Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jan. 26, 2019 | Apr. 30, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | ECOLOGY & ENVIRONMENT INC | |
Entity Central Index Key | 0000809933 | |
Current Fiscal Year End Date | --07-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 26, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,110,130 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,205,005 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jan. 26, 2019 | Jul. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 11,017 | $ 13,496 |
Investment securities available for sale | 1,512 | 1,497 |
Contract receivables, net | 25,946 | 25,615 |
Income tax receivable | 1,627 | 1,230 |
Other current assets | 2,539 | 1,752 |
Total current assets | 42,641 | 43,590 |
Property, buildings and equipment, net of accumulated depreciation of $17,250 and $16,799, respectively | 3,589 | 3,870 |
Deferred income taxes | 788 | 789 |
Equity method investment | 2,289 | 2,058 |
Other assets | 2,222 | 2,522 |
Total assets | 51,529 | 52,829 |
Current liabilities: | ||
Accounts payable | 6,108 | 5,635 |
Lines of credit | 222 | 0 |
Accrued payroll costs | 4,915 | 6,066 |
Current portion of long-term debt and capital lease obligations | 45 | 54 |
Customer deposits | 2,851 | 3,191 |
Other accrued liabilities | 1,435 | 1,382 |
Total current liabilities | 15,576 | 16,328 |
Income taxes payable | 0 | 0 |
Deferred income taxes | 0 | 0 |
Long-term debt and capital lease obligations | 34 | 54 |
Commitments and contingencies (Note 13) | ||
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 | 17,629 | 17,558 |
Retained earnings | 20,539 | 20,973 |
Accumulated other comprehensive loss | (1,893) | (1,885) |
Treasury stock, at cost (Class A common: 13,789 and 15,789 shares, respectively; Class B common: 64,801 shares at both dates) | (884) | (907) |
Total Ecology and Environment, Inc. shareholders' equity | 35,435 | 35,783 |
Noncontrolling interests | 484 | 664 |
Total shareholders' equity | 35,919 | 36,447 |
Total liabilities and shareholders' equity | 51,529 | 52,829 |
Class A [Member] | ||
Shareholders' equity: | ||
Common stock | 31 | 30 |
Class B [Member] | ||
Shareholders' equity: | ||
Common stock | $ 13 | $ 14 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jan. 26, 2019 | Jul. 31, 2018 |
Assets | ||
Property, building and equipment, accumulated depreciation | $ 17,250 | $ 16,799 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Class A [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Common stock, shares issued (in shares) | 3,102,654 | 3,041,911 |
Treasury stock (in shares) | 13,789 | 15,789 |
Class B [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 1,291,071 | 1,351,814 |
Treasury stock (in shares) | 64,801 | 64,801 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Condensed Consolidated Statements of Operations (Unaudited) [Abstract] | ||||
Gross revenue | $ 20,252 | $ 21,289 | $ 42,004 | $ 47,394 |
Cost of professional services and other direct operating expenses | 7,774 | 7,966 | 15,908 | 16,584 |
Subcontract costs | 3,619 | 4,429 | 8,193 | 10,778 |
Selling, general and administrative expenses | 9,452 | 9,483 | 18,652 | 19,265 |
Depreciation and amortization | 264 | 259 | 541 | 519 |
(Loss) income from operations | (857) | (848) | (1,290) | 248 |
Income from equity method investment | 171 | 221 | 231 | 239 |
Net interest income (expense) | 45 | (4) | 98 | (2) |
Net foreign exchange gain (loss) | (15) | (25) | 8 | (20) |
Other income (expense) | (19) | 12 | 9 | 12 |
(Loss) income before income tax provision | (675) | (644) | (944) | 477 |
Income tax (benefit) provision | (365) | (116) | (519) | 317 |
Net (loss) income | (310) | (528) | (425) | 160 |
Net loss (income) attributable to noncontrolling interests | 1 | 9 | (4) | (91) |
Net (loss) income attributable to Ecology and Environment Inc. | $ (309) | $ (519) | $ (429) | $ 69 |
Net (loss) income per common share: basic and diluted (in dollars per share) | $ (0.07) | $ (0.12) | $ (0.10) | $ 0.02 |
Weighted average common shares outstanding: basic and diluted (in shares) | 4,315,135 | 4,301,604 | 4,314,543 | 4,301,604 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net (loss) income including noncontrolling interests | $ (310) | $ (528) | $ (425) | $ 160 |
Foreign currency translation adjustments | 47 | 51 | (80) | 37 |
Unrealized investment losses, net | 0 | (13) | 0 | (16) |
Comprehensive (loss) income | (263) | (490) | (505) | 181 |
Comprehensive (income) loss attributable to noncontrolling interests | 8 | (29) | 63 | (123) |
Comprehensive (loss) income attributable to Ecology and Environment, Inc. | $ (255) | $ (519) | $ (442) | $ 58 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 26, 2019 | Jan. 27, 2018 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (425) | $ 160 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 541 | 519 |
Provision for deferred income taxes | (6) | (92) |
Share based compensation expense | 127 | 70 |
Gain on sale of assets and investment securities | (2) | (1) |
Net provision for (recovery of) contract adjustments | 137 | (35) |
Net bad debt (recovery) expense | (187) | (98) |
Changes in: | ||
- contract receivables | (247) | 6,823 |
- other current assets | (916) | (150) |
- income tax receivable | (381) | 668 |
- equity method investment | (231) | (239) |
- other non-current assets | 277 | 36 |
- accounts payable | 1,322 | (1,485) |
- accrued payroll costs | (1,162) | (740) |
- income taxes payable | 0 | 302 |
- customer deposits | (345) | 558 |
- other accrued liabilities | 43 | (216) |
Net cash (used in) provided by operating activities | (1,455) | 6,080 |
Cash flows from investing activities: | ||
Purchase of property, building and equipment | (259) | (415) |
Proceeds from sale of equipment | 2 | 1 |
(Purchase) sale of investment securities | (16) | 7 |
Net cash used in investing activities | (273) | (407) |
Cash flows from financing activities: | ||
Dividends paid | (863) | (860) |
Repayment of debt | (29) | (358) |
Net borrowings under lines of credit | 210 | 66 |
Distributions to noncontrolling interests | (116) | (192) |
Net cash used in financing activities | (798) | (1,344) |
Effect of exchange rate changes on cash and cash equivalents | 49 | 5 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (2,477) | 4,334 |
Cash, cash equivalents and restricted cash at beginning of period | 13,746 | 13,135 |
Cash, cash equivalents and restricted cash at end of period | 11,269 | 17,469 |
Cash paid during the period for: | ||
Interest | 8 | 31 |
Income taxes | 300 | 12 |
Supplemental disclosure of non-cash items: | ||
Proceeds from capital lease obligations | $ 0 | $ 33 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jan. 26, 2019 | |
Organization and Basis of Presentation [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Ecology and Environment Inc., (“EEI”) 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. During the six months ended January 26, 2019, EEI and its subsidiaries (collectively, the “Company”) included six active wholly-owned and majority-owned operating subsidiaries located in four countries (the United States of America (the “U.S.”), Brazil, Peru, and Ecuador), and one majority-owned equity investment in Chile. The Company’s staff is comprised of individuals representing numerous scientific, engineering, health, and social disciplines working together in multidisciplinary teams to provide innovative environmental solutions. The majority of employees hold bachelor’s and/or advanced degrees in such areas as chemical, civil, mechanical, sanitary, soil, structural and transportation engineering, biology, geology, hydrogeology, ecology, urban and regional planning and oceanography. The Company’s client list includes governments, industries, multinational corporations, organizations, and private companies. The Company prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. 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 note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), 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, 2018 filed with the SEC (the “2018 Annual Report”). Other than new or revised accounting policies resulting from the adoption of new accounting pronouncements described in Note 3 of these condensed consolidated financial statements, the accounting policies followed by the Company for preparation of the consolidated financial statements included in the 2018 Annual Report were also followed for this quarterly report. The condensed consolidated results of operations for the three and six months ended January 26, 2019 are not necessarily indicative of the results for any subsequent period or the entire fiscal year ending July 31, 2019. |
Restatement of Unaudited Conden
Restatement of Unaudited Condensed Consolidated Financial Statements | 6 Months Ended |
Jan. 26, 2019 | |
Restatement of Unaudited Condensed Consolidated Financial Statements [Abstract] | |
Restatement of Unaudited Condensed Consolidated Financial Statements | 2. Restatement of Unaudited Condensed Consolidated Financial Statements As previously disclosed in the Current Report on Form 8-K filed by the Company with the SEC on December 12, 2018, the Audit Committee of the Board of Directors (the “Audit Committee”) determined ’ ’ “ ” ’ The Company had previously included GAC ’ ’ ’ ’ Collectively, the adjustments necessary to deconsolidate GAC ’ ’ “ .” In addition to the GAC Deconsolidation Adjustments, previously filed financial statements for the quarter and six months ended October 28, 2017 were also adjusted for correction of other errors in the financial statements and disclosures that were deemed to be immaterial on an individual basis and in the aggregate for those reporting periods (the “ ” . The “As Previously Reported” amounts in the tables below represent the amounts reported in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended January 26, 2018, filed with the SEC on March 13, 2018. Ecology and Environment Inc. Condensed Consolidated Statements of Operations (amounts in thousands, except share data) Three Months Ended January 27, 2018 As Previously Reported GAC Deconsolidation Adjustments Out of Period Adjustments Restated Gross revenue $ 25,083 $ (3,154 ) $ (640 ) $ 21,289 Direct cost of professional services and other direct operating expenses 9,078 (1,112 ) - 7,966 Subcontract costs 5,769 (731 ) (609 ) 4,429 Selling, general and administrative expenses 10,228 (745 ) - 9,483 Depreciation and amortization 268 (9 ) - 259 Income (loss) from operations (260 ) (557 ) (31 ) (848 ) Income from equity method investment - 221 - 221 Net interest income (expense) (9 ) 5 - (4 ) Net foreign exchange (loss) gain (29 ) 4 - (25 ) Other income (expense) 12 - - 12 Income (loss) before income tax provision (286 ) (327 ) (31 ) (644 ) Income tax provision 311 (148 ) (279 ) (116 ) Net (loss) income (597 ) (179 ) 248 (528 ) (Income) loss attributable to noncontrolling interests (171 ) 179 1 9 Net (loss) income attributable to Ecology and Environment Inc. $ (768 ) $ - $ 249 $ (519 ) Net (loss) income per common share: basic and diluted $ (0.18 ) $ (0.12 ) Weighted average common shares outatanding: basic and diluted 4,301,604 4,301,604 Six Months Ended January 27, 2018 As Previously Reported GAC Deconsolidation Adjustments Out of Period Adjustments Restated Gross revenue $ 52,165 $ (5,266 ) $ 495 $ 47,394 Direct cost of professional services and other direct operating expenses 18,559 (1,975 ) - 16,584 Subcontract costs 11,498 (1,190 ) 470 10,778 Selling, general and administrative expenses 20,737 (1,472 ) - 19,265 Depreciation and amortization 537 (18 ) - 519 Income (loss) from operations 834 (611 ) 25 248 Income from equity method investment - 239 - 239 Net interest income (expense) (14 ) 12 - (2 ) Net foreign exchange (loss) gain (26 ) 6 - (20 ) Other income (expense) 12 - - 12 Income (loss) before income tax provision 806 (354 ) 25 477 Income tax provision 755 (160 ) (278 ) 317 Net (loss) income 51 (194 ) 303 160 (Income) loss attributable to noncontrolling interests (286 ) 194 1 (91 ) Net (loss) income attributable to Ecology and Environment Inc. $ (235 ) $ - $ 304 $ 69 Net (loss) income per common share: basic and diluted $ (0.05 ) $ 0.02 Weighted average common shares outatanding: basic and diluted 4,301,604 4,301,604 Ecology and Environment Inc. Condensed Consolidated Statements of Comprehensive Income (amounts in thousands) Three Months Ended January 27, 2018 As Previously Reported GAC Deconsolidation Adjustments Out of Period Adjustments Restated Net income including noncontrolling interests $ (597 ) $ (179 ) $ 248 $ (528 ) Foreign currency translation adjustments 166 (115 ) - 51 Unrealized investment (losses) gains, net (13 ) - - (13 ) Comprehensive income (444 ) (294 ) 248 (490 ) Comprehensive (income) loss attributable to noncontrolling interests (264 ) 235 - (29 ) Comprehensive income attributable to EEI $ (708 ) $ (59 ) $ 248 $ (519 ) Six Months Ended January 27, 2018 As Previously Reported GAC Deconsolidation Adjustments Out of Period Adjustments Restated Net income including noncontrolling interests $ 51 $ (194 ) $ 303 $ 160 Foreign currency translation adjustments 195 (158 ) - 37 Unrealized investment (losses) gains, net (16 ) - - (16 ) Comprehensive income 230 (352 ) 303 181 Comprehensive (income) loss attributable to noncontrolling interests (393 ) 270 - (123 ) Comprehensive income attributable to EEI $ (163 ) $ (82 ) $ 303 $ 58 Ecology and Environment Inc. Condensed Consolidated Statement of Cash Flows (amounts in thousands) Six Months Ended January 27, 2018 As Previously Reported Impact of GAC Deconsolidation Other Adjustments Restated Cash flows from operating activities: Net income $ 51 $ (194 ) $ 303 $ 160 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 537 (18 ) - 519 Provision for deferred income taxes 436 (266 ) (262 ) (92 ) Share based compensation expense - - 70 70 (Gain) loss on sale of assets and investment securities (1 ) - - (1 ) Net recovery of contract adjustments (35 ) - - (35 ) Net bad debt (recovery) expense (130 ) 32 - (98 ) Changes in: - contract receivables 7,248 261 (686 ) 6,823 - other current assets (300 ) 5 145 (150 ) - income tax receivable 543 142 (17 ) 668 - equity method investment - (239 ) - (239 ) - other non-current assets 60 (13 ) (11 ) 36 - accounts payable (1,996 ) 69 442 (1,485 ) - accrued payroll costs (640 ) (100 ) - (740 ) - income taxes payable 294 8 - 302 - customer deposits 506 52 - 558 - other accrued liabilities (250 ) 34 - (216 ) Net cash provided by (used in) operating activities 6,323 (227 ) (16 ) 6,080 Cash flows from investing activities: Purchase of property, building and equipment (425 ) 10 - (415 ) Proceeds from sale of building and equipment 1 - - 1 Purchase of investment securities 7 - - 7 Net cash (used in) provided by investing activities (417 ) 10 - (407 ) Cash flows from financing activities: Dividends paid (860 ) - - (860 ) Repayment of debt (358 ) - - (358 ) Net borrowings (repayment) of lines of credit (152 ) 218 - 66 Distributions to noncontrolling interests (192 ) - - (192 ) Net cash (used in) provided by financing activities (1,562 ) 218 - (1,344 ) Effect of exchange rate changes on cash and cash equivalents 20 (24 ) 9 5 Net increase (decrease) in cash, cash equivalents and restricted cash 4,364 (23 ) (7 ) 4,334 Cash, cash equivalents and restricted cash at beginning of period 13,343 (208 ) - 13,135 Cash, cash equivalents and restricted cash at end of period $ 17,707 $ (231 ) $ (7 ) $ 17,469 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jan. 26, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) establishes changes to U.S. GAAP in the form of accounting standards updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs when they are issued by FASB. ASUs listed below were either adopted by the Company during its current fiscal year, or will be adopted as each ASU becomes effective during future reporting periods. ASUs not listed below were assessed to be not applicable to the Company’s operations or are expected to have minimal impact on the Company’s consolidated financial position or results of operations. Accounting Pronouncements Adopted During the Six Months Ended January 26, 2019 In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09, as amended by subsequent ASUs that amended and clarified the guidance in ASU 2014-09, forms the basis for FASB ASC Topic 606 (“ASC Topic 606”), which superseded previous authoritative U.S. GAAP guidance regarding revenue recognition. The Company adopted ASC Topic 606 effective August 1, 2018. Refer to Note 6 of these condensed consolidated financial statements for additional disclosures regarding the Company’s adoption of ASC Topic 606. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. In February 2018, FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities, which clarified certain aspects of the guidance issued in ASU 2016-01. Under the new guidance, entities are no longer able to classify equity investments as either trading or available for sale (“AFS”), and may no longer recognize unrealized holding gains and losses in other comprehensive income on equity securities that were classified as AFS under previous U.S. GAAP. The Company adopted the applicable provisions of ASU 2016-01 effective August 1, 2018 by recording a cumulative effect adjustment of less than $0.1 million to beginning retained earnings and beginning accumulated other comprehensive income on the condensed consolidated balance sheets. The cumulative effect adjustment is also separately reported on the condensed consolidated statements of shareholders’ equity. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The amendments included in this update provide guidance regarding eight specific cash flow classification issues that are not specifically addressed in previous U.S. GAAP, only one of which was deemed applicable to the Company’s cash flow reporting. Issue 6 of ASU 2016-15 requires that reporting entities elect an accounting policy to classify distributions received from equity method investees using one of two possible approaches: • the “cumulative earnings approach,” under which, subject to certain limitations, distributions received from equity investees are considered returns on investment and classified as cash inflows from operating activities; or • the “nature of the distribution approach,” under which distributions received from equity investees should be classified on the basis of the nature of the activity or activities of the investee that generated the distribution as either a return on investment (classified as a cash inflow from operating activities) or a return of investment (classified as a cash inflow from investing activities). The Company adopted the provisions of ASU 2016-15 effective August 1, 2018 and elected the “cumulative earnings approach.” The Company received $0.2 million of dividends from its equity method investee during the six months ended January 26, 2019 that are included in cash flows from operating activities. Accounting Pronouncements Not Yet Adopted as of January 26, 2019 In March 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The main difference between previous U.S. GAAP and ASU 2016-02, as amended by subsequent ASUs, is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. ASU 2016-02 provides specific guidance for determining whether a contractual arrangement contains a lease, lease classification by lessees and lessors, initial and subsequent measurement of leases by lessees and lessors, sale and leaseback transactions, transition, and financial statement disclosures. ASU 2016-02 requires entities to use a modified retrospective approach to apply its guidance, and includes a number of optional practical expedients that entities may elect to apply. ASU 2016-02 will be effective for the Company beginning August 1, 2019. Management is currently assessing the provisions of ASU 2016-02. The Company anticipates that adoption of ASU 2016-02 will result in the addition of material right-of-use assets and lease liabilities to the Company’s consolidated balance sheet in addition to expanding required disclosures. Management has not yet estimated the impact of ASU 2016-02 on the Company’s consolidated statements of operations and cash flows. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”). The amendments included in this update affect entities holding financial assets, including trade receivables and investment securities available for sale, that are not accounted for at fair value through net income. ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments included in this update also provide guidance for measurement of expected credit losses and for presentation of increases or decreases of expected credit losses on the statement of operations. ASU No. 2016-13 will be effective for the Company beginning August 1, 2020. Early adoption is permitted for the Company beginning August 1, 2019. Management is currently assessing the provisions of ASU 2016-13 and has not yet estimated its impact on the Company’s consolidated financial statements. In January 2017, FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The amendments included in this update simplify the subsequent measurement of goodwill by revising the steps required during the registrant’s annual goodwill impairment test. This accounting standard update will be effective for the Company beginning August 1, 2021. Management is currently assessing the provisions of ASU 2017-04 and has not yet estimated its impact on the Company’s consolidated financial statements. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Jan. 26, 2019 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | 4. Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash are summarized in the following table. Balance at January 26, 2019 July 31, 2018 (in thousands) Cash and cash equivalents $ 11,017 $ 13,496 Restricted cash included in other assets 252 250 Total cash, cash equivalents and restricted cash $ 11,269 $ 13,746 The Company considers all liquid instruments purchased with a maturity of three months or less to be cash equivalents. Money market funds of less than $0.1 million and $0.4 million were included in cash and cash equivalents at January 26, 2019 and July 31, 2018, respectively. Restricted cash included in other assets represents collateral for pending litigation matters in Brazil that are not expected to be resolved within one year from the balance sheet date. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jan. 26, 2019 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 5. 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 Company classifies assets and liabilities within the fair value hierarchy 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 Level 2 Inputs Level 3 Inputs The Company monitors the availability of observable market data 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 Company reports the transfer as of 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 six months ended January 27, 2018 or the fiscal year ended July 31, 2017. The carrying amount of cash, cash equivalents and restricted cash approximated fair value at January 26, 2019 and July 31, 2018. These assets were classified as level 1 instruments at both dates. Investment securities available for sale of $1.5 million at January 26, 2019 and July 31, 2018 primarily included mutual funds invested in U.S. municipal bonds, which the Company may immediately redeem without prior notice. These mutual funds are valued at the net asset value (“NAV”) of shares held by the Company at period end as a practical expedient to estimate fair value. These mutual funds are deemed to be actively traded, are required to publish their daily NAV and are required to transact at that price. Prior to August 1, 2018, unrealized gains or losses related to investment securities available for sale were recorded in the consolidated balance sheets and statements of comprehensive income. Subsequent to adoption of ASU 2016-01 effective August 1, 2018 (refer to Note 3 of these condensed consolidated financial statements), unrealized gains or losses related to investment securities available for sale are recorded in the consolidated statements of operations. The cost basis of securities sold is based on the specific identification method. The Company did not record any sales of investment securities during the six months ended January 26, 2019 and January 27, 2018. Long-term debt consists of bank loans and capitalized equipment leases. Lines of credit consist of borrowings for working capital requirements. Based on the relative immateriality of consolidated debt and line of credit borrowings, management believes that the carrying amount of these liabilities approximated fair value at January 26, 2019 and July 31, 2018. These liabilities were classified as level 2 instruments at both dates. There were no financial instruments classified as level 3 at January 26, 2019 and January 27, 2018. |
Revenue and Contract Receivable
Revenue and Contract Receivables, net | 6 Months Ended |
Jan. 26, 2019 | |
Revenue and Contract Receivables, net [Abstract] | |
Revenue and Contract Receivables, net | 6. Revenue and Contract Receivables, net Adoption of ASC Topic 606 The Company adopted ASC Topic 606 effective August 1, 2019. Gross revenue for reporting periods beginning after July 31, 2018 is recognized under ASC Topic 606. Gross revenue for previous reporting periods was recognized in accordance with historic accounting under U.S. GAAP, as summarized in revenue recognition policies included in the Company’s 2018 Annual Report. The Company adopted ASC Topic 606 using the modified retrospective method. As a practical expedient allowed under ASC Topic 606, the Company applied the new guidance only to contracts that were not completed as of the date of initial application. The Company did not record any cumulative effect adjustment to retained earnings as of August 1, 2019, and did not record any material adjustment to gross revenue for the three or six months ended January 26, 2019 as a result of applying the guidance in ASC Topic 606. Revenue Recognition under ASC Topic 606 The Company recognizes substantially all of its revenue from the sale of labor hours under environmental consulting contracts. Revenue reflected in the Company's consolidated statements of operations represents services rendered for which the Company maintains a primary contractual relationship with its customers. Included in revenue are certain services outside the Company's normal operations that the Company has elected to subcontract to other contractors. In accordance with ASC Topic 606, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenue when (or as) the Company satisfies a performance obligation. The Company recognizes the vast majority of its contractual revenue over time, as services are rendered and performance obligations are satisfied, because of the continuous transfer of control to the customer, and because the Company generally maintains the right to remuneration for efforts already expended under its contracts even if a customer terminates the contract. The Company's contracts with customers generally include payment terms that range from 30-90 days from the billing date. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account for revenue recognition. The Company allocates a contract’s transaction price to each distinct performance obligation and recognizes revenue when, or as, the performance obligation is satisfied. Predominantly, the Company’s contracts have a single performance obligation because the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts. The Company performs its consulting work under a mix of time and materials, fixed price and cost-plus contracts. The Company accounts for time and material contracts over the period of performance, predominately based on labor hours incurred. Under these types of contracts, there is no predetermined fee. Instead, the Company negotiates hourly billing rates and charges the clients based upon actual hours expended on a project. In addition, any direct project expenditures are passed through to the client and are typically reimbursed. Time and materials contracts may contain “not to exceed” provisions that effectively cap the amount of revenue that the Company can bill to the client. In order to record revenue that exceeds the billing cap, the Company must obtain approval from the client for expanded scope or increased pricing. The Company recognizes revenue under fixed price contracts using the proportional performance method, under which progress is determined based on the ratio of efforts expended to date in proportion to total efforts expected to be expended over the life of a contract. The proportional performance method requires the use of estimates and judgment regarding a project’s expected revenue and the extent of progress towards completion. The Company makes periodic estimates of progress towards project completion by analyzing efforts expended to date, plus an estimate of the amount of efforts to expend that we expect to incur until the completion of the project. Revenue is then calculated on a cumulative basis (project-to-date) as the proportion of efforts-expended. The revenue for the current period is calculated as cumulative revenue less project revenue already recognized. If an estimate of efforts expended 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. Cost-plus contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract, plus fees that we record as revenue. These contracts establish an estimate of total cost and an invoicing ceiling that the contractor may not exceed without the approval of the client. Revenue earned from cost-plus contracts is recognized over the period of performance. Substantially all of the Company's cost-plus contracts are with federal governmental agencies and, as such, are subject to audits after contract completion. Government audits have been completed and final rates have been negotiated through fiscal year 2014. The Company recorded an allowance for potential disallowances resulting from government audits of $0.7 million in other accrued liabilities at January 26, 2019 and July 31, 2018. Adjustments to allowances for project disallowances are recorded as adjustments to revenue when the amounts are estimable. Resolution of these amounts is dependent upon the results of government audits and other formal contract closeout procedures. Contract modifications are common in the performance the Company’s contracts, and typically result from changes in scope, specifications, design, performance, sites, or period of completion. In most cases, contract modifications are for services that are not distinct, and, therefore, are accounted for as part of the existing contract. Revenue is recognized on contract modifications when it is probable that the modification will be approved and the amount can be reasonably estimated. Cost of professional services and other direct operating expenses, which includes employee labor and fringe expenses and out of pocket expenses such as travel, meals and field supplies, represent Sales and cost of sales recognized by the Company’s South American operations exclude value added tax (VAT) assessments by governmental authorities, which the Company collects from its customers and remits to governmental authorities. The Company expenses all bid and proposal and other pre-contract costs as incurred. Contract Receivables, net and Contract Assets Contract receivables, net are summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Contract Receivables: Billed $ 12,578 $ 12,905 Unbilled 14,602 13,994 Total contract receivables 27,180 26,899 Allowance for doubtful accounts (1,234 ) (1,284 ) Contract receivables, net $ 25,946 $ 25,615 Billed contract receivables represent amounts billed to clients in accordance with contracted terms but not collected as of the end of the reporting period. Billed contract receivables may include: (i) amounts billed for revenue from efforts expended and fees earned in accordance with contractual terms; and (ii) progress billings in accordance with contractual terms that include revenue not yet earned as of the end of the reporting period. Billed contract receivables included contractual retainage balances of $0.8 million and $1.4 million at January 26, 2019 and July 31, 2018, respectively. Unbilled contract receivables, represent amounts billable to clients in accordance with contracted terms that have not been billed as of the end of the reporting period. Unbilled contract receivables that are not expected to be billed and collected within one year from the balance sheet date are reported in other assets on the condensed consolidated balance sheets. The Company reduces contract receivables by recording an The Company may record contract assets for the right to receive consideration from customers when that right is conditional based on future performance under a contract. Contract assets are transferred to billed contract receivables when the right to consideration becomes unconditional. The Company did not record any contract assets at January 26, 2019 or July 31, 2018. At January 26, 2019 and July 31, 2018, management identified $0.3 million and $0.5 million, respectively, of contract receivables, net of related allowance for doubtful accounts, which are not expected to be collected within one year. These receivable balances are included in other assets on the accompanying condensed consolidated balance sheets. Allowance for Doubtful Accounts Activity within the allowance for doubtful accounts is summarized in the following table. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (Restated) (in thousands) Balance at beginning of period $ 1,300 $ 2,033 $ 1,284 $ 2,044 Provision for doubtful accounts during the period 54 59 70 92 Write-offs and recoveries of allowance recorded in prior periods (120 ) (190 ) (120 ) (234 ) Balance at end of period $ 1,234 $ 1,902 $ 1,234 $ 1,902 Contract Receivable Concentrations Contract receivables and the allowance for doubtful accounts are summarized in the following table. January 26, 2019 July 31, 2018 Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts (in thousands) U.S. operations $ 22,171 $ 539 $ 21,580 $ 569 South American operations 5,009 695 5,319 715 Totals $ 27,180 $ 1,234 $ 26,899 $ 1,284 The allowance for doubtful accounts for the Company’s South American operations represented 14% of related contract receivables at January 26, 2019 compared to 2% for the Company’s U.S. operations. Unstable local economies that adversely impacted certain of our South American clients in recent years demonstrated signs of stabilizing during fiscal year 2018. Management continues to monitor trends and events that may adversely impact the realizability of recorded receivables from our South American clients. Disaggregation of Revenues The following table provides a summary of the Company’s gross revenue, disaggregated by operating segment and contract type. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (Restated) Gross revenue from time and materials contracts: U.S. operations $ 9,732 $ 8,837 $ 18,988 $ 18,788 South American operations - - - - Total gross revenue from time and materials contracts $ 9,732 $ 8,837 $ 18,988 $ 18,788 Gross revenue from fixed price contracts: U.S. operations $ 5,803 $ 2,758 $ 9,415 $ 7,088 South American operations 1,091 4,905 4,832 10,175 Total gross revenue from fixed price contracts $ 6,894 $ 7,663 $ 14,247 $ 17,263 Gross revenue from cost-plus contracts: U.S. operations $ 3,626 $ 4,789 $ 8,768 $ 11,343 South American operations - - 1 - Total gross revenue from cost-plus contracts $ 3,626 $ 4,789 $ 8,769 $ 11,343 Gross revenue from all contracts: U.S. operations $ 19,161 $ 16,384 $ 37,171 $ 37,219 South American operations 1,091 4,905 4,833 10,175 Consolidated gross revenue $ 20,252 $ 21,289 $ 42,004 $ 47,394 Customer Deposits Customer deposits represent cash advances received from customers to be applied to future services. Remaining Performance Obligations The Company’s remaining performance obligations under its current contracts, also known as firm backlog, represent a measure of the total dollar value of work be performed on contracts that are awarded, funded, and in progress. The Company had approximately $66.5 million in remaining performance obligations as of January 26, 2019, of which it expects to recognize $52.6 million (79%) within the next twelve months. The projects included in firm backlog are subject to cancellations, scope adjustments, foreign exchange fluctuations and project deferrals that may affect the volume or expected timing of revenue recognition. A significant portion of the Company’s revenue is generated from projects awarded under master service agreements with clients. In these instances, only the current unfinished projects are included in our backlog. |
Variable Interest Entities and
Variable Interest Entities and Equity Method Investment | 6 Months Ended |
Jan. 26, 2019 | |
Variable Interest Entities and Equity Method Investment [Abstract] | |
Variable Interest Entities and Equity Method Investment | 7. Variable Interest Entities and Equity Method Investment Variable Interest Entities (“VIE”) The Company’s majority owned subsidiaries are deemed to be VIEs when, on a stand-alone basis, they lack sufficient capital to finance the activities of the VIE. The Company consolidates investments in VIEs if the Company is the primary beneficiary of the VIE. The Company uses a qualitative approach to determine if the Company is the primary beneficiary of the VIE, which considers factors that indicate the Company has significant influence and control over the activities that most significantly impact the VIE’s economic performance. These factors include representation on the investee’s board of directors, management representation, authority to make decisions, substantive participating rights of the minority shareholders and ownership interest. As of January 26, 2019 and July 31, 2018, the Company consolidated one majority owned subsidiary that was deemed to be VIE. The financial position of this VIE as of January 26, 2019 and July 31, 2018 is summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Current assets $ 2,525 $ 2,359 Noncurrent assets 696 878 Total assets $ 3,221 $ 3,237 Current liabilities $ 5,168 $ 5,408 Noncurrent liabilities 23 32 Total liabilities 5,191 5,440 Total Ecology and Environment Inc. shareholder’s equity (864 ) (1,051 ) Noncontrolling interests shareholders’ equity (1,106 ) (1,152 ) Total shareholders’ equity (1,970 ) (2,203 ) Total liabilities and shareholders’ equity $ 3,221 $ 3,237 Total gross revenue of the consolidated VIE was $5.0 million and $4.6 million for the six months ended January 26, 2019 and January 27, 2018, respectively. With the exception of restricted cash of $0.3 million included in noncurrent assets at January 26, 2019 and July 31, 2018 (refer to Note 4), all assets of the VIE were available for the general operations of the VIE. Equity Method Investment VIEs for which the Company is not the primary beneficiary, and other investee companies over which the Company does not influence or control the activities that most significantly impact the investee company’s economic performance, are not consolidated and are accounted for under the equity method of accounting. Under the equity method of accounting, an investee company's accounts are not reflected within the Company's consolidated balance sheets and statements of operations. The Company's share of the earnings of the investee company is reported as earnings from equity method investment in the Company's consolidated statements of operations. The Company's carrying value in an equity method investee is reported as equity method investment on the Company's consolidated balance sheets. The Company's carrying value in an equity method investee is reduced by the Company’s share of dividends declared by an investee company. If the Company's carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company's consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. The Company’s equity method investment in GAC had a carrying value of $2.3 million and $2.1 million at January 26, 2019 and July 31, 2018, respectively. The Company’s ownership percentage was 55.1% at both dates. The equity method investment in GAC is included within the Company’s South American operating segment. Activity recorded for the Company’s equity method investment during the six months ended January 26, 2019 and January 27, 2018 is summarized in the following table. Six Months Ended January 26, 2019 January 27, 2018 (Restated) (in thousands) Equity investment carrying value at beginning of period $ 2,058 $ 1,464 GAC net income attributable to EEI 231 239 Equity investment carrying value at end of period $ 2,289 $ 1,703 GAC’s financial position as of January 26, 2019 and July 31, 2018 is summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Current assets $ 5,017 $ 5,713 Noncurrent assets 755 501 Total assets $ 5,772 $ 6,214 Current liabilities $ 1,631 $ 2,620 Noncurrent liabilities 939 593 Total liabilities 2,570 3,213 Total Ecology and Environment Inc. shareholder’s equity 1,840 1,678 Noncontrolling interests shareholders’ equity 1,362 1,323 Total shareholders’ equity 3,202 3,001 Total liabilities and shareholders’ equity $ 5,772 $ 6,214 The results of GAC’s operations for the six months ended January 26, 2019 and January 27, 2018 are summarized in the following table. Six Months Ended January 26, 2019 January 27, 2018 (in thousands) Gross revenue $ 6,147 $ 5,267 Direct cost of services and subcontract costs 3,682 3,165 Income from operations 597 611 Net income 419 434 Net income attributable to EEI 231 239 |
Lines of Credit
Lines of Credit | 6 Months Ended |
Jan. 26, 2019 | |
