VIA EDGAR
Mr. Rufus Decker
Accounting Branch Chief
Mail Stop 7010
Securities and Exchange Commission
Division of Corporation Finance
100 F St., N. E.
Washington, DC 20549-7010
August 27, 2007
Re: ENGlobal Corporation, Inc. ("ENGlobal" or "the Company")
2006 Annual Report on Form 10-K/A for the Year Ended December 31, 2006
Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2007
File No. 1-14217
Dear Mr. Decker:
With respect to the above-captioned filing, we enclose ENGlobal's responses to
the comments posed by the staff of the Securities and Exchange Commission set
forth in your comment letter dated August 6, 2007. As requested, our responses
are keyed numerically to the comments received from the Securities and Exchange
Commission.
1. Referencing: 2006 Annual Report on Form 10-K/A General
-----------------------------------------
"Where a comment below requests additional disclosures or other
revisions to be made, please show us in your supplemental response what
the revisions will look like. With the exception of the comments below
that specifically request an amendment, all other revisions may be
included in your future filings."
In the responses to subsequent comments, ENGlobal will provide the proposed
revisions to the 2006 Annual Report on Form 10-K/A or Quarterly Report on Form
10-Q for the quarter ended March 31, 2007. ENGlobal will file amendments to both
reports. Additionally, ENGlobal will integrate other revisions into future
filings with the Securities and Exchange Commission in accordance with our
response.
2. Referencing: 2006 Annual Report on Form 10-K/A Management's
------------------------------------------------
Discussion and Analysis, page 27 Results of Operations, page 28
---------------------------------------------------------------
"We note your response to prior comment 3. Your proposed revisions do
not appear to provide sufficient information about the business reasons
for changes between periods in the sales and operating profit (loss) of
each of your segments as well as in your corporate operating profit
(loss). For example, operating profit in your engineering segment
decreased 48% to $9,084 in 2006 from $18,911 in 2005. You state that
the decrease in 2006 was primarily related to the two EPC projects
which have resulted in significant losses. Elsewhere in the filing, you
state that the losses associated with these contracts were $13.7
million. Please include this amount in your explanation herein as well
as discuss the remaining offsetting increase of $3.8 million. This
explanation should include quantification of each of the remaining
offsetting factors. In a similar manner, it is not clear what types of
costs led to the increase in operating losses in corporate and the
quantitative impact of each of these types of costs."
Addressing Engineering Segment Sales:
Net Sales in our Engineering segment increased 26.7% to $278.2 million in 2006
from $219.4 million in 2005. In 2005, our Net Sales increased 62.8% from $134.8
million in 2004. The increase in engineering revenue was primarily brought about
by increased activity in the engineering and construction markets. Refining
related activities have been particularly strong, including projects to satisfy
environmental mandates, expand existing facilities and utilize heavier sour
crude. Capital spending in the pipeline area also trended higher with numerous
projects in North America currently underway to deliver crude oil, natural gas,
petrochemicals and refined products. The acquisition of WRC in the second
quarter of 2006, together with our clients' increased demand for in-plant and
inspection resources, stimulated growth in our field services division where
revenues increased 90.6%, or $50.9 million from $56.2 million in 2005 to $107.1
million in 2006.
Addressing Systems Segment Sales:
Net Sales in our Systems segment increased 76.1% to $24.9 million in 2006 from
$14.2 million in 2005 and we experienced nominal growth from 2004 to 2005 with
$14.1 million in Net Sales. A general turnaround in the oil and gas industry,
together with the acquisition of ATI in January 2006, has increased the demand
for these services. The computer-based distributed control systems equipment
used for facility plant automation also becomes technologically obsolete over
time supporting ongoing replacement of these systems.
Addressing Engineering Segment Operating Profit:
Operating profit in our Engineering Segment decreased 48.0% to $9,084 in 2006
from $18,911 in 2005. The increase for 2005 was 80.8% from $10,461 in 2004.
Operating profit as a percentage of Net Sales for 2004 was 7.8%. The increase in
operating profit of $8,450 from 2004 to 2005 was proportional to the increase in
revenue experienced from 2004 to 2005. Operating profit as a percentage of Net
Sales for 2005 was 8.6%. The decrease in operating profit experienced in 2006 is
almost entirely due to the losses on the two EPC projects discussed in Item 7.
The losses on these projects of $13.7, when combined with reported operating
profit of $9,084 equates to $22,784 which would have been a proportional 8.2% of
net sales.
Addressing Systems Segment Operating Loss:
Operating profit in our Systems Segment increased 98.4% to ($14) in 2006 from
($851) in 2005. The decrease for 2005 was 133.8% from $636 in 2004. In 2005, we
had staffing problems in the Systems Segment, which as discussed in Item 7,
resulted in the use of contract labor, and the necessity to rework certain
projects. Additionally, some projects' costs were underestimated. We commenced
concerted efforts during 2006 to resolve these issues, and even though an
operating loss still occurred, there was improvement. The purchase of ATI in
January 2006 also contributed positively to the segment's operating profit. The
Company is continuing its efforts to build the Business Development and Project
Controls.
Addressing Corporate Operating Loss:
So that the Engineering and Systems Segments may concentrate on their core
businesses, ENGlobal Corporate Services manages all shared overhead functions
including business development, executive, finance, accounting, safety, human
resources, information technology and legal. Since these are expenses and
Corporate has no sales, they constitute operating losses. Operating losses in
Corporate increased 33.9% to ($12,689) in 2006 from ($9,476) in 2005. The
operating loss increased 43.7% in 2005 from ($6,605) in 2004. As the Company has
2
grown through increased demand and acquisitions, there has been an increased
need for additional staff to service that growth. The staff of our
administrative, finance, and management information systems has grown from 66 at
December 31, 2004 to 80 at year end 2005 and to 95 at year end 2006. Our sales
and marketing staff grew from 17 at December 31, 2004, to 23 at year end 2005
and 25 at year end 2006. The Corporate overhead is distributed to the segments
through a stewardship fee allocation.
3. Referencing: 2006 Annual Report on Form 10-K/A Note 2 - Summary of
-----------------------------------------------------
Significant Accounting Policies, page 50
----------------------------------------
"We note your response to prior comments 7 and 8. You disclose that you
had outstanding unapproved change orders/claims of approximately $17.4
million, net of reserves of $1.2 million associated with ongoing
fixed-price EPC projects. Please expand your disclosure by addressing
the following:
Please clearly state the amount of outstanding unapproved change
orders/claims included in contract revenue. Of this amount, please
disclose the amount of contract revenues for which you recorded a
profit component; and
Please disclose how you determined it was appropriate to record a
profit component as well as how you arrived at the profit component
amount."
In total there was $18.6 million of outstanding unapproved change orders/claims
associated with the ongoing fixed-price EPC projects. Of this amount, $1.2
million was included in contract revenue as these amounts were determined to be
probable for approval. The amount included in revenue is solely to cover
additional costs without any recognition of profit.
4. Referencing: 2006 Annual Report on Form 10-K/A
---------------------------------
Goodwill, page 54
-----------------
"We note your response to prior comment 10. Please provide us with your
goodwill impairment analysis as of December 31, 2006 for all reported
goodwill. Your analysis should clearly demonstrate how you determined
that an impairment did not exist for the Systems segment reporting
unit. Please also provide us with a summary of all significant
assumptions used in your analysis as well as a discussion of how you
determined it was appropriate to use these assumptions. For example,
you should discuss and provide support for the growth rates and
discount rates used. [Please also explain how you determined it was not
appropriate to reflect corporate charges in your determination of fair
value of your reporting units."
The goodwill impairment analysis for the period ended December 31, 2006 is
attached as Exhibit A. The same basic impairment testing process has been
utilized since December 31, 2001 following the merger of Industrial Data Systems
and Petrocon Engineering, Inc. on December 21, 2001. Following the merger, the
Company identified two segments, Engineering and Systems, and made the original
goodwill allocation based on average EBITDA for the two prior year periods. The
original allocation is shown at the top of the attachment. For years subsequent
to 2001, the goodwill impairment testing process has utilized a weighted
three-year average EBITDA before allocation of corporate stewardship fees. The
company has continued to eliminate corporate charges in the calculation of
3
adjusted EBITDA not only to maintain consistent comparative analysis but also
because such charges would be eliminated if each segment was evaluated in the
market on an individual basis. With the exception of primarily executive level
oversight, financial reporting and payroll processing, the Systems segment has
been materially self-supporting and fully charged for operating expenses. The
calculation of the three-year weighted average adjusted EBITDA for the period
ended December 31, 2006 includes 1, 2 and 3 times the EBITDA for the respective
years ended 2004, 2005 and 2006 divided by 6 to give affect to trends for each
segment's most recent operating results. To arrive at a "fair value" for each
reporting period, the adjusted EBITDA is multiplied by a "factor" based on data
extracted from Houlihan Lokey Publications quarterly ENC Reporter for the year
then ended. The "factor" is calculated as a multiple of the enterprise value of
the combined adjusted EBITDA for both operating segments (($196,334,968 /
($13,179,800 + $448,227)) and then applied to each individual segment to arrive
at a "fair value" for such segment.
For comparative purposes, an adjusted equity is calculated for each operating
segment whereby total assets are adjusted for other intangibles and total
liabilities are adjusted to included indebtedness to the parent company. It
should be noted that the indebtedness to the parent company does include the
costs of allocation of corporate stewardship fees. If the calculated "fair
value" of the segment exceeds the carrying value of the intangible asset, an
impairment is not recorded. Goodwill on our Systems segment totaled
approximately $698K for the period ended December 31, 2006.
5. Referencing: 2006 Annual Report on Form 10-K/A
---------------------------------
Note 18 - Segment Information, page 71
--------------------------------------
"We note your response to prior comment 12. For each of the operating
segments included in your Engineering reportable segment, your analysis
includes revenue, net income (loss), and assets. Please provide
reconciliations between the total of the seven operating segments'
revenue and asset amounts included in your quantitative analysis to
those amounts reported in your segment note to the financial
statements."
