Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Apr. 29, 2017 | May 31, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | ECOLOGY & ENVIRONMENT INC | |
Entity Central Index Key | 809,933 | |
Current Fiscal Year End Date | --07-29 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 29, 2017 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,000,956 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,293,146 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 29, 2017 | Jul. 31, 2016 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 11,675 | $ 10,161 |
Investment securities available for sale | 1,481 | 1,499 |
Contract receivables, net of allowance for doubtful accounts and contract adjustments of $2,260 and $6,792, respectively | 31,161 | 34,319 |
Income tax receivable | 2,822 | 916 |
Other current assets | 2,678 | 2,104 |
Total current assets | 49,817 | 48,999 |
Property, buildings and equipment, net of accumulated depreciation of $17,857 and $18,324, respectively | 4,423 | 6,094 |
Deferred income taxes | 658 | 2,650 |
Other assets | 1,788 | 1,769 |
Total assets | 56,686 | 59,512 |
Current liabilities: | ||
Accounts payable | 6,082 | 6,874 |
Lines of credit | 689 | 312 |
Accrued payroll costs | 4,890 | 6,590 |
Current portion of long-term debt and capital lease obligations | 203 | 240 |
Billings in excess of revenue | 3,505 | 3,297 |
Other accrued liabilities | 3,037 | 3,445 |
Total current liabilities | 18,406 | 20,758 |
Income taxes payable | 107 | 107 |
Deferred income taxes | 870 | 525 |
Long-term debt and capital lease obligations | 59 | 217 |
Commitments and contingencies (Note 16) | ||
Shareholders' equity: | ||
Preferred stock, par value $.01 per share (2,000,000 shares authorized; no shares issued) | 0 | 0 |
Capital in excess of par value | 16,595 | 16,606 |
Retained earnings | 22,177 | 22,237 |
Accumulated other comprehensive loss | (2,163) | (2,143) |
Treasury stock, at cost (Class A common: 34,822 and 39,272 shares; Class B common: 64,801 shares) | (1,122) | (1,172) |
Total Ecology and Environment, Inc. shareholders' equity | 35,531 | 35,572 |
Noncontrolling interests | 1,713 | 2,333 |
Total shareholders' equity | 37,244 | 37,905 |
Total liabilities and shareholders' equity | 56,686 | 59,512 |
Class A [Member] | ||
Shareholders' equity: | ||
Common stock | 30 | 30 |
Class B [Member] | ||
Shareholders' equity: | ||
Common stock | $ 14 | $ 14 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 29, 2017 | Jul. 31, 2016 |
Current assets: | ||
Allowance for doubtful accounts and contract adjustments | $ 2,260 | $ 6,792 |
Accumulated depreciation | $ 17,857 | $ 18,324 |
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) | 3,035,778 | 3,035,778 |
Treasury stock (in shares) | 34,822 | 39,272 |
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) | 1,357,947 | 1,357,947 |
Treasury stock (in shares) | 64,801 | 64,801 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | Apr. 29, 2017 | Apr. 30, 2016 | |
Condensed Consolidated Statements of Operations (Unaudited) [Abstract] | ||||
Revenue, net | $ 24,204 | $ 25,218 | $ 74,611 | $ 79,923 |
Cost of professional services and other direct operating expenses | 9,346 | 9,279 | 27,787 | 29,060 |
Subcontract costs | 3,410 | 3,888 | 13,133 | 14,212 |
Administrative and indirect operating expenses | 7,588 | 8,223 | 22,447 | 24,424 |
Marketing and related costs | 2,465 | 2,967 | 7,674 | 8,673 |
Depreciation and amortization | 265 | 290 | 782 | 873 |
Income from operations | 1,130 | 571 | 2,788 | 2,681 |
Net interest income (expense) | 9 | (27) | (3) | (49) |
Proxy costs, net | (550) | 0 | (550) | 0 |
Gain on insurance settlement | 0 | 359 | 0 | 359 |
Net foreign exchange (loss) gain | (9) | (94) | (81) | 17 |
Other (expense) income | (70) | (21) | (60) | 39 |
Income before income tax provision | 510 | 788 | 2,094 | 3,047 |
Income tax provision | 246 | 653 | 1,319 | 2,937 |
Net income | 264 | 135 | 775 | 110 |
Net (income) loss attributable to noncontrolling interests | (12) | 40 | 47 | 247 |
Net income attributable to Ecology and Environment, Inc. | $ 252 | $ 175 | $ 822 | $ 357 |
Net income per common share - basic and diluted (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.19 | $ 0.08 |
Weighted average common shares outstanding - basic and diluted (in shares) | 4,294,102 | 4,290,720 | 4,293,646 | 4,290,106 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | Apr. 29, 2017 | Apr. 30, 2016 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ||||
Net income including noncontrolling interests | $ 264 | $ 135 | $ 775 | $ 110 |
Foreign currency translation adjustments | (36) | 486 | 88 | (461) |
Unrealized investment (losses) gains, net | 7 | 1 | (24) | 14 |
Comprehensive (loss) income | 235 | 622 | 839 | (337) |
Comprehensive loss (income) attributable to noncontrolling interests | (32) | (94) | (37) | 327 |
Comprehensive (loss) income attributable to Ecology and Environment, Inc. | $ 203 | $ 528 | $ 802 | $ (10) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 29, 2017 | Apr. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 775 | $ 110 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 782 | 873 |
Deferred income taxes | 2,356 | 739 |
Share based compensation expense | 0 | 53 |
Tax impact of share-based compensation | (6) | 0 |
Gain on sale of assets and investment securities | (90) | (2) |
Net recovery of contract adjustments and doubtful accounts | (1,178) | (910) |
Net bad debt expense | 399 | 351 |
Changes in: | ||
- contract receivables | 2,953 | 7,397 |
- other current assets | (607) | (827) |
- income tax receivable | (1,906) | 180 |
- other non-current assets | (18) | 16 |
- accounts payable | 49 | (3,387) |
- accrued payroll costs | (1,724) | (2,186) |
- income taxes payable | (6) | 34 |
- billings in excess of revenue | 196 | 684 |
- other accrued liabilities | 700 | (108) |
Net cash provided by operating activities | 2,675 | 3,017 |
Cash flows from investing activities: | ||
Proceeds from sale of subsidiaries | 75 | 150 |
Purchase of property, building and equipment | (479) | (259) |
Proceeds from sale of property, buildings and equipment | 1,483 | 5 |
Proceeds from maturity of investments | 0 | 26 |
Purchase of investment securities | (22) | (78) |
Net cash provided by (used in) investing activities | 1,057 | (156) |
Cash flows from financing activities: | ||
Dividends paid | (1,720) | (2,066) |
Proceeds from debt | 0 | 6 |
Repayment of debt | (196) | (505) |
Net borrowings (repayments) under lines of credit | 370 | (138) |
Distributions to noncontrolling interests | (681) | (427) |
Net cash used in financing activities | (2,227) | (3,130) |
Effect of exchange rate changes on cash and cash equivalents | 9 | (204) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,514 | (473) |
Cash, cash equivalents and restricted cash at beginning of period | 10,161 | 8,703 |
Cash, cash equivalents and restricted cash at end of period | 11,675 | 8,230 |
Cash paid during the period for: | ||
Interest | 90 | 102 |
Income taxes | 987 | 1,951 |
Supplemental disclosure of non-cash items: | ||
Sale of subsidiary (loans receivable) | 0 | 75 |
Proceeds from capital lease obligations | $ 0 | $ 15 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member]Class A [Member] | Common Stock [Member]Class B [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jul. 31, 2015 | $ 30 | $ 14 | $ 16,575 | $ 23,246 | $ (1,726) | $ (1,224) | $ 3,570 | |
Balance (in shares) at Jul. 31, 2015 | 3,023,206 | 1,370,519 | 107,046 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 0 | $ 0 | 0 | 887 | 0 | $ 0 | (278) | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (438) | 0 | (119) | |
Cash dividends declared | 0 | 0 | 0 | (1,895) | 0 | 0 | 0 | |
Unrealized investment (losses) gains, net | 0 | 0 | 0 | 0 | 21 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | 0 | |
Conversion of Class B common stock to Class A common stock (in shares) | 12,572 | (12,572) | 0 | |||||
Issuance of stock under stock award plan | $ 0 | $ 0 | (6) | 0 | 0 | $ 52 | 0 | |
Issuance of stock under stock award plan (in shares) | 0 | 0 | (4,533) | |||||
Share-based compensation expense | $ 0 | $ 0 | 37 | 0 | 0 | $ 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (530) | |
Sale of majority-owned subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | (310) | |
Stock award plan forfeitures | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | 0 | |
