ENGlobal Announces New Ship Channel Office and Expansions in Texas & Oklahoma

Company Signs Leases Totaling 27,887 square feet

Houston, TX, June 18, 2012 (GLOBE NEWSWIRE) -- ENGlobal  (NASDAQ: ENG), a leading provider of energy-related project delivery solutions, today announced that it has finalized three leases totaling approximately 27,887 square feet for new offices in the Houston Ship Channel region and expansion of its Engineering & Construction operations in West Houston and Tulsa. 

The new Ship Channel lease is located in Deer Park, Texas.  The office will support ENGlobal's Engineering & Construction segment and is ENGlobal's first location in the Houston Ship Channel.  The office will provide support to a $15 billion petrochemical market, the largest in the country.  Build-out of the office location is expected to be completed in the third quarter of 2012.

The expansions in West Houston and Tulsa total approximately 18,039 square feet of additional space.  The new Houston location is in the Westchase Business District and represents an expansion of an existing office.  ENGlobal's Tulsa office will expand the current operation within the CityPlex Towers.  Occupancy of the offices is expected to be completed in the second quarter of 2012.

"We are excited about these key infrastructure expansions as they will allow our Engineering & Construction segments to better serve existing and future clients of ENGlobal," said Edward L. Pagano, ENGlobal's President and Chief Executive Officer. "The new Ship Channel office is a direct response to client requests to bring our engineering resources closer to the end user and illustrates our growing commitment to clients in and around this prolific petrochemical region. Combined with the growth in Texas and Oklahoma, we are well positioned for anticipated demand growth for our Engineering & Construction services."

CBRE represented ENGlobal in all three transactions.

About ENGlobal

ENGlobal (NASDAQ: ENG), founded in 1985, is a provider of engineering and related project services principally to the energy sector throughout the United States and internationally. ENGlobal operates through three business segments: Engineering & Construction, Automation, and Field Solutions. The Engineering & Construction segment provides consulting services relating to the development, management and execution of projects requiring professional engineering as well as inspection, construction management, mechanical integrity, field support, quality assurance and plant asset management. ENGlobal's Automation segment provides services related to the design, fabrication & implementation of process distributed control and analyzer systems, advanced automation, and related information technology.  The Field Solutions segment provides project management and staffing for right-of-way and site acquisition, inspection, permitting, regulatory, and legislative outreach. ENGlobal has approximately 2,000 employees in 11 offices and 9 cities. Further information about the Company and its businesses is available at www.ENGlobal.com.

Safe Harbor for Forward-Looking Statements

The statements above regarding the Company's expectations regarding its operations and certain other 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: (1) our ability to achieve profitability and positive cash flow from operations; (2) our ability to respond appropriately to the current worldwide economic situation and the resulting decrease in demand for our services and competitive pricing pressure; (3) our ability to achieve our business strategy while effectively managing costs and expenses; (4) our ability to collect accounts receivable in a timely manner; (5) our ability to accurately estimate costs and fees on fixed-price contracts; (6) the effect of changes in laws and regulations with which the Company must comply and the associated costs of compliance with such laws and regulations, either currently or in the future, as applicable; (7) the effect of changes in the price of oil; (8) delays related to the award of domestic and international contracts; (9) the effect of changes in accounting policies and practices as may be adopted by regulatory agencies, as well as by the FASB; (10) the effect on our competitive position within our market area in view of, among other things, increasing consolidation currently taking place among our competitors; (11) our ability to comply with the terms of our new credit facility with PNC and our existing letter of credit facility with Export-Import Bank of the United States; (12) our ability to execute to our internal performance plans such as our productivity improvement and cost reduction initiatives; (13) achievement of our acquisition and related integration plans; (14) our ability to win new business and convert those orders to sales within the fiscal year in accordance with our annual business plan; and (15) the uncertainties of the outcome of litigation. 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. In addition, reference is hereby made to cautionary statements set forth in the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.

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