Middle East contracts improve Ecology and Environment earnings
The New York based Ecology and Environment, Inc. (E&E), an environmental consulting, testing, engineering and design firm, reported net revenues for the second quarter of fiscal year 2003 were $21.7 million, up 19 percent from the $18.2 million reported in the second quarter of fiscal year 2002.
Executive Vice President and Chief Financial Officer Ronald L. Frank attributed the increase in net revenues for the second quarter to the company's contracts in Saudi Arabia and Kuwait. These contracts reported net revenues for the second quarter of fiscal year 2003 of five million dollars.
The company cannot determine what impact the current turmoil in the Middle East will have on its' interests there. At this time it is not anticipated that these events would have a significant impact on the company's long-term revenue and earnings.
Net income for the quarter was $431,000 or $.11 per share, up 168 percent from the $161,000 or $.04 per share reported in the prior year. The company also reported an increase in net revenues from various commercial and US Department of Defense (DOD) clients. The company reported commercial net revenues for the second quarter of fiscal year 2003 of $3.6 million, up 90 percent from the $1.9 million reported in the second quarter of fiscal year 2002.
Net revenues reported for DOD clients were $3.4 million for the second quarter of fiscal year 2003, up 18 percent from the $2.9 million reported in the second quarter of fiscal year 2003. Offsetting these increases was a decrease in the company's US Environmental Protection Agency (USEPA) Contracts.
During the second quarter of fiscal year 2003, these USEPA contracts reported net revenues of $2.4 million, down 25 percent from the $3.2 million reported in the second quarter of fiscal year 2002. The reduction is due to a general slowdown on these contracts compared to the 9/11 incidents and anthrax sampling of last year.
Frank attributes the increase in net income primarily to reduced operating costs and a substantial increase in higher margin work. Management has continued to take steps to further improve corporate efficiencies and control operating costs.
The company's Shrimp Farm operation, based in Costa Rica, reported a net loss for the second quarter of fiscal year 2003 of $446,000 compared to a net loss of $343,000 reported in the second quarter of fiscal year 2002.
Though additional harvests were completed during the second quarter, they were part of the prior years stocking, which resulted in reduced yields due to the white spot virus. The company has begun restocking the farm with the advent of the hot summer season and no sign of the virus present. These warm temperatures should help reduce the effect of the white spot virus.
Founded in 1970, E&E operates from 27 US offices and subsidiaries and affiliates around the world. It employs over 75 separate disciplines, embracing the physical, biological, social and health sciences. Its underlying philosophy is a worldwide commitment to supporting sustainable development through responsible environmental stewardship. — (menareport.com)
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