Stock award plan forfeitures (in shares) | 0 | 0 | 1,560 | |||||
Balance at Jul. 31, 2016 | $ 30 | $ 14 | 16,606 | 22,238 | (2,143) | $ (1,172) | 2,333 | $ 37,905 |
Balance (in shares) at Jul. 31, 2016 | 3,035,778 | 1,357,947 | 104,073 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 0 | $ 0 | 0 | 822 | 0 | $ 0 | (47) | 775 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 4 | 0 | 84 | 88 |
Cash dividends declared | 0 | 0 | 0 | (859) | 0 | 0 | 0 | (859) |
Unrealized investment (losses) gains, net | 0 | 0 | 0 | 0 | (24) | 0 | 0 | (24) |
Issuance of stock under stock award plan | $ 0 | $ 0 | (5) | 0 | 0 | $ 50 | 0 | |
Issuance of stock under stock award plan (in shares) | 0 | 0 | (4,450) | |||||
Tax impact of share based compensation | $ 0 | $ 0 | (6) | 0 | 0 | $ 0 | 0 | |
Tax impact of noncontrolling interests | 0 | 0 | 0 | (24) | 0 | 0 | 24 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (681) | |
Balance at Apr. 29, 2017 | $ 30 | $ 14 | $ 16,595 | $ 22,177 | $ (2,163) | $ (1,122) | $ 1,713 | $ 37,244 |
Balance (in shares) at Apr. 29, 2017 | 3,035,778 | 1,357,947 | 99,623 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Apr. 29, 2017 | Jul. 31, 2016 | |
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.20 | $ 0.44 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Apr. 29, 2017 | |
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. Together with its subsidiaries (collectively, the “Company”), EEI has direct and indirect ownership in 7 active wholly owned and majority owned operating subsidiaries in 5 countries. The Company’s staff is comprised of individuals representing more than 80 scientific, engineering, health, and social disciplines working together in multidisciplinary teams to provide innovative environmental solutions. The Company has completed more than 50,000 projects for a wide variety of clients in more than 120 countries, providing environmental solutions in nearly every ecosystem on the planet. The Company prepared the condensed consolidated financial statements included herein, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of such information. All such adjustments are of a normal recurring nature. The Company reclassified certain prior year amounts to conform to the condensed consolidated financial statement presentation for the three and nine months ended April 29, 2017. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“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, 2016 filed with the Securities and Exchange Commission (the “2016 Annual Report”). The accounting policies followed by the Company for preparation of the consolidated financial statements included in the 2016 Annual Report were also followed for this interim report. The condensed consolidated results of operations for the three and nine months ended April 29, 2017 are not necessarily indicative of the results for any subsequent period or the entire fiscal year ending July 31, 2017. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Apr. 29, 2017 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Accounting Pronouncements Adopted During the Nine Months Ended April 29, 2017 In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”). ASU 2015-16 requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. In addition, the amendments in ASU 2015-16 require an acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in ASU 2015-16 also require an entity to present separately on the face of the income statement, or disclose in the notes to the financial statements, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized at the acquisition date. The amendments in ASU 2015-16 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, and are to be applied prospectively to adjustments to provisional amounts that occur after the effective date. The Company adopted the provisions of ASU 2015-16 effective August 1, 2016. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In May 2015, FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (Or its Equivalent) (“ASU 2015-07”). ASU 2015-07 removes the requirements to: 1) categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value (“NAV”) per share practical expedient; and 2) make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The amendments in ASU 2015-07 are effective for public entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The amendment must be applied retrospectively. The Company adopted ASU 2015-07 effective August 1, 2016. Other than the changes to disclosures noted above, adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Refer to Note 5 of these condensed consolidated financial statements for additional disclosures regarding the Company’s investments in available for sale securities that are valued using the NAV practical expedient. In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40) (“ASU 2014-15”). ASU 2014-15 requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). ASU 2014-15 provides guidance for management’s evaluation, including guidance regarding when substantial doubt about an entity’s ability to continue as a going concern exists, and when such doubt may be alleviated by management’s plans that are intended to mitigate those relevant conditions or events. ASU 2014-15 also provides guidance regarding appropriate financial statement disclosures regarding conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that are intended to mitigate those conditions or events. The provisions of ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Earlier application is permitted. The Company adopted ASU 2014-15 effective August 1, 2016. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In November 2016, FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash – a consensus of the FASB Emerging Issues Task Force (“ASU 2016-18”). The amendments included in this update require that amounts described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. For public entities, the amendments included in ASU 2016-18 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company adopted the provisions of ASU 2016-18 effective August 1, 2016. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Refer to Note 4 of these condensed consolidated financial statements for additional disclosures regarding the Company’s cash, cash equivalents and restricted cash. Accounting Pronouncements Not Yet Adopted as of April 29, 2017 In March 2016, FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). The objective of ASU 2016-09 is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in ASU 2016-09 are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted in any interim or annual period, subject to transition requirements. The Company intends to adopt the provisions of ASU 2016-09 effective August 1, 2017. Management is currently assessing the provisions of ASU 2016-09 and has not yet estimated its impact on the Company’s consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is the result of a joint project of FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for use in the U.S and internationally. ASU 2014-09 supersedes the revenue recognition requirements in Topic 605 of FASB’s Accounting Standards Codification (the “Codification”) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU 2014-09 enhances comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets, reduces the number of requirements an entity must consider for recognizing revenue, and requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. ASU 2014-09 was to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within the annual reporting period. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. The Company intends to adopt the provisions of ASU 2014-09 effective August 1, 2018. During the fiscal years year ended July 31, 2017 and 2016, FASB issued six additional ASUs that provide clarification for specific aspects of ASU 2014-09. The effective dates and transition requirements for these ASUs are the same as the effective dates and transition requirements included in ASU 2014-09 and ASU 2015-14. ASU 2014-09 requires retrospective application by either restating each prior period presented in the financial statements, or by recording the cumulative effect on prior reporting periods to beginning retained earnings in the year that the standard becomes effective. The Company has begun a detailed review of contracts and comparing historical accounting policies and practices to the new standard. Management is currently assessing the provisions of ASU 2014-09 and has not yet estimated its impact or selected a transition method. 