Q3 2020 ENGlobal Corp Earnings Call
Ladies and gentlemen, thank you for your patience you are holding for two days in global third quarter Twenty-twenty financial results Conference call. At this time, we are gathering additional participants and we'll begin momentarily. We appreciate your patience and ask that you. Please continue the old.
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Good morning, and welcome to the global third quarter Twenty-twenty Financial results Conference call. Your hosts for this morning, our Chief Executive Officer, Bill Koskey, and Chief Financial Officer Marquez.
At the request of in global today's call is being recorded and will be available for replay on the Investor Relations section of the company's corporate website and global Dot Com. You May also access the teleconference replay by dialing toll free 877481, 401 zero domestically or.
9198822331 internationally referencing conference I D 38422, this replay will be available shortly after the completion of this event through nine o'clock a M. Eastern time on November 12th 2020, I would now like to inform all parties that your life.
Things 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 Communications, Sir the floor is yours.
Thank you operator, and thanks, everyone for joining us on this call before we begin I'd like to review 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 security is litigation Reform Act of 19.
95.
Please note that actual results achieved by the company may differ materially from such forward looking statements a discussion of the factors that could cause such differences appears in the risk factors section of the companies 10-K and.
I see.
This impact has been experienced in several ways.
Weve encountered a number of project delays and project non renewals.
And weve experienced temporary facility closures as well as longer than expected delays by our customers and making decisions on new project Awards.
In addition, as in the second quarter of this year. The pandemic also reduced our ability to make in person business development contacts, which in turn affected our ability to land New project Awards.
Green energy expertise in global continues to build.
We therefore remain optimistic that this important combination of strategic relationships and targeted expertise.
Combined with our strategy of pursuing larger value modular process plant projects.
<unk> from $10 million to $200 million, each will continue to bear fruit.
Near term, we believe the most likely opportunities to be finalized neck will be.
Project similar to the 25 million dollar agreement, we signed last November for the design and fabrication of a complete modular hydrogen plan.
Looking further and we believe that in global Globals renewable fuels project opportunities.
Including active project.
Plus proposals outstanding currently exceeds $320 million.
Quarter.
This increased net loss was primarily the result of the mix of projects that we worked on this year compared to last year.
And maintaining our staffing levels at near capacity as required by the PPP loan program in order to receive full loan forgiveness.
For the first nine months of 2020, and global achieved revenue of $52.9 million at 33% improvement on revenue of 39.8 million recorded in the first nine months of 2019.
1 million versus $11.3 million at the end of 2019.
As you May recall in April 2020, we applied for and were granted a PPP loan in the amount of $4.9 million.
These funds were used precisely as they were intended to keep our employees working at close to normal levels as well as to provide additional financings financial stability to our company. During these uncertain times.
As a result of our strict adherence to these guidelines, we expect full forgiveness.
You to provide us with multiple opportunities for new business and growth.
In closing I'd like to thank each of you for your support.
May you and your families remain healthy and safe as we navigate together through this time.
With that we're happy to take your questions.
Ladies and gentlemen, the floor is now open for questions. If you do have a question. Please press star one on your telephone keypad at this time, if you're using a speaker phone we ask that while posing your question you pick up your handset to provide the best sound quality.
Again, ladies and gentlemen, if you do have a question or comment. Please press star one on your telephone keypad at this time.
We'll take our first question from Philip Oppenheimer. Please go ahead Sir.
Good morning, and thank you you guys kind of admirable job in a tough environment.
I'm confused by your balance sheet, you show Longterm dead 3371.
And you show a current portion of a note.
Of.
Three O four two now is one of those the P. P P.
Yes, or actually there's a component in both of those that has the P. P. P. Long it's reflected on a balance sheet as it is that and it's not forgiven at this moment. So it's still on the balance sheet.
So there's six man for roughly a dead.
At the moment.
Of which 4.9 is forgivable.
Correct.
And the other do you envision you'll be debt free by the end of the next quarter or are you guys still require Berlin.
We don't require that the remaining 1.4 million is what we've drawn on our working capital facility.
Because we have a minimum interest.
Requirement as a part of our working capital facility and that's the amount that needs to be drawn in order to satisfy that minimum interest.
Gotcha, so that'll probably stay out there at 1.4, but you're not gonna need additional.
Can you project that and.
At this point, we believe that we have enough capacity and are working capital and are not looking at additional debt.
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