LANCASTER, N.Y., March 18, 2014 (GLOBE NEWSWIRE) -- Ecology and Environment, Inc., ("E & E" or the "Company") (Nasdaq:EEI) reported a consolidated net loss of $0.8 million or $0.18 per share for the second quarter of fiscal year 2014, a decrease of $2.7 million from net income of $1.9 million or $0.45 per share reported in the second quarter of the prior year. Consolidated revenues of $29.1 million for the current quarter decreased $7.1 million or 20% from $36.2 million reported in the second quarter of the prior year. Lower revenues overall resulted primarily from lower revenue from projects in the Middle East and China, for which the Company did not have any project activity during fiscal year 2014, and from lower project work volumes in government, energy and mining sectors within domestic and certain other foreign markets.
The Company recorded $0.6 million and $1.2 million of incremental depreciation and amortization expense during the second quarter and first six months of fiscal year 2014, respectively, as compared with the same periods in the prior fiscal year, related to its decision to abandon its current operating software system and install a new operating system by August 1, 2014. This incremental expense does not require the outlay of cash or capital, and it not expected to have an impact on reporting periods beyond fiscal year 2014.
For the first six months of fiscal year 2014, the Company reported a consolidated net loss of $0.4 million or $0.09 per share, a decrease of $2.6 million from net income of $2.2 million or $0.51 per share reported in the same period last year. Consolidated revenues of $63.8 million for the first six months of fiscal year 2014 decreased $9.1 million or 13% compared with the same period of the prior year. Lower revenue from projects in the Middle East and China and lower project work volumes in government, energy and mining sectors within domestic and certain other foreign markets contributed to the overall decrease in revenue for the first half of the current year.
Excluding depreciation and amortization expenses, consolidated operating expenses decreased $2.8 million or 9% during the current quarter, and decreased $5.4 million or 8% during the first six months of the current fiscal year, as compared with the same periods of the prior year. In addition to lower direct project expenses associated with lower project work volumes, the Company recorded lower administrative, marketing and other indirect operating expenses as a result of managed workforce reductions and other cost management initiatives undertaken during the second half of fiscal year 2013 and the first half of fiscal year 2014.
The net loss of $0.8 million for the second quarter represented a $1.2 million decrease from net income of $0.4 million reported for the previous quarter. A 16% drop in revenues during the second quarter, due mainly to lower project work volumes, was partially offset by 10% lower operating expenses, as compared with the prior quarter.
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.
| Ecology and Environment, Inc. | |||
| Quarterly and Year-to-Date Financial Summary | |||
| (In thousands, except per share information) | |||
| Three Months Ending | |||
| January 31, 2014 | January 31, 2013 | % Increase | |
| Revenue | $ 29,077 | $ 36,151 | -20% |
| Revenue less Subcontract Costs | $ 23,482 | $ 30,740 | -24% |
| Total Operating Expenses (excluding depreciation and amortization) | $ 29,360 | $ 32,196 | -9% |
| Net Income | $ (785) | $ 1,911 | -141% |
| Net Income Per Common Share: Basic and Diluted | $ (0.18) | $ 0.45 | -140% |
| Six Months Ending | |||
| January 31, 2014 | January 31, 2013 | % Increase | |
| Revenue | $ 63,827 | $ 72,973 | -13% |
| Revenue less Subcontract Costs | $ 52,385 | $ 60,546 | -13% |
| Total Operating Expenses (excluding depreciation and amortization) | $ 62,103 | $ 67,460 | -8% |
| Net Income | $ (404) | $ 2,154 | -119% |
| Net Income Per Common Share: Basic and Diluted | $ (0.09) | $ 0.51 | -118% |