Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 07, 2017 | Jun. 25, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | ENGLOBAL CORP | ||
Entity Central Index Key | 933,738 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 14,470,879 | ||
Entity Common Stock, Shares Outstanding | 27,190,082 | ||
Trading Symbol | ENG | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 15,687 | $ 7,806 |
Trade receivables, net of allowances of $422 and $1,150 | 10,455 | 24,097 |
Prepaid expenses and other current assets | 1,021 | 1,308 |
Notes receivable | 116 | 151 |
Income tax receivable | 103 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 2,434 | 4,062 |
Total Current Assets | 29,816 | 37,424 |
Property and Equipment, net | 1,194 | 2,145 |
Goodwill | 2,806 | 2,806 |
Deferred tax asset | 10,208 | 9,137 |
Other Assets | 412 | 688 |
Total Assets | 44,436 | 52,200 |
Current Liabilities: | ||
Accounts payable | 2,876 | 3,182 |
Accrued compensation and benefits | 2,099 | 3,086 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 1,371 | 3,912 |
Other current liabilities | 1,270 | 1,690 |
Total Current Liabilities | 7,616 | 11,870 |
Long-term Leases | 14 | 318 |
Total Liabilities | 7,630 | 12,188 |
Commitments and Contingencies (Notes 7 and 14) | ||
Stockholders' Equity: | ||
Common stock - $0.001 par value; 75,000,000 shares authorized; 27,190,082 and 28,058,513 shares issued and outstanding at December 31, 2016 and December 26, 2015 | 27 | 28 |
Additional paid-in capital | 36,322 | 37,185 |
Accumulated earnings | 457 | 2,799 |
Total Stockholders' Equity | 36,806 | 40,012 |
Total Liabilities and Stockholders' Equity | $ 44,436 | $ 52,200 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 422 | $ 1,150 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares outstanding | 27,190,082 | 28,058,513 |
Common stock, shares issued | 27,190,082 | 28,058,513 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Income Statement [Abstract] | ||
Operating revenues | $ 59,224 | $ 79,605 |
Operating costs | 49,112 | 63,337 |
Gross profit | 10,112 | 16,268 |
Operating costs and expenses: | ||
Selling, general, and administrative expenses | 13,350 | 14,168 |
Operating income (loss) | (3,238) | 2,100 |
Other income (expense) | ||
Interest expense, net | (173) | (135) |
Other income, net | 42 | 357 |
Income (loss) before income taxes | (3,369) | 2,322 |
Benefit for federal and state income taxes | 1,027 | 8,214 |
Net income (loss) | $ (2,342) | $ 10,536 |
Basic and diluted income (loss) per common share | $ (0.08) | $ 0.38 |
Basic and diluted weighted average shares used in computing income (loss) per share: | 27,653 | 28,023 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Earnings [Member] | Treasury Stock [Member] | Total |
Balance at beginning of year at Dec. 26, 2014 | $ 28 | $ 39,103 | $ (7,737) | $ (2,362) | |
Stock repurchased | (54) | ||||
Share-based compensation | 498 | ||||
Treasury stock retired | (2,416) | 2,416 | $ 100 | ||
Net income (loss) | 10,536 | 10,536 | |||
Balance at end of year at Dec. 26, 2015 | 28 | 37,185 | 2,799 | 40,012 | |
Stock repurchased | (1,353) | ||||
Share-based compensation | 489 | ||||
Treasury stock retired | (1) | (1,352) | 1,353 | 1,300 | |
Net income (loss) | (2,342) | (2,342) | |||
Balance at end of year at Dec. 31, 2016 | $ 27 | $ 36,322 | $ 457 | $ 36,806 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Cash Flows from Operating Activities: | ||
Net Income (loss) | $ (2,342) | $ 10,536 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 1,143 | 1,456 |
Deferred income tax benefit | (1,071) | (9,137) |
Share-based compensation expense | 489 | 498 |
Loss on disposal of asset | (6) | |
Noncash change in note receivable | (635) | |
Changes in current assets and liabilities, net of acquisitions and dispositions: | ||
Trade receivables | 13,562 | 5,777 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,628 | (516) |
Prepaid expenses and other assets | 461 | (333) |
Accounts payable | (306) | (2,675) |
Accrued compensation and benefits | (987) | (551) |
Billings in excess of costs and estimated earnings on uncompleted contracts | (2,541) | (5,920) |
Other liabilities | (98) | (1,213) |
Income taxes receivable (payable) | (367) | (134) |
Net cash provided by (used in) operating activities | 9,565 | (2,847) |
Cash Flows from Investing Activities: | ||
Property and equipment acquired | (64) | (1,005) |
Proceeds from notes receivable | 115 | 6,083 |
Net cash provided by investing activities | 51 | 5,078 |
Cash Flows from Financing Activities: | ||
Purchase of treasury stock | (1,353) | (54) |
Debt issuance costs | (20) | (7) |
Payments on capitalized leases | (362) | (577) |
Net cash used in financing activities | (1,735) | (638) |
Net change in cash and cash equivalents | 7,881 | 1,593 |
Cash and cash equivalents, at beginning of year | 7,806 | 6,213 |
Cash and cash equivalents, at end of year | 15,687 | 7,806 |
Cash paid during the period for: | ||
Income taxes, net of refunds | 410 | 485 |
Interest | 410 | 485 |
Noncash activity: | ||
Trade receivable converted to note receivable | 151 | |
Supplemental disclosures of noncash investment and financing activities | ||
Property and equipment purchased under capital leases | $ 415 |
Organization And Basis Of Prese
Organization And Basis Of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization And Basis Of Presentation | NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION Organization and Operations Basis of Presentation |
Accounting Policies and New Acc
Accounting Policies and New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies and New Accounting Pronouncements | NOTE 2 - ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS Consolidation Policy Fair Value Measurements Cash and cash equivalents We utilize a cash management system whereby U.S. bank accounts are swept daily. Major operating bank accounts are automatically replenished daily to meet check-clearing requirements. Outstanding checks are recorded as a reduction of cash when they are issued. Our checks that have not yet been paid by banks at the reporting date are reclassified to accounts payable in the financial statements. The reclassification to accounts payable for outstanding checks was $0 and $0.3 million as of December 31, 2016 and December 26, 2015, respectively. Receivables Concentration of Credit Risk Our businesses or product lines are largely dependent on a relatively few large customers. Although we believe we have an extensive customer base, the loss of one of these large customers or if such customers were to incur a prolonged period of decline in business, our financial condition and results of operations could be adversely affected. For the year ended December 31, 2016, each of two customers provided more than 10% of our consolidated operating revenues (15.4% and 14.0%). Two customers provided more than 10% of our consolidated operating revenues for the year ended December 26, 2015 (15.0% and 14.8%). Amounts included in trade receivables related to these customers totaled $0.3 million and $1.1 million at December 31, 2016 and $1.8 million and $5.4 million at December 26, 2015. We extend credit to customers in the normal course of business. We have established various procedures to manage our credit exposure, including initial credit approvals, credit limits and terms, letters of credit, and occasionally through rights of offset. We also use prepayments and guarantees to limit credit risk to ensure that our established credit criteria are met. Our most significant exposure to credit risks relates to situations under which we provide services early in the life of a project that is dependent on financing. Risks increase in times of general economic downturns and under conditions that threaten project feasibility. Property and Equipment Asset Group Years Shop equipment 5 - 10 Furniture