Lines of Credit [Abstract] | |
Lines of Credit | 8. Lines of Credit Unsecured lines of credit are summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Outstanding cash advances $ 222 $ --- Outstanding letters of credit 1,697 1,668 Total amounts used under lines of credit 1,919 1,668 Remaining amounts available under lines of credit 33,988 36,832 Total approved unsecured lines of credit $ 35,907 $ 38,500 The Company’s U.S. operations are supported by two line of credit arrangements: • $19.0 million available line of credit at October 27, 2018; no outstanding cash advances as of January 26, 2019 or July 31, 2018; letters of credit of less than $0.1 million were outstanding at January 26, 2019 and July 31, 2018; interest rate on cash advances is based on LIBOR plus 275 basis points; and • $13.5 million available line of credit at January 26. 2019; no outstanding cash advances as of January 26, 2019 or July 31, 2018; letters of credit of less than $0.1 million were outstanding at January 26, 2019 and July 31, 2018, respectively; interest rate on cash advances is based on LIBOR plus 200 basis points. The Company’s South American operations are supported by two line of credit arrangements: • $2.0 million available line of credit to support operations in Peru; no outstanding cash advances as of January 26, 2019 or July 31, 2018; letters of credit of $1.1 million and $1.0 million were outstanding at January 26, 2019 and July 31, 2018, respectively; interest rate on cash advances is affirmed or negotiated annually; and • $1.4 million available line of credit to support operations in Brazil; $0.2 million of cash advances were outstanding as of January 26. 2019; letters of credit of $0.6 million were outstanding at January 26, 2019 and July 31, 2018; interest rate on cash advances is based on a Brazilian government economic index. |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 26, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes During interim reporting periods, the effective tax rate may be impacted by changes in the mix of forecasted income from the U.S. and foreign jurisdictions where the Company operates, by changes in tax rates within those jurisdictions, or by significant unusual or infrequent items that could change assumptions used in the calculation of the income tax provision. The estimated effective tax rate decreased to 55.0% for the six months ended January 26, 2019 from 66.5% for the six months ended January 27, 2018. The decrease in the estimated effective tax rate resulted mainly from changes in U.S. corporate income tax regulations included in the Tax Cuts and Jobs Act enacted in December 2017 (the “Tax Act”), which included: • A reduction in the Company’s U.S. corporate income tax rate to 21% for the six months ended January 26, 2019, compared with a blended rate of 26% for the six months ended January 27, 2018. • Certain one-time tax items, including revaluation of deferred tax assets and liabilities and the effect of a new territorial tax system, that increased the Company’s federal income tax expense by a combined $0.4 million for the six-months ended January 27, 2018. The Company did not record any similar or other unusual adjustments to federal income tax expense during the six months ended January 26, 2019. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jan. 26, 2019 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 10. Shareholders' Equity The following tables provide reconciliations of changes in consolidated shareholders’ equity for the three months ended January 26, 2019 and January 27, 2018. Amounts for the three months ended January 27, 2018 have been restated for the GAC Deconsolidation Adjustments and Out of Period Adjustments described in Note 2. Three Months Ended January 26, 2019 Class A Common Stock Class B Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Accumulated Income (Loss) Treasury Stock Noncontrolling Interests Balance at October 27, 2018 $ 31 $ 13 $ 17,595 $ 20,848 $ (1,947 ) $ (884 ) $ 605 Net income - - - (309 ) - - (1 ) Foreign currency translation adjustment - - - - 54 - (7 ) Share-based compensation expense - - 34 - - - - Distributions to noncontrolling interests - - - - - - (112 ) Purchase of additional noncontrolling interests - - - - - - (1 ) Balance at January 26, 2019 $ 31 $ 13 $ 17,629 $ 20,539 $ (1,893 ) $ (884 ) $ 484 Three Months Ended January 27, 2018 Class A Common Stock Class B Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Accumulated Income (Loss) Treasury Stock Noncontrolling Interests Balance at October 28, 2017 (Restated) $ 30 $ 14 $ 17,617 $ 23,593 $ (1,806 ) $ (1,037 ) $ 992 Net loss - - - (519 ) - - (9 ) Foreign currency translation adjustment - - - - 13 - 38 Unrealized investment losses, net - - - - (13 ) - - Share-based compensation expense - - 24 - - - - Distributions to noncontrolling interests - - - - - - (143 ) Balance at January 27, 2018 (Restated) $ 30 $ 14 $ 17,641 $ 23,074 $ (1,806 ) $ (1,037 ) $ 878 The following tables provide reconciliations of changes in consolidated shareholders’ equity for the six months ended January 26, 2019 and January 27, 2018. Amounts for the six months ended January 27, 2018 have been restated for the GAC Deconsolidation Adjustments and Out of Period Adjustments described in Note 2. Six Months Ended January 26, 2019 Class A Common Stock Class B Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Accumulated Income (Loss) Treasury Stock Noncontrolling Interests Balance at July 31, 2018 $ 30 $ 14 $ 17,558 $ 20,973 $ (1,885 ) $ (907 ) $ 664 Cumulative effect of adoption of ASU 2016-01 - - - (5 ) 5 - - Balance at July 31, 2018 (Adjusted) 30 14 17,558 20,968 (1,880 ) (907 ) 664 Net income - - - (429 ) - - 4 Foreign currency translation adjustment - - - - (13 ) - (67 ) Conversion of Class B common stock to Class A common stock 1 (1 ) - - - - - Issuance of stock under stock award plan - - 4 - - 23 - Share-based compensation expense - - 67 - - - - Distributions to noncontrolling interests - - - - - - (116 ) Purchase of additional noncontrolling interests - - - - - - (1 ) Balance at January 26, 2019 $ 31 $ 13 $ 17,629 $ 20,539 $ (1,893 ) $ (884 ) $ 484 Six Months Ended January 27, 2018 Class A Common Stock Class B Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Accumulated Income (Loss) Treasury Stock Noncontrolling Interests Balance at July 31, 2017 (Restated) $ 30 $ 14 $ 17,570 $ 23,005 $ (1,795 ) $ (1,037 ) $ 947 Net income - - - 69 - - 91 Foreign currency translation adjustment - - - - 5 - 32 Unrealized investment losses, net - - - - (16 ) - - Share-based compensation expense - - 71 - - - - Distributions to noncontrolling interests - - - - - - (192 ) Balance at January 27, 2018 (Restated) $ 30 $ 14 $ 17,641 $ 23,074 $ (1,806 ) $ (1,037 ) $ 878 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 EEI’s 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 Cash Dividends The Company paid $0.9 million of cash dividends during the six months ended January 26, 2019 and January 27, 2018 that were declared and accrued in prior periods. Stock Repurchase Plan 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 , 2018, 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 ended , 2018 or , 2017. Noncontrolling Interests The Company discloses noncontrolling interests as a separate component of consolidated shareholders’ equity on the accompanying condensed consolidated balance sheets. Earnings and other comprehensive income (loss) are separately attributed to both the controlling and noncontrolling interests. The Company calculates earnings per share based on net income (loss) attributable to the Company’s controlling interests. The Company considers acquiring additional interests in majority owned subsidiaries when noncontrolling shareholders express their intent to sell their interests. The Company settles and records acquisitions of noncontrolling interests at amounts that approximate fair value. Purchases of noncontrolling interests are recorded as reductions of shareholders’ equity on the condensed consolidated statements of shareholders’ equity. As of July 31, 2018, the Company held an 87.88% ownership interest in Lowham-Walsh Engineering & Environment Services, LLC (“Lowham”). In November 2018, the Company purchased all remaining noncontrolling interest in Lowham for less than $0.1 million, thereby increasing its ownership interest in Lowham to 100%. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Unrealized net foreign currency translation losses $ (1,893 ) $ (1,880 ) Unrealized net investment (losses) gains on available for sale investments --- (5 ) Total accumulated other comprehensive loss $ (1,893 ) $ (1,885 ) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jan. 26, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share The Company calculates basic and diluted earnings per share by dividing the net income attributable to EEI’s 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 11, 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 two classes of stock 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. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (Restated) (in thousands, except share and per share amounts) Net (loss) income attributable to Ecology and Environment Inc. $ (309 ) $ (519 ) $ (429 ) $ 69 Dividends declared --- --- --- --- Balance at end of period $ (309 ) $ (519 ) $ (429 ) $ 69 Weighted-average common shares outstanding - basic and diluted 4,315,135 4,301,604 4,314,543 4,301,604 Distributed earnings per share - basic and diluted $ --- $ --- $ --- $ --- Undistributed losses per share - basic and diluted (0.07 ) (0.12 ) (0.10 ) 0.02 Net loss per common share - basic and diluted $ (0.07 ) $ (0.12 ) $ (0.10 ) $ 0.02 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jan. 26, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. Segment Reporting Management generally assesses operating performance and makes strategic decisions based on the geographic regions in which the Company does business. The Company reports separate operating segment information for its U.S. and South American operations. Gross revenue, net income (loss) attributable to EEI and total assets by operating segment are summarized in the following tables. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (in thousands) Gross revenue: U.S. operations $ 16,303 $ 16,384 $ 34,313 $ 37,219 South American operations 3,949 4,905 7,691 10,175 Total $ 20,252 $ 21,289 $ 42,004 $ 47,394 Gross revenue from U.S. federal government contracts was $2.9 million and $4.4 million for the three months ended January 26, 2019 and January 27, 2018, respectively, and $6.0 million and $8.0 million for the six months ended January 26, 2019 and January 27, 2018, respectively. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (Restated) (in thousands) Net income (loss) attributable to EEI: U.S. operations (a) $ (294 ) $ (480 ) $ (402 ) $ (176 ) South American operations (b) (15 ) (39 ) (27 ) 245 Total $ (309 ) $ (519 ) $ (429 ) $ 69 (a) Includes depreciation and amortization expense of $0.2 million for the three months ended January 26, 2019 and January 27, 2018, and $0.4 million for the six months ended January 26, 2019 and January 27, 2018. (b) Includes depreciation and amortization expense of $0.1 million three months ended January 26, 2019 and January 27, 2018, and $0.2 million and $0.1million for the six months ended January 26, 2019 and January 27, 2018, respectively. January 26, 2019 July 31, 2018 (in thousands) Total assets: U.S. operations $ 43,991 $ 43,823 South American operations 7,538 9,006 Total $ 51,529 $ 52,829 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 26, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Legal Proceedings 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. 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 Brazil”), a majority-owned consolidated subsidiary of EEI. The Notice of Infraction concerned the taking and collecting of wild animal specimens without authorization by the competent authority and imposed a fine of approximately 0.5 million Reais against E&E Brazil. The Institute also filed Notices of Infraction against four employees of E&E Brazil alleging the same claims and imposed fines against those individuals that, in the aggregate, were equal to the fine imposed against E&E Brazil. No claim has been made against EEI. E&E Brazil has filed court claims appealing the administrative decisions of the Institute for E&E Brazil’s 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 Brazil 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. The claim of violations against one of the four employees was dismissed. The remaining three employees have fines assessed against them that are being appealed through the federal courts. Violations against E&E Brazil are pending agency determination. At January 26, 2019, the Company recorded a reserve of approximately $0.4 million in other accrued liabilities related to these claims. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jan. 26, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Staff Reduction Programs In December 2018, the Company began to notify affected employees of a voluntary retirement program. In February 2019, the Company began to notify affected employees of an involuntary separation program. These programs (collectively, the “Staff Reduction Programs”) are being implemented in connection with a corporate restructuring plan. Company management anticipates that the combined effect of the Staff Reduction Programs and other expense reduction initiatives will result in annual pre-tax cost savings of greater than $6.0 million. These activities are expected to result in pre-tax charges and cash expenditures of approximately $1.0 million during the fiscal year ending July 31, 2019, consisting primarily of employee severance and termination benefits. These initiatives were substantially completed by April 30, 2019 and are expected to be completed by July 31, 2019. Sale of Majority Owned Subsidiary In February 2019, the Company consummated the sale of its majority interest in a consolidated subsidiary located in Ecuador. The cash proceeds and loss from the sale to noncontrolling shareholders, both recorded in February 2019, were less than $0.1 million and $0.1 million, respectively. The sold subsidiary did not represent a material portion of the Company’s consolidated assets, shareholders’ equity, gross revenue or net income attributable to EEI for any previously reported period, and management does not expect that the sale of this subsidiary will have a material impact on the Company’s results of operations, financial position or cash flows for future reporting periods. |
