Ecology and Environment, Inc., Second Quarter and Six Month Earnings Down vs. Last Year

Ecology and Environment, Inc., Second Quarter and Six Month Earnings Down vs.
Last Year

LANCASTER, N.Y., March 18, 2014 (GLOBE NEWSWIRE) -- Ecology and Environment,
Inc., ("E & E" or the "Company") (Nasdaq:EEI) reported a consolidated net loss
of $0.8 million or $0.18 per share for the second quarter of fiscal year 2014,
a decrease of $2.7 million from net income of $1.9 million or $0.45 per share
reported in the second quarter of the prior year. Consolidated revenues of
$29.1 million for the current quarter decreased $7.1 million or 20% from $36.2
million reported in the second quarter of the prior year. Lower revenues
overall resulted primarily from lower revenue from projects in the Middle East
and China, for which the Company did not have any project activity during
fiscal year 2014, and from lower project work volumes in government, energy
and mining sectors within domestic and certain other foreign markets.

The Company recorded $0.6 million and $1.2 million of incremental depreciation
and amortization expense during the second quarter and first six months of
fiscal year 2014, respectively, as compared with the same periods in the prior
fiscal year, related to its decision to abandon its current operating software
system and install a new operating system by August 1, 2014. This incremental
expense does not require the outlay of cash or capital, and it not expected to
have an impact on reporting periods beyond fiscal year 2014.

For the first six months of fiscal year 2014, the Company reported a
consolidated net loss of $0.4 million or $0.09 per share, a decrease of $2.6
million from net income of $2.2 million or $0.51 per share reported in the
same period last year. Consolidated revenues of $63.8 million for the first
six months of fiscal year 2014 decreased $9.1 million or 13% compared with the
same period of the prior year.Lower revenue from projects in the Middle East
and China and lower project work volumes in government, energy and mining
sectors within domestic and certain other foreign markets contributed to the
overall decrease in revenue for the first half of the current year.

Excluding depreciation and amortization expenses, consolidated operating
expenses decreased $2.8 million or 9% during the current quarter, and
decreased $5.4 million or 8% during the first six months of the current fiscal
year, as compared with the same periods of the prior year.In addition to
lower direct project expenses associated with lower project work volumes, the
Company recorded lower administrative, marketing and other indirect operating
expenses as a result of managed workforce reductions and other cost management
initiatives undertaken during the second half of fiscal year 2013 and the
first half of fiscal year 2014.

The net loss of $0.8 million for the second quarter represented a $1.2 million
decrease from net income of $0.4 million reported for the previous quarter.A
16% drop in revenues during the second quarter, due mainly to lower project
work volumes, was partially offset by 10% lower operating expenses, as
compared with the prior quarter.

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.

Ecology and Environment, Inc.
Quarterly and Year-to-Date Financial Summary
(In thousands, except per share information)
                                                                 
                                 Three Months Ending
                                 January 31, 2014 January 31, 2013 % Increase
                                                                 
Revenue                           $29,077        $36,151        -20%
                                                                 
Revenue less Subcontract Costs    $23,482        $30,740        -24%
                                                                 
Total Operating Expenses
(excluding depreciation and       $29,360        $32,196        -9%
amortization)
                                                                 
Net Income                        $(785)         $1,911         -141%
                                                                 
Net Income Per Common Share:      $(0.18)        $0.45          -140%
Basic and Diluted
                                                                 
                                                                 
                                 Six Months Ending
                                 January 31, 2014 January 31, 2013 % Increase
                                                                 
Revenue                           $63,827        $72,973        -13%
                                                                 
Revenue less Subcontract Costs    $52,385        $60,546        -13%
                                                                 
Total Operating Expenses
(excluding depreciation and       $62,103        $67,460        -8%
amortization)
                                                                 
Net Income                        $(404)         $2,154         -119%
                                                                 
Net Income Per Common Share:      $(0.09)        $0.51          -118%
Basic and Diluted


CONTACT: Mr. Ronald L. Frank
         Executive Vice President
         (716) 684-8060
         rfrank@ene.com
 
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