Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
2-May-15 | Jun. 01, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | ECOLOGY & ENVIRONMENT INC | |
Entity Central Index Key | 809933 | |
Current Fiscal Year End Date | -24 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 2-May-15 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,665,858 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,621,197 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | 2-May-15 | Jul. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $5,420,566 | $6,889,243 |
Investment securities available for sale | 1,430,554 | 1,407,277 |
Contract receivables, net of allowance for doubtful accounts and contract adjustments of $5,906,452 and $6,126,854, respectively | 41,698,596 | 44,431,305 |
Deferred income taxes | 4,673,625 | 4,534,437 |
Income tax receivable | 136,178 | 1,107,983 |
Other current assets | 1,678,085 | 1,589,646 |
Total current assets | 55,037,604 | 59,959,891 |
Property, building and equipment, net of accumulated depreciation of $25,168,535 and $28,615,915, respectively | 7,424,155 | 7,941,455 |
Deferred income taxes | 1,867,940 | 1,865,798 |
Other assets | 1,922,219 | 1,941,178 |
Total assets | 66,251,918 | 71,708,322 |
Current liabilities: | ||
Accounts payable | 6,952,656 | 9,874,649 |
Lines of credit | 1,495,701 | 1,572,466 |
Accrued payroll costs | 6,515,731 | 7,650,077 |
Current portion of long-term debt and capital lease obligations | 561,025 | 420,737 |
Billings in excess of revenue | 4,249,140 | 5,003,413 |
Deferred income taxes | 272,133 | 0 |
Other accrued liabilities | 3,775,905 | 4,235,262 |
Total current liabilities | 23,822,291 | 28,756,604 |
Deferred income taxes | 368,873 | 631,083 |
Income taxes payable | 107,035 | 107,035 |
Long-term debt and capital lease obligations | 444,528 | 421,769 |
Commitments and contingencies (Note 16) | ||
Shareholders' equity: | ||
Preferred stock, par value $.01 per share (2,000,000 shares authorized; no shares issued) | 0 | 0 |
Capital in excess of par value | 16,988,667 | 17,124,339 |
Retained earnings | 23,372,509 | 21,916,575 |
Accumulated other comprehensive loss | -1,337,666 | -182,735 |
Treasury stock, at cost (Class A common: 41,869 and 40,553 shares; Class B common: 64,801 shares) | -1,223,899 | -1,223,899 |
Total Ecology and Environment, Inc. shareholders' equity | 37,843,549 | 37,678,218 |
Noncontrolling interests | 3,665,642 | 4,113,613 |
Total shareholders' equity | 41,509,191 | 41,791,831 |
Total liabilities and shareholders' equity | 66,251,918 | 71,708,322 |
Class A [Member] | ||
Shareholders' equity: | ||
Common stock | 27,077 | 26,851 |
Class B [Member] | ||
Shareholders' equity: | ||
Common stock | $16,861 | $17,087 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | 2-May-15 | Jul. 31, 2014 |
Assets | ||
Contract receivables, allowance for doubtful accounts and contract adjustments | $5,906,452 | $6,126,854 |
Property, building and equipment, accumulated depreciation | $25,168,535 | $28,615,915 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Class A [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 6,000,000 | 6,000,000 |
Common stock, issued (in shares) | 2,707,727 | 2,707,727 |
Treasury stock (in shares) | 41,869 | 40,553 |
Class B [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 1,685,998 | 1,685,998 |
Treasury stock (in shares) | 64,801 | 64,801 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statement of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
2-May-15 | Apr. 30, 2014 | 2-May-15 | Apr. 30, 2014 | |
Condensed Consolidated Statement of Operations (Unaudited) [Abstract] | ||||
Revenue, net | $30,344,571 | $31,503,899 | $91,696,883 | $95,330,462 |
Cost of professional services and other direct operating expenses | 11,506,854 | 11,768,467 | 35,453,764 | 37,018,639 |
Subcontract costs | 4,837,691 | 4,947,772 | 15,422,214 | 14,259,290 |
Administrative and indirect operating expenses | 7,968,329 | 10,206,247 | 26,010,879 | 31,244,612 |
Marketing and related costs | 2,539,313 | 3,446,837 | 8,742,546 | 9,949,290 |
Depreciation and amortization | 360,964 | 1,036,010 | 1,125,326 | 3,138,502 |
Income (loss) from operations | 3,131,420 | 98,566 | 4,942,154 | -279,871 |
Interest income | 22,529 | 38,938 | 57,135 | 125,177 |
Interest expense | -42,395 | -31,912 | -97,267 | -126,623 |
Gain on sale of assets and investment securities | 24,539 | 0 | 176,624 | 0 |
Net foreign exchange gain (loss) | 55,825 | -23,971 | 182,871 | -21,481 |
Other (expense) income | -8,713 | -30,585 | 68,895 | 119,075 |
Income (loss) before income tax provision (benefit) | 3,183,205 | 51,036 | 5,330,412 | -183,723 |
Income tax provision (benefit) | 1,280,081 | 57,624 | 2,219,086 | -48,542 |
Net income (loss) | 1,903,124 | -6,588 | 3,111,326 | -135,181 |
Net income attributable to noncontrolling interests | -108,948 | -316,276 | -622,321 | -591,940 |
Net income (loss) attributable to Ecology and Environment, Inc. | $1,794,176 | ($322,864) | $2,489,005 | ($727,121) |
Net income (loss) per common share: basic and diluted (in dollars per share) | $0.42 | ($0.08) | $0.58 | ($0.17) |
Weighted average common shares outstanding: basic and diluted (in shares) | 4,287,460 | 4,289,900 | 4,288,067 | 4,282,348 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
2-May-15 | Apr. 30, 2014 | 2-May-15 | Apr. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net income (loss) including noncontrolling interests | $1,903,124 | ($6,588) | $3,111,326 | ($135,181) |
Foreign currency translation adjustments | -321,492 | 172,777 | -1,511,127 | -193,200 |
Unrealized investment (losses) gains, net | -14,033 | 4,006 | -982 | 2,040 |
Comprehensive income (loss) | 1,567,599 | 170,195 | 1,599,217 | -326,341 |
Comprehensive income (loss) attributable to noncontrolling interests | -72,682 | -291,953 | -265,143 | -468,097 |
Comprehensive income (loss) loss attributable to Ecology and Environment, Inc. | $1,494,917 | ($121,758) | $1,334,074 | ($794,438) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
2-May-15 | Apr. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $3,111,326 | ($135,181) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Impairment of goodwill | 103,547 | 0 |
Depreciation and amortization | 1,125,326 | 3,138,502 |
Provision for deferred income taxes | -497,364 | 85,407 |
Share based compensation expense | 44,271 | 264,246 |
Tax impact of share-based compensation | -91,849 | -31,695 |
Gain on sale of assets and investment securities | -176,624 | 0 |
Net provision for (recovery of) contract adjustments and doubtful accounts | 29,740 | -530,100 |
Net bad debt (recovery) expense | -400,680 | 0 |
Decrease (increase) in: | ||
- contract receivables | 707,388 | 3,485,793 |
- other current assets | -222,030 | -200,050 |
- income tax receivable | 971,805 | 1,515,657 |
- other non-current assets | -97,028 | 28,807 |
(Decrease) increase in: | ||
- accounts payable | -1,485,468 | -1,676,038 |
- accrued payroll costs | -635,010 | 1,043,103 |
- income taxes payable | 111,148 | 515,305 |
- billings in excess of revenue | -360,992 | -156,680 |
- other accrued liabilities | -6,698 | 335,845 |
Net cash provided by operating activities | 2,230,808 | 7,682,921 |
Cash flows from investing activities: | ||
Acquisition of noncontrolling interest of subsidiaries | -50,000 | -689,361 |
Purchase of property, building and equipment | -615,890 | -1,176,753 |
Proceeds from sale of property, building and equipment | 239,565 | 0 |
(Purchase) sale of investment securities | -24,913 | 49,338 |
Net cash used in investing activities | -451,238 | -1,816,776 |
Cash flows from financing activities: | ||
Dividends paid | -2,066,142 | -2,053,506 |
Proceeds from debt | 84,940 | 555,656 |
Repayment of debt and capital lease obligations | -742,054 | -694,312 |
Net borrowings (repayments) under lines of credit | 223,761 | -5,526,325 |
Distributions to noncontrolling interests | -513,583 | -431,522 |
Purchase of treasury stock | 0 | -173,278 |
Net cash used in financing activities | -3,013,078 | -8,323,287 |
Effect of exchange rate changes on cash and cash equivalents | -235,169 | -16,793 |
Net decrease in cash and cash equivalents | -1,468,677 | -2,473,935 |
Cash and cash equivalents at beginning of period | 6,889,243 | 9,444,660 |
Cash and cash equivalents at end of period | 5,420,566 | 6,970,725 |
Cash paid during the year for: | ||
Interest | 90,969 | 122,188 |
Income Taxes | 821,926 | -2,471,717 |
Supplemental disclosure of non-cash items: | ||
Acquisition of noncontrolling interest of subsidiaries (loans and stock) | $233,220 | $1,041,824 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total | |
Class A [Member] | Class B [Member] | ||||||||
Balance at Jul. 31, 2013 | $26,851 | $17,087 | $20,016,873 | $25,365,853 | ($84,527) | ($1,798,233) | $3,095,386 | ||
Balance (in shares) at Jul. 31, 2013 | 2,685,151 | 1,708,574 | 143,911 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income | 0 | -1,382,656 | 0 | 0 | 592,203 | ||||
Foreign currency translation adjustment | 0 | 0 | -163,913 | 0 | -134,287 | ||||
Cash dividends declared | 0 | -2,066,622 | 0 | 0 | 0 | ||||
Unrealized investment gain, net | 0 | 0 | 1,412 | 0 | 0 | ||||
Repurchase of Class A common stock | 0 | 0 | 0 | -173,278 | 0 | ||||
Repurchase of Class A common stock (in shares) | 16,091 | ||||||||
Issuance of stock under stock award plan | -194,454 | 0 | 0 | 194,454 | 0 | ||||
Issuance of stock under stock award plan (in shares) | -16,387 | ||||||||
Share-based compensation expense | 353,295 | 0 | 0 | 0 | 0 | ||||
Tax impact of share based compensation | -31,695 | 0 | 0 | 0 | 0 | ||||
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | -664,703 | ||||
Reclassification adjustment for prior period acquisitions of noncontrolling interests | -2,414,027 | 0 | 0 | 0 | 2,381,666 | ||||
Purchase of additional noncontrolling interests | 0 | 0 | -605,653 | 0 | 64,293 | 553,158 | -1,156,652 | -1,156,652 | [1] |
Purchase of additional noncontrolling interests (in shares) | 0 | 0 | -44,260 | ||||||
Stock award plan forfeitures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Stock award plan forfeitures (in shares) | 0 | 0 | 5,999 | ||||||
Balance at Jul. 31, 2014 | 26,851 | 17,087 | 17,124,339 | 21,916,575 | -182,735 | -1,223,899 | 4,113,613 | 41,791,831 | |
Balance (in shares) at Jul. 31, 2014 | 2,685,151 | 1,708,574 | 105,354 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income | 0 | 2,489,005 | 0 | 0 | 622,321 | 3,111,326 | |||
Foreign currency translation adjustment | 0 | 0 | -1,153,949 | 0 | -357,178 | -1,511,127 | |||
Cash dividends declared | 0 | -1,033,071 | 0 | 0 | 0 | -1,033,071 | |||
Unrealized investment gain, net | 0 | 0 | -982 | 0 | 0 | -982 | |||
Conversion of Class B to Class A common stock | 226 | -226 | 0 | 0 | 0 | 0 | 0 | ||
