Price | 15.28 | EPS | -0 | |
Shares | 4 | P/E | -38 | |
MCap | 66 | P/FCF | -123 | |
Net Debt | -10 | EBIT | -2 | |
TEV | 56 | TEV/EBIT | -35 | TTM 2019-11-02, in MM, except price, ratios |
10-Q | 2019-11-02 | Filed 2019-12-17 |
10-K | 2019-07-31 | Filed 2019-10-30 |
10-Q | 2019-04-27 | Filed 2019-06-17 |
10-Q | 2019-01-26 | Filed 2019-05-31 |
10-Q | 2018-10-27 | Filed 2019-05-31 |
10-K | 2018-07-31 | Filed 2019-05-31 |
10-Q | 2018-04-28 | Filed 2018-06-12 |
10-Q | 2018-01-27 | Filed 2018-03-13 |
10-Q | 2017-10-28 | Filed 2017-12-12 |
10-K | 2017-07-31 | Filed 2017-11-14 |
10-Q | 2017-04-29 | Filed 2017-06-13 |
10-Q | 2017-01-28 | Filed 2017-03-14 |
10-Q | 2016-10-29 | Filed 2016-12-13 |
10-K | 2016-07-31 | Filed 2016-11-15 |
10-Q | 2016-04-30 | Filed 2016-06-14 |
10-Q | 2016-01-30 | Filed 2016-03-15 |
10-Q | 2015-10-31 | Filed 2015-12-15 |
10-K | 2015-07-31 | Filed 2015-10-29 |
10-Q | 2015-05-02 | Filed 2015-06-16 |
10-Q | 2015-01-31 | Filed 2015-03-17 |
10-Q | 2014-11-01 | Filed 2014-12-16 |
10-K | 2014-07-31 | Filed 2014-10-29 |
10-Q | 2014-04-30 | Filed 2014-06-23 |
10-Q | 2014-01-31 | Filed 2014-03-17 |
10-Q | 2013-10-31 | Filed 2013-12-16 |
10-K | 2013-07-31 | Filed 2013-11-14 |
10-Q | 2013-04-30 | Filed 2013-06-21 |
10-Q | 2013-01-31 | Filed 2013-03-18 |
10-Q | 2012-10-31 | Filed 2012-12-19 |
10-K | 2012-07-31 | Filed 2012-11-14 |
10-Q | 2012-04-30 | Filed 2012-06-14 |
10-Q | 2012-01-31 | Filed 2012-03-21 |
10-Q | 2011-10-29 | Filed 2011-12-13 |
10-K | 2011-07-31 | Filed 2011-10-31 |
10-Q | 2011-04-30 | Filed 2011-06-14 |
10-Q | 2011-01-29 | Filed 2011-03-15 |
10-Q | 2010-10-30 | Filed 2010-12-14 |
10-K | 2010-07-31 | Filed 2010-10-29 |
10-Q | 2010-05-01 | Filed 2010-06-15 |
10-Q | 2010-01-30 | Filed 2010-03-16 |
8-K | 2019-12-31 | |
8-K | 2019-11-20 | |
8-K | 2019-10-16 | |
8-K | 2019-08-28 | |
8-K | 2019-07-31 | |
8-K | 2019-07-24 | |
8-K | 2019-05-28 | |
8-K | 2019-05-20 | |
8-K | 2019-05-13 | |
8-K | 2019-05-13 | |
8-K | 2019-04-11 | |
8-K | 2019-04-01 | |
8-K | 2019-03-25 | |
8-K | 2019-02-07 | |
8-K | 2019-01-14 | |
8-K | 2018-12-17 | |
8-K | 2018-12-13 | |
8-K | 2018-12-12 | |
8-K | 2018-11-14 | |
8-K | 2018-10-11 | |
8-K | 2018-09-19 | |
8-K | 2018-04-23 | |
8-K | 2018-04-13 |
Part I - Financial Information |
Item 1. Financial Statements |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 4. Controls and Procedures |
Part II - Other Information |
Item 1. Legal Proceedings |
Item 2. Changes in Securities and Use of Proceeds |
Item 3. Defaults Upon Senior Securities |
Item 4. Submission of Matters To A Vote of Security Holders |
Item 5. Other Information |
Item 6. Exhibits and Reports on Form 8 - K |
EX-31.1 | ex31_1.htm |
EX-31.2 | ex31_2.htm |
EX-32.1 | ex32_1.htm |
EX-32.2 | ex32_2.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
New York | 16-0971022 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) | |
368 Pleasant View Drive | ||
Lancaster, New York | 14086 | |
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Class A Common Stock par value $.01 per share | EEI | Nasdaq Stock Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | Smaller reporting company | ☑ |
Emerging growth company | ☐ |
Item 1. | Financial Statements |
November 2, 2019 | July 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 10,022 | $ | 13,344 | ||||
Investment securities available for sale | 1,582 | 1,577 | ||||||
Contract receivables, net | 26,123 | 25,087 | ||||||
Income tax receivable | 1,045 | 912 | ||||||
