þ
|
Annual
report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
For
the fiscal year ended July 31, 2007
|
|
Transition
report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
For
the transition period from __________ to
__________
|
New
York
(State
or other jurisdiction of incorporation or
organization)
|
16-0971022
(IRS
Employer Identification Number)
|
|||
368
Pleasant View Drive, Lancaster, NY
(Address
of principal executive offices)
|
14086
(Zip
code)
|
|||
716/684-8060
(Registrant's
telephone number, including area code)
|
||||
Securities
Registered Pursuant to Section 12(b) of the
Act:
|
||||
Title
of each class
Class
A Common Stock par value $.01 per share
|
Name
of each exchange on which registered
American
Stock Exchange
|
|||
Securities
registered pursuant to Section 12(g) of the
Act:
|
None
(Title
of class)
|
Large
accelerated
filer
|
Accelerated
filer
|
Non-accelerated
filer þ
|
|
|
|
|
|
Page
|
PART
1
|
||
|
|
|
Item
1.
|
|
|
|
General
|
4
|
|
START
Contracts
|
4
|
|
Saudi
Arabia / Kuwait Contracts
|
4
|
|
Task
Order Contracts
|
4
|
|
Environmental
Consulting Services
|
4
|
|
Analytical
Laboratory Services
|
7
|
|
Aquaculture
|
7
|
|
Segment
Reporting
|
8
|
|
Regulatory
Background
|
8
|
|
Potential
Liability and Insurance
|
9
|
|
Market
and Customers
|
9
|
|
Backlog
|
10
|
|
Competition
|
10
|
|
Employees
|
10
|
Corporate
Governance / American Stock Exchange Rules
|
10
|
|
Item
1A.
|
10
|
|
Item
1B.
|
12
|
|
Item
2.
|
13
|
|
Item
3.
|
13
|
|
Item
4.
|
13
|
|
|
|
|
PART
II
|
||
|
|
|
Item
5.
|
14
|
|
Item
6.
|
15
|
|
Item
7.
|
16
|
|
Item
7A.
|
22
|
|
Item
8.
|
23
|
|
Item
9.
|
42
|
|
Item
9A.
|
43
|
|
Item
9B.
|
43
|
|
|
|
|
PART
III
|
||
|
|
|
Item
10.
|
44
|
|
Item
11.
|
45
|
|
Item
12.
|
49
|
|
Item
13.
|
51
|
|
Item
14.
|
51
|
|
|
|
|
PART
IV
|
||
|
|
|
Item
15.
|
53
|
Item
1.
|
·
|
Pipelines
|
·
|
Offshore
Energy
|
·
|
Wind
|
·
|
Clean
Coal
|
·
|
Green
Ride ®
|
·
|
Green
Buildings.
|
·
|
Green
Meter
|
·
|
Environmental
Planning and Assessment
|
·
|
Military
Master Planning
|
·
|
The
National Environmental Policy Act
("NEPA")
|
·
|
The
Comprehensive Environmental Response, Compensation, And Liability
Act Of
1980, As Amended ("CERCLA", "Superfund" or the "Superfund
Act")
|
·
|
The
Resource Conservation And Recovery Act Of 1976
("RCRA")
|
·
|
Toxic
Substance Control Act Of 1976
("TSCA")
|
·
|
Clean
Air Act
|
·
|
Safe
Drinking Water And Clean Water Acts
("SDWA")
|
·
|
Other
|
|
(Millions
of $)
|
|||||||
|
Fiscal
2007
|
Fiscal
2006
|
||||||
|
|
|
||||||
Total
firm backlog
|
$ |
53.4
|
$ |
48.3
|
||||
Anticipated
completion of firm backlog in next twelve months
|
28.5
|
24.1
|
||||||
Maximum
potential gross revenues from task order contracts
|
169.4
|
136.0
|
Item
1A.
|
Item
1B.
|
|
None
to report.
|
Item
2.
|
Item
3.
|
Item
5.
|
Market
for the Registrant's Common
Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities.
|
|
(a)
|
Principal
Market or Markets. The Company's Class A Common Stock is traded on
the
American Stock Exchange. There is no separate market for the Company's
Class B Common Stock.
|
|
High
|
Low
|
||||||
|
|
|
||||||
First
Quarter (commencing August 1, 2006 - October 28, 2006)
|
$ |
10.34
|
$ |
9.87
|
||||
Second
Quarter (commencing October 29, 2006 - January 27, 2007)
|
11.81
|
9.96
|
||||||
Third
Quarter (commencing January 28, 2007 - April 28, 2007)
|
13.05
|
11.01
|
||||||
Fourth
Quarter (commencing April 29, 2007 - July 31, 2007)
|
13.45
|
12.05
|
|
High
|
Low
|
||||||
|
|
|
||||||
First
Quarter (commencing August 1, 2005 - October 29, 2005)
|
9.03
|
6.75
|
||||||
Second
Quarter (commencing October 30, 2005 - January 28, 2006)
|
9.49
|
7.70
|
||||||
Third
Quarter (commencing January 29, 2006 - April 29, 2006)
|
10.88
|
9.35
|
||||||
Fourth
Quarter (commencing April 30, 2006 - July 31, 2006)
|
10.85
|
9.75
|
Equity
Compensation Plan Information as of July 31, 2007:
|
||||||
Plan
category
|
|
Number
of securities to be issued upon exercise of outstanding options,
warrants
and rights.
|
|
Weighted
average exercise price of outstanding options, warrants and
rights
|
|
Number
of securities remaining available for
future
issuance
|
|
|
|
|
|
|
|
Equity
compensation plans approved by securities holders:
|
|
|
|
|
|
|
-
1986 Incentive Stock Option Plan
|
|
---
|
|
---
|
|
----
|
-
2003 Stock Award Plan
|
|
---
|
|
---
|
|
61,054
|
|
|
|
|
|
|
|
Equity
compensation plans not approved by
securities
holders:
|
|
|
|
|
|
|
-
1998 Stock Award Plan
|
|
---
|
|
---
|
|
---
|
|
|
|
|
|
|
|
Total
|
|
---
|
|
---
|
|
61,054
|
|
(b)
|
Not
Applicable
|
(c)
|
Purchased
Equity Securities. The following table summarizes the Company's purchases
of its common stock during the fiscal year ended July 31,
2007.
|
Period
|
|
Total
Number of
Shares
Purchased
|
|
Average
Price
Paid
Per
Share
|
|
Total
Number of
Shares
Purchased
as
Part of Publicly
Announced
Plans
or
Programs (1)
|
|
Maximum
Number
of
Shares that May
Yet
Be Purchased
Under
the
Plans
or Programs
|
|
|
|
|
|
|
|
|
|
|
|
August
1, 2006 - July 31, 2007
|
|
5,799
|
|
$10.06
|
|
5,799
|
|
215,962
|
(1)
|
The
Company purchased 5,799 shares of its Class A common stock during
the
fiscal year ended July 31, 2007 pursuant to a 200,000 share repurchase
program approved at the Board of Directors meeting held in January
2004.
The purchases were made in open-market transactions. In February
2006, the
Board of Directors authorized the repurchase of an additional 200,000
shares.
|
Item
6.
|
Selected
Consolidated Financial
Data
|
|
Year
ended July 31,
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
|
(In
thousands, except share and per share amounts)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Operating
data:
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Revenues
|
$ |
103,490
|
$ |
98,055
|
$ |
91,351
|
$ |
110,623
|
$ |
116,214
|
||||||||||
Income
(loss) from operations
|
4,130
|
5,559
|
(1,970 | ) |
6,248
|
7,679
|
||||||||||||||
Income
(loss) from continuing operations before income taxes and minority
interest
|
4,578
|
5,709
|
(2,118 | ) |
6,252
|
7,531
|
||||||||||||||
|
||||||||||||||||||||
Net
income (loss) from continuing operations
|
$ |
2,506
|
$ |
2,723
|
$ | (1,424 | ) | $ |
2,632
|
$ |
3,790
|
|||||||||
Net
income (loss) from discontinued operations
|
568
|
(140 | ) | (163 | ) | (231 | ) | (4,992 | ) | |||||||||||
Net
income (loss)
|
$ |
3,074
|
$ |
2,583
|
$ | (1,587 | ) | $ |
2,401
|
$ | (1,202 | ) | ||||||||
|
||||||||||||||||||||
Net
income (loss) per common share: basic
|
||||||||||||||||||||
Continuing
operations
|
$ |
0.60
|
$ |
0.65
|
$ | (0.34 | ) | $ |
0.63
|
$ |
0.90
|
|||||||||
Discontinued
operations
|
0.13
|
(0.03 | ) | (0.04 | ) | (0.06 | ) | (1.19 | ) | |||||||||||
Net
income (loss) per common share: basic
|
$ |
0.73
|
$ |
0.62
|
$ | (0.38 | ) | $ |
0.57
|
$ | (0.29 | ) |
Net
income (loss) per common share: diluted
|
|
|
|
|
|
|||||||||||||||
Continuing
operations
|
$ |
0.59
|
$ |
0.65
|
$ | (0.34 | ) | $ |
0.62
|
$ |
0.90
|
|||||||||
Discontinued
operations
|
0.13
|
(0.03 | ) | (0.04 | ) | (0.05 | ) | (1.19 | ) | |||||||||||
Net
income (loss) per common share: diluted
|
$ |
0.72
|
$ |
0.62
|
$ | (0.38 | ) | $ |
0.57
|
$ | (0.29 | ) | ||||||||
|
||||||||||||||||||||
Cash
dividends declared per common share:
|
||||||||||||||||||||
Basic
and Diluted
|
$ |
0.34
|
$ |
0.33
|
$ |
0.32
|
$ |
0.32
|
$ |
0.31
|
||||||||||
|
||||||||||||||||||||
Weighted
average common shares outstanding:
|
||||||||||||||||||||
Basic
|
4,194,673
|
4,180,287
|
4,160,834
|
4,185,002
|
4,196,636
|
|||||||||||||||
Diluted
|
4,261,623
|
4,188,278
|
4,160,834
|
4,243,304
|
4,196,636
|
|
Year
Ended July 31,
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
|
(In
thousands, except per share amounts)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Balance
sheet data:
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Working
capital
|
$ |
34,313
|
$ |
28,306
|
$ |
28,373
|
$ |
27,993
|
$ |
27,702
|
||||||||||
|
||||||||||||||||||||
Total
assets
|
71,206
|
69,152
|
57,305
|
62,504
|
76,382
|
|||||||||||||||
|
||||||||||||||||||||
Long-term
debt
|
385
|
342
|
328
|
336
|
137
|
|||||||||||||||
|
||||||||||||||||||||
Shareholders'
equity
|
40,913
|
37,627
|
36,284
|
39,383
|
38,378
|
|||||||||||||||
|
||||||||||||||||||||
Book
value per share:
|
||||||||||||||||||||
Basic
|
$ |
9.75
|
$ |
9.00
|
$ |
8.72
|
$ |
9.41
|
$ |
9.14
|
||||||||||
Diluted
|
$ |
9.60
|
$ |
8.98
|
$ |
8.72
|
$ |
9.28
|
$ |
9.14
|
Item
7.
