SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: November 30, 1997 Commission File No. 0-15587
---------------- ---------
EA Engineering, Science, and Technology, Inc.
-----------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 52-0991911
---------- ------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
11019 McCormick Road, Hunt Valley, Maryland 21031
-------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number including area code (410) 584-7000
---------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
----- -----
NUMBER OF SHARES OF REGISTRANT'S COMMON STOCK
OUTSTANDING AT JANUARY 9, 1998 6,234,658
-----------
Page 1 of 18
1
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
INDEX
Page
----
PART I - FINANCIAL INFORMATION
Consolidated Balance Sheets - Assets..................................... 4
Consolidated Balance Sheets - Liabilities and Stockholders' Equity....... 5
Consolidated Statements of Income........................................ 6
Consolidated Statements of Cash Flows.................................... 7
Notes to Consolidated Financial Statements............................... 8
Management's Discussion and Analysis of Financial Condition
and Results of Operations...........................................12
PART II - OTHER INFORMATION..................................................15
EXHIBIT 1
Schedule of Weighted Average Shares Outstanding........................17
EXHIBIT 27
Financial Data Schedule................................................18
2
<PAGE>
PART I - FINANCIAL INFORMATION
The consolidated financial statements included herein for EA Engineering,
Science, and Technology, Inc. and Subsidiaries (the "Company") have been
prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. In management's opinion, the interim
financial data presented includes all adjustments (which include only normal
recurring adjustments) necessary for a fair representation. Certain information
and footnote disclosures, normally included in the consolidated financial
statements prepared in accordance with generally accepted accounting principles,
have been condensed or omitted pursuant to such rules and regulations. The
Company believes, however, that the disclosures are adequate to understand the
information presented. It is suggested that these consolidated financial
statements be read in conjunction with the Company's August 31, 1997
consolidated financial statements and notes thereto included in the Company's
Annual Report on Form 10-K dated November 17, 1997.
3
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
November 30, August 31,
1997 1997
---------- ----------
<S> <C>
CURRENT ASSETS:
Cash and cash equivalents........................ $ 1,659,600 $ 2,333,300
Accounts receivable, net......................... 8,612,800 9,498,800
Costs and estimated earnings in excess of
billings on uncompleted contracts............. 6,523,200 5,653,800
Refundable income taxes.......................... 1,816,700 1,883,900
Prepaid expenses and other....................... 1,904,500 1,865,500
----------- -----------
Total Current Assets.......................... 20,516,800 21,235,300
----------- -----------
PROPERTY AND EQUIPMENT, at cost:
Furniture, fixtures and equipment................ 12,704,600 12,599,200
Leasehold improvements........................... 3,689,200 3,664,800
----------- -----------
16,393,800 16,264,000
Less-Accumulated depreciation and amortization... (14,132,400) (13,867,200)
----------- -----------
Net Property and Equipment.................... 2,261,400 2,396,800
----------- -----------
OTHER ASSETS........................................ 2,938,100 3,009,800
----------- -----------
Total Assets..................................... $25,716,300 $26,641,900
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
November 30, August 31,
1997 1997
------------ -------------
<S> <C>
CURRENT LIABILITIES:
Accounts payable................................. $ 3,978,900 $ 4,306,900
Accrued expenses................................. 1,829,000 2,694,600
Accrued salaries, wages and benefits............. 2,739,800 2,891,200
Current portion of long-term debt................ 639,200 648,300
Billings in excess of costs and estimated
earnings on uncompleted contracts............. 531,700 512,200
----------- -----------
Total Current Liabilities..................... 9,718,600 11,053,200
LONG-TERM DEBT, net of current portion.............. 2,438,400 2,331,700
----------- -----------
Total Liabilities............................. 12,157,000 13,384,900
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; 10,000,000 shares
authorized; 6,236,300 and 6,227,300 shares
issued and outstanding........................ 62,400 62,300
Preferred stock, $.01 par value; 8,000,000 shares
authorized; none issued....................... -- --
Capital in excess of par value................... 10,920,200 10,902,300
Retained earnings................................ 2,576,700 2,292,400