Other current assets | 2,518 | 2,078 | ||||||
Total current assets | 41,290 | 42,998 | ||||||
Property, buildings and equipment, net of accumulated depreciation of $17,193 and $17,066, respectively | 3,026 | 3,253 | ||||||
Operating lease right of use assets | 5,771 | - | ||||||
Deferred income taxes | 2,008 | 2,130 | ||||||
Equity method investment | 1,684 | 1,658 | ||||||
Other assets | 1,637 | 1,771 | ||||||
Total assets | $ | 55,416 | $ | 51,810 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,310 | $ | 6,099 | ||||
Lines of credit | 200 | 284 | ||||||
Accrued payroll costs | 6,440 | 6,661 | ||||||
Current portion of operating lease liabilities | 1,754 | - | ||||||
Current portion of long-term debt | 35 | 41 | ||||||
Customer deposits | 4,287 | 3,551 | ||||||
Other accrued liabilities | 1,146 | 1,386 | ||||||
Total current liabilities | 19,172 | 18,022 | ||||||
Operating lease liabilities | 4,041 | - | ||||||
Long-term debt | 7 | 13 | ||||||
Commitments and contingencies (Note 14) | - | - | ||||||
Shareholders' equity: | ||||||||
Preferred stock, par value $.01 per share (2,000,000 shares authorized; no shares issued) | - | - | ||||||
Class A common stock, par value $.01 per share (6,000,000 shares authorized; 3,202,047 and 3,192,990 shares issued, respectively) | 32 | 32 | ||||||
Class B common stock, par value $.01 per share; (10,000,000 shares authorized; 1,191,678 and 1,200,735 shares issued, respectively) | 12 | 12 | ||||||
Capital in excess of par value | 16,998 | 16,964 | ||||||
Retained earnings | 17,160 | 18,687 | ||||||
Accumulated other comprehensive loss | (2,273 | ) | (2,098 | ) | ||||
Treasury stock, at cost (Class A common stock: 63,724 and 64,823 shares, respectively) | (729 | ) | (729 | ) | ||||
Total Ecology and Environment Inc. shareholders' equity | 31,200 | 32,868 | ||||||
Noncontrolling interests | 996 | 907 | ||||||
Total shareholders' equity | 32,196 | 33,775 | ||||||
Total liabilities and shareholders' equity | $ | 55,416 | $ | 51,810 |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
Gross revenue | $ | 22,213 | $ | 21,752 | ||||
Cost of professional services and other direct operating expenses | 9,543 | 8,134 | ||||||
Subcontract costs | 3,472 | 4,574 | ||||||
Selling, general and administrative expenses | 10,715 | 9,200 | ||||||
Depreciation and amortization | 234 | 277 | ||||||
Loss from operations | (1,751 | ) | (433 | ) | ||||
Income from equity method investment | 79 | 60 | ||||||
Net interest income | 59 | 54 | ||||||
Net foreign exchange gain | 1 | 23 | ||||||
Other income | 18 | 26 | ||||||
Loss before income tax benefit | (1,594 | ) | (270 | ) | ||||
Income tax benefit | (194 | ) | (155 | ) | ||||
Net loss | (1,400 | ) | (115 | ) | ||||
Net income attributable to noncontrolling interests | (127 | ) | (5 | ) | ||||
Net loss attributable to Ecology and Environment Inc. | $ | (1,527 | ) | $ | (120 | ) | ||
Net loss per common share: basic and diluted | $ | (0.35 | ) | $ | (0.03 | ) | ||
Weighted average common shares outstanding: basic and diluted | 4,329,858 | 4,313,930 |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
Net loss including noncontrolling interests | $ | (1,400 | ) | $ | (115 | ) | ||
Foreign currency translation adjustments | (214 | ) | (127 | ) | ||||
Comprehensive loss | (1,614 | ) | (242 | ) | ||||
Comprehensive (income) loss attributable to noncontrolling interests | (88 | ) | 55 | |||||