Conversion of Class B to Class A common stock (in shares) | 22,576 | -22,576 | |||||||
Share-based compensation expense | 44,271 | 0 | 0 | 0 | 0 | ||||
Tax impact of share based compensation | -91,849 | 0 | 0 | 0 | 0 | ||||
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | -513,583 | ||||
Purchase of additional noncontrolling interests | 0 | 0 | -88,094 | 0 | 0 | 0 | -199,531 | -287,625 | [1] |
Purchase of additional noncontrolling interests (in shares) | 0 | 0 | 0 | ||||||
Stock award plan forfeitures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Stock award plan forfeitures (in shares) | 0 | 0 | 1,316 | ||||||
Balance at May. 02, 2015 | $27,077 | $16,861 | $16,988,667 | $23,372,509 | ($1,337,666) | ($1,223,899) | $3,665,642 | $41,509,191 | |
Balance (in shares) at May. 02, 2015 | 2,707,727 | 1,685,998 | 106,670 | ||||||
[1] | Purchases of additional noncontrolling interests are recorded as reductions of shareholders' equity on the condensed consolidated statements of shareholders' equity. |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) (USD $) | 9 Months Ended | 12 Months Ended |
2-May-15 | Jul. 31, 2014 | |
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) [Abstract] | ||
Cash dividends paid (in dollars per share) | $0 | $0.24 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended | |
2-May-15 | ||
Organization and Basis of Presentation [Abstract] | ||
Organization and Basis of Presentation | 1 | Organization and Basis of Presentation |
Ecology and Environment, Inc., (“EEI” or the “Parent Company”) was incorporated in 1970 as a global broad-based environmental consulting firm whose underlying philosophy is to provide professional services worldwide so that sustainable economic and human development may proceed with acceptable impact on the environment. Together with its subsidiaries (collectively, the “Company”), EEI has direct and indirect ownership in 19 wholly owned and majority owned operating subsidiaries in 12 countries. The Company’s staff is comprised of individuals representing more than 80 scientific, engineering, health, and social disciplines working together in multidisciplinary teams to provide innovative environmental solutions. The Company has completed more than 50,000 projects for a wide variety of clients in more than 120 countries, providing environmental solutions in nearly every ecosystem on the planet. | ||
The condensed consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of such information. All such adjustments are of a normal recurring nature. | ||
Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, including a description of significant accounting policies, have been condensed or omitted pursuant to SEC rules and regulations. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2014 filed with the Securities and Exchange Commission (the “2014 Annual Report”). The accounting policies followed by the Company for preparation of the consolidated financial statements included in the 2014 Annual Report were also followed for this interim report. The condensed consolidated results of operations for the three and nine months ended May 2, 2015 are not necessarily indicative of the results for any subsequent period or the entire fiscal year ending July 31, 2015. | ||
Certain prior year amounts were reclassified to conform to the condensed consolidated financial statement presentation for the three and nine months ended May 2, 2015. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended | |
2-May-15 | ||
Recent Accounting Pronouncements [Abstract] | ||
Recent Accounting Pronouncements | 2 | Recent Accounting Pronouncements |
Accounting Pronouncements Adopted During the Fiscal Year Ended July 31, 2015 | ||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The Company adopted the provisions of ASU 2013-11 effective August 1, 2014 and applied its provisions retrospectively. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. | ||
Accounting Pronouncements Not Yet Adopted as of May 2, 2015 | ||
In May 2014, FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is the result of a joint project of FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for use in the U.S and internationally. ASU 2014-09 supersedes the revenue recognition requirements in Topic 605 of FASB’s Accounting Standards Codification (the “Codification”) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU 2014-09 enhances comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets, reduces the number of requirements an entity must consider for recognizing revenue, and requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within the annual reporting period. The Company intends to adopt the provisions of ASU 2014-09 effective August 1, 2017. ASU 2014-09 requires retrospective application by either restating each prior period presented in the financial statements, or by recording the cumulative effect on prior reporting periods to beginning retained earnings in the year that the standard becomes effective. Management is currently assessing the provisions of ASU 2014-09 and has not yet estimated its impact or selected a transition method. | ||
In January 2015, FASB issued ASU No. 2015-01 Income Statement – Extraordinary and Unusual Items (Subtopic 225-20) (“ASU 2015-01”). ASU 2015-01 eliminates the concept of extraordinary items from U.S. generally accepted accounting principles. While reporting entities will no longer be required to assess whether an underlying event or transaction is extraordinary, presentation and disclosure guidance for items that are unusual in nature or occur infrequently are retained, and are expanded to include items that are both unusual in nature and infrequently occurring. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company intends to adopt the provisions of ASU 2015-01 effective August 1, 2015. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 9 Months Ended | |
2-May-15 | ||
Cash and Cash Equivalents [Abstract] | ||
Cash and Cash Equivalents | 3 | Cash and Cash Equivalents |
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. The Company invests cash in excess of operating requirements in income-producing short-term investments. Money market funds of less than $0.1 million and $0.3 million were included in cash and cash equivalents in the accompanying condensed consolidated balance sheets at May 2, 2015 and July 31, 2014, respectively. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||||||||||
Fair Value of Financial Instruments | 4 | Fair Value of Financial Instruments | |||||||||||||||
The Company’s financial assets or liabilities are measured using inputs from the three levels of the fair value hierarchy. The asset’s or liability’s classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company has not elected a fair value option on any assets or liabilities. The three levels of the hierarchy are as follows: | |||||||||||||||||
Level 1 Inputs – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Generally this includes debt and equity securities and derivative contracts that are traded on an active exchange market (e.g., New York Stock Exchange) as well as certain U.S. Treasury and U.S. Government and agency mortgage-backed securities that are highly liquid and are actively traded in over-the-counter markets. | |||||||||||||||||
Level 2 Inputs – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, credit risks, etc.) or can be corroborated by observable market data. The Company’s investment securities classified as Level 2 are comprised of international and domestic corporate and municipal bonds. | |||||||||||||||||
Level 3 Inputs – Valuations based on models where significant inputs are not observable. The unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use. | |||||||||||||||||
The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. The Company evaluated the significance of transfers between levels based upon the nature of the financial instrument. There were no transfers in or out of levels 1, 2 or 3, respectively during the three or nine months ended May 2, 2015 or the fiscal year ended July 31, 2014. | |||||||||||||||||
The fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis is summarized by level within the fair value hierarchy in the following table. | |||||||||||||||||
Balance at May 2, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Investment securities available for sale | $ | 1,430,554 | $ | --- | $ | --- | $ | 1,430,554 | |||||||||
Balance at July 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Investment securities available for sale | $ | 1,407,277 | $ | --- | $ | --- | $ | 1,407,277 | |||||||||
Investment securities available for sale include mutual funds that are valued at the net asset value (“NAV”) of shares held by the Company at period end. Mutual funds held by the Company are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily NAV and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. | |||||||||||||||||
Reclassification adjustments out of accumulated other comprehensive income from realized gains or losses from investment securities available for sale are included in the condensed consolidated statements of operations within other income (expense). | |||||||||||||||||
The carrying amount of cash and cash equivalents approximated fair value at May 2, 2015 and July 31, 2014. These assets were classified as level 1 instruments at both dates. Long-term debt consists of bank loans and capitalized equipment leases. Lines of credit consist of borrowings for working capital requirements. Based on the Company's assessment of the current financial market and corresponding risks associated with the debt and line of credit borrowings, management believes that the carrying amount of these liabilities approximated fair value at May 2, 2015 and July 31, 2014. These liabilities were classified as level 2 instruments at both dates. There were no financial instruments classified as level 3 at May 2, 2015 or July 31, 2014. | |||||||||||||||||
Investment securities available for sale are stated at fair value. Unrealized gains or losses related to investment securities available for sale are recorded in accumulated other comprehensive income, net of applicable income taxes in the accompanying condensed consolidated balance sheets and condensed consolidated statements of changes in shareholders' equity. The cost basis of securities sold is based on the specific identification method. The Company had gross unrealized gains of less than $0.1 million recorded in accumulated other comprehensive income at May 2, 2015 and July 31, 2014. |
Revenue_and_Contract_Receivabl
Revenue and Contract Receivables, net | 9 Months Ended | |||||||||||||||||
2-May-15 | ||||||||||||||||||
Revenue and Contract Receivables, net [Abstract] | ||||||||||||||||||
