ENGlobal Corp. (NASDAQ:ENG) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:00 am ET

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ENGlobal Corp. (NASDAQ:ENG) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning and welcome to the ENGlobal Second Quarter 2020 Financial Results Conference Call. Your hosts for this morning our Chief Executive Officer, Bill Coskey; and Chief Financial Officer, Mark Hess.

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 website, englobal.com. You may also access the teleconference replay by dialing toll free 877-481-4010 domestically or 919-882-2331 internationally, referencing conference ID 36020. The replay will be available shortly after the completion of this event through 9.00 am Eastern Time on August 13, 2020.

I would like to now inform all parties that your lines have been placed in a listen-only-mode until the question-and-answer segment of this call begins. To ask a question in that segment, you will receive instructions from the operator.

At this point, I would like to turn the call over to Rick Eisenberg, Media Relations Director with Eisenberg Communication.

Executive
Rick Eisenberg

Thank you, operator and thanks everyone for joining us on this call. Before we begin, I'd like to review our forward-looking statements provision. During today's conference call, Company representatives may make forward-looking statements. Any statements made in this presentation about future operating results, or other future events are forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Please note that actual results achieved by the Company may differ materially from such forward-looking statements. A discussion of factors that could cause such differences appears in the risk factors section of the Company's 10-K.

And now ENGlobal CEO, Bill Coskey will present an analysis of the Company's performance in the second quarter of 2020 and provide some outlook for the rest of that year. Bill?

Executive
William Coskey

Thanks, Rick. Good morning, everyone, and thank you for joining this call. There is a lot of information to cover, including how ENGlobal has been doing in the midst of the ongoing pandemic.

First though, as you may have read in our press release this morning, ENGlobal has achieved its third consecutive quarter of profitability. Although it was a smaller profit than what was reported in the previous two quarters, it was a very good result on a comparison basis.

For our second quarter, which ended June 27, 2020, the company recorded net income of $68,000 or $0.00 per share compared to a net loss of $517,000 or a loss of $0.02 per share in the second quarter of last year. Also in the second quarter of 2020, ENGlobal grew revenue to $17.9 million, which is a 31% improvement over revenue of $13.6 million in the second quarter of 2019. This gain was mostly due to a $3.3 million or a 41% increase in revenue from our Automation segment, which as you may know, performs our higher-value modular automation and commissioning work.

What's further encouraging is that our Automation segment once again increased gross profit margin from 14% in the second quarter of last year to 16.1% for the second quarter of 2020.