ENGlobal Reports Third Quarter Results
Mr. Pagano continued, "Our right sizing initiative to reduce costs will result in an annualized savings of approximately $3.0 million. During the quarter, we streamlined several departments, such as business development, project controls and procurement, and removed Construction as a reporting business segment. We believe our construction management expertise can best serve our clients as a support function to enhance productivity across all operations of the Company."
"I am particularly excited about our strategic plan, which was completed last week by our Executive Team. Our core plan involves five separate and equally important strategies -- (1) People; (2) Market Development; (3) Project Execution; (4) Business Management; and (5) Culture -- and will be launched internally early next month. Once implemented, we will evaluate our results-based plan with quarterly accountability measurements."
Under the Company's 2010 stock repurchase plan, repurchases may be consummated through open market purchases, block trades, or negotiated private transactions. During the third quarter, the Company repurchased 651,470 shares of its Common Stock for approximately $1.6 million, an average per share price of $2.40. Since the inception of the plan in June 2010, the Company has repurchased 981,099 shares of its Common Stock for approximately $2.4 million, at an average per share price of $2.41. The plan does not have an expiration date, however, the Company does not currently intend to purchase additional shares under this program. In addition, restrictions contained in our recently amended loan agreements governing our credit facility preclude us from future repurchases of our Common Stock.
ENGlobal's employee count was approximately 2,300 for the quarter ended September 30, 2010, a 13% increase from the second quarter 2010 and an increase of 6% when compared to the third quarter 2009. The Company averaged 166,000 billable hours per two-week period during the third quarter 2010, a slight decrease from the 170,000 average in the same period in 2009 and a 12% increase from 147,000 hours in the second quarter 2010. The Company's overall utilization percentage, inclusive of overhead personnel, was approximately 90% for the third quarter of 2010, compared with approximately 89% for the comparable period of 2009.
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