BOISE, ID, Apr 29 (MARKET WIRE) --
American Ecology Corporation (NASDAQ: ECOL) ("the Company") today reported
record operating and financial performance for the quarter ended March 31,
2008. Net income reached $5.9 million, or $0.32 per diluted share, for the
first quarter of 2008, up 19% from net income of $4.9 million, or $0.27 per
diluted share, in the first quarter last year.
Operating income for the first quarter of 2008 set a new quarterly record of
$9.5 million. This was a 20% increase over operating income of $7.9 million
recognized in the first quarter of 2007, and was 16% higher than our previous
quarterly operating income record of $8.2 million posted in the second
quarter of 2007.
Revenue for the first quarter of 2008 rose 19% to $46.2 million, up from
$39.0
million in the same quarter last year. Our Idaho, Nevada and Texas waste
facilities disposed of a record 343,000 tons of waste in the first quarter of
2008, a 28% increase over the first quarter of 2007. Gross profit was $13.4
million in the first quarter of 2008, a 17% increase over gross profit of
$11.5 million posted in the same quarter last year.
Selling, general and administrative ("SG&A") expenses for the first
quarterof 2008 were $3.9 million, or 9% of revenue, as compared to $3.6 million,
or 9% of
revenue, in the same quarter last year. The $320,000 increase in SG&A
expenses primarily reflects higher payroll and benefit expenses, stock-based
compensation expense, employee bonus accruals and business development costs.
Other income was $127,000 for the first quarter of 2008 and consisted
primarily of
interest and royalty income. This compares to other income of $214,000 for
the first quarter of 2007, which was primarily interest income.
At March 31, 2008, we had $10.4 million of cash and short-term
investments.Of our $15.0 million line of credit, $11.0 million was unused and
the
remaining $4.0 million covers a standby letter of credit providing collateral
for
financial assurance policies for future closure and post-closure obligations.
The Company had no debt at quarter end.
"Record waste volumes made possible by recent capital investments helped
usdeliver record operating profits for the quarter," said Chairman,
Presidentand Chief Executive Officer Stephen Romano. "While our Idaho site led
the
way, recent investments in new waste treatment and storage capacity at our
Texas and Nevada sites helped each of these operations deliver superior
performance as well."
Outlook
The Company issued 2008 earnings guidance of $1.17 to $1.23 per diluted
share on
February 7, 2008.
"Based on record first quarter results and a strong second quarter
outlook,we project earnings toward the upper end of our 2008 guidance range,"
Romano
commented. "Our Texas site is also on schedule to begin thermal desorption and
recycling of petroleum-based wastes from refineries and other customers by
the second half of the year."
Dividend
On April 1, 2008 the Company declared a $0.15 per common share quarterly
dividend
for stockholders of record on April 11, 2008. This $2.7 million dividend was
paid on April 18, 2008 using cash on hand.
Conference Call
American Ecology will hold an investor conference call on Tuesday, April 29,
2008 at 11 a.m. Eastern Daylight Time (9:00 a.m. Mountain Daylight Time) to
discuss these results, its current financial position and its 2008 business
outlook. Questions will be invited after management's presentation. Interested
parties
can join the conference call by dialing (877) 681-3374 or (719) 325-4913 and
using the passcode 7879642. The conference call will also be broadcast live
on our website at www.americanecology.com. An audio replay will be
available through May 6, 2008 by calling (888) 203-1112 or (719) 457-0820
and using the passcode 7879642. The replay will also be accessible on our
website
at www.americanecology.com.
About American Ecology Corporation
American Ecology Corporation, through its subsidiaries, provides
radioactive, PCB,
hazardous, and non-hazardous waste services to commercial and government
customers
throughout the United States, such as steel mills, medical and academic
institutions, refineries, chemical manufacturing facilities and the nuclear
power
industry. Headquartered in Boise, Idaho, the Company is the oldest radioactive
and hazardous waste services company in the United States.
This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995 that are based on our
current expectations, beliefs and assumptions about the industry and markets
in which American Ecology Corporation and its subsidiaries operate. Because such
statements include risks and uncertainties, actual results may differ
materially from what is expressed herein and no assurance can be given that
the Company will meet its 2008 earnings estimates, successfully execute its
growth
strategy, or declare or pay future dividends. For information on other
factors that could cause actual results to differ materially from expectations,
please refer to American Ecology Corporation's December 31, 2007 Annual Report
on
Form 10-K and other reports filed with the Securities and Exchange Commission.
Many of the factors that will determine the Company's future results are
beyond the ability of management to control or predict. Readers should not
place undue reliance on forward-looking statements, which reflect management's
viewsonly as of the date such statements are made. The Company undertakes no
obligation to revise or update any forward-looking statements, or to make any
other forward-looking statements, whether as a result of new information,
future events or otherwise. Important assumptions and other important factors
that could cause actual results to differ materially from those set forth in
the forward-looking information include a loss of a major customer,
compliance with and changes to applicable laws and regulations, access to
cost effective transportation services, access to insurance and other
financial assurances, loss of key personnel, lawsuits, adverse economic
conditions,
government funding or competitive pressures, incidents that could limit or
suspend
specific operations, implementation of new technologies, our ability to perform
under
required contracts, our willingness or ability to pay dividends and our
ability to integrate any potential acquisitions.