|
Management's
Discussion and Analysis of
Financial Condition and Results of
Operations
|
Payments
due by period
|
||||||||||||||||||||
Contractual
Obligations
|
Total
|
Less
than
1
year
|
1-3
years
|
3-5
years
|
More
than
5
years
|
|||||||||||||||
Long-Term
Debt Obligations
|
$ |
477,466
|
$ |
211,660
|
$ |
144,629
|
$ |
59,752
|
$ |
61,425
|
||||||||||
Capital
Lease Obligations
|
241,033
|
121,569
|
102,981
|
16,483
|
---
|
|||||||||||||||
Operating
Lease Obligations (1)
|
6,828,406
|
2,324,755
|
2,614,935
|
1,360,791
|
527,925
|
|||||||||||||||
Total
|
$ |
7,546,905
|
$ |
2,657,984
|
$ |
2,862,545
|
$ |
1,437,026
|
$ |
589,350
|
|
|
Item
7A.
|
Quantitative
and Qualitative
Disclosures About Market
Risk
|
Item
8.
|
Financial
Statements and Supplementary
Data
|
Ecology
and Environment, Inc
|
||||||||
Consolidated
Balance Sheet
|
||||||||
July
31,
|
July
31,
|
|||||||
Assets
|
2007
|
2006
|
||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ |
15,724,139
|
$ |
13,094,499
|
||||
Investment
securities available for sale
|
101,009
|
97,560
|
||||||
Contract
receivables, net
|
36,742,288
|
37,011,377
|
||||||
Deferred
income taxes
|
5,196,728
|
5,630,832
|
||||||
Income
tax receivable
|
1,357,213
|
-
|
||||||
Other
current assets
|
1,516,972
|
1,041,751
|
||||||
Total
current assets
|
60,638,349
|
56,876,019
|
||||||
Property,
building and equipment, net
|
7,725,535
|
7,776,232
|
||||||
Deferred
income taxes
|
1,404,232
|
1,316,040
|
||||||
Other
assets
|
1,438,329
|
3,184,093
|
||||||
Total
assets
|
$ |
71,206,445
|
$ |
69,152,384
|
||||
Liabilities
and Shareholders' Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ |
10,178,873
|
$ |
9,306,633
|
||||
Accrued
payroll costs
|
6,191,434
|
6,379,724
|
||||||
Income
taxes payable
|
664,085
|
1,499,292
|
||||||
Deferred
revenue
|
90,791
|
161,225
|
||||||
Current
portion of long-term debt and capital lease obligations
|
333,229
|
403,182
|
||||||
Other
accrued liabilities
|
8,866,707
|
10,820,369
|
||||||
Total
current liabilities
|
26,325,119
|
28,570,425
|
||||||
Long-term
debt and capital lease obligations
|
385,270
|
341,664
|
||||||
Minority
interest
|
3,582,968
|
2,612,836
|
||||||
Commitments
and contingencies (see note #14)
|
-
|
-
|
||||||
Shareholders'
equity:
|
||||||||
Preferred
stock, par value $.01 per share;
|
||||||||
authorized
- 2,000,000 shares; no shares
|
||||||||
issued
|
-
|
-
|
||||||
Class
A common stock, par value $.01 per
|
||||||||
share;
authorized - 6,000,000 shares;
|
||||||||
issued
- 2,661,498 and 2,534,566 shares
|
26,615
|
25,346
|
||||||
Class
B common stock, par value $.01 per
|
||||||||
share;
authorized - 10,000,000 shares;
|
||||||||
issued
- 1,732,227 and 1,650,173 shares
|
17,323
|
16,502
|
||||||
Capital
in excess of par value
|
20,051,446
|
17,684,373
|
||||||
Retained
earnings
|
22,211,098
|
23,163,716
|
||||||
Accumulated
other comprehensive income (loss)
|
299,102
|
(2,208,830 | ) | |||||
Treasury
stock - Class A common, 104,020 and 102,204
|
||||||||
shares;
Class B common, 64,801 and 26,259 shares, at cost
|
(1,692,496 | ) | (1,053,648 | ) | ||||
Total
shareholders' equity
|
40,913,088
|
37,627,459
|
||||||
Total
liabilities and shareholders' equity
|
$ |
71,206,445
|
$ |
69,152,384
|
||||
The
accompanying notes are an integral part of these financial
statements.
|
Ecology
and Environment, Inc.
|
||||||||||||
Consolidated
Statement of Income
|
||||||||||||
Year
ended July 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Revenue
|
$ |
103,489,670
|
$ |
98,054,528
|
$ |
91,350,613
|
||||||
Cost
of professional services and
|
||||||||||||
other
direct operating expenses
|
40,240,295
|
40,878,554
|
38,015,428
|
|||||||||
Subcontract
costs
|
17,215,450
|
16,219,008
|
16,890,103
|
|||||||||
Gross
Profit
|
46,033,925
|
40,956,966
|
36,445,082
|
|||||||||
Administrative
and indirect operating
|
||||||||||||
expenses
|
28,754,534
|
24,899,008
|
23,821,948
|
|||||||||
Marketing
and related costs
|
10,689,698
|
9,335,050
|
10,341,414
|
|||||||||
Depreciation
|
1,380,223
|
1,164,095
|
1,501,035
|
|||||||||
Write-off
of investment in Venezuela
|
1,079,155
|
-
|
-
|
|||||||||
Long-lived
asset impairment loss
|
-
|
-
|
2,750,972
|
|||||||||
Income
(loss) from operations
|
4,130,315
|
5,558,813
|
(1,970,287 | ) | ||||||||
Interest
expense
|
(162,442 | ) | (95,907 | ) | (122,342 | ) | ||||||
Interest
income
|
542,700
|
216,213
|
42,267
|
|||||||||
Other
income (expense)
|
1,281
|
(11,280 | ) | (122,287 | ) | |||||||
Net
foreign currency exchange gain
|
65,964
|
41,452
|
54,868
|
|||||||||
Income
(loss) from continuing operations before income
|
||||||||||||
taxes
and minority interest
|
4,577,818
|
5,709,291
|
(2,117,781 | ) | ||||||||
Income
tax provision (benefit)
|
106,700
|
2,147,443
|
(1,713,596 | ) | ||||||||
Net
income (loss) from continuing operations
|
||||||||||||
before
minority interest
|
4,471,118
|
3,561,848
|
(404,185 | ) | ||||||||
Minority
interest
|
(1,965,099 | ) | (838,995 | ) | (1,019,864 | ) | ||||||
Net
income (loss) from continuing operations
|
2,506,019
|
2,722,853
|
(1,424,049 | ) | ||||||||
Income
(loss) from discontinued operations
|
985,797
|
(226,089 | ) | (236,635 | ) | |||||||
Income
tax benefit (provision) on income (loss) from discontinued
operations
|
(417,345 | ) |
85,823
|
74,144
|
||||||||
Net
income (loss)
|
$ |
3,074,471
|
$ |
2,582,587
|
$ | (1,586,540 | ) | |||||
Net
income (loss) per common share: basic
|
||||||||||||
Continuing
operations
|
$ |
0.60
|
$ |
0.65
|
$ | (0.34 | ) | |||||
Discontinued
operations
|
0.13
|
(0.03 | ) | (0.04 | ) | |||||||
Net
income (loss) per common share: basic
|
$ |
0.73
|
$ |
0.62
|
$ | (0.38 | ) | |||||
Net
income (loss) per common share: diluted
|
||||||||||||
Continuing
operations
|
$ |
0.59
|
$ |
0.65
|
$ | (0.34 | ) | |||||
Discontinued
operations
|
0.13
|
(0.03 | ) | (0.04 | ) | |||||||
Net
income (loss) per common share: diluted
|
$ |
0.72
|
$ |
0.62
|
$ | (0.38 | ) | |||||
Weighted
average common shares outstanding: basic
|
4,194,673
|
4,180,287
|
4,160,834
|
|||||||||
Weighted
average common shares outstanding: diluted
|
4,261,623
|
4,188,278
|
4,160,834
|
|||||||||
The
accompanying notes are an integral part of these financial
statements.
