BUFFALO, N.Y., June 13 /PRNewswire-FirstCall/ -- HIGHLIGHTS -- Net revenues for Ecology and Environment, Inc. for the third quarter of fiscal year 2006 were $21.3 million, up 12% from the $19.0 million reported in fiscal year 2005. The Company reported net income from all operations for the third quarter of fiscal year 2006 of $619,000 or $.15 per share, compared to a net loss of $346,000 or ($.09) per share in the third quarter of the prior year (due to recording a $.18 per share impairment loss).
DETAILS -- Net income from all operations increased due to increased utilization of staff and net revenues. The increase in net revenues is attributable to work performed on contracts associated with the relief efforts for hurricanes Katrina and Rita. These contracts contributed $3.1 million in net revenues during the third quarter of fiscal year 2006. As of the end of the third quarter, the Company has completed the majority of the work on these contracts. The remaining work should be completed during the fourth quarter of fiscal year 2006. The Company continues to aggressively market new opportunities in this region that may arise due to damage to wetlands and other coastal area impacts. Net revenues attributable to the Company's Superfund Technical Assessment and Response Team (START) contracts decreased $900,000 due to the completion of the contracts in EPA Region III in June 2005 and EPA Region IX in December 2005. Net revenues from commercial clients increased 50% during the third quarter of fiscal year 2006 attributable to increased activity on our energy related contracts. The energy markets should continue to expand for the Company.
With increased net revenues and utilization during the quarter, management has continued to control indirect costs and maintain them at a level below that of the third quarter of fiscal year 2005. Indirect costs for the third quarter of fiscal year 2006 were $9.0 million, a decrease of $254,000 from the third quarter of the prior year. The Company recorded a $1.1 million pretax impairment loss on the ASC during the third quarter of fiscal year 2005.
Ecology and Environment, Inc is headquartered in Lancaster, New York, a suburb of Buffalo. Its common stock is listed on the American Stock Exchange under the symbol EEI. E & E can be located on the World Wide Web at http://www.ene.com/.
Financial Report --
(In thousands, except per share information)
Three Months Ending
April 29, 2006 April 30, 2005
Gross Revenues $27,154 $23,717
Net Revenues 21,253 19,036
Net Income (Loss) From Continuing Operations 647 (317)
Net Loss From Discontinued Operations (28) (29)
Net Income (Loss) 619 (346)
Net Income (Loss) Per Common Share: Basic
Total Continuing Operations $0.16 $(0.08)
Discontinued Operations (0.01) (0.01)
Net Income (Loss) Per Common Share: Basic $0.15 $(0.09)
Net Income (Loss) Per Common Share: Diluted
Continuing Operations $0.16 $(0.08)
Discontinued Operations (0.01) (0.01)
Net Income (Loss) Per Common Share: Diluted $0.15 $(0.09)
Nine Months Ending
April 29, 2006 April 30, 2005
Gross Revenues $74,708 $67,604
Net Revenues 61,381 55,609
Net Income (Loss) From Continuing Operations 2,087 (1,996)
Net Loss From Discontinued Operations (93) (108)
Net Income (Loss) 1,994 (2,104)
Net Income (Loss) Per Common Share: Basic
Continuing Operations $0.52 $(0.50)
Discontinued Operations (0.02) (0.03)
Net Income (Loss) Per Common Share: Basic $0.50 $(0.53)
Net Income (Loss) Per Common Share: Diluted
Continuing Operations $0.52 $(0.50)
Discontinued Operations (0.02) (0.03)
Net Income (Loss) Per Common Share: Diluted $0.50 $(0.53)
