LANCASTER, N.Y., June 12, 2018 (GLOBE NEWSWIRE) -- 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 $0.10 per share.
“While we have seen additional business opportunities and significant improvement in revenue and earnings in our South American operations, our U.S. results in the third quarter continued to be impacted by sluggish activity in our core market sectors of oil and gas and federal government work,” said E & E president and CEO Gerard A. Gallagher III. “We remain committed to our strategic plan for alignment with active and emerging markets, and have continued to invest in new talent to expand avenues for business opportunity and growth while following a disciplined approach for improving financial results and shareholder value."
E & E will host a conference call tomorrow, June 13, 2018 at 8:30 a.m. ET to discuss third quarter 2018 financial results and provide a business update. Interested parties can participate in the conference call by dialing 833-715-4322 and entering code 9996744. A webcast link is available on the E & E Investor page at www.ene.com and an on-demand version of the webcast will be available following the call.
About Ecology and Environment, Inc.
E & E is a global network of innovators and problem solvers, dedicated professionals and industry leaders in scientific, engineering, and planning disciplines working collaboratively with clients to develop technically sound, science-based solutions to the leading environmental challenges of our time. The company is listed on the NASDAQ Stock Exchange under the ticker symbol EEI and the information in this release can be found online at www.ene.com.
Corporate Communications Manager
|Financial Report -|
|(In thousands, except per share information)|
|Three Months Ended|
|April 28, 2018||April 29, 2017||% Change|
|Revenue, net less subcontract costs||$||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||$||0.06||33||%|
|Nine Months Ended|
|April 28, 2018||April 29, 2017||% Change|
|Revenue, net less subcontract costs||$||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||%|