EEI 2017 Form 10-K

Table of Contents Item 6. Selected Consolidated Financial Data Fiscal Year Ended July 31, 2017 2016 2015 2014 2013 (In thousands, except per share amounts) Operating data: Revenues, net $ 104,502 $ 105,817 $ 126,935 $ 128,427 $ 134,937 Income (loss) from operations $ 5,928 $ 4,142 $ 7,604 $ (507) $ (898) Income (loss) before income tax provision $ 5,425 $ 4,367 $ 7,969 $ (447) $ (968) Net income (loss) attributable to Ecology and Environment, Inc. $ 3,015 $ 886 $ 3,396 $ (1,383) $ (2,130) Net income (loss) per common share - basic and diluted $ 0.70 $ 0.21 $ 0.79 $ (0.32) $ (0.50) Cash dividends declared per common share $ 0.40 $ 0.44 $ 0.48 $ 0.48 $ 0.48 Weighted average common shares outstanding - basic and diluted 4,294,501 4,289,993 4,287,775 4,283,984 4,247,821 Balance at July 31, 2017 2016 2015 2014 2013 (In thousands, except per share amounts) Balance sheet data: Working capital $ 32,491 $ 28,241 $ 27,761 $ 26,502 $ 33,582 Total assets $ 60,777 $ 59,512 $ 68,489 $ 71,708 $ 81,682 Outstanding advances under lines of credit $ 581 $ 312 $ 672 $ 1,572 $ 6,529 Total long-term debt and capital lease obligations $ 448 $ 457 $ 946 $ 842 $ 451 Ecology and Environment, Inc. shareholders’ equity $ 38,106 $ 35,572 $ 36,915 $ 37,678 $ 43,544 Book value per share $ 8.87 $ 8.29 $ 8.61 $ 8.80 $ 10.25 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Cash, cash equivalents and restricted cash increased $3.2 million during fiscal year 2017. Excluding the payment of $1.7 million of cash dividends, which were approved on a discretionary basis by the Company’s Board of Directors, cash generated from operations exceeded cash required to fund investing and financing activities by $4.7 million during the year, which includes $1.5 million received from the sale of land, a vacant building, related building improvements and fixtures and warehouse space to a non-affiliated third party. Unsecured lines of credit of $39.5 million and $39.0 million were available for working capital and letters of credit at July 31, 2017 and 2016, respectively, of which $3.3 million and $2.5 million were used at July 31, 2017 and 2016, respectively. Contractual interest rates ranged from 3.25% to 9.75% at July 31, 2017. Our lenders have reaffirmed the lines of credit within the past twelve months. We believe that available cash balances in our domestic companies, anticipated cash flows from U.S. operations, and our available lines of credit will be sufficient to cover working capital requirements of our U.S. operations during the next twelve months and the foreseeable future. Historically, our foreign subsidiaries have generated adequate cash flow to fund their operations. During fiscal years 2016 and 2017, our South American operations have been affected by adverse economic conditions. The total scope and duration of the economic downturn and the ultimate impact that it will have on our South American operations are uncertain. In the event that these subsidiaries are unable to generate adequate cash flow to fund their operations, additional funding from EEI or lending institutions will be considered. We intend to reinvest net cash generated from undistributed foreign earnings into operations and business expansion opportunities outside the U.S. Excess cash accumulated by any foreign subsidiary, beyond that necessary to fund operations or business expansion, may be repatriated to the U.S. at the discretion of the Boards of Directors of the respective entities. The Company is required to accrue and pay taxes on any amounts repatriated to the U.S. from foreign subsidiaries. During fiscal year 2017, one of the Company’s majority owned subsidiaries in South America declared a total of $1.5 million of dividends to its shareholders, of which $0.2 million was paid to minority shareholders and $0.2 million was repatriated to the U.S. during fiscal year 2017. 19