Comprehensive loss attributable to Ecology and Environment Inc. | $ | (1,702 | ) | $ | (187 | ) |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (1,400 | ) | $ | (115 | ) | ||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 234 | 277 | ||||||
Deferred income tax provision | 31 | 32 | ||||||
Share based compensation expense | 34 | 153 | ||||||
Gain on sale of assets and investment securities | - | (1 | ) | |||||
Net (recovery) provision for contract adjustments | (104 | ) | 23 | |||||
Net bad debt expense (recovery) | 94 | (19 | ) | |||||
Changes in: | ||||||||
- contract receivables | (1,300 | ) | (1,204 | ) | ||||
- other current assets | (490 | ) | (945 | ) | ||||
- income tax receivable | (114 | ) | 84 | |||||
- equity method investment | (79 | ) | (60 | ) | ||||
- operating lease right of use assets | (5,771 | ) | - | |||||
- other non-current assets | 121 | 282 | ||||||
- accounts payable | 123 | 1,999 | ||||||
- accrued payroll costs | (163 | ) | (624 | ) | ||||
- income taxes payable | - | 3 | ||||||
- current portion of operating lease liabilities | 1,754 | - | ||||||
- contract liabilities | 790 | 226 | ||||||
- operating lease liabilities | 4,041 | - | ||||||
- other accrued liabilities | (201 | ) | 43 | |||||
Net cash (used in) provided by operating activities | (2,400 | ) | 154 | |||||
Cash flows from investing activities: | ||||||||
Purchase of property, buildings and equipment | (76 | ) | (140 | ) | ||||
Proceeds from sale of property, buildings and equipment | 35 | 2 | ||||||
Purchase of investment securities | (8 | ) | (41 | ) | ||||
Net cash used in investing activities | (49 | ) | (179 | ) | ||||
Cash flows from financing activities: | ||||||||
Dividends paid | (865 | ) | (863 | ) | ||||
Repayment of long-term debt and capital lease obligations | (9 | ) | (15 | ) | ||||
Net (repayments) borrowings under lines of credit | (62 | ) | 1 | |||||
Distributions to noncontrolling interests | (6 | ) | (4 | ) | ||||
Net cash used in financing activities | (942 | ) | (881 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 59 | 35 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (3,332 | ) | (871 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 13,592 | 13,746 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 10,260 | $ | 12,875 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | - | $ | 4 | ||||
Income taxes | 57 | 30 | ||||||
Supplemental disclosure of non-cash items: | ||||||||
Acquisition of noncontrolling interest of subsidiaries | (7 | ) | - |
1. | Organization and Basis of Presentation |
2. | Recent Accounting Pronouncements |
3. | Agreement and Plan of Merger |
4. | Cash, Cash Equivalents and Restricted Cash |
November 2, 2019 | July 31, 2019 | |||||||
(in thousands) | ||||||||
Cash and cash equivalents | $ | 10,022 | $ | 13,344 | ||||
Restricted cash (included in other assets) | 238 | 248 | ||||||
Total cash, cash equivalents and restricted cash | $ | 10,260 | $ | 13,592 |
5. | Fair Value of Financial Instruments |
6. | Revenue and Contract Receivables, net |
November 2, 2019 | July 31, 2019 | |||||||
(in thousands) | ||||||||
Contract Receivables: | ||||||||
Billed | $ | 12,437 | $ | 12,405 | ||||
Unbilled | 14,708 | 13,686 | ||||||
Total contract receivables | 27,145 | 26,091 | ||||||
Allowance for doubtful accounts | (1,022 | ) | (1,004 | ) | ||||
Contract receivables, net | $ | 26,123 | $ | 25,087 |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
(in thousands) | ||||||||
Balance at beginning of period | $ | 1,004 | $ | 1,284 | ||||
