BUFFALO, N.Y., June 17, 2009 (GLOBE NEWSWIRE) -- HIGHLIGHTS - Ecology and Environment, Inc., (Nasdaq:EEI) reported revenues for the third quarter ended May 2 of fiscal year 2009, of $38.0 million, up 39% from the $27.4 million reported in the prior year. Net income for the third quarter of fiscal year 2009 was $1.7 million or $.44 per share ($.43 per share diluted), compared to net income of $123,000 or $.03 per share in the third quarter of fiscal year 2008. The third quarter of fiscal year 2009 includes a net gain of $.25 attributable to the favorable tax settlement in Kuwait, net of an additional charge to fully reserve the balance of accounts receivable from the Middle East work. Excluding this $.25 per share gain, the current quarter's earnings increased to $.19 per share from $.03 per share in the third quarter of the prior year.
DETAILS - E & E reported an increase of $10.6 million in revenue during the third quarter of fiscal year 2009 compared to the third quarter of the prior year. The increase in revenue was attributable to increased work in the Company's energy, environmental restoration, and federal government sectors. "We strongly believe in sustainability throughout our organization and in our financials," said President and CEO, Kevin Neumaier. At the end of the quarter, the company had cash of $13.5 million with debt of only $.7 million and available lines of credit of $37.6 million. The Company's book value was $40.3 million or $9.86 per share. In April 2009, the Company declared a dividend of $.20 per share to shareholders of both Class A and Class B common stock, which represents the 47th consecutive dividend since the Company became public in 1987 and the 14th increase in 22 years.
E & E took a step forward in Kuwait, settling the tax dispute and the related FIN 48 charges. As a result, the Company has released the remaining accrual of approximately $1.4 million (net of deferred tax) by reducing the current quarter's income tax provision by $850,000 and reducing interest expense and general and administrative costs each by $275,000. In addition the Company has recorded a charge during the quarter in the amount of $925,000 to reserve the balance of accounts receivable from the work performed in the Middle East. The net impact of these actions results in a gain of approximately $.25 per share for the third quarter of fiscal year 2009. "In addition to bolstering third quarter earnings, this resolution removes most of the FIN 48 issue that we have had in previous quarters," says Neumaier. "Over the past two years, this matter with Kuwait has resulted in over 90% of our FIN 48 charges against earnings, and we are happy to take this step forward."
Ecology and Environment has completed over 45,000 projects for a wide variety of clients in 84 countries, providing environmental solutions in nearly every ecosystem on our planet. Ecology and Environment is listed on the NASDAQ under the symbol EEI and is located on the web at www.ene.com.
Financial Report -
(In thousands, except per share information)
Three Months Ending
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May 2, 2009 April 26, 2008
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Revenue $ 38,016 $ 27,413
Net Income $ 1,721 $ 123
Net Income Per Common Share: Basic $ 0.44 $ 0.03
Net Income Per Common Share: Diluted $ 0.43 $ 0.03
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Fiscal Year Ending
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May 2, 2009 April 26, 2008
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Revenue $ 105,777 $ 77,138
Net Income $ 4,162 $ 754
Net Income Per Common Share: Basic $ 1.04 $ 0.18
Net Income Per Common Share: Diluted $ 1.02 $ 0.18