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) June 30, 2004
ENGLOBAL CORPORATION
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(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, Suite 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 December 15, 2003, ENGlobal Corporation sold assets of its manufacturing
segment, which had been owned by the Company's wholly-owned subsidiary,
Thermaire, Inc. d/b/a Thermal Corporation ("Thermaire"). Accordingly, ENGlobal
no longer operates a manufacturing segment. Due to the sale of Thermaire, Note
20 to the Company's financial statements, as filed in its Annual Report on Form
10-K for the year ended December 31, 2003, restated financial information for
the Company's 2003 quarterly and annual periods to reflect the discontinued
operations separate from continuing operations. As indicated in Note 20, this
quarterly data did not agree to previously filed financial statements.
The attached financial statements reflect the divestiture of the manufacturing
segment and provide a more thorough breakdown of the Company's revenues, gross
profit, percentage of sales, income from continuing operations, net income and
earnings per share information for the past five years. Previously reported
amounts will not agree to the amounts presented except net income. The Company
is filing this Current Report on Form 8-K in order to be in a position to
respond to a request for this information from an analyst.
The selected financial data should be read in conjunction with the Company's
financial statements and the notes thereto included in Part IV, Item 15, and
Part II, Item 7, Management's Discussion and Analysis of Financial Condition and
Results of Operations, of the Company's Annual Report on Form 10-K for the year
ended December 31, 2003 and other financial information.
In accordance with General Instructions B.2. to Form 8-K, the information in
this Current Report on Form 8-K 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.
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: June 30, 2004 /s/ Natalie S. Hairston
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Natalie S. Hairston, Investor Relations
Officer, Chief Governance Officer and
Corporate Secretary
ENGlobal Corporations and Subsidiaries
Consolidated Statement of Income
For the quarters ended - 2002 For the quarters ended - 2003
March June September December March June September December
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(in thousands, except per share amounts)
Operating Revenues:
Engineering $ 17,874 $ 18,625 $ 19,440 $ 19,032 $ 18,315 $ 25,257 $ 32,376 $ 32,432
Systems 2,287 3,441 3,130 5,293 4,691 4,015 3,059 3,574
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Total Revenues 20,161 22,066 22,570 24,325 23,006 29,272 35,435 36,006
Direct Costs:
Engineering 15,278 15,535 16,369 15,694 15,192 21,475 28,435 28,477
Systems 1,795 2,788 3,101 4,156 3,887 3,574 2,659 3,047
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Total Direct Costs 17,073 18,323 19,470 19,850 19,079 25,049 31,094 31,524
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Gross Profit 3,088 3,743 3,100 4,475 3,927 4,223 4,341 4,482
Selling, General and Administrative
Expenses
Amortization & depreciation expense 196 163 172 183 214 164 217 230
Other expenses 2,280 2,543 1,966 3,129 2,667 2,953 2,933 3,061
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Net Operating Income 612 1,037 962 1,163 1,046 1,106 1,191 1,191
Interest expense (217) (197) (225) (182) (198) (209) (204) (173)
Other Income and expenses 117 21 (2) 6 (39) (5) (316) 5
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Income From Continuing Operations
Before Provisions For Income Taxes 512 861 735 987 809 892 671 1,023
Provision for Income Taxes 205 372 247 373 295 329 277 209
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Income From Continuing Operations $ 307 $ 489 $ 488 $ 614 $ 514 $ 563 $ 394 $ 814
Loss From Discontinued Operations
Income (loss) from operations of
discontinued segment, net of tax (41) 10 (26) (89) (6) (29) (12) (108)
Gain from sale of discontinued
segment, net of tax -- -- -- -- -- -- -- 27
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Net Income $ 266 $ 499 $ 462 $ 525 $ 508 $ 534 $ 382 $ 733
Preferred Dividends 50 55 52 52 52 52 27 --
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Net Income Available for Common Stock $ 216 $ 444 $ 410 $ 473 $ 456 $ 482 $ 355 $ 733
Earnings per share-basic
Income form continuing operations 0.011 0.020 0.019 0.023 0.020 0.022 0.016 0.034
Loss from continuing operations (0.002) -- (0.001) (0.003) -- (0.001) (0.001) (0.003)
Net income 0.009 0.020 (0.018) 0.020 0.020 0.021 0.015 0.031
Earnings per share-diluted
Income form continuing operations 0.011 0.020 0.019 0.023 0.020 0.022 0.016 0.033
Loss from continuing operations (0.002) -- (0.001) (0.003) -- (0.001) (0.001) (0.003)
Net income 0.009 0.020 (0.018) 0.020 0.020 0.021 0.015 0.030