The reconciliation of revenue, net income and assets is attached as Exhibit B to
our response to the SEC Comment letter dated August 6, 2007
6. Referencing: 2006 Annual Report on Form 10-K/A
---------------------------------
Note 18 - Segment Information, page 71
--------------------------------------
"Please provide us with a summary of all of the key metrics you use for
each of the last five fiscal years, the most recent interim periods,
and each subsequent year and interim period for which you have
budgeting information. For example, based on your segment note, it
appears that operating profit (loss) is a key metric used. In addition,
MD&A indicates that gross profit (loss) is a key metric used. Please
revise the quantitative analysis you provided to also include these
metrics, or help us understand why you do not consider operating profit
(loss) and gross profit (loss) to be key metrics. As previously
requested, please address any apparent differences in economic
characteristics and trends between each segment being aggregated.
Please include detailed explanations for any apparent differences in
economic characteristics and trends for a given operating segment when
compared to another operating segment for a given period or over
several periods. Explain why each of these differences would not be
considered an indication of differences in economic characteristics
between the two operating segments and your basis for concluding that
each difference is temporary. Refer to paragraphs 17 and 18 of SFAS
131; EITF 04-10; and Question 8 of the FASB Staff Implementation Guide
for SFAS 131."
4
Please see the quantitative analysis attached as Exhibit C which has been
revised to include other key metrics such as gross profit (loss) and operating
profit (loss). We consider these to be the key metrics in our analysis of data.
Our response to the original question was based on the criteria for the
determination of segment reporting in SFAS 131. SFAS 131 paragraph 18 specifies
the quantitative thresholds for determination of a reporting segment which only
includes the three metrics. This was the basis for our prior analysis.
The only apparent difference in our analysis of the engineering segment relates
to in-office versus in-plant (or field services). The only difference between
the two is where the employee if physically located to perform the work. This
can cause the margin to be slightly lower for in-plant work than in-office since
the client is providing the work space and equipment. However the gross margin
difference is less than 5%. Also, the employees move back and forth between
in-office and in-plant on a consistent basis.
7. Referencing: 2006 Annual Report on Form 10-K/A
---------------------------------
Note 18 - Segment Information, page 71
--------------------------------------
"We note your response to prior comment 13. Please provide the table
with product and service information in the notes to the financial
statements in addition to MD&A."
ENGlobal will provide the table of engineering services in both the notes to the
financial statements and in the MD&A section per the SEC's request.
If you have any questions regarding these comments, please direct them to
Annette Hall Wade, CPA, Accounting Manager, at (409) 840-2591 or, in her
absence, to the undersigned at (409) 840-2578.
ENGlobal Corporation, Inc.
/s/ Robert W. Raiford
Robert W. Raiford
Chief Financial Officer
Cc: Ms. Nudrat Salik, Staff Accountant
Division of Corporation Finance
Mr. William Coskey, Chairman
and Chief Executive Officer, ENGlobal
Mr. Randy Hale, Audit Committee Chairman
ENGlobal Board of Directors
5
EXHIBIT A
ENGlobal Corporation
Allocation of Goodwill to the Reporting Units and Impairment Test - December 31, 2006
=============================================================================================================================
Allocation of GW at time of acquisition
Engineering Systems Manufacturing
----------- ------- -------------
GW Allocation based on 2 yr weighted avg EBITDA
@ 12/31/2000 & 12/31/2001
Assuming the synergies of the merger, both
IDS Eng and CPM are added to PEI
to form segments used in determining goodwill
allocated to each segment.
PEI - Engineering / PSI - Systems 1,903,786 211,904
IDS - Engineering / CPM - Systems 1,405,367 (99,109) --
---------- -------- ----------
Avg EBITDA 3,309,153 112,795
Goodwill after allocation to def tax 13,121,406 13,119,156 12,686,720 432,436
based on Fair Value @ 12/31/2001 (2,250)
-----------
13,119,156
===============================================================================================================================
===============================================================================================================================
Current Fair Value @ 12/31/2006
Total Corporate Engineering Systems Manufacturing
----- --------- ----------- ------- -------------
EBITDA for 2004 5,738,501 (6,173,196) 11,249,645 693,426 (31,374)
EBITDA for 2005 9,671,354 (8,996,550) 18,250,790 418,645 (1,531)
EBITDA for 2006 (1,345,368) (12,174,108) 10,442,524 386,216 -
----------------------------------------------------------------------------
weighted 3 yr avg EBITDA before Corp Stew Fee
( Svc + Corp) 13,179,800 448,227 -
Adjustments - - -
-------------------------------------------
Adj EBITDA 13,179,800 448,227 -
multiple of earnings 14.41 14.41 -
Market CAP Valuation 6.43 26,807,460 172,371,968
Plus debt 23,963,000
----------
Enterprise Value as of 12/31/2006 196,334,968 189,877,489 6,457,479
=========== ===========================
===============================================================================================================================
===============================================================================================================================
Impairment Test
Total Corporate Engineering Systems Manufacturing
----- --------- ----------- ------- -------------
Total assets 106,226,553 19,292,011 70,693,431 16,241,111 -
Due from 37,557,133 37,557,133 - -
Less Non-compete Agreements - - (3,951,302) (1,475,522) -
----------------------------------------------------------------------------
Net tangible assets 143,783,686 56,849,144 66,742,129 14,765,589 -
Total liabilities 65,364,499 33,108,864 26,644,921 5,610,714
Due to 37,557,133 - 25,254,075 12,303,058
----------------------------------------------------------------------------
Net liabilities 102,921,632 33,108,864 51,898,996 17,913,772 -
Adjusted Shareholder Equity 40,862,054 14,843,133 (3,148,183) -
Excess Adjusted Shareholder Equity vs.
Enterprise Value 0 0 0
============ ============================================
===============================================================================================================================
EXHIBIT B
ENGlobal Corporation Reconciliation of Engineering Segment Metrics to Footnote Disclosure
EEI ECR EAG
2006 Total Assets - response 12 69,930,470 43,221,468 11,569,617 1,947,950
Eliminate affiliate receivables 618,249 798,534 (282,955) 112,516
Less Goodwill (5,209,293) (115,000) (1,514,622) --
Tangible Assets-Eng. Segment 65,339,426
Footnote 18 amount 65,339,000
2005 Total Assets - response 13 48,334,673 38,988,846 6,574,909 254,221
Add RPM back to EEI 5,319,753 5,319,753
Total Assets - response 13 53,654,426
Eliminate affiliate receivables 687,930 720,853 -- (32,923)
Less Goodwill (1,740,636) (115,000) (1,407,639) --
Tangible Assets-Eng. Segment 52,601,719
Footnote 18 amount 52,602,000
2004 Total Assets - response 14 30,856,828 22,859,300 5,590,477 744,143
Add RPM and Sentfleber 3,398,391 2,868,404 529,987
Total Assets - response 14 34,255,219
Reclass to Systems Segment (1,274,130) (1,274,130)
Eliminate affiliate receivables 560,775 678,069 -- --
Less Goodwill (1,570,273) (115,000) (1,316,238) --
Tangible Assets-Eng. Segment 31,971,591
Footnote 18 amount 31,971,000
2006 Revenues 280,165,797 211,225,695 35,401,009 10,362,645
Affiliate Eliminations (2,008,743) (90,632) (547,301) (1,163,508)
Eng Seg Net Sales 278,157,053
Note 18 Net Sales 278,157,000
2005 Revenues 213,156,922 174,907,914 22,962,267 9,790,478
Add Back RPM 12,794,167 12,794,167
225,951,089
Affiliate Eliminations (826,009) -- (798,099) (27,910)
Eng Seg Net Sales 225,125,080
Note 18 Net Sales 219,426,000
2004 Revenues 129,729,294 115,909,280 9,116,462 1,068,261
add back Senfleber & RPM 8,638,361 7,629,484 1,008,877
138,367,655
Reclassifications (2,077,139) (2,077,139)
Affiliate Eliminations (945,180) (109,115) (836,065)
Eng Seg Net Sales 135,345,336
Note 18 Net Sales 134,778,000
(Continued on following page
ENGlobal Corporation Reconciliation of Engineering Segment Metrics to Footnote Disclosure (Continued)
ECAN ETS WRCC WRC
2006 Total Assets - response 12 257,257 1,392,136 417,566 11,124,476
Eliminate affiliate receivables (8,172) -- -- (1,673)
Less Goodwill -- (342,080) -- (3,237,591)
Tangible Assets-Eng. Segment
Footnote 18 amount
2005 Total Assets - response 13 214,349 2,302,348 -- --
Add RPM back to EEI
Total Assets - response 13
Eliminate affiliate receivables --
Less Goodwill -- (217,998)
Tangible Assets-Eng. Segment
Footnote 18 amount
2004 Total Assets - response 14 -- 1,662,908 -- --
Add RPM and Sentfleber
Total Assets - response 14
Reclass to Systems Segment
Eliminate affiliate receivables (117,294) -- --
Less Goodwill (139,035) -- --
Tangible Assets-Eng. Segment
Footnote 18 amount
2006 Revenues 962,729 5,445,740 2,794,685 13,973,293
Affiliate Eliminations (207,303)
Eng Seg Net Sales
Note 18 Net Sales
2005 Revenues 88,773 5,407,490 -- --
Add Back RPM
Affiliate Eliminations
Eng Seg Net Sales
Note 18 Net Sales
2004 Revenues -- 3,635,291 -- --
add back Senfleber & RPM
Reclassifications
Affiliate Eliminations
Eng Seg Net Sales
Note 18 Net Sales
ENGlobal Corporation Reconciliation of Engineering Segment Metrics to Footnote Disclosure
EEI ECR EAG
2006 Net Income - Eng. segment (2,395,022) (2,161,194) (123,741) 664,865
