Ecology and Environment, Inc. Reports Improved South American Results, Lower Overall Earnings for First Nine Months of FY 201...
June 12 2018 - 5:00PM
Ecology and Environment, Inc., (“E & E” or the “Company”)
(NASDAQ:EEI) reported income of $0.04 per share for the third
quarter of fiscal year 2018, down $0.02 from income of $0.06 per
share reported for the same quarter of the prior year. Improved
results from subsidiaries in South America partially offset lower
revenues and net income from U.S. operations.
For the first nine months of 2018, E & E reported a loss of
$0.02 per share, compared with income of $0.19 reported for the
prior year, as improved subsidiary results partially offset
one-time tax charges resulting from new federal tax legislation and
lower revenues and net income from U.S. operations.
Revenues from South American operations increased 17% to $5.4
million for the current quarter, and increased 32% to $16.3 million
year-to-date. Improved economic conditions in South America that
began during fiscal year 2017 continued to have a positive impact
on our subsidiary operations in the current year, particularly in
Brazil and Peru. Results from the Company’s Chilean operations have
remained strong.
U.S. revenues decreased 9% to $14.7 million for the current
quarter, and decreased 9% to $44.5 million year-to-date, compared
with the same periods last year. Lower year-to-date project
activity and earnings in the U.S. resulted mainly from two
continuing client trends: longer decision-making periods for new
contract awards from prospective clients, and extended timeframes
to fund and schedule ongoing project work for current clients.
Enactment in December 2017 of the U.S. government’s
comprehensive tax legislation, referred to as the Tax Cuts and Jobs
Act, resulted in net one-time adjustments that increased the
Company’s income tax provision by approximately $0.4 million, and
effectively reduced year-to-date earnings by $0.10 per
share.
“While we have seen additional business opportunities and
significant improvement in revenue and earnings in our South
American operations, our U.S. results in the third quarter
continued to be impacted by sluggish activity in our core market
sectors of oil and gas and federal government work,” said E & E
president and CEO Gerard A. Gallagher III. “We remain committed to
our strategic plan for alignment with active and emerging markets,
and have continued to invest in new talent to expand avenues for
business opportunity and growth while following a disciplined
approach for improving financial results and shareholder
value."
E & E will host a conference call tomorrow, June 13, 2018 at
8:30 a.m. ET to discuss third 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
9996744. 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.
Contact:
Sara HerrmannCorporate Communications Manager(716)
684-8060sherrmann@ene.com
Financial
Report - |
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(In
thousands, except per share information) |
|
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|
Three Months Ended |
|
|
|
|
April 28, 2018 |
April 29, 2017 |
% Change |
|
|
|
|
|
|
|
Revenue,
net |
|
|
$ |
23,728 |
|
$ |
24,052 |
-1 |
% |
|
|
|
|
|
|
|
Revenue,
net less subcontract costs |
|
$ |
20,143 |
|
$ |
20,794 |
-3 |
% |
|
|
|
|
|
|
|
Total
operating expenses (excluding depreciation and amortization) |
|
$ |
19,493 |
|
$ |
19,399 |
0 |
% |
|
|
|
|
|
|
|
Income
before income tax provision |
|
$ |
450 |
|
$ |
510 |
-12 |
% |
|
|
|
|
|
|
|
Net income
attributable to Ecology and Environment, Inc. |
|
$ |
164 |
|
$ |
252 |
35 |
% |
|
|
|
|
|
|
|
Net income
per common share - basic and diluted |
|
$ |
0.04 |
|
$ |
0.06 |
33 |
% |
|
|
|
|
|
|
|
|
|
|
|
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|
Nine Months Ended |
|
|
|
|
April 28, 2018 |
April 29, 2017 |
% Change |
|
|
|
|
|
|
|
Revenue,
net |
|
|
$ |
75,892 |
|
$ |
74,094 |
2 |
% |
|
|
|
|
|
|
|
Revenue,
net less subcontract costs |
|
$ |
60,810 |
|
$ |
61,478 |
-1 |
% |
|
|
|
|
|
|
|
Total
operating expenses (excluding depreciation and amortization) |
|
$ |
58,790 |
|
$ |
57,908 |
2 |
% |
|
|
|
|
|
|
|
Income
before income tax provision |
|
$ |
1,256 |
|
$ |
2,094 |
-40 |
% |
|
|
|
|
|
|
|
Net income
attributable to Ecology and Environment, Inc. |
|
$ |
(71 |
) |
$ |
822 |
-109 |
% |
|
|
|
|
|
|
|
Net income
per common share - basic and diluted |
|
$ |
(0.02 |
) |
$ |
0.19 |
-111 |
% |
|
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