----------- -----------
Total Stockholders' Equity.................... 13,559,300 13,257,000
----------- -----------
Total Liabilities and Stockholders' Equity. $25,716,300 $26,641,900
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
November 30,
-------------------------------
1997 1996
------------ ------------
<S> <C>
Total revenue...................................... $16,193,300 $22,178,500
Less - Subcontractor costs......................... (3,488,600) (7,196,400)
Less - Other direct project costs.................. (1,983,400) (2,482,700)
----------- -----------
Net revenue.................................... 10,721,300 12,499,400
----------- -----------
Operating expenses:
Direct salaries and other operating............ 7,947,700 10,207,300
Sales, general and administrative.............. 2,301,200 1,926,900
----------- -----------
Total operating expenses....................... 10,248,900 12,134,200
----------- -----------
Income from operations............................. 472,400 365,200
Interest expense................................... (65,400) (68,200)
Interest income.................................... 15,500 14,100
----------- -----------
Income before income taxes......................... 422,500 311,100
Provision for income taxes......................... 138,200 124,400
----------- -----------
Net income......................................... $ 284,300 $ 186,700
=========== ===========
Net income per share............................... $0.05 $0.03
==== =====
Weighted average shares outstanding................ 6,248,300 6,197,800
========== ==========
</TABLE>
The accompanying notes are an integral part of these statements.
6
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
November 30,
-------------------------------
1997 1996
---------- -----------
<S> <C>
CASH FLOWS FROM (USED FOR) OPERATING ACTIVITIES:
Net income................................................ $ 284,300 $ 186,700
Noncash expenses included in net income
Depreciation and amortization......................... 293,200 408,400
Current provision for income taxes.................... -- 124,400
Net (increase) decrease in noncash assets -
Accounts receivable, net.............................. 886,000 (112,900)
Costs and estimated earnings in excess of
billings on uncompleted contracts................... (869,400) 783,100
Prepaid expenses and other assets..................... 32,700 (549,400)
Net increase (decrease) in nondebt liabilities -
Accounts payable and accrued expenses................. (1,345,000) (383,900)
Refunds of income taxes............................... 67,200 72,600
Payments of income taxes.............................. -- (19,000)
Billings in excess of costs and estimated
earnings on uncompleted contracts................... 19,500 (37,700)
----------- -----------
Net cash flows from (used for) operating
activities.......................................... (631,500) 472,300
----------- -----------
CASH FLOWS FROM (USED FOR) FINANCING ACTIVITIES:
Reduction of long-term debt............................... (204,000) (1,285,300)
Proceeds from issuance of long-term debt.................. 301,600 929,900
Proceeds from issuance of common stock.................... 18,000 30,600
----------- -----------
Net cash flows from (used for) financing activities... 115,600 (324,800)
----------- -----------
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Purchase of equipment, net................................ (157,800) (143,000)
----------- -----------
Net cash flows used for investing activities........... (157,800) (143,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS.......... (673,700) 4,500
----------- -----------
CASH AND CASH EQUIVALENTS, beginning of period................ 2,333,300 1,308,600
----------- -----------
CASH AND CASH EQUIVALENTS, end of period...................... $ 1,659,600 $1,313,100
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
7
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 1997 AND 1996
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Presentation--
The accompanying consolidated financial statements present the accounts of
EA Engineering, Science, and Technology, Inc. (EA) and its wholly-owned
subsidiaries, EA International, Inc. and EA Financial, Inc., and its
wholly-owned subsidiaries, EA Global, Inc. and EA Engineering, Science, and
Technology de Mexico, S.A. de C.V. (EA de Mexico). The entities are collectively
referred to herein as the "Company." All significant intercompany transactions
have been eliminated in consolidation.
Revenue Recognition--
The Company is a multidisciplinary energy and environmental services and
consulting engineering organization providing a wide range of consulting,
engineering, remediation, and analytical services. These services are generally
performed under time and material, fixed price, and cost plus fixed fee
contracts which vary in length from one month to ten years.
