LANCASTER, N.Y., June 17, 2019 (GLOBE NEWSWIRE) -- Ecology and Environment Inc. (E & E, or the Company) (NASDAQ: EEI) reported a consolidated net loss of $1.0 million ($0.24 per share) for its third quarter ended April 27, 2019, compared with consolidated net income of $0.1 million ($0.02 per share) for the third quarter of the prior fiscal year. For the nine months ended April 27, 2019, E & E reported a consolidated net loss of $1.5 million ($0.34 per share), compared with consolidated net income of $0.1 million ($0.03 per share) for the first nine months of the prior year.
Nonrecurring incremental expenses, including $0.8 million of employee severance costs associated with the voluntary retirement program and reduction in workforce and $0.9 million of incremental expenses associated with recent restatements of its prior year consolidated financial statements, had a significant detrimental impact on the Company’s operating results for the third quarter and first nine months of fiscal year 2019.
“We have been notified by Nasdaq that our filing delinquencies have been remedied and that the potential delisting has been favorably resolved,” said Executive Chairman Marshall A. Heinberg. “Unfortunately, our third quarter was a difficult one. Nonrecurring employee severance costs and audit expenses associated with the restatement had a negative impact, while growth initiatives undertaken in the second quarter, including a restructuring of US Operations to drive improved efficiency and strategic investments in sales and marketing, are not yet reflected in our results.”
Improved revenue from the Company’s US and Brazilian operations was partially offset by lower revenue operations in Peru during the current quarter, as compared with the same quarter last year. For the first nine months of fiscal year 2019, higher revenue from Brazil was more than offset by lower revenue from operations in the US and Peru.
E & E plans to host a conference call on Tuesday, June 18, 2019, at 8:30 a.m. Eastern Time to discuss its financial results and provide a business update. Interested parties can participate in the conference call by dialing 833-715-4322 and entering code 7699815. 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.
Contact:
Sara Herrmann
Corporate Communications Manager
(716) 684-8060
sherrmann@ene.com
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| Financial Report - | | | | | |
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| (In thousands, except per share information) | | | | | |
| | | Three Months Ended | |
| | | April 27, 2019 | April 28, 2018
(Restated) | % Change | |
| | | | | | |
| Gross revenue | | $ | 21,775 | | $ | 20,677 | 5% | |
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| Revenue, net less subcontract costs | | $ | 18,783 | | $ | 18,037 | 4% | |
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| Cost of professional services and other direct operating expenses | | $ | 8,810 | | $ | 7,910 | 11% | |
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| Selling, general and administrative expenses | | $ | 10,504 | | $ | 9,949 | 6% | |
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| Income before income tax provision | | $ | (727 | ) | $ | 127 | -672% | |
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| Net income attributable to Ecology and Environment, Inc. | | $ | (1,030 | ) | $ | 69 | -1593% | |
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| Net income per common share - basic and diluted | | $ | (0.24 | ) | $ | 0.02 | -1588% | |
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| | | Nine Months Ended | |
| | | April 27, 2019 | April 28, 2018
(Restated) | % Change | |
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| Gross revenue | | $ | 63,780 | | $ | 68,071 | -6% | |
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| Revenue, net less subcontract costs | | $ | 52,595 | | $ | 54,653 | -4% | |
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| Cost of professional services and other direct operating expenses | | $ | 24,718 | | $ | 24,494 | 1% | |
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| Selling, general and administrative expenses | | $ | 29,156 | | $ | 29,213 | 0% | |
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| Income before income tax provision | | $ | (1,671 | ) | $ | 604 | -377% | |
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| Net income attributable to Ecology and Environment, Inc. | | $ | (1,459 | ) | $ | 138 | -1157% | |
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| Net income per common share - basic and diluted | | $ | (0.34 | ) | $ | 0.03 | -1154% | |
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