LANCASTER, N.Y., June 16, 2015 (GLOBE NEWSWIRE) -- Ecology and Environment, Inc., (“E & E” or the “Company”) (Nasdaq: EEI ) reported a 9% increase in revenue from U.S. operations and continued reductions in operating expenses, leading to consolidated net income of $1.8 million ($0.42 per share) for the third quarter of fiscal year 2015, an improvement from a net loss of $0.3 million ($0.08 per share) reported in the third quarter of the prior year.
For the first nine months of fiscal year 2015, the Company reported net income of $2.5 million ($0.58 per share), an improvement from the loss of $0.7 million ($0.17 per share) reported for the same period last year. Higher revenues from U.S. operations and continued reductions in operating expenses were partially offset by lower revenues from foreign operations during the current quarter and during the first nine months of the current year.
“Since the beginning of fiscal year 2014, we have developed and implemented a disciplined course of action to streamline operations and build foundational strength,” said E & E president and CEO Gerard A. Gallagher III. “We have critically reviewed indirect costs and moved toward a new operational staffing model that allows us the flexibility to be more responsive to client needs and project requirements. As reflected in our positive third quarter results, these initiatives, together with the focus and dedication of our employees, have positioned us well for improved financial performance, stability, and growth.”
Management is continuing to review the Company’s organizational and cost infrastructure to identify areas to enhance operating and cost efficiency and effectiveness. Total operating expenses decreased $4.1 million (15%) during the current quarter, and decreased $10.0 million (12%) during the first nine months of the current year, as compared with the same periods of the prior year. The Company continues to report significantly lower depreciation and amortization expense as a result of conversion to its new accounting system effective August 1, 2014.
Revenues from U.S. operations improved 9% during the current quarter, as compared with the same quarter last year, driven by higher Department of Defense and energy sector project activity. A 25% decrease in foreign revenues, largely attributable to reduced energy sector project activity in Brazil, resulted in an overall 2% decrease in revenue less subcontract costs during the current quarter. Brazilian operations have been adversely affected by a recent economic downturn and weakening of the Brazilian Real in relation to the U.S. dollar.
Revenues from U.S. operations were relatively constant for the first nine months of the current year, as compared with the same period last year. Higher Department of Defense and energy sector project activity were offset by lower government and mining sector activity during the current year and by a strategic decision to wind down existing asbestos remediation contracts and forego any new asbestos business. Foreign revenues decreased 10% during the current nine month period, as higher energy sector project activity in Peru was more than offset by lower energy and mining sector activity elsewhere in South America, resulting in an overall 4% decrease in revenue less subcontract costs.
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 .
| Financial Report - | |||||||||||
| (In thousands, except per share information) | |||||||||||
| Three Months Ending | |||||||||||
| May 2, 2015 | April 30, 2014 | % Increase | |||||||||
| Revenue, net | $ | 30,345 | $ | 31,504 | -4 | % | |||||
| Gross Revenue less Subcontract Costs | $ | 25,885 | $ | 26,351 | -2 | % | |||||
| Total Operating Expenses (including depreciation and amortization) | $ | 22,375 | $ | 26,458 | -15 | % | |||||
| Net Income (Loss) Attributable to Ecology and Environment, Inc. | $ | 1,794 | $ | (323 | ) | 655 | % | ||||
| Net Income (Loss) Per Common Share: Basic and Diluted | $ | 0.42 | $ | (0.08 | ) | 625 | % | ||||
| Nine Months Ending | |||||||||||
| May 2, 2015 | April 30, 2014 | % Increase | |||||||||
| Revenue, net | $ | 91,697 | $ | 95,330 | -4 | % | |||||
| Gross Revenue less Subcontract Costs | $ | 77,065 | $ | 80,607 | -4 | % | |||||
| Total Operating Expenses (including depreciation and amortization) | $ | 71,333 | $ | 81,351 | -12 | % | |||||
| Net Income (Loss) Attributable to Ecology and Environment, Inc. | $ | 2,489 | $ | (727 | ) | 442 | % | ||||
| Net Income (Loss) Per Common Share: Basic and Diluted | $ | 0.58 | $ | (0.17 | ) | 441 | % | ||||
Contact: Mr. Ronald L. Frank Executive Vice President (716) 684-8060 rfrank@ene.com