The Company accounts for contract revenues and costs under fixed price
contracts using the percentage-of-completion method. The
percentage-of-completion is determined using the "cost-to-cost" method for each
contract cost component. Under this method, direct labor and other contract
costs incurred to date are compared to periodically revised estimates of the
total of each contract cost component at contract completion to determine the
percentage of revenues to be recognized. Revenues from time and material and
cost plus fixed fee contracts are recognized currently as the work is performed.
Provision for estimated losses on uncompleted contracts, to the full extent of
the loss, is made during the period in which the Company first becomes aware
that a loss on a contract is probable.
Contract costs and estimated earnings recognized in excess of amounts billed
are classified as current assets under "costs and estimated earnings in excess
of billings on uncompleted contracts." Billings in excess of contract costs and
estimated earnings are classified as current liabilities under "billings in
excess of costs and estimated earnings on uncompleted contracts."
Generally, contracts provide for the billing of costs incurred and estimated
fees on a monthly basis. Amounts included in "costs and estimated earnings in
excess of billings on uncompleted contracts" in the accompanying financial
statements will be billed within twelve months of the balance sheet date.
Major Clients--
Various agencies of the federal government accounted for approximately 50% and
44% of the Company's net revenue for the three months ended November 30, 1997
and 1996, respectively. Additionally, various agencies of the federal government
accounted for approximately 40% of the Company's accounts receivable and costs
and estimated earnings in excess of billings on uncompleted contracts as of
November 30, 1997. Approximately 60% of the Company's current net contract
8
<PAGE>
backlog is with the federal government. Net contract backlog amounts as of
November 30, 1997 and August 31, 1997 were $21.6 million and $22.6 million,
respectively.
Cash and Cash Equivalents--
Cash equivalents consist of money market instruments with a purchased
original maturity of three months or less, stated at cost, which approximates
the market.
Property and Equipment--
Property and equipment are depreciated using the straight-line method over
their estimated useful lives ranging from 3 to 10 years. Leasehold improvements
are amortized over the shorter of the estimated useful life or the term of the
lease.
Segment Information--
The Company operates largely within one industry segment, providing a wide
range of consulting, engineering, remediation, and analytical services.
Reclassifications-
For historical comparisons, net revenue in past periods has been adjusted to
include other direct project costs in addition to subcontract costs. In previous
years, only subcontract costs were deducted from total revenue to arrive at net
revenue. Additionally, operating costs in past years have been adjusted to
include sales and marketing costs in the category of sales, general and
administrative costs. In previous periods, these costs were included in direct
salaries and other operating expenses.
Risks and Uncertainties--
Reliance on major government contracts subjects the Company to risks
associated with public budgetary restrictions and uncertainties, discrepancies
between awarded contract amounts and actual revenues, and cancellation at the
option of the government. The Company attempts to mitigate these risks by
staffing only to meet reasonably anticipated average workloads, by using
subcontractors to handle peak workloads, and by obtaining termination benefit
contract provisions. Cancellation of any of the Company's major government
contracts, however, could have a material adverse effect on the Company.
Use of Estimates--
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets, liabilities, revenues and
expenses in the financial statements and in the disclosures of contingent assets
and liabilities. While actual results could differ from these estimates,
management believes that actual results will not be materially different from
amounts provided in the accompanying consolidated financial statements.
Supplemental Disclosures of Cash Flow Information--
Cash paid for interest during the three months ended November 30, 1997 and
1996 for interest was $48,900 and $43,500, respectively. Retirements of property
and equipment for the same periods were $28,000 and $21,900, respectively.
9
<PAGE>
Accounting for Income Taxes--
Deferred income taxes are recorded to reflect the tax consequences on future
years for differences between the tax basis of assets and liabilities and their
financial reporting amounts.