Revenue and Contract Receivables, net | 5 | Revenue and Contract Receivables, net | ||||||||||||||||
Revenue Recognition | ||||||||||||||||||
Substantially all of the Company's revenue is derived from environmental consulting work. The consulting revenue is principally derived from the sale of labor hours. The consulting work is performed under a mix of fixed price, cost-type, and time and material contracts. Contracts are required from all customers. Revenue is recognized as follows: | ||||||||||||||||||
Contract Type | Work Type | Revenue Recognition Policy | ||||||||||||||||
Time and materials | Consulting | As incurred at contract rates. | ||||||||||||||||
Fixed price | Consulting | Percentage of completion, approximating the ratio of either total costs or Level of Effort (“LOE”) hours incurred to date to total estimated costs or LOE hours. | ||||||||||||||||
Cost-plus | Consulting | Costs as incurred plus fees. Fees are recognized as revenue using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts. | ||||||||||||||||
Revenues reflected in the Company's condensed consolidated statements of operations represent services rendered for which the Company maintains a primary contractual relationship with its customers. Included in revenues are certain services outside the Company's normal operations which the Company has elected to subcontract to other contractors. | ||||||||||||||||||
Time and material contracts are accounted for over the period of performance, in proportion to the costs of performance, predominately based on labor hours incurred. Revenue earned from fixed price and cost-plus contracts is recognized using the “percentage-of-completion” method, wherein revenue is recognized as project progress occurs. If an estimate of costs at completion on any contract indicates that a loss will be incurred, the entire estimated loss is charged to operations in the period the loss becomes evident. | ||||||||||||||||||
Substantially all of the Company's cost-type work is with federal governmental agencies and, as such, is subject to audits after contract completion. Under these cost-type contracts, provisions for adjustments to accrued revenue are recognized on a quarterly basis and based on past audit settlement history. Government audits have been completed and final rates have been negotiated through fiscal year 2007. The Company records an allowance for project disallowances in other accrued liabilities for potential disallowances resulting from government audits (refer to Note 11 of these condensed consolidated financial statements). | ||||||||||||||||||
Change orders can occur when changes in scope are made after project work has begun, and can be initiated by either the Company or its clients. Claims are amounts in excess of the agreed contract price which the Company seeks to recover from a client for customer delays and /or errors or unapproved change orders that are in dispute. Costs related to change orders and claims are recognized as incurred. Revenues and profit are recognized on change orders when it is probable that the change order will be approved and the amount can be reasonably estimated. Revenues are recognized only up to the amount of costs incurred on contract claims when realization is probable, estimable and reasonable support from the customer exists. | ||||||||||||||||||
All bid and proposal and other pre-contract costs are expensed as incurred. Out of pocket expenses such as travel, meals, field supplies, and other costs billed direct to contracts are included in both revenues and cost of professional services. Sales and cost of sales at the Company’s South American subsidiaries exclude tax assessments by governmental authorities, which are collected by the Company from its customers and then remitted to governmental authorities. | ||||||||||||||||||
Billed contract receivables represent amounts billed to clients in accordance with contracted terms, which have not been collected from clients as of the end of the reporting period. Billed contract receivables may include: (1) amounts billed for revenues from incurred costs and fees that have been earned in accordance with contractual terms; and (2) progress billings in accordance with contractual terms that include revenue not yet earned as of the end of the reporting period. | ||||||||||||||||||
Unbilled contract receivables result from: (i) revenues from incurred costs and fees which have been earned, but are not billed as of period-end; and (ii) differences between year-to-date provisional billings and year-to-date actual contract costs incurred. | ||||||||||||||||||
The Company reduces contract receivables by recording an allowance for doubtful accounts to account for the estimated impact of collection issues resulting from a client’s inability or unwillingness to pay valid obligations to the Company. The resulting provision for bad debts is recorded within administrative and indirect operating expenses on the condensed consolidated statements of operations. | ||||||||||||||||||
The Company also reduces contract receivables by establishing an allowance for contract adjustments related to revenues that are deemed to be unrealizable, or that may become unrealizable in the future. Management reviews contract receivables and determines allowance amounts based on the adequacy of the Company’s performance under the contract, the status of change orders and claims, historical experience with the client for settling change orders and claims, and economic, geopolitical and cultural considerations for the home country of the client. Such contract adjustments are recorded as direct adjustments to revenue in the condensed consolidated statements of operations. | ||||||||||||||||||
Contract Receivables, Net | ||||||||||||||||||
Contract receivables, net are summarized in the following table. | ||||||||||||||||||
Balance at | ||||||||||||||||||
May 2, | July 31, | |||||||||||||||||
2015 | 2014 | |||||||||||||||||
Contract Receivables: | ||||||||||||||||||
Billed | $ | 23,686,190 | $ | 26,863,708 | ||||||||||||||
Unbilled | 23,918,858 | 23,694,451 | ||||||||||||||||
47,605,048 | 50,558,159 | |||||||||||||||||
Allowance for doubtful accounts and contract adjustments | (5,906,452 | ) | (6,126,854 | ) | ||||||||||||||
Total contract receivables, net | $ | 41,698,596 | $ | 44,431,305 | ||||||||||||||
Billed contract receivables did not include any contractual retainage balances at May 2, 2015 or July 31, 2014. Management anticipates that the unbilled receivables outstanding at May 2, 2015 will be substantially billed and collected within one year. | ||||||||||||||||||
Contract Receivable Concentrations | ||||||||||||||||||
Significant concentrations of contract receivables and the allowance for doubtful accounts and contract adjustments are summarized in the following table. | ||||||||||||||||||
Balance at May 2, 2015 | Balance at July 31, 2014 | |||||||||||||||||
Region | Contract | Allowance for | Contract | Allowance for | ||||||||||||||
Receivables | Doubtful | Receivables | Doubtful | |||||||||||||||
Accounts and | Accounts and | |||||||||||||||||
Contract | Contract | |||||||||||||||||
Adjustments | Adjustments | |||||||||||||||||
United States, Canada and South America | $ | 40,773,324 | $ | 625,878 | $ | 43,394,442 | $ | 1,611,068 | ||||||||||
Middle East and Africa | 6,758,478 | 5,273,574 | 7,010,225 | 4,386,240 | ||||||||||||||
Asia | 73,246 | 7,000 | 153,492 | 129,546 | ||||||||||||||
Totals | $ | 47,605,048 | $ | 5,906,452 | $ | 50,558,159 | $ | 6,126,854 | ||||||||||
Combined contract receivables related to projects in the Middle East, Africa and Asia represented 14% of total contract receivables at May 2, 2015 and July 31, 2014, while the combined allowance for doubtful accounts and contract adjustments related to these projects represented 89% and 74% of the total allowance for doubtful accounts and contract adjustments at May 2, 2015 and July 31, 2014, respectively. These allowance percentages highlight the Company’s experience of heightened operating risks (i.e., political, regulatory, cultural and credit risks) within these foreign regions in comparison with similar risks in the United States, Canada and South America. During fiscal years prior to 2014, the Company expended resources in these regions that it did not recover for several months, or at all. During fiscal years 2014 and 2015, the Company significantly curtailed its operations and projects in these regions in order to focus on more profitable operations in the United States and South America. | ||||||||||||||||||
Allowance for Doubtful Accounts and Contract Adjustments | ||||||||||||||||||
Activity within the allowance for doubtful accounts and contract adjustments is summarized in the following table. | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
May 2, | April 30, | May 2, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Balance at beginning of period | $ | 5,966,241 | $ | 5,336,972 | $ | 6,126,854 | $ | 5,592,800 | ||||||||||
Net increase (decrease) due to adjustments in the allowance for: | ||||||||||||||||||
Contract adjustments (1) | (63,401 | ) | 94,658 | 180,278 | (163,745 | ) | ||||||||||||
Doubtful accounts (2) | 3,612 | (78,930 | ) | (400,680 | ) | (66,355 | ) | |||||||||||
Transfer of reserves to allowance for project disallowances (3) | --- | (12,500 | ) | --- | (22,500 | ) | ||||||||||||
Balance at end of period | $ | 5,906,452 | $ | 5,340,200 | $ | 5,906,452 | $ | 5,340,200 | ||||||||||
-1 | Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations. | |||||||||||||||||
-2 | Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations. | |||||||||||||||||
-3 | Refer to Note 11 of these condensed consolidated financial statements for a summary of the allowance for project disallowances. |
Property_Building_and_Equipmen
Property, Building and Equipment, net | 9 Months Ended | |
2-May-15 | ||
Property, Building and Equipment, net [Abstract] | ||
Property, Building and Equipment, net | 6 | Property, Building and Equipment, net |
In November 2013, management decided to abandon the Company’s existing operating and financial software system and migrate to new system software. The Company acquired and developed new software during fiscal year 2014, and began utilizing the new software effective August 1, 2014 for its U.S. operations. Although the core software modules were operating effectively as of August 1, 2014, certain operational and reporting capabilities of the new system continued to be developed during the nine months ended May 2, 2015. The process to develop new operating and financial software systems for the Company’s significant foreign subsidiaries was completed during the quarter ended April 30, 2015. The Company recorded software development costs of $0.2 million and $1.5 million in property, plant and equipment during the nine months ended May 2, 2015 and April 30, 2014, respectively. | ||