|
Ecology
and Environment, Inc
|
||||||||||||
Consolidated
Statement of Cash Flows
|
||||||||||||
Year
ended July 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
|
||||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
income
|
$ |
3,074,471
|
$ |
2,582,587
|
$ | (1,586,540 | ) | |||||
Net
income (loss) from discontinued operations, net of tax
|
568,452
|
(140,266 | ) | (162,491 | ) | |||||||
Income
from continuing operations
|
2,506,019
|
2,722,853
|
(1,424,049 | ) | ||||||||
Adjustments
to reconcile net income to net cash
|
||||||||||||
provided
by (used in) operating activities:
|
||||||||||||
Write-off
of Investment in Venezuela
|
1,079,155
|
-
|
-
|
|||||||||
Impairment
of long-lived assets
|
-
|
-
|
2,750,972
|
|||||||||
Depreciation
|
1,380,223
|
1,164,095
|
1,501,035
|
|||||||||
Share-based
compensation expense
|
121,396
|
212,506
|
299,220
|
|||||||||
Gain
on disposition of property and equipment
|
(1,045 | ) | (12,879 | ) |
6,286
|
|||||||
Minority
interest
|
1,965,099
|
838,995
|
1,019,864
|
|||||||||
Provision
for contract adjustments
|
1,054,204
|
1,524,049
|
467,954
|
|||||||||
(Increase)
decrease in:
|
||||||||||||
-
contracts receivable, net
|
(785,115 | ) | (7,178,436 | ) |
4,593,343
|
|||||||
-
other current assets
|
(457,894 | ) |
994,348
|
437,474
|
||||||||
-
deferred income taxes
|
(61,568 | ) | (885,440 | ) | (1,140,159 | ) | ||||||
-
income tax receivable
|
(1,357,213 | ) |
-
|
-
|
||||||||
-
other non-current assets
|
2,049,412
|
(1,080,072 | ) |
459,065
|
||||||||
Increase
(decrease) in:
|
||||||||||||
-
accounts payable
|
872,240
|
3,284,995
|
(48,628 | ) | ||||||||
-
accrued payroll costs
|
(188,290 | ) |
2,542,289
|
(773,662 | ) | |||||||
-
income taxes payable
|
(835,207 | ) |
1,463,170
|
(326,992 | ) | |||||||
-
deferred revenue
|
(70,434 | ) | (70,386 | ) | (962,608 | ) | ||||||
-
other accrued liabilities
|
(1,669,663 | ) |
3,237,676
|
(683,903 | ) | |||||||
Net
cash provided by operating activities
|
5,601,319
|
8,757,763
|
6,175,212
|
|||||||||
Cash
flows provided by (used in) investing activities:
|
||||||||||||
Acquistion
of minority interest of subsidiary
|
(166,000 | ) |
-
|
-
|
||||||||
Purchase
of property, building and equipment
|
(1,328,481 | ) | (985,323 | ) | (246,290 | ) | ||||||
Proceeds
from maturity of investments
|
-
|
24,750
|
26,136
|
|||||||||
Payment
for the purchase of bond
|
(3,408 | ) | (3,279 | ) | (3,109 | ) | ||||||
Net
cash used in investing activities
|
(1,497,889 | ) | (963,852 | ) | (223,263 | ) | ||||||
Cash
flows provided by (used in) financing activities:
|
||||||||||||
Dividends
paid
|
(1,464,921 | ) | (1,420,930 | ) | (1,384,092 | ) | ||||||
Proceeds
from debt
|
298,519
|
549,925
|
747,863
|
|||||||||
Repayment
of debt
|
(490,866 | ) | (457,203 | ) | (698,729 | ) | ||||||
Distributions
to minority partners
|
(768,596 | ) | (1,103,996 | ) | (396,095 | ) | ||||||
Net
proceeds from the issuance of common stock
|
-
|
8,700
|
1,812
|
|||||||||
Purchase
of treasury stock
|
(1,085,901 | ) | (25,077 | ) | (530,057 | ) | ||||||
Net
cash used in financing activities
|
(3,511,765 | ) | (2,448,581 | ) | (2,259,298 | ) | ||||||
Effect
of exchange rate changes on cash and cash equivalents
|
(224,485 | ) |
28,122
|
100,725
|
||||||||
Discontinued
Operations
|
||||||||||||
Net
cash used in discontinued operating activities
|
(237,540 | ) | (151,069 | ) | (161,593 | ) | ||||||
Net
cash provided by discontinued investing activities - sale of
assets
|
2,500,000
|
-
|
-
|
|||||||||
Net
cash provided by (used in) discontinued operations
|
2,262,460
|
(151,069 | ) | (161,593 | ) | |||||||
Net
increase in cash and cash equivalents
|
2,629,640
|
5,222,383
|
3,631,783
|
|||||||||
Cash
and cash equivalents at beginning of period
|
13,094,499
|
7,872,116
|
4,240,333
|
|||||||||
Cash
and cash equivalents at end of period
|
$ |
15,724,139
|
$ |
13,094,499
|
$ |
7,872,116
|
||||||
The
accompanying notes are an integral part of these financial
statements.
|
Ecology
and Environment, Inc
|
||||||||||||||||||||||||||||||||||||||||||||
Consolidated
Statement of Changes in Shareholders' Equity
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
Accumulated
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Common
Stock
|
Capital
in
|
|
Other
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Class
A
|
Class
B
|
Excess
of
|
Retained
|
Comprehensive
|
Unearned
|
Treasury
Stock
|
Comprehensive
|
|||||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Par
Value
|
earnings
|
Income
|
Compensation
|
Shares
|
Amount
|
Income
|
||||||||||||||||||||||||||||||||||
Balance
at July 31, 2004
|
2,501,985
|
$ |
25,021
|
1,681,304
|
$ |
16,813
|
$ |
17,592,444
|
$ |
24,972,691
|
$ | (2,336,723 | ) | $ | (193,282 | ) |
87,749
|
$ | (694,121 | ) | $ |
2,176,424
|
||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(1,586,540 | ) |
-
|
-
|
-
|
-
|
(1,586,540 | ) | |||||||||||||||||||||||||||||||
Foreign
currency translation reserve
|
-
|
-
|
-
|
-
|
-
|
-
|
100,725
|
-
|
-
|
-
|
100,725
|
|||||||||||||||||||||||||||||||||
Cash
dividends paid ($.32 per share)
|
-
|
-
|
-
|
-
|
-
|
(1,384,092 | ) |
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||
Unrealized
investment gain, net
|
-
|
-
|
-
|
-
|
-
|
-
|
(53 | ) |
-
|
-
|
-
|
(53 | ) | |||||||||||||||||||||||||||||||
Conversion
of common stock - B to A
|
12,000
|
120
|
(12,000 | ) | (120 | ) |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||
Repurchase
of Class A common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
62,500
|
(530,057 | ) |
-
|
||||||||||||||||||||||||||||||||
Stock
options exercised
|
250
|
2
|
-
|
-
|
1,810
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||
Issuance
of stock under stock award plan, net
|
-
|
-
|
-
|
-
|
38,230
|
-
|
-
|
(134,971 | ) | (33,531 | ) |
265,230
|
-
|
|||||||||||||||||||||||||||||||
Amortization,
net of tax
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
164,717
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||
Forfeitures
|
-
|
-
|
-
|
-
|
(10,312 | ) |
-
|
-
|
4,543
|
3,776
|
(28,251 | ) |
-
|
|||||||||||||||||||||||||||||||
Balance
at July 31, 2005
|
2,514,235
|
$ |
25,143
|
1,669,304
|
$ |
16,693
|
$ |
17,622,172
|
$ |
22,002,059
|
$ | (2,236,051 | ) | $ | (158,993 | ) |
120,494
|
$ | (987,199 | ) | $ | (1,485,868 | ) | |||||||||||||||||||||
Net
income
|
-
|
$ |
-
|
-
|
$ |
-
|
$ |
-
|
$ |
2,582,587
|
$ |
-
|
$ |
-
|
-
|
$ |
-
|
2,582,587
|
||||||||||||||||||||||||||
Reclassification
due to adoption of FAS 123R
|
-
|
-
|
-
|
-
|
(158,993 | ) |
-
|
-
|
158,993
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||
Foreign
currency translation reserve
|
-
|
-
|
-
|
-
|
-
|
-
|
28,122
|
-
|
-
|
-
|
28,122
|
|||||||||||||||||||||||||||||||||
Cash
dividends paid ($.33 per share)
|
-
|
-
|
-
|
-
|
-
|
(1,420,930 | ) |
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||
Unrealized
investment gain, net
|
-
|
-
|
-
|
-
|
-
|
-
|
(901 | ) |
-
|
-
|
-
|
(901 | ) | |||||||||||||||||||||||||||||||
Conversion
of common stock - B to A
|
19,131
|
191
|
(19,131 | ) | (191 | ) |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||
Repurchase
of Class A common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,595
|
(25,077 | ) |
-
|
||||||||||||||||||||||||||||||||
Stock
options exercised
|
1,200
|
12
|
-
|
-
|
8,688
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||
Issuance
of stock under stock award plan
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||
Share-based
compensation
|
-
|
-
|
-
|
-
|
130,277
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
82,229
|
-
|
-
|
-
|
5,374
|
(41,372 | ) |
-
|
||||||||||||||||||||||||||||||||
Balance
at July 31, 2006
|
2,534,566
|
$ |
25,346
|
1,650,173
|
$ |
16,502
|
$ |
17,684,373
|
$ |
23,163,716
|
$ | (2,208,830 | ) | $ |
-
|
128,463
|
$ | (1,053,648 | ) | $ |
2,609,808
|
|||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
3,074,471
|
-
|
-
|
-
|
-
|
3,074,471
|
|||||||||||||||||||||||||||||||||
Reclassification
adjustment for realized foreign currency translation loss in net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
2,110,431
|
-
|
-
|
-
|
2,110,431
|
|||||||||||||||||||||||||||||||||
Foreign
currency translation reserve
|
-
|
-
|
-
|
-
|
-
|
-
|
397,476
|
-
|
-
|
-
|
397,476
|
|||||||||||||||||||||||||||||||||
Cash
dividends paid ($.34 per share)
|
-
|
-
|
-
|
-
|
-
|
(1,464,921 | ) |
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||
5%
Stock Dividend
|
126,522
|
1,265
|
82,464
|
825
|
2,560,078
|
(2,562,168 | ) |
-
|
-
|
8,040
|
-
|
-
|
||||||||||||||||||||||||||||||||
Unrealized
investment gain, net
|
-
|
-
|
-
|
-
|
-
|
-
|
25
|
-
|
-
|
-
|
25
|
|||||||||||||||||||||||||||||||||
Conversion
of common stock - B to A
|
410
|
4
|
(410 | ) | (4 | ) |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||
Repurchase
of Class A common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
86,806
|
(1,085,901 | ) |
-
|
||||||||||||||||||||||||||||||||
Issuance
of stock under stock award plan
|
-
|
-
|
-
|
-
|
(325,985 | ) |
-
|
-
|
-
|
(57,620 | ) |
472,484
|
-
|
|||||||||||||||||||||||||||||||
Share-based
compensation
|
-
|
-
|
-
|
-
|
121,396
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||
Tax
impact of share based compensation
|
-
|
-
|
-
|
-
|
5,860
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
5,724
|
-
|
-
|
-
|
3,135
|
(25,431 | ) |
-
|
||||||||||||||||||||||||||||||||
Balance
at July 31, 2007
|
2,661,498
|
26,615
|
1,732,227
|
17,323
|
20,051,446
|
22,211,098
|
299,102
|
-
|
168,824
|
(1,692,496 | ) | $ |
5,582,403
|
|
|
1.
