BUFFALO, N.Y., Oct. 30, 2008 (GLOBE NEWSWIRE) --
HIGHLIGHTS :
* Revenue up 17%
* Net Income up 65%
* Solid Financial Position
Ecology and Environment, Inc. (E & E) (Nasdaq:EEI) announced increased revenues of 17% and sharply higher fourth quarter 2008 earnings of $.26 per share compared to $.18 per share cumulative for the first three quarters of fiscal year 2008. The improvement in fourth quarter operations brought annual earnings to $.44 per share on revenues of $110 million compared to earnings of $.73 per share on revenues of $102 million for the previous year. The majority of the decrease in annual earnings is attributable to a Financial Accounting Standards Board Interpretation No. 48 (FIN 48) expense of $.15 per share in fiscal year 2008, and the recording of gains from the sale of the Company's shrimp farm operation and the positive resolution of tax audits in fiscal year 2007 totaling $.26 per share. Excluding these items, earnings for all of fiscal year 2008 increased 25% to $.59 per share from $.47 per share in fiscal year 2007.
The Company's conservative capital structure with low debt financing continues to be prudent during these times of economic crisis.
* Book value of $39.3 million ($9.30/share) * Cash and equivalents of $14.2 million * Low debt of only $1.9 million * Line of credit of $38 million
DETAILS -- The Company reported an increase of $8.0 million in revenue during fiscal year 2008 due mainly to increases in revenue at the parent company and by E & E's majority owned subsidiaries Walsh Environmental Scientists and Engineers LLC and Ecology & Environment do Brasil. E & E's revenue increased $2.5 million during the fiscal year 2008 from work on contracts in the Company's energy and state sectors offset by decreases in work for the federal government sectors. Revenues from Walsh Environmental were $27.0 million for fiscal year 2008, an increase of 11% from the $24.4 million reported in fiscal year 2007. The increase in Walsh Environmental revenues was mainly attributable to increased activity in the environmental remediation and asbestos markets. Revenues from Ecology & Environment do Brasil were $7.2 million for fiscal year 2008, an increase of $2.2 million or 44% over the prior year due mainly to increased work in the public and private power industries.
The majority of the current year FIN 48 expense pertains to the Company's contested tax liability in Kuwait. The Company asserts that a contractual obligation exists for reimbursement by its customer of any of these contested Kuwait tax obligations and E & E has now recorded total after tax charges to date of $3.3 million, $2.7 million as a reduction of retained earnings and $.6 million charged to current operations in fiscal year 2008.
This document contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Variations of such words as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "may," and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason. Further, information on risks and uncertainties is available in our filings with the Securities and Exchange Commission, which are incorporated by reference.
Ecology and Environment, Inc., is headquartered in Lancaster, New York, a suburb of Buffalo. Its common stock is listed on the NASDAQ under the symbol EEI. E & E can be located on the World Wide Web at www.ene.com.
Financial Report
(In thousands, except per share information)
Three Months Ending
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July 31, July 31,
2008 2007
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Revenue $ 33,395 $ 28,444
Net Income From Continuing Operations 1,080 971
Net Loss From Discontinued Operations -- (319)
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Net Income 1,080 652
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Net Income (Loss) Per Common Share: Basic
Continuing Operations $ 0.26 $ 0.24
Discontinued Operations -- (0.08)
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Net Income Per Common Share: Basic $ 0.26 $ 0.16
Net Income (Loss) Per Common Share: Diluted
Continuing Operations $ 0.26 $ 0.23
Discontinued Operations -- (0.08)
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Net Income Per Common Share: Diluted $ 0.26 $ 0.15
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Fiscal Year Ending
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July 31, July 31,
2008 2007
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Revenue $110,533 $102,496
Net Income From Continuing Operations 1,834 2,715
Net Income From Discontinued Operations -- 359
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Net Income 1,834 3,074
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Net Income Per Common Share: Basic
Continuing Operations $ 0.44 $ 0.65
Discontinued Operations -- 0.08
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Net Income Per Common Share: Basic $ 0.44 $ 0.73
Net Income Per Common Share: Diluted
Continuing Operations $ 0.43 $ 0.64
Discontinued Operations -- 0.08
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Net Income Per Common Share: Diluted $ 0.43 $ 0.72