and fixtures 5 - 7 Computer equipment; Autos and trucks 3 - 5 Software 3 - 5 Leasehold improvements are amortized over the term of the related lease. See Note 4 for details related to property and equipment and related depreciation. Expenditures for maintenance and repairs are expensed as incurred. Upon disposition or retirement of property and equipment, any gain or loss is charged to operations. Debt Issue Costs Goodwill Other intangible assets Impairment of Long-Lived Assets Revenue Recognition Profits and losses on our fixed-price contracts are recognized on the percentage-of-completion method of accounting, measured by the percentage-of-contract cost incurred to date relative to estimated total contract cost. Contract costs used for estimating percentage-of-completion factors include professional compensation and related benefits, materials, subcontractor services and other direct cost of projects. Costs recognized for labor include all actual employee compensation plus a burden factor to cover estimated variable labor expenses. These variable labor expenses consist of payroll taxes, self-insured medical plan expenses, workers’ compensation insurance, general liability insurance and paid time off. Under the percentage-of-completion method, revenue recognition is dependent upon the accuracy of a variety of estimates, including the progress of engineering and design efforts, material installation, labor productivity, cost estimates and others. These estimates are based on various professional judgments and are difficult to accurately determine until projects are significantly underway. Due to uncertainties inherent to the estimation process, it is possible that actual percentage-of-completion may vary materially from our estimates. Estimating errors may cause errors in revenue recognition on uncompleted contracts and may even result in losses on the contracts. Anticipated losses on uncompleted contracts are charged to operations as soon as such losses can be estimated. Changes in job performance, job conditions, estimated profitability and final contract settlements may result in revisions to costs and revenues and are recognized in the period in which the revisions are determined. Costs related to change orders are recognized when they are incurred. Change orders are included in the total estimated contract revenue when it is more likely than not that the change orders will result in a bona fide addition to value that can be reliably estimated. Income Taxes A valuation allowance is recorded to reduce previously recorded tax assets when it becomes more-likely-than-not such asset will not be realized. We evaluate the realizability of deferred tax assets based on all available evidence, both positive and negative, regarding historical operating results, including the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. We account for uncertain tax positions in accordance with ASC 740. When uncertain tax positions exist, we recognize the tax benefit of the tax positions to the extent that the benefit will more-likely-than-not be realized. The determination as to whether the tax benefit will more-likely-than-not be realized is based upon technical merits of the tax positions as well as consideration of the available facts and circumstances. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. Earnings per Share Treasury Stock Stock–Based Compensation Changes in Accounting Policies Balance Sheet Classification of Deferred Taxes (Topic 740) In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Topic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. New Accounting Pronouncements Not Yet Adopted Revenue from Contracts with Customers (Topic 606): In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of Certain Balance Sheet Accounts | NOTE 3 - DETAIL OF CERTAIN BALANCE SHEET ACCOUNTS The components of trade receivables, net as of December 31, 2016 and December 26, 2015, are as follows (amounts in thousands): 2016 2015 Amounts billed $ 6,699 $ 12,214 Amounts unbilled 2,729 6,175 Retainage 1,449 6,858 Less: Allowance for uncollectible accounts (422 ) (1,150 ) Trade receivables, net $ 10,455 $ 24,097 The components of short-term and long-term notes receivable as of December 31, 2016 and December 26, 2015, are as follows (amounts in thousands): 2016 2015 Aspen $ — $ 514 Increased Performance 116 151 Reserve for uncollectible accounts — (514 ) Total notes receivable 116 151 Less current portion (116 ) (151 ) Notes Receivable, net of current portion $ — $ — The Increased Performance note receivable was a trade receivable converted to a note during 2015, bearing interest at 0% per annum and payable in installments through its maturity on October 1, 2016. During 2016, Increased Performance made minimal payments on this note and the Company continues to pursue its collection. The Aspen note bears interest at 6% per annum, was due and payable in September 2011, and was fully reserved in 2015. During 2016, the Company settled the Aspen note for $0.1 million and wrote-off the remaining balance against the reserve resulting in no impact on 2016 earnings. The components of other current liabilities are as follows as of December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Accrual for known contingencies $ 747 $ 781 Customer prepayments 150 91 Deferred rent 140 263 Current portion of capital leases 229 287 Federal and state income taxes payable — 264 Accrued interest and other 4 4 Other current liabilities $ 1,270 $ 1,690 Our reserve for known contingencies includes litigation accruals and related legal fees, if any. See “Note 14 – Commitments and Contingencies” for further information. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment consist of the following at December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Computer equipment and software $ 3,768 $ 6,961 Shop equipment 879 1,044 Furniture and fixtures 286 542 Building and leasehold improvements 2,032 2,383 Autos and trucks 85 159 $ 7,050 $ 11,089 Accumulated depreciation and amortization (5,856 ) (8,971 ) $ 1,194 $ 2,118 Property and equipment implementations in process — 27 Property and equipment, net $ 1,194 $ 2,145 Depreciation expense was $1.0 million and $1.2 million for the years ended December 31, 2016 and December 26, 2015, respectively. |
Contracts
Contracts | 12 Months Ended |
Dec. 31, 2016 | |
Contractors [Abstract] | |
Contracts | NOTE 5 - CONTRACTS Costs, estimated earnings and billings on uncompleted contracts consist of the following at December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Costs incurred on uncompleted contracts $ 58,933 $ 67,488 Estimated earnings on uncompleted contracts 24,694 27,492 Earned revenues 83,627 94,980 Less: billings to date 82,564 94,830 Net costs in excess of billings on uncompleted contracts $ 1,063 $ 150 Costs and estimated earnings in excess of billings on uncompleted contracts $ 2,434 $ 4,062 Billings in excess of costs and estimated earnings on uncompleted contracts (1,371 ) (3,912 ) Net costs in excess of billings on uncompleted contracts $ 1,063 $ 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 $0.9 million in contingency amounts as of December 31, 2016 compared to $2.4 million as of December 26, 2015. Losses on contracts are recorded in full as they are identified. 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 December 31, 2016 and December 26, 2015. This deferred revenue represents work on not to exceed contracts that has been performed but has not been billed nor been 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. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facilities | NOTE 6 - 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 the Company in the form of revolving loans of up to the lesser of $10.0 million (the “Commitment”) or the Borrowing Base. 