|
Summary
of Operations and Basis of
Presentation
|
2.
|
Summary
of Significant Accounting
Policies
|
|
a.
|
Consolidation
|
b.
|
Use
of estimates
|
|
c.
|
Reclassifications
|
Contract
Type
|
|
Work
Type
|
|
Revenue
Recognition Policy
|
|
|
|
|
|
Fixed
Price
|
|
Consulting
|
|
Percentage
of completion, approximating the ratio of total
Costs
incurred to date to total estimated costs.
|
|
|
|
|
|
Cost-Type
|
|
Consulting
|
|
Costs
as incurred. Fixed fee portion is recognized using percentage
of completion determined by the percentage of level of effort (LOE)
hours
incurred to total LOE hours in the respective
contracts.
|
|
|
|
|
|
Time
and Materials
|
|
Consulting
|
|
As
incurred at contract rates.
|
|
|
|
|
|
Unit
Price
|
|
Laboratory/Aquaculture
|
|
Upon
completion of reports (laboratory) and upon delivery
and
payment from customers
(aquaculture).
|
|
e.
|
Investment
securities
|
|
f.
|
Property,
building and equipment, depreciation and
amortization
|
|
|
h.
|
Translation
of foreign currencies
|
|
|
|
i.
|
Income
taxes
|
|
j.
|
Pension
costs
|
k.
|
Stock
based compensation
|
|
l.
|
Earnings
per share
|
|
|
n.
|
Segment
reporting
|
o.
|
Impairment
of Long-Lived Assets
|
p.
|
American
Jobs Creation Act of 2004
|
|
In
October 2004, Congress passed, and the President signed into law,
the
American Jobs Creation Act of 2004 (the “Act”). Some key provisions of the
act affecting the Company were the repeal of the United States export
tax
incentive known as the extraterritorial income exclusion (EIE) and
the
implementation of a domestic manufacturing deduction. The EIE is
phased
out over the calendar years 2005 and 2006 with an exemption for binding
contracts with unrelated persons entered into before September 18,
2003.
These phase-out provisions will allow the Company to maintain an
EIE
deduction at a reduced amount through fiscal year 2007. The Company
will
accrue some benefits from the domestic manufacturing deduction, although
such benefits are not material. Under the Act’s repatriation provisions,
the Company repatriated approximately $62,000 and $77,000 during
fiscal
years 2007 and 2006,
respectively.
|
3.
|
Cash
and Cash Equivalents
|
4.
|
Contract
Receivables, net
|
|
July
31,
|
|||||||
|
|
|
||||||
|
2007
|
2006
|
||||||
|
|
|
||||||
United
States government -
|
|
|
||||||
Billed
|
$ |
2,905,030
|
$ |
3,040,081
|
||||
Unbilled
|
4,195,989
|
4,267,073
|
||||||
|
7,101,019
|
7,307,154
|
||||||
|
||||||||
Industrial
customers and state and municipal governments -
|
||||||||
Billed
|
24,496,429
|
29,643,426
|
||||||
Unbilled
|
6,885,363
|
3,360,808
|
||||||
|
31,381,792
|
33,004,234
|
||||||
|
||||||||
Less
allowance for doubtful accounts and contract adjustments -
|
(1,740,523 | ) | (3,300,011 | ) | ||||
|
||||||||
|
$ |
36,742,288
|
$ |
37,011,377
|
5.
|
Property,
Building and Equipment,
net
|
|
July
31,
|
|||||||
|
2007
|
2006
|
||||||
|
|
|
||||||
Land
|
$ |
543,051
|
$ |
543,051
|
||||
Buildings
|
11,154,672
|
11,112,042
|
||||||
Laboratory
and other equipment
|
3,072,609
|
2,917,387
|
||||||
Information
technology equipment
|
6,369,348
|
5,815,183
|
||||||
Office
furniture and equipment
|
2,417,764
|
2,211,654
|
||||||
Leasehold
improvements and other
|
1,590,222
|
1,431,521
|
||||||
|
||||||||
|
$ |
25,147,666
|
$ |
24,030,838
|
||||
|
||||||||
Less
accumulated depreciation and amortization
|
(17,422,131 | ) | (16,254,606 | ) | ||||
|
||||||||
|
$ |
7,725,535
|
$ |
7,776,232
|
6.
|
Line
of Credit
|
7.
|
Debt
and Capital Lease
Obligations
|
|
July
31, 2007
|
July
31, 2006
|
||||||
|
|
|
||||||
Various
bank loans and advances at subsidiaries with interest rates ranging
from
5% to 14%
|
$ |
477,466
|
$ |
531,070
|
||||
Capital
lease obligations at subsidiaries with varying interest rates averaging
11%
|
241,033
|
213,776
|
||||||
|
718,499
|
744,846
|
||||||
|
||||||||
Less:
current portion of debt and capital lease obligations
|
(333,229 | ) | (403,182 | ) | ||||
|
||||||||
Long-term
debt and capital lease obligations
|
$ |
385,270
|
$ |
341,664
|
|
|
Amount
|
|
|
|
|
|
|
|
Fiscal
Year 2008
|
|
$
|
333,229
|
|
Fiscal
Year 2009
|
|
|
165,318
|
|
Fiscal
Year 2010
|
|
|
82,292
|
|
Fiscal
Year 2011
|
|
|
45,465
|
|
Fiscal
Year 2012
|
|
|
30,770
|
|
Thereafter
|
|
|
61,425
|
|
|
|
|
|
|
|
|
$
|
718,499
|
|
8.
|
Income
Taxes
|
|
Fiscal
Year
|
|||||||||||
|
2007
|
2006
|
2005
|
|||||||||
|
|
|
|
|||||||||
Current:
|
|
|
|
|||||||||
Federal
|
$ |
596,564
|
$ |
2,340,755
|
$ | (828,582 | ) | |||||
State
|
224,987
|
369,118
|
103,991
|
|||||||||
Foreign
|
516,711
|
448,126
|
280,494
|
|||||||||
|
||||||||||||
|
$ |
1,338,262
|
$ |
3,157,999
|
$ | (444,097 | ) | |||||
|
||||||||||||
Deferred:
|
||||||||||||
Federal
|
$ | (1,042,458 | ) | $ | (926,101 | ) | $ | (1,074,049 | ) | |||
State
and foreign
|
(189,104 | ) | (84,455 | ) | (195,450 | ) | ||||||
|
$ | (1,231,562 | ) | $ | (1,010,556 | ) | $ | (1,269,499 | ) | |||
|
||||||||||||
|
$ |
106,700
|
$ |
2,147,443
|
$ | (1,713,596 | ) |
|
2007
|
|
2006
|
|
2005
|
|
|
|
|
|
|
U.S.
federal statutory income tax rate
|
34.0%
|
|
34.0%
|
|
(34.0%)
|
Re-evaluation
of tax contingencies
|
(11.1%)
|
|
---
|
|
(31.2%)
|
Additional
tax basis in Venezuelan subsidiary
|
(10.1%)
|
---
|
---
|
||
Income
from "pass-through" entities taxable to minority partners
|
(9.9%)
|
(4.7%)
|
(10.5%)
|
||
International
rate differential
|
(2.7%)
|
6.0%
|
2.7%
|
||
Extraterritorial
income tax exclusion
|
(1.2%)
|
(1.5%)
|
(5.2%)
|
||
State
taxes, net of federal benefit
|
0.4%
|
3.6%
|
1.8%
|
||
Other
|
2.9%
|
|
0.2%
|
|
(4.5%)
|
|
|
|
|
||
Total
|
2.3%
|
|
37.6%
|
|
(80.9%)
|
|
Fiscal
Year
|
|||||||
|
2007
|
2006
|
||||||
|
|
|
||||||
Contract
and other reserves
|
$ |
3,252,519
|
$ |
3,664,043
|
||||
Discontinued
operations
|
---
|
1,662,279
|
||||||
Fixed
assets and intangibles
|
1,148,248
|
1,080,122
|
||||||
Accrued
compensation
|
625,289
|
737,398
|
||||||
Net
operating loss carryforwards
|
1,708,130
|
---
|
||||||
Other
|
178,918
|
135,647
|
||||||
Deferred
tax assets
|
$ |
6,913,104
|
$ |
7,279,489
|
||||
|
||||||||
State
income taxes
|
(312,144 | ) | (332,617 | ) | ||||
Deferred
tax liabilities
|
(312,144 | ) | (332,617 | ) | ||||
Net
deferred tax asset
|
$ |
6,600,960
|
$ |
6,946,872
|
9.
