LANCASTER, N.Y., June 24, 2014 (GLOBE NEWSWIRE) -- Ecology and Environment, Inc., ("E & E" or the "Company") (Nasdaq: EEI ) reported a consolidated net loss of $0.3 million or $.08 per share for the third quarter of fiscal year 2014, a slight improvement from the net loss of $0.4 million or $.10 per share reported in the third quarter of the prior year. Lower consolidated revenues and higher depreciation and amortization expense were more than offset by lower total direct and indirect operating expenses during the current quarter.
The net loss of $0.3 million for the current quarter represented a $0.5 million improvement from the net loss of $0.8 million reported for the quarter ended January 31, 2014. An 8% increase in revenues during the current quarter, due mainly to higher project work volumes, was partially offset by a 3% rise in operating expenses, as compared with the prior quarter. Higher revenues and operating expenses are a normal trend for the third quarter of the Company's fiscal year due to ramping up of planning and field work for spring and summer projects.
Consolidated revenues of $31.5 million for the current quarter decreased $0.7 million or 2% from $32.2 million reported in the third quarter of the prior year. Lower revenues overall resulted primarily from lower revenue from projects in China, from which the Company did not have any project activity during the current quarter, and from lower project work volumes in government, energy and asbestos inspection sectors within domestic markets, which were partially offset by higher energy sector revenues from South American operations. All work related to the projects in China was suspended during the fourth quarter of fiscal year 2013, and all revenues recorded through April 30, 2013 for the projects in China were completely written off by the Company by July 31, 2013. During the quarter ended April 30, 2014, adverse weather conditions in many of the Company's domestic markets delayed the start of field work for several of its spring projects.
The Company recorded $0.6 million and $1.7 million of incremental depreciation and amortization expense during the third quarter and first nine months of fiscal year 2014, respectively, as compared with the same periods in the prior fiscal year, related to its decision to abandon its current operating software system and install a new operating system by August 1, 2014. This incremental expense does not require the outlay of cash or capital, and is not expected to have an impact on reporting periods beyond fiscal year 2014.
For the first nine months of fiscal year 2014, the Company reported a consolidated net loss of $0.7 million or $.17 per share, a decrease of $2.4 million from net income of $1.7 million or $.40 per share reported in the same period last year. Lower consolidated revenues and higher depreciation and amortization expense were partially offset by lower total direct and indirect operating expenses during the first nine months of fiscal year 2014.
Consolidated revenues of $95.3 million for the first nine months of fiscal year 2014 decreased $9.9 million or 9% compared with the same period of the prior year. Lower revenue from projects in the Middle East and China, and from lower project work volumes in government, energy and asbestos sectors within domestic and certain other foreign markets, were partially offset by higher energy sector revenues from South American operations. All work related to the projects in China was suspended during the fourth quarter of fiscal year 2013, and all revenues recorded through April 30, 2013 for the projects in China were completely written off by the Company by July 31, 2013.
Excluding depreciation and amortization expenses, consolidated operating expenses decreased $1.3 million or 4% during the current quarter, and decreased $6.6 million or 7% during the first nine months of the current fiscal year, as compared with the same periods of the prior year. In addition to lower direct project expenses associated with lower project work volumes, the Company incurred lower administrative, marketing and other indirect operating expenses as a result of managed workforce reductions and other cost management initiatives undertaken during the second half of fiscal year 2013 and the first half of fiscal year 2014.
E & E is listed on the NASDAQ under the symbol EEI and the information contained in this press release is available on the Company's website at www.ene.com .
| Ecology and Environment, Inc. | |||
| Quarterly and Year-to-Date Financial Summary | |||
| (In thousands, except per share information) | |||
| Three Months Ending | |||
| April 30, 2014 | April 30, 2013 | % Increase | |
| Revenue, net | $ 31,504 | $ 32,219 | -2% |
| Gross Revenue less Subcontract Costs | $ 25,079 | $ 26,530 | -5% |
| Total Operating Expenses (excluding depreciation and amortization) | $ 30,369 | $ 31,641 | -4% |
| Net Income | $ (323) | $ (441) | -27% |
| Net Income Per Common Share: Basic and Diluted | $ (0.08) | $ (0.10) | -20% |
| Nine Months Ending | |||
| April 30, 2014 | April 30, 2013 | % Increase | |
| Revenue, net | $ 95,330 | $ 105,192 | -9% |
| Gross Revenue less Subcontract Costs | $ 77,206 | $ 87,312 | -12% |
| Total Operating Expenses (excluding depreciation and amortization) | $ 92,472 | $ 99,101 | -7% |
| Net Income | $ (727) | $ 1,713 | -142% |
| Net Income Per Common Share: Basic and Diluted | $ (0.17) | $ 0.40 | -143% |
Mr. Ronald L. Frank Executive Vice President (716) 684-8060