Restatement of Unaudited Cond_2
Restatement of Unaudited Condensed Consolidated Financial Statements (Tables) | 6 Months Ended |
Jan. 26, 2019 | |
Restatement of Unaudited Condensed Consolidated Financial Statements [Abstract] | |
Restatement of Unaudited Condensed Consolidated Financial Statements | The “As Previously Reported” amounts in the tables below represent the amounts reported in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended January 26, 2018, filed with the SEC on March 13, 2018. Ecology and Environment Inc. Condensed Consolidated Statements of Operations (amounts in thousands, except share data) Three Months Ended January 27, 2018 As Previously Reported GAC Deconsolidation Adjustments Out of Period Adjustments Restated Gross revenue $ 25,083 $ (3,154 ) $ (640 ) $ 21,289 Direct cost of professional services and other direct operating expenses 9,078 (1,112 ) - 7,966 Subcontract costs 5,769 (731 ) (609 ) 4,429 Selling, general and administrative expenses 10,228 (745 ) - 9,483 Depreciation and amortization 268 (9 ) - 259 Income (loss) from operations (260 ) (557 ) (31 ) (848 ) Income from equity method investment - 221 - 221 Net interest income (expense) (9 ) 5 - (4 ) Net foreign exchange (loss) gain (29 ) 4 - (25 ) Other income (expense) 12 - - 12 Income (loss) before income tax provision (286 ) (327 ) (31 ) (644 ) Income tax provision 311 (148 ) (279 ) (116 ) Net (loss) income (597 ) (179 ) 248 (528 ) (Income) loss attributable to noncontrolling interests (171 ) 179 1 9 Net (loss) income attributable to Ecology and Environment Inc. $ (768 ) $ - $ 249 $ (519 ) Net (loss) income per common share: basic and diluted $ (0.18 ) $ (0.12 ) Weighted average common shares outatanding: basic and diluted 4,301,604 4,301,604 Six Months Ended January 27, 2018 As Previously Reported GAC Deconsolidation Adjustments Out of Period Adjustments Restated Gross revenue $ 52,165 $ (5,266 ) $ 495 $ 47,394 Direct cost of professional services and other direct operating expenses 18,559 (1,975 ) - 16,584 Subcontract costs 11,498 (1,190 ) 470 10,778 Selling, general and administrative expenses 20,737 (1,472 ) - 19,265 Depreciation and amortization 537 (18 ) - 519 Income (loss) from operations 834 (611 ) 25 248 Income from equity method investment - 239 - 239 Net interest income (expense) (14 ) 12 - (2 ) Net foreign exchange (loss) gain (26 ) 6 - (20 ) Other income (expense) 12 - - 12 Income (loss) before income tax provision 806 (354 ) 25 477 Income tax provision 755 (160 ) (278 ) 317 Net (loss) income 51 (194 ) 303 160 (Income) loss attributable to noncontrolling interests (286 ) 194 1 (91 ) Net (loss) income attributable to Ecology and Environment Inc. $ (235 ) $ - $ 304 $ 69 Net (loss) income per common share: basic and diluted $ (0.05 ) $ 0.02 Weighted average common shares outatanding: basic and diluted 4,301,604 4,301,604 Ecology and Environment Inc. Condensed Consolidated Statements of Comprehensive Income (amounts in thousands) Three Months Ended January 27, 2018 As Previously Reported GAC Deconsolidation Adjustments Out of Period Adjustments Restated Net income including noncontrolling interests $ (597 ) $ (179 ) $ 248 $ (528 ) Foreign currency translation adjustments 166 (115 ) - 51 Unrealized investment (losses) gains, net (13 ) - - (13 ) Comprehensive income (444 ) (294 ) 248 (490 ) Comprehensive (income) loss attributable to noncontrolling interests (264 ) 235 - (29 ) Comprehensive income attributable to EEI $ (708 ) $ (59 ) $ 248 $ (519 ) Six Months Ended January 27, 2018 As Previously Reported GAC Deconsolidation Adjustments Out of Period Adjustments Restated Net income including noncontrolling interests $ 51 $ (194 ) $ 303 $ 160 Foreign currency translation adjustments 195 (158 ) - 37 Unrealized investment (losses) gains, net (16 ) - - (16 ) Comprehensive income 230 (352 ) 303 181 Comprehensive (income) loss attributable to noncontrolling interests (393 ) 270 - (123 ) Comprehensive income attributable to EEI $ (163 ) $ (82 ) $ 303 $ 58 Ecology and Environment Inc. Condensed Consolidated Statement of Cash Flows (amounts in thousands) Six Months Ended January 27, 2018 As Previously Reported Impact of GAC Deconsolidation Other Adjustments Restated Cash flows from operating activities: Net income $ 51 $ (194 ) $ 303 $ 160 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 537 (18 ) - 519 Provision for deferred income taxes 436 (266 ) (262 ) (92 ) Share based compensation expense - - 70 70 (Gain) loss on sale of assets and investment securities (1 ) - - (1 ) Net recovery of contract adjustments (35 ) - - (35 ) Net bad debt (recovery) expense (130 ) 32 - (98 ) Changes in: - contract receivables 7,248 261 (686 ) 6,823 - other current assets (300 ) 5 145 (150 ) - income tax receivable 543 142 (17 ) 668 - equity method investment - (239 ) - (239 ) - other non-current assets 60 (13 ) (11 ) 36 - accounts payable (1,996 ) 69 442 (1,485 ) - accrued payroll costs (640 ) (100 ) - (740 ) - income taxes payable 294 8 - 302 - customer deposits 506 52 - 558 - other accrued liabilities (250 ) 34 - (216 ) Net cash provided by (used in) operating activities 6,323 (227 ) (16 ) 6,080 Cash flows from investing activities: Purchase of property, building and equipment (425 ) 10 - (415 ) Proceeds from sale of building and equipment 1 - - 1 Purchase of investment securities 7 - - 7 Net cash (used in) provided by investing activities (417 ) 10 - (407 ) Cash flows from financing activities: Dividends paid (860 ) - - (860 ) Repayment of debt (358 ) - - (358 ) Net borrowings (repayment) of lines of credit (152 ) 218 - 66 Distributions to noncontrolling interests (192 ) - - (192 ) Net cash (used in) provided by financing activities (1,562 ) 218 - (1,344 ) Effect of exchange rate changes on cash and cash equivalents 20 (24 ) 9 5 Net increase (decrease) in cash, cash equivalents and restricted cash 4,364 (23 ) (7 ) 4,334 Cash, cash equivalents and restricted cash at beginning of period 13,343 (208 ) - 13,135 Cash, cash equivalents and restricted cash at end of period $ 17,707 $ (231 ) $ (7 ) $ 17,469 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jan. 26, 2019 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash are summarized in the following table. Balance at January 26, 2019 July 31, 2018 (in thousands) Cash and cash equivalents $ 11,017 $ 13,496 Restricted cash included in other assets 252 250 Total cash, cash equivalents and restricted cash $ 11,269 $ 13,746 |
Revenue and Contract Receivab_2
Revenue and Contract Receivables, net (Tables) | 6 Months Ended |
Jan. 26, 2019 | |
Revenue and Contract Receivables, net [Abstract] | |
Contract Receivables, Net | Contract receivables, net are summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Contract Receivables: Billed $ 12,578 $ 12,905 Unbilled 14,602 13,994 Total contract receivables 27,180 26,899 Allowance for doubtful accounts (1,234 ) (1,284 ) Contract receivables, net $ 25,946 $ 25,615 |
Allowance for Doubtful Accounts | Activity within the allowance for doubtful accounts is summarized in the following table. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (Restated) (in thousands) Balance at beginning of period $ 1,300 $ 2,033 $ 1,284 $ 2,044 Provision for doubtful accounts during the period 54 59 70 92 Write-offs and recoveries of allowance recorded in prior periods (120 ) (190 ) (120 ) (234 ) Balance at end of period $ 1,234 $ 1,902 $ 1,234 $ 1,902 |
Contract Receivables and Allowance for Doubtful Accounts by Geographical Areas | Contract receivables and the allowance for doubtful accounts are summarized in the following table. January 26, 2019 July 31, 2018 Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts (in thousands) U.S. operations $ 22,171 $ 539 $ 21,580 $ 569 South American operations 5,009 695 5,319 715 Totals $ 27,180 $ 1,234 $ 26,899 $ 1,284 |
Disaggregation of Revenues | The following table provides a summary of the Company’s gross revenue, disaggregated by operating segment and contract type. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (Restated) Gross revenue from time and materials contracts: U.S. operations $ 9,732 $ 8,837 $ 18,988 $ 18,788 South American operations - - - - Total gross revenue from time and materials contracts $ 9,732 $ 8,837 $ 18,988 $ 18,788 Gross revenue from fixed price contracts: U.S. operations $ 5,803 $ 2,758 $ 9,415 $ 7,088 South American operations 1,091 4,905 4,832 10,175 Total gross revenue from fixed price contracts $ 6,894 $ 7,663 $ 14,247 $ 17,263 Gross revenue from cost-plus contracts: U.S. operations $ 3,626 $ 4,789 $ 8,768 $ 11,343 South American operations - - 1 - Total gross revenue from cost-plus contracts $ 3,626 $ 4,789 $ 8,769 $ 11,343 Gross revenue from all contracts: U.S. operations $ 19,161 $ 16,384 $ 37,171 $ 37,219 South American operations 1,091 4,905 4,833 10,175 Consolidated gross revenue $ 20,252 $ 21,289 $ 42,004 $ 47,394 |
Variable Interest Entities an_2
Variable Interest Entities and Equity Method Investment (Tables) | 6 Months Ended |
Jan. 26, 2019 | |
Variable Interest Entities and Equity Method Investment [Abstract] | |
Financial Position of Variable Interest Entity | The financial position of this VIE as of January 26, 2019 and July 31, 2018 is summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Current assets $ 2,525 $ 2,359 Noncurrent assets 696 878 Total assets $ 3,221 $ 3,237 Current liabilities $ 5,168 $ 5,408 Noncurrent liabilities 23 32 Total liabilities 5,191 5,440 Total Ecology and Environment Inc. shareholder’s equity (864 ) (1,051 ) Noncontrolling interests shareholders’ equity (1,106 ) (1,152 ) Total shareholders’ equity (1,970 ) (2,203 ) Total liabilities and shareholders’ equity $ 3,221 $ 3,237 |
Activity Recorded for Equity Method Investment | Activity recorded for the Company’s equity method investment during the six months ended January 26, 2019 and January 27, 2018 is summarized in the following table. Six Months Ended January 26, 2019 January 27, 2018 (Restated) (in thousands) Equity investment carrying value at beginning of period $ 2,058 $ 1,464 GAC net income attributable to EEI 231 239 Equity investment carrying value at end of period $ 2,289 $ 1,703 GAC’s financial position as of January 26, 2019 and July 31, 2018 is summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Current assets $ 5,017 $ 5,713 Noncurrent assets 755 501 Total assets $ 5,772 $ 6,214 Current liabilities $ 1,631 $ 2,620 Noncurrent liabilities 939 593 Total liabilities 2,570 3,213 Total Ecology and Environment Inc. shareholder’s equity 1,840 1,678 Noncontrolling interests shareholders’ equity 1,362 1,323 Total shareholders’ equity 3,202 3,001 Total liabilities and shareholders’ equity $ 5,772 $ 6,214 The results of GAC’s operations for the six months ended January 26, 2019 and January 27, 2018 are summarized in the following table. Six Months Ended January 26, 2019 January 27, 2018 (in thousands) Gross revenue $ 6,147 $ 5,267 Direct cost of services and subcontract costs 3,682 3,165 Income from operations 597 611 Net income 419 434 Net income attributable to EEI 231 239 |
Lines of Credit (Tables)
Lines of Credit (Tables) | 6 Months Ended |
Jan. 26, 2019 | |
Lines of Credit [Abstract] | |
Unsecured Lines of Credit | Unsecured lines of credit are summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Outstanding cash advances $ 222 $ --- Outstanding letters of credit 1,697 1,668 Total amounts used under lines of credit 1,919 1,668 Remaining amounts available under lines of credit 33,988 36,832 Total approved unsecured lines of credit $ 35,907 $ 38,500 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jan. 26, 2019 | |
Shareholders' Equity [Abstract] | |
