SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) ________August 14, 2003_____
ENGLOBAL CORPORATION
(Exact name of registrant as specified in its chapter)
Nevada 001-14217 88-0322261
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
600 Century Plaza Drive, Building 140, Houston, Texas 77073-6033
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 281 821-3200
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(Former name or former address, if changed since last report)
Item 9. Regulation FD Disclosure
On August 14, 2003, ENGlobal Corporation issued a press release, a copy of which
is set forth below. In accordance with General Instructions B.2. Form 8-K, the
following information shall not be deemed "filed" for purposes of Section 18 of
the Securities Exchange Act of 1934, as amended, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, except as shall be expressly set forth by specific reference in such a
filing.
ENGlobal Reports Record Revenue and Profit;
Revenue Growth Exceeds 30%
HOUSTON--(BUSINESS WIRE)--Aug. 14, 2003--ENGlobal Corporation
(Amex:ENG), a leading provider of engineering services and engineered
systems, today reported financial results that include record
quarterly revenues of approximately $30 million, a 31% increase over
second quarter 2002 revenues. The Company also reported record profits
for the quarter, with net income showing a 7% increase when compared
to the second quarter 2002. Earnings for the quarter equaled two cents
per common share.
On a sequential basis, the comparisons are also favorable, as
second quarter 2003 revenues outpaced the first quarter by 27% and net
income increased 5%. ENGlobal's results were primarily driven by a
strong performance in its engineering services segment, resulting from
the award of several new contracts and the onset of a new phase of a
large project.
While consolidated gross profits showed a 10.3% increase as
compared to the second quarter 2002, as a percentage of revenues,
gross profits declined from 17.3% to 14.6% in the second quarter 2003.
Procurement activities on a major EPC project, which commenced in the
second quarter 2003, contributed $4.8 million of the $30 million
revenue increase reported above. However, these large material
purchases generally have a lower markup, deflating the overall gross
profits of the Company. It is important to note, however, that the
margin for our core business, engineering services, after excluding
the procurement activities, increased to 18.5% from 16.6% reported for
the second quarter 2002.
Mike Burrow, Chairman and CEO, stated, "We are pleased to report
yet another profitable quarter, despite a weak marketplace in both the
petrochemical and pipeline arenas. Our business development activity
is in high gear, which I believe is a big contributor to our current
success. Going forward, we plan to implement an aggressive growth
strategy that will complement our current business development
efforts." Mr. Burrow further commented, "To illustrate the growth in
the engineering side of our business, during the last quarter we
opened a new office in Freeport, and relocated our offices in both
Lake Charles and Tulsa, all in an effort to better serve our clients
in those areas."
ENGlobal has recorded a webcast in conjunction with today's
release to allow securities analysts, shareholders, news media and the
general public the opportunity to hear management discuss the
Company's quarterly results. The replay will be available beginning at
8 a.m. ET today, Thursday, August 14th, 2003. The archived webcast is
accessible via the Investor Relations page of ENGlobal's website at
www.englobal.com or through www.vcall.com. The event will be archived
and available for replay through September 12, 2003. A Form 10-Q
reflecting these results has been submitted to the Securities and
Exchange Commission. We invite you to visit the Company's website to
view the entire Form 10-Q as filed. All of the financial data
contained in the webcast is included in the Company's Form 10-Q.
The following is selective financial data (unaudited, except for
the Dec. 31, 2002 data) as reported for the periods shown:
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Comparative Analysis
Income Statement Data: Three months Six months
ended June 30, ended June 30,
(in 000's except per share data) 2003 2002 2003 2002
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Net Sales $29,894 $22,814 $53,498 $43,517
Net Income Before Taxes $847 $879 $1,646 $1,323
Net Income $534 $499 $1,042 $765
Net Income After Accrued Preferred
Dividends $482 $449 $937 $660
Earnings Per Common Share (Basic
and Diluted) $0.02 $0.02 $0.04 $0.03
Balance Sheet Data (in 000's) June 30, Dec 31,
2003 2002
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Working capital $9,780 $8,955
Property and equipment, net 6,080 5,758
Total assets 41,087 40,068
Long-term debt 13,281 13,323
Capital leases 134 157
Stockholders' equity 14,326 13,389
About ENGlobal Corporation "ENGlobal"
ENGlobal Corporation provides engineering services and engineered
systems principally to the petroleum refining, petrochemical, and
pipeline and process industries throughout the United States and
across the globe. ENGlobal's multi-discipline engineering and design
staff develops projects from the initial planning stage through
detailed design, procurement, and construction management. The
Engineered Systems Group develops, manufactures, installs, and
services control and instrumentation systems utilized in various
energy and processing related industries while its Technologies
Division provides services and products that support the advanced
automation and environmental technology fields. The Constant Power
Division fabricates industrial grade uninterruptible electrical power
systems and battery chargers. Further information about the Company
and its subsidiaries is available at www.englobal.com.
Safe Harbor for Forward-Looking Statements
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal
securities laws and are subject to risks and uncertainties including,
but not limited to, the Company's ability to achieve its business
strategy while effectively managing costs and expenses. Actual results
and the timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due to
a number of factors detailed from time to time in ENGlobal's filings
with the Securities and Exchange Commission. Reference is hereby made
to cautionary statements set forth in the Company's Form 10-K for the
year ended December 31, 2002, Form 10-Q for the quarters ended March
31, 2003 and June 30, 2003, current Forms 8-K, and other SEC filings.
CONTACT: ENGlobal Corporation
Hulda Coskey, 281-821-3200
Fax: 281-209-2409
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ENGlobal Corporation
Date August 14, 2003 ______________________________________
--------------- Hulda L. Coskey, Chief Governance
Officer and Secretary