The Company continued to utilize the previous software system through July 31, 2014, at which time the previous system was abandoned. As a result, amortization of software development costs capitalized for the previous system was accelerated so that the system was completely amortized by July 31, 2014. Total software amortization expense was less than $0.1 million and $0.7 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $0.1 million and $2.0 million for the nine months ended May 2, 2015 and April 30, 2014, respectively. |
Goodwill
Goodwill | 9 Months Ended | |
2-May-15 | ||
Goodwill [Abstract] | ||
Goodwill | 7 | Goodwill |
Goodwill of $1.1 million and $1.2 million at May 2, 2015 and July 31, 2014, respectively, is included in other assets on the accompanying condensed consolidated balance sheets. Goodwill is subject to an annual assessment for impairment by comparing the estimated fair values of reporting units to which Goodwill has been assigned, as calculated using a discounted cash flow method, to the recorded book value of the respective reporting units. The Company’s most recent annual impairment assessment for goodwill was completed during the fourth quarter of fiscal year 2014. The results of this assessment showed that the fair values of the reporting units to which goodwill is assigned was in excess of the book values of the respective reporting units, resulting in the identification of no goodwill impairment. | ||
Goodwill is also assessed for impairment between annual assessments whenever events or circumstances make it more likely than not that an impairment may have occurred. The Company identified changes in circumstances during the quarter ended January 31, 2015 that necessitated an evaluation for impairment of a portion of its recorded goodwill. | ||
The Company recorded $0.1 million of goodwill resulting from an acquisition of a majority-owned subsidiary during fiscal year 2011. The acquired company experienced recurring operating losses over the course of several recent reporting quarters. Projections completed by management indicated that operating losses are expected to continue into the foreseeable future. As a result of management’s assessment, during the second quarter of fiscal year 2015, the Company determined that goodwill recorded as a result of this acquisition was impaired. The Company recorded a $0.1 million impairment loss in administrative and indirect operating expenses on the accompanying condensed consolidated statements of operations. |
Lines_of_Credit
Lines of Credit | 9 Months Ended | ||||||||
2-May-15 | |||||||||
Lines of Credit [Abstract] | |||||||||
Lines of Credit | 8 | Lines of Credit | |||||||
Unsecured lines of credit are summarized in the following table. | |||||||||
Balance at | |||||||||
May 2, | July 31, | ||||||||
2015 | 2014 | ||||||||
Outstanding cash draws, recorded as lines of credit on the accompanying condensed consolidated balance sheets | $ | 1,495,701 | $ | 1,572,466 | |||||
Outstanding letters of credit to support operations | 904,761 | 1,944,994 | |||||||
Total amounts used under lines of credit | 2,400,462 | 3,517,460 | |||||||
Remaining amounts available under lines of credit | 31,968,538 | 30,851,540 | |||||||
Total approved unsecured lines of credit | $ | 34,369,000 | $ | 34,369,000 | |||||
Contractual interest rates ranged from 2.50% to 3.00% at May 2, 2015. The Company’s lenders have reaffirmed the lines of credit within the past twelve months. |
Debt_and_Capital_Lease_Obligat
Debt and Capital Lease Obligations | 9 Months Ended | ||||||||
2-May-15 | |||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||
Debt and Capital Lease Obligations | 9 | Debt and Capital Lease Obligations | |||||||
Debt and capital lease obligations are summarized in the following table. | |||||||||
Balance at | |||||||||
May 2, | July 31, | ||||||||
2015 | 2014 | ||||||||
Various bank loans and advances at interest rates ranging from 3.25% to 14% | $ | 648,129 | $ | 676,874 | |||||
Capital lease obligations at varying interest rates averaging 8% | 357,424 | 165,632 | |||||||
1,005,553 | 842,506 | ||||||||
Current portion of long-term debt and capital lease obligations | (561,025 | ) | (420,737 | ) | |||||
Long-term debt and capital lease obligations | $ | 444,528 | $ | 421,769 | |||||
The aggregate maturities of long-term debt and capital lease obligations as of May 2, 2015 are summarized in the following table. | |||||||||
May 2015 – April 2016 | $ | 561,025 | |||||||
May 2016 – April 2017 | 223,392 | ||||||||
May 2017 – April 2018 | 182,074 | ||||||||
May 2018 – April 2019 | 13,788 | ||||||||
Thereafter | 25,274 | ||||||||
Total | $ | 1,005,553 |
Income_Taxes
Income Taxes | 9 Months Ended | |
2-May-15 | ||
Income Taxes [Abstract] | ||
Income Taxes | 10 | Income Taxes |
The estimated effective tax rate was a 41.6% provision and a 26.4% benefit for the nine months ended May 2, 2015 and April 30, 2014, respectively. During fiscal year 2014, certain discrete items were recorded which increased tax expense, including foreign dividend income and additional expenses that were unallowable for tax purposes, which were partially offset by a return to provision adjustment that increased available foreign tax credits. During fiscal year 2015, the Company is forecasting higher income from entities in the U.S. compared with the prior fiscal year, which is taxed at a higher effective rate than income from entities in foreign countries. |
Other_Accrued_Liabilities
Other Accrued Liabilities | 9 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Other Accrued Liabilities [Abstract] | |||||||||||||||||
Other Accrued Liabilities | 11 | Other Accrued Liabilities | |||||||||||||||
Other accrued liabilities are summarized in the following table. | |||||||||||||||||
Balance at | |||||||||||||||||
May 2, | July 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Allowance for project disallowances | $ | 2,242,813 | $ | 2,393,351 | |||||||||||||
Other | 1,533,092 | 1,841,911 | |||||||||||||||
Total other accrued liabilities | $ | 3,775,905 | $ | 4,235,262 | |||||||||||||
The allowance for project disallowances represents potential disallowances of amounts previously billed and collected under government contracts. Allowances for project disallowances are recorded when the amounts are estimable. Resolution of these amounts is dependent upon the results of government audits and other formal contract close-out procedures. Activity within the allowance for project disallowances is summarized in the following table. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
May 2, | April 30, | May 2, | April 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Balance at beginning of period | $ | 2,242,813 | $ | 2,673,351 | $ | 2,393,351 | $ | 2,663,351 | |||||||||
Net change during the period | --- | (287,500 | ) | (150,538 | ) | (277,500 | ) | ||||||||||
Balance at end of period | $ | 2,242,813 | $ | 2,385,851 | $ | 2,242,813 | $ | 2,385,851 | |||||||||
The reduction in the allowance for project disallowances during the nine months ended May 2, 2015 and April 30, 2014 resulted from settlement of an allowance recorded in prior fiscal years. This settlement resulted in payment of less than $0.1 million during the nine months ended May 2, 2015 and adjustments of $0.1 million and $0.3 million recorded during the nine months ended May 2, 2015 and April 30, 2014, respectively, as additions to revenue, net in the accompanying condensed consolidated statements of operations. |
Stock_Award_Plan
Stock Award Plan | 9 Months Ended | ||
2-May-15 | |||
Stock Award Plan [Abstract] | |||
Stock Award Plan | 12 | Stock Award Plan | |
EEI adopted the 1998 Stock Award Plan effective March 16, 1998 (the “1998 Award Plan”). The following supplemental plans were adopted subsequent to adoption of the 1998 Award Plan: | |||
· | The 2003 Stock Award Plan (the “2003 Award Plan”), which was adopted by the Board of Directors in October 2004, approved by shareholders in January 2004, and terminated in October 2008; | ||
· | The 2007 Stock Award Plan (the “2007 Award Plan”), which was adopted by the Board of Directors in October 2007, approved by shareholders in January 2008, and terminated in October 2012; and | ||
· | The 2011 Stock Award Plan (the “2011 Award Plan”), which was adopted by the Board of Directors in October 2011, approved by shareholders in January 2012, and will terminate in October 2016. | ||
The 1998 Award Plan and all supplemental plans are collectively referred to as the “Award Plan”. The Award Plan permits grants of stock awards for a period of five (5) years from the date of adoption by the Board of Directors. The Award Plan is not a qualified plan under Section 401(a) of the Internal Revenue Code. Total gross compensation expense related to stock awards is recognized over the vesting period of awards granted. | |||
The Company awarded 62,099 Class A shares valued at $0.9 million in October 2011, which had a three year vesting period and were fully vested in August 2014. The Company awarded 16,387 Class A shares valued at $0.2 million in October 2013, which have a three year vesting period and will be fully vested in August 2016. The Company recorded non-cash compensation expense of less than $0.1 million and $0.3 million during the nine months ended May 2, 2015 and April 30, 2014, respectively, in connection with all outstanding stock compensation awards. Total unearned compensation costs related to outstanding stock awards were $0.1 million at May 2, 2015. The "pool" of excess tax benefits accumulated in Capital in Excess of Par Value was $0.1 million and at May 2, 2015 and July 31, 2014. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||||||
2-May-15 | |||||||||
Shareholders' Equity [Abstract] | |||||||||
Shareholders' Equity | 13 | Shareholders' Equity | |||||||
Class A and Class B Common Stock | |||||||||
The relative rights, preferences and limitations of the Company's Class A and Class B common stock are summarized as follows: Holders of Class A shares are entitled to elect 25% of the Board of Directors so long as the number of outstanding Class A shares is at least 10% of the combined total number of outstanding Class A and Class B common shares. Holders of Class A common shares have one-tenth the voting power of Class B common shares with respect to most other matters. | |||||||||