Note 2. BANK FINANCING ARRANGEMENTS:
The Company maintains an $8.5 million revolving line of credit and a $1.5
million equipment line of credit arrangement with a commercial bank. Borrowings
under the revolving line of credit facility are secured by receivables and are
limited to a percentage of certain accounts receivables and costs and estimated
earnings in excess of billings on uncompleted contracts (up to a minimum of
$4,000,000). The agreement became effective August 22, 1997. During fiscal year
1998 to date, the Company has been in compliance with all covenants related to
financing agreements. Prior to the current fiscal year, the Company has either
been in compliance or has obtained waivers on all covenants related to financing
arrangements.
The Company did not have short-term borrowings from the financing agreement
for the three-month period ended November 30, 1997, or for the three-month
period ended November 30, 1996.
Long-term debt consists of the following:
<TABLE>
<CAPTION>
November 30,
-----------------
1997 1996
---- ----
<S> <C>
Revolving credit facility payable to a commercial bank
effective August 22, 1997, interest charged at
LIBOR plus 250; facility expires September 1999.......... $2,129,300 $1,182,400
Notes payable to a commercial bank payable in equal
monthly installments of $43,650 through December
1997; thereafter, $21,400 plus interest charged at
LIBOR plus 250, secured by leasehold improvements
and certain of EA's analytical laboratory equip-
ment..................................................... 300,800 841,400
Note payable to a commercial bank payable in equal
monthly installments of $29,600, plus interest at
9.1% through December 1999, secured by certain
computer equipment....................................... 647,500 929,900
---------- ----------
Total long-term debt....................................... 3,077,600 2,953,700
Less-current portion....................................... (639,200) (939,500)
---------- ----------
Long-term portion.......................................... $2,438,400 $2,014,200
========== ==========
</TABLE>
10
<PAGE>
Note 3. NET INCOME (LOSS) PER SHARE:
Net income (loss) per share is based on the weighted average number of
shares of common stock and common stock equivalents outstanding during the
period. Common stock equivalents are calculated using the treasury stock method.
Note 4. PROFIT SHARING:
EA maintains a defined contribution retirement plan covering all employees
who are at least 21 years of age and have completed six months of credited
service, as defined by the plan. The plan provides for discretionary employer
contributions for each fiscal year, in amounts determined annually by the Board
of Directors. The plan also includes a 401(k) provision, allowing for Company
matching contributions.
Note 5. STOCK OPTION AND EMPLOYEE STOCK PURCHASE PLANS:
The Company maintains a Stock Option Plan (the Plan), which provides for the
granting of nonqualified stock options and incentive stock options to certain
key employees and officers of the Company. The exercise price of an option
granted under the Plan may not be less than the fair market value of the
underlying shares of Common Stock on the date of the grant. A total of 574,200
options are issued and outstanding as of November 30, 1997 having an average
exercise price of $2.29. Of the outstanding options, 200,000 are held by Donald
A. Deieso, President and CEO. The exercise price of the 200,000 shares is $2.25,
which was equal to the market price on the grant date. There are 346,000 options
available for issuance as of November 30, 1997.
The Company maintains an Employee Stock Purchase Plan to provide eligible
employees with the opportunity to purchase shares of the Company's Common Stock
through voluntary payroll deductions. Under the Plan, eligible employees may
purchase shares through monthly payroll deductions at 95% of current market
value at the time of purchase. The Company pays all administrative expenses
related to employee purchases. A total of 142,300 shares remain authorized for
distribution under the Plan as of November 30, 1997.
The Company maintains two Non-Employee Director Stock Option Plans (1993 and
1995) which provide for the granting of nonqualified stock options to its four
non-employee directors. The exercise price of the 40,000 options, which were
outstanding as of November 30, 1997 ranged between $2.03 and $6.13, which
equaled the fair market value at the dates of grant. A total of 37,500 options
remain reserved for the Director Stock Option Plans as of November 30, 1997.
Note 6. Restructuring:
On March 25, 1997, the Company announced a major organizational realignment
to reposition itself in the marketplace. In connection with the restructuring,
the Company incurred charges of $3,000,100 during the third quarter related to
severance, planned reduction in office space, the suspension of the
implementation of a new project/financial system, and other related costs.
This restructuring included a staff reduction of approximately 125
employees.