Provision for doubtful accounts during the period | 97 | 27 | ||||||
Write-offs and recoveries of allowance recorded in prior periods | (79 | ) | (11 | ) | ||||
Balance at end of period | $ | 1,022 | $ | 1,300 |
November 2, 2019 | July 31, 2019 | |||||||||||||||
Total Billed and Unbilled Contract Receivables | Allowance for Doubtful Accounts | Total Billed and Unbilled Contract Receivables | Allowance for Doubtful Accounts | |||||||||||||
(in thousands) | ||||||||||||||||
U.S. operations | $ | 21,121 | $ | 528 | $ | 20,211 | $ | 489 | ||||||||
South American operations | 6,024 | 494 | 5,880 | 515 | ||||||||||||
Totals | $ | 27,145 | $ | 1,022 | $ | 26,091 | $ | 1,004 |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
Gross revenue from time and materials contracts: | ||||||||
U.S. operations | $ | 9,965 | $ | 9,257 | ||||
South American operations | 40 | - | ||||||
Total gross revenue from time and materials contracts | $ | 10,005 | $ | 9,257 | ||||
Gross revenue from fixed price contracts: | ||||||||
U.S. operations | $ | 3,650 | $ | 3,612 | ||||
South American operations | 4,395 | 3,741 | ||||||
Total gross revenue from fixed price contracts | $ | 8,045 | $ | 7,353 | ||||
Gross revenue from cost-plus contracts: | ||||||||
U.S. operations | $ | 4,163 | $ | 5,142 | ||||
South American operations | - | - | ||||||
Total gross revenue from cost-plus contracts | $ | 4,163 | $ | 5,142 | ||||
Gross revenue from all contracts: | ||||||||
U.S. operations | $ | 17,778 | $ | 18,011 | ||||
South American operations | 4,435 | 3,741 | ||||||
Consolidated gross revenue | $ | 22,213 | $ | 21,752 |
7. | Variable Interest Entities and Equity Method Investment |
November 2, 2019 | July 31, 2019 | |||||||
(in thousands) | ||||||||
Current assets | $ | 3,226 | $ | 3,549 | ||||
Noncurrent assets | 1,952 | 781 | ||||||
Total assets | $ | 5,178 | $ | 4,330 | ||||
Current liabilities | $ | 5,246 | $ | 5,728 | ||||
Noncurrent liabilities | 7 | 12 | ||||||
Total liabilities | 5,253 | 5,740 | ||||||
Total Ecology and Environment Inc. shareholder’s equity | 253 | (708 | ) | |||||
Noncontrolling interests shareholders’ equity | (328 | ) | (702 | ) | ||||
Total shareholders’ equity | (75 | ) | (1,410 | ) | ||||
Total liabilities and shareholders’ equity | $ | 5,178 | $ | 4,330 |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
(in thousands) | ||||||||
Equity investment carrying value at beginning of period | $ | 1,658 | $ | 2,058 | ||||
Equity investee net income attributable to EEI | 79 | 60 | ||||||
EEI’s portion of other comprehensive loss recorded by the equity investee | (53 | ) | --- | |||||
Equity investment carrying value at end of period | $ | 1,684 | $ | 2,118 |
November 2, 2019 | July 31, 2019 | |||||||
(in thousands) | ||||||||
Current assets | $ | 5,233 | $ | 5,671 | ||||
Noncurrent assets | 1,173 | 1,215 | ||||||
Total assets | $ | 6,406 | $ | 6,886 | ||||
Current liabilities | $ | 2,758 | $ | 3,232 | ||||
Noncurrent liabilities | 793 | 847 | ||||||
Total liabilities | 3,551 | 4,079 | ||||||
Total Ecology and Environment Inc. shareholder’s equity | 1,830 | 1,806 | ||||||
Noncontrolling interests shareholders’ equity | 1,025 | 1,001 | ||||||
Total shareholders’ equity | 2,855 | 2,807 | ||||||
Total liabilities and shareholders’ equity | $ | 6,406 | $ | 6,886 |
Three Months Ended | ||||||||
November 2, 2019 | July 31, 2019 | |||||||
(in thousands) | ||||||||
Gross revenue | $ | 2,892 | $ | 2,852 | ||||
Direct cost of services and subcontract costs | 1,829 | 1,974 | ||||||
