LANCASTER, N.Y., June 14, 2017 – Ecology and Environment, Inc., (“E & E” or the “Company”) (NASDAQ: EEI) reported earnings of $0.19 per share for the nine months ended April 29, 2017, an increase of 138% from earnings of $0.08 per share reported for the same period of the prior year. A significantly reduced effective tax rate associated with South American operations and lower operating expenses in the U.S. and South America more than offset reductions in domestic and foreign revenues during the first nine months of fiscal year 2017.
Management has continued to improve efficiency and reduce costs throughout the Company’s domestic and foreign operations. These ongoing initiatives have offset the impact of global economic trends affecting oil, natural gas, and other commodity prices in E & E’s major markets, trends that continue to negatively affect project activity and revenues within the Company’s U.S. and South American operations.
Quarterly earnings improved by 50% to net income of $0.06 per share for the third quarter of fiscal year 2017 from net income of $0.04 per share for the third quarter of the prior year, as lower operating expenses more than offset lower revenues. During the most recent quarter, the Company also recorded a net $0.6 million non-recurring legal and consulting expense associated with a contested election of directors that was settled amicably prior to the Company’s Annual Meeting of Shareholders held in April 2017.
“We are pleased to report meaningfully improved earnings results in the quarter and remain vigilant about expense control and operating efficiency as our markets remain highly competitive,” said newly appointed Chairman Marshall Heinberg. “I am excited to join the Board of this outstanding company and look forward to working with the entire Board and Management to seek avenues of profitable growth in new and existing market segments.”
“Our improved quarterly results reflect ongoing strategic efforts to build a stronger and more efficient company,” said E & E president and CEO Gerard A. Gallagher III. “Our new directors are bringing valuable experience and fresh perspectives to the Board and we look forward to working together to implement E & E’s growth strategy and increase shareholder value.”
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.