LANCASTER, N.Y., Dec. 16, 2013 (GLOBE NEWSWIRE) -- Ecology and Environment, Inc., ("E & E" or the "Company") (Nasdaq:EEI) reported consolidated net income of $0.4 million or $.09 per share for the first quarter of fiscal year 2013, an increase of $0.2 million from the net income of $0.2 million or $.06 per share reported in the first quarter of the prior year.
Consolidated revenues of $34.7 million for the current quarter decreased $2.1 million or 6% from $36.8 million reported in the first quarter of the prior year. Lower revenues resulted primarily from lower project work volume in energy and mining sectors within domestic and certain foreign markets.
Consolidated total operating expenses, excluding depreciation and amortization expenses, decreased $2.5 million or 7% during the current quarter as compared with the same quarter last year. In addition to lower direct project expenses associated with lower work volume, the Company experienced the positive earnings impact of managed workforce reductions undertaken during fiscal year 2013.
Compared to the fourth quarter of fiscal year 2013, net income for the current quarter increased $4.2 million. After considering several factors regarding revenue and contract receivables related to projects in China, the Company recorded $6.3 million of contract adjustments as a reduction of revenue during fiscal year 2013, including $4.8 million in the fourth quarter of 2013. By comparison, the Company did not record any significant contract adjustments during the first quarter of 2014.
Also during fourth quarter of 2013, the Company recorded a software impairment charge of $0.8 million. During the first quarter of 2014, as a result of a decision to abandon the current operating software system and convert to a new system effective August 1, 2014, the Company accelerated the amortization of the current system, which resulted in $0.6 million of incremental depreciation and amortization expense during the current quarter, as compared with the fourth quarter of 2013 and previous quarters.
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 | |||
| October 31, 2013 | October 31, 2012 | % Change | |
| Revenue, net | $ 34,749 | $ 36,822 | -6% |
| Revenue less subcontract costs | $ 28,903 | $ 29,806 | -3% |
| Total operating expenses (excluding depreciation and amortization) | $ 32,743 | $ 35,264 | -7% |
| Net income attributable to Ecology and Environment, Inc. | $ 380 | $ 243 | 56% |
| Net income per common share: basic and diluted | $ 0.09 | $ 0.06 | 50% |