As of November 30, 1997 and August 31, 1997, the Company had accrued
expenses of $532,700 and $880,100, respectively, in the accompanying
consolidated balance sheets for costs to be incurred in future periods.
11
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The Company's results of operations are significantly affected by the timing
of the award of contracts, the timing of performance on contracts, and the
extent to which the Company's employees are performing billable tasks as opposed
to engaging in preparing bid proposals and other required non-billable
activities. Due to these factors, the results of operations for interim periods
are not necessarily indicative of the results of operations for longer periods
and interim period comparisons may not be as meaningful as comparisons over
longer periods.
For historical comparisons, net revenue in past periods has been adjusted to
include other direct project costs in addition to subcontract costs. In previous
years, only subcontract costs were deducted from total revenue to arrive at net
revenue. Additionally, operating costs in past years have been adjusted to
include sales and marketing costs in the category of sales, general and
administrative costs. In previous periods, these costs were included in direct
salaries and other operating expenses.
Three Months Ended November 30, 1997
Net revenue for the three months ended November 30, 1997 was $10,721,300, a
decrease of 14.2% from $12,499,400 for the same period in 1997. The decrease is
attributable to lower contract volume across all client sectors resulting from
greater selectivity in the pursuit of opportunities. Additionally, price
competition remains intense within the energy and environmental services
industry, further surpressing net revenue levels compared to the prior year's
first quarter.
Direct salaries and other operating costs decreased to $7,947,700 from
$10,207,300, representing 74.1% and 81.7% of net revenue for the three months
ended November 30, 1997 and 1996, respectively. The decreases were attributable
to increased staff utilization and lower overall operating costs from quarter to
quarter.
Sales, general and administrative costs increased to $2,301,200 from
$1,926,900. The increase in costs was primarily related to an additional
investment in sales and marketing expenses.
As a result of the above factors, income from operations for the three months
ended November 30, 1997 and 1996 increased 29.4% to $472,400 from $365,200
representing 4.4% and 2.9% of net revenue. Interest expense, net, decreased
$4,200 for the three months ended November 30, 1997, compared to the prior year.
The net decrease in interest expense is primarily the result of decreasing
long-term debt principal balances and interest paid on its revolving line of
credit due to lower average daily amounts outstanding.
The provision for income taxes was $138,200 and $124,400 for the three months
ended November 30, 1997 and 1996, respectively. This represents effective rates
of 32.7% and 40.0%, respectively.
12
<PAGE>
Net income for the three months ended November 30, 1997 and 1996 increased
52.3% to $284,300 from $186,700, representing 2.7% and 1.5% of net revenue.
Three Months Ended November 30, 1996
Net revenue for the three months ended November 30, 1996 was $12,499,400, a
decrease of 13.7% from $14,490,300 for the same period in 1995. The decrease was
attributable to lower contract volume associated with the Department of Defense
activities, partially offset by increases in Industrial, State and Local
Government, Federal Non-DOD agency activities, and increased recovery of General
and Administrative expenses and fees on subcontracted work.
Direct salaries and other operating costs decreased to $10,207,300 from
$11,487,700, representing 81.2% and 79.3% of net revenue for the three months
ended November 30, 1996 and 1995, respectively. As a percentage of net revenue,
the increase was attributable to decreased staff utilization, and increased
information systems costs.
Sales, general and administrative costs decreased to $1,926,900 from
$2,008,400. The decrease in costs was related to the reduction of administrative
staff quarter to quarter.
As a result of the above factors, income from operations for the three months
ended November 30, 1996 and 1995 decreased 63.3% to $365,200 from $994,200
representing 2.9% and 6.9% of net revenue. Interest expense, net, decreased
$47,100 for the three months ended November 30, 1996, compared to the prior
year. The net decrease in interest expense is primarily the result of decreasing
long-term debt principal balances, partially offset by increased short-term
borrowings to fund federal subcontracting payment requirements on certain
contracts.
The provision for income taxes was $124,400 and $357,200 for the three months
ended November 30, 1996 and 1995, respectively, representing effective rates of
40% for both years.