Add back interest expense 76,282 (1,129) (72,761) (5,839)
Add back foreign exchange 18,636 -- -- --
Add back Stewardship Fee 11,442,200 (9,045,371) (1,947,215) (396,463)
Add back other income (342,370) 406,848 (25,581) (1,131)
Add back taxes 284,446 (141,812) (6,377) (24,181)
Oper Profit - Eng segment 9,084,171
Note 18 Operating Profit 9,084,000 6,620,271 1,928,194 1,092,479
2005 Net Income 9,867,457 7,809,957 227,222 2,242,427
Add back RPM 378,049 378,049
Net Income - Eng. Segment 10,245,506
Add back interest expense 91,863 2,308 78,389 --
Add back foreign exchange 1,682 -- -- --
Add back Stewardship Fee 8,795,586 7,760,628 1,018,831 16,127
subtract out other income (41,954) (41,286) (557) (0)
Add back taxes 417,730 417,730 -- --
Interest & Stewardship RPM 562,313 562,313
Reclassify AA & IC to Systems (1,160,336) (1,160,336)
subtotal - eng. segment 18,912,389 16,889,699 1,323,885 1,098,218
Note 18 Operating Profit 18,911,000
2004 Net Income 1,822,326 2,869,341 30,315 (576,338)
Add back RPM & Senfleber (59,999) (152,684) 92,685
Net Income - Eng. Segment 1,762,327
Add back interest expense 135,599 116,724 3,411 2,500
Add back Stewardship Fee 7,602,619 6,951,460 546,988 104,171
subtract out other income (81,322) (80,989) (2,350) 2,019
Add back taxes 295,490 295,490 -- --
Interest & Stewardship RPM & Sent 514,202 453,669 60,533
Reclassify AA & IC to Systems 241,206 241,206
subtotal - eng. segment 10,470,120 10,453,010 578,364 (73,224)
Note 18 Operating Profit 10,461,000
(Continued on following page)
ENGlobal Corporation Reconciliation of Engineering Segment Metrics to Footnote Disclosure (Continued)
ECAN ETS WRCC WRC
2006 Net Income - Eng. segment (567,167) (814,763) 77,175 529,803
Add back interest expense -- (8,835) -- 12,282
Add back foreign exchange (12,787) -- (5,849) --
Add back Stewardship Fee (53,150) -- -- 0
Add back other income (1,894) (33,716) (0) (2,155)
Add back taxes -- 588 (55,039) (57,625)
Oper Profit - Eng segment
Note 18 Operating Profit (499,335) (772,800) 138,063 577,300
2005 Net Income (289,876) (122,274) -- --
Add back RPM
Net Income - Eng. Segment
Add back interest expense -- 11,166
Add back foreign exchange 1,682 --
Add back Stewardship Fee -- --
subtract out other income -- (111)
Add back taxes -- --
Interest & Stewardship RPM
Reclassify AA & IC to Systems
subtotal - eng. segment (288,194) (111,219)
Note 18 Operating Profit
2004 Net Income -- (500,992) -- --
Add back RPM & Senfleber
Net Income - Eng. Segment
Add back interest expense 12,964
Add back Stewardship Fee --
subtract out other income (2)
Add back taxes --
Interest & Stewardship RPM & Sent
Reclassify AA & IC to Systems
subtotal - eng. segment -- (488,030)
Note 18 Operating Profit
EXHIBIT C
ENGLOBAL CORPORATION INC.
CONSOLIDATED BY LEGAL ENTITY
-----------------------------------------------------------------------------
MANU SEG SYSTEMS SEGMENT ENGINEERING SEGMENT
-----------------------------------------------------------------------------------------------------------------
CONSOL THER ESI ECP SEN EAG
-----------------------------------------------------------------------------------------------------------------
Chief operating decision maker Coskey Coskey Coskey Coskey Coskey
Managers Leedy Leedy
Similar Economonic Characteristics
A. Nature of the products and services HVAC Svs Assembly Assembly Engr Svs Engr Svs
B. Nature of the production processes
Petrochem Petrochem Petrochem Petrochem
C. Type or class of customer for their Commercial Pipeline Energy Pipeline Energy Pipeline Energy Pipeline Energy
products and services
D. Methods used to distribute their
products or provide their services
E. If applicable, the nature of the
regulatory environment, for
REVENUE
2007-Q2-4 Budgets $242,944,813.37 $0.00 $16,769,000.00 $0.00 $0.00 $16,445,095.38
2007-Q1 Actuals $82,111,177.08 $0.00 $5,509,830.37 $0.00 $0.00 $4,148,116.76
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $325,055,990.45 $0.00 $22,278,830.37 $0.00 $0.00 $20,593,212.14
2006 $306,198,170.56 $0.00 $26,032,374.02 $0.00 $0.00 $10,362,644.86
2005 $235,574,783.86 0.00 14,337,198.46 0.00 0.00 5,076,974.65
2004 $151,548,476.73 0.00 11,583,037.07 1,768,263.85 1,008,877.35 897,781.82
2003 $127,549,888.57 1,984,411.15 11,335,510.75 1,454,253.38 447,154.77 2,102,083.49
2002 $94,157,920.71 2,438,510.97 10,070,909.24 2,986,629.57 0.00 1,093,550.54
REVENUE PERCENTAGES
2007 (Q1Act + Bud) 0.00% 6.85% 0.00% 0.00% 6.34%
2006 0.00% 8.50% 0.00% 0.00% 3.38%
2005 0.00% 6.09% 0.00% 0.00% 2.16%
2004 0.00% 7.64% 1.17% 0.67% 0.59%
2003 1.56% 8.89% 1.14% 0.35% 1.65%
2002 2.59% 10.70% 3.17% 0.00% 1.16%
REVENUE $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 0.00 (3,753,543.65) 0.00 0.00 10,230,567.28
2006 0.00 11,695,175.56 0.00 0.00 5,285,670.21
2005 0.00 2,754,161.39 (1,768,263.85) (1,008,877.35) 4,179,192.83
2004 (1,984,411.15) 247,526.32 314,010.47 561,722.58 (1,204,301.67)
2003 (454,099.82) 1,264,601.51 (1,532,376.19) 447,154.77 1,008,532.95
2002 0.00 0.00 0.00 0.00 0.00
REVENUE % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 0.00% -1.65% 0.00% 0.00% 2.95%
2006 0.00% 2.42% 0.00% 0.00% 1.23%
2005 0.00% -1.56% -1.17% -0.67% 1.56%
2004 -1.56% -1.24% 0.03% 0.32% -1.06%
2003 -1.03% -1.81% -2.03% 0.35% 0.49%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
(Continued on following page)
ENGLOBAL CORPORATION INC.
CONSOLIDATED BY LEGAL ENTITY
------------------------------------------------------------------------------
ENGINEERING SEGMENT
-----------------------------------------------------------------------------------------------------------------
CONSOL ECAN ECR WRC WRC CAN IDS
-----------------------------------------------------------------------------------------------------------------
Chief operating decision maker Coskey Coskey Coskey Coskey Coskey
Managers Leedy Winthrop Lee Lee
Similar Economonic Characteristics
A. Nature of the products and services Engr Svs Insp/CM Svs Land Svs Land Svs Engr Svs
B. Nature of the production processes
Petrochem Petrochem Petrochem Petrochem Petrochem
C. Type or class of customer for their Pipeline Energy Pipeline Energy Pipeline Energy Pipeline Energy Pipeline Energy
products and services
D. Methods used to distribute their
products or provide their services
E. If applicable, the nature of the
regulatory environment, for
REVENUE
2007-Q2-4 Budgets $242,944,813.37 $3,944,400.00 $36,301,321.99 $19,500,000.00 $0.00 $0.00
2007-Q1 Actuals $82,11,177.08 $295,400.73 $13,997,936.45 $6,568,394.20 $318,900.36 $0.00
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $325,055,990.45 $4,239,800.73 $50,299,258.44 $26,068,394.20 $318,900.36 $0.00
2006 $306,198,170.56 $962,728.62 $35,401,009.33 $13,973,293.44 $2,794,685.01 $0.00
2005 $235,574,783.86 88,773.45 22,962,266.81 0.00 0.00 0.00
2004 $151,548,476.73 0.00 9,116,462.16 0.00 0.00 0.00
2003 $127,549,888.57 0.00 5,214,721.44 0.00 0.00 13,114,402.58
2002 $94,157,920.71 0.00 5,118,230.50 0.00 0.00 12,178,063.27
REVENUE PERCENTAGES
2007 (Q1Act + Bud) 1.30% 15.47% 8.02% 0.10% 0.00%
2006 0.31% 11.56% 4.56% 0.91% 0.00%
2005 0.04% 9.75% 0.00% 0.00% 0.00%
2004 0.00% 6.02% 0.00% 0.00% 0.00%
2003 0.00% 4.09% 0.00% 0.00% 10.28%
2002 0.00% 5.44% 0.00% 0.00% 12.93%
REVENUE $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 3,277,072.11 14,898,249.11 12,095,100.76 (2,475,784.65) 0.00
2006 873,955.17 12,438,742.52 13,973,293.44 2,794,685.01 0.00
2005 88,773.45 13,845,804.65 0.00 0.00 0.00
2004 0.00 3,901,740.72 0.00 0.00 (13,114,402.58)
2003 0.00 96,490.94 0.00 0.00 936,339.31
2002 0.00 0.00 0.00 0.00 0.00
REVENUE % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 0.99% 3.91% 3.46% -0.81% 0.00%
2006 0.28% 1.81% 4.56% 0.91% 0.00%
2005 0.04% 3.73% 0.00% 0.00% 0.00%
2004 0.00% 1.93% 0.00% 0.00% -10.28%
2003 0.00% -1.35% 0.00% 0.00% -2.65%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
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ENGINEERING SEGMENT PEI
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Chief operating decision maker Coskey Coskey Coskey Coskey
Managers Smith Smith Coskey
Similar Economonic Characteristics
A. Nature of the products and services Engr Svs Engr Svs Engr Svs Real Estate
B. Nature of the production processes
Petrochem Petrochem Governmental
C. Type or class of customer for their Pipeline Energy Pipeline Energy Energy Commercial
products and services
D. Methods used to distribute their
products or provide their services
E. If applicable, the nature of the
regulatory environment, for
REVENUE
2007-Q2-4 Budgets $242,944,813.37 $146,207,997.00 $0.00 $3,776,999.00 $0.00
2007-Q1 Actuals $82,111,177.08 $50,444,207.89 $0.00 $828,390.32 $0.00
- ------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $325,055,990.45 $196,652,204.89 $0.00 $4,605,389.32 $0.00
2006 $306,198,170.56 $211,225,695.19 $0.00 $5,445,740.09 $0.00
2005 $235,574,783.86 174,907,914.03 12,794,166.76 5,407,489.70 0.00
2004 $151,548,476.73 115,909,279.90 7,629,483.80 3,635,290.78 0.00
2003 $127,549,888.57 85,919,191.69 5,978,159.32 0.00 0.00
2002 $94,157,920.71 49,273,811.32 10,998,215.30 0.00 0.00
REVENUE PERCENTAGES
2007 (Q1Act + Bud) 60.50% 0.00% 1.42% 0.00%
2006 68.98% 0.00% 1.78% 0.00%
2005 74.25% 5.43% 2.30% 0.00%
2004 76.48% 5.03% 2.40% 0.00%
2003 67.36% 4.69% 0.00% 0.00%
2002 52.33% 11.68% 0.00% 0.00%
REVENUE $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) (14,573,490.30) 0.00 (840,350.77) 0.00
2006 36,317,781.16 (12,794,166.76) 38,250.39 0.00
2005 58,998,634.13 5,164,682.96 1,772,198.92 0.00
2004 29,990,088.21 1,651,324.48 3,635,290.78 0.00
2003 36,645,380.37 (5,020,055.98) 0.00 0.00
2002 0.00 0.00 0.00 0.00
REVENUE % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) -8.49% 0.00% -0.36% 0.00%
2006 -5.26% -5.43% -0.52% 0.00%
2005 -2.24% 0.40% -0.10% 0.00%
2004 9.12% 0.35% 2.40% 0.00%
2003 15.03% -6.99% 0.00% 0.00%
2002 0.00% 0.00% 0.00% 0.00%
ENGLOBAL CORPORATION INC.