|
Shareholders'
Equity
|
|
a.
|
Class
A and Class B common stock
|
b.
|
Incentive
stock compensation
|
Options
outstanding at July 31, 2004 at a weighted average price of $7.96
per
share
|
20,450
|
|
|
Exercised
shares at $7.25 per share
|
250
|
Cancelled
shares
|
1,700
|
Expired
shares at $9.00 per share
|
8,100
|
Options
outstanding at July 31, 2005 at a weighted average price of $7.25
per
share
|
10,400
|
|
|
Exercised
shares at $7.25 per share
|
1,200
|
Expired
shares at $7.25 per share
|
9,200
|
Options
outstanding at July 31, 2006
|
---
|
|
c.
|
Stock
Award Plan
|
d.
|
Stock
Dividend
|
10.
|
Shareholders'
Equity - Restrictive
Agreement
|
11.
|
Lease
Commitments
|
Fiscal
Year
|
Amount
|
|||
|
|
|||
2008
|
$ |
2,324,755
|
||
2009
|
1,494,467
|
|||
2010
|
1,120,468
|
|||
2011
|
808,213
|
|||
2012
|
552,578
|
|||
Thereafter
|
527,926
|
12.
|
Defined
Contribution Plans
|
13.
|
Earnings
Per Share
|
|
Fiscal
Year
|
|||||||||||
|
2007
|
2006
|
2005
|
|||||||||
|
|
|
|
|||||||||
Net
income (loss) from continuing operations available to common
stockholders
|
$ |
2,506,019
|
$ |
2,722,853
|
$ | (1,424,049 | ) | |||||
Net
income (loss) from discontinued operations available to common
stockholders
|
568,452
|
(140,266 | ) | (162,491 | ) | |||||||
|
||||||||||||
Net
income (loss) available to common stockholders
|
$ |
3,074,471
|
$ |
2,582,587
|
$ | (1,586,540 | ) | |||||
|
||||||||||||
Weighted-average
common shares outstanding (basic)
|
4,194,673
|
4,180,287
|
4,160,834
|
|||||||||
|
||||||||||||
Basic
earnings (loss) per share:
|
||||||||||||
Continued
operations
|
$ |
0.60
|
$ |
0.65
|
$ | (0.34 | ) | |||||
Discontinued
operations
|
0.14
|
(0.03 | ) | (0.04 | ) | |||||||
|
Basic
earnings (loss) per share
|
$ |
0.74
|
$ |
0.62
|
$ | (0.38 | ) | |||||
|
||||||||||||
Incremental
shares from assumed conversions of stock options and restricted stock
awards
|
66,950
|
7,991
|
---
|
|||||||||
|
Adjusted
weighted-average common shares outstanding
|
4,261,623
|
4,188,278
|
4,160,834
|
|||||||||
Diluted
earnings (loss) per share:
|
||||||||||||
Continued
operations
|
$ |
0.59
|
$ |
0.65
|
$ | (0.34 | ) | |||||
Discontinued
operations
|
0.13
|
(0.03 | ) | (0.04 | ) | |||||||
|
||||||||||||
Diluted
earnings (loss) per share
|
$ |
0.72
|
$ |
0.62
|
$ | (0.38 | ) |
14.
|
Commitments
and Contingencies
|
15.
|
Recent
Accounting
Pronouncements
|
|
|
As
Reported @
10/28/2006
|
Reversal
of
SAB
108 Entry
|
Correction
of
SAB
108 Entry
|
Restated
@
10/28/2006
|
Reclassifications
|
As
Reclassified
@
10/28/2006
|
|||||||||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||||||||||||||
Consolidated
Balance Sheet
|
||||||||||||||||||||||||
Contract
Receivables
|
$
|
38,025,675
|
$
|
(55,000
|
)
|
$
|
55,000
|
$
|
38,025,675
|
$
|
-
|
$
|
38,025,675
|
|||||||||||
Deferred
Income Taxes
|
5,503,033
|
128,400
|
(135,400
|
)
|
5,496,033
|
-
|
5,496,033
|
|||||||||||||||||
Other
Assets
|
897,466
|
159,000
|
50,357
|
1,106,823
|
-
|
1,106,823
|
||||||||||||||||||
Income
Taxes Payable
|
(970,365
|
)
|
3,600
|
113,400
|
(853,365
|
)
|
-
|
(853,365
|
)
|
|||||||||||||||
Minority
Interest
|
(1,786,826
|
)
|
59,000
|
(59,000
|
)
|
(1,786,826
|
)
|
-
|
(1,786,826
|
)
|
||||||||||||||
Capital
in excess of par value
|
(17,399,717
|
)
|
7,000
|
-
|
(17,392,717
|
)
|
-
|
(17,392,717
|
)
|
|||||||||||||||
Retained
Earnings
|
(23,559,486
|
)
|
(302,000
|
)
|
(24,357
|
)
|
(23,885,843
|
)
|
-
|
(23,885,843
|
)
|
|||||||||||||
Consolidated
Statement of Income (1)
|
||||||||||||||||||||||||
Cost
of Professional Services
|
9,660,815
|
-
|
-
|
9,660,815
|
(27,600
|
)
|
9,633,215
|
|||||||||||||||||
Subcontract
Costs
|
3,289,982
|
-
|
-
|
3,289,982
|
(5,400
|
)
|
3,284,582
|
|||||||||||||||||
Administrative
and Indirect operating costs
|
6,781,747
|
-
|
-
|
6,781,747
|
(50,357
|
)
|
6,731,390
|
|||||||||||||||||
Other
Expense
|
316,111
|
-
|
(24,357
|
)
|
291,754
|
24,357
|
316,111
|
|||||||||||||||||
Minority
Interest
|
271,063
|
-
|
-
|
271,063
|
59,000
|
330,063
|
16.
|
Other
Accrued Liabilities
|
|
July
31,
|
|||||||
|
2007
|
2006
|
||||||
|
|
|
||||||
Allowance
for contract adjustments
|
$ |
3,925,525
|
$ |
3,396,261
|
||||
Billings
in excess of revenue
|
3,995,645
|
5,978,603
|
||||||
Liabilities
of operations held for sale
|
---
|
283,999
|
||||||
Other
|
945,537
|
1,161,506
|
||||||
|
||||||||
|
$ |
8,866,707
|
$ |
10,820,369
|
17.
|
Transfer
of
Ownership/Dispositions
|
19.
|
Segment
Reporting
|
|
|
|
Aquaculture
|
|
|
|||||||||||||||||||
|
Consulting
|
Analytical
|
Continued
|
Discontinued
|
Elimination
|
Total
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Total
consolidated revenue
|
$ |
103,332,502
|
$ |
---
|
$ |
157,168
|
$ |
---
|
$ |
---
|
$ |
103,489,670
|
||||||||||||
|
||||||||||||||||||||||||
Depreciation
expense
|
$ |
1,380,223
|
$ |
---
|
$ |
---
|
$ |
---
|
$ |
1,380,223
|
||||||||||||||
Segment
profit (loss) before income taxes and minority interest
|
$ |
4,626,039
|
$ |
---
|
$ | (48,221 | ) | $ |
985,797
|
$ |
5,563,615
|
|||||||||||||
Segment
assets
|
$ |
68,956,445
|
$ |
2,100,000
|
$ |
150,000
|
$ |
---
|
$ |
71,206,445
|
||||||||||||||
Expenditures
for long-lived assets
|
$ |
1,328,481
|
$ |
---
|
$ |
---
|
$ |
---
|
$ |
1,328,481
|
Geographic
Information:
|
|
|
|||||||
|
Revenue
(1)
|
Long-Lived
Assets
|
|||||||
|
|
|
|||||||
United
States
|
$ |
83,717,670
|
$ |
22,912,666
|
|||||
Foreign
Countries
|
19,772,000
|
|
2,235,000
|
|
(1)
|
Revenue
is attributed to countries based on the location of the
customers.