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 this Loan Agreement as of December 31, 2016 or as of 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 was 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 was not permitted to have any obligations or borrowings related to working capital outstanding and the Company was required to retain a cash balance of at least $5.0 million in collection accounts with the Lender. We currently cannot borrow under the Loan Agreement due to an existing event of default resulting from our failure to comply with the fixed charge coverage ratio financial covenant after December 31, 2016. While there are no revolving loans currently outstanding under the Loan Agreement, during February 2017, a letter of credit in the amount of $628,000 and with a termination date of December 31, 2017 was issued under the Loan Agreement that we collateralized with cash. While we are currently negotiating with the Lender to address the outstanding event of default and our ability to borrow under the Loan Agreement in the future, we cannot assure you that we will reach an agreement with the Lender. If we are unable to address the outstanding event of default, we or the Lender may terminate the Loan Agreement and the Lender may accelerate any outstanding loan amounts. 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 $2.0 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. While the Company was in compliance with all of the material covenants of the Loan Agreement as of December 31, 2016, the Company is not presently in compliance with the fixed charge coverage ratio financial covenant, which is an event of default under the Loan Agreement as described above. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Operating Leases | NOTE 7 - OPERATING LEASES We lease equipment and office space under long-term operating lease agreements. The future minimum lease payments on leases (with initial or remaining non-cancelable terms in excess of one year) as of December 31, 2016 are as follows (amounts in thousands): Years Ending Amount December 30, 2017 $ 1,944 December 29, 2018 993 December 28, 2019 458 December 26, 2020 — December 25, 2021 and after — Total minimum lease payments $ 3,395 Rent expense was $2.4 million for the year ended December 31, 2016 and $2.5 million for the year ended December 26, 2015. Certain of our lease agreements may include items such as abated lease payments, capital improvement funding, step rent provisions and escalation clauses that affect the lease payment schedule and do not qualify as contingent rentals. These items have been included in the minimum lease payment amount on a straight-line basis over the minimum lease term. Any lease payments that are dependent on a factor related to the future use of the property have been excluded from the minimum lease payment amount and are recognized as incurred. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 8 - EMPLOYEE BENEFIT PLANS ENGlobal sponsors a 401(k) profit sharing plan for its employees. The Company, at the direction of the Board of Directors, may make discretionary contributions. Our employees may elect to make contributions pursuant to a salary reduction agreement upon meeting age and length-of-service requirements. For active participants, we match 33.3% of elective deferrals up to 6%, for a maximum of 2% of employee’s compensation. We have made contributions totaling $0.3 million and $0.4 million to the plan for the year ended December 31, 2016 and December 26, 2015, respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | NOTE 9 - STOCK COMPENSATION PLANS The Company’s 2009 Equity Incentive Plan, as amended (the “Equity Plan,” or the “Plan”) provides for the aggregate issuance of up to 2,580,000 shares of common stock. The Equity Plan provides for grants of non-statutory options, incentive stock options, restricted stock awards, performance shares, performance units, restricted stock units and other stock-based awards, in order to enhance the ability of ENGlobal to motivate current employees, to attract employees of outstanding ability and to provide for grants to be made to non-employee directors. Grants to employees will generally vest in four equal annual installments on the anniversary date of grant. Grants to non-employee directors will generally vest quarterly over a one-year period coinciding with their service term. At December 31, 2016, 727,507 shares of common stock are available to be issued pursuant to the Equity Plan. We recognized non-cash stock-based compensation expense related to our Equity Plan of $0.5 million and $0.5 million, with a tax impact of $0.2 million and $70,000, for the fiscal years ended December 31, 2016 and December 26, 2015, respectively. Stock Option Awards Vested and Exercisable Balance Number of Shares Outstanding Weighted Average Exercise Price Balance at December 26, 2015 300,000 300,000 $ 10.04 Cancelled or expired (150,000 ) (150,000 ) 9.15 Balance at December 31, 2016, 150,000 150,000 $ 10.93 The number of options exercisable at December 31, 2016 was 150,000 with a weighted average remaining contractual life of 0.45 years and a weighted-average exercise price of $10.93 per share. All outstanding stock options during 2016 and 2015 were fully vested prior to 2015 and therefore we did not recognize any stock compensation expense related to stock options in 2016 or 2015. Restricted Stock Awards th The following is a summary of the status of our restricted stock awards and of changes in restricted stock outstanding for the year ended December 31, 2016: Number of unvested restricted shares Weighted- average grant-date fair value Outstanding at December 26, 2015 542,462 $ 1.38 Granted 297,949 1.03 Vested (288,311 ) 1.57 Forfeited (45,350 ) 1.85 Outstanding at December 31,2016 506,750 $ 1.27 As of December 31, 2016, there was $0.6 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 2.1 years. During 2016 and 2015, the Company granted the following restricted stock awards. Date Issued Issued to Number of Shares Market Price Fair Value June 16, 2016 Directors (3) 122,949 $ 1.22 $ 150,000 June 2, 2016 Employees (1) 40,000 $ 1.05 $ 42,000 March 1, 2016 Employees (9) 135,000 $ 0.86 $ 116,100 June 18, 2015 Directors (3) 107,913 $ 1.39 $ 150,000 February 9, 2015 Employees (17) 305,100 $ 1.98 $ 604,100 January 8, 2015 Employees (1) 4,000 $ 1.89 $ 7,560 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Treasury Stock | NOTE 10 - TREASURY STOCK On July 22, 2015, the Board approved the retirement of 981,099 shares of existing treasury shares. On April 21, 2015, we announced the Board of Directors had authorized the repurchase of up to $2.0 million of our common stock from time to time through open market or privately negotiated transactions, based on prevailing market conditions. We are 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. Under this program, we purchased and retired 1,074,150 shares at a cost of $1.3 million during the year ended December 31, 2016 and we purchased and retired 53,744 shares at a cost of $0.1 million during the year ended December 26, 2015. |
Redeemable Preferred Stock
Redeemable Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Redeemable Preferred Stock | NOTE 11 - REDEEMABLE PREFERRED STOCK We are authorized to issue 2,000,000 shares of Preferred Stock, par value $0.001 per share (the “Preferred Stock”). The Board of Directors has the authority to approve the issuance of all or any of these shares of the Preferred Stock in one or more series, to determine the number of shares constituting any series and to determine any voting powers, conversion rights, dividend rights and other designations, preferences, limitations, restrictions and rights relating to such shares without any further action by the stockholders. While there are no current plans to issue the Preferred Stock, it was authorized in order to provide the Company with flexibility to take advantage of contingencies such as favorable acquisition opportunities. |
