ENG - Earnings call transcript Q4 2020

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Operator

Good morning, and welcome to the ENGlobal 2020 Year-End Financial Results Conference Call.

Your hosts for this morning are Chief Executive Officer, Mark Hess; President and Chief Operating Officer, Roger Westerlind; and Chief Financial Official, Darren Spriggs. At the request of ENGlobal, today's call is being recorded, and will be available for replay on the Investor Relations section of the company's corporate Web site englobal.com.

You may also access the teleconference replay by dialing toll free 877-481-4010. Again, that's 877-481-4010 domestically or 919-882-2331 internationally, and referencing conference ID 40284. available A.M. the be event of will X through replay shortly completion after this This on XX, Time Eastern March XXXX. listen-only-mode segment I would have a lines parties that the now like to been inform placed begins. this call of all your until question-and-answer in point, Relations [Operator Media to turn Rick with Eisenberg Communications. would the Instructions] I like over call At to this Director Eisenberg,

Rick Eisenberg

Thank call. you, Operator, and thanks everyone for joining us on this

to begin, our forward-looking I'd like review we Before provision. statements

that future provisions representatives factors company in today's differences make in the the CEO, results analysis for statements. differ Any and materially note future from company's of call, such by section results made Mark Mark? an provide are in some Reform forward-looking And factors the about Private that cause During statements statements the this Hess presentation achieved appears could Please Litigation statements. the now events risk forward-looking of may operating company's of other performance of of A XX-K. or the under present conference may ENGlobal XXXX. company Securities XXXX. XXXX actual Act will forward-looking such Safe the Harbor year outlook discussion

Mark Hess

Good you the On retirement Chairman as of for Xst, Board appointed everyone. you, The call. has positions the morning, from me of CEO. we while joining announced his Coskey remaining as Thank March Bill executive Rick. ENGlobal, Thank at the Board.

last over years. over imagine, can years Bill the Bill you I a As eight with close close have a eight relationship relationship and had last the with personal working

customers. to he growing also have The the acquainted of become happy has of been and his really with I step him chosen that spend be made with I'll mixed with join has Bill President. He Westerlind office. approach but to is appointed positive that now that miss pleased have family. most I his able capabilities, a to in emotion I for as all I time am a to it's his But has So, going And more familiar am years. Roger Board Roger background, away. see our internally with months. will that visible in servicing see an as couple over Darren to trends. seeing have over time, team. And Roger's experiences we our become Roger today questions. comments. have more our for has results. Corporate some of us you of Darren Secretary on with and to several our new that I'll that time, speaking call Spriggs overview give and be Darren. turn be it about coming CFO, Controller. successful replace years initiatives I the VP in impact Afterwards, XXXX will he role. been current And the open me us for up you Darren And will full Roger confidence as this will I'll will then, his Treasurer. And will At few I a

Darren Spriggs

Mark. Thanks,

a get before Just XXXX results. the introduction to quick we

was becoming two ENGlobal the Corporate approximately in I Controller CFO, years. for Before

and management different various over including and construction. experience private public, industries My industry both years have I Additionally, includes and in accounting oil and engineering, XX gas, experience positions.

to compared XXXX, EPCM from or segment XX.X% Engineering, was increased $XX.X revenue the for million to to year in the million to the improvement XXXX. in X.X% $X results, XXXX on Now, prior The revenue $X.X in revenue. Revenue we million with company's Procurement, $XX.X the million or Management, our both million year in an $XX.X Construction result reporting ended compared segments. increase of the in or

offset in share. a is XXXX, loss negative not in a as due renewed for well of in and recorded of loss, on were recorded government projects the to The as XXXX. the uncertainty improvement These net revenue government, negative by from segment, revenue as that were the by higher increase over segment the per a closures, which cost million an base in $X.XX share, automation $XX U.S. Automation for or million COVID-related restrictions partially company to the The improvement increased In delays by margin projects pandemic. we replaced imposed a XXXX. military XX% primarily a of was Automation $X.X year-over-year. Our decrease travel million year from revenue or the or well or EPCM company's projects $X.XX $XXX,XXX result as per of X.X% due a as compared SG&A with to $XXX,XXX, XXXX, $X.X $XX.X for improvements million segment