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CONSOL THER ESI ECP SEN EAG
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=============================================================================================================================
OPERATING SEGMENTS ONLY
GROSS PROFIT (LOSS)
2007-Q2-4 Budgets $44,913,841.36 $0.00 $1,675,266.00 $0.00 $0.00 $4,479,291.13
2007-Q1 Actuals $13,277,724.29 0.00 249,014.34 0.00 0.00 586,380.18
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $58,191,565.65 0.00 1,924,280.34 0.00 0.00 5,065,671.31
2006 $26,264,234.06 0.00 2,138,337.36 0.00 0.00 2,353,562.43
2005 $28,272,660.18 0.00 1,110,602.94 0.00 0.00 1,225,741.99
2004 $18,593,466.81 0.00 1,783,453.06 339,199.16 118,793.69 (136,359.93)
2003 $17,373,932.98 400,358.75 1,341,435.78 62,247.11 77,595.55 690,913.20
2002 $14,943,386.26 537,237.11 1,501,662.91 410,459.41 0.00 399,146.58
GROSS PROFIT (LOSS)
% OF REVENUE
2007-Q2-4 Budgets 0.00% 9.99% 0.00% 0.00% 27.24%
2007-Q1 Actuals 0.00% 4.52% 0.00% 0.00% 14.14%
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 0.00% 8.64% 0.00% 0.00% 24.60%
2006 0.00% 8.21% 0.00% 0.00% 22.71%
2005 0.00% 7.75% 0.00% 0.00% 24.14%
2004 0.00% 15.40% 19.18% 18.02% -15.19%
2003 20.18% 11.83% 4.28% 17.35% 32.87%
2002 22.03% 14.91% 13.74% 0.00% 36.50%
GROSS PROFIT (LOSS)
PERCENT OF TOTAL
2007 (Q1Act + Bud) 0.00% 3.73% 0.00% 0.00% 9.97%
2007 0.00% 1.88% 0.00% 0.00% 4.42%
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 0.00% 3.31% 0.00% 0.00% 8.71%
2006 0.00% 8.14% 0.00% 0.00% 8.96%
2005 0.00% 3.93% 0.00% 0.00% 4.34%
2004 0.00% 9.59% 1.82% 0.98% -0.73%
2003 2.30% 7.72% 0.36% 0.45% 3.98%
2002 3.60% 10.05% 2.75% 0.00% 2.67%
GROSS PROFIT (LOSS) $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) $31,927,331.59 0.00 (214,057.02) 0.00 0.00 2,712,108.88
2006 ($2,008.426.12) 0.00 1,027,734.42 0.00 0.00 1,127,820.44
2005 $9,679,193.37 0.00 (672,850.12) (399,199.16) (181,793.69) 1,362,101.92
2004 $1,219,533.83 (400,358.75) 442,017.28 276,952.05 104,198.14 (827,273.13)
2003 $2,430,546.72 (136,878.36) (160,227.13) (348,212.30) 77,595.55 291,766.62
2002 $0.00 0.00 0.00 0.00 0.00 0.00
GROSS PROFIT (LOSS)
% CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 0.00% -4.83% 0.00% 0.00% -0.26%
2006 0.00% 4.21% 0.00% 0.00% 4.63%
2005 0.00% -5.66% -1.82% -0.98% 5.07%
2004 -2.30% 1.87% 1.47% 0.53% -4.71%
2003 -1.29% -2.33% -2.39% 0.45% 1.31%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
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CONSOLIDATED BY LEGAL ENTITY
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ENGINEERING SEGMENT
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CONSOL ECAN ECR WRC WRC CAN IDS
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OPERATING SEGMENTS ONLY
GROSS PROFIT (LOSS)
2007-Q2-4 Budgets $44,913,841.36 $1,023,930.00 $4,587,292.50 $3,798,500.00 $0.00 $0.00
2007-Q1 Actuals $13,277,724.29 (54,309.68) 2,116,470.39 1,223,536.87 26,968.41 0.00
- --------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $58,191,565.65 969,620.32 6,703,762.89 5,022,036.87 26,968.41 0.00
2006 $26,264,234.06 (4,183.23) 3,810,396.40 2,249,199.77 140,131.83 0.00
2005 $28,272,660.18 (81,715.12) 2,450,911.48 0.00 0.00 0.00
2004 $18,593,466.81 0.00 982,172.48 0.00 0.00 0.00
2003 $17,373,932.98 0.00 427,475.31 0.00 0.00 1,864,442.43
2002 $14,943,386.26 0.00 535,747.55 0.00 0.00 1,597,633.23
GROSS PROFIT (LOSS) % OF REVENUE
2007-Q2-4 Budgets 25.96% 12.64% 19.48% 0.00% 0.00%
2007-Q1 Actuals -18.39% 15.12% 18.63% 8.46% 0.00%
- --------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 22.87% 13.33% 19.26% 8.46% 0.00%
2006 -0.43% 10.76% 16.10% 5.01% 0.00%
2005 -92.05% 10.67% 0.00% 0.00% 0.00%
2004 0.00% 10.77% 0.00% 0.00% 0.00%
2003 0.00% 8.20% 0.00% 0.00% 14.22%
2002 0.00% 10.47% 0.00% 0.00% 13.12%
GROSS PROFIT (LOSS) PERCENT OF TOTAL
2007-Q2-4 Budgets 2.28% 10.21% 8.46% 0.00% 0.00%
2007-Q1 Actuals -0.41% 15.94% 9.21% 0.20% 0.00%
- --------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 1.67% 11.52% 8.63% 0.05% 0.00%
2006 -0.02% 14.51% 8.56% 0.53% 0.00%
2005 -0.29% 8.67% 0.00% 0.00% 0.00%
2004 0.00% 5.28% 0.00% 0.00% 0.00%
2003 0.00% 2.46% 0.00% 0.00% 10.73%
2002 0.00% 3.59% 0.00% 0.00% 10.69%
GROSS PROFIT (LOSS) $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) $31,927,331.59 973,803.55 2,893,366.49 2,772,837.10 (113,163.42) 0.00
2006 ($2,008,426.12) 77,531.89 1,359,484.92 2,249,199.77 140,131.83 0.00
2005 $9,679,193.37 (81,715.12) 1,468,739.00 0.00 0.00 0.00
2004 $1,219,533.83 0.00 554,697.17 0.00 0.00 (1,864,442.43)
2003 $2,430,546.72 0.00 (108,272.24) 0.00 0.00 266,809.20
2002 $0.00 0.00 0.00 0.00 0.00 0.00
GROSS PROFIT (LOSS) % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 1.68% -2.99% 0.07% -0.49% 0.00%
2006 0.27% 5.84% 8.56% 0.53% 0.00%
2005 -0.29% 3.39% 0.00% 0.00% 0.00%
2004 0.00% 2.82% 0.00% 0.00% -10.73%
2003 0.00% -1.12% 0.00% 0.00% 0.04%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
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CONSOLIDATED BY LEGAL ENTITY
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ENGINEERING SEGMENT PEI
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CONSOL EEI RPM ETS INVEST
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OPERATING SEGMENTS ONLY
GROSS PROFIT (LOSS)
2007-Q2-4 Budgets $44,913,841.36 28,753,942.24 $0.00 $595,619.49 $0.00
2007-Q1 Actuals $13,277,724.29 9,066,667.74 0.00 62,996.04 0.00
- ------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $58,191,565.65 37,820,609.98 0.00 658,615.53 0.00
2006 $26,264,234.06 15,348,762.23 0.00 228,027.27 0.00
2005 $28,272,660.18 21,269,138.07 1,568,122.08 729,858.74 0.00
2004 $18,593,466.81 3,775,473.28 857,699.62 810,035.45 0.00
2003 $17,373,932.98 11,918,492.43 590,972.42 0.00 0.00
2002 $14,943,386.26 8,978,636.54 982,862.93 0.00 0.00
GROSS PROFIT (LOSS) % OF REVENUE
2007-Q2-4 Budgets 19.67% 0.00% 15.77% 0.00%
2007-Q1 Actuals 17.97% 0.00% 7.60% 0.00%
- ------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 19.23% 0.00% 14.30% 0.00%
2006 7.27% 0.00% 4.19% 0.00%
2005 12.16% 12.26% 13.50% 0.00%
2004 11.88% 11.24% 22.28% 0.00%
2003 13.87% 9.89% 0.00% 0.00%
2002 18.22% 8.94% 0.00% 0.00%
GROSS PROFIT (LOSS) PERCENT OF TOTAL
2007-Q2-4 Budgets 64.02% 0.00% 1.33% 0.00%
2007-Q1 Actuals 68.28% 0.00% 0.47% 0.00%
- ------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 64.99% 0.00% 1.13% 0.00%
2006 58.44% 0.00% 0.87% 0.00%
2005 75.23% 5.55% 2.58% 0.00%
2004 74.09% 4.61% 4.36% 0.00%
2003 68.60% 3.40% 0.00% 0.00%
2002 60.08% 6.58% 0.00% 0.00%
GROSS PROFIT (LOSS) $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) $31,927,331.59 22,471,847.75 0.00 430,588.26 0.00
2006 ($2,008,426.12) (5,920,375.84) (1,568,122.08) (501,831.47) 0.00
2005 $9,679,193.37 7,493,664.79 710,422.46 (80,176.71) 0.00
2004 $1,219,533.83 1,856,980.85 266,727.20 810,035.45 0.00
2003 $2,430,546.72 2,939,855.89 (391,890.51) 0.00 0.00
2002 $0.00 0.00 0.00 0.00 0.00
GROSS PROFIT (LOSS) % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 6.55% 0.00% 0.26% 0.00%
2006 -16.79% -5.55% -1.71% 0.00%
2005 1.14% 0.93% -1.78% 0.00%
2004 5.49% 1.21% 4.36% 0.00%
2003 8.52% -3.18% 0.00% 0.00%
2002 0.00% 0.00% 0.00% 0.00%
ENGLOBAL CORPORATION INC.