In addition, Class A shares are eligible to receive dividends in excess of (and not less than) those paid to holders of Class B shares. Holders of Class B shares have the option to convert at any time, each share of Class B common stock into one share of Class A common stock. Upon sale or transfer, shares of Class B common stock will automatically convert into an equal number of shares of Class A common stock, except that sales or transfers of Class B common stock to an existing holder of Class B common stock or to an immediate family member will not cause such shares to automatically convert into Class A common stock. | |||||||||
Restrictive Shareholder Agreement | |||||||||
Messrs. Gerhard J. Neumaier (deceased), Frank B. Silvestro, Ronald L. Frank, and Gerald A. Strobel entered into a Stockholders’ Agreement dated May 12, 1970, as amended January 24, 2011, which governs the sale of certain shares of Ecology and Environment, Inc. common stock (now classified as Class B Common Stock) owned by them, certain children of those individuals and any such shares subsequently transferred to their spouses and/or children outright or in trust for their benefit upon the demise of a signatory to the Agreement (“Permitted Transferees”). The Agreement provides that prior to accepting a bona fide offer to purchase some or all of their shares of Class B Common Stock governed by the Agreement, that the selling party must first allow the other signatories to the Agreement (not including any Permitted Transferee) the opportunity to acquire on a pro rata basis, with right of over-allotment, all of such shares covered by the offer on the same terms and conditions proposed by the offer. | |||||||||
Cash Dividends | |||||||||
The Company declared and accrued $1.0 million of cash dividends during the nine months ended May 2, 2015 and April 30, 2014, which were paid in February 2015 and 2014, respectively. The Company paid dividends of $1.0 million in August 2014 and 2013 that were declared and accrued in prior periods. | |||||||||
Stock Repurchase | |||||||||
In August 2010, the Company’s Board of Directors approved a program for repurchase of 200,000 shares of Class A common stock (the “stock repurchase program”). As of May 2, 2015, the Company repurchased 122,918 shares of Class A stock, and 77,082 shares had yet to be repurchased under the stock repurchase program. The Company did not acquire any Class A shares under the stock repurchase program during the three months or nine months ended May 2, 2015. The Company acquired 16,091 shares of Class A stock under the stock repurchase program during the nine months ended April 30, 2014 for a total acquisition cost of approximately $0.2 million. | |||||||||
Noncontrolling Interests | |||||||||
Noncontrolling interests are disclosed as a separate component of consolidated shareholders’ equity on the accompanying condensed consolidated balance sheets. Earnings and other comprehensive (loss) income are separately attributed to both the controlling and noncontrolling interests. Earnings per share (“EPS”) is calculated based on net (loss) income attributable to the Company’s controlling interests. | |||||||||
Transactions to acquire ownership interest from noncontrolling shareholders during the nine months ended May 2, 2015 and during the fiscal year ended July 31, 2014, which were recorded at amounts that approximated fair value, are summarized in the following table. | |||||||||
Nine Months | Fiscal Year | ||||||||
Ended | Ended | ||||||||
2-May-15 | 31-Jul-14 | ||||||||
Purchases of noncontrolling interests: | |||||||||
Purchase of 2,800 Gustavson common shares (1) | $ | 287,625 | $ | --- | |||||
Purchase of 344 Walsh common shares (2) | --- | 5,653 | |||||||
Purchase of 3,705 Walsh common shares (3) | --- | 1,120,749 | |||||||
Purchase of 100 Walsh common shares (4) | --- | 30,250 | |||||||
Total purchases of additional noncontrolling interests (5) | $ | 287,625 | $ | 1,156,652 | |||||
-1 | In January 2015, Gustavson Associates, LLC (“Gustavson”), a majority owned indirect subsidiary of EEI, purchased an additional 7.2% of its outstanding common shares from noncontrolling shareholders for $0.3 million. The purchase price was paid as follows: (i) approximately $0.1 million of cash paid on the transaction date; and (ii) approximately $0.2 million payable in 3 annual installments plus interest accrued at 6% per annum. EEI’s indirect ownership of Gustavson increased to 83.6% as a result of this transaction. | ||||||||
-2 | In January 2014, EEI purchased an additional 0.9% of Walsh from noncontrolling shareholders for $0.1 million in cash. Walsh became a wholly-owned subsidiary of EEI as a result of these transactions. | ||||||||
-3 | In October 2013, EEI purchased an additional 9.4% of Walsh for $1.6 million. The purchase price was paid as follows: (i) one third in cash payable on the transaction consummation date; (ii) one third payable with EEI Common Stock on the transaction consummation date; and (iii) one third payable in two annual installments plus interest accrued at 3.25% per annum. | ||||||||
-4 | In October 2013, EEI purchased an additional 0.2% of Walsh for less than $0.1 million in cash. | ||||||||
-5 | Purchases of additional noncontrolling interests are recorded as reductions of shareholders’ equity on the condensed consolidated statements of shareholders’ equity. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share | 14 | Earnings Per Share | |||||||||||||||
Basic and diluted EPS is computed by dividing the net income (loss) attributable to Ecology and Environment, Inc. common shareholders by the weighted average number of common shares outstanding for the period. After consideration of all the rights and privileges of the Class A and Class B stockholders summarized in Note 13, in particular the right of the holders of the Class B common stock to elect no less than 75% of the Board of Directors making it highly unlikely that the Company will pay a dividend on Class A common stock in excess of Class B common stock, the Company allocates undistributed earnings between the classes on a one-to-one basis when computing earnings per share. As a result, basic and fully diluted earnings per Class A and Class B share are equal amounts. | |||||||||||||||||
The Company has determined that its unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. These securities shall be included in the computation of earnings per share pursuant to the two-class method. The resulting impact was to include unvested restricted shares in the weighted average shares outstanding calculation. | |||||||||||||||||
The computation of earnings per share is included in the following table. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
May 2, | April 30, | May 2, | April 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net (loss) income attributable to Ecology and Environment, Inc. | $ | 1,794,176 | $ | (322,864 | ) | $ | 2,489,005 | $ | (727,121 | ) | |||||||
Dividends declared | --- | --- | (1,033,071 | ) | (1,033,551 | ) | |||||||||||
Balance at end of period | $ | 1,794,176 | $ | (322,864 | ) | $ | 1,455,934 | $ | (1,760,672 | ) | |||||||
Weighted-average common shares outstanding (basic and diluted) | 4,287,460 | 4,289,900 | 4,288,067 | 4,282,348 | |||||||||||||
Distributed earnings per share | $ | --- | $ | --- | $ | 0.24 | $ | 0.24 | |||||||||
Undistributed earnings per share | 0.42 | (0.08 | ) | 0.34 | (0.41 | ) | |||||||||||
Total earnings per share | $ | 0.42 | $ | (0.08 | ) | $ | 0.58 | $ | (0.17 | ) |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting | 15 | Segment Reporting | |||||||||||||||
The Company reports segment information based on the geographic location of its customers (for revenues) and the location of its offices (for long-lived assets). Revenue and long-lived assets by business segment are summarized in the following tables. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
May 2, | April 30, | May 2, | April 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Revenue, net by geographic location: | |||||||||||||||||
United States | $ | 21,577,386 | $ | 19,721,145 | $ | 60,995,999 | $ | 61,328,509 | |||||||||
Foreign countries (1) | 8,767,185 | 11,782,754 | 30,700,884 | 34,001,953 | |||||||||||||
-1 | Significant foreign revenues included revenues in Peru ($5.0 million and $5.5 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $17.3 million and $13.9 million for the nine months ended May 2, 2015 and April 30, 2014, respectively), Brazil ($1.4 million and $3.5 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $6.5 million and $10.1 million for the nine months ended May 2, 2015 and April 30, 2014, respectively) and Chile ($1.7 million and $2.3 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $4.8 million and $7.0 million for the nine months ended May 2, 2015 and April 30, 2014, respectively). | ||||||||||||||||
Balance at | |||||||||||||||||
May 2, | July 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Long-Lived Assets by geographic location: | |||||||||||||||||
United States | $ | 27,060,193 | $ | 31,170,634 | |||||||||||||
Foreign countries | 5,532,497 | 5,386,736 |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
2-May-15 | ||
Commitments and Contingencies [Abstract] | ||
Commitments and Contingencies | 16 | Commitments and Contingencies |
From time to time, the Company is a named defendant in legal actions arising out of the normal course of business. The Company is not a party to any pending legal proceeding, the resolution of which the management believes will have a material adverse effect on the Company’s results of operations, financial condition or cash flows, or to any other pending legal proceedings other than ordinary, routine litigation incidental to its business. The Company maintains liability insurance against risks arising out of the normal course of business. | ||
Certain contracts contain termination provisions under which the customer may, without penalty, terminate the contracts upon written notice to the Company. In the event of termination, the Company would be paid only termination costs in accordance with the particular contract. Generally, termination costs include unpaid costs incurred to date, earned fees and any additional costs directly allocable to the termination. | ||
On September 21, 2012, the Colorado Department of Public Health and Environment (“CDPHE”) issued a proposed Compliance Order on Consent (the "Proposed Consent Order") to the City and County of Denver ("Denver") and to Walsh. On the date that the Proposed Consent Order was issued, Walsh was a majority-owned subsidiary of EEI. The Proposed Consent Order pertained to construction improvement activities of certain property owned by Denver which was the subject of asbestos remediation. Denver had entered into a contract with Walsh under which Walsh provided certain environmental consulting services (asbestos monitoring services) in connection with the asbestos containment and/or removal performed by other contractors at Denver's real property. On February 13, 2013, without admitting liability or CDPHE’s version of the underlying facts, Walsh entered into a Compliance Order on Consent with CDPHE, paid a penalty of less than $0.1 million and paid for a Supplemental Environmental Project to benefit the public at large in an amount less than $0.1 million. Denver was served with a final Compliance Order and Assessment of Administrative Penalty against Denver alone for approximately $0.2 million. Under Walsh's environmental consulting contract with Denver, Walsh agreed to indemnify Denver for certain liabilities where Walsh could potentially be held responsible for a portion of the penalty imposed upon Denver. In January 2015, Walsh settled this indemnity claim with a payment of less than $0.1 million to Denver. | ||
