UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 11, 2001
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EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-15587 52-0991911
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(State or Other Jurisdiction (Commission I.R.S. Employer ID Number
of Incorporation or File Number)
Organization)
11019 McCormick Road, Hunt Valley, Maryland 21031
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code 410/584-7000
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Item 5. Other Events.
On January 11, 2001, EA Engineering, Science, and Technology, Inc.
(the "Company")issued the following press release:
EA Engineering, Science, and Technology, Inc.
Reports First Quarter 2001 Results
Contacts: Melissa L. Kunkel, Director of Marketing and Communications
Tel. (410) 527-2442 FAX: (410) 771-9148
World Wide Web Site: http://www.eaest.com
For Release: Immediately upon receipt
BALTIMORE, MARYLAND, January 11, 2001... EA Engineering, Science, and
Technology, Inc. (NASDAQ: EACO) today reported positive earnings for the first
fiscal quarter ended November 30, 2000.
Net revenues for the fiscal 2001 first quarter were $8,493,100, compared to
$8,702,100 for the comparable period in fiscal 2000. The Company attributed
slightly lower net revenue to higher subcontractor costs for the quarter versus
the same period the prior year. Net income for the fiscal 2001 first quarter was
$103,300, or $0.02 per share, compared to net income of $228,300, or $0.04 per
share in the fiscal 2000 first quarter. New orders remained strong at $15.5
million for the fiscal 2001 first quarter, an increase of more than 20% from the
fiscal 2000 comparable period.
Loren D. Jensen, EA's President and Chief Executive Officer said, "We are
pleased and encouraged by the positive results we are reporting today. The
successes we've achieved in the first quarter are indication that our growth
strategy is on track. Our regional sales and marketing efforts continue to focus
on target clients and opportunities; the effect of which was a 20 percent
increase in new orders for the quarter."
Barbara L. Posner, EA's Chief Operating Officer and Chief Financial Officer,
added, "Although a year to year comparison of quarterly earnings shows net
income is slightly lower, our successful management of operating costs enabled
us to report positive results on lower net revenue and higher interest expense.
We have been successful in implementing our operating cost reduction efforts,
particularly at the Corporate level, over the past year, and these reductions
are now starting to take effect. We anticipate that continued operating cost
reductions and aggressive execution of our growth strategy will provide for
continued improvements in both top and bottom-line performance."
During the quarter the Company was notified by the U.S. Army Corps of Engineers,
Kansas City District, that it has been selected for award of two contracts, each
valued at approximately $25 million. One contract is for long term remedial
action services at National Priority List sites in EPA Region II. The other
contract is for long-term operations and maintenance services at Department of
Defense facilities in EPA Region VII. The Company received an indefinite
quantity environmental engineering services contract with the Dormitory
Authority of the State of New York, its second contract with the agency. The
Company also received several strategically significant new orders, including a
contract with the South Florida Water Management District valued at nearly $1
million, to conduct a dredging demonstration project in support of a feasibility
study for Lake Okeechobee.
Commenting on the growth in new orders, Dr. Jensen stated, "This represents the
fifth consecutive quarter in which we are reporting a year-over-year increase in
contract bookings, another indication that our aggressive regional marketing
strategy is working. New orders this quarter reflected our increasing response
to clients' needs in the areas of water, wastewater, and natural resources. We
believe that these awards demonstrate our success in redirecting the Company's
energy and efforts into those areas of technical expertise where we are
recognized for our excellence by both existing and new clients, in both the
private and the government sectors."
EA Engineering, Science, and Technology, Inc., is a publicly held consulting
firm specializing in water resource issues, strategic environmental management,
and regulatory compliance solutions. EA has developed a uniquely integrated and
broadly diversified scientific, technological and engineering approach to
identifying, understanding, and solving the complex environmental and health and
safety issues of it's clients. Through a network of more than 20 offices, EA
provides its serves to federal and state governmental agencies, and a broad
spectrum of commercial and industrial clientele, both in the United States and
abroad.
<PAGE>
Certain of the statements contained in this news release are forward-looking
statements that involve risks and uncertainties, such as those related to the
Company's contracts and other business risks, including general economic
conditions, the effects of the Company's restructuring, and industry-wide market
factors, as detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
The Company's results of operations are also affected by significant competition
in the industry, including a very competitive requirement for successful bidding
and solicitation of contracts. As such, operating results for the reporting
period are not necessarily indicative of the results that may be expected for
any subsequent periods.
# # #
[Financial Table Follows]
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EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. AND SUBSIDIARIES
OPERATING RESULTS
<TABLE>
First Quarter Ended
November 30,
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2000 1999
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<S> <C> <C>
Total Revenue $ 14,713,600 $ 14,808,600
Less subcontractor costs (4,742,000) (4,581,500)
Less other project costs (1,478,500) (1,525,000)
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Net revenue $ 8,493,100 $ 8,702,100
Cost and operating expense:
Direct Salaries and Other Operating $ 6,686,100 $ 6,635,200
Sales, general, and administrative 1,545,800 1,639,000
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Total costs and operating expense $ 8,231,900 $ 8,274,200
Income from operations $ 261,200 $ 427,900
Other income and expense:
Interest expense (108,600) (73,100)
Interest income $ 19,700 $ 26,300
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Other income and expense, net ($ 88,900) ($ 46,800)
Income before income taxes $ 172,300 $ 381,100
Provision for income taxes $ 69,000 $ 152,800
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Net income $ 103,300 $ 228,300
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Basic EPS $ 0.02 $ 0.04
Diluted EPS $ 0.02 $ 0.04
Weighted average shares outstanding 5,900,100 6,322,400
Diluted weighted average shares outstanding 5,901,900 6,322,400
</TABLE>
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SIGNATURES
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 hereunto duly authorized.
EA Engineering, Science, and Technology, Inc.
Registrant
Date: January 12, 2001 By: /s/ Barbara L. Posner
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Barbara L. Posner
Chief Financial Officer
Chief Operating Officer