Net income was $186,700 for the three months ended November 30, 1996,
compared to $535,800 for the three months ended November 30, 1995.
Liquidity and Capital Resources
Cash and cash equivalents (cash) decreased by $673,700 for the three months
ended November 30, 1997. The decrease principally resulted from the payout of
cash related to FY97 restructuring expenses.
The Company's capital expenditures, consisting primarily of purchases of
equipment and leasehold improvements, were approximately $157,800 and $143,000
for the three months ended November 30, 1997 and 1996, respectively.
At November 30, 1997, the Company had outstanding long-term debt, including
the current portion, of $3,077,600. This represents a net increase of $123,900
from the $2,953,700 balance at August 31, 1997. The increase is the result of a
$946,900 increase in its revolving line of credit balance, partially offset by
net repayments of $540,600 for equipment loans and $282,400 for computer
equipment.
The Company's existing funds, cash from operations, and the available portion
of its $8,500,000 revolving line and $1,500,000 equipment line of credit
13
<PAGE>
arrangements are expected to be sufficient to meet the Company's present cash
needs. The Company also has access to certain capital equipment financing
arrangements through various equipment suppliers. The Company also believes it
has the ability to raise capital through public or private placement of debt and
will pursue such options as the need arises to expand business services,
facilities, or acquire equipment in conjunction with a review of the most
cost-effective means for the Company and its stockholders.
While the Company believes that there is sufficient market demand to absorb
the additional contracting capacity resulting from its continued expansion,
there can be no assurance that this demand will exist or continue. Although the
Company has the ability to reduce its professional staff in periods of reduced
demand, it may choose not to make full reductions in such periods, with
resulting adverse effects on operations.
-----------------------------------
Certain of the statements contained in this report are forward-looking
statements that involve risks and uncertainties, such as, among other things,
those related to the Company's contracts, demand for Company services, overall
government funding and spending for environmental projects, the Company's highly
competitive marketplace, and other business risks as detailed from time to time
in the Company's filings with the Securities and Exchange Commission.
14
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6
(a) Exhibits
None
(b) Reports on Form 8-K
None
15
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EA Engineering, Science, and
Technology, Inc. & Subsidiaries
______________________________________
(Registrant)
January 13, 1998 By: /s/ Donald A. Deieso
________________ ______________________________________
(Signature)
Donald A. Deieso
______________________________________
President and Chief Executive Officer
______________________________________
(Title)
January 13, 1998 By: /s/ Barbara L. Posner
________________ ______________________________________
(Signature)
Barbara L. Posner
______________________________________
Senior Vice President,
Finance and Administration
______________________________________
(Title)
16
EXHIBIT 1
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC.
SCHEDULE OF WEIGHTED AVERAGE SHARES OUTSTANDING
<TABLE>
<CAPTION>
Three Months Ended
November 30,
-------------------------------
1997 1996
----------- ----------
<S> <C>
Weighted average shares of common stock............. 6,233,400 6,185,100
Impact of dilutive stock options
as of November 30, 1997 and 1996,
respectively........................................ 14,900 12,700
--------- ---------
Weighted average shares of common stock............. 6,248,300 6,197,800
========= =========
</TABLE>
17
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> NOV-30-1997
<CASH> 1,659,600
<SECURITIES> 0
<RECEIVABLES> 8,612,800
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 20,384,400
<PP&E> 16,393,800
<DEPRECIATION> 14,132,400
<TOTAL-ASSETS> 25,583,900
<CURRENT-LIABILITIES> 9,586,200
<BONDS> 0
<COMMON> 62,400
0
0
<OTHER-SE> 13,496,900
<TOTAL-LIABILITY-AND-EQUITY> 25,583,900
<SALES> 10,721,300
<TOTAL-REVENUES> 16,193,300
<CGS> 10,248,900
<TOTAL-COSTS> 5,472,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 49,900
<INCOME-PRETAX> 422,500
<INCOME-TAX> 138,200
<INCOME-CONTINUING> 284,300
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 284,300
<EPS-PRIMARY> 0.05
<EPS-DILUTED> 0.05
</TABLE>
