LANCASTER, N.Y., Dec. 16, 2014 (GLOBE NEWSWIRE) -- Ecology and Environment, Inc., ("E & E" or the "Company") (Nasdaq:EEI) reported consolidated net income of $0.8 million ($0.20 per share) for the first quarter of fiscal year 2015, an improvement from net income of $0.4 million ($0.09 per share) reported in the first quarter of the fiscal year 2014.
A comparison of sequential quarters shows the combined impact of increased revenue and reduction in costs. Net income for the first quarter of fiscal year 2015 reflected a $1.5 million ($0.35 per share) improvement from the loss of $0.7 million in the previous quarter ended July 31, 2014, attributable to an increase in net revenue less subcontract costs of 10% as well as a reduction in costs.
Managed reductions in staff levels and other costs in the U.S. and South American operations resulted in significant reductions in operating expenses. Excluding depreciation and amortization expense, consolidated operating expenses decreased $1.9 million or 7% during the first quarter of fiscal year 2015, as compared with the first quarter of fiscal year 2014. In addition to lower direct project expenses associated with lower project work volumes, the Company incurred lower 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 during fiscal year 2014.
Depreciation and amortization expense decreased $0.7 million (66%) during the first quarter of fiscal year 2015, as compared with the first quarter of fiscal year 2014, primarily due to lower amortization of the Company's principal operating software. The Company acquired and developed new operating system software during fiscal year 2014, and successfully implemented the new software effective August 1, 2014 for its U.S. operations. Total software amortization expense was less than $0.1 million for the first quarter of fiscal year 2015, compared with $0.7 million for the first quarter of fiscal year 2014.
Consolidated revenue less subcontract costs of $28.4 million for the first quarter of fiscal year 2015 decreased $1.5 million or 5% from $29.9 million reported in the first quarter of fiscal year 2014. Lower project work volumes in government, commercial, asbestos inspection, and mining sectors in the U.S. and lower energy sector project activity in Brazil were partially offset by higher Department of Defense revenues in the U.S. and higher energy sector revenues from U.S. and Peru operations.
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 | |||
| November 1, 2014 | October 31, 2013 | % Increase | |
| Revenue, net | $ 33,191 | $ 34,749 | -4% |
| Gross Revenue less Subcontract Costs | $ 28,425 | $ 29,912 | -5% |
| Operating Expenses (excluding depreciation and amortization) | $ 26,008 | $ 27,876 | -7% |
| Net Income Attributable to Ecology and Environment, Inc. | $ 847 | $ 380 | 123% |
| Net Income Per Common Share: Basic and Diluted | $ 0.20 | $ 0.09 | 122% |