Q1 2021 ENGlobal Corp Earnings Call

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Good morning, and welcome to the NN Global's first quarter 2021 financial results Conference call.

Keith by the company may differ materially from such forward looking statements Ah discussion the factors that could cause such differences appears in the risk factors section of the companies 10-K.

And now and global C E O Marquez will present, an analysis of the company's performance for the first quarter of 2021 and provide some outlook for the remainder of the year Mark.

Thanks, Rick appreciate it good morning, everyone. Thank you for joining us. This morning, I think I'm on a whole my comments until the end I'm on my left there and go through the quarter and then Rogers Gonna make those comments and then I've got a few comments to say.

After Roger does his presentation on them will go to answer some questions. So at this point I think I'll turn it over to Darren and we'll go ahead and get started.

Alright, Thanks Mart.

Ah revenues on the first quarter of 2021 word 12.4 million.

Which was down $35 for percent or $6.8 million from the comparable quarter.

In 2020.

The decrease in revenue was due to several other projects are completed on 2020, primarily on our automation segment.

We continue to work through our backlog, which was $18.6 million at the end of the quarter.

For our gross profit in the first quarter was 8.1 per cent compared to 16.9% for the same time period last year.

The day client was primarily results for maintaining our experienced workforce necessary to execute our project from Interstate starting in the near future.

These calls made up.

Over five per cent of the gross margin decline.

It is important to note that went on a result of maintaining our staffing levels.

As we go to the ability to take advantage of the payroll tax credit that was reported in other income on our financial statements.

With a combined value of well over 600 million, which is up significantly from 2020.

In our sales Mark without automation already line gas renewables for integration, we see active as cross all clients that we work with and have long term agreement for each year.

Most of the service agreements.

We are.

Optimistic about the later part of this year, especially as we look into 2022.

Jim the pipe drive with all the opportunities. We have we are we are again optimistic, but we think that a lot of these opportunities. The law on the counter petition later this year quarter three year quarter for.

Now on the good news is we.

The press release for our hydrogen plant, which we are building for seaboard without April 28, we are building. This together with fagin other crops on is expected to be completed by end of this year.

Our scope, which is the number of modules will be shipped in June 20, This year and expect and the plant is expected to be completed on up and running in 2021.

When finished it will produce approximately $85 million of renewable diesel and in closing we see a number of these opportunities as I'm sure everybody is aware of on the shift to renewable fuels not only hydrogen but other types of renewable project is plenty.

Thank you over to Marc.

Thank you Roger.

Like many others on our industry, we continue to deal with the after effects of COVID-19.

Because of the strong backlog that we had last year its impact on us.

Has lagged.

Much of the broader market.

As we work through that backlog.

This is evidenced by our reduced earnings reduced income and reduced backlog this year over last year.

We've been able to weather the pandemic without large scale reductions on our staff and in doing so we have utilized for government assistance programs available for us.

Therefore, we've been able to maintain our.

Staff experienced in providing traditional oil and gas solutions as well as our experience expertise and hydrogen solar and other renewable energy solutions.

So we're well prepared to execute opportunities as they are awarded to us.

As you know Roger joined our team in November of 2020, and since that time. He spent an enormous amount of time reorganizing our business into our market focused organization that provides complete vertically integrated service offerings to our clients on each market.

At the same time Roger has been recruiting.

Connected experienced senior business development people.

To complement and backfill where it needed in our organization.

This is a proven methodology that Roger is deployed in the past and I have full confidence that it's going to work for us here at global.

While we are early in this transition.

It's already beginning to pay dividends.

At a time when the economy is beginning to rebound our opportunities are greater now than they have been since I've arrived at in global 10 years ago.

Our top priority is to convert these opportunities on the backlog and then execute them profitably.

And we have high expectations for this year.

At this point I'll turn it over to questions.

Okay.

Thank you ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your line at this time, we do ask if you are listening via speakerphone. Please pick up your handset for optimal sound quality.

Once again, if you have any questions or comments. Please press star one on your phone at this time, please hold a moment, while we poll for questions.

We have no questions in the queue at this time.

Mark do you have any closing comments you'd like to finish with.

Yeah, So I want to thank everyone for listening we appreciate our shareholders and we appreciate you sticking with us.

And wish everybody to have a great and safe day.

Thank you ladies and gentlemen, this does conclude todays event you may disconnect at this time and have a wonderful day. Thank you for your participation.