SOURCE: Ecology and Environment, Inc.

Ecology and Environment, Inc.

December 16, 2015 15:01 ET

Ecology and Environment, Inc. Reports Quarterly Earnings of $0.15 per Share Despite One-Time Tax Charge in Brazil

LANCASTER, NY--(Marketwired - December 16, 2015) - Ecology and Environment, Inc. ("E & E" or the "Company") (NASDAQ: EEI) reported earnings of $0.15 per share for the quarter ended October 31, 2015, down from earnings of $0.20 per share reported for the same period last year. During the quarter, the Company recorded a one-time $0.9 million valuation allowance against existing deferred tax assets in Brazil, which significantly increased the Company's effective tax rate and reduced earnings by $0.18 per share.

E & E reported $2.6 million in income before taxes for the quarter, a 34% increase over the same period last year. The improved results were driven by higher revenues from Department of Defense, government, and energy project activity in the U.S.

Despite lower operating expenses, earnings in South America continued to be adversely affected by an economic downturn in Brazil and by global and regional economic trends affecting mining and energy project activity elsewhere in South America.

"Ongoing initiatives to stabilize and strengthen our domestic operations are paying off, as reflected by higher revenues and steady operating costs in the U.S. during the first quarter," said E & E president and CEO Gerard A. Gallagher III. "We face serious challenges in South America, notably in Brazil, where we are closely monitoring economic conditions and reducing operating costs in response to lower project activity."

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
    October 31, 2015   November 1, 2014   % Increase
             
Revenue, net   $ 30,032   $ 33,191   -10 %
                   
Gross revenue less subcontract costs   $ 24,074   $ 28,812   -16 %
                   
Total operating expenses (including depreciation and amortization)   $ 21,870   $ 25,759   -15 %
                   
Income before income tax provision   $ 2,620   $ 1,962   34 %
                   
Net income attributable to Ecology and Environment, Inc.   $ 664   $ 847   -22 %
                   
Net income per common share: Basic and Diluted   $ 0.15   $ 0.20   -25 %