CONSOLIDATED BY LEGAL ENTITY
----------------------------------------------------------------------------------
MANU SEG SYSTEMS SEGMENT ENGINEERING SEGMENT
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CONSOL THER ESI ECP SEN EAG
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OPERATING SEGMENTS ONLY
SG&A
2007-Q2-4 Budgets $14,125,233.98 $0.00 $940,791.72 $0.00 $0.00 $1,759,186.00
2007-Q1 Actuals $3,956,668.84 0.00 428,858.63 0.00 0.00 363,374.94
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud( $18,081,902.82 0.00 1,369,650.35 0.00 0.00 2,122,560.94
2006 $17,198,892.61 0.00 2,152,382.77 0.00 0.00 1,261,083.71
2005 $10,213,583.42 1,531.01 1,962,383.91 0.00 0.00 127,524.35
2004 $7,496,262.20 31,374.38 1,134,516.30 260,320.09 28,575.49 159,439.32
2003 $6,926,670.28 631,581.63 1,574,633.99 367,749.71 15,199.97 172,452.36
2002 $5,418,748.00 746,056.20 906,132.60 554,407.86 0.00 0.00
SG&A % OF REVENUE
2007-Q2-4 Budgets 0.00% 5.61% 0.00% 0.00% 10.70%
2007-Q1 Actuals 0.00% 7.78% 0.00% 0.00% 8.76%
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 0.00% 6.15% 0.00% 0.00% 10.31%
2006 0.00% 8.27% 0.00% 0.00% 12.17%
2005 0.00% 13.69% 0.00% 0.00% 2.51%
2004 0.00% 9.79% 14.72% 2.83% 17.76%
2003 31.83% 13.89% 25.29% 3.40% 8.20%
2002 30.59% 9.00% 18.56% 0.00% 0.00%
SG&A PERCENT OF TOTAL
2007-Q2-4 Budgets 0.00% 6.66% 0.00% 0.00% 12.45%
2007-Q1 Actuals 0.00% 10.84% 0.00% 0.00% 9.18%
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 0.00% 7.57% 0.00% 0.00% 11.74%
2006 0.00% 12.51% 0.00% 0.00% 7.33%
2005 0.01% 19.21% 0.00% 0.00% 1.25%
2004 0.42% 15.13% 3.47% 0.38% 2.13%
2003 9.12% 22.73% 5.31% 0.22% 2.49%
2002 13.77% 16.72% 10.23% 0.00% 0.00%
SG&A $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) $883,010.21 0.00 (782,732.42) 0.00 0.00 861,477.23
2006 $6,985,309.19 (1,531.01) 189,998.86 0.00 0.00 1,133,559.36
2005 $2,717,321.22 (29,843.37) 827,867.61 (260,320.09) (28,575.49) (31,914.97)
2004 $569,591.92 (600,207.25) (440,117.69) (107,429.62) 13,375.52 (13,013.04)
2003 $1,507,922.28 (114,474.57) 668,501.39 (186,658.15) 15,199.97 172,452.36
2002 $0.00 0.00 0.00 0.00 0.00 0.00
SG&A % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 0.00% -4.94% 0.00% 0.00% 4.41%
2006 -0.01% -6.70% 0.00% 0.00% 6.08%
2005 -0.40% 4.08% -3.47% -0.38% -0.88%
2004 -8.70% -7.60% -1.84% 0.16% -0.36%
2003 -4.65% 6.01% -4.92% 0.22% 2.49%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
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ENGINEERING SEGMENT
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OPERATING SEGMENTS ONLY
SG&A
2007-Q2-4 Budgets $14,125,233.98 $764,393.76 $2,401,141.75 $2,606,812.00 $0.00 $0.00
2007-Q1 Actuals $3,956,668.84 88,104.92 625,894.48 582,307.37 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud( $18,081,902.82 852,498.68 3,027,036.23 3,189,119.37 0.00 0.00
2006 $17,198,892.61 495,152.12 1,882,202.45 1,671,899.69 2,068.62 0.00
2005 $10,213,583.42 206,479.26 1,127,026.68 0.00 0.00 0.00
2004 $7,496,262.20 0.00 403,808.51 0.00 0.00 0.00
2003 $6,926,670.28 0.00 205,857.27 0.00 0.00 801,195.10
2002 $5,418,748.00 0.00 129,067.93 0.00 0.00 1,347,127.68
SG&A % OF REVENUE
2007-Q2-4 Budgets 19.38% 6.61% 13.37% 0.00% 0.00%
2007-Q1 Actuals 29.83% 4.47% 8.87% 0.00% 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 20.11% 6.02% 12.23% 0.00% 0.00%
2006 51.43% 5.32% 11.96% 0.07% 0.00%
2005 232.59% 4.91% 0.00% 0.00% 0.00%
2004 0.00% 4.43% 0.00% 0.00% 0.00%
2003 0.00% 3.95% 0.00% 0.00% 6.11%
2002 0.00% 2.52% 0.00% 0.00% 11.06%
SG&A PERCENT OF TOTAL
2007-Q2-4 Budgets 5.41% 17.00% 18.46% 0.00% 0.00%
2007-Q1 Actuals 2.23% 15.82% 14.72% 0.00% 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 4.71% 16.74% 17.64% 0.00% 0.00%
2006 2.88% 10.94% 9.72% 0.01% 0.00%
2005 2.02% 11.03% 0.00% 0.00% 0.00%
2004 0.00% 5.39% 0.00% 0.00% 0.00%
2003 0.00% 2.97% 0.00% 0.00% 11.57%
2002 0.00% 2.38% 0.00% 0.00% 24.86%
SG&A $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) $883,010.21 357,346.56 1,144,833.78 1,517,219.68 (2,068.62) 0.00
2006 $6,985,309.19 288,672.86 755,175.77 1,671,899.69 2,068.62 0.00
2005 $2,717,321.22 206,479.26 723,218.17 0.00 0.00 0.00
2004 $569,591.92 0.00 197,951.24 0.00 0.00 (801,195.10)
2003 $1,507,922.28 0.00 76,789.34 0.00 0.00 (545,932.58)
2002 $0.00 0.00 0.00 0.00 0.00 0.00
SG&A % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 1.84% 5.80% 7.92% -0.01% 0.00%
2006 0.86% -0.09% 9.72% 0.01% 0.00%
2005 2.02% 5.65% 0.00% 0.00% 0.00%
2004 0.00% 2.41% 0.00% 0.00% -11.57%
2003 0.00% 0.59% 0.00% 0.00% -13.29%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
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ENGINEERING SEGMENT PEI
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OPERATING SEGMENTS ONLY
SG&A
2007-Q2-4 Budgets $14,125,233.98 $5,305,788.75 $0.00 $347,120.00 $0.00
2007-Q1 Actuals $3,956,668.84 1,721,382.62 0.00 146,745.88 0.00
- -------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud( $18,081,902.82 7,027,171.37 0.00 493,865.88 0.00
2006 $17,198,892.61 8,728,491.66 0.00 1,000,826.98 4,784.61
2005 $10,213,583.42 5,319,800.98 627,759.95 841,077.28 0.00
2004 $7,496,262.20 3,623,448.05 556,714.69 1,298,065.37 0.00
2003 $6,926,670.28 2,480,046.29 677,953.96 0.00 0.00
2002 $5,418,748.00 312,250.83 1,423,704.90 0.00 0.00
SG&A % OF REVENUE
2007-Q2-4 Budgets 3.63% 0.00% 9.19% 0.00%
2007-Q1 Actuals 3.41% 0.00% 17.71% 0.00%
- --------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 3.57% 0.00% 10.72% 0.00%
2006 4.13% 0.00% 18.38% 0.00%
2005 3.04% 4.91% 15.55% 0.00%
2004 3.13% 7.30% 35.71% 0.00%
2003 2.89% 11.34% 0.00% 0.00%
2002 0.63% 12.94% 0.00% 0.00%
SG&A PERCENT OF TOTAL
2007-Q2-4 Budgets 37.56% 0.00% 2.46% 0.00%
2007-Q1 Actuals 43.51% 0.00% 3.71% 0.00%
- --------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 38.86% 0.00% 2.73% 0.00%
2006 50.75% 0.00% 5.82% 0.03%
2005 52.09% 6.15% 8.23% 0.00%
2004 48.34% 7.43% 17.32% 0.00%
2003 35.80% 9.79% 0.00% 0.00%
2002 5.76% 26.27% 0.00% 0.00%
SG&A $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) $883,010.21 (1,701,320.29) 0.00 (506,961.10) (4,784.61)
2006 $6,985,309.19 3,408,690.68 (627,759.95) 159,749.70 4,784.61
2005 $2,717,321.22 1,696,352.93 71,045.26 (456,988.09) 0.00
2004 $569,591.92 1,143,401.76 (121,239.27) 1,298,065.37 0.00
2003 $1,507,922.28 2,167,795.46 (745,750.94) 0.00 0.00
2002 $0.00 0.00 0.00 0.00 0.00
SG&A % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) -11.89% 0.00% -3.09% -0.03%
2006 -1.34% -6.15% -2.42% 0.03%
2005 3.75% -1.28% -9.08% 0.00%
2004 12.53% -2.36% 17.32% 0.00%
2003 30.04% -16.49% 0.00% 0.00%
2002 0.00% 0.00% 0.00% 0.00%
ENGLOBAL CORPORATION INC.