Income from operations | 229 | 157 | ||||||
Net income | 151 | 109 | ||||||
Net income attributable to EEI | 79 | 60 |
8. | Lines of Credit |
November 2, 2019 | July 31, 2019 | |||||||
(in thousands) | ||||||||
Outstanding cash advances reported as lines of credit | $ | 200 | $ | 284 | ||||
Outstanding letters of credit | 1,338 | 1,635 | ||||||
Total amounts used under lines of credit | 1,538 | 1,919 | ||||||
Remaining amounts available under lines of credit | 34,311 | 34,015 | ||||||
Total unsecured lines of credit | $ | 35,849 | $ | 35,934 |
• | $19.0 million available line of credit at November 2, 2019 and July 31, 209; no outstanding cash advances at November 2, 2019 or July 31, 2019; letters of credit of less than $0.1 million were outstanding at November 2, 2019 and July 31, 2019; interest rate based on LIBOR plus 275 basis points; and |
• | $13.5 million available line of credit at November 2, 2019 and July 31, 2019; no outstanding cash advances at November 2, 2019 or July 31, 2019; letters of credit of less than $0.1 million outstanding at November 2, 2019 and July 31, 2019; interest rate based on LIBOR plus 200 basis points. |
• | $2.0 million available line of credit at November 2, 2019 and July 31, 2019 to support operations in Peru; outstanding cash advances of $0.2 million and zero at November 2, 2019 and July 31, 2019, respectively; letters of credit of $0.7 million and $1.0 million were outstanding at November 2, 2019 and July 31, 2019, respectively; interest rate is affirmed by or negotiated with the lender annually; and |
• | $1.3 and $1.4 million available line of credit at November 2, 2019 and July 31, 2019, respectively to support operations in Brazil; outstanding cash advances of zero and $0.3 million at November 2, 2019 and July 31, 2019, respectively; letters of credit of $0.6 million were outstanding at November 2, 2019 and July 31, 2019; interest rate based on a Brazilian government economic index. |
9. | Leases |
As Of November 2, 2019 | ||||
Weighted-average remaining lease term (in years) | 2.56 | |||
Weighted average discount rate | 5.17 | % |
As Of November 2, 2019 | ||||
(in thousands) | ||||
Right of use assets (included in non-current assets) | $ | 5,771 | ||
Lease liabilities: | ||||
Current | $ | 1,754 | ||
Non-current | 4,041 | |||
Total lease liabilities | $ | 5,795 |
Fiscal Year Ending July 31 | As Of November 2, 2019 | |||
(in thousands) | ||||
Remainder of fiscal year 2020 | $ | 1,610 | ||
2021 | 1,880 | |||
2022 | 1,384 | |||
2023 | 928 | |||
2024 | 453 | |||
Thereafter | 59 | |||
Total undiscounted lease payments | 6,314 | |||
Less: imputed interest | (519 | ) | ||
Present value of lease liabilities | $ | 5,795 |
10. | Income Taxes |
• | Continued application of unfavorable permanent tax adjustments pertaining to global low-taxed intangible income in the U.S. resulting from tax reform legislation enacted during fiscal year 2018; and |
• | Income from operations in Peru are not taxed in the Company’s tax provision due to a valuation allowance recorded against deferred tax assets. |
11. | Shareholders' Equity |
Three Months Ended November 2, 2019 | ||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Accumulated Income (Loss) | Treasury Stock | Noncontrolling Interests | ||||||||||||||||||||||
Balance at July 31, 2019 | 32 | 12 | 16,964 | 18,687 | (2,098 | ) | (729 | ) | 907 | |||||||||||||||||||