Federal and State Income Taxes
Federal and State Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Federal and State Income Taxes | NOTE 12 - FEDERAL AND STATE INCOME TAXES The components of our income tax benefit for the years ended December 31, 2016 and December 26, 2015 were as follows (amounts in thousands): 2016 2015 Current: Federal $ — $ (21 ) Foreign Tax 81 805 State (37 ) 139 Total current 44 923 Deferred: Federal (986 ) (8,631 ) State (85 ) (506 ) Total deferred (1,071 ) (9,137 ) Total income tax benefit $ (1,027 ) $ (8,214 ) The following is a reconciliation of expected income tax expense (benefit) to actual income tax benefit for the years ended December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Federal income tax expense (benefit) at 35% $ (1,179 ) $ 813 State income tax, net of federal income tax effect (12 ) (416 ) Change of effective state tax rate 4 — Nondeductible expenses 80 222 Research and development credit (72 ) (297 ) Current year expiration of stock options 436 163 Prior year adjustments and true-ups (354 ) 2,261 Change in valuation allowance 70 (10,960 ) Total tax benefit $ (1,027 ) $ (8,214 ) The components of the deferred tax asset (liability) consisted of the following at December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Deferred tax asset (liabilities) Federal net operating loss carry-forward $ 6,417 $ 4,339 Tax credit carryforwards 2,126 1,873 Allowance for uncollectible accounts 156 616 Accruals not yet deductible for tax purposes 755 1,182 Goodwill 948 1,122 Depreciation 339 64 Other 60 464 Deferred tax assets 10,801 9,660 Less: Valuation allowance (593 ) (523 ) Deferred tax assets, net $ 10,208 $ 9,137 We account for deferred income taxes in accordance with ASC 740, which provides for recording deferred taxes using an asset and liability method. We recognize deferred tax assets and liabilities based on differences between the financial statement carrying amounts and the tax bases of assets and liabilities including net operating loss and tax credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. The provision for income taxes represents the current taxes payable or refundable for the period plus or minus the tax effect of the net change in the deferred tax assets and liabilities during the period. Tax law and rate changes are reflected in income in the period such changes are enacted. We record a valuation allowance to reduce the carrying value of our deferred tax assets when it is more likely than not that a portion or all of the deferred tax assets will expire before realization of the benefit or future deductibility is not probable. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character and in the related jurisdiction in the future. In evaluating our ability to recover our deferred tax assets, we consider the available positive and negative evidence, including our past operating results, the existence of cumulative losses in the most recent years and our forecast of future taxable income. In estimating future taxable income, we develop assumptions, including the amount of pretax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment. For the year ended December 31, 2016, we recognized an income tax benefit of $1.0 million on a pre-tax loss of $3.4 million as compared to an income tax benefit of $8.2 million on $2.3 million of pre-tax income for year ended December 26, 2015. During 2016, our tax benefit was (A) increased primarily by (i) $354,000 resulting from return to accrual adjustments and true-ups of deferred tax assets and liabilities and foreign taxes payable and (ii) $72,000 for an estimated research and development credit and (B) decreased by (i) $436,000 due to the current year expiration of stock options, (ii) a $70,000 increase in the valuation allowance and (iii) $80,000 associated with permanent differences. During 2015, a significant tax benefit was recognized primarily related to the reversal of $11.0 million of valuation allowance on certain of our deferred tax assets. We account for uncertain tax positions in accordance with ASC 740. When uncertain tax positions exist, we recognize the tax benefit of the tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon technical merits of the tax positions as well as consideration of the available facts and circumstances. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of December 31, 2016 and December 26, 2015, we do not have any significant uncertain tax positions. We had a federal net operating loss carry-forward at December 31, 2016 of approximately $17.0 million, which will begin to expire starting in 2032. At December 31, 2016, we had Alternative Minimum Tax (AMT) and federal research and development tax credit carryforwards of approximately $0.1 and $1.0 million, respectively, available to reduce future tax liabilities. The AMT credit is available for an indefinite carryforward period and the research and development tax credit will begin to expire starting in 2030. At December 31, 2016, we had foreign tax credits of approximately $0.9 million which will begin to expire starting in 2025. However, to the uncertainty of realization, the Company has recorded a valuation allowance of $0.6 million against this asset as of December 31, 2016. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 13 - 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. Sales, operating income, identifiable assets, capital expenditures and depreciation 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 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 years ended December 31, 2016 and December 26, 2015 is as follows (amounts in thousands): For the year ended December 31, 2016: EPCM Automation Corporate Consolidated Operating revenues $ 33,266 $ 25,958 $ — $ 59,224 Operating income (loss) 731 3,281 (7,250 ) (3,238 ) Depreciation and amortization 28 381 734 1,143 Tangible assets 5,810 8,100 27,610 41,520 Goodwill 720 2,086 — 2,806 Other intangible assets — 110 — 110 Total assets 6,530 10,296 27,610 44,436 Capital expenditures 44 14 6 64 For the year ended December 26, 2015: EPCM Automation Corporate Consolidated Operating revenues $ 49,277 $ 30,328 $ — $ 79,605 Operating income (loss) 4,219 6,832 (8,951 ) 2,100 Depreciation and amortization 177 614 665 1,456 Tangible assets 12,289 17,253 19,621 49,163 Goodwill 720 2,086 — 2,806 Other intangible assets — 231 — 231 Total assets 13,009 19,570 19,621 52,200 Capital expenditures 16 189 800 1,005 Financial Information by Geographic Area and Segments Revenue from our Caspian Pipeline Consortium Project in Russia and Kazakhstan contributed $8.3 million and $11.8 million in revenues in our Automation segment for the years ended December 31, 2016 and December 26, 2015, respectively. Company assets, other than cash and trade receivables, located in this region are insignificant. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14 - COMMITMENTS AND CONTINGENCIES Employment Agreements We have employment agreements with certain of our executive and other officers with severance terms ranging from six to twelve months. Such agreements provide for minimum salary levels. If employment is terminated for any reason other than 1) termination for cause, 2) voluntary resignation or 3) the employee’s death, we are obligated to provide a severance benefit equal to six months of the employee’s salary, and, at our option, an additional six months at 50% of the employee’s salary in exchange for an extension of a non-competition agreement. The terms of these agreements include evergreen provisions allowing for automatic renewal. No liability is recorded for our obligations under employment agreements as the amounts that will ultimately be paid cannot be reasonably estimated, if any. 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, either individually or in the aggregate, to have a material adverse effect on our financial position, results of operations or liquidity. Insurance We carry 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. We 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 our experience, and specific stop loss levels provide protection for the Company. We believe we have adequate reserves for the self-funded portion of its insurance policies. We are 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. |
