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) May 13, 2003
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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 May 13, 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 First Quarter Results; EPS Doubles From Same
Period 2002
HOUSTON--(BUSINESS WIRE)--May 13, 2003--ENGlobal Corporation's
(Amex: ENG) first quarter 2003 results show consolidated revenues of
approximately $24 million and net income of two cents per common
share. The level of both revenues and profits set a record for the
Company's first quarter, with net income per common share being
approximately double when compared to the prior year results.
The Company's improved profitability is primarily due to a nearly
two percentage point improvement in its consolidated gross profit
margin. In addition, all of ENGlobal's reporting segments participated
in achieving these quarterly records, as each segment recorded
increases in both revenue and operating income for the comparison
periods.
CEO'S COMMENTS
Commenting on these results, Chairman and CEO, Mike Burrow stated,
"Our press release on January 29th provided details of ENGlobal's
three-year strategic plan and our financial expectations for 2003. The
Company remains comfortable with our previously stated earnings
projection of 10 to 14 cents per share for the year, and we believe
that our revenues from current operations will be approximately in the
middle of the $100 to $129 million range previously forecast. Our
expectation is that our improved performance for the balance of this
year will be driven primarily by ongoing projects."
OPERATIONS UPDATE
"We have recently implemented various organizational and cost
cutting measures designed to improve results at our weaker performing
operations, and we should begin to see benefits in the second
quarter," stated William Coskey, President and COO. "The utilization
of available manpower is a key metric in an engineering services
business, and we are pleased that our utilization trend has been
positive since the beginning of the year."
WEBCAST AND FORM 10-Q AVAILABLE ON ENGLOBAL'S WEBSITE
We invite you to visit the Company's totally redesigned website at
www.englobal.com to hear a webcast featuring management's overview of
the first quarter results and business highlights, and to view the
entire Form 10-Q following submission to the Securities and Exchange
Commission later today.
The following is selective financial data (unaudited, except for
the Dec. 31, 2002 data) as reported for the periods shown:
Comparative Analysis
Income Statement Data: Three months
ended March 31,
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(in 000's except per share data) 2003 2002
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Net Sales $23,603 $20,703
Net Income Before Taxes $ 799 $ 443
Net Income $ 508 $ 266
Net Income After Accrued Preferred Dividends $ 456 $ 216
Net Income Per Common Share (Basic and Diluted) $ .02 $ .01
Balance Sheet Data (in 000's)
March 31, Dec 31,
2003 2002
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Working capital $7,031 $8,955
Property and equipment, net 5,726 5,758
Total assets 38,537 40,068
Long-term debt 10,869 13,323
Capital leases 146 157
Stockholders' equity 13,845 13,389
About ENGlobal Corporation "ENGlobal"
ENGlobal Corporation, a product of the merger between Industrial
Data Systems Corporation and Petrocon Engineering, Inc., 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 quarter ended March
31, 2003, current Forms 8-K, and other SEC filings.
CONTACT: ENGlobal Corporation, Houston
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 May 13, 2003
------------ /s/ Hulda L. Coskey
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Hulda L. Coskey, Chief Governance Officer and Secretary