Net (loss) income | - | - | - | (1,527 | ) | - | - | 127 | ||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | (175 | ) | - | (39 | ) | |||||||||||||||||||
Share-based compensation expense | - | - | 34 | - | - | - | - | |||||||||||||||||||||
Distributions to noncontrolling interests | - | - | - | - | - | - | (6 | ) | ||||||||||||||||||||
Purchase of additional noncontrolling interests | 7 | |||||||||||||||||||||||||||
Balance at November 2, 2019 | $ | 32 | $ | 12 | $ | 16,998 | $ | 17,160 | $ | (2,273 | ) | $ | (729 | ) | $ | 996 |
Class A Common Stock | Class B Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Accumulated Income (Loss) | Treasury Stock | Noncontrolling Interests | ||||||||||||||||||||||
Balance at July 31, 2018 | $ | 30 | $ | 14 | $ | 17,558 | $ | 20,973 | $ | (1,885 | ) | $ | (907 | ) | $ | 664 | ||||||||||||
Cumulative effect of adoption of ASU 2016-01 | - | - | - | (5 | ) | 5 | - | - | ||||||||||||||||||||
Balance at July 31, 2018 (Adjusted) | 30 | 14 | 17,558 | 20,968 | (1,880 | ) | (907 | ) | 664 | |||||||||||||||||||
Net (loss) income | - | - | - | (120 | ) | - | - | 5 | ||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | (67 | ) | - | (60 | ) | |||||||||||||||||||
Conversion of Class B common stock to Class A common stock | 1 | (1 | ) | - | - | - | - | - | ||||||||||||||||||||
Issuance of stock under stock award plan | - | - | 4 | - | - | 23 | - | |||||||||||||||||||||
Share-based compensation expense | - | - | 33 | - | - | - | - | |||||||||||||||||||||
Distributions to noncontrolling interests | - | - | - | - | - | - | (4 | ) | ||||||||||||||||||||
Balance at October 27, 2018 | $ | 31 | $ | 13 | $ | 17,595 | $ | 20,848 | $ | (1,947 | ) | $ | (884 | ) | $ | 605 |
12. | Earnings Per Share |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
(in thousands, except share and per share amounts) | ||||||||
Net loss attributable to Ecology and Environment Inc. | $ | (1,527 | ) | $ | (120 | ) | ||
Dividends declared | --- | --- | ||||||
Balance at end of period | $ | (1,527 | ) | $ | (120 | ) | ||
Weighted-average common shares outstanding - basic and diluted | 4,329,858 | 4,313,930 | ||||||
Distributed earnings per share - basic and diluted | $ | --- | $ | --- | ||||
Undistributed (losses) earnings per share - basic and diluted | (0.35 | ) | (0.03 | ) | ||||
Net income per common share - basic and diluted | $ | (0.35 | ) | $ | (0.03 | ) |
13. | Segment Reporting |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
(in thousands) | ||||||||
Gross revenue: | ||||||||
U.S. operations | $ | 17,778 | $ | 18,011 | ||||
South American operations | 4,435 | 3,741 | ||||||
Total | $ | 22,213 | $ | 21,752 |
Net income (loss) attributable to EEI: | ||||||||
U.S. operations (a) | $ | (1,669 | ) | $ | (107 | ) | ||
South American operations (b) | 142 | (13 | ) | |||||
Total | $ | (1,527 | ) | $ | (120 | ) |
(a) | Includes depreciation and amortization expense of $0.1 million and $0.2 million for the three months ended November 2, 2019 and October 27, 2018, respectively. |
(b) | Includes depreciation and amortization expense of $0.1 million for the three months ended November 2, 2019 and October 27, 2018. |
November 2, 2019 | July 31, 2019 | |||||||
(in thousands) | ||||||||
Total assets: | ||||||||
U.S. operations | $ | 47,478 | $ | 43,842 | ||||
South American operations | 7,938 | 7,968 | ||||||
Total | $ | 55,416 | $ | 51,810 |
14. | Commitments and Contingencies |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Name | Percentage of Subsidiary Capital Stock Owned by the Company | Operating Segment | ||||