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 included in this update make targeted improvements to U.S. GAAP. Entities are required to apply the amendments included in ASU 2016-01 by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. For public entities, the amendments included in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company intends to adopt the provisions of ASU 2016-01 effective August 1, 2018. Management is currently assessing the provisions of ASU 2016-01 and has not yet estimated its impact on the Company’s consolidated financial statements. 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. For public entities, the amendments included in ASU 2016-15 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company intends to adopt the provisions of ASU 2016-15 effective August 1, 2018. Management is currently assessing the provisions of ASU 2016-15 and has not yet estimated its impact on the Company’s consolidated financial statements. In January 2017, FASB issued ASU No. 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business (“ASU 2017-01”). The amendments included in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisition, disposals, goodwill and consolidation. Public entities are required to adopt the amendments included in ASU 2017-01 effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company intends to adopt the provisions of ASU 2017-01 effective August 1, 2018. Adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize the assets and liabilities that arise from most leases. The main difference between previous U.S. GAAP and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. For lessors, the guidance included in ASU 2016-02 modifies the classification criteria and the accounting for sales-type and direct financing leases. 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. For public entities, the amendments included in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company intends to adopt the provisions of ASU 2016-02 effective August 1, 2019. Early adoption of the amendments included in ASU 2016-02 is permitted. Management is currently assessing the provisions of ASU 2016-02 and has not yet estimated its impact on the Company’s consolidated financial statements. 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. For public entities, the amendments included in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company intends to adopt the provisions of ASU 2016-13 effective August 1, 2020. 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. Public entities are required to adopt the amendments included in ASU 2017-04 effective for any annual or interim impairment tests in fiscal years beginning after December 15, 2020. The Company intends to adopt the provisions of ASU 2017-04 effective 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. In January 2017, FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 232) – Amendments to SEC Paragraphs Pursuant to staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (“ASU 2017-03”). The amendments included in this update expand required qualitative disclosures when registrants cannot reasonably estimate the impact that adoption of the ASU will have on the financial statements. Such qualitative disclosures would include a comparison of the registrant’s new accounting policies, if determined, to current accounting policies, a description of the status of the registrant’s process to implement the new standard and a description of the significant implementation matters yet to be addressed by the registrant. Other than enhancements to the qualitative disclosures regarding future adoption of new ASUs, adoption of the provisions of this standard is not expected to have any impact on the Company’s consolidated financial statements. In February 2017, FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) – Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”). The amendments included in this update clarify the scope of current U.S. GAAP and add guidance for partial sales of nonfinancial assets. ASU 2017-05 requires retrospective application by either restating each prior period presented in the financial statements, or by recording the cumulative effect on prior reporting periods to beginning retained earnings in the year that the standard becomes effective. For public entities, the amendments in ASU 2017-05 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company intends to adopt the provisions of ASU 2017-05 effective August 1, 2018. Management is currently assessing the provisions of ASU 2017-05 and has not yet estimated its impact or selected a transition method. In May 2017, FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718) – Scope of Modification Accounting (“ASU 2017-09”). The amendments included in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this update will be applied prospectively to an award modified on or after the adoption date. The amendments in ASU 2017-09 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company intends to adopt the provisions of ASU 2017-09 effective August 1, 2018. Adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Proxy Costs, Net
Proxy Costs, Net | 9 Months Ended |
Apr. 29, 2017 | |
Proxy Costs, Net [Abstract] | |
Proxy Costs, Net | 3. Proxy Costs, Net Prior to the Company’s Annual Meeting of Shareholders held in April 2017, a significant Class A shareholder decided to contest the Company’s two nominees for Class A directors. As a result of the ensuing election contest, which was settled amicably among the parties prior to the Annual Meeting of Shareholders, the Company recorded $0.6 million of net legal and consulting expenses during the three months ended April 29, 2017. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Apr. 29, 2017 | |
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 April 29, 2017 July 31, 2016 (in thousands) Cash and cash equivalents $ 11,376 $ 9,902 Restricted cash 299 259 Total cash, cash equivalents and restricted cash $ 11,675 $ 10,161 The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. The Company invests cash in excess of operating requirements in income-producing short-term investments. Money market funds of $0.2 million and $0.3 million were included in cash and cash equivalents in the table above at April 29, 2017 and July 31, 2016, respectively. The Company is required to maintain restricted cash on deposit in Brazil as collateral for pending litigation matters. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Apr. 29, 2017 | |
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 nine months ended April 29, 2017 or the fiscal year ended July 31, 2016. The carrying amount of cash, cash equivalents and restricted cash approximated fair value at April 29, 2017 and July 31, 2016. These assets were classified as level 1 instruments at both dates. Investment securities available for sale of $1.5 million at April 29, 2017 and July 31, 2016 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. As a result of t he Company’s adoption of ASU 2015-07 effective August 1, 2016 (refer to Note 2 above), investment securities available for sale are not reported within the fair value hierarchy noted above. Unrealized gains or losses related to investment securities available for sale are recorded in accumulated other comprehensive income, net of applicable income taxes in the accompanying condensed consolidated balance sheets and condensed consolidated statements of changes in shareholders' equity. The cost basis of securities sold is based on the specific identification method. The Company had unrealized gains of less than $0.1 million recorded in accumulated other comprehensive income during the nine months ended April 29, 2017 and April 30, 2016. Reclassification adjustments out of accumulated other comprehensive income are included within gain on sale of assets on the accompanying condensed consolidated statements of operations. The Company did not record any sales of investment securities during the nine months ended April 29, 2017 or April 30, 2016. Long-term debt consists of bank loans and capitalized equipment leases. Lines of credit consist of borrowings for working capital requirements. Based on the Company's assessment of the current financial market and corresponding risks associated with the debt and line of credit borrowings, management believes that the carrying amount of these liabilities approximated fair value at April 29, 2017 and July 31, 2016. These liabilities were classified as level 2 instruments at both dates. There were no financial instruments classified as level 3 at April 29, 2017 or July 31, 2016. |