Pacific and to used XXXX $XX.X of PPE Western funds The ended the at with levels PPP credit Bank. of million That company COVID-related is under close which increase by period. and result versus was resulting million were delays project a million of the the the employees cash, experienced balance the serve XXXX. offset to these keep at the to partially the loan year normal the $X.X in latter-half revolving proceeds inefficiencies of during $X.X cash with coverage However, $X.X We facility our a PPE of million, during increase the end improvements.

the have and decision near in to full SBA the submitted expect future. We application forgiveness, the we for a

hand, conclusion, will for $X.X working current cautiously availability operations to In of future. discuss I our sufficient by along facility, continue capital with over growth our the experience in just feel our Our months. Roger and expected the to certain opportunities next working with restrictions, customers like that be XXXX. discussion believe of pandemic we capital in the credit we and funds, can fund effects we're the to the prospects that decreasing We under on now to to XX available, also turn the internally-generated million. would of our about revolving and other with now lift increased vaccines and optimistic cash most number cases, activity

Roger Westerlind

of of people ENGlobal mindful a the very board. lot of lot opportunity. thank I'm I opportunities. early Darren. be about for of kind Thanks, remain to Mark and and skilled days Bill the happy on both ABB,

which renewables, a Houston I engineering [indiscernible] part 'XX. since ABB as million years, XXXX industries. What as big to of South from also especially Carlyle/Riverstone lived I and BP, back and offshore/onshore then which worked major of with we we here from others. U.S. the which partners which company $XXX in automation, projects see is London, many a across in platform, working for I segments, as many here construction part a many Dynamic the have with great delivery Industries, that across a a industry we well segments. successful across you will power, grow we're delivery working delivery model, working Chevron, background by was do Korea, simply was use with worked to innovation. of a company, in many long sold go to Exxon, long in IOCs, With over the ENGlobal McDermott, and is in other XXXX. Sacrion I going here background in in have Germany, Africa, local What South at mean As VSME, and

had is have of flat the very So, organization, we what reorganize what here done to days. months similar matrix in ABB to early in we first my very the few tenure

our which and matrix the upstream, a delivery you delivery services, is that obviously and engineering if services yourself facility. scheduling, system That's the system, consists the or see renewables, picture and the automation. of integration the with a So, it's work, procurement horizontals, facility, project of of front terminals, horizontals in government and the fabrication refinery

and and of I build have When stage. has focus think focus we diesel, the our stage solar this, to other a so processes. hydrogen. number either renewables, a Obviously projects the talk have negotiation segments lot have is excited this in platform for clean around about has proposal I'm many really been great of far that or renewables, a we we renewable and on, we All is we future. have

guess actively in are more COVID delay more touched concern, Darren looking really Mark the and I and on, We is the the as of opportunities projects. and projects for that.

I what about think I'm cautiously we see. optimistic

that this some and listened If think has vaccines. of not COVID a still that the the mark stopped we over I is view personal the morning market setback. are we to my

a look it forward as it's quite looks the today, time The be fragile XX careful. is million I obviously to think need at backlog of we see promising. concerning, pipeline we if think I we very but

you. thank So,

Mark Hess

Thank you, Roger.

the promising. look does pipeline mentioned, Roger As

addition to these these where manage we cash in an But or filed projects I that go projects. an to availability, to get necessary. ATM, working about this in renewable issued in are space. opportunities green $XXX those point of large. lot think our Many fairly we've process S-X our the additional recently opportunities energy had market to talked to A funds the are with million we at we capital and about these is in can and believe manage if opportunities. enough which of Darren

So, questions to with the turn I will Operator answers. over for that, it and

Mark Hess

Yes.

attending the for the the much again. And Operator on mentioned, for And thank Web very site you you replay. call. it as thank will So, be

Operator

you, This conclude and Thank call. ladies today's gentlemen. conference does

this have your you may lines disconnect You and a your wonderful day. for time, participation. phone Thank at

Englobal (ENGC) 11 Mar 212020 Q4 Earnings call transcript