Consolidated Subsidiaries: | ||||||
Ecology & Environment Engineering, Inc. | 100.00 | % | United States | |||
Walsh Environmental, LLC | 100.00 | % | United States | |||
Gustavson Associates, LLC | 83.60 | % | United States | |||
Walsh Peru, S.A. Ingenieros y Cientificos Consultores (“Walsh Peru”) | 74.78 | % | South America | |||
ecology and environment do brasil Ltda. (“E&E Brazil”) | 72.00 | % | South America | |||
Majority-Owned Equity Investment (a): | ||||||
Gestión Ambiental Consultores S.A. (“GAC”) | 52.48 | % | South America |
Three Months Ended | ||||||||||||||||
November 2, 2019 | October 27, 2018 | $ Change | % Change | |||||||||||||
($ in thousands) | ||||||||||||||||
U.S. operations: | ||||||||||||||||
Gross revenue | $ | 17,778 | $ | 18,011 | $ | (233 | ) | (1 | )% | |||||||
Gross revenue less subcontract costs | 15,096 | 14,200 | 896 | 6 | % | |||||||||||
Direct cost of professional services and other direct operating expenses | 7,553 | 6,496 | 1,057 | 16 | % | |||||||||||
Gross margin | 7,543 | 7,704 | (161 | ) | (2 | )% | ||||||||||
Selling, general and administrative expenses | 9,197 | 7,836 | 1,361 | 17 | % | |||||||||||
Net income (loss) attributable to EEI | (1,669 | ) | (107 | ) | (1,562 | ) | | (a) | % | |||||||
South American operations: | ||||||||||||||||
Gross revenue | $ | 4,435 | $ | 3,741 | $ | 694 | 19 | % | ||||||||
Gross revenue less subcontract costs | 3,645 | 2,978 | 667 | 22 | % | |||||||||||
Direct cost of professional services and other direct operating expenses | 1,990 | 1,638 | 352 | 21 | % | |||||||||||
Gross margin | 1,655 | 1,340 | 315 | 24 | % | |||||||||||
Selling, general and administrative expenses | 1,518 | 1,364 | 154 | 11 | % | |||||||||||
Income from equity method investment | 79 | 60 | 19 | 32 | % | |||||||||||
Net income (loss) attributable to EEI | 142 | (13 | ) | 155 | | (a) | % | |||||||||
Consolidated totals: | ||||||||||||||||
Gross revenue | $ | 22,213 | $ | 21,752 | $ | 461 | 2 | % | ||||||||
Gross revenue less subcontract costs | 18,741 | 17,178 | 1,563 | 9 | % | |||||||||||
Direct cost of professional services and other direct operating expenses | 9,543 | 8,134 | 1,409 | 17 | % | |||||||||||
Gross margin | 9,198 | 9,044 | 154 | 2 | % | |||||||||||
Selling, general and administrative expenses | 10,715 | 9,200 | 1,515 | 16 | % | |||||||||||
Income from equity method investment | 79 | 60 | 19 | 32 | % | |||||||||||
Net income (loss) attributable to EEI | (1,527 | ) | (120 | ) | (1,407 | ) | | (a) | % |
(a) | percentage change not relevant due to relatively immaterial amounts reported for three months ended October 27, 2018. |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
Gross revenue from time and materials contracts: | ||||||||
U.S. operations | $ | 9,965 | $ | 9,257 | ||||
South American operations | 40 | - | ||||||
Total gross revenue from time and materials contracts | $ | 10,005 | $ | 9,257 | ||||
Gross revenue from fixed price contracts: | ||||||||
U.S. operations | $ | 3,650 | $ | 3,612 | ||||
South American operations | 4,395 | 3,741 | ||||||
Total gross revenue from fixed price contracts | $ | 8,045 | $ | 7,353 | ||||
Gross revenue from cost-plus contracts: | ||||||||
U.S. operations | $ | 4,163 | $ | 5,142 | ||||
South American operations | - | - | ||||||
Total gross revenue from cost-plus contracts | $ | 4,163 | $ | 5,142 | ||||
Gross revenue from all contracts: | ||||||||
U.S. operations | $ | 17,778 | $ | 18,011 | ||||