CONSOLIDATED BY LEGAL ENTITY
--------------------------------------------------------------------------
MANU SEG SYSTEMS SEGMENT ENGINEERING SEGMENT
----------------------------------------------------------------------------------------------------------------
CONSOL THER ESI ECP SEN EAG
----------------------------------------------------------------------------------------------------------------
OPERATING SEGMENTS ONLY
OPER PROFIT (LOSS)
2007-Q2-4 Budget $31,293,464.90 $0.00 $734,474.28 $0.00 $0.00 $2,720,105.13
2007-Q1 Actuals $9,429,485.09 0.00 (179,844.29) 0.00 0.00 223,005.24
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $40,722,949.99 0.00 554,629.99 0.00 0.00 2,943,110.37
2006 $9,070,126.06 0.00 (14,045.41) 0.00 0.00 1,092,478.72
2005 $18,059,076.76 (1,531.01) (851,780.97) 0.00 0.00 1,098,217.64
2004 $11,097,204.61 (31,374.38) 648,936.76 78,879.07 153,218.20 (295,799.25)
2003 $10,447,262.70 (231,222.88) (233,198.21) (305,502.60) 62,395.58 518,460.84
2002 $9,524,638.26 (208,819.09) 595,530.31 (143,948.45) 0.00 399,146.58
OPER PROFIT (LOSS) % OF REVENUE
2007-Q2-4 Budgets 0.00% 4.38% 0.00% 0.00% 16.54%
2007-Q1 Actuals 0.00% -3.26% 0.00% 0.00% 5.38%
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 0.00% 2.49% 0.00% 0.00% 14.29%
2006 0.00% -0.05% 0.00% 0.00% 10.54%
2005 0.00% -5.94% 0.00% 0.00% 21.63%
2004 0.00% 5.60% 4.46% 15.19% -32.95%
2003 -11.65% -2.06% -21.01% 13.95% 24.66%
2002 -8.56% 5.91% -4.82% 0.00% 36.50%
OPER PROFIT (LOSS) PERCENTAGES
2007-Q2-4 Budgets 0.00% 2.35% 0.00% 0.00% 8.69%
2007-Q1 Actuals 0.00% -1.91% 0.00% 0.00% 2.36%
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 0.00% 1.36% 0.00% 0.00% 7.23%
2006 0.00% -0.15% 0.00% 0.00% 12.04%
2005 -0.01% -4.72% 0.00% 0.00% 6.08%
2004 -0.28% 5.85% 0.71% 1.38% -2.67%
2003 -2.21% -2.23% -2.92% 0.60% 4.96%
2002 -2.19% 6.25% -1.51% 0.00% 4.19%
OPER PROFIT (LOSS) $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) $31,652,823.93 0.00 568,675.40 0.00 0.00 1,850,631.65
2006 ($8,988,950.70) 1,531.01 837,735.56 0.00 0.00 (5,738.92)
2005 $6,961,872.15 29,843.37 (1,500,717.73) (78,879.07) (153,218.20) 1,394,016.89
2004 $649,941.91 199,848.50 882,134.97 384,381.67 90,822.62 (814,260.09)
2003 $922,624.44 (22,403.79) (828,728.52) (161,554.15) 62,395.58 119,314.26
2002 $0.00 0.00 0.00 0.00 0.00 0.00
OPER PROFIT (LOSS) % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 0.00% 1.52% 0.00% 0.00% -4.82%
2006 0.01% 4.56% 0.00% 0.00% 5.96%
2005 0.27% -10.56% -0.71% -1.38% 8.75%
2004 1.93% 8.08% 3.64% 0.78% -7.63%
2003 -0.02% -8.48% -1.41% 0.60% 0.77%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
(Continued on following page)
ENGLOBAL CORPORATION INC.
CONSOLIDATED BY LEGAL ENTITY
-------------------------------------------------------------------------
ENGINEERING SEGMENT
------------------------------------------------------------------------------------------------------------------
CONSOL ECAN ECR WRC WRC CAN IDS
------------------------------------------------------------------------------------------------------------------
OPERATING SEGMENTS ONLY
OPER PROFIT (LOSS)
2007-Q2-4 Budget $31,293,464.90 $764,393.76 $2,186,150.75 $1,191,688.00 $0.00 $0.00
2007-Q1 Actuals $9,429,485.09 (142,414.60) 1,490,575.91 641,229.50 26,968.41 0.00
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $40,722,949.99 621,979.16 3,676,726.66 1,832,917.50 26,968.41 0.00
2006 $9,070,126.06 (499,335.35 1,928,193.95 577,300.08 138,063.21 0.00
2005 $18,059,076.76 (288,194.38) 1,323,884.80 0.00 0.00 0.00
2004 $11,097,204.61 0.00 578,363.97 0.00 0.00 0.00
2003 $10,447,262.70 0.00 221,618.04 0.00 0.00 1,063,247.33
2002 $9,524,638.26 0.00 406,679.62 0.00 0.00 250,505.55
OPER PROFIT (LOSS) % OF REVENUE
2007-Q2-4 Budgets 19.38% 6.02% 6.11% 0.00% 0.00%
2007-Q1 Actuals -48.21% 10.65% 9.76% 8.46% 0.00%
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 14.67% 7.31% 7.03% 8.46% 0.00%
2006 -51.87% 5.45% 4.13% 4.94% 0.00%
2005 -324.64% 5.77% 0.00% 0.00% 0.00%
2004 0.00% 6.34% 0.00% 0.00% 0.00%
2003 0.00% 4.25% 0.00% 0.00% 8.11%
2002 0.00% 7.95% 0.00% 0.00% 2.06%
OPER PROFIT (LOSS) PERCENTAGES
2007-Q2-4 Budgets 2.44% 6.99% 3.81% 0.00% 0.00%
2007-Q1 Actuals -1.51% 15.81% 6.80% 0.29% 0.00%
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 1.53% 9.03% 4.50% 0.07% 0.00%
2006 -5.51% 21.26% 6.36% 1.52% 0.00%
2005 -1.60% 7.33% 0.00% 0.00% 0.00%
2004 0.00% 5.21% 0.00% 0.00% 0.00%
2003 0.00% 2.12% 0.00% 0.00% 10.18%
2002 0.00% 4.27% 0.00% 0.00% 2.63%
OPER PROFIT (LOSS) $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) $31,652,823.93 1,121,314.51 1,748,532.71 1,255,617.42 (111,094.80) 0.00
2006 ($8,988,950.70) (211,140.97) 604,309.15 577,300.08 138,063.21 0.00
2005 $6,961,872.15 (288,194.38) 745,520.83 0.00 0.00 0.00
2004 $649,941.91 0.00 356,745.93 0.00 0.00 (1,063,247.33)
2003 $922,624.44 0.00 (185,061.58) 0.00 0.00 812,741.78
2002 $0.00 0.00 0.00 0.00 0.00 0.00
OPER PROFIT (LOSS) % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 7.03% -12.23% -1.86% -1.46% 0.00%
2006 -3.91% 13.93% 6.36% 1.52% 0.00%
2005 -1.60% 2.12% 0.00% 0.00% 0.00%
2004 0.00% 3.09% 0.00% 0.00% -10.18%
2003 0.00% -2.15% 0.00% 0.00% 7.55%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
(Continued on following page)
ENGLOBAL CORPORATION INC.
