ENGlobal Announces Full Year 2023 Financial and Operating Results - Seite 2

ENGlobal's comprehensive financial statements can be found in the Company's annual report which will be filed no later than Friday on Form 10-K with the U.S. Securities and Exchange Commission.

ENGlobal's total backlog as of December 30, 2023 was approximately $13.3 million. The Company booked approximately $30.7 million in new business in 2023. In the first two months of 2024, the Company booked approximately $4.6 million in new business resulting in a book-to-bill ratio of 1.15.

In 2023, ENGlobal achieved a number of financial and operational milestones, including:

• Improved utilization between 15-20 percentage points of our billable resources compared to last year. This has occurred through increased business opportunities as well as optimization of our labor force.
• Streamlined the Company's engineering services group to create a more cohesive team focused on added-value project engineering with offices in Houston and Tulsa. This initiative should lead to improved-margin engineering and design projects and the ability to provide full EPC services through third-party fabrication and construction partnerships.
• Improved the Company's receivables collection process, including collecting outstanding tax credits and government project payments, which has improved liquidity. The Company continues to aggressively pursue unpaid project receivables from legacy projects which, if successful, will further improve liquidity.
• Added significant capabilities in the fabrication of modular structures in the Company's automation business focused on higher-margin electrical power distribution centers, process analytical systems and remote-instrument equipment.
• Reduced overall payroll costs by more than 50% while maintaining best-in-class engineering, design and automation professionals. Streamlined accounting, payroll, cost control and other administrative functions with the goal of significantly reducing administrative overhead expense.
• Recently awarded significant new client business including an engineering design project related to a new dehydration unit for a national midstream company; automation building and integration projects for a major international diversified chemical company; and a number of new awards from long-term alliance clients.

"We still have significant work to do to reach our goals and the full potential of ENGlobal," concluded Coskey. "However, we continue to make progress each and every day and continue to work toward our goal of being a leading, profitable engineering and automation firm. I want to thank the entire ENGlobal family for their continued efforts, loyalty and unwavering dedication, I am grateful for the talent and contributions of each member of our team. I look forward to continuing to work with this exceptional group toward a profitable future."