Investors should also be aware that while we do, from time to time,
communicate
with securities analysts, it is against our policy to disclose any material
non-public information or other confidential commercial information.
Accordingly,
stockholders should not assume that we agree with any statement or report
issued by any analyst irrespective of the content of the statement or report.
Furthermore, we have a policy against issuing or confirming financial forecasts
or projections issued by others. Thus, to the extent that reports issued by
securities analysts contain any projections, forecasts or opinions, such
reports are not the responsibility of American Ecology Corporation.
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
------------------
2008 2007
-------- --------
Revenue $ 46,219 $ 38,964
Transportation costs 22,058 17,171
Other direct operating costs 10,717 10,279
-------- --------
Gross profit 13,444 11,514
Selling, general and administrative expenses 3,919 3,599
-------- --------
Operating income 9,525 7,915
Other income (expense):
Interest income 63 211
Interest expense (1) (1)
Other 65 4
-------- --------
Total other income 127 214
Income before income taxes 9,652 8,129
Income tax expense 3,784 3,194
-------- --------
Net income $ 5,868 $ 4,935
======== ========
Earnings per share:
Basic $ 0.32 $ 0.27
Diluted $ 0.32 $ 0.27
Shares used in earnings per share calculation:
Basic 18,229 18,209
Diluted 18,277 18,253
Dividends paid per share $ 0.15 $ 0.15
======== ========
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31,
2008 December 31,
(unaudited) 2007
----------- ------------
Assets
Current Assets:
Cash and cash equivalents $ 9,365 $ 12,563
Short-term investments 999 2,209
Receivables, net 37,998 29,422
Prepaid expenses and other current assets 3,039 3,034
Income tax receivable - 994
Deferred income taxes 896 667
----------- ------------
Total current assets 52,297 48,889
Property and equipment, net 64,303 63,306
Restricted cash 4,818 4,881
----------- ------------
Total assets $ 121,418 $ 117,076
=========== ============
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 4,813 $ 4,861
Deferred revenue 4,214 4,491
Accrued liabilities 5,352 6,236
Accrued salaries and benefits 1,699 2,613
Customer advances - 31
Income tax payable 2,874 -
Current portion of closure and post-closure
obligations 1,314 803
Current portion of capital lease obligations 10 8
----------- ------------
Total current liabilities 20,276 19,043
Long-term closure and post-closure obligations 13,965 14,331
Long-term capital lease obligations 28 27
Deferred income taxes 716 577
----------- ------------
Total liabilities 34,985 33,978
Contingencies and commitments
Stockholders' Equity
Common stock 182 182
Additional paid-in capital 59,020 58,816
Retained earnings 27,231 24,100
----------- ------------
Total stockholders' equity 86,433 83,098
----------- ------------
Total liabilities and stockholders' equity $ 121,418 $ 117,076
=========== ============
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
For the Three
Months Ended
March 31,
----------------
2008 2007
------- -------
Cash Flows From Operating Activities:
Net income $ 5,868 $ 4,935
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 2,838 2,351
Deferred income taxes (90) 1,650
Stock-based compensation expense 201 143
Accretion of interest income (14) (60)
Net gain on sale of property and equipment (2) -
Changes in assets and liabilities:
Receivables (8,576) (1,432)
Income tax receivable 994 650
Other assets (5) (238)
Accounts payable and accrued liabilities (1,026) (587)
Deferred revenue (277) 57
Accrued salaries and benefits (914) (453)
Income tax payable 2,874 673
Closure and post-closure obligations (164) (119)
------- -------
Net cash provided by operating activities 1,707 7,570
Cash Flows From Investing Activities:
Purchases of property and equipment (3,464) (3,775)
Purchases of short-term investments (992) (11,943)
Maturities of short-term investments 2,216 10,364
Restricted cash 63 (61)
Proceeds from sale of property and equipment 9 -
------- -------
Net cash used in investing activities (2,168) (5,415)
Cash Flows From Financing Activities:
Dividends paid (2,737) (2,734)
Proceeds from stock option exercises 1 326
Tax benefit of common stock options 2 216
Other (3) (2)
------- -------
Net cash used in financing activities (2,737) (2,194)
Decrease in cash and cash equivalents (3,198) (39)
Cash and cash equivalents at beginning of period 12,563 3,775
------- -------
Cash and cash equivalents at end of period $ 9,365 $ 3,736
======= =======
Contact:
Alison Ziegler
Cameron Associates
(212) 554-5469
alison@cameronassoc.com
www.americanecology.com
Copyright 2008, Market Wire, All rights reserved.
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