SOURCE: Ecology and Environment, Inc.

Ecology and Environment, Inc.

October 29, 2015 17:20 ET

Higher U.S. Revenues and Reduced Operating Expenses Drive Increased Fiscal Year 2015 Earnings at Ecology and Environment, Inc.

LANCASTER, NY--(Marketwired - October 29, 2015) - Driven by a 6% increase in revenue from U.S. operations and an 11% reduction in operating expenses, Ecology and Environment, Inc., (“E & E” or the “Company”) (NASDAQ: EEI) reported consolidated net income of $0.79 per share for the fiscal year ended July 31, 2015, an improvement of $1.11 per share from the net loss of $0.32 per share reported for the prior fiscal year.

Total revenues decreased slightly overall for fiscal year 2015, as compared with the prior fiscal year. Higher revenues from U.S. operations, which represent nearly 70% of consolidated revenues, were offset by a 14% decrease in foreign revenues. In the U.S., higher Department of Defense and energy sector project activity was partially offset by lower government and mining sector activity and by a strategic decision to wind down existing asbestos remediation contracts and forego any new asbestos business. South American operations were adversely affected by an economic downturn in Brazil and weakening of the Brazilian Real in relation to the U.S. dollar. Management is closely monitoring economic conditions and reducing operating costs in Brazil and elsewhere in South America in response to lower project activity.

A two-year-long initiative to reduce operating expenses and improve operating efficiency continued to have a positive impact on the Company’s earnings. Total operating expenses decreased 11% for fiscal year 2015, as compared with the previous fiscal year. “Our commitment to a disciplined course of action to streamline the way we operate and to focus on growth markets in the U.S. has returned E & E to profitability,” said president and CEO Gerard A. Gallagher III. “We established goals for revenue growth and cost reductions in fiscal year 2015 and we realized them. The improved results have allowed us to begin fiscal year 2016 from a position of strength, with a larger backlog of work than we had a year ago.”

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  
   July 31, 2015  July 31, 2014   % Change  
               
Revenue, net  $35,043  $33,096   6 %
               
Gross Revenue less Subcontract Costs  $27,136  $25,889   5 %
               
Total Operating Expenses (excluding subcontract costs)  $24,748  $25,871   -4 %
               
Net Income (Loss) Attributible to Ecology and Environment, Inc.  $907  $(656 ) -  
               
Net Income (Loss) Per Common Share (Basic and Diluted)  $0.21  $(0.15 ) -  
               
               
   Fiscal Year Ending  
   July 31, 2015  July 31, 2014   % Change  
               
Revenue, net  $126,740  $128,427   -1 %
               
Gross Revenue less Subcontract Costs  $104,208  $107,772   -3 %
               
Total Operating Expenses (excluding subcontract costs)  $95,809  $108,105   -11 %
               
Net Income (Loss) Attributible to Ecology and Environment, Inc.  $3,396  $(1,383 ) -  
               
Net Income (Loss) Per Common Share (Basic and Diluted)  $0.79  $(0.32 ) -