Accounting Policies and New A21
Accounting Policies and New Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation Policy | Consolidation Policy |
Fair Value Measurements | Fair Value Measurements |
Cash and cash equivalents | Cash and cash equivalents We utilize a cash management system whereby U.S. bank accounts are swept daily. Major operating bank accounts are automatically replenished daily to meet check-clearing requirements. Outstanding checks are recorded as a reduction of cash when they are issued. Our checks that have not yet been paid by banks at the reporting date are reclassified to accounts payable in the financial statements. The reclassification to accounts payable for outstanding checks was $0 and $0.3 million as of December 31, 2016 and December 26, 2015, respectively. |
Receivables | Receivables |
Concentration of Credit Risk | Concentration of Credit Risk Our businesses or product lines are largely dependent on a relatively few large customers. Although we believe we have an extensive customer base, the loss of one of these large customers or if such customers were to incur a prolonged period of decline in business, our financial condition and results of operations could be adversely affected. For the year ended December 31, 2016, each of two customers provided more than 10% of our consolidated operating revenues (15.4% and 14.0%). Two customers provided more than 10% of our consolidated operating revenues for the year ended December 26, 2015 (15.0% and 14.8%). Amounts included in trade receivables related to these customers totaled $0.3 million and $1.1 million at December 31, 2016 and $1.8 million and $5.4 million at December 26, 2015. We extend credit to customers in the normal course of business. We have established various procedures to manage our credit exposure, including initial credit approvals, credit limits and terms, letters of credit, and occasionally through rights of offset. We also use prepayments and guarantees to limit credit risk to ensure that our established credit criteria are met. Our most significant exposure to credit risks relates to situations under which we provide services early in the life of a project that is dependent on financing. Risks increase in times of general economic downturns and under conditions that threaten project feasibility. |
Property and Equipment | Property and Equipment Asset Group Years Shop equipment 5 - 10 Furniture and fixtures 5 - 7 Computer equipment; Autos and trucks 3 - 5 Software 3 - 5 Leasehold improvements are amortized over the term of the related lease. See Note 4 for details related to property and equipment and related depreciation. Expenditures for maintenance and repairs are expensed as incurred. Upon disposition or retirement of property and equipment, any gain or loss is charged to operations. |
Debt Issue Costs | Debt Issue Costs |
Goodwill | Goodwill |
Other intangible assets | Other intangible assets |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Revenue Recognition | Revenue Recognition Profits and losses on our fixed-price contracts are recognized on the percentage-of-completion method of accounting, measured by the percentage-of-contract cost incurred to date relative to estimated total contract cost. Contract costs used for estimating percentage-of-completion factors include professional compensation and related benefits, materials, subcontractor services and other direct cost of projects. Costs recognized for labor include all actual employee compensation plus a burden factor to cover estimated variable labor expenses. These variable labor expenses consist of payroll taxes, self-insured medical plan expenses, workers’ compensation insurance, general liability insurance and paid time off. Under the percentage-of-completion method, revenue recognition is dependent upon the accuracy of a variety of estimates, including the progress of engineering and design efforts, material installation, labor productivity, cost estimates and others. These estimates are based on various professional judgments and are difficult to accurately determine until projects are significantly underway. Due to uncertainties inherent to the estimation process, it is possible that actual percentage-of-completion may vary materially from our estimates. Estimating errors may cause errors in revenue recognition on uncompleted contracts and may even result in losses on the contracts. Anticipated losses on uncompleted contracts are charged to operations as soon as such losses can be estimated. Changes in job performance, job conditions, estimated profitability and final contract settlements may result in revisions to costs and revenues and are recognized in the period in which the revisions are determined. Costs related to change orders are recognized when they are incurred. Change orders are included in the total estimated contract revenue when it is more likely than not that the change orders will result in a bona fide addition to value that can be reliably estimated. |
Income Taxes | Income Taxes A valuation allowance is recorded to reduce previously recorded tax assets when it becomes more-likely-than-not such asset will not be realized. We evaluate the realizability of deferred tax assets based on all available evidence, both positive and negative, regarding historical operating results, including the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. We account for uncertain tax positions in accordance with ASC 740. When uncertain tax positions exist, we recognize the tax benefit of the tax positions to the extent that the benefit will more-likely-than-not be realized. The determination as to whether the tax benefit will more-likely-than-not be realized is based upon technical merits of the tax positions as well as consideration of the available facts and circumstances. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. |
Earnings per Share | Earnings per Share |
Treasury Stock | Treasury Stock |
Stock-Based Compensation | Stock–Based Compensation |
Changes in Accounting Policies | Changes in Accounting Policies Balance Sheet Classification of Deferred Taxes (Topic 740) In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Topic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. |
New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Not Yet Adopted Revenue from Contracts with Customers (Topic 606): In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. |
Accounting Policies and New A22
Accounting Policies and New Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Assets | Asset Group Years Shop equipment 5 - 10 Furniture and fixtures 5 - 7 Computer equipment; Autos and trucks 3 - 5 Software 3 - 5 |
Detail of Certain Balance She23
Detail of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Trade Receivables | The components of trade receivables, net as of December 31, 2016 and December 26, 2015, are as follows (amounts in thousands): 2016 2015 Amounts billed $ 6,699 $ 12,214 Amounts unbilled 2,729 6,175 Retainage 1,449 6,858 Less: Allowance for uncollectible accounts (422 ) (1,150 ) Trade receivables, net $ 10,455 $ 24,097 |
Schedule of Short-term and Long-term Notes Receivable | The components of short-term and long-term notes receivable as of December 31, 2016 and December 26, 2015, are as follows (amounts in thousands): 2016 2015 Aspen $ — $ 514 Increased Performance 116 151 Reserve for uncollectible accounts — (514 ) Total notes receivable 116 151 Less current portion (116 ) (151 ) Notes Receivable, net of current portion $ — $ — |