|
Aquaculture
|
||||||||||||||||||||||||
Consulting
|
Analytical
|
Continued
|
Discontinued
|
Elimination
|
Total
|
|||||||||||||||||||
Total
consolidated revenue
|
$ |
98,003,263
|
$ |
---
|
$ |
51,265
|
$ |
---
|
$ |
---
|
$ |
98,054,528
|
||||||||||||
Depreciation
expense
|
$ |
1,151,439
|
$ |
---
|
$ |
12,656
|
$ |
---
|
---
|
$ |
1,164,095
|
|||||||||||||
Segment
profit (loss) before income taxes and minority interest
|
$ |
5,291,878
|
$ |
---
|
$ | (115,863 | ) | $ | (226,089 | ) |
---
|
$ |
4,949,926
|
|||||||||||
Segment
assets
|
$ |
66,823,384
|
$ |
2,100,000
|
$ |
198,000
|
$ |
31,000
|
---
|
$ |
69,152,384
|
|||||||||||||
Expenditures
for long-lived assets
|
$ |
985,323
|
$ |
---
|
$ |
---
|
$ |
---
|
---
|
$ |
985,323
|
Geographic
Information:
|
|||||||||
Revenue
(1)
|
Long-Lived
Assets
|
||||||||
United
States
|
$ |
82,356,528
|
$ |
22,258,838
|
|||||
Foreign
Countries
|
15,698,000
|
1,772,000
|
|
(1)
|
Revenue
is attributed to countries based on the location of the
customers
|
|
|
|
Aquaculture
|
|
|
|||||||||||||||||||
|
Consulting
|
Analytical
|
Continued
|
Discontinued
|
Elimination
|
Total
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Total
consolidated revenue
|
$ |
89,806,430
|
$ |
2,085,677
|
$ |
127,169
|
$ |
---
|
$ | (668,663 | ) | $ |
91,350,613
|
|||||||||||
|
||||||||||||||||||||||||
Depreciation
expense
|
$ |
1,169,572
|
$ |
318,806
|
$ |
12,657
|
$ |
---
|
$ |
1,501,035
|
||||||||||||||
Segment
profit (loss) before income taxes and minority interest
|
$ |
1,279,209
|
$ | (3,888,153 | ) | $ | (8,789 | ) | $ | (236,635 | ) | $ | (2,854,368 | ) | ||||||||||
Segment
assets
|
$ |
53,536,535
|
$ |
2,100,000
|
$ |
314,000
|
$ |
27,000
|
$ |
55,977,535
|
||||||||||||||
Expenditures
for long-lived assets
|
$ |
246,290
|
$ |
---
|
$ |
---
|
$ |
---
|
$ |
246,290
|
Geographic
Information:
|
|
|
|||||||
|
Revenue
(1)
|
Long-Lived
Assets
|
|||||||
|
|
|
|||||||
United
States
|
$ |
67,937,613
|
$ |
21,592,414
|
|||||
Foreign
Countries
|
23,413,000
|
|
1,578,000
|
|
(1)
|
Revenue
is attributed to countries based on the location of the
customers.
|
2007
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Revenues
|
$ |
24,194
|
$ |
24,131
|
$ |
26,544
|
$ |
28,621
|
||||||||
Gross
profit
|
11,243
|
10,706
|
12,100
|
11,985
|
||||||||||||
Income
(loss) from operations
|
1,669
|
1,465
|
1,335
|
(338 | ) | |||||||||||
Income
(loss) from continuing operations before income taxes and minority
interest
|
1,747
|
1,545
|
1,461
|
(175 | ) | |||||||||||
|
||||||||||||||||
Net
income from continuing operations
|
755
|
619
|
480
|
652
|
||||||||||||
Net
income (loss) from discontinued operations
|
(35 | ) |
603
|
---
|
---
|
|||||||||||
Net
income
|
$ |
720
|
$ |
1,222
|
$ |
480
|
$ |
652
|
||||||||
|
||||||||||||||||
Net
income (loss) per common share: basic
|
||||||||||||||||
Continuing
operations
|
$ |
.18
|
$ |
.15
|
$ |
.11
|
$ |
.16
|
||||||||
Discontinued
operations
|
(.01 | ) |
.14
|
---
|
--- | |||||||||||
Net
income per common share:
basic
|
$ |
.17
|
$ |
.29
|
$ |
.11
|
$ |
.16
|
||||||||
|
||||||||||||||||
Net
income (loss) per common share: diluted
|
||||||||||||||||
Continuing
operations
|
$ |
.18
|
$ |
.14
|
$ |
.11
|
$ |
.16
|
||||||||
Discontinued
operations
|
(.01 | ) |
.14
|
---
|
---
|
|||||||||||
Net
income per common share:
diluted
|
$ |
.17
|
$ |
.28
|
$ |
.11
|
$ |
.16
|
2006
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Revenues
|
$ |
23,525
|
$ |
24,029
|
$ |
27,154
|
$ |
23,347
|
||||||||
Gross
profit
|
10,009
|
9,739
|
10,671
|
10,538
|
||||||||||||
Income
from operations
|
1,563
|
1,275
|
1,353
|
1,368
|
||||||||||||
Income
from continuing operations before income taxes and minority
interest
|
1,579
|
1,281
|
1,363
|
1,486
|
||||||||||||
|
||||||||||||||||
Net
income from continuing operations
|
783
|
656
|
648
|
636
|
||||||||||||
Net
loss from discontinued operations
|
(37 | ) | (28 | ) | (28 | ) | (47 | ) | ||||||||
Net
income
|
$ |
746
|
$ |
628
|
$ |
620
|
$ |
589
|
||||||||
|
||||||||||||||||
Net
income (loss) per common share: basic
|
||||||||||||||||
Continuing
operations
|
$ |
.19
|
$ |
.16
|
$ |
.15
|
$ |
.15
|
||||||||
Discontinued
operations
|
(.01 | ) | (.01 | ) |
---
|
(.01 | ) | |||||||||
Net
income per common share:
basic
|
$ |
.18
|
$ |
.15
|
$ |
.15
|
$ |
.14
|
||||||||
|
||||||||||||||||
Net
income (loss) per common share: diluted
|
||||||||||||||||
Continuing
operations
|
$ |
.19
|
$ |
.16
|
$ |
.15
|
$ |
.15
|
||||||||
Discontinued
operations
|
(.01 | ) | (.01 | ) |
---
|
(.01 | ) | |||||||||
Net
income per common share:
diluted
|
$ |
.18
|
$ |
.15
|
$ |
.15
|
$ |
.14
|
|
Balance
at beginning of period
|
Charged
to cost and expense
|
Deduction
|
Balance
at end of year
|
||||||||||||
|
|
|
|
|
||||||||||||
July
31, 2007
|
|
|
|
|
||||||||||||
Allowance
for doubtful accounts
|
$ |
3,300,011
|
$ |
1,054,204
|
$ |
2,613,692
|
$ |
1,740,523
|
||||||||
General
cost disallowances
|
3,396,261
|
529,264
|
---
|
3,925,525
|
||||||||||||
Total
|
$ |
6,696,272
|
$ |
1,583,468
|
$ |
2,613,692
|
$ |
5,666,048
|
||||||||
July
31, 2006
|
||||||||||||||||
Allowance
for doubtful accounts
|
$ |
3,322,065
|
$ |
1,184,384
|
$ |
1,206,438
|
$ |
3,300,011
|
||||||||
General
cost disallowances
|
2,544,903
|
851,358
|
---
|
3,396,261
|
||||||||||||
Total
|
$ |
5,866,968
|
$ |
2,035,742
|
$ |
1,206,438
|
$ |
6,695,946
|
||||||||
July
31, 2005
|
||||||||||||||||
Allowance
for doubtful accounts
|
$ |
3,804,430
|
$ |
494,144
|
$ |
976,509
|
$ |
3,322,065
|
||||||||
General
cost disallowances
|
2,172,076
|
372,827
|
---
|
2,544,903
|
||||||||||||
Total
|
$ |
5,976,506
|
$ |
866,971
|
$ |
976,509
|
$ |
5,866,968
|
Item
9.
|
Changes
In and Disagreements With
Accountants on Accounting and Financial
Disclosures
|
Item
9A.
|
Item
9B.
|
Item
10.
|
Directors
and Executive Officers of the
Registrant
|
Name
|
Age
|
Position
|
|
|
|
Gerhard
J. Neumaier
|
70
|
President
and Director
|
|
|
|
Frank
B. Silvestro
|
70
|
Executive
Vice President and Director
|
|
|
|
Gerald
A. Strobel
|
67
|
Executive
Vice President of Technical Services and Director
|
|
|
|
Ronald
L. Frank
|
69
|
Executive
Vice President of Finance, Secretary, Treasurer and
Director
|
|
|
|
Gerard
A. Gallagher, Jr.
|
76
|
Director
|
|
|
|
Roger
J. Gray
|
66
|
Senior
Vice President
|
|
|
|
Laurence
M. Brickman
|
63
|
Senior
Vice President
|
|
|
|
Harvey
J. Gross
|
79
|
Director
|
|
|
|
Ross
M. Cellino
|
75
|
Director
|
|
|
|
Timothy
Butler
|
66
|
Director
|
Item
11.
|
Compensation
Discussion and
Analysis
|
|
-
|
to
remain competitive with compensation programs offered by our competitors
of similar size in the environmental industry while allowing the
Company
to maintain competitive
pricing
|
Gerhard
J. Neumaier
|
Gerard
A. Gallagher, Jr.
|
|
Frank
B. Silvestro
|
|
Harvey
J. Gross
|
Gerald
A. Strobel
|
Ross
Cellino
|
|
Ronald
L. Frank
|
Timothy
Butler
|
SUMMARY
COMPENSATON TABLE
|
|||||||||||||
|
|
|
|
Annual
Compensation
|
|
Long-Term
Compensation
|
|||||||
Name
and
Principal
Position
|
|
Fiscal
Year
|
|
Salary
|
Bonus
(1)
|
Other
|
|
Stock
Incentive Options (Shares)
|
Restricted
Stock Awards (3)
|
Long-Term
Compensation Payouts
|
All
Other (2)
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Gerhard
J. Neumaier
|
|
2007
|
|
$301,163
|
$35,000
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$11,540
|
$347,703
|
|
President
and Director
|
|
2006
|
|
$290,289
|
$45,000
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$18,164
|
$353,453
|
|
|
|
2005
|
|
$286,847
|
$-0-
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$14,962
|
$301,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Frank
B. Silvestro
|
|
2007
|
|
$277,531
|
$35,000
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$11,108
|
$323,639
|
|
Executive
Vice President
|
|
2006
|
|
$261,526
|
$45,000
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$16,712
|
$323,238
|
|
and
Director
|
|
2005
|
|
$261,436
|
$-0-
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$13,638
|
$275,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Ronald
L. Frank
|
|
2007
|
|
$220,110
|
$28,000
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$11,475
|
$259,585
|
|
Executive
Vice President
|
|
2006
|
|
$211,658
|
$45,000
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$14,218
|
$270,876
|
|
of
Finance, Secretary,
|
|
2005
|
|
$247,359
|
$-0-
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$12,934
|
$260,293
|
|
Treasurer,
and Director
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||
Gerald
A. Strobel
|
|
2007
|
|
$274,484
|
$35,000
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$11,540
|
$321,024
|
|
Executive
Vice President
|
|
2006
|
|
$264,573
|
$45,000
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$16,864
|
$326,437
|
|
of
Technical Services and
|
|
2005
|
|
$261,436
|
$-0-
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$13,638
|
$275,074
|
|
Director
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||
Laurence
M. Brickman
|
|
2007
|
|
$170,635
|
$19,200
|
-0-
|
|
-0-
|
$13,997
|
-0-
|
$9,860
|
$213,692
|
|
Senior
Vice President
|
|
2006
|
|
$164,474
|
$21,000
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$10,085
|
$195,559
|
|
|
|
2005
|
|
$162,524
|
$-0-
|
-0-
|
|
-0-
|
-0-
|
-0-
|
$8,478
|
$171,002
|
(1)
|
Amounts
earned for bonus compensation for the Senior Vice President is determined
by the senior executives, and the senior executives bonuses are determined
by the Board of Directors.