Revenue and Contract Receivable
Revenue and Contract Receivables, net | 9 Months Ended |
Apr. 29, 2017 | |
Revenue and Contract Receivables, net [Abstract] | |
Revenue and Contract Receivables, net | 6. Revenue and Contract Receivables, net Revenue Recognition The Company derives substantially all of its revenue from environmental consulting work, principally from the sale of labor hours. The consulting work is performed under a mix of fixed price, cost-type, and time and material contracts. Contracts are required from all customers. The Company recognizes revenue as follows: Contract Type Work Type Revenue Recognition Policy Time and materials Consulting As incurred at contract rates. Fixed price Consulting Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours. Cost-plus Consulting Costs as incurred plus fees. Fees are recognized as revenue using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts. Revenues represent services rendered by employees for which the Company maintains a primary contractual relationship with its customers, as well as certain services that the Company has elected to subcontract to others. The Company accounts for time and material contracts over the period of performance, in proportion to the costs of performance, predominately based on labor hours incurred. Revenue earned from fixed price and cost-plus contracts is recognized using the “percentage-of-completion” method, wherein revenue is recognized as project progress occurs. If an estimate of costs at completion on any contract indicates that the Company will incur a loss, the entire estimated loss is charged to operations in the period the loss becomes evident. Substantially all of the Company's cost-type work is with federal governmental agencies and, as such, is subject to audits after contract completion. Under these cost-type contracts, provisions for adjustments to accrued revenue are recognized on a quarterly basis and based on past audit settlement history. Government audits have been completed and final rates have been negotiated through fiscal year 2011. The Company records an allowance for project disallowances in other accrued liabilities for potential disallowances resulting from government audits (refer to Note 11 of these condensed consolidated financial statements). Allowances for project disallowances are recorded when the amounts are estimable. Resolution of these amounts is dependent upon the results of government audits and other formal contract close-out procedures. Change orders can occur when changes in scope are made after project work has begun, and can be initiated by either the Company or its clients. Claims are amounts in excess of the agreed contract price which the Company seeks to recover from a client for customer delays and /or errors or unapproved change orders that are in dispute. The Company recognizes costs related to change orders and claims as incurred. Revenues and profit are recognized on change orders when it is probable that the change order will be approved and the amount can be reasonably estimated. Revenues are recognized only up to the amount of costs incurred on contract claims when realization is probable, estimable and reasonable support from the customer exists. The Company expenses all bid and proposal and other pre-contract costs as incurred. Out of pocket expenses such as travel, meals, field supplies, and other costs billed direct to contracts are included in both revenues and cost of professional services. Sales and cost of sales at the Company’s South American subsidiaries exclude tax assessments by governmental authorities, which the Company collects from its customers and remits to governmental authorities. 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: (1) amounts billed for revenues from incurred costs and fees earned in accordance with contractual terms; and (2) progress billings in accordance with contractual terms that include revenue not yet earned as of the end of the reporting period. Unbilled contract receivables result from: (i) earned revenues from incurred costs not billed as of period-end; and (ii) differences between year-to-date provisional billings and year-to-date actual contract costs incurred. The Company reduces contract receivables by establishing an allowance for contract adjustments related to revenues that are deemed to be unrealizable, or that may become unrealizable in the future. The Company also reduces contract receivables by recording an Contract Receivables, Net Contract receivables, net are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Contract Receivables: Billed $ 15,812 $ 20,415 Unbilled 17,609 20,696 33,421 41,111 Allowance for doubtful accounts and contract adjustments (2,260 ) (6,792 ) Contract receivables, net $ 31,161 $ 34,319 Billed contract receivables included contractual retainage balances of $1.1 million and $0.9 million at April 29, 2017 and July 31, 2016, respectively. Management anticipates that the Company will substantially bill and collect the unbilled receivables and retainage balances outstanding at April 29, 2017 within one year. Contract Receivable Concentrations Significant concentrations of contract receivables and the allowance for doubtful accounts and contract adjustments are summarized in the following table. Balance at April 29, 2017 Balance at July 31, 2016 Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments (in thousands) EEI and its subsidiaries located in the U.S. $ 21,389 $ 958 $ 29,027 $ 5,809 Subsidiaries located in South America 11,610 1,302 11,659 983 Other foreign subsidiaries 422 --- 425 --- Totals $ 33,421 $ 2,260 $ 41,111 $ 6,792 During the three months ended January 28, 2017, the Company wrote-off $4.9 million of aged and fully reserved contract receivable balances at EEI related to a specific project in the Middle East, based on management’s assessment that cash collections are not likely. Prior to the write-off described above, combined contract receivables related to projects in the Middle East, Africa and Asia represented 12% of total contract receivables at July 31, 2016, while the combined allowance for doubtful accounts and contract adjustments related to these projects represented 72% of total allowance for doubtful accounts and contract adjustments at July 31, 2016. This allowance percentage reflected the Company’s experience of heightened operating risks (i.e., political, regulatory and cultural risks) within these foreign regions in comparison with similar risks in the United States, Canada and South America, which result in increased collection risks and the risk of the Company expending resources that it may not recover for several months, or at all. Allowance for Doubtful Accounts and Contract Adjustments Activity within the allowance for doubtful accounts and contract adjustments is summarized in the following table. Three Months Ended Nine Months Ended April 29, 2017 April 30, 2016 April 29, 2017 April 30, 2016 (in thousands) Balance at beginning of period $ 2,047 $ 6,119 $ 6,792 5,954 Net increase (decrease) due to adjustments in the allowance for: Contract adjustments (1) --- (428 ) (4,941 ) (577 ) Doubtful accounts (2) 213 107 409 421 Balance at end of period $ 2,260 $ 5,798 $ 2,260 $ 5,798 (1) Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations. (2) Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations. |
Sale of Property
Sale of Property | 9 Months Ended |
Apr. 29, 2017 | |
Sale of Property [Abstract] | |
Sale of Property | 7. Sale of Property In March 2017, the Company consummated the sale of land, a vacant building, related building improvements and fixtures, and warehouse space to a non-affiliated third party for approximately $1.5 million. After closing costs, the Company recorded a gain on sale of $0.1 million from this transaction during the three months ended April 29, 2017. |
Lines of Credit