CONSOLIDATED BY LEGAL ENTITY
------------------------------------------------------------------------
ENGINEERING SEGMENT PEI
-----------------------------------------------------------------------------------------------------------------
CONSOL EEI RPM ETS INVEST
-----------------------------------------------------------------------------------------------------------------
OPERATING SEGMENTS ONLY
OPER PROFIT (LOSS)
2007-Q2-4 Budget $31,293,464.90 $23,448,153.49 $0.00 $248,499.49 $0.00
2007-Q1 Actuals $9,429,485.09 7,453,714.76 0.00 (83,749.84) 0.00
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $40,722,949.99 30,901,868.25 0.00 164,749.65 0.00
2006 $9,070,126.06 6,620,270.57 0.00 (772,799.71) 0.00
2005 $18,059,076.76 15,949,337.09 940,362.13 (111,218.54) 0.00
2004 $11,097,204.61 10,152,025.23 300,984.93 (488,029.92) 0.00
2003 $10,447,262.70 9,438,446.14 (86,981.54) 0.00 0.00
2002 $9,524,638.26 8,666,385.71 (440,841.97) 0.00 0.00
OPER PROFIT (LOSS) % OF REVENUE
2007-Q2-4 Budgets 16.04% 0.00% 6.58% 0.00%
2007-Q1 Actuals 14.78% 0.00% -10.11% 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 15.71% 0.00% 3.58% 0.00%
2006 3.13% 0.00% -14.19% 0.00%
2005 9.12% 7.35% -2.06% 0.00%
2004 8.76% 3.95% -13.42% 0.00%
2003 10.99% -1.45% 0.00% 0.00%
2002 17.59% -4.01% 0.00% 0.00%
OPER PROFIT (LOSS) PERCENTAGES
2007-Q2-4 Budgets 74.93% 0.00% 0.79% 0.00%
2007-Q1 Actuals 79.05% 0.00% -0.89% 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 75.88% 0.00% 0.40% 0.00%
2006 72.99% 0.00% -8.52% 0.00%
2005 88.32% 5.21% -0.62% 0.00%
2004 91.48% 2.71% -4.40% 0.00%
2003 90.34% -0.83% 0.00% 0.00%
2002 90.99% -4.63% 0.00% 0.00%
OPER PROFIT (LOSS) $ CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) $31,652,823.93 24,281,597.68 0.00 937,549.36 0.00
2006 ($8,988,950.70) (9,329,066.52) (940,362.13) (661,581.17) 0.00
2005 $6,961,872.15 5,797,311.86 639,377.20 376,811.38 0.00
2004 $649,941.91 713,579.09 387,966.47 (488,029.92) 0.00
2003 $922,624.44 772,060.43 353,860.43 0.00 0.00
2002 $0.00 0.00 0.00 0.00 0.00
OPER PROFIT (LOSS) % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 2.89% 0.00% 8.92% 0.00%
2006 -15.33% -5.21% -7.90% 0.00%
2005 -3.17% 2.49% 3.78% 0.00%
2004 1.14% 3.54% -4.40% 0.00%
2003 -0.65% 3.80% 0.00% 0.00%
2002 0.00% 0.00% 0.00% 0.00%
ENGLOBAL CORPORATION INC.
CONSOLIDATED BY LEGAL ENTITY
---------------------------------------------------------------------------
MANU SEG SYSTEMS SEGMENT ENGINEERING SEGMENT
-----------------------------------------------------------------------------------------------------------------
CONSOL THER ESI ECP SEN EAG
-----------------------------------------------------------------------------------------------------------------
OPERATING SEGMENTS ONLY
NET INCOME (LOSS)
2007-Q2-4 Budge $30,788,607.38 $0.00 $734,474.28 $0.00 $0.00 $2,720,105.13
2007-Q1 Actuals $4,848,686.61 $0.00 ($495,300.60) $0.00 $0.00 ($15,298.63)
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $35,637,293.99 $0.00 $239,173.68 $0.00 $0.00 $2,704,806.50
2006 ($3,336,510.01) $0.00 ($1,250,928.67) $0.00 $0.00 $664,865.11
2005 $7,485,360.89 117,711.49 (1,717,519.80) 0.00 0.00 1,082,090.83
2004 $1,905,316.31 (8,586.06) (39,913.27 (40,892.75) 92,685.20 (343,956.68)
2003 $2,915,137.62 (190,413.37) (983,561.29) (387,187.94) 37,301.58 504,684.84
2002 $5,597,341.13 (238,857.89) (254,407.64) (389,908.47) 0.00 399,146.58
NET INCOME (LOSS) % OF REVENUE
2007-Q2-4 Budgets 0.00% 4.38% 0.00% 0.00% 16.54%
2007-Q1 Actuals 0.00% -8.99% 0.00% 0.00% -0.37%
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 0.00% 1.07% 0.00% 0.00% 13.13%
2006 0.00% -4.81% 0.00% 0.00% 6.42%
2005 0.00% -11.98% 0.00% 0.00% 21.31%
2004 0.00% -0.34% -2.31% 9.19% -38.31%
2003 -9.60% -8.68% -26.62% 8.34% 24.01%
2002 -9.80% -2.53% -13.06% 0.00% 36.50%
NET INCOME (LOSS)
PERCENTAGES PROFITS LOSSES
2007 (Q1Act + BUD) 35,637,293.99 0.00 0.00% 0.67% 0.00% 0.00% 7.59%
2006 1,581,283.61 (4,917,793.62) 0.00% 25.44% 0.00% 0.00% 13.52%
2005 8,532,939.64 (1,047,578.75) 1.38% 20.13% 0.00% 0.00% 12.68%
2004 2,992,341.33 (1,087,025.02) 0.29% 1.33% 1.37% 3.10% 11.49%
2003 4,759,937.85 (1,844,800.23) 4.00% 20.66% 8.13% 0.78% 10.60%
2002 8,513,993.74 (2,916,652.61) 2.81% 2.99% 4.58% 0.00% 4.69%
NET INCOME (LOSS) $ CHANGE YEAR TO YEAR
2007 (Q1Act + BUD) $38,973,804.00 0.00 1,490,102.35 0.00 0.00 2,039,941.39
2006 ($10,821,870.90) (117,711.49) 466,591.13 0.00 0.00 (417,225.72)
2005 $5,580,044.58 126,297.55 (1,677,606.53) 40,892.75 (92,685.20) 1,426,047.51
2004 ($1,009,821.31) 181,827.31 943,648.02 346,295.19 55,383.62 (848,641.52)
2003 ($2,682,203.51) 48,444.52 (729,153.65) 2,720.53 37,301.58 105,538.26
2002 $0.00 0.00 0.00 0.00 0.00 0.00
NET INCOME (LOSS) % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 0.00% -24.77% 0.00% 0.00% -5.93%
2006 -1.38% 5.31% 0.00% 0.00% 0.84%
2005 1.09% 18.79% -1.37% -3.10% 1.19%
2004 -3.71% -19.33% -6.77% 2.31% 0.89%
2003 1.19% 17.68% 3.55% 0.78% 5.91%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
(Continued on following page)
ENGLOBAL CORPORATION INC.
CONSOLIDATED BY LEGAL ENTITY
------------------------------------------------------------------------
ENGINEERING SEGMENT
-----------------------------------------------------------------------------------------------------------------
CONSOL ECAN ECR WRC WRC CAN IDS
-----------------------------------------------------------------------------------------------------------------
OPERATING SEGMENTS ONLY
NET INCOME (LOSS)
2007-Q2-4 Budge $30,788,607.38 $259,536.24 $2,186,150.75 $1,191,688.00 $0.00 $0.00
2007-Q1 Actuals $4,848,686.61 ($158,729.45) $697,330.76 $263,546.86 $12,997.11 $0.00
- ----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $35,637,293.99 $100,806.79 $2,883,481.51 $1,455,234.86 $12,997.11 $0.00
2006 ($3,336,510.01) ($567,166.90) ($123,740.67) $529,802.64 $77,174.93 $0.00
2005 $7,485,360.89 (289,876.17) 227,222.20 0.00 0.00 0.00
2004 $1,905,316.31 0.00 30,315.23 0.00 0.00 0.00
2003 $2,915,137.62 0.00 (61,248.51) 0.00 0.00 290,196.77
2002 $5,597,341.13 0.00 (129,050.11) 0.00 0.00 (704,656.12)
NET INCOME (LOSS) % OF REVENUE
2007-Q2-4 Budgets 6.58% 6.02% 6.11% 0.00% 0.00%
2007-Q1 Actuals -53.73% 4.98% 4.01% 4.08% 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 2.38% 5.73% 5.58% 4.08% 0.00%
2006 -58.91% -0.35% 3.79% 2.76% 0.00%
2005 -326.53% 0.99% 0.00% 0.00% 0.00%
2004 0.00% 0.33% 0.00% 0.00% 0.00%
2003 0.00% -1.17% 0.00% 0.00% 2.21%
2002 0.00% -2.52% 0.00% 0.00% -5.79%
NET INCOME (LOSS)
PERCENTAGES PROFITS LOSSES
2007 (Q1Act + BUD) 35,637,293.99 0.00 0.28% 8.09% 4.08% 0.04% 0.00%
2006 1,581,283.61 (4,917,793.62) 11.53% 2.52% 10.77% 1.57% 0.00%
2005 8,532,939.64 (1,047,578.75) 3.40% 2.66% 0.00% 0.00% 0.00%
2004 2,992,341.33 (1,087,025.02) 0.00% 1.01% 0.00% 0.00% 0.00%
2003 4,759,937.85 (1,844,800.23) 0.00% 1.29% 0.00% 0.00% 6.10%
2002 8,513,993.74 (2,916,652.61) 0.00% 1.52% 0.00% 0.00% 8.28%
NET INCOME (LOSS) $ CHANGE YEAR TO YEAR
2007 (Q1Act + BUD) $38,973,804.00 667,973.69 3,007,222.18 925,432.22 (64,177.82) 0.00
2006 ($10,821,870.90) (277,290.73) (350,962.87) 529,802.64 77,174.93 0.00
2005 $5,580,044.58 (289,876.17) 196,906.97 0.00 0.00 0.00
2004 ($1,009,821.31) 0.00 91,563.74 0.00 0.00 (290,196.77)
2003 ($2,682,203.51) 0.00 67,801.60 0.00 0.00 994,852.89
2002 $0.00 0.00 0.00 0.00 0.00 0.00
NET INCOME (LOSS) % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) -11.25% 5.58% -6.69% -1.53% 0.00%
2006 8.14% -0.15% 10.77% 1.57% 0.00%
2005 3.40% 1.65% 0.00% 0.00% 0.00%
2004 0.00% -0.27% 0.00% 0.00% -6.10%
2003 0.00% -0.23% 0.00% 0.00% -2.18%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
(Continued on following page)
ENGLOBAL CORPORATION INC.