|
(2)
|
Represents
group term life insurance premiums, contributions made by the Company
to
its Defined Contribution Plan and Defined Contribution Plan SERP
(terminated in FY 2006) accruals on behalf of each of the Named
Executives.
|
(3)
|
As
of July 31, 2007, there were 1,390 shares of the Company's Class
A Common
Stock which was restricted stock issued pursuant to the Company's
Stock
Award Plan issued to Laurence Brickman having a value of
$16,750. A 5% stock dividend was issued effective on August 1,
2007 which will increase the amount of shares outstanding by
69.
|
Stock
Awards
|
||||
Name
|
Grant
Date
|
Stock
Shares Awarded
in
Fiscal Year 2007 (1)
|
Market
Value of
Shares
Awarded (2)
|
|
Laurence
M. Brickman
|
8/1/2006
|
1,390
|
$16,750
|
(1)
|
The
stock shares awarded have a three year vesting period. A 5%
stock dividend was issued effective August 1, 2007 which will increase
the
shares by 69.
|
(2)
|
Market
Value is calculated based on the fair market value of the Company’s stock
at July 31, 2007 ($12.05).
|
Stock
Awards
|
|||
Name
|
Number
of Shares that
have
not Vested (1)
|
Market
Value of Shares
that
have not Vested (2)
|
|
Laurence
M. Brickman
|
1,390
|
$16,750
|
(1)
|
The
stock shares awarded have a three year vesting period. A 5%
stock dividend was issued effective August 1, 2007 which will increase
the
shares by 69.
|
(2)
|
Market
Value is calculated based on the fair market value of the Company’s stock
at July 31, 2007 ($12.05).
|
Stock
Awards
|
|||
Name
|
Number
of Shares
Acquired
on Vesting (1)
|
Value
Realized on
Vesting
(1)
|
|
Laurence
M. Brickman
|
884
|
$10,652
|
(1)
|
Value
realized reflects the market value of the stock at July 31, 2007
($12.05).
|
·
|
Defined
Contribution Plan. The Company maintains a Defined Contribution Plan
("the DC Plan") which is qualified under the Internal Revenue Code
of
1986, as amended (the "Internal Revenue Code") pursuant to which
the
Company contributes an amount not in excess of 15% of the aggregate
compensation of all employees who participate in the DC Plan. All
employees, including the executive officers identified under "Executive
Compensation", are eligible to participate in the plan, provided
that they
have attained age 21 and completed one year of employment with at
least
1,000 hours of service. The amounts contributed to the plan by the
Company
are allocated to participants based on a ratio of each participant's
points to total points of all participants determined as follows:
one
point per $1,000 of compensation plus two points per year of service
completed prior to August 1, 1979, and one point for each year of
service
completed after August 1, 1979.
|
·
|
Stock
Award Plan.
|
Name
|
Board
Member Fees
|
Board
Meeting Fees
|
Other
(1)
|
Total
Amount Paid
|
|
Harvey
J. Gross
|
$30,190
|
$-0-
|
$-0-
|
$30,190
|
|
Gerard
A. Gallagher, Jr.
|
$30,190
|
$-0-
|
$34,852
|
$65,042
|
|
Ross
M. Cellino
|
$30,190
|
$-0-
|
$-0-
|
$30,190
|
|
Timothy
Butler
|
$30,190
|
$-0-
|
$-0-
|
$30,190
|
(1)
|
Other
is the value paid under a consulting fee
arrangement.
|
Item
12.
|
Security
Ownership of Certain
Beneficial Owners and Management and Related Stockholders
Matters
|
|
|
Class
A Common Stock
|
|
Class
B Common Stock
|
|||||
Name
and Address (1)
|
|
Nature
and Amount
of
Beneficial
Ownership
(2) (3)
|
|
Percent
of
Class
as
Adjusted
(3)
|
|
Nature
and Amount
of
Beneficial
Ownership
(2) (3)
|
|
Percent
Of
Class
|
|
|
|
|
|
|
|
|
|
|
|
Gerhard
J. Neumaier*
|
|
377,904
|
|
12.4%
|
|
|
363,188
|
|
21.0%
|
Frank
B. Silvestro*
|
|
290,783
|
|
9.8%
|
|
|
290,783
|
|
16.8%
|
Ronald
L. Frank*
|
|
207,330
|
|
7.2%
|
|
|
191,040
|
|
11.0%
|
Gerald
A. Strobel*
|
|
218,652
|
|
7.6%
|
|
|
218,652
|
|
12.6%
|
Bank
of New York, Inc.
|
|
210,854
|
|
7.3%
|
|
|
---
|
|
---
|
Wedbush,
Inc. (4)
|
|
241,900
|
|
8.3%
|
|
|
---
|
|
---
|
(1)
|
The
address for Gerhard J. Neumaier, Frank B. Silvestro, Ronald L. Frank
and
Gerald A. Strobel is c/o Ecology and Environment, Inc., 368 Pleasant
View
Drive, Lancaster, New York 14086, unless otherwise
indicated. The address for Bank of New York, Inc. is One Wall
Street, 10th
Floor, New
York, NY 10286. The address for Wedbush, Inc. is 1000 Wilshire
Blvd., Los Angeles, CA 90017-2459 and the address for Edward W.
Wedbush and Wedbush Morgan Securities is P.O. Box 30014, Los Angeles,
CA
90030-0014.
|
(2)
|
Each
named individual or corporation is deemed to be the beneficial owners
of
securities that may be acquired within 60 days through the exercise
of
exchange or conversion rights. The shares of Class A Common
Stock issuable upon conversion by any such shareholder are not included
in
calculating the number of shares or percentage of Class A Common
Stock
beneficially owned by any other
shareholder.
|
(3)
|
There
are 2,661,498 shares of Class A Common Stock issued and outstanding
and
1,732,227 shares of Class B Common Stock issued and outstanding as
of
September 28, 2007. The figures in the "as adjusted" columns
are based upon these totals and except as set forth in the preceding
sentence, upon the assumptions described in footnote 2
above.
|
(4)
|
Includes
87,000 shares owned by Edward W. Wedbush and 3,000 shares owned by
Wedbush
Morgan Securities, Inc. based upon a Schedule 13G filed by Wedbush,
Inc.
on February 13, 2007.
|
|
|
Class
A Common Stock
|
|
Class
B Common Stock
|
||||||||
Name
(1)
|
|
Nature
and Amount
of
Beneficial
Ownership
(2) (3)
|
|
Percent
of
Class
as
Adjusted
(4)
|
|
Nature
and Amount
of
Beneficial
Ownership
(2) (3)
|
|
Percent
of
Class
|
||||
|
|
|
|
|
|
|
|
|
||||
Gerhard
J. Neumaier (5) (10)
|
|
377,904
|
|
|
12.4%
|
|
|
363,188
|
|
|
21.0%
|
|
Frank
B. Silvestro (10)
|
|
290,783
|
|
|
9.8%
|
|
|
290,783
|
|
|
16.8%
|
|
Ronald
L. Frank (6) (10)
|
|
207,330
|
|
|
7.2%
|
|
|
191,040
|
|
|
11.0%
|
|
Gerald
A. Strobel (7) (10)
|
|
218,652
|
|
|
7.6%
|
|
|
218,652
|
|
|
12.6%
|
|
Harvey
J. Gross (8)
|
|
84,048
|
|
|
3.1%
|
|
|
74,598
|
|
|
4.3%
|
|
Gerard
A. Gallagher, Jr.
|
|
62,606
|
|
|
2.3%
|
|
|
62,265
|
|
|
3.6%
|
|
Ross
M. Cellino (9)
|
|
16,914
|
|
|
*
|
|
|
1,102
|
|
|
*
|
|
Roger
Gray
|
|
11,125
|
|
|
*
|
|
|
5,945
|
|
|
*
|
|
Timothy
Butler
|
|
1,680
|
|
|
*
|
|
|
---
|
|
|
---
|
|
Directors
and Officers Group
(10
individuals)
|
|
1,288,227
|
|
|
32.6%
|
|
|
1,215,896
|
|
|
70.2%
|
|
1.
|
The
address of each of the above shareholders is c/o Ecology and Environment,
Inc., 368 Pleasant View Drive, Lancaster, New York
14086.
|
2
|
.Pursuant
to Rule 13d-3 under the Securities Exchange Act of 1934, as amended,
beneficial ownership of a security consists of sole or shared voting
power
(including the power to vote or direct the vote) or sole or shared
investment power (including the power to dispose or direct the
disposition) with respect to a security whether through any contract,
arrangement, understanding, relationship or otherwise. Unless
otherwise indicated, the shareholders identified in this table have
sole
voting and investment power of the shares beneficially owned by
them.
