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Ecology and Environment, Inc., Second Quarter and Half Year Earnings Improve vs. Last Year

LANCASTER, N.Y., March 17, 2015 (GLOBE NEWSWIRE) -- Ecology and Environment, Inc., ("E & E" or the "Company") (Nasdaq:EEI) reported a consolidated net loss of $0.2 million ($0.04 per share) for the second quarter of fiscal year 2015, an improvement from a net loss of $0.8 million ($0.18 per share) reported in the second quarter of the prior year. For the first half of fiscal year 2015, the Company reported net income of $0.7 million ($0.16 per share), an improvement from the loss of $0.4 million ($0.09 per share) reported for the same period last year. Significant reductions in operating expenses were partially offset by lower operating revenues during the current quarter and during the first half of the current year.

Management is continuing to review the Company's organizational and cost infrastructure to identify areas to enhance operating and cost efficiency and effectiveness. Lower direct project expenses resulting from reduced work volumes also contributed to decreased operating expenses overall. Operating expenses (excluding subcontract costs, depreciation and amortization expenses) decreased $2.4 million (10%) during the current quarter, and decreased $4.2 million (8%) during the first half of the current year, as compared with the same periods of the prior year.

The Company acquired and developed new operating system software during fiscal year 2014, and successfully implemented the new software on schedule, effective August 1, 2014 for its U.S. operations. Amortization of software costs was 86% lower during the during the first half of the current year compared with amortization of the previous operating system recorded in the same period last year.

Lower revenues were driven by reduced project work volumes in government, energy, asbestos inspection and mining sectors in the U.S. and reduced energy sector project activity in Brazil. These reductions were partially offset by higher Department of Defense revenues in the U.S. and higher energy sector revenues from operations in Peru. Consolidated revenue less subcontract costs decreased $0.9 million (3%) for the current quarter and decreased $2.5 million or 5% during the first half of fiscal year 2015, as compared with the same periods last year.

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
January 31, 2015 January 31, 2014 % Increase
Revenue, net $ 28,162 $ 29,077 -3%
Gross Revenue less Subcontract Costs $ 23,073 $ 24,294 -5%
Total Operating Expenses (excluding subcontract costs, depreciation and amortization) $ 22,502 $ 24,865 -10%
Net Income (Loss) Attributable to Ecology and Environment, Inc. $ (152) $ (785) -81%
Net Income (Loss) Per Common Share: Basic and Diluted $ (0.04) $ (0.18) -78%
Six Months Ending
January 31, 2015 January 31, 2014 % Increase
Revenue, net $ 61,352 $ 63,827 -4%
Gross Revenue less Subcontract Costs $ 51,498 $ 54,206 -5%
Total Operating Expenses (excluding subcontract costs, depreciation and amortization) $ 48,511 $ 52,741 -8%
Net Income (Loss) Attributable to Ecology and Environment, Inc. $ 695 $ (404) -272%
Net Income (Loss) Per Common Share: Basic and Diluted $ 0.16 $ (0.09) -278%

CONTACT: Mr. Ronald L. Frank Executive Vice President (716) 684-8060 rfrank@ene.comSource:Ecology and Environment, Inc.