Lines of Credit | 9 Months Ended |
Apr. 29, 2017 | |
Lines of Credit [Abstract] | |
Lines of Credit | 8. Lines of Credit Unsecured lines of credit are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Outstanding cash draws, recorded as lines of credit on the accompanying condensed consolidated balance sheets $ 689 $ 312 Outstanding letters of credit to support operations 2,035 2,187 Total amounts used under lines of credit 2,724 2,499 Remaining amounts available under lines of credit 36,287 36,496 Total approved unsecured lines of credit $ 39,011 $ 38,995 As of April 29, 2017, contractual interest rates for lines of credit ranged from 2.75% to 3.00% for the Company’s U.S. operations and 10.52% to 11.75% for the Company’s South American operations. The Company’s lenders have reaffirmed the lines of credit within the past twelve months. |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 9 Months Ended |
Apr. 29, 2017 | |
Debt and Capital Lease Obligations [Abstract] | |
Debt and Capital Lease Obligations | 9. Debt and Capital Lease Obligations Debt and capital lease obligations are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Various bank loans and advances (interest rates ranging from 6.00% to 6.58% at April 29, 2017) $ 132 $ 217 Capital lease obligations (interest rates ranging from 7.36% to 15.09% at April 29, 2017) 130 240 262 457 Current portion of long-term debt and capital lease obligations (203 ) (240 ) Long-term debt and capital lease obligations $ 59 $ 217 The aggregate maturities of long-term debt and capital lease obligations as of April 29, 2017 are summarized in the following table. Twelve Months Ended April 30, Amount (in thousands) 2018 $ 203 2019 35 2020 13 2021 11 Thereafter - Total $ 262 |
Income Taxes
Income Taxes | 9 Months Ended |
Apr. 29, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes The estimated effective tax rate was 63.0% and 96.4% for the nine months ended April 29, 2017 and April 30, 2016, respectively. The effective tax rate for the nine months ended April 29, 2017 includes the incremental tax impact of the Company’s portion of dividends declared by its majority owned subsidiary in Chile, which was greater than the dividends anticipated at July 31, 2016, and the write-off of a deferred tax asset previously maintained by the Company’s majority owned subsidiary in Peru. The effective tax rate for the nine months ended April 30, 2016 includes a valuation allowance of $0.9 million recorded as a reduction of deferred tax assets maintained by the Company’s majority owned subsidiary in Brazil, and the impact of $0.7 million of taxable dividends repatriated to the U.S. from foreign subsidiaries. |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Apr. 29, 2017 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | 11. Other Accrued Liabilities Other accrued liabilities are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Allowance for project disallowances $ 687 $ 1,819 Other 2,350 1,626 Total other accrued liabilities $ 3,037 $ 3,445 Activity within the allowance for project disallowances is summarized in the following table. Three Months Ended Nine Months Ended April 29, 2017 April 30, 2016 April 29, 2017 April 30, 2016 (in thousands) Balance at beginning of period $ 711 $ 1,819 $ 1,819 $ 2,243 Reduction of settlement estimate recorded in prior periods (24 ) --- (1,132 ) (424 ) Balance at end of period $ 687 $ 1,819 $ 687 $ 1,819 The allowance for project disallowances represents potential disallowances of amounts billed and collected resulting from contract close-outs and government audits. Allowances for project disallowances are recorded when the amounts are estimable, and may be revised during subsequent reporting periods when estimates of settlement amounts become more certain, or when actual settlements are finalized. Settlements of certain contracts completed during prior fiscal years were finalized during the nine months ended April 29, 2017 and April 30, 2016, resulting in no cash received or paid during either period. |
Stock Award Plan
Stock Award Plan | 9 Months Ended |
Apr. 29, 2017 | |
Stock Award Plan [Abstract] | |
Stock Award Plan | 12 . Stock Award Plan EEI adopted the 1998 Stock Award Plan effective March 16, 1998. This plan, together with supplemental plans that were subsequently adopted by the Company’s Board of Directors, is referred to as the “Stock Award Plan.” The Stock Award Plan is not a qualified plan under Section 401(a) of the Internal Revenue Code. Under the Stock Award Plan, Directors, officers and other key employees of EEI or any of its subsidiaries may be awarded Class A Common Stock as a bonus for services rendered to the Company or its subsidiaries, based upon the fair market value of the common stock at the time of the award. The Stock Award Plan authorizes the Company’s Board of Directors to determine the vesting period and the circumstances under which the awards may be forfeited. Under the supplemental plan which expired in October 2016, the Company issued 21,836 shares of Class A Common Stock under the Stock Award Plan, all of which are fully vested. In October 2016, the Company’s Board of Directors adopted the current supplemental plan (the “2016 Stock Award Plan”). The 2016 Stock Award Plan permits awards of up to 200,000 shares of Class A Common Stock for a period of up to five years until its termination in October 2021. As of April 29, 2017, there have not been any stock awards granted under the 2016 Stock Award Plan. EEI recorded non-cash compensation expense of $0 and less than $0.1 million during the nine months ended April 29, 2017 and April 30, 2016, respectively. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Apr. 29, 2017 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 13. Shareholders' Equity Class A and Class B Common Stock The relative rights, preferences and limitations of the Company's Class A and Class B Common Stock are summarized as follows: Holders of Class A shares are entitled to elect 25% of the Board of Directors so long as the number of outstanding Class A shares is at least 10% of the combined total number of outstanding Class A and Class B common shares. Holders of Class A common shares have one-tenth the voting power of Class B common shares with respect to most other matters. In addition, Class A shares are eligible to receive dividends in excess of (and not less than) those paid to holders of Class B shares. Holders of Class B shares have the option to convert at any time, each share of Class B Common Stock into one share of Class A Common Stock. Upon sale or transfer, shares of Class B Common Stock will automatically convert into an equal number of shares of Class A Common Stock, except that sales or transfers of Class B Common Stock to an existing holder of Class B Common Stock or to an immediate family member will not cause such shares to automatically convert into Class A Common Stock. Restrictive Shareholder Agreement Messrs. Gerhard J. Neumaier (deceased), Frank B. Silvestro, Ronald L. Frank, and Gerald A. Strobel (the “Signatories”) entered into a Stockholders’ Agreement dated May 12, 1970, as amended January 24, 2011 (the “Stockholders’ Agreement”). The Stockholders’ Agreement governs the sale of certain shares of Ecology and Environment, Inc. common stock (now classified as Class B Common Stock) owned by the Signatories, 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 Stockholders’ Agreement (“Permitted Transferees”). The Stockholders’ 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 Stockholders’ Agreement, that the selling party must first allow the other Signatories (not including any Permitted Transferee, as defined in the Stockholders’ Agreement) the opportunity to acquire on a pro rata basis, with right of over-allotment, all of such shares covered by the offer on the same terms and conditions proposed by the offer. Cash Dividends The Company declared and paid $0.9 million and $1.0 million of cash dividends during the nine months ended April 29, 2017 and April 30, 2016, respectively. The Company paid dividends of $0.9 million and $1.0 million in August 2016 and 2015, respectively, 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 April 29, 2017, 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 nine months ended April 29, 2017 or April 30, 2016. Noncontrolling Interests The Company discloses noncontrolling interests as a separate component of consolidated shareholders’ equity on the accompanying consolidated balance sheets. Earnings and other comprehensive income (loss) are separately attributed to both the controlling and noncontrolling interests. The Company calculates EPS 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. The Company did not acquire additional interest in any of its majority-owned subsidiaries during the nine months ended April 29, 2017 or April 30, 2016. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Unrealized net foreign currency translation losses $ (2,172 ) $ (2,176 ) Unrealized net investment gains on available for sale investments 9 33 Total accumulated other comprehensive loss $ (2,163 ) $ (2,143 ) |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Apr. 29, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14. Earnings Per Share The Company calculates basic and diluted EPS by dividing the net income attributable to Ecology and Environment, Inc. common shareholders by the weighted average number of common shares outstanding for the period. After consideration of all the rights and privileges of the Class A and Class B stockholders summarized in Note 13, in particular the right of the holders of the Class B common stock to elect no less than 75% of the Board of Directors making it highly unlikely that the Company will pay a dividend on Class A common stock in excess of Class B common stock, the Company allocates undistributed earnings between the 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. The computation of earnings per share is included in the following table. Three Months Ended Nine Months Ended April 29, 2017 April 30, 2016 April 29, 2017 April 30, 2016 (in thousands, except share and per share amounts) Net income attributable to Ecology and Environment, Inc. $ 252 $ 175 $ 822 $ 357 Dividends declared --- --- (859 ) (1,033 ) Balance at end of period $ 252 $ 175 $ (37 ) $ (676 ) Weighted-average common shares outstanding - basic and diluted 4,294,102 4,290,720 4,293,646 4,290,106 Distributed earnings per share - basic and diluted $ --- $ --- $ 0.20 $ 0.24 Undistributed earnings (distributions in excess of earnings) per share - basic and diluted 0.06 0.04 (0.01 ) (0.16 ) Net income per common share - basic and diluted $ 0.06 $ 0.04 $ 0.19 $ 0.08 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Apr. 29, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 15. Segment Reporting The Company reports segment information based on the geographic location of its subsidiary operations (for revenues) and the location of its offices (for long-lived assets). Revenue by business segment is summarized in the following table. Three Months Ended Nine Months Ended April 29, 2017 April 30, 2016 April 29, 2017 April 30, 2016 (in thousands) EEI and its subsidiaries located in the U.S. $ 18,402 $ 19,658 $ 57,706 $ 62,335 Subsidiaries located in South America: Walsh Peru, S.A. Ingenieros y Cientificos Consultores (“Walsh Peru”) 1,704 2,288 4,441 8,153 Gestion Ambiental Consultores S.A. (“GAC”) 1,642 1,949 5,699 5,832 Ecology & Environment do Brasil, Ltda (“E&E Brasil”) 2,375 1,202 6,540 3,232 Other 81 121 225 371 5,802 5,560 16,905 17,588 Total revenue, net $ 24,204 $ 25,218 $ 74,611 $ 79,923 Long-lived assets by business segment are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) EEI and its subsidiaries located in the United States $ 3,314 $ 4,916 Subsidiaries located in South America 1,109 1,178 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Apr. 29, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. 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 E&E Brasil, a majority-owned subsidiary of EEI. The Notice of Infraction concerned the taking and collecting wild animal specimens without authorization by the competent authority and imposed a fine of 520,000 Reais against E&E Brazil. The Institute also filed Notices of Infraction against four employees of E&E Brasil alleging the same claims and imposed fines against those individuals that, in the aggregate, were equal to the fine imposed against E&E Brasil. The Institute has not filed any claim against EEI. E&E Brasil has filed court claims appealing the administrative decisions of the Institute for E & E Brasil’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 Brasil had obtained the necessary permits for the surveys and collections of specimens under applicable Brazilian regulations and that the protected conservation area is not clearly marked to show its boundaries. 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 Brasil are pending agency determination. At April 29, 2017, the Company maintained a reserve of approximately $0.3 million in other accrued liabilities related to these claims. Contract Termination Provisions Certain contracts contain termination provisions under which the customer may, without penalty, terminate the contracts upon written notice to the Company. In the event of termination, the Company would be paid only termination costs in accordance with the particular contract. Generally, termination costs include unpaid costs incurred to date, earned fees and any additional costs directly allocable to the termination. The Company did not experience early termination of any material contracts during the nine months ended April 29, 2017 or during the fiscal year ended July 31, 2016. |
Cash, Cash Equivalents and Re25
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Apr. 29, 2017 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Summary of Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Cash and cash equivalents $ 11,376 $ 9,902 Restricted cash 299 259 Total cash, cash equivalents and restricted cash $ 11,675 $ 10,161 |
Revenue and Contract Receivab26
Revenue and Contract Receivables, net (Tables) | 9 Months Ended |
Apr. 29, 2017 | |
Revenue and Contract Receivables, net [Abstract] | |
Revenue Recognition | The Company recognizes revenue as follows: Contract Type Work Type Revenue Recognition Policy Time and materials Consulting As incurred at contract rates. Fixed price Consulting Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours. Cost-plus Consulting Costs as incurred plus fees. Fees are recognized as revenue using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts. |
Contract Receivables, Net | Contract receivables, net are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Contract Receivables: Billed $ 15,812 $ 20,415 Unbilled 17,609 20,696 33,421 41,111 Allowance for doubtful accounts and contract adjustments (2,260 ) (6,792 ) Contract receivables, net $ 31,161 $ 34,319 |
Contract Receivables and Allowance for Doubtful Accounts and Contract Adjustments by Geographical Areas | Significant concentrations of contract receivables and the allowance for doubtful accounts and contract adjustments are summarized in the following table. Balance at April 29, 2017 Balance at July 31, 2016 Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments (in thousands) EEI and its subsidiaries located in the U.S. $ 21,389 $ 958 $ 29,027 $ 5,809 Subsidiaries located in South America 11,610 1,302 11,659 983 Other foreign subsidiaries 422 --- 425 --- Totals $ 33,421 $ 2,260 $ 41,111 $ 6,792 |
Allowance for Doubtful Accounts and Contract Adjustments | Activity within the allowance for doubtful accounts and contract adjustments is summarized in the following table. Three Months Ended Nine Months Ended April 29, 2017 April 30, 2016 April 29, 2017 April 30, 2016 (in thousands) Balance at beginning of period $ 2,047 $ 6,119 $ 6,792 5,954 Net increase (decrease) due to adjustments in the allowance for: Contract adjustments (1) --- (428 ) (4,941 ) (577 ) Doubtful accounts (2) 213 107 409 421 Balance at end of period $ 2,260 $ 5,798 $ 2,260 $ 5,798 (1) Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations. (2) Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations. |
Lines of Credit (Tables)
Lines of Credit (Tables) | 9 Months Ended |
Apr. 29, 2017 | |
Lines of Credit [Abstract] | |
Unsecured Lines of Credit | Unsecured lines of credit are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Outstanding cash draws, recorded as lines of credit on the accompanying condensed consolidated balance sheets $ 689 $ 312 Outstanding letters of credit to support operations 2,035 2,187 Total amounts used under lines of credit 2,724 2,499 Remaining amounts available under lines of credit 36,287 36,496 Total approved unsecured lines of credit $ 39,011 $ 38,995 |