South American operations | 4,435 | 3,741 | ||||||
Consolidated gross revenue | $ | 22,213 | $ | 21,752 |
Three Months Ended | ||||||||||||||||
Operating Segment | November 2, 2019 | October 27, 2018 | $ Change | % Change | ||||||||||||
U.S. operations | $ | 15,096 | $ | 14,200 | $ | 896 | 6 | % | ||||||||
South American operations: | ||||||||||||||||
Peru | 1,167 | 912 | 255 | 28 | % | |||||||||||
Brazil | 2,478 | 2,028 | 450 | 22 | % | |||||||||||
Other | --- | 38 | (38 | ) | --- | (a) | ||||||||||
Total South American operations | 3,645 | 2,978 | 667 | 22 | % | |||||||||||
Consolidated gross revenue less subcontract costs | $ | 18,741 | $ | 17,178 | $ | 1,563 | 9 | % |
(a) | Percent change is not relevant because of the relatively immaterial amounts for all periods presented. |
Three Months Ended | ||||||||||||||||
Operating Segment | November 2, 2019 | October 27, 2018 | $ Change | % Change | ||||||||||||
($ in thousands) | ||||||||||||||||
U.S. operations | $ | 7,553 | $ | 6,496 | $ | 1,057 | 16 | % | ||||||||
South American operations: | ||||||||||||||||
Peru | 410 | 400 | 10 | 3 | % | |||||||||||
Brazil | 1,580 | 1,225 | 355 | 29 | % | |||||||||||
Other | --- | 13 | (13 | ) | --- | (a) | ||||||||||
Total South American operations | 1,990 | 1,638 | 352 | 21 | % | |||||||||||
Consolidated cost of professional services and other direct operating expenses | $ | 9,543 | $ | 8,134 | $ | 1,409 | 17 | % |
(a) | Percent change is not relevant because of the relatively immaterial amounts for all periods presented. |
Three Months Ended | ||||||||||||||||
Operating Segment | November 2, 2019 | October 27, 2018 | $ Change | % Change | ||||||||||||
($ in thousands) | ||||||||||||||||
U.S. operations | $ | 9,197 | $ | 7,836 | $ | 1,361 | 17 | % | ||||||||
South American operations: | ||||||||||||||||
Peru | 660 | 665 | (5 | ) | (1 | )% | ||||||||||
Brazil | 858 | 669 | 189 | 28 | % | |||||||||||
Other | --- | 30 | (30 | ) | --- | (a) | ||||||||||
Total South American operations | 1,518 | 1,364 | 154 | 11 | % | |||||||||||
Consolidated selling, general and administrative expenses | $ | 10,715 | $ | 9,200 | $ | 1,515 | 16 | % |
(a) | Percent change is not relevant because of the relatively immaterial amounts for all periods presented. |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
(in thousands) | ||||||||
Equity investment carrying value at beginning of period | $ | 1,658 | $ | 2,058 | ||||
GAC net income attributable to EEI | 79 | 60 | ||||||
EEI’s portion of other comprehensive income recorded by GAC | (53 | ) | --- | |||||
Equity investment carrying value at end of period | $ | 1,684 | $ | 2,118 |
Three Months Ended | ||||||||
November 2, 2019 | October 27, 2018 | |||||||
(in thousands) | ||||||||
Gross revenue | $ | 2,892 | $ | 2,852 | ||||
Direct cost of services and subcontract costs | 1,829 | 1,974 | ||||||
Income from operations | 229 | 157 | ||||||
Net income | 151 | 109 | ||||||
Net income attributable to EEI | 79 | 60 |
• | Continued application of unfavorable permanent tax adjustments pertaining to global low-taxed intangible income in the U.S. resulting from tax reform legislation enacted during fiscal year 2018; and |
• | Income from operations in Peru are not taxed in the Company’s tax provision due to a valuation allowance recorded against deferred tax assets. |
• | Taxable income from operations in Brazil which are taxed at a 34% rate, which is higher that the U.S. statutory federal rate. |