CONSOLIDATED BY LEGAL ENTITY
-------------------------------------------------------------------------
ENGINEERING SEGMENT PEI
------------------------------------------------------------------------------------------------------------------
CONSOL EEI RPM ETS INVEST
------------------------------------------------------------------------------------------------------------------
OPERATING SEGMENTS ONLY
NET INCOME (LOSS)
2007-Q2-4 Budge $30,788,607.38 $23,448,153.49 $0.00 $248,499.49 $0.00
2007-Q1 Actuals $4,848,686.61 $4,630,150.04 $0.00 ($86,009.48) $0.00
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) $35,637,293.99 $28,078,303.53 $0.00 $162,490.01 $0.00
2006 ($3,336,510.01) ($2,161,194.37) $0.00 ($814,763.01) $309,440.93
2005 $7,485,360.89 7,809,957.10 378,048.85 (122,273.61) 0.00
2004 $1,905,316.31 2,869,340.90 (152,684.46) (500,991.80) 0.00
2003 $2,915,137.62 4,432,439.50 (727,073.96) 0.00 0.00
2002 $5,597,341.13 8,369,254.80 (1,454,180.02) 0.00 0.00
NET INCOME (LOSS) % OF REVENUE
2007-Q2-4 Budgets 16.04% 0.00% 6.58% 0.00%
2007-Q1 Actuals 9.18% 0.00% -10.38% 0.00%
- ------------------------------------------------------------------------------------------------------------------------------
2007 (Q1Act + Bud) 14.28% 0.00% 3.53% 0.00%
2006 -1.02% 0.00% -14.96% 0.00%
2005 4.47% 2.95% -2.26% 0.00%
2004 2.48% -2.00% -13.78% 0.00%
2003 5.16% -12.16% 0.00% 0.00%
2002 16.99% -13.22% 0.00% 0.00%
NET INCOME (LOSS)
PERCENTAGES PROFITS LOSSES
2007 (Q1Act + BUD) 35,637,293.99 0.00 78.79% 0.00% 0.46% 0.00%
2006 1,581,283.61 (4,917,793.62) 43.95% 0.00% 16.57% 6.29%
2005 8,532,939.64 (1,047,578.75) 91.53% 4.43% 1.43% 0.00%
2004 2,992,341.33 (1,087,025.02) 95.89% 5.10% 16.74% 0.00%
2003 4,759,937.85 (1,844,800.23) 93.12% 15.27% 0.00% 0.00%
2002 8,513,993.74 (2,916,652.61) 98.30% 17.08% 0.00% 0.00%
NET INCOME (LOSS) $ CHANGE YEAR TO YEAR
2007 (Q1Act + BUD) $38,973,804.00 30,239,497.90 0.00 977,253.02 (309,440.93)
2006 ($10,821,870.90) (9,971,151.47) (378,048.85) (692,489.40) 309,440.93
2005 $5,580,044.58 4,940,616.20 530,733.31 378,718.19 0.00
2004 ($1,009,821.31) (1,563,098.60) 574,389.50 (500,991.80) 0.00
2003 ($2,682,203.51) (3,936,815.30) 727,106.06 0.00 0.00
2002 $0.00 0.00 0.00 0.00 0.00
NET INCOME (LOSS) % CHANGE YEAR TO YEAR
2007 (Q1Act + Bud) 34.84% 0.00% -16.11% -6.29%
2006 -47.58% -4.43% 15.13% 6.29%
2005 -4.36% -0.67% -15.31% 0.00%
2004 2.77% -10.17% 16.74% 0.00%
2003 -5.18% -1.81% 0.00% 0.00%
2002 0.00% 0.00% 0.00% 0.00%
ENGLOBAL CORPORATION INC.
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MANU SEG SYSTEMS SEGMENT ENGINEERING SEGMENT
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CONSOL THER ESI ECP SEN EAG
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ASSETS
2007-Q1 Actuals $93,747,468.50 $0.00 $12,867,394.49 $0.00 $0.00 $3,176,207.32
2006 $86,621,020.22 $0.00 $16,264,985.62 $0.00 $0.00 $1,947,949.95
2005 $59,819,849.81 0.00 6,165,424.03 0.00 0.00 254,221.27
2004 $40,708,095.10 688,902.81 5,340,951.16 423,022.54 529,987.12 744,142.66
2003 $31,764,941.79 873,338.41 2,340,004.81 516,845.70 721,642.72 424,771.20
2002 $26,723,079.52 1,756,575.31 5,087,636.41 832,676.32 0.00 0.00
ASSETS - PERCENTAGES
2007-Q1 Actuals 0.00% 13.73% 0.00% 0.00% 3.39%
2006 0.00% 18.78% 0.00% 0.00% 2.25%
2005 0.00% 10.31% 0.00% 0.00% 0.42%
2004 1.69% 13.12% 1.04% 1.30% 1.83%
2003 2.75% 7.37% 1.63% 2.27% 1.34%
2002 6.57% 19.04% 3.12% 0.00% 0.00%
ASSETS $ CHANGE YEAR TO YEAR
2007-Q1 Actuals $7,126,448.28 0.00 (3,397,591.13) 0.00 0.00 1,228,257.37
2006 $26,801,170.41 0.00 10,099,561.59 0.00 0.00 1,693,728.68
2005 $19,111,754.71 (688,902.81) 824,472.87 (423,022.54) (529,987.12) (489,921.39)
2004 $8,943,153.31 (184,435.60) 3,000,946.35 (93,823.16 (191,655.60) 319,371.46
2003 $5,041,862.27 (883,236.90) (2,747,631.60) (315,830.62) 721,642.72 424,771.20
2002 $0.00 0.00 0.00 0.00 0.00 0.00
ASSETS % CHANGE YEAR TO YEAR
2007-Q1 Actuals 0.00% -5.05% 0.00% 0.00% 1.14%
2006 0.00% 8.47% 0.00% 0.00% 1.82%
2005 -1.69% -2.81% -1.04% -1.30% -1.40%
2004 -1.06% 5.75% -0.59% -0.97% 0.49%
2003 -3.82% -11.67% -1.49% 2.27% 1.34%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
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ENGINEERING SEGMENT
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CONSOL ECAN ECR WRC WRC CAN IDS
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ASSETS
2007-Q1 Actuals $93,747,468.50 $373,352.90 $11,022,552.19 $13,515,622.58 $373,352.90 $0.00
2006 $86,621,020.22 $257,256.57 $11,569,616.93 $11,124,476.20 $417,566.31 $0.00
2005 $59,819,849.81 214,349.08 6,574,908.69 0.00 0.00 0.00
2004 $40,708,095.10 0.00 5,590,476.52 0.00 0.00 0.00
2003 $31,764,941.79 0.00 753,928.54 0.00 0.00 4,098,610.46
2002 $26,723,079.52 0.00 1,204,706.97 0.00 0.00 4,259,324.77
ASSETS - PERCENTAGES
2007-Q1 Actuals 0.40% 11.76% 14.42% 0.40% 0.00%
2006 0.30% 13.36% 12.84% 0.48% 0.00%
2005 0.36% 10.99% 0.00% 0.00% 0.00%
2004 0.00% 13.73% 0.00% 0.00% 0.00%
2003 0.00% 2.37% 0.00% 0.00% 12.90%
2002 0.00% 4.51% 0.00% 0.00% 15.94%
ASSETS $ CHANGE YEAR TO YEAR
2007-Q1 Actuals $7,126,448.28 116,096.33 (547,064.74) 2,391,146.38 (44,213.41) 0.00
2006 $26,801,170.41 42,907.49 4,994,708.24 11,124,476.20 417,566.31 0.00
2005 $19,111,754.71 214,349.08 984,432.17 0.00 0.00 0.00
2004 $8,943,153.31 0.00 4,836,547.98 0.00 0.00 (4,098,610.46)
2003 $5,041,862.27 0.00 (450,778.43) 0.00 0.00 (160,714.31)
2002 $0.00 0.00 0.00 0.00 0.00 0.00
ASSETS % CHANGE YEAR TO YEAR
2007-Q1 Actuals 0.10% -1.60% 1.57% -0.08% 0.00%
2006 -0.06% 2.37% 12.84% 0.48% 0.00%
2005 0.36% -2.74% 0.00% 0.00% 0.00%
2004 0.00% 11.36% 0.00% 0.00% -12.90%
2003 0.00% -2.13% 0.00% 0.00% -3.04%
2002 0.00% 0.00% 0.00% 0.00% 0.00%
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ENGINEERING SEGMENT PEI
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CONSOL EEI RPM ETS INVEST
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ASSETS
2007-Q1 Actuals $93,747,468.50 $50,874,045.01 $0.00 $1,115,964.01 $428,977.10
2006 $86,621,020.22 $43,221,468.41 $0.00 $1,392,135.63 $425,564.60
2005 $59,819,849.81 38,988,845.56 5,319,753.03 2,302,348.15 0.00
2004 $40,708,095.10 22,859,300.37 2,868,403.62 1,662,908.30 0.00
2003 $31,764,941.79 19,235,916.45 2,799,883.50 0.00 0.00
2002 $26,723,079.52 9,599,464.03 3,982,695.71 0.00 0.00
ASSETS - PERCENTAGES
2007-Q1 Actuals 54.27% 0.00% 1.19% 0.46%
2006 49.90% 0.00% 1.61% 0.49%
2005 65.18% 8.89% 3.85% 0.00%
2004 56.15% 7.05% 4.08% 0.00%
2003 60.56% 8.81% 0.00% 0.00%
2002 35.92% 14.90% 0.00% 0.00%
ASSETS $ CHANGE YEAR TO YEAR
2007-Q1 Actuals $7,126,448.28 7,652,576.60 0.00 (276,171.62) 3,412.50
2006 $26,801,170.41 4,232,622.85 (5,319,753.03) (910,212.52) 425,564.60
2005 $19,111,754.71 16,129,545.19 2,451,349.41 639,439.85 0.00
2004 $8,943,153.31 3,623,383.92 68,520.12 1,662,908.30 0.00
2003 $5,041,862.27 9,636,452.42 (1,182,812.21) 0.00 0.00
2002 $0.00 0.00 0.00 0.00 0.00
ASSETS % CHANGE YEAR TO YEAR
2007-Q1 Actuals 4.37% 0.00% -0.42% -0.03%
2006 -15.28% -8.89% -2.24% 0.49%
2005 9.02% 1.85% -0.24% 0.00%
2004 -4.40% -1.77% 4.08% 0.00%
2003 24.64% -6.09% 0.00% 0.00%
2002 0.00% 0.00% 0.00% 0.00%
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