$ 150

Line of Credit and Letter of 18

Line of Credit and Letter of Credit Facilities (Details Narrative) - USD ($) $ in Thousands	Sep. 16, 2014	Jun. 25, 2016	Jun. 25, 2016
Repurchase of common stock value		$ 228
Line of Credit [Member]
Line of credit facility, maximum borrowing capacity	$ 10,000
Line of credit facility, borrowing capacity, description	The Borrowing Base is an amount equal to the sum of (a) 85% of the total amount of Eligible Approved Cost Plus Contract Amounts, plus (b) the lesser of (i) 85% of the total amount of Eligible Approved Fixed Price Contract Accounts or (ii) $2,500,000, plus (c) the lesser of (i) 85% of the total amount of Eligible Approved Government Contract Accounts or (ii) $1,000,000, plus (d) the lesser of (i) 75% of the total amount of Eligible Unbilled Accounts or (ii) total revenues from all Accounts over the preceding 30-day period, provided that to the extent that any Eligible Unbilled Accounts consist of Accounts that would be Eligible Approved Government Contracts and be included in provision (c) above if billed there shall be a limitation in eligibility thereof under this provision (d) of $800,000, plus (e) 75% of the total amount of Eligible Costs in Excess of Billings, and minus (f) such amounts as may be required by Lender to be reserved at any time and from time to time.
Retain cash balance	$ 5,000
Line of credit facility, expiration period	3 years
Line of credit facility, description	revolving loans of up to the lesser of $10.0 million (the "Commitment") or the Borrowing Base (as defined in the Loan Agreement).
Debt instrument, interest rate terms	If the loan is converted to a Base Rate Loan, then such loan will bear interest at a rate per annum equal to the Base Rate (defined as a rate per annum equal to the greatest of (a) the Federal Funds Rate in effect on such day plus 0.50%, (b) the Prime Rate in effect on such day, or (c) a per annum rate equal to LIBOR determined with respect to an interest period of one month plus 1.00%) plus 1.25%.
Line of credit facility, collateral	All obligations of the Company under the Loan Agreement are secured by a first priority perfected lien against any and all personal property assets of the Company (other than certain excluded property).
Line of credit facility, expiration date	Sep. 14, 2017
Repurchase of common stock value	$ 2,000
Line of credit facility, covenant terms	The Loan Agreement requires the Company to comply with various financial, affirmative and negative covenants affecting its businesses and operations, including:· The Company will not be a party to mergers, acquisitions, consolidations, reorganizations or similar transactions. · The Company will not sell, lease, transfer or otherwise dispose of any of its properties or assets (subject to certain exceptions set forth in the Loan Agreement). · The Company will not declare, pay or make any dividend or distribution on any shares of common or preferred stock or make any cash payment to repurchase or otherwise retire any common or preferred stock, provided that the Company may repurchase up to $2 million of its common stock pursuant to its announced stock repurchase plan, subject to certain conditions. · The fixed charge coverage ratio must not be less than 1.10 to 1.00. · The Company will not permit capital expenditures during any fiscal year to exceed $3.5 million.
Permit capital expenditures	$ 3,500
Line of credit facility, covenant compliance			The Company was in compliance with all of the material covenants of the Loan Agreement as of June 25, 2016 other than the fixed charge coverage ratio, for which compliance is not required from the fiscal month ending April 30, 2016 through the fiscal month ending December 31, 2016.
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt instrument, basis spread on variable rate	2.25%
Line of Credit [Member] | Maximum [Member]
Pledged financial instruments, not separately reported, securities for letter of credit facilities	$ 2,500

Segment Information - Schedule

Segment Information - Schedule of Segment Information for Operation Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2016	Jun. 27, 2015	Jun. 25, 2016	Jun. 27, 2015
Revenue	$ 13,842	$ 21,053	$ 28,654	$ 44,155
Gross profit	1,853	4,609	3,526	8,731
SG&A	3,313	3,555	6,703	7,559
Operating income (loss)	(1,460)	1,054	(3,177)	1,172
Other income (expense)	1	26	7	645
Interest expense, net	(49)	(44)	(85)	(66)
Tax expense	(95)	(60)	903	(152)
Net income	(1,603)	976	(2,352)	1,599
EPCM [Member]
Revenue	8,257	12,931	16,784	26,229
Gross profit	789	2,074	1,423	4,132
SG&A	754	739	1,523	1,463
Operating income (loss)	35	1,335	(100)	2,669
Automation [Member]
Revenue	5,585	8,122	11,870	17,926
Gross profit	1,064	2,535	2,103	4,599
SG&A	775	579	1,518	1,285
Operating income (loss)	289	1,956	585	3,314
Corporate [Member]
Revenue
Gross profit
SG&A	1,784	2,237	3,661	4,811
Operating income (loss)	$ (1,784)	$ (2,237)	$ (3,661)	$ (4,811)

Segment Information - Schedul20

Segment Information - Schedule of Segment Reporting Information for Assets (Details) - USD ($) $ in Thousands	Jun. 25, 2016	Dec. 26, 2015
Total Assets	$ 48,751	$ 52,200
EPCM [Member]
Total Assets	8,238	13,009
Automation [Member]
Total Assets	13,842	19,570
Corporate [Member]
Total Assets	$ 26,671	$ 19,621

Federal and State Income Taxes

Federal and State Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2016	Jun. 27, 2015	Jun. 25, 2016	Jun. 27, 2015
Income Tax Disclosure [Abstract]
Maximum percentage of likelihood of being sustained upon examination			50.00%
Income tax expense (benefit)	$ 100	$ 100	$ 900	$ 200
Effective income tax rate reconciliation, percent	6.30%	5.80%	27.70%	8.70%
Effective income tax rate reconciliation, at federal statutory income tax rate, percent			35.00%	35.00%

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 25, 2016	Jun. 25, 2016	Apr. 21, 2015
Number of shares purchase during period		499,344
Number of shares purchase during period, value		$ 533
Number of shares repurchase during priod	180,989
Number of shares repurchase during priod, value	$ 228
Board Of Directors [Member]
Repurchase of stock authorized			$ 2,000