Debt and Capital Lease Obliga28
Debt and Capital Lease Obligations (Tables) | 9 Months Ended |
Apr. 29, 2017 | |
Debt and Capital Lease Obligations [Abstract] | |
Debt Inclusive of Capital Lease Obligations | Debt and capital lease obligations are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Various bank loans and advances (interest rates ranging from 6.00% to 6.58% at April 29, 2017) $ 132 $ 217 Capital lease obligations (interest rates ranging from 7.36% to 15.09% at April 29, 2017) 130 240 262 457 Current portion of long-term debt and capital lease obligations (203 ) (240 ) Long-term debt and capital lease obligations $ 59 $ 217 |
Aggregate Maturities of Long-term Debt and Capital Lease Obligations | The aggregate maturities of long-term debt and capital lease obligations as of April 29, 2017 are summarized in the following table. Twelve Months Ended April 30, Amount (in thousands) 2018 $ 203 2019 35 2020 13 2021 11 Thereafter - Total $ 262 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Apr. 29, 2017 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Allowance for project disallowances $ 687 $ 1,819 Other 2,350 1,626 Total other accrued liabilities $ 3,037 $ 3,445 |
Allowance for Project Disallowances | Activity within the allowance for project disallowances is summarized in the following table. Three Months Ended Nine Months Ended April 29, 2017 April 30, 2016 April 29, 2017 April 30, 2016 (in thousands) Balance at beginning of period $ 711 $ 1,819 $ 1,819 $ 2,243 Reduction of settlement estimate recorded in prior periods (24 ) --- (1,132 ) (424 ) Balance at end of period $ 687 $ 1,819 $ 687 $ 1,819 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Apr. 29, 2017 | |
Shareholders' Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) Unrealized net foreign currency translation losses $ (2,172 ) $ (2,176 ) Unrealized net investment gains on available for sale investments 9 33 Total accumulated other comprehensive loss $ (2,163 ) $ (2,143 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Apr. 29, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The computation of earnings per share is included in the following table. Three Months Ended Nine Months Ended April 29, 2017 April 30, 2016 April 29, 2017 April 30, 2016 (in thousands, except share and per share amounts) Net income attributable to Ecology and Environment, Inc. $ 252 $ 175 $ 822 $ 357 Dividends declared --- --- (859 ) (1,033 ) Balance at end of period $ 252 $ 175 $ (37 ) $ (676 ) Weighted-average common shares outstanding - basic and diluted 4,294,102 4,290,720 4,293,646 4,290,106 Distributed earnings per share - basic and diluted $ --- $ --- $ 0.20 $ 0.24 Undistributed earnings (distributions in excess of earnings) per share - basic and diluted 0.06 0.04 (0.01 ) (0.16 ) Net income per common share - basic and diluted $ 0.06 $ 0.04 $ 0.19 $ 0.08 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Apr. 29, 2017 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | Revenue by business segment is summarized in the following table. Three Months Ended Nine Months Ended April 29, 2017 April 30, 2016 April 29, 2017 April 30, 2016 (in thousands) EEI and its subsidiaries located in the U.S. $ 18,402 $ 19,658 $ 57,706 $ 62,335 Subsidiaries located in South America: Walsh Peru, S.A. Ingenieros y Cientificos Consultores (“Walsh Peru”) 1,704 2,288 4,441 8,153 Gestion Ambiental Consultores S.A. (“GAC”) 1,642 1,949 5,699 5,832 Ecology & Environment do Brasil, Ltda (“E&E Brasil”) 2,375 1,202 6,540 3,232 Other 81 121 225 371 5,802 5,560 16,905 17,588 Total revenue, net $ 24,204 $ 25,218 $ 74,611 $ 79,923 |
Long-lived Assets by Geographic Areas | Long-lived assets by business segment are summarized in the following table. Balance at April 29, 2017 July 31, 2016 (in thousands) EEI and its subsidiaries located in the United States $ 3,314 $ 4,916 Subsidiaries located in South America 1,109 1,178 |
Organization and Basis of Pre33
Organization and Basis of Presentation (Details) | 9 Months Ended |
Apr. 29, 2017SubsidiaryCountryDisciplineProject | |
Organization and Basis of Presentation [Abstract] | |
Number of wholly owned and majority owned operating subsidiaries | Subsidiary | 7 |
Number of countries in which the company operates | 5 |
Number of disciplines | Discipline | 80 |
Number of projects for clients | Project | 50,000 |
Minimum number of countries in which the company completed projects | 120 |
Proxy Costs, Net (Details)
Proxy Costs, Net (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 29, 2017USD ($)Nominee | Apr. 30, 2016USD ($) | Apr. 29, 2017USD ($)Nominee | Apr. 30, 2016USD ($) | |
Proxy Costs, Net [Abstract] | ||||
Number of nominees contesting for Class A directors nomination | Nominee | 2 | 2 | ||
Legal and consulting expenses, net | $ | $ 550 | $ 0 | $ 550 | $ 0 |
Cash, Cash Equivalents and Re35
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Apr. 29, 2017 | Jul. 31, 2016 | Apr. 30, 2016 | Jul. 31, 2015 |
Cash, Cash Equivalents and Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 11,376 | $ 9,902 | ||
Restricted cash | 299 | 259 | ||
Total cash, cash equivalents and restricted cash | 11,675 | 10,161 | $ 8,230 | $ 8,703 |
Money Market Funds [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Short-term investments | $ 200 | $ 300 |
Fair Value of Financial Instr36
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | $ 1,481 | $ 1,499 | |
Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gross unrealized gains | $ 100 | $ 100 |
Revenue and Contract Receivab37
Revenue and Contract Receivables, net, Summary of Contract Receivables, net (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Apr. 29, 2017 | Jan. 28, 2017 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Jul. 31, 2015 | |
Revenue and Contract Receivables, net [Abstract] | ||||||
Billed Contracts Receivable | $ 15,812 | $ 20,415 | ||||
Unbilled Contracts Receivable | 17,609 | 20,696 | ||||
Contract receivables, gross | 33,421 | 41,111 | ||||
Allowance for doubtful accounts and contract adjustments | (2,260) | $ (2,047) | (6,792) | $ (5,798) | $ (6,119) | $ (5,954) |
Contract receivables, net | 31,161 | 34,319 | ||||
Contractual retainage balance included under billed contract receivable | $ 1,100 | $ 900 | ||||
Management anticipation for receivables collection | 1 year |
Revenue and Contract Receivab38
Revenue and Contract Receivables, net, Contract Receivables Concentrations (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Jan. 28, 2017 | Apr. 29, 2017 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Jul. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total billed and unbilled contract receivables | $ 33,421 | $ 41,111 | ||||
Allowance for doubtful accounts and contract adjustments | $ 2,047 | 2,260 | $ 6,792 | $ 5,798 | $ 6,119 | $ 5,954 |
Specific write offs of aged and uncollectable contract receivables | $ 4,900 | |||||
Contract receivables | 12.00% | |||||
Allowance for doubtful accounts receivables | 72.00% | |||||
U.S. [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total billed and unbilled contract receivables | 21,389 | $ 29,027 | ||||
Allowance for doubtful accounts and contract adjustments | 958 | 5,809 | ||||
South America [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total billed and unbilled contract receivables | 11,610 | 11,659 | ||||
Allowance for doubtful accounts and contract adjustments | 1,302 | 983 | ||||
Other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total billed and unbilled contract receivables | 422 | 425 | ||||
Allowance for doubtful accounts and contract adjustments | $ 0 | $ 0 |
Revenue and Contract Receivab39
Revenue and Contract Receivables, net, Allowance for Doubtful Accounts and Contract Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 29, 2017 | Jan. 28, 2017 | Apr. 30, 2016 | Apr. 29, 2017 | Apr. 30, 2016 | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Balance at beginning of period | $ 2,047 | $ 6,119 | $ 6,792 | $ 5,954 | ||
Net increase (decrease) due to adjustments in the allowance for contract adjustments | [1] | 0 | (428) | (4,941) | (577) | |
Net increase (decrease) due to adjustments in the allowance for doubtful accounts | [2] | 213 | 107 | 409 | 421 | |
Balance at end of period | $ 2,260 | $ 2,047 | $ 5,798 | $ 2,260 | $ 5,798 | |