On February 4, 2011, the Chico Mendes Institute of Biodiversity Conservation of Brazil (the “Institute”) issued a Notice of Infraction to ecology and environment do brasil Ltda (“E&E Brasil”), a majority-owned subsidiary of EEI. The Notice of Infraction concerns the taking and collecting species of wild animal specimens without authorization by the competent authority and imposes a fine of 520,000 Reais, which has a value of approximately $0.2 million at May 2, 2015. No claim has been made against EEI. The Institute has also filed Notices of Infraction against four employees of E&E Brasil alleging the same claims and has imposed fines against those individuals that, in the aggregate, are equal to the fine imposed against E&E Brasil. E&E Brasil has filed administrative responses with the Institute for itself and its employees that: (a) deny the jurisdiction of the Institute; (b) state that the Notice of Infraction is constitutionally vague; and (c) affirmatively state that E&E Brasil had obtained the necessary permits for the surveys and collections of specimens under applicable Brazilian regulations and that the protected conservation area is not clearly marked to show its boundaries. To date, E&E Brasil has attended one meeting where depositions were taken; the claim of violations against one of the four employees was dismissed; two of the four employees have fines assessed against them, which are going being appealed; and the remaining one employee and E&E Brasil are awaiting agency determinations. If fines are assessed against the remaining one employee and/or E&E Brasil, appeals will be filed. Management believes that these administrative proceedings will not have a material adverse impact on the operations of the Company. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | The fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis is summarized by level within the fair value hierarchy in the following table. | ||||||||||||||||
Balance at May 2, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Investment securities available for sale | $ | 1,430,554 | $ | --- | $ | --- | $ | 1,430,554 | |||||||||
Balance at July 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Investment securities available for sale | $ | 1,407,277 | $ | --- | $ | --- | $ | 1,407,277 |
Revenue_and_Contract_Receivabl1
Revenue and Contract Receivables, net (Tables) | 9 Months Ended | |||||||||||||||||
2-May-15 | ||||||||||||||||||
Revenue and Contract Receivables, net [Abstract] | ||||||||||||||||||
Contract Receivables, Net | Contract receivables, net are summarized in the following table. | |||||||||||||||||
Balance at | ||||||||||||||||||
May 2, | July 31, | |||||||||||||||||
2015 | 2014 | |||||||||||||||||
Contract Receivables: | ||||||||||||||||||
Billed | $ | 23,686,190 | $ | 26,863,708 | ||||||||||||||
Unbilled | 23,918,858 | 23,694,451 | ||||||||||||||||
47,605,048 | 50,558,159 | |||||||||||||||||
Allowance for doubtful accounts and contract adjustments | (5,906,452 | ) | (6,126,854 | ) | ||||||||||||||
Total contract receivables, net | $ | 41,698,596 | $ | 44,431,305 | ||||||||||||||
Contract Receivables and Allowance for Doubtful Accounts and Contract Adjustments by Geographical Areas | Significant concentrations of contract receivables and the allowance for doubtful accounts and contract adjustments are summarized in the following table. | |||||||||||||||||
Balance at May 2, 2015 | Balance at July 31, 2014 | |||||||||||||||||
Region | Contract | Allowance for | Contract | Allowance for | ||||||||||||||
Receivables | Doubtful | Receivables | Doubtful | |||||||||||||||
Accounts and | Accounts and | |||||||||||||||||
Contract | Contract | |||||||||||||||||
Adjustments | Adjustments | |||||||||||||||||
United States, Canada and South America | $ | 40,773,324 | $ | 625,878 | $ | 43,394,442 | $ | 1,611,068 | ||||||||||
Middle East and Africa | 6,758,478 | 5,273,574 | 7,010,225 | 4,386,240 | ||||||||||||||
Asia | 73,246 | 7,000 | 153,492 | 129,546 | ||||||||||||||
Totals | $ | 47,605,048 | $ | 5,906,452 | $ | 50,558,159 | $ | 6,126,854 | ||||||||||
Allowance for Doubtful Accounts and Contract Adjustments | Activity within the allowance for doubtful accounts and contract adjustments is summarized in the following table. | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
May 2, | April 30, | May 2, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Balance at beginning of period | $ | 5,966,241 | $ | 5,336,972 | $ | 6,126,854 | $ | 5,592,800 | ||||||||||
Net increase (decrease) due to adjustments in the allowance for: | ||||||||||||||||||
Contract adjustments (1) | (63,401 | ) | 94,658 | 180,278 | (163,745 | ) | ||||||||||||
Doubtful accounts (2) | 3,612 | (78,930 | ) | (400,680 | ) | (66,355 | ) | |||||||||||
Transfer of reserves to allowance for project disallowances (3) | --- | (12,500 | ) | --- | (22,500 | ) | ||||||||||||
Balance at end of period | $ | 5,906,452 | $ | 5,340,200 | $ | 5,906,452 | $ | 5,340,200 | ||||||||||
-1 | Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations. | |||||||||||||||||
-2 | Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations. | |||||||||||||||||
-3 | Refer to Note 11 of these condensed consolidated financial statements for a summary of the allowance for project disallowances. |
Lines_of_Credit_Tables
Lines of Credit (Tables) | 9 Months Ended | ||||||||
2-May-15 | |||||||||
Lines of Credit [Abstract] | |||||||||
Unsecured Lines of Credit | Unsecured lines of credit are summarized in the following table. | ||||||||
Balance at | |||||||||
May 2, | July 31, | ||||||||
2015 | 2014 | ||||||||
Outstanding cash draws, recorded as lines of credit on the accompanying condensed consolidated balance sheets | $ | 1,495,701 | $ | 1,572,466 | |||||
Outstanding letters of credit to support operations | 904,761 | 1,944,994 | |||||||
Total amounts used under lines of credit | 2,400,462 | 3,517,460 | |||||||
Remaining amounts available under lines of credit | 31,968,538 | 30,851,540 | |||||||
Total approved unsecured lines of credit | $ | 34,369,000 | $ | 34,369,000 |
Debt_and_Capital_Lease_Obligat1
Debt and Capital Lease Obligations (Tables) | 9 Months Ended | ||||||||
2-May-15 | |||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||
Debt Inclusive of Capital Lease Obligations | Debt and capital lease obligations are summarized in the following table. | ||||||||
Balance at | |||||||||
May 2, | July 31, | ||||||||
2015 | 2014 | ||||||||
Various bank loans and advances at interest rates ranging from 3.25% to 14% | $ | 648,129 | $ | 676,874 | |||||
Capital lease obligations at varying interest rates averaging 8% | 357,424 | 165,632 | |||||||
1,005,553 | 842,506 | ||||||||
Current portion of long-term debt and capital lease obligations | (561,025 | ) | (420,737 | ) | |||||
Long-term debt and capital lease obligations | $ | 444,528 | $ | 421,769 | |||||
Aggregate Maturities of Long-term Debt and Capital Lease Obligations | The aggregate maturities of long-term debt and capital lease obligations as of May 2, 2015 are summarized in the following table. | ||||||||
May 2015 – April 2016 | $ | 561,025 | |||||||
May 2016 – April 2017 | 223,392 | ||||||||
May 2017 – April 2018 | 182,074 | ||||||||
May 2018 – April 2019 | 13,788 | ||||||||
Thereafter | 25,274 | ||||||||
Total | $ | 1,005,553 |
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Other Accrued Liabilities [Abstract] | |||||||||||||||||
Other Accrued Liabilities | Other accrued liabilities are summarized in the following table. | ||||||||||||||||
Balance at | |||||||||||||||||
May 2, | July 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Allowance for project disallowances | $ | 2,242,813 | $ | 2,393,351 | |||||||||||||
Other | 1,533,092 | 1,841,911 | |||||||||||||||
Total other accrued liabilities | $ | 3,775,905 | $ | 4,235,262 | |||||||||||||
Allowance for Project Disallowances | Activity within the allowance for project disallowances is summarized in the following table. | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
May 2, | April 30, | May 2, | April 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Balance at beginning of period | $ | 2,242,813 | $ | 2,673,351 | $ | 2,393,351 | $ | 2,663,351 | |||||||||
Net change during the period | --- | (287,500 | ) | (150,538 | ) | (277,500 | ) | ||||||||||
Balance at end of period | $ | 2,242,813 | $ | 2,385,851 | $ | 2,242,813 | $ | 2,385,851 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | ||||||||
2-May-15 | |||||||||
Shareholders' Equity [Abstract] | |||||||||
Effects of Changes in Ownership Interest in Subsidiaries | Transactions to acquire ownership interest from noncontrolling shareholders during the nine months ended May 2, 2015 and during the fiscal year ended July 31, 2014, which were recorded at amounts that approximated fair value, are summarized in the following table. | ||||||||
Nine Months | Fiscal Year | ||||||||
Ended | Ended | ||||||||
2-May-15 | 31-Jul-14 | ||||||||
Purchases of noncontrolling interests: | |||||||||
Purchase of 2,800 Gustavson common shares (1) | $ | 287,625 | $ | --- | |||||
Purchase of 344 Walsh common shares (2) | --- | 5,653 | |||||||
Purchase of 3,705 Walsh common shares (3) | --- | 1,120,749 | |||||||
Purchase of 100 Walsh common shares (4) | --- | 30,250 | |||||||
Total purchases of additional noncontrolling interests (5) | $ | 287,625 | $ | 1,156,652 | |||||
-1 | In January 2015, Gustavson Associates, LLC (“Gustavson”), a majority owned indirect subsidiary of EEI, purchased an additional 7.2% of its outstanding common shares from noncontrolling shareholders for $0.3 million. The purchase price was paid as follows: (i) approximately $0.1 million of cash paid on the transaction date; and (ii) approximately $0.2 million payable in 3 annual installments plus interest accrued at 6% per annum. EEI’s indirect ownership of Gustavson increased to 83.6% as a result of this transaction. | ||||||||
-2 | In January 2014, EEI purchased an additional 0.9% of Walsh from noncontrolling shareholders for $0.1 million in cash. Walsh became a wholly-owned subsidiary of EEI as a result of these transactions. | ||||||||