Reconciliation of Changes in Consolidated Shareholders' Equity | The following tables provide reconciliations of changes in consolidated shareholders’ equity for the three months ended January 26, 2019 and January 27, 2018. Amounts for the three months ended January 27, 2018 have been restated for the GAC Deconsolidation Adjustments and Out of Period Adjustments described in Note 2. Three Months Ended January 26, 2019 Class A Common Stock Class B Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Accumulated Income (Loss) Treasury Stock Noncontrolling Interests Balance at October 27, 2018 $ 31 $ 13 $ 17,595 $ 20,848 $ (1,947 ) $ (884 ) $ 605 Net income - - - (309 ) - - (1 ) Foreign currency translation adjustment - - - - 54 - (7 ) Share-based compensation expense - - 34 - - - - Distributions to noncontrolling interests - - - - - - (112 ) Purchase of additional noncontrolling interests - - - - - - (1 ) Balance at January 26, 2019 $ 31 $ 13 $ 17,629 $ 20,539 $ (1,893 ) $ (884 ) $ 484 Three Months Ended January 27, 2018 Class A Common Stock Class B Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Accumulated Income (Loss) Treasury Stock Noncontrolling Interests Balance at October 28, 2017 (Restated) $ 30 $ 14 $ 17,617 $ 23,593 $ (1,806 ) $ (1,037 ) $ 992 Net loss - - - (519 ) - - (9 ) Foreign currency translation adjustment - - - - 13 - 38 Unrealized investment losses, net - - - - (13 ) - - Share-based compensation expense - - 24 - - - - Distributions to noncontrolling interests - - - - - - (143 ) Balance at January 27, 2018 (Restated) $ 30 $ 14 $ 17,641 $ 23,074 $ (1,806 ) $ (1,037 ) $ 878 The following tables provide reconciliations of changes in consolidated shareholders’ equity for the six months ended January 26, 2019 and January 27, 2018. Amounts for the six months ended January 27, 2018 have been restated for the GAC Deconsolidation Adjustments and Out of Period Adjustments described in Note 2. Six Months Ended January 26, 2019 Class A Common Stock Class B Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Accumulated Income (Loss) Treasury Stock Noncontrolling Interests Balance at July 31, 2018 $ 30 $ 14 $ 17,558 $ 20,973 $ (1,885 ) $ (907 ) $ 664 Cumulative effect of adoption of ASU 2016-01 - - - (5 ) 5 - - Balance at July 31, 2018 (Adjusted) 30 14 17,558 20,968 (1,880 ) (907 ) 664 Net income - - - (429 ) - - 4 Foreign currency translation adjustment - - - - (13 ) - (67 ) Conversion of Class B common stock to Class A common stock 1 (1 ) - - - - - Issuance of stock under stock award plan - - 4 - - 23 - Share-based compensation expense - - 67 - - - - Distributions to noncontrolling interests - - - - - - (116 ) Purchase of additional noncontrolling interests - - - - - - (1 ) Balance at January 26, 2019 $ 31 $ 13 $ 17,629 $ 20,539 $ (1,893 ) $ (884 ) $ 484 Six Months Ended January 27, 2018 Class A Common Stock Class B Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Accumulated Income (Loss) Treasury Stock Noncontrolling Interests Balance at July 31, 2017 (Restated) $ 30 $ 14 $ 17,570 $ 23,005 $ (1,795 ) $ (1,037 ) $ 947 Net income - - - 69 - - 91 Foreign currency translation adjustment - - - - 5 - 32 Unrealized investment losses, net - - - - (16 ) - - Share-based compensation expense - - 71 - - - - Distributions to noncontrolling interests - - - - - - (192 ) Balance at January 27, 2018 (Restated) $ 30 $ 14 $ 17,641 $ 23,074 $ (1,806 ) $ (1,037 ) $ 878 |
Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are summarized in the following table. January 26, 2019 July 31, 2018 (in thousands) Unrealized net foreign currency translation losses $ (1,893 ) $ (1,880 ) Unrealized net investment (losses) gains on available for sale investments --- (5 ) Total accumulated other comprehensive loss $ (1,893 ) $ (1,885 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jan. 26, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The resulting impact was to include unvested restricted shares in the weighted average shares outstanding calculation. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (Restated) (in thousands, except share and per share amounts) Net (loss) income attributable to Ecology and Environment Inc. $ (309 ) $ (519 ) $ (429 ) $ 69 Dividends declared --- --- --- --- Balance at end of period $ (309 ) $ (519 ) $ (429 ) $ 69 Weighted-average common shares outstanding - basic and diluted 4,315,135 4,301,604 4,314,543 4,301,604 Distributed earnings per share - basic and diluted $ --- $ --- $ --- $ --- Undistributed losses per share - basic and diluted (0.07 ) (0.12 ) (0.10 ) 0.02 Net loss per common share - basic and diluted $ (0.07 ) $ (0.12 ) $ (0.10 ) $ 0.02 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jan. 26, 2019 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | Gross revenue, net income (loss) attributable to EEI and total assets by operating segment are summarized in the following tables. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (in thousands) Gross revenue: U.S. operations $ 16,303 $ 16,384 $ 34,313 $ 37,219 South American operations 3,949 4,905 7,691 10,175 Total $ 20,252 $ 21,289 $ 42,004 $ 47,394 Gross revenue from U.S. federal government contracts was $2.9 million and $4.4 million for the three months ended January 26, 2019 and January 27, 2018, respectively, and $6.0 million and $8.0 million for the six months ended January 26, 2019 and January 27, 2018, respectively. Three Months Ended Six Months Ended January 26, 2019 January 27, 2018 (Restated) January 26, 2019 January 27, 2018 (Restated) (in thousands) Net income (loss) attributable to EEI: U.S. operations (a) $ (294 ) $ (480 ) $ (402 ) $ (176 ) South American operations (b) (15 ) (39 ) (27 ) 245 Total $ (309 ) $ (519 ) $ (429 ) $ 69 (a) Includes depreciation and amortization expense of $0.2 million for the three months ended January 26, 2019 and January 27, 2018, and $0.4 million for the six months ended January 26, 2019 and January 27, 2018. (b) Includes depreciation and amortization expense of $0.1 million three months ended January 26, 2019 and January 27, 2018, and $0.2 million and $0.1million for the six months ended January 26, 2019 and January 27, 2018, respectively. |
Assets by Geographic Areas | January 26, 2019 July 31, 2018 (in thousands) Total assets: U.S. operations $ 43,991 $ 43,823 South American operations 7,538 9,006 Total $ 51,529 $ 52,829 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | Jan. 26, 2019SubsidiaryCountry |
Organization and Basis of Presentation [Abstract] | |
Number of wholly owned and majority owned operating subsidiaries | Subsidiary | 6 |
Number of countries in which the company operates | Country | 4 |
Restatement of Unaudited Cond_3
Restatement of Unaudited Condensed Consolidated Financial Statements, Condensed Consolidated Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Consolidated Statements of Operations [Abstract] | ||||
Gross revenue | $ 20,252 | $ 21,289 | $ 42,004 | $ 47,394 |
Direct cost of professional services and other direct operating expenses | 7,774 | 7,966 | 15,908 | 16,584 |
Subcontract costs | 3,619 | 4,429 | 8,193 | 10,778 |
Selling, general and administrative expenses | 9,452 | 9,483 | 18,652 | 19,265 |
Depreciation and amortization | 264 | 259 | 541 | 519 |
(Loss) income from operations | (857) | (848) | (1,290) | 248 |
Income from equity method investment | 171 | 221 | 231 | 239 |
Net interest income (expense) | 45 | (4) | 98 | (2) |
Net foreign exchange (loss) gain | (15) | (25) | 8 | (20) |
Other income (expense) | (19) | 12 | 9 | 12 |
(Loss) income before income tax provision | (675) | (644) | (944) | 477 |
Income tax provision | (365) | (116) | (519) | 317 |
Net (loss) income | (310) | (528) | (425) | 160 |
(Income) loss attributable to noncontrolling interests | 1 | 9 | (4) | (91) |
Net (loss) income attributable to Ecology and Environment Inc. | $ (309) | $ (519) | $ (429) | $ 69 |
Net (loss) income per common share: basic and diluted (in dollars per share) | $ (0.07) | $ (0.12) | $ (0.10) | $ 0.02 |
Weighted average common shares outstanding: basic and diluted (in shares) | 4,315,135 | 4,301,604 | 4,314,543 | 4,301,604 |
As Previously Reported [Member] | ||||
Consolidated Statements of Operations [Abstract] | ||||
Gross revenue | $ 25,083 | $ 52,165 | ||
Direct cost of professional services and other direct operating expenses | 9,078 | 18,559 | ||
Subcontract costs | 5,769 | 11,498 | ||
Selling, general and administrative expenses | 10,228 | 20,737 | ||
Depreciation and amortization | 268 | 537 | ||
(Loss) income from operations | (260) | 834 | ||
Income from equity method investment | 0 | 0 | ||
Net interest income (expense) | (9) | (14) | ||
Net foreign exchange (loss) gain | (29) | (26) | ||
Other income (expense) | 12 | 12 | ||
(Loss) income before income tax provision | (286) | 806 | ||
Income tax provision | 311 | 755 | ||
Net (loss) income | (597) | 51 | ||
(Income) loss attributable to noncontrolling interests | (171) | (286) | ||
Net (loss) income attributable to Ecology and Environment Inc. | $ (768) | $ (235) | ||
Net (loss) income per common share: basic and diluted (in dollars per share) | $ (0.18) | $ (0.05) | ||
Weighted average common shares outstanding: basic and diluted (in shares) | 4,301,604 | 4,301,604 | ||
GAC Deconsolidation Adjustments [Member] | ||||
Consolidated Statements of Operations [Abstract] | ||||
Gross revenue | $ (3,154) | $ (5,266) | ||
Direct cost of professional services and other direct operating expenses | (1,112) | (1,975) | ||
Subcontract costs | (731) | (1,190) | ||
Selling, general and administrative expenses | (745) | (1,472) | ||
Depreciation and amortization | (9) | (18) | ||
(Loss) income from operations | (557) | (611) | ||
Income from equity method investment | 221 | 239 | ||
Net interest income (expense) | 5 | 12 | ||
Net foreign exchange (loss) gain | 4 | 6 | ||
Other income (expense) | 0 | 0 | ||
(Loss) income before income tax provision | (327) | (354) | ||
Income tax provision | (148) | (160) | ||
Net (loss) income | (179) | (194) | ||
(Income) loss attributable to noncontrolling interests | 179 | 194 | ||
Net (loss) income attributable to Ecology and Environment Inc. | 0 | 0 | ||
Out of Period Adjustments [Member] | ||||
Consolidated Statements of Operations [Abstract] | ||||
Gross revenue | (640) | 495 | ||
Direct cost of professional services and other direct operating expenses | 0 | 0 | ||
Subcontract costs | (609) | 470 | ||
Selling, general and administrative expenses | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
(Loss) income from operations | (31) | 25 | ||
Income from equity method investment | 0 | 0 | ||
Net interest income (expense) | 0 | 0 | ||
Net foreign exchange (loss) gain | 0 | 0 | ||
Other income (expense) | 0 | 0 | ||
(Loss) income before income tax provision | (31) | 25 | ||
Income tax provision | (279) | (278) | ||
Net (loss) income | 248 | 303 | ||
(Income) loss attributable to noncontrolling interests | 1 | 1 | ||
Net (loss) income attributable to Ecology and Environment Inc. | $ 249 | $ 304 |
Restatement of Unaudited Cond_4
Restatement of Unaudited Condensed Consolidated Financial Statements, Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net (loss) income including noncontrolling interests | $ (310) | $ (528) | $ (425) | $ 160 |
Foreign currency translation adjustments | 47 | 51 | (80) | 37 |
Unrealized investment (losses) gains, net | 0 | (13) | 0 | (16) |
Comprehensive (loss) income | (263) | (490) | (505) | 181 |
Comprehensive (income) loss attributable to noncontrolling interests | 8 | (29) | 63 | (123) |
Comprehensive (loss) income attributable to Ecology and Environment, Inc. | $ (255) | (519) | $ (442) | 58 |
As Previously Reported [Member] | ||||
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net (loss) income including noncontrolling interests | (597) | 51 | ||
Foreign currency translation adjustments | 166 | 195 | ||
Unrealized investment (losses) gains, net | (13) | (16) | ||
Comprehensive (loss) income | (444) | 230 | ||
Comprehensive (income) loss attributable to noncontrolling interests | (264) | (393) | ||
Comprehensive (loss) income attributable to Ecology and Environment, Inc. | (708) | (163) | ||
GAC Deconsolidation Adjustments [Member] | ||||
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net (loss) income including noncontrolling interests | (179) | (194) | ||
Foreign currency translation adjustments | (115) | (158) | ||
Unrealized investment (losses) gains, net | 0 | 0 | ||
Comprehensive (loss) income | (294) | (352) | ||
Comprehensive (income) loss attributable to noncontrolling interests | 235 | 270 | ||
Comprehensive (loss) income attributable to Ecology and Environment, Inc. | (59) | (82) | ||
Out of Period Adjustments [Member] | ||||
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net (loss) income including noncontrolling interests | 248 | 303 | ||
Foreign currency translation adjustments | 0 | 0 | ||
Unrealized investment (losses) gains, net | 0 | 0 | ||
Comprehensive (loss) income | 248 | 303 | ||
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive (loss) income attributable to Ecology and Environment, Inc. | $ 248 | $ 303 |
Restatement of Unaudited Cond_5
Restatement of Unaudited Condensed Consolidated Financial Statements, Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Cash flows from operating activities [Abstract] | ||||
Net income (loss) | $ (310) | $ (528) | $ (425) | $ 160 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ||||
Depreciation and amortization | 264 | 259 | 541 | 519 |
Provision for deferred income taxes | (6) | (92) | ||
Share based compensation expense | 127 | 70 | ||
(Gain) loss on sale of assets and investment securities | (2) | (1) | ||
Net recovery of contract adjustments | (35) | |||
Net bad debt (recovery) expense | (187) | (98) | ||
Changes in [Abstract] | ||||
- contract receivables | (247) | 6,823 | ||
- other current assets | (916) | (150) | ||
- income tax receivable | (381) | 668 | ||
- equity method investment | (231) | (239) | ||
- other non-current assets | 277 | 36 | ||
- accounts payable | 1,322 | (1,485) | ||
- accrued payroll costs | (1,162) | (740) | ||
- income taxes payable | 0 | 302 | ||
- customer deposits | (345) | 558 | ||
- other accrued liabilities | 43 | (216) | ||
Net cash (used in) provided by operating activities | (1,455) | 6,080 | ||
Cash flows from investing activities [Abstract] | ||||
Purchase of property, building and equipment | (259) | (415) | ||
Proceeds from sale of building and equipment | 2 | 1 | ||
Purchase of investment securities | (16) | 7 | ||
Net cash used in investing activities | (273) | (407) | ||
Cash flows from financing activities [Abstract] | ||||
Dividends paid | (863) | (860) | ||
Repayment of debt | (29) | (358) | ||
Net borrowings (repayment) of lines of credit | 210 | 66 | ||
Distributions to noncontrolling interests | (116) | (192) | ||
Net cash used in financing activities | (798) | (1,344) | ||
Effect of exchange rate changes on cash and cash equivalents | 49 | 5 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (2,477) | 4,334 | ||
Cash, cash equivalents and restricted cash at beginning of period | 13,746 | 13,135 | ||
Cash, cash equivalents and restricted cash at end of period | $ 11,269 | 17,469 | $ 11,269 | 17,469 |
As Previously Reported [Member] | ||||
Cash flows from operating activities [Abstract] | ||||
Net income (loss) | (597) | 51 | ||
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ||||
Depreciation and amortization | 268 | 537 | ||
Provision for deferred income taxes | 436 | |||
Share based compensation expense | 0 | |||