Schedule of Other Current Liabilities | The components of other current liabilities are as follows as of December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Accrual for known contingencies $ 747 $ 781 Customer prepayments 150 91 Deferred rent 140 263 Current portion of capital leases 229 287 Federal and state income taxes payable — 264 Accrued interest and other 4 4 Other current liabilities $ 1,270 $ 1,690 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following at December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Computer equipment and software $ 3,768 $ 6,961 Shop equipment 879 1,044 Furniture and fixtures 286 542 Building and leasehold improvements 2,032 2,383 Autos and trucks 85 159 $ 7,050 $ 11,089 Accumulated depreciation and amortization (5,856 ) (8,971 ) $ 1,194 $ 2,118 Property and equipment implementations in process — 27 Property and equipment, net $ 1,194 $ 2,145 |
Contracts (Tables)
Contracts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Contractors [Abstract] | |
Schedule of Costs Estimated Earnings and Billings on Uncompleted Contracts | Costs, estimated earnings and billings on uncompleted contracts consist of the following at December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Costs incurred on uncompleted contracts $ 58,933 $ 67,488 Estimated earnings on uncompleted contracts 24,694 27,492 Earned revenues 83,627 94,980 Less: billings to date 82,564 94,830 Net costs in excess of billings on uncompleted contracts $ 1,063 $ 150 Costs and estimated earnings in excess of billings on uncompleted contracts $ 2,434 $ 4,062 Billings in excess of costs and estimated earnings on uncompleted contracts (1,371 ) (3,912 ) Net costs in excess of billings on uncompleted contracts $ 1,063 $ 150 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments on leases (with initial or remaining non-cancelable terms in excess of one year) as of December 31, 2016 are as follows (amounts in thousands): Years Ending Amount December 30, 2017 $ 1,944 December 29, 2018 993 December 28, 2019 458 December 26, 2020 — December 25, 2021 and after — Total minimum lease payments $ 3,395 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | Stock Option Awards Vested and Exercisable Balance Number of Shares Outstanding Weighted Average Exercise Price Balance at December 26, 2015 300,000 300,000 $ 10.04 Cancelled or expired (150,000 ) (150,000 ) 9.15 Balance at December 31, 2016, 150,000 150,000 $ 10.93 |
Schedule of Nonvested Restricted Stock Shares Activity | The following is a summary of the status of our restricted stock awards and of changes in restricted stock outstanding for the year ended December 31, 2016: Number of unvested restricted shares Weighted- average grant-date fair value Outstanding at December 26, 2015 542,462 $ 1.38 Granted 297,949 1.03 Vested (288,311 ) 1.57 Forfeited (45,350 ) 1.85 Outstanding at December 31,2016 506,750 $ 1.27 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | As of December 31, 2016, there was $0.6 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 2.1 years. During 2016 and 2015, the Company granted the following restricted stock awards. Date Issued Issued to Number of Shares Market Price Fair Value June 16, 2016 Directors (3) 122,949 $ 1.22 $ 150,000 June 2, 2016 Employees (1) 40,000 $ 1.05 $ 42,000 March 1, 2016 Employees (9) 135,000 $ 0.86 $ 116,100 June 18, 2015 Directors (3) 107,913 $ 1.39 $ 150,000 February 9, 2015 Employees (17) 305,100 $ 1.98 $ 604,100 January 8, 2015 Employees (1) 4,000 $ 1.89 $ 7,560 |
Federal and State Income Taxes
Federal and State Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of our income tax benefit for the years ended December 31, 2016 and December 26, 2015 were as follows (amounts in thousands): 2016 2015 Current: Federal $ — $ (21 ) Foreign Tax 81 805 State (37 ) 139 Total current 44 923 Deferred: Federal (986 ) (8,631 ) State (85 ) (506 ) Total deferred (1,071 ) (9,137 ) Total income tax benefit $ (1,027 ) $ (8,214 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of expected income tax expense (benefit) to actual income tax benefit for the years ended December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Federal income tax expense (benefit) at 35% $ (1,179 ) $ 813 State income tax, net of federal income tax effect (12 ) (416 ) Change of effective state tax rate 4 — Nondeductible expenses 80 222 Research and development credit (72 ) (297 ) Current year expiration of stock options 436 163 Prior year adjustments and true-ups (354 ) 2,261 Change in valuation allowance 70 (10,960 ) Total tax benefit $ (1,027 ) $ (8,214 ) |
Schedule of Deferred Tax Assets and Liabilities | The components of the deferred tax asset (liability) consisted of the following at December 31, 2016 and December 26, 2015 (amounts in thousands): 2016 2015 Deferred tax asset (liabilities) Federal net operating loss carry-forward $ 6,417 $ 4,339 Tax credit carryforwards 2,126 1,873 Allowance for uncollectible accounts 156 616 Accruals not yet deductible for tax purposes 755 1,182 Goodwill 948 1,122 Depreciation 339 64 Other 60 464 Deferred tax assets 10,801 9,660 Less: Valuation allowance (593 ) (523 ) Deferred tax assets, net $ 10,208 $ 9,137 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information for Operation Statement | Segment information for the years ended December 31, 2016 and December 26, 2015 is as follows (amounts in thousands): For the year ended December 31, 2016: EPCM Automation Corporate Consolidated Operating revenues $ 33,266 $ 25,958 $ — $ 59,224 Operating income (loss) 731 3,281 (7,250 ) (3,238 ) Depreciation and amortization 28 381 734 1,143 Tangible assets 5,810 8,100 27,610 41,520 Goodwill 720 2,086 — 2,806 Other intangible assets — 110 — 110 Total assets 6,530 10,296 27,610 44,436 Capital expenditures 44 14 6 64 For the year ended December 26, 2015: EPCM Automation Corporate Consolidated Operating revenues $ 49,277 $ 30,328 $ — $ 79,605 Operating income (loss) 4,219 6,832 (8,951 ) 2,100 Depreciation and amortization 177 614 665 1,456 Tangible assets 12,289 17,253 19,621 49,163 Goodwill 720 2,086 — 2,806 Other intangible assets — 231 — 231 Total assets 13,009 19,570 19,621 52,200 Capital expenditures 16 189 800 1,005 |
Accounting Policies and New A30
Accounting Policies and New Accounting Pronouncements (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Cash | $ 800 | |
Reclassification to accounts payable for outstanding checks | 0 | $ 300 |
Accounts receivable | 10,455 | 24,097 |
Debt issue costs capitalized | 38 | 90 |
Goodwill | 2,806 | 2,806 |
Intangible assets | 100 | |
Accumulated amortization | 3,100 | |
Amortization expense | 100 | 200 |
Automation Segment [Member] | ||
Goodwill | 2,086 | $ 2,086 |
EPCM [Member] | ||
Goodwill | 700 | |
Intangible assets | 200 | |
Accumulated amortization | $ 3,000 | |
Sales Revenue, Net [Member] | Customer One [Member] | ||
Concentration risk, percentage | 15.40% | 15.00% |
Sales Revenue, Net [Member] | Customer One [Member] | Customer Concentration Risk [Member] | ||
Accounts receivable | $ 300 | $ 1,800 |
Sales Revenue, Net [Member] | Customer Two [Member] | ||
Concentration risk, percentage | 14.00% | 14.80% |
Sales Revenue, Net [Member] | Customer Two [Member] | Customer Concentration Risk [Member] | ||
Accounts receivable | $ 1,100 | $ 5,400 |
Detail of Certain Balance She31
Detail of Certain Balance Sheet Accounts (Details Narrative) - Notes Receivable [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Debt instrument, interest rate | 0.00% |
Debt instrument, description | The Increased Performance note receivable was a trade receivable converted to a note during 2015, bearing interest at 0% per annum and payable in installments through its maturity on October 1, 2016. |