-3 | In October 2013, EEI purchased an additional 9.4% of Walsh for $1.6 million. The purchase price was paid as follows: (i) one third in cash payable on the transaction consummation date; (ii) one third payable with EEI Common Stock on the transaction consummation date; and (iii) one third payable in two annual installments plus interest accrued at 3.25% per annum. | ||||||||
-4 | In October 2013, EEI purchased an additional 0.2% of Walsh for less than $0.1 million in cash. | ||||||||
-5 | Purchases of additional noncontrolling interests are recorded as reductions of shareholders’ equity on the condensed consolidated statements of shareholders’ equity. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Computation of Earnings Per Share | The computation of earnings per share is included in the following table. | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
May 2, | April 30, | May 2, | April 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net (loss) income attributable to Ecology and Environment, Inc. | $ | 1,794,176 | $ | (322,864 | ) | $ | 2,489,005 | $ | (727,121 | ) | |||||||
Dividends declared | --- | --- | (1,033,071 | ) | (1,033,551 | ) | |||||||||||
Balance at end of period | $ | 1,794,176 | $ | (322,864 | ) | $ | 1,455,934 | $ | (1,760,672 | ) | |||||||
Weighted-average common shares outstanding (basic and diluted) | 4,287,460 | 4,289,900 | 4,288,067 | 4,282,348 | |||||||||||||
Distributed earnings per share | $ | --- | $ | --- | $ | 0.24 | $ | 0.24 | |||||||||
Undistributed earnings per share | 0.42 | (0.08 | ) | 0.34 | (0.41 | ) | |||||||||||
Total earnings per share | $ | 0.42 | $ | (0.08 | ) | $ | 0.58 | $ | (0.17 | ) |
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting | The Company reports segment information based on the geographic location of its customers (for revenues) and the location of its offices (for long-lived assets). Revenue and long-lived assets by business segment are summarized in the following tables. | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
May 2, | April 30, | May 2, | April 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Revenue, net by geographic location: | |||||||||||||||||
United States | $ | 21,577,386 | $ | 19,721,145 | $ | 60,995,999 | $ | 61,328,509 | |||||||||
Foreign countries (1) | 8,767,185 | 11,782,754 | 30,700,884 | 34,001,953 | |||||||||||||
-1 | Significant foreign revenues included revenues in Peru ($5.0 million and $5.5 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $17.3 million and $13.9 million for the nine months ended May 2, 2015 and April 30, 2014, respectively), Brazil ($1.4 million and $3.5 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $6.5 million and $10.1 million for the nine months ended May 2, 2015 and April 30, 2014, respectively) and Chile ($1.7 million and $2.3 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $4.8 million and $7.0 million for the nine months ended May 2, 2015 and April 30, 2014, respectively). | ||||||||||||||||
Balance at | |||||||||||||||||
May 2, | July 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Long-Lived Assets by geographic location: | |||||||||||||||||
United States | $ | 27,060,193 | $ | 31,170,634 | |||||||||||||
Foreign countries | 5,532,497 | 5,386,736 |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Details) | 9 Months Ended |
2-May-15 | |
Country | |
Discipline | |
Subsidiary | |
Project | |
Organization and Basis of Presentation [Abstract] | |
Number of wholly owned and majority owned operating subsidiaries | 19 |
Number of countries in which the company operates | 12 |
Number of disciplines | 80 |
Number of projects for clients | 50,000 |
Minimum number of countries in which the company completed projects | 120 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | 2-May-15 | Jul. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||
Maturity period considered for highly liquid instruments to be cash equivalents | 3 months | |
Money market funds | $0.10 | $0.30 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 9 Months Ended | 12 Months Ended |
2-May-15 | Jul. 31, 2014 | |
Maximum [Member] | ||
Assets [Abstract] | ||
Gross unrealized gains | $100,000 | $100,000 |
Recurring [Member] | ||
Assets [Abstract] | ||
Investment securities available for sale | 1,430,554 | 1,407,277 |
Recurring [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investment securities available for sale | 1,430,554 | 1,407,277 |
Recurring [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investment securities available for sale | $0 | $0 |
Revenue_and_Contract_Receivabl2
Revenue and Contract Receivables, net (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
2-May-15 | Apr. 30, 2014 | 2-May-15 | Apr. 30, 2014 | Jul. 31, 2014 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Billed Contracts Receivable | $23,686,190 | $23,686,190 | $26,863,708 | ||||||
Unbilled Contracts Receivable | 23,918,858 | 23,918,858 | 23,694,451 | ||||||
Contracts Receivable, Gross | 47,605,048 | 47,605,048 | 50,558,159 | ||||||
Allowance for doubtful accounts and contract adjustments | -5,906,452 | -5,340,200 | -5,906,452 | -5,340,200 | |||||
Total contract receivables, net | 41,698,596 | 41,698,596 | 44,431,305 | ||||||
Contractual retainage balance included under billed contract receivable | 0 | 0 | 0 | ||||||
Management anticipation for receivables collection | 1 year | ||||||||
Contract receivables (in hundredths) | 14.00% | 14.00% | 14.00% | ||||||
Allowance for doubtful accounts receivables (in hundredths) | 89.00% | 89.00% | 74.00% | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||
Balance at beginning of period | 5,966,241 | 5,336,972 | 6,126,854 | 5,592,800 | |||||
Net increase (decrease) due to adjustments in the allowance for contract adjustments | -63,401 | [1] | 94,658 | [1] | 180,278 | [1] | -163,745 | [1] | |
Net increase (decrease) due to adjustments in the allowance for doubtful accounts | 3,612 | [2] | -78,930 | [2] | -400,680 | [2] | -66,355 | [2] | |
Transfer of reserves to allowance for project disallowances | 0 | [3] | -12,500 | [3] | 0 | [3] | -22,500 | [3] | |
Balance at end of period | 5,906,452 | 5,340,200 | 5,906,452 | 5,340,200 | |||||
United States, Canada and South America [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Contracts Receivable, Gross | 40,773,324 | 40,773,324 | 43,394,442 | ||||||
Allowance for doubtful accounts and contract adjustments | 625,878 | 625,878 | 1,611,068 | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||
Balance at beginning of period | -1,611,068 | ||||||||
Balance at end of period | -625,878 | -625,878 | -1,611,068 | ||||||
Middle East and Africa [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Contracts Receivable, Gross | 6,758,478 | 6,758,478 | 7,010,225 | ||||||
Allowance for doubtful accounts and contract adjustments | 5,273,574 | 5,273,574 | 4,386,240 | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||
Balance at beginning of period | -4,386,240 | ||||||||
Balance at end of period | -5,273,574 | -5,273,574 | -4,386,240 | ||||||
Asia [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Contracts Receivable, Gross | 73,246 | 73,246 | 153,492 | ||||||
Allowance for doubtful accounts and contract adjustments | 7,000 | 7,000 | 129,546 | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||
Balance at beginning of period | -129,546 | ||||||||
Balance at end of period | ($7,000) | ($7,000) | ($129,546) | ||||||
[1] | Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations. | ||||||||
[2] | Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations. | ||||||||
[3] | Refer to Note 11 of these condensed consolidated financial statements for a summary of the allowance for project disallowances. |
Property_Building_and_Equipmen1
Property, Building and Equipment, net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | 2-May-15 | Apr. 30, 2014 | 2-May-15 | Apr. 30, 2014 |
Capitalized Software Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Unamortized software development costs | $0.20 | $1.50 | $0.20 | $1.50 |
Computer Software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization expense | $0.10 | $0.70 | $0.10 | $2 |
Goodwill_Details
Goodwill (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
2-May-15 | Apr. 30, 2014 | Jul. 31, 2011 | Jul. 31, 2014 | |
Goodwill [Abstract] | ||||
Goodwill | $1,100,000 | $1,200,000 | ||
Goodwill from acquisition | 100,000 | |||
Impairment of goodwill | $103,547 | $0 |
Lines_of_Credit_Details
Lines of Credit (Details) (USD $) | 9 Months Ended | |
2-May-15 | Jul. 31, 2014 | |
Lines of Credit [Abstract] | ||
Outstanding cash draws, recorded as lines of credit on the accompanying condensed consolidated balance sheets | $1,495,701 | $1,572,466 |
Outstanding letters of credit to support operations | 904,761 | 1,944,994 |
Total amounts used under lines of credit | 2,400,462 | 3,517,460 |
Remaining amounts available under lines of credit | 31,968,538 | 30,851,540 |
Total approved unsecured lines of credit | $34,369,000 | $34,369,000 |
Interest rate, minimum (in hundredths) | 2.50% | |
Interest rate, maximum (in hundredths) | 3.00% |
Debt_and_Capital_Lease_Obligat2
Debt and Capital Lease Obligations (Details) (USD $) | 9 Months Ended | 12 Months Ended |
2-May-15 | Jul. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Current and Noncurrent | $1,005,553 | $842,506 |
Current portion of long-term debt and capital lease obligations | -561,025 | -420,737 |
Long-term debt and capital lease obligations | 444,528 | 421,769 |
Interest rate, minimum (in hundredths) | 2.50% | |
Interest rate, maximum (in hundredths) | 3.00% | |
Long-term Debt, by Maturity [Abstract] | ||
May 2015 - April 2016 | 561,025 | |
May 2016 - April 2017 | 223,392 | |
May 2017 - April 2018 | 182,074 | |
May 2018 - April 2019 | 13,788 | |
Thereafter | 25,274 | |
Total | 1,005,553 | 842,506 |
Various Bank Loans and Advances [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Current and Noncurrent | 648,129 | 676,874 |
Interest rate, minimum (in hundredths) | 3.25% | 3.25% |
Interest rate, maximum (in hundredths) | 14.00% | 14.00% |
Long-term Debt, by Maturity [Abstract] | ||
Total | 648,129 | 676,874 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Current and Noncurrent | 357,424 | 165,632 |
Average interest rate (in hundredths) | 8.00% | 8.00% |
Long-term Debt, by Maturity [Abstract] | ||
Total | $357,424 | $165,632 |
Income_Taxes_Details
Income Taxes (Details) | 9 Months Ended | |
2-May-15 | Apr. 30, 2014 | |
Income Taxes [Abstract] | ||
Estimated effective tax rate (in hundredths) | 41.60% | 26.40% |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
2-May-15 | Apr. 30, 2014 | 2-May-15 | Apr. 30, 2014 | Jul. 31, 2014 | |
Other Accrued Liabilities [Abstract] | |||||
Allowance for project disallowances | $2,242,813 | $2,385,851 | $2,242,813 | $2,385,851 | |
Other | 1,533,092 | 1,533,092 | 1,841,911 | ||
Total other accrued liabilities | 3,775,905 | 3,775,905 | 4,235,262 | ||
Allowance for Project Disallowances [Roll Forward] | |||||
Balance at beginning of period | 2,242,813 | 2,673,351 | 2,393,351 | 2,663,351 | |
Net change during the period | 0 | -287,500 | -150,538 | -277,500 | |
Balance at end of period | 2,242,813 | 2,385,851 | 2,242,813 | 2,385,851 | |
Reduction of reserves recorded in prior fiscal years | 100,000 | ||||
Additions to revenues and contract adjustment | $100,000 | $300,000 |
Stock_Award_Plan_Details
Stock Award Plan (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | |
In Millions, except Share data, unless otherwise specified | 2-May-15 | Jul. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | Oct. 31, 2011 |
Class of Stock [Line Items] | |||||
Term of the award plan | 5 years | ||||
Share-based award, vesting period | 3 years | ||||
Excess tax benefits accumulated in Capital in Excess of Par Value | $0.10 | $0.10 | |||
Maximum [Member] | |||||
Class of Stock [Line Items] | |||||
Compensation expense | 0.1 | 0.3 | |||
Unrecognized compensation expense | 0.1 | ||||
Class A [Member] | |||||
Class of Stock [Line Items] | |||||
Shares awarded (in shares) | 16,387 | 62,099 | |||
Shares awarded, value | $0.20 | $0.90 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||
Aug. 31, 2014 | Aug. 31, 2013 | 2-May-15 | Apr. 30, 2014 | 2-May-15 | Apr. 30, 2014 | Jul. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2013 | Aug. 31, 2010 | |||
Installment | Installment | ||||||||||||
Cash Dividends [Abstract] | |||||||||||||
Cash dividends declared | $0 | $0 | $1,033,071 | $1,033,551 | |||||||||
Dividends paid | 1,000,000 | 1,000,000 | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Total purchases of additional non controlling interests | 287,625 | [1] | 1,156,652 | [1] | |||||||||
Purchase of noncontrolling interest | 50,000 | 689,361 | |||||||||||
Noncontrolling Interest [Member] | |||||||||||||
Cash Dividends [Abstract] | |||||||||||||
Cash dividends declared | 0 | 0 | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Total purchases of additional non controlling interests | 199,531 | 1,156,652 | |||||||||||
Noncontrolling Interest [Member] | Gustavson [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Interest purchased (in hundredths) | 7.20% | ||||||||||||
Purchase of noncontrolling interest | 300,000 | ||||||||||||
Purchase of noncontrolling interest, 1st installment | 100,000 | ||||||||||||
Purchase of noncontrolling interest, 2nd and 3rd installment | 200,000 | ||||||||||||
Increase in indirect ownership (in hundredths) | 83.60% | 83.60% | |||||||||||
Number of annual installments | 3 | ||||||||||||
Interest on promissory notes (in hundredths) | 6.00% | 6.00% | |||||||||||
Noncontrolling Interest [Member] | 2800 Gustavson [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Total purchases of additional non controlling interests | 287,625 | [2] | 0 | [2] | |||||||||
Noncontrolling interests shares purchased (in shares) | 2,800 | ||||||||||||
Noncontrolling Interest [Member] | 344 Walsh [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Total purchases of additional non controlling interests | 0 | [3] | 5,653 | [3] | |||||||||
Noncontrolling interests shares purchased (in shares) | 344 | ||||||||||||
Interest purchased (in hundredths) | 0.90% | ||||||||||||
Purchase of noncontrolling interest | 100,000 | ||||||||||||
Noncontrolling Interest [Member] | 3,705 Walsh [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Total purchases of additional non controlling interests | 0 | [4] | 1,120,749 | [4] | |||||||||
Noncontrolling interests shares purchased (in shares) | 3,705 | ||||||||||||
Interest purchased (in hundredths) | 9.40% | ||||||||||||
Purchase of noncontrolling interest | 1,600,000 | ||||||||||||
Percentage of acquisition paid in cash (in hundredths) | 33.33% | ||||||||||||
Percentage of acquisition paid with stock (in hundredths) | 33.33% | ||||||||||||
Percentage of acquisition paid with promissory note (in hundredths) | 33.33% | ||||||||||||
Number of annual installments | 2 | ||||||||||||
Portion of principal of acquisition paid on promissory note (in hundredths) | 50.00% | ||||||||||||
Interest on promissory notes (in hundredths) | 3.25% | ||||||||||||
Noncontrolling Interest [Member] | 100 Walsh [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Total purchases of additional non controlling interests | 0 | [5] | 30,250 | [5] | |||||||||
Noncontrolling interests shares purchased (in shares) | 100 | ||||||||||||
Interest purchased (in hundredths) | 0.20% | ||||||||||||
Purchase of noncontrolling interest | 100,000 | ||||||||||||
Class A [Member] | |||||||||||||
Class A and Class B common stock [Abstract] | |||||||||||||
Percentage equity holders entitled to elect Board of Directors (in hundredths) | 25.00% | ||||||||||||
Minimum percentage of the number of outstanding Class A shares to combined classes of shares (in hundredths) | 10.00% | ||||||||||||
Voting power of Class A common share holders to the Class B common share holders (in hundredths) | 10.00% | ||||||||||||
Stock Repurchase [Abstract] | |||||||||||||
Number of shares authorized to be repurchased (in shares) | 122,918 | 122,918 | 200,000 | ||||||||||
Number of Class A share acquired (in shares) | 0 | 16,091 | 0 | 16,091 | |||||||||
Acquisition cost | $0 | $200,000 | $0 | $200,000 | |||||||||
Remaining number of shares authorized to be repurchased (in shares) | 77,082 | 77,082 | |||||||||||
[1] | Purchases of additional noncontrolling interests are recorded as reductions of shareholders' equity on the condensed consolidated statements of shareholders' equity. | ||||||||||||
[2] | In January 2015, Gustavson Associates, LLC ("Gustavson"), a majority owned indirect subsidiary of EEI, purchased an additional 7.2% of its outstanding common shares from noncontrolling shareholders for $0.3 million. The purchase price was paid as follows: (i) approximately $0.1 million of cash paid on the transaction date; and (ii) approximately $0.2 million payable in 3 annual installments plus interest accrued at 6% per annum. EEI's indirect ownership of Gustavson increased to 83.6% as a result of this transaction. | ||||||||||||
[3] | In January 2014, EEI purchased an additional 0.9% of Walsh from noncontrolling shareholders for $0.1 million in cash. Walsh became a wholly-owned subsidiary of EEI as a result of these transactions. | ||||||||||||
[4] | In October 2013, EEI purchased an additional 9.4% of Walsh for $1.6 million. The purchase price was paid as follows: (i) one third in cash payable on the transaction consummation date; (ii) one third payable with EEI Common Stock on the transaction consummation date; and (iii) one third payable in two annual installments plus interest accrued at 3.25% per annum. | ||||||||||||
[5] | In October 2013, EEI purchased an additional 0.2% of Walsh for less than $0.1 million in cash. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
2-May-15 | Apr. 30, 2014 | 2-May-15 | Apr. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to Ecology and Environment, Inc. | $1,794,176 | ($322,864) | $2,489,005 | ($727,121) |
Dividends declared | 0 | 0 | -1,033,071 | -1,033,551 |
Balance at end of period | $1,794,176 | ($322,864) | $1,455,934 | ($1,760,672) |
Weighted-average common shares outstanding (basic and diluted) (in shares) | 4,287,460 | 4,289,900 | 4,288,067 | 4,282,348 |
Distributed earnings per share (in dollars per share) | $0 | $0 | $0.24 | $0.24 |
Undistributed earnings per share (in dollars per share) | $0.42 | ($0.08) | $0.34 | ($0.41) |
Total earnings per share (in dollars per share) | $0.42 | ($0.08) | $0.58 | ($0.17) |
Minimum percentage right of Class B common stock holders to elect Board of Directors (in hundredths) | 75.00% |
Segment_Reporting_Details
Segment Reporting (Details) (Reportable Geographical Components [Member], USD $) | 3 Months Ended | 9 Months Ended | |||||||
2-May-15 | Apr. 30, 2014 | 2-May-15 | Apr. 30, 2014 | Jul. 31, 2014 | |||||
United States [Member] | |||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||
Revenue | $21,577,386 | $19,721,145 | $60,995,999 | $61,328,509 | |||||
Long-Lived Assets | 27,060,193 | 27,060,193 | 31,170,634 | ||||||
Foreign Countries [Member] | |||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||
Revenue | 8,767,185 | [1] | 11,782,754 | [1] | 30,700,884 | [1] | 34,001,953 | [1] | |
Long-Lived Assets | 5,532,497 | 5,532,497 | 5,386,736 | ||||||
Peru [Member] | |||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||
Revenue | 5,000,000 | 5,500,000 | 17,300,000 | 13,900,000 | |||||
Brazil [Member] | |||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||
Revenue | 1,400,000 | 3,500,000 | 6,500,000 | 10,100,000 | |||||
Chile [Member] | |||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||
Revenue | $1,700,000 | $2,300,000 | $4,800,000 | $7,000,000 | |||||
[1] | Significant foreign revenues included revenues in Peru ($5.0 million and $5.5 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $17.3 million and $13.9 million for the nine months ended May 2, 2015 and April 30, 2014, respectively), Brazil ($1.4 million and $3.5 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $6.5 million and $10.1 million for the nine months ended May 2, 2015 and April 30, 2014, respectively) and Chile ($1.7 million and $2.3 million for the three months ended May 2, 2015 and April 30, 2014, respectively, and $4.8 million and $7.0 million for the nine months ended May 2, 2015 and April 30, 2014, respectively). |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 9 Months Ended | ||||
2-May-15 | 2-May-15 | 2-May-15 | 2-May-15 | 2-May-15 | |
City of Denver [Member] | Walsh Environmental Scientists and Engineers [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Settled Litigation [Member] | |
USD ($) | USD ($) | Ecology and Environment do Brasil LTDA [Member] | Ecology and Environment do Brasil LTDA [Member] | Ecology and Environment do Brasil LTDA [Member] | |
USD ($) | BRL | Employee | |||
Employee | Employee | ||||
Loss Contingencies [Line Items] | |||||
Penalty | $200,000 | $100,000 | |||
Supplemental environmental project | 100,000 | ||||
Indemnity claim settlement | 100,000 | ||||
Loss contingency, estimate of possible loss | $200,000 | 520,000 | |||
Number of employees individually served with notices of infraction | 4 | 4 | |||
Number of employees individually served with claim of violations dismissed | 1 | ||||
Number of employees that have fines assessed against them, which are being appealed | 2 | ||||
Number of employees individually awaiting agency determinations | 1 |