(Gain) loss on sale of assets and investment securities | (1) | |||
Net recovery of contract adjustments | (35) | |||
Net bad debt (recovery) expense | (130) | |||
Changes in [Abstract] | ||||
- contract receivables | 7,248 | |||
- other current assets | (300) | |||
- income tax receivable | 543 | |||
- equity method investment | 0 | |||
- other non-current assets | 60 | |||
- accounts payable | (1,996) | |||
- accrued payroll costs | (640) | |||
- income taxes payable | 294 | |||
- customer deposits | 506 | |||
- other accrued liabilities | (250) | |||
Net cash (used in) provided by operating activities | 6,323 | |||
Cash flows from investing activities [Abstract] | ||||
Purchase of property, building and equipment | (425) | |||
Proceeds from sale of building and equipment | 1 | |||
Purchase of investment securities | 7 | |||
Net cash used in investing activities | (417) | |||
Cash flows from financing activities [Abstract] | ||||
Dividends paid | (860) | |||
Repayment of debt | (358) | |||
Net borrowings (repayment) of lines of credit | (152) | |||
Distributions to noncontrolling interests | (192) | |||
Net cash used in financing activities | (1,562) | |||
Effect of exchange rate changes on cash and cash equivalents | 20 | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 4,364 | |||
Cash, cash equivalents and restricted cash at beginning of period | 13,343 | |||
Cash, cash equivalents and restricted cash at end of period | 17,707 | 17,707 | ||
Impact of GAC Deconsolidation [Member] | ||||
Cash flows from operating activities [Abstract] | ||||
Net income (loss) | (179) | (194) | ||
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ||||
Depreciation and amortization | (9) | (18) | ||
Provision for deferred income taxes | (266) | |||
Share based compensation expense | 0 | |||
(Gain) loss on sale of assets and investment securities | 0 | |||
Net recovery of contract adjustments | 0 | |||
Net bad debt (recovery) expense | 32 | |||
Changes in [Abstract] | ||||
- contract receivables | 261 | |||
- other current assets | 5 | |||
- income tax receivable | 142 | |||
- equity method investment | (239) | |||
- other non-current assets | (13) | |||
- accounts payable | 69 | |||
- accrued payroll costs | (100) | |||
- income taxes payable | 8 | |||
- customer deposits | 52 | |||
- other accrued liabilities | 34 | |||
Net cash (used in) provided by operating activities | (227) | |||
Cash flows from investing activities [Abstract] | ||||
Purchase of property, building and equipment | 10 | |||
Proceeds from sale of building and equipment | 0 | |||
Purchase of investment securities | 0 | |||
Net cash used in investing activities | 10 | |||
Cash flows from financing activities [Abstract] | ||||
Dividends paid | 0 | |||
Repayment of debt | 0 | |||
Net borrowings (repayment) of lines of credit | 218 | |||
Distributions to noncontrolling interests | 0 | |||
Net cash used in financing activities | 218 | |||
Effect of exchange rate changes on cash and cash equivalents | (24) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | (23) | |||
Cash, cash equivalents and restricted cash at beginning of period | (208) | |||
Cash, cash equivalents and restricted cash at end of period | (231) | (231) | ||
Out of Period Adjustments [Member] | ||||
Cash flows from operating activities [Abstract] | ||||
Net income (loss) | 248 | 303 | ||
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ||||
Depreciation and amortization | 0 | 0 | ||
Provision for deferred income taxes | (262) | |||
Share based compensation expense | 70 | |||
(Gain) loss on sale of assets and investment securities | 0 | |||
Net recovery of contract adjustments | 0 | |||
Net bad debt (recovery) expense | 0 | |||
Changes in [Abstract] | ||||
- contract receivables | (686) | |||
- other current assets | 145 | |||
- income tax receivable | (17) | |||
- equity method investment | 0 | |||
- other non-current assets | (11) | |||
- accounts payable | 442 | |||
- accrued payroll costs | 0 | |||
- income taxes payable | 0 | |||
- customer deposits | 0 | |||
- other accrued liabilities | 0 | |||
Net cash (used in) provided by operating activities | (16) | |||
Cash flows from investing activities [Abstract] | ||||
Purchase of property, building and equipment | 0 | |||
Proceeds from sale of building and equipment | 0 | |||
Purchase of investment securities | 0 | |||
Net cash used in investing activities | 0 | |||
Cash flows from financing activities [Abstract] | ||||
Dividends paid | 0 | |||
Repayment of debt | 0 | |||
Net borrowings (repayment) of lines of credit | 0 | |||
Distributions to noncontrolling interests | 0 | |||
Net cash used in financing activities | 0 | |||
Effect of exchange rate changes on cash and cash equivalents | 9 | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | (7) | |||
Cash, cash equivalents and restricted cash at beginning of period | 0 | |||
Cash, cash equivalents and restricted cash at end of period | $ (7) | $ (7) |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 26, 2019 | Jul. 31, 2018 | |
Recent Accounting Pronouncements [Abstract] | ||
Dividends from equity method investments | $ 200 | |
ASU 2016-01 [Member] | Retained Earnings [Member] | ||
Recent Accounting Pronouncements [Abstract] | ||
Cumulative effect of adoption | $ (5) | |
ASU 2016-01 [Member] | Retained Earnings [Member] | Maximum [Member] | ||
Recent Accounting Pronouncements [Abstract] | ||
Cumulative effect of adoption | (100) | |
ASU 2016-01 [Member] | Accumulated Other Comprehensive Income [Member] | ||
Recent Accounting Pronouncements [Abstract] | ||
Cumulative effect of adoption | $ 5 | |
ASU 2016-01 [Member] | Accumulated Other Comprehensive Income [Member] | Maximum [Member] | ||
Recent Accounting Pronouncements [Abstract] | ||
Cumulative effect of adoption | $ 100 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jan. 26, 2019 | Jul. 31, 2018 | Jan. 27, 2018 | Jul. 31, 2017 |
Cash, Cash Equivalents and Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 11,017 | $ 13,496 | ||
Restricted cash included in other assets | 252 | 250 | ||
Total cash, cash equivalents and restricted cash | 11,269 | 13,746 | $ 17,469 | $ 13,135 |
Money Market Funds [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Short-term investments | $ 100 | $ 400 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 26, 2019 | Jul. 31, 2018 |
Fair Value of Financial Instruments [Abstract] | ||
Investment securities available for sale | $ 1,512 | $ 1,497 |
Revenue and Contract Receivab_3
Revenue and Contract Receivables, net, Revenue Recognition (Details) - USD ($) $ in Millions | Jan. 26, 2019 | Jul. 31, 2018 |
Revenue Recognition [Abstract] | ||
Allowance for potential disallowances resulting from government audits | $ 0.7 | $ 0.7 |
Revenue and Contract Receivab_4
Revenue and Contract Receivables, net, Summary of Contract Receivables, net (Details) - USD ($) $ in Thousands | Jan. 26, 2019 | Jul. 31, 2018 |
Contract Receivables [Abstract] | ||
Billed | $ 12,578 | $ 12,905 |
Unbilled | 14,602 | 13,994 |
Total contract receivables | 27,180 | 26,899 |
Allowance for doubtful accounts | (1,234) | (1,284) |
Contract receivables, net | 25,946 | 25,615 |
Contractual retainage balance included under billed contract receivable | 800 | 1,400 |
Contract receivables net, not expected to be collected within one year | $ 300 | $ 500 |
Revenue and Contract Receivab_5
Revenue and Contract Receivables, net, Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance at beginning of period | $ 1,300 | $ 2,033 | $ 1,284 | $ 2,044 |
Provision for doubtful accounts during the period | 54 | 59 | 70 | 92 |
Write-offs and recoveries of allowance recorded in prior periods | (120) | (190) | (120) | (234) |
Balance at end of period | $ 1,234 | $ 1,902 | $ 1,234 | $ 1,902 |
Revenue and Contract Receivab_6
Revenue and Contract Receivables, net, Contract Receivable Concentrations (Details) - USD ($) $ in Thousands | Jan. 26, 2019 | Jul. 31, 2018 |
Contract Receivable Concentrations [Abstract] | ||
Total billed and unbilled contract receivables | $ 27,180 | $ 26,899 |
Allowance for doubtful accounts | 1,234 | 1,284 |
U.S. Operations [Member] | ||
Contract Receivable Concentrations [Abstract] | ||
Total billed and unbilled contract receivables | 22,171 | 21,580 |
Allowance for doubtful accounts | $ 539 | 569 |
Contract receivables | 2.00% | |
South American Operations [Member] | ||
Contract Receivable Concentrations [Abstract] | ||
Total billed and unbilled contract receivables | $ 5,009 | 5,319 |
Allowance for doubtful accounts | $ 695 | $ 715 |
Contract receivables | 14.00% |
Revenue and Contract Receivab_7
Revenue and Contract Receivables, net, Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | $ 20,252 | $ 21,289 | $ 42,004 | $ 47,394 |
U.S. Operations [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 19,161 | 16,384 | 37,171 | 37,219 |
South American Operations [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 1,091 | 4,905 | 4,833 | 10,175 |
Time and Materials [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 9,732 | 8,837 | 18,988 | 18,788 |
Time and Materials [Member] | U.S. Operations [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 9,732 | 8,837 | 18,988 | 18,788 |
Time and Materials [Member] | South American Operations [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 0 | 0 | 0 | 0 |
Fixed Price [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 6,894 | 7,663 | 14,247 | 17,263 |
Fixed Price [Member] | U.S. Operations [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 5,803 | 2,758 | 9,415 | 7,088 |
Fixed Price [Member] | South American Operations [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 1,091 | 4,905 | 4,832 | 10,175 |
Cost-Plus [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 3,626 | 4,789 | 8,769 | 11,343 |
Cost-Plus [Member] | U.S. Operations [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | 3,626 | 4,789 | 8,768 | 11,343 |
Cost-Plus [Member] | South American Operations [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Gross revenue | $ 0 | $ 0 | $ 1 | $ 0 |
Revenue and Contract Receivab_8
Revenue and Contract Receivables, net, Remaining Performance Obligations (Details) $ in Millions | Jan. 26, 2019USD ($) |
Remaining Performance Obligations [Abstract] | |
Remaining performance obligations | $ 66.5 |
Remaining performance obligations expected to recognized in the next 12 months | $ 52.6 |
Remaining performance obligations expected to recognized in the next 12 months, percentage | 79.00% |
Variable Interest Entities an_3
Variable Interest Entities and Equity Method Investment, Variable Interest Entities (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 26, 2019USD ($)Subsidiary | Jan. 27, 2018USD ($) | Jan. 26, 2019USD ($)Subsidiary | Jan. 27, 2018USD ($) | Jul. 31, 2018USD ($)Subsidiary | |
Variable Interest Entity [Abstract] | |||||
Current assets | $ 42,641 | $ 42,641 | $ 43,590 | ||
Total assets | 51,529 | 51,529 | 52,829 | ||
Current liabilities | 15,576 | 15,576 | 16,328 | ||
Total Ecology and Environment Inc. shareholder's equity | 35,435 | 35,435 | 35,783 | ||
Noncontrolling interests shareholders' equity | 484 | 484 | 664 | ||
Total shareholders' equity | 35,919 | 35,919 | 36,447 | ||
Total liabilities and shareholders' equity | $ 51,529 | $ 51,529 | $ 52,829 | ||
Number of majority owned subsidiaries | Subsidiary | 1 | 1 | 1 | ||
Total gross revenue of consolidated variable interest entities | $ 20,252 | $ 21,289 | $ 42,004 | $ 47,394 | |
Variable Interest Entity [Member] | |||||
Variable Interest Entity [Abstract] | |||||
Current assets | 2,525 | 2,525 | $ 2,359 | ||
Noncurrent assets | 696 | 696 | 878 | ||
Total assets | 3,221 | 3,221 | 3,237 | ||
Current liabilities | 5,168 | 5,168 | 5,408 | ||
Noncurrent liabilities | 23 | 23 | 32 | ||
Total liabilities | 5,191 | 5,191 | 5,440 | ||
Total Ecology and Environment Inc. shareholder's equity | (864) | (864) | (1,051) | ||
Noncontrolling interests shareholders' equity | (1,106) | (1,106) | (1,152) | ||
Total shareholders' equity | (1,970) | (1,970) | (2,203) | ||
Total liabilities and shareholders' equity | 3,221 | 3,221 | 3,237 | ||
Total gross revenue of consolidated variable interest entities | 5,000 | $ 4,600 | |||
Restricted cash | $ 300 | $ 300 | $ 300 |
Variable Interest Entities an_4
Variable Interest Entities and Equity Method Investment, Equity Method Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | Jul. 31, 2018 | |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||
Equity investment carrying value at beginning of period | $ 2,058 | ||||
GAC net income attributable to EEI | $ 171 | $ 221 | 231 | $ 239 | |
Equity investment carrying value at end of period | $ 2,289 | $ 2,289 | |||
GAC [Member] | |||||
Equity Method Investment [Abstract] | |||||
Ownership percentage | 55.10% | 55.10% | 55.10% | ||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||
Equity investment carrying value at beginning of period | $ 2,058 | 1,464 | |||
GAC net income attributable to EEI | 231 | 239 | |||
Equity investment carrying value at end of period | $ 2,289 | $ 1,703 | 2,289 | 1,703 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Current assets | 5,017 | 5,017 | $ 5,713 | ||
Noncurrent assets | 755 | 755 | 501 | ||
Total assets | 5,772 | 5,772 | 6,214 | ||
Current liabilities | 1,631 | 1,631 | 2,620 | ||
Noncurrent liabilities | 939 | 939 | 593 | ||
Total liabilities | 2,570 | 2,570 | 3,213 | ||
Total Ecology and Environment Inc. shareholder's equity | 1,840 | 1,840 | 1,678 | ||
Noncontrolling interests shareholders' equity | 1,362 | 1,362 | 1,323 | ||
Total shareholders' equity | 3,202 | 3,202 | 3,001 | ||
Total liabilities and shareholders' equity | $ 5,772 | 5,772 | $ 6,214 | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
Gross revenue | 6,147 | 5,267 | |||
Direct cost of services and subcontract costs | 3,682 | 3,165 | |||
Income from operations | 597 | 611 | |||
Net income | 419 | 434 | |||
Net income attributable to EEI | $ 231 | $ 239 |
Lines of Credit (Details)
Lines of Credit (Details) $ in Thousands | 3 Months Ended | ||
Jan. 26, 2019USD ($)Arrangement | Oct. 27, 2018USD ($) | Jul. 31, 2018USD ($) | |
Unsecured lines of credit [Abstract] | |||
Outstanding cash advances | $ 222 | $ 0 | |
Outstanding letters of credit | 1,697 | 1,668 | |
Total amounts used under lines of credit | 1,919 | 1,668 | |
Remaining amounts available under lines of credit | 33,988 | 36,832 | |
Total approved unsecured lines of credit | $ 35,907 | 38,500 | |
U.S. [Member] | |||
Unsecured lines of credit [Abstract] | |||
Number of line of credit arrangements | Arrangement | 2 | ||
U.S. [Member] | U.S. Operations Credit Arrangement One [Member] | |||
Unsecured lines of credit [Abstract] | |||
Outstanding cash advances | $ 0 | 0 | |
Total amounts used under lines of credit | $ 19,000 | ||
U.S. [Member] | U.S. Operations Credit Arrangement One [Member] | LIBOR [Member] | |||
Unsecured lines of credit [Abstract] | |||
Basis spread on variable rate | 2.75% | ||
U.S. [Member] | U.S. Operations Credit Arrangement Two [Member] | |||
Unsecured lines of credit [Abstract] | |||
Outstanding cash advances | $ 0 | 0 | |
Total amounts used under lines of credit | $ 13,500 | ||
U.S. [Member] | U.S. Operations Credit Arrangement Two [Member] | LIBOR [Member] | |||
Unsecured lines of credit [Abstract] | |||
Basis spread on variable rate | 2.00% | ||
South America [Member] | |||
Unsecured lines of credit [Abstract] | |||
Number of line of credit arrangements | Arrangement | 2 | ||
South America [Member] | South American Operations Credit Arrangement One [Member] | |||
Unsecured lines of credit [Abstract] | |||
Outstanding cash advances | $ 0 | 0 | |
Outstanding letters of credit | 1,100 | 1,000 | |
Total amounts used under lines of credit | 2,000 | ||
South America [Member] | South American Operations Credit Arrangement Two [Member] | |||
Unsecured lines of credit [Abstract] | |||
Outstanding cash advances | 200 | ||
Outstanding letters of credit | 600 | 600 | |
Total amounts used under lines of credit | 1,400 | ||
Maximum [Member] | U.S. [Member] | U.S. Operations Credit Arrangement One [Member] | |||
Unsecured lines of credit [Abstract] | |||
Outstanding letters of credit | 100 | 100 | |
Maximum [Member] | U.S. [Member] | U.S. Operations Credit Arrangement Two [Member] | |||
Unsecured lines of credit [Abstract] | |||
Outstanding letters of credit | $ 100 | $ 100 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 26, 2019 | Jan. 27, 2018 | |
Income Taxes [Abstract] | ||
Estimated effective tax rate | 55.00% | 66.50% |
Statutory federal tax rate | 21.00% | 26.00% |
Federal income tax expense | $ 0 | $ 0.4 |
Shareholders' Equity, Reconcili
Shareholders' Equity, Reconciliation of Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | Jul. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance | $ 36,447 | ||||
Net income (loss) | $ (310) | $ (528) | (425) | $ 160 | |
Foreign currency translation adjustments | 47 | 51 | (80) | 37 | |
Unrealized investment losses, net | 0 | (13) | 0 | (16) | |
Balance | 35,919 | 35,919 | |||
Common Stock [Member] | Class A Common Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance | 31 | 30 | 30 | 30 | |
Balance (Adjusted) | 30 | ||||
Net income (loss) | 0 | 0 | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock | 1 | ||||
Issuance of stock under stock award plan | 0 | ||||
Unrealized investment losses, net | 0 | 0 | |||
Share-based compensation expense | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | |
Purchase of additional noncontrolling interests | 0 | 0 | |||
Balance | 31 | 30 | 31 | 30 | |
Common Stock [Member] | Class A Common Stock [Member] | ASU 2016-01 [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adoption | $ 0 | ||||
Common Stock [Member] | Class B Common Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance | 13 | 14 | 14 | 14 | |
Balance (Adjusted) | 14 | ||||
Net income (loss) | 0 | 0 | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock | (1) | ||||
Issuance of stock under stock award plan | 0 | ||||
Unrealized investment losses, net | 0 | 0 | |||
Share-based compensation expense | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | |
Purchase of additional noncontrolling interests | 0 | 0 | |||
Balance | 13 | 14 | 13 | 14 | |
Common Stock [Member] | Class B Common Stock [Member] | ASU 2016-01 [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adoption | 0 | ||||
Capital in Excess of Par Value [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance | 17,595 | 17,617 | 17,558 | 17,570 | |
Balance (Adjusted) | 17,558 | ||||
Net income (loss) | 0 | 0 | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock | 0 | ||||
Issuance of stock under stock award plan | 4 | ||||
Unrealized investment losses, net | 0 | 0 | |||
Share-based compensation expense | 34 | 24 | 67 | 71 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | |
Purchase of additional noncontrolling interests | 0 | 0 | |||
Balance | 17,629 | 17,641 | 17,629 | 17,641 | |
Capital in Excess of Par Value [Member] | ASU 2016-01 [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adoption | 0 | ||||
Retained Earnings [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance | 20,848 | 23,593 | 20,973 | 23,005 | |
Balance (Adjusted) | 20,968 | ||||
Net income (loss) | (309) | (519) | (429) | 69 | |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock | 0 | ||||
Issuance of stock under stock award plan | 0 | ||||
Unrealized investment losses, net | 0 | 0 | |||
Share-based compensation expense | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | |
Purchase of additional noncontrolling interests | 0 | 0 | |||
Balance | 20,539 | 23,074 | 20,539 | 23,074 | |
Retained Earnings [Member] | ASU 2016-01 [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adoption | (5) | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance | (1,947) | (1,806) | (1,885) | (1,795) | |
Balance (Adjusted) | (1,880) | ||||
Net income (loss) | 0 | 0 | 0 | 0 | |
Foreign currency translation adjustments | 54 | 13 | (13) | 5 | |
Conversion of Class B common stock to Class A common stock | 0 | ||||
Issuance of stock under stock award plan | 0 | ||||
Unrealized investment losses, net | (13) | (16) | |||
Share-based compensation expense | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | |
Purchase of additional noncontrolling interests | 0 | 0 | |||
Balance | (1,893) | (1,806) | (1,893) | (1,806) | |
Accumulated Other Comprehensive Income (Loss) [Member] | ASU 2016-01 [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adoption | 5 | ||||
Treasury Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance | (884) | (1,037) | (907) | (1,037) | |
Balance (Adjusted) | (907) | ||||
Net income (loss) | 0 | 0 | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock | 0 | ||||
Issuance of stock under stock award plan | 23 | ||||
Unrealized investment losses, net | 0 | 0 | |||
Share-based compensation expense | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | |
Purchase of additional noncontrolling interests | 0 | 0 | |||
Balance | (884) | (1,037) | (884) | (1,037) | |
Treasury Stock [Member] | ASU 2016-01 [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adoption | 0 | ||||
Noncontrolling Interest [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance | 605 | 992 | 664 | 947 | |
Balance (Adjusted) | 664 | ||||
Net income (loss) | (1) | (9) | 4 | 91 | |
Foreign currency translation adjustments | (7) | 38 | (67) | 32 | |
Conversion of Class B common stock to Class A common stock | 0 | ||||
Issuance of stock under stock award plan | 0 | ||||
Unrealized investment losses, net | 0 | 0 | |||
Share-based compensation expense | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | (112) | (143) | (116) | (192) | |
Purchase of additional noncontrolling interests | (1) | (1) | |||
Balance | $ 484 | $ 878 | $ 484 | $ 878 | |
Noncontrolling Interest [Member] | ASU 2016-01 [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adoption | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Nov. 30, 2018 | Jan. 26, 2019 | Oct. 27, 2018 | Oct. 28, 2017 | Jan. 26, 2019 | Jan. 27, 2018 | Jul. 31, 2018 | Apr. 28, 2018 | Aug. 31, 2010 | |
Cash Dividends [Abstract] | |||||||||
Cash dividends paid | $ 900 | $ 900 | |||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||
Unrealized net foreign currency translation losses | $ (1,893) | (1,893) | $ (1,880) | ||||||
Unrealized net investment (losses) gains on available for sale investments | 0 | 0 | (5) | ||||||
Total accumulated other comprehensive loss | (1,893) | (1,893) | $ (1,885) | ||||||
Noncontrolling Interest [Member] | |||||||||
Noncontrolling Interest Items [Abstract] | |||||||||
Purchase of noncontrolling interest | $ 1 | $ 1 | |||||||
Noncontrolling Interest [Member] | Lowham [Member] | |||||||||
Noncontrolling Interest Items [Abstract] | |||||||||
Ownership percentage | 100.00% | 87.88% | |||||||
Noncontrolling Interest [Member] | Lowham [Member] | Maximum [Member] | |||||||||
Noncontrolling Interest Items [Abstract] | |||||||||
Purchase of noncontrolling interest | $ 100 | ||||||||
Class A Common Stock [Member] | |||||||||
Class A and Class B common stock [Abstract] | |||||||||
Percentage equity holders entitled to elect Board of Directors | 25.00% | ||||||||
Minimum percentage of the number of outstanding Class A shares to combined classes of shares | 10.00% | ||||||||
Voting power of Class A common share holders to the Class B common share holders | 0.1 | ||||||||
Number of Class B shares to be converted into Class A shares (in shares) | 1 | ||||||||
Stock Repurchase Plan [Abstract] | |||||||||
Number of shares authorized to be repurchased (in shares) | 122,918 | 200,000 | |||||||
Remaining number of shares authorized to be repurchased (in shares) | 77,082 | ||||||||
Number of share acquired (in shares) | 0 | 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 26, 2019USD ($)Class$ / sharesshares | Jan. 27, 2018USD ($)$ / sharesshares | Jan. 26, 2019USD ($)Class$ / sharesshares | Jan. 27, 2018USD ($)$ / sharesshares | |
Earnings Per Share [Abstract] | ||||
Minimum percentage right of Class B common stock holders to elect Board of Directors | 75.00% | |||
Number of classes of common stock | Class | 2 | 2 | ||
Net (loss) income attributable to Ecology and Environment Inc. | $ | $ (309) | $ (519) | $ (429) | $ 69 |
Dividends declared | $ | 0 | 0 | 0 | 0 |
Balance at end of period | $ | $ (309) | $ (519) | $ (429) | $ 69 |
Weighted-average common shares outstanding - basic and diluted (in shares) | shares | 4,315,135 | 4,301,604 | 4,314,543 | 4,301,604 |
Distributed earnings per share - basic and diluted (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0 | $ 0 |
Undistributed losses per share - basic and diluted (in dollars per share) | $ / shares | (0.07) | (0.12) | (0.10) | 0.02 |
Net loss per common share - basic and diluted (in dollars per share) | $ / shares | $ (0.07) | $ (0.12) | $ (0.10) | $ 0.02 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | Jul. 31, 2018 | ||
Segment Reporting Information [Abstract] | ||||||
Gross revenue | $ 20,252 | $ 21,289 | $ 42,004 | $ 47,394 | ||
Net income (loss) attributable to EEI | (309) | (519) | (429) | 69 | ||
Depreciation and amortization expense | 264 | 259 | 541 | 519 | ||
Total assets | 51,529 | 51,529 | $ 52,829 | |||
U.S. Operations [Member] | ||||||
Segment Reporting Information [Abstract] | ||||||
Gross revenue | 16,303 | 16,384 | 34,313 | 37,219 | ||
Net income (loss) attributable to EEI | [1] | (294) | (480) | (402) | (176) | |
Depreciation and amortization expense | 200 | 200 | 400 | 400 | ||
Total assets | 43,991 | 43,991 | 43,823 | |||
U.S. Operations [Member] | Government Contracts [Member] | ||||||
Segment Reporting Information [Abstract] | ||||||
Gross revenue | 2,900 | 4,400 | 6,000 | 8,000 | ||
South American Operations [Member] | ||||||
Segment Reporting Information [Abstract] | ||||||
Gross revenue | 3,949 | 4,905 | 7,691 | 10,175 | ||
Net income (loss) attributable to EEI | [2] | (15) | (39) | (27) | 245 | |
Depreciation and amortization expense | 100 | $ 100 | 200 | $ 100 | ||
Total assets | $ 7,538 | $ 7,538 | $ 9,006 | |||
[1] | Includes depreciation and amortization expense of $0.2 million for the three months ended January 26, 2019 and January 27, 2018, and $0.4 million for the six months ended January 26, 2019 and January 27, 2018. | |||||
[2] | Includes depreciation and amortization expense of $0.1 million three months ended January 26, 2019 and January 27, 2018, and $0.2 million and $0.1million for the six months ended January 26, 2019 and January 27, 2018, respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands, R$ in Millions | 6 Months Ended | ||
Jan. 26, 2019USD ($)Employee | Jan. 26, 2019BRL (R$) | Jul. 31, 2018USD ($) | |
Loss Contingencies [Abstract] | |||
Other accrued liabilities | $ | $ 1,435 | $ 1,382 | |
Pending Litigation [Member] | Ecology and Environment do Brasil LTDA [Member] | |||
Loss Contingencies [Abstract] | |||
Loss contingency, estimate of possible loss | R$ | R$ 0.5 | ||
Number of employees individually served with notices of infraction | 4 | ||
Settled Litigation [Member] | Ecology and Environment do Brasil LTDA [Member] | |||
Loss Contingencies [Abstract] | |||
Number of employees individually served with claim of violations dismissed | 1 | ||
Number of employees that have fines assessed against them, which are being appealed | 3 | ||
Other accrued liabilities | $ | $ 400 |
Subsequent Events (Details)
Subsequent Events (Details) - Forecast [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Feb. 28, 2019 | Jul. 31, 2019 | |
Staff Reduction Programs [Abstract] | ||
Expected savings due to staff reduction and expense reduction initiatives | $ 6 | |
Employee severance and termination costs | $ 1 | |
Sale of Majority Owned Subsidiary [Abstract] | ||
Proceeds from sale of majority interest in consolidated subsidiary | $ 0.1 | |
Loss from sale of majority interest in consolidated subsidiary | $ 0.1 |