Debt instrument, maturity date | Oct. 1, 2016 |
Aspen [Member] | |
Debt instrument, interest rate | 6.00% |
Debt instrument, face amount | $ 100 |
Detail of Certain Balance She32
Detail of Certain Balance Sheet Accounts - Schedule of Trade Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Amounts billed | $ 6,699 | $ 12,214 |
Amounts unbilled | 2,729 | 6,175 |
Retainage | 1,449 | 6,858 |
Less: Allowance for uncollectible accounts | (422) | (1,150) |
Trade receivables, net | $ 10,455 | $ 24,097 |
Detail of Certain Balance She33
Detail of Certain Balance Sheet Accounts - Schedule of Short-term and Long-term Notes Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Reserve for uncollectible accounts | $ (514) | |
Total notes receivable | 116 | 151 |
Less current portion | (116) | (151) |
Notes Receivable, net of current portion | ||
Aspen [Member] | ||
Notes Receivable, Gross | 514 | |
Increased Performance [Member] | ||
Notes Receivable, Gross | $ 116 | $ 151 |
Detail of Certain Balance She34
Detail of Certain Balance Sheet Accounts - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrual for known contingencies | $ 747 | $ 781 |
Customer prepayments | 150 | 91 |
Deferred rent | 140 | 263 |
Current portion of capital leases | 229 | 287 |
Federal and state income taxes payable | 264 | |
Accrued interest and other | 4 | 4 |
Other current liabilities | $ 1,270 | $ 1,690 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,000 | $ 1,200 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Property and equipment, gross | $ 7,050 | $ 11,089 |
Accumulated depreciation and amortization | (5,856) | (8,971) |
Property plant and equipment net of accumulated depreciation | 1,194 | 2,118 |
Property and equipment implementations in process | 27 | |
Property and equipment, net | 1,194 | 2,145 |
Computer Equipment and Software [Member] | ||
Property and equipment, gross | 3,768 | 6,961 |
Shop Equipment [Member] | ||
Property and equipment, gross | 879 | 1,044 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 286 | 542 |
Building and Leasehold Improvements [Member] | ||
Property and equipment, gross | 2,032 | 2,383 |
Autos and Trucks [Member] | ||
Property and equipment, gross | $ 85 | $ 159 |
Contracts (Details Narrative)
Contracts (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Contractors [Abstract] | ||
Deferred revenue, description | 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. | |
Contingency amounts | $ 900 | $ 2,400 |
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 | Dec. 31, 2016 | Dec. 26, 2015 |
Contractors [Abstract] | ||
Costs incurred on uncompleted contracts | $ 58,933 | $ 67,488 |
Estimated earnings on uncompleted contracts | 24,694 | 27,492 |
Earned revenues | 83,627 | 94,980 |
Less: billings to date | 82,564 | 94,830 |
Net costs in excess of billings on uncompleted contracts | 1,063 | 150 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 2,434 | 4,062 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (1,371) | (3,912) |
Net costs in excess of billings on uncompleted contracts | $ 1,063 | $ 150 |
Credit Facilities (Details Narr
Credit Facilities (Details Narrative) - Line of Credit [Member] - USD ($) $ in Thousands | Sep. 16, 2014 | Dec. 31, 2016 |
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 | 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 the Company in the form of revolving loans of up to the lesser of $10.0 million (the "Commitment") or the Borrowing Base | |
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: 1) The Company will not be a party to mergers, acquisitions, consolidations, reorganizations or similar transactions. 2) 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). 3) 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 $2.0 million of its common stock pursuant to its announced stock repurchase plan, subject to certain conditions. 4) The fixed charge coverage ratio must not be less than 1.10 to 1.00. 5) 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 December 31, 2016, the Company is not presently in compliance with the fixed charge coverage ratio financial covenant, which is an event of default under the Loan Agreement | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt instrument, basis spread on variable rate | 2.25% | |
February 2017 [Member] | ||
Letters of credit outstanding, amount | $ 628 | |
Line of credit facility, expiration date | Dec. 31, 2017 | |
Maximum [Member] | ||
Pledged financial instruments, not separately reported, securities for letter of credit facilities | $ 2,500 |
Operating Leases (Details Narra
Operating Leases (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Leases [Abstract] | ||
Operating leases, rent expense | $ 2,400 | $ 2,500 |
Operating Leases - Schedule of
Operating Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
December 30, 2017 | $ 1,944 |
December 29, 2018 | 993 |
December 28, 2019 | 458 |
December 26, 2020 | |
December 25, 2021 and after | |
Total minimum lease payments | $ 3,395 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined contribution plan, maximum annual contributions per employee, percent | 33.30% | |
Defined contribution plan, employer matching contribution, percent of match | 6.00% | |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 2.00% | |
Defined benefit plan, contributions by employer | $ 300 | $ 400 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Share-based Compensation | $ 489 | $ 498 |
Payments Related to Tax Withholding for Share-based Compensation | $ 200 | $ 70 |
Number of options exercisable | 150,000 | 300,000 |
Weighted average remaining contractual life | 5 months 12 days | |
Weighted-average exercise price per share | $ 10.93 | $ 10.04 |
Nonvested awards, compensation cost not yet recognized | $ 600 | |
Nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 1 month 6 days | |
2009 Equity Incentive Plan [Member] | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 2,580,000 | |
Share-based compensation arrangement by share-based payment award, expiration period | 1 year | |
Share-based compensation arrangement by share-based payment award, award vesting rights | Grants to employees will generally vest in four equal annual installments on the anniversary date of grant. Grants to non-employee directors will generally vest quarterly over a one-year period coinciding with their service term. | |
Share-based compensation arrangement by share-based payment award, number of additional shares authorized | 727,507 |
Stock Compensation Plans - Sche
Stock Compensation Plans - Schedule of Share-based Compensation, Stock Options, Activity (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options, Vested and Exercisable Balance | 300,000 |
Options, Vested and Exercisable Balance, Cancelled or Expired | (150,000) |
Options, Vested and Exercisable Balance | 150,000 |
Options, Number of Shares Outstanding | 300,000 |
Options, Number of Shares Outstanding, Cancelled or Expired | (150,000) |
Options, Number of Shares Outstanding | 150,000 |
Options, Weighted Average Exercise Price | $ / shares | $ 10.04 |
Options, Weighted Average Exercise Price, Cancelled or Expired | $ / shares | 9.15 |
Options, Weighted Average Exercise Price | $ / shares | $ 10.93 |
Stock Compensation Plans - Sc45
Stock Compensation Plans - Schedule of Nonvested Restricted Stock Shares Activity (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of Unvested Restricted Shares Balance | shares | 542,462 |
Number of Restricted Shares Granted | shares | 297,949 |
Number of Restricted Shares Vested | shares | (288,311) |
Number of Restricted Shares Forfeited | shares | (45,350) |
Number of Unvested Restricted Shares Balance | shares | 506,750 |
Weighted Average Fair Value of Unvested Restricted Shares | $ / shares | $ 1.38 |
Weighted Average Fair Value of Restricted Shares Granted | $ / shares | 1.03 |
Weighted Average Fair Value of Restricted Shares Vested | $ / shares | 1.57 |
Weighted Average Fair Value of Restricted Shares Forfeited | $ / shares | 1.85 |
Weighted Average Fair Value of Unvested Restricted Shares | $ / shares | $ 1.27 |
Stock Compensation Plans - Sc46
Stock Compensation Plans - Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
June 16, 2016 [Member] | |
Restricted Stock, Shares Issued to | Directors (3) |
Restricted Stock, Number of Shares | shares | 122,949 |
Restricted Stock, Market Price | $ / shares | $ 1.22 |
Restricted Stock, Fair Value | $ | $ 150,000 |
June 2, 2016 [Member] | |
Restricted Stock, Shares Issued to | Employees (1) |
Restricted Stock, Number of Shares | shares | 40,000 |
Restricted Stock, Market Price | $ / shares | $ 1.05 |
Restricted Stock, Fair Value | $ | $ 42,000 |
March 1, 2016[Member] | |
Restricted Stock, Shares Issued to | Employees (9) |
Restricted Stock, Number of Shares | shares | 135,000 |
Restricted Stock, Market Price | $ / shares | $ 0.86 |
Restricted Stock, Fair Value | $ | $ 116,100 |
June 18, 2015 [Member] | |
Restricted Stock, Shares Issued to | Directors (3) |
Restricted Stock, Number of Shares | shares | 107,913 |
Restricted Stock, Market Price | $ / shares | $ 1.39 |
Restricted Stock, Fair Value | $ | $ 150,000 |
February 9, 2015 [Member] | |
Restricted Stock, Shares Issued to | Employees (17) |
Restricted Stock, Number of Shares | shares | 305,100 |
Restricted Stock, Market Price | $ / shares | $ 1.98 |
Restricted Stock, Fair Value | $ | $ 604,100 |
January 8, 2015 [Member] | |
Restricted Stock, Shares Issued to | Employees (1) |
Restricted Stock, Number of Shares | shares | 4,000 |
Restricted Stock, Market Price | $ / shares | $ 1.89 |
Restricted Stock, Fair Value | $ | $ 7,560 |
Treasury Stock (Details Narrati
Treasury Stock (Details Narrative) - USD ($) $ in Thousands | Jul. 22, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Apr. 21, 2015 |
Equity [Abstract] | ||||
Treasury stock, shares, retired | 981,099 | 1,074,150 | 53,744 | |
Stock repurchase program, authorized amount | $ 2,000 | |||
Treasury stock, retired, cost method, amount | $ 1,300 | $ 100 |
Redeemable Preferred Stock (Det
Redeemable Preferred Stock (Details Narrative) | Dec. 31, 2016$ / sharesshares |
Equity [Abstract] | |
Preferred stock, shares authorized | shares | 2,000,000 |
Preferred stock, par value | $ / shares | $ 0.001 |
Federal and State Income Taxe49
Federal and State Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | ||
Total income tax benefit | $ 1,027 | $ 8,214 |
Pre-tax loss income tax benefit | $ 3,400 | 2,300 |
Income tax benefit description | During 2016, our tax benefit was (A) increased primarily by (i) $354,000 resulting from return to accrual adjustments and true-ups of deferred tax assets and liabilities and foreign taxes payable and (ii) $72,000 for an estimated research and development credit and (B) decreased by (i) $436,000 due to the current year expiration of stock options, (ii) a $70,000 increase in the valuation allowance and (iii) $80,000 associated with permanent differences. | |
Prior year adjustments and true-ups | $ (354) | 2,261 |
Research and development credit | (72) | (297) |
Current year expiration of stock options | 436 | 163 |
Change in valuation allowance | 70 | (10,960) |
Valuation allowance, permanent differences | $ 80 | |
Operating loss carryforwards, expiration | 2,032 | |
Federal net operating loss carry-forward | $ 6,417 | 4,339 |
Deferred tax assets, tax credit carryforwards, alternative minimum tax | 100 | |
Deferred tax assets, tax credit carryforwards, research | $ 1,000 | |
Research and development tax credit expiration | 2,030 | |
Deferred tax assets, operating loss carryforwards, foreign | $ 900 | |
Foreign tax credits,expiration | 2,025 | |
Deferred tax assets, valuation allowance | $ 593 | $ 523 |
Federal and State Income Taxe50
Federal and State Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | ||
Current, Federal | $ (21) | |
Current, Foreign Tax | 81 | 805 |
Current, State | (37) | 139 |
Total current | 44 | 923 |
Deferred, Federal | (986) | (8,631) |
Deferred, State | (85) | (506) |
Total deferred | (1,071) | (9,137) |
Total income tax benefit | $ (1,027) | $ (8,214) |
Federal and State Income Taxe51
Federal and State Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax expense (benefit) at 35% | $ (1,179) | $ 813 |
State income tax, net of federal income tax effect | (12) | (416) |
Change of effective state tax rate | 4 | |
Nondeductible expenses | 80 | 222 |
Research and development credit | (72) | (297) |
Current year expiration of stock options | 436 | 163 |
Prior year adjustments and true-ups | (354) | 2,261 |
Change in valuation allowance | 70 | (10,960) |
Total tax benefit | $ (1,027) | $ (8,214) |
Federal and State Income Taxe52
Federal and State Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax expense (benefit) tax rate | 35.00% | 35.00% |
Federal and State Income Taxe53
Federal and State Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Income Tax Disclosure [Abstract] | ||
Federal net operating loss carry-forward | $ 6,417 | $ 4,339 |
Tax credit carryforwards | 2,126 | 1,873 |
Allowance for uncollectible accounts | 156 | 616 |
Accruals not yet deductible for tax purposes | 755 | 1,182 |
Goodwill | 948 | 1,122 |
Depreciation | 339 | 64 |
Other | 60 | 464 |
Deferred tax assets | 10,801 | 9,660 |
Less: Valuation allowance | (593) | (523) |
Deferred tax assets, net | $ 10,208 | $ 9,137 |
Segment Information (Details Na
Segment Information (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Revenues | $ 59,224 | $ 79,605 |
Automation Segment [Member] | ||
Revenues | 25,958 | 30,328 |
Automation Segment [Member] | Caspian Pipeline Consortium Project [Member] | ||
Revenues | $ 8,300 | $ 11,800 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information for Operation Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Operating revenues | $ 59,224 | $ 79,605 |
Operating income (loss) | (3,238) | 2,100 |
Depreciation and amortization | 1,143 | 1,456 |
Tangible assets | 41,520 | 49,163 |
Goodwill | 2,806 | 2,806 |
Other intangible assets | 110 | 231 |
Total assets | 44,436 | 52,200 |
Capital expenditures | 64 | 1,005 |
EPCM [Member] | ||
Operating revenues | 33,266 | 49,277 |
Operating income (loss) | 731 | 4,219 |
Depreciation and amortization | 28 | 177 |
Tangible assets | 5,810 | 12,289 |
Goodwill | 720 | 720 |
Other intangible assets | ||
Total assets | 6,530 | 13,009 |
Capital expenditures | 44 | 16 |
Automation Segment [Member] | ||
Operating revenues | 25,958 | 30,328 |
Operating income (loss) | 3,281 | 6,832 |
Depreciation and amortization | 381 | 614 |
Tangible assets | 8,100 | 17,253 |
Goodwill | 2,086 | 2,086 |
Other intangible assets | 110 | 231 |
Total assets | 10,296 | 19,570 |
Capital expenditures | 14 | 189 |
Corporate [Member] | ||
Operating revenues | ||
Operating income (loss) | (7,250) | (8,951) |
Depreciation and amortization | 734 | 665 |
Tangible assets | 27,610 | 19,621 |
Goodwill | ||
Other intangible assets | ||
Total assets | 27,610 | 19,621 |
Capital expenditures | $ 6 | $ 800 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 12 Months Ended |
Dec. 31, 2016 | |
Severance agreement, description | If employment is terminated for any reason other than 1) termination for cause, 2) voluntary resignation or 3) the employee's death, we are obligated to provide a severance benefit equal to six months of the employee's salary, and, at our option, an additional six months at 50% of the employee's salary in exchange for an extension of a non-competition agreement. The terms of these agreements include evergreen provisions allowing for automatic renewal. |
Maximum [Member] | |
Severance term | 6 months |
Maximum [Member] | |
Severance term | 12 months |