Third Consecutive Quarter with Positive Earnings Since Restructuring

    BALTIMORE, Jan. 6 /PRNewswire/ -- EA Engineering, Science, and Technology,
Inc. (Nasdaq: EACO), an international consulting firm specializing in energy,
the environment, and health and safety, today reported financial results for
the first quarter of fiscal 2000.

    Fiscal First Quarter Highlights:
    -- Net revenues grew 8% to $8.7 million from $8.1 million in the first
       quarter of fiscal 1999
    -- EPS grew to $0.04 per diluted share, the third consecutive quarter of
       positive earnings
    -- Net income from continuing operations increased significantly from the
       fiscal first quarter of 1999
    -- New orders grew to $12.8 million, or 15% from $11.2 million for the
       1999 comparable fiscal quarter

    First Quarter Results
    EA Engineering, Science, and Technology, Inc. today reported net income
for the first fiscal quarter ended November 30, 1999 of $228 thousand, or
$0.04 per share on a diluted share basis.  This compares to net income of
$7 thousand, or $0.00 per share for the fiscal 1999 comparable period.
During the quarter, net revenues grew to $8.7 million, or 8%, from
$8.1 million for the 1999 first quarter.  New orders remained strong with
$12.8 million for the fiscal 2000 first quarter, an increase of 15% from the
1999 comparable quarter.

    Management Comments
    Loren D. Jensen, EA's founder and Chief Executive Officer said, "I am
extremely pleased with the level of profitability that we are reporting today.
Clearly, the momentum that began to build during the second half of fiscal
1999 continues into the 21st century.  These results are evidence of how our
corporate strategy of building quality relationships with our existing
customers and adding international assignments is working."
    Dr. Jensen continued, "Our growth strategy continues to pay off for the
Company.  In order to handle the increase in new orders, during the first
fiscal quarter we hired 15 additional consultants as full time employees.
The key to our success is quality.  Seventy to eighty percent of our business
comes from existing customers and quality service is what keeps them coming
back.  I am gratified to see that our commitment to quality, both internally
and externally, is having such a positive impact."
    Barbara Posner, the Company's Chief Operating Officer and Chief Financial
Officer added, "While we have always been focused on both top and bottom line
growth, our challenge in prior quarters was to restore the Company to
profitability.  We restructured the Company and streamlined our operations
early last year to make that happen.  The results that we are reporting today
show that we have accomplished our goal and can now focus our efforts more on
enhancing our revenue stream which increased 8% to $8.7 million in the most
recent quarter, from $8.1 million for the 1999 fiscal first quarter."

    Stock Repurchase Update
    As of December 27, 1999, the Company had repurchased 179,500 shares of its
outstanding common stock at an average price of $1.05 per share.  The Company
has authority to repurchase an additional 320,500 shares of its outstanding
common stock under the current repurchase program.  Commenting on the
repurchases, Dr. Jensen said, "We continue to believe that stock repurchases
under these current favorable conditions are consistent with the goal of
enhancing shareholder value, which continues to be a major objective of the
Company."

    Outlook for Fiscal 2000
    Dr. Jensen commented, "Our employees have embraced the changes that were
necessary to restore the Company to profitability, and as a result, EA is
better positioned today than at any time in its history to both grow revenues
and enhance profitability.  Accordingly, we continue to be comfortable with
our estimates that fully diluted earnings per share should reach between
$0.15 and $0.17 for fiscal year 2000."
    EA Engineering, Science, and Technology, Inc., is a publicly held
international management consulting firm specializing in energy, the
environment, and health and safety.  Through its network of more than
20 offices, EA provides scientific, engineering, economic, analytical, and
management solutions to corporate, utility, municipal, and federal government
clients.

    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.

    For more information on EA Engineering, Science, and Technology via fax at
no charge, please call 800-PRO-INFO and enter ticker symbol "EACO."

          EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. AND SUBSIDIARIES
                                OPERATING RESULTS

                                                    First Quarter Ended
                                                       November 30,
                                                  1999              1998

    Total revenue                             $14,808,600       $11,740,000
      Less subcontractor costs                 $4,581,500         2,128,700
      Less other project costs                 $1,525,000        $1,521,500

    Net revenue                                $8,702,100        $8,089,800

    Cost and operating expense:
      Direct Salaries and Other Operating      $6,635,200        $6,007,100
      Sales, general, and administrative       $1,639,000        $2,039,300
      Restructuring                                    $0                $0
      Total costs and operating expense        $8,274,200        $8,046,400

    Income from operations                       $427,900           $43,400

    Other income and expense:
      Interest income                             $26,300           $15,600
      Interest expense                           ($73,100)         ($48,900)
      Other income and expense, net              ($46,800)         ($32,300)

    Income before income taxes                   $381,100           $11,100

    Provision for income taxes                   $152,800             4,400

    Net income from continuing operations         228,300            $6,700

    Discontinued Operations:
      Net Income (loss) from Discontinued
        Operations                                     --           $28,000
      Net Gain on Sale of Labs                         --                $0
      Income (loss) from Discontinued
        Operations                                     --           $28,000

    Net Income                                   $228,300           $34,700

    Basic EPS - Continuing operations               $0.04             $0.00
    Diluted EPS - Continuing operations             $0.04             $0.00

    Basic EPS - Discontinued operations                --             $0.01
    Diluted EPS - Discontinued operations              --             $0.01

    Weighted average shares outstanding         6,327,124         6,292,300
    Diluted weighted average shares
      outstanding                               6,327,124         6,292,600

Link to this page: