Ecology & Environment reduced its fourth-quarter loss by more than 80 percent as the Lancaster environmental services firm continued to cut its costs as its direct revenues fell by 9 percent.
E&E lost $656,000, or 15 cents per share, during the quarter that ended in July, down from a loss of $3.8 million, or 90 cents per share, a year ago, when the company was hit by a $6.3 million reduction in the value of projects it had undertaken in China.
Much of the loss during the latest quarter stemmed from a $600,000 expense to install a new computer system at its U.S. operations. Otherwise, E&E would have been even closer to breaking even.
E&E’s total revenues, which include sales made through subcontractors, rose by 11 percent to $33.1 million from $29.7 million. But excluding those subcontractor costs, the company’s revenues fell by 9 percent to $26.3 million from $28.9 million as the company did less work for government clients in the United States, as well as in the energy, mining and asbestos inspection markets.
With its direct revenues dropping, the company has been steadily cutting costs, reducing its work force by a quarter during the past two years, including a 16 percent reduction during the fiscal year that ended in July.
“Management continues to evaluate its organizational and cost structure to identify ways to operate more efficiently and cost effectively,” E&E said in a statement.