|
3.
|
Each
named person and all Directors and officers as a group are deemed
to be
the beneficial owners of securities that may be acquired within 60
days
through the exercise of exchange or conversion rights. The
shares of Class A Common Stock issuable upon conversion by any such
shareholder are not included in calculating the number of shares
or
percentage of Class A Common Stock beneficially owned by any other
shareholder.
|
4.
|
There
are 2,661,498 shares of Class A Common Stock issued and outstanding
and
1,732,227 shares of Class B Common Stock issued and outstanding as
of
September 28, 2007. The figure in the "as adjusted" columns are
based upon these totals and except as set forth in the preceding
sentence,
upon the assumptions described in footnotes 2 and 3
above.
|
5.
|
Includes
551 shares of Class A Common Stock owned by Mr. Neumaier's spouse,
as to
which he disclaims beneficial ownership. Includes 5,801 shares
of Class A Common Stock owned by Mr. Neumaier's Individual Retirement
Account. Does not include any shares of Class A Common Stock or
Class B Common Stock held by Mr. Neumaier's adult
children. Includes 1,986 shares of Class A Common Stock owned
by a Partnership in which Mr. Neumaier is a general
partner.
|
6.
|
Includes
3,806 Shares of Class B Common Stock owned by Mr. Frank's former
spouse as
to which he disclaims beneficial ownership except for the right to
vote
the shares which he retains pursuant to an agreement with his former
spouse. Includes 2,640 shares of Class A Common Stock owned by
Mr. Frank's individual retirement account and 9,870 shares of Class
A
Common Stock owned by Mr. Frank’s 401(k) plan
account.
|
7.
|
Includes
704 shares of Class B Common Stock held in equal amounts by Mr. Strobel
as
custodian for two of his children, as to which he disclaims beneficial
ownership. Does not include any shares of Class B Common Stock held
by a
trust which one of his children created for which Mr. Strobel serves
as
Trustee.
|
8.
|
Includes
an aggregate of 22,098 shares of Class B Common Stock owned by two
trusts
created by Mr. Gross of which he and his spouse are the sole beneficiaries
during their lifetimes.
|
9.
|
Includes
10,915 shares of Class A Common Stock owned by Mr. Cellino's spouse,
as to
which shares he disclaims beneficial ownership; also includes 4,782
shares
of Class A Common Stock owned by Mr. Cellino's Individual Retirement
Account. Includes 5 shares of Class A Common Stock owned by a
limited partnership in which Mr. Cellino is a general
partner.
|
10.
|
Subject
to the terms of the Restrictive Agreement. See "Security
Ownership of Certain Beneficial Owners-Restrictive
Agreement."
|
Item
13.
|
Certain
Relationships and Related
Transactions
|
Item
14.
|
Principal
Accounting Fees and
Services
|
|
FY
2007
|
FY
2006
|
||||||
|
|
|
||||||
Audit
Fees
|
$ |
252,400
|
$ |
213,200
|
||||
Audit
Related Services
|
33,800
|
38,800
|
||||||
|
||||||||
Grand
Total
|
$ |
286,200
|
$ |
252,000
|
Item
15.
|
Exhibits,
Financial Statements,
Schedules
|
|
|
|
Page
|
(a)
|
1.
|
Financial
Statements
|
|
|
|
|
|
|
|
Reports
of Independent Registered Public Accounting Firms
|
23
|
|
|
|
|
|
|
Consolidated
Balance Sheets - July 31, 2007 and 2006
|
24
|
|
|
|
|
|
|
Consolidated
Statements of Income for the fiscal years ended July 31, 2007, 2006
and
2005
|
25
|
|
|
|
|
|
|
Consolidated
Statements of Cash Flows for the Fiscal years ended July 31, 2007,
2006
and 2005
|
26
|
|
|
|
|
|
|
Consolidated
Statements of Changes in Shareholders Equity for the fiscal years
ended
July 31, 2007, 2006 and 2005
|
27
|
|
|
|
|
|
|
Notes
to Consolidated Financial Statements
|
28
|
|
|
|
|
|
2.
|
Financial
Statement Schedule
|
|
|
|
|
|
|
|
Schedule
II - Allowance for Doubtful Accounts and Other Reserves
|
42
|
|
|
|
|
|
|
All
other schedules are omitted because they are not applicable, or the
required information is shown in the consolidated financial statements
or
notes thereto.
|
|
|
3.
|
Exhibits
|
|
|||
|
|
|
|
|||
|
|
Exhibit
No.
|
Description
|
|||
|
|
|
|
|||
|
|
3.1
|
Certificate
of Incorporation (1)
|
|||
|
|
|
|
|||
|
|
3.2
|
Certificate
of Amendment of Certificate of Incorporation filed on March 23, 1970
(1)
|
|||
|
|
|
|
|||
|
|
3.3
|
Certificate
of Amendment of Certificate of Incorporation filed on January 19,
1982
(1)
|
|||
|
|
|
|
|||
|
|
3.4
|
Certificate
of Amendment of Certificate of Incorporation filed on January 29,
1987
(1)
|
|||
|
|
|
|
|||
|
|
3.5
|
Certificate
of Amendment of Certificate of Incorporation filed on February 10,
1987
(1)
|
|||
|
|
|
|
|||
|
|
3.6
|
Restated
By-Laws adopted on July 30, 1986 by Board of Directors
(1)
|
|||
|
|
|
|
|||
|
|
3.7
|
Certificate
of Change under Section 805-A of the Business Corporation Law filed
August
18, 1988 (2)
|
|||
|
|
|
|
|||
|
|
3.8
|
Certificate
of Change under Section 805-A of the Business Corporation Law filed
August
18, 1988 (2)
|
|||
|
|
|
|
|||
|
|
4.1
|
Specimen
Class A Common Stock Certificate (1)
|
|||
|
|
|
|
|||
|
|
4.2
|
Specimen
Class B Common Stock Certificates (1)
|
|||
|
|
|
|
|||
|
|
10.1
|
Stockholders'
Agreement among Gerhard J. Neumaier, Ronald L. Frank, Frank B. Silvestro
and Gerald A. Strobel dated May 12, 1970 (1)
|
|||
|
|
|
|
|||
|
|
10.4
|
Ecology
and Environment, Inc. Defined Contribution Plan Agreement dated July
25,
1980 as amended on April 28, 1981 and July 21, 1983 and restated
effective
August 1, 1984 (1)
|
|||
|
|
|
|
|||
|
|
10.5
|
Summary
of Ecology and Environment Discretionary Performance Plan
(3)
|
|||
|
|
10.6
|
1998
Ecology and Environment, Inc. Stock Award Plan and Amendments
(3)
|
|
|
|
|
|
|
10.7
|
2003
Ecology and Environment, Inc. Stock Award Plan (4)
|
|
|
|
|
|
|
14.1
|
Code
of Ethics (4)
|
|
|
|
|
|
|
21.5
|
|
|
|
|
|
|
|
23.1
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
32.2
|
|
Footnotes
|
|
|
|
|
|
(1)
|
Filed
as exhibits to the Company's Registration Statement on Form S-1,
as
amended by Amendment Nos. 1 and 2, (Registration No. 33-11543), and
incorporated herein by reference.
|
|
|
|
|
(2)
|
Filed
as exhibits to the Company's Form 10-K for Fiscal Year Ending July
31,
2002, and incorporated herein by reference.
|
|
|
|
|
(3)
|
Filed
as exhibits to the Company's 10-K for the Fiscal Year Ended July
31, 2003,
and incorporated herein by reference.
|
|
|
|
|
(4)
|
Filed
as exhibits to the Company's 10-K for the Fiscal Year Ending July
31,
2004, and incorporated herein by reference.
|
|
|
|
|
(5)
|
Filed
as exhibits to the Company's 10-K for the Fiscal Year Ending July
31,
2005, and incorporated herein by reference.
|
|
|
|
|
(6)
|
Filed
herewith.
|
|
ECOLOGY
AND ENVIRONMENT, INC.
|
|
|
|
|
Dated: October
29,
2007
|
/s/
GERHARD J. NEUMAIER
|
|
GERHARD
J. NEUMAIER, PRESIDENT
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/
GERHARD J. NEUMAIER
|
|
|
|
|
GERHARD
J. NEUMAIER
|
|
President
(Chief Executive Officer)
|
|
October
29, 2007
|
|
|
|
|
|
/s/
FRANK B. SILVESTRO
|
|
|
|
|
FRANK
B. SILVESTRO
|
|
Executive
Vice-President
|
|
October
29, 2007
|
|
|
|
|
|
/s/
GERALD A. STROBEL
|
|
|
|
|
GERALD
A. STROBEL
|
|
Executive
Vice-President
|
|
October
29, 2007
|
|
|
|
|
|
/s/
RONALD L. FRANK
|
|
|
|
|
RONALD
L. FRANK
|
|
Secretary,
Treasurer, Executive Vice-President of Finance
|
|
October
29, 2007
|
|
|
(Principal
Financial and Accounting Officer)
|
|
|
|
|
|
|
|
/s/
GERARD A. GALLAGHER, JR.
|
|
|
|
|
GERARD
A. GALLAGHER, JR.
|
|
Director
|
|
October
29, 2007
|
|
|
|
|
|
/s/
HARVEY J. GROSS
|
|
|
|
|
HARVEY
J. GROSS
|
|
Director
|
|
October
29, 2007
|
|
|
|
|
|
/s/
ROSS M. CELLINO
|
|
|
|
|
ROSS
M. CELLINO
|
|
Director
|
|
October
29, 2007
|
|
|
|
|
|
/s/
TIMOTHY BUTLER
|
|
|
|
|
TIMOTHY
BUTLER
|
|
Director
|
|
October
29, 2007
|