LANCASTER, NY--(Marketwired - December 12, 2017) - Ecology and Environment, Inc., ("E & E" or the "Company") (NASDAQ: EEI) reported net earnings of $0.12 per share for the first quarter of 2018, compared with earnings of $0.21 per share reported for the same quarter of the prior year. Lower revenues and net income from U.S operations were partially offset by improved results from subsidiaries in South America.
Favorable settlements of long-standing contract liabilities maintained by the Company resulted in $0.6 million of additional revenue during the first quarter of last year. Excluding the impact of these favorable prior year adjustments, lower project activity and earnings in the U.S. during the current quarter resulted mainly from two recent client trends: longer decision-making periods for new contract awards, and extended timeframes to fund and schedule ongoing project work. Additionally, hurricanes on the gulf coast and in southern Florida that occurred early in the current quarter temporarily disrupted service delivery under certain projects. Although the disrupted projects returned to normal operations late in the quarter, delivery of services and related revenues have been delayed.
During fiscal years 2016 and 2017, the Company's South American operations were adversely affected by unstable economic conditions and depressed energy and mining sectors. Some improvement in economic conditions was noted during fiscal year 2017, particularly in Brazil and Peru. During the current quarter, economic conditions continued to improve in those countries, which has brought additional business opportunities, a growing backlog, and significant improvement in revenue and earnings when compared with the prior year.
E & E will host a conference call tomorrow, December 13, 2017 at 4:30 p.m. ET to discuss first quarter 2018 financial results and provide a business update. Interested parties can participate in the conference call by dialing 833-715-4322 and entering code 2790198. A webcast link is available on the E & E Investor page at www.ene.com and an on-demand version of the webcast will be available following the call.
About Ecology and Environment, Inc.
E & E is a global network of innovators and problem solvers, dedicated professionals and industry leaders in scientific, engineering, and planning disciplines working collaboratively with clients to develop technically sound, science-based solutions to the leading environmental challenges of our time. The company is listed on the NASDAQ Stock Exchange under the ticker symbol EEI and the information in this release can be found online at www.ene.com.
Financial Report -
(In thousands, except per share
information)
Three Months Ended
--------------------------------------------
October 28, 2017 October 29, 2016 % Change
----------------------------------------------------------------------------
Revenue, net $ 27,082 $ 25,315 7%
Revenue, net less subcontract
costs $ 21,353 $ 21,304 0%
Total operating expenses
(excluding depreciation and
amortization) $ 19,989 $ 19,657 2%
Income before income tax
provision $ 1,092 $ 1,419 -23%
Net income attributable to
Ecology and Environment, Inc. $ 533 $ 888 -40%
Net income per common share -
basic and diluted $ 0.12 $ 0.21 -43%
----------------------------------------------------------------------------