Reversal of allowance for doubtful accounts | 4,900 | |||||
Specific write offs of aged and uncollectable contract receivables | $ 4,900 | |||||
[1] | Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations. During the three months ended January 28, 2017, the Company reversed $4.9 million of allowance related to a specific project in the Middle East, for which a corresponding $4.9 million contract receivable balance was also written off during the period. | |||||
[2] | Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations. |
Sale of Property (Details)
Sale of Property (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Apr. 29, 2017 | Apr. 29, 2017 | Apr. 30, 2016 | |
Sale of Property [Abstract] | ||||
Sale of property related building improvements and fixtures | $ 1,500 | $ 1,483 | $ 5 | |
Gain on sale on property | $ 100 |
Lines of Credit (Details)
Lines of Credit (Details) - USD ($) $ in Thousands | Apr. 29, 2017 | Jul. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Outstanding cash draws, recorded as lines of credit on the accompanying condensed consolidated balance sheets | $ 689 | $ 312 |
Outstanding letters of credit to support operations | 2,035 | 2,187 |
Total amounts used under lines of credit | 2,724 | 2,499 |
Remaining amounts available under lines of credit | 36,287 | 36,496 |
Total approved unsecured lines of credit | $ 39,011 | $ 38,995 |
Minimum [Member] | U.S. [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 2.75% | |
Minimum [Member] | South America [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 10.52% | |
Maximum [Member] | U.S. [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 3.00% | |
Maximum [Member] | South America [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 11.75% |
Debt and Capital Lease Obliga42
Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | Apr. 29, 2017 | Jul. 31, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 262 | $ 457 |
Current portion of long-term debt and capital lease obligations | (203) | (240) |
Long-term debt and capital lease obligations | 59 | 217 |
Long-term Debt, by Maturity [Abstract] | ||
2,018 | 203 | |
2,019 | 35 | |
2,020 | 13 | |
2,021 | 11 | |
Thereafter | 0 | |
Total | 262 | 457 |
Various Bank Loans and Advances [Member] | ||
Debt Instrument [Line Items] | ||
Total | 132 | 217 |
Long-term Debt, by Maturity [Abstract] | ||
Total | $ 132 | 217 |
Various Bank Loans and Advances [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.00% | |
Various Bank Loans and Advances [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.58% | |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 130 | 240 |
Long-term Debt, by Maturity [Abstract] | ||
Total | $ 130 | $ 240 |
Capital Lease Obligations [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.36% | |
Capital Lease Obligations [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 15.09% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Apr. 29, 2017 | Apr. 30, 2016 | |
Income Taxes [Abstract] | ||
Estimated effective tax rate | 63.00% | 96.40% |
Valuation allowance | $ 0.9 | |
Taxable dividends repatriated to the U.S. from foreign subsidiaries | $ 0.7 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 29, 2017 | Apr. 30, 2016 | Apr. 29, 2017 | Apr. 30, 2016 | Apr. 29, 2017 | Jul. 31, 2016 | |
Other Accrued Liabilities [Abstract] | ||||||
Allowance for project disallowances | $ 687 | $ 1,819 | $ 687 | $ 2,243 | $ 687 | $ 1,819 |
Other | 2,350 | 1,626 | ||||
Total other accrued liabilities | $ 3,037 | $ 3,445 | ||||
Allowance for Project Disallowances [Roll Forward] | ||||||
Balance at beginning of period | 711 | 1,819 | 1,819 | 2,243 | ||
Reduction of settlement estimate recorded in prior periods | (24) | 0 | (1,132) | (424) | ||
Balance at end of period | $ 687 | $ 1,819 | $ 687 | $ 1,819 |
Stock Award Plan (Details)
Stock Award Plan (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | |
Class of Stock [Line Items] | |||
Non-cash compensation expense | $ 0 | $ 53 | |
2016 Stock Award Plan [Member] | |||
Class of Stock [Line Items] | |||
Shares granted (in shares) | 0 | ||
Maximum [Member] | |||
Class of Stock [Line Items] | |||
Non-cash compensation expense | $ 100 | ||
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares awarded (in shares) | 21,836 | ||
Shares authorized (in shares) | 6,000,000 | 6,000,000 | |
Class A Common Stock [Member] | Directors Chairman [Member] | |||
Class of Stock [Line Items] | |||
Shares authorized (in shares) | 200,000 | ||
Class A Common Stock [Member] | Directors Chairman [Member] | Maximum [Member] | |||
Class of Stock [Line Items] | |||
Term of the award plan | 5 years |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Aug. 31, 2016 | Aug. 31, 2015 | Apr. 29, 2017 | Apr. 30, 2016 | Apr. 29, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Aug. 31, 2010 | |
Cash Dividends [Abstract] | ||||||||
Cash dividends declared | $ 0 | $ 0 | $ 859 | $ 1,033 | ||||
Dividends paid | $ 900 | $ 1,000 | ||||||
Accumulated Other Comprehensive Loss [Abstract] | ||||||||
Unrealized net foreign currency translation losses | (2,172) | (2,172) | $ (2,176) | |||||
Unrealized net investment gains on available for sale investments | 9 | 9 | 33 | |||||
Total accumulated other comprehensive loss | $ (2,163) | $ (2,163) | $ (2,143) | |||||
Class A [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 [Abstract] | ||||||||
Number of shares authorized to be repurchased (in shares) | 200,000 | |||||||
Number of shares repurchased during the period (in shares) | 122,918 | |||||||
Remaining number of shares authorized to be repurchased (in shares) | 77,082 | 77,082 | ||||||
Number of share acquired (in shares) | 0 | 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | Apr. 29, 2017 | Apr. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Minimum percentage right of Class B common stock holders to elect Board of Directors | 75.00% | |||
Net income attributable to Ecology and Environment, Inc. | $ 252 | $ 175 | $ 822 | $ 357 |
Dividends declared | 0 | 0 | (859) | (1,033) |
Balance at end of period | $ 252 | $ 175 | $ (37) | $ (676) |
Weighted-average common shares outstanding - basic and diluted (in shares) | 4,294,102 | 4,290,720 | 4,293,646 | 4,290,106 |
Distributed earnings per share - basic and diluted (in dollars per share) | $ 0 | $ 0 | $ 0.20 | $ 0.24 |
Undistributed earnings (distributions in excess of earnings) per share - basic and diluted (in dollars per share) | 0.06 | 0.04 | (0.01) | (0.16) |
Net income per common share - basic and diluted (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.19 | $ 0.08 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 29, 2017 | Apr. 30, 2016 | Apr. 29, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 24,204 | $ 25,218 | $ 74,611 | $ 79,923 | |
Reportable Geographical Components [Member] | United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 18,402 | 19,658 | 57,706 | 62,335 | |
Long-Lived Assets | 3,314 | 3,314 | $ 4,916 | ||
Reportable Geographical Components [Member] | South America [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 5,802 | 5,560 | 16,905 | 17,588 | |
Long-Lived Assets | 1,109 | 1,109 | $ 1,178 | ||
Reportable Geographical Components [Member] | Peru [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 1,704 | 2,288 | 4,441 | 8,153 | |
Reportable Geographical Components [Member] | Chile [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 1,642 | 1,949 | 5,699 | 5,832 | |
Reportable Geographical Components [Member] | Brazil [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 2,375 | 1,202 | 6,540 | 3,232 | |
Reportable Geographical Components [Member] | Other [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 81 | $ 121 | $ 225 | $ 371 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 9 Months Ended | ||
Apr. 29, 2017USD ($)Employee | Apr. 29, 2017BRL | Jul. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |||
Other accrued liabilities | $ | $ 3,037 | $ 3,445 | |
Pending Litigation [Member] | Ecology and Environment do Brasil LTDA [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | BRL | BRL 520,000 | ||
Number of employees individually served with notices of infraction | 4 | ||
Settled Litigation [Member] | Ecology and Environment do Brasil LTDA [Member] | |||
Loss Contingencies [Line Items] | |||
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 | $ | $ 300 |