American Ecology Posts Operating Income of $1.4 Million in First Quarter.BOISE, Idaho “Boise” redirects here. For other uses, see Boise (disambiguation). Boise is the capital and most populous city of the U.S. state of Idaho. It is the county seat of Ada County and the principal city of the Boise metropolitan area. -- American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Ecology ecology, study of the relationships of organisms to their physical environment and to one another. The study of an individual organism or a single species is termed autecology; the study of groups of organisms is called synecology. Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ECOL ECOL es.comp.os.linux.* (newsgroups) ECOL Emmanuel Church of Lakewood (San Francisco, CA) ) today announced financial results for the quarter ending March 31, 2005. For the quarter, the Company reported net income of $856,000 or $0.05 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income of $2.4 million, or $0.14 per fully diluted share a year ago. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $1.4 million for the quarter versus $3.4 million for the first quarter of 2004. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]Revenue for the first quarter of 2005 was $12.6 million, compared to $13.9 million a year ago. This decrease in revenue was primarily due to slightly lower average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. and decreased transportation revenue. While waste volumes at the Company's three hazardous waste Hazardous waste Any solid, liquid, or gaseous waste materials that, if improperly managed or disposed of, may pose substantial hazards to human health and the environment. Every industrial country in the world has had problems with managing hazardous wastes. sites remained relatively flat, higher operating costs operating costs npl → gastos mpl operacionales were incurred in anticipation of waste shipments from contracts that were delayed due to weather, funding or other project-specific delays. Additionally, treatment revenue at the Company's Texas facility was down quarter to quarter pending availability of the new treatment building now under construction. Revenue at the Company's low-level radioactive waste Noun 1. low-level radioactive waste - (medicine) radioactive waste consisting of objects that have been briefly exposed to radioactivity (as in certain medical tests) disposal facility in Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. also declined due to lower rate-regulated waste volumes for the quarter. The Company also incurred transportation-related expenses in the quarter just ended to secure preferred long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. access to two east coast rail transfer facilities to better compete for large remediation projects. E[acute accent]"Confirming what we disclosed last month, first quarter results were lower than planned due to delayed shipments but the Company did not lose any major forecasted projects," stated Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and Romano Ro·ma·no n. A hard, sharp, dry cheese of Italian origin that is made from cow's milk and usually served grated as a garnish. [Italian, short for (pecorino) romano, Roman (sheep's milk cheese) , President and Chief Executive Officer. "While the costs of a temporarily underutilized rail fleet and securing east coast rail transfer points negatively affected first quarter results, we are well positioned to execute our growth strategy based on bundling of transportation and disposal services to increase waste volume throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. at our operating facilities," he added. E[acute accent]All of the delayed first quarter 2005 projects are either shipping or expected to ship in the second quarter and the Company reaffirms its previous earnings guidance for the year. "We expect to receive and dispose of dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. the delayed waste shipments during the balance of 2005 and continue to project 15% growth in operating income for the year," Romano commented. E[acute accent]Direct costs for the quarter increased to $8.7 million from $7.6 million in the first quarter of 2004. Higher direct costs reflected increased labor, transportation and waste treatment additive additive In foods, any of various chemical substances added to produce desirable effects. Additives include such substances as artificial or natural colourings and flavourings; stabilizers, emulsifiers, and thickeners; preservatives and humectants (moisture-retainers); and costs at the Company's Beatty, Nevada Beatty is a census-designated place and town located on the Amargosa River in Nye County in the U.S. state of Nevada. The population was 1,154 at the 2000 census. Wired telephone service numbers for the Beatty central office follow the format: (775) 553-xxxx. and Grand View, Idaho Grand View is a city in Owyhee County, Idaho, United States. The population was 470 at the 2000 census. Geography Grand View is located at (42.984803, -116.093277)GR1. hazardous waste facilities. Higher transportation costs reflect fuel surcharges, an expanded railcar fleet, increased railcar operating lease Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. expenses, and mobilization mobilization Organization of a nation's armed forces for active military service in time of war or other national emergency. It includes recruiting and training, building military bases and training camps, and procuring and distributing weapons, ammunition, uniforms, costs incurred in anticipation of the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. large remediation projects now underway. Only a portion of these expenses could be passed on to customers. E[acute accent]The combined result of lower revenue and higher direct costs was a 39% decrease in gross profit from $6.3 million (45% of revenue) in the first quarter of 2004 to $3.8 million (31% of revenue) in the first quarter of 2005. E[acute accent]Selling, general & administrative expenses (SG&A) for the first quarter decreased to $2.5 million, or 20% of revenue, compared to SG&A of $2.9 million or 21% of revenue in the first quarter last year. SG&A expenses dropped despite the $105,000 spent in the first quarter of 2005 to comply with Sarbanes-Oxley Section 404 Internal Control requirements. E[acute accent]Reduced revenue and higher direct costs outweighed reductions in SG&A, lowering operating income by $2.0 million to $1.4 million, below the $3.4 million in operating income posted in the first quarter of 2004. E[acute accent]"Despite the lower quarterly operating income, cash flow remained solid and the Company's financial condition continues to be strong," stated Jim Baumgardner, Senior Vice President and Chief Financial Officer. E[acute accent]At quarter end, the Company had $13.2 million of cash and investments on hand and working capital of $17.2 million. E[acute accent]Management and Moss Adams Moss Adams LLP is the 12th largest public accounting firm in the United States and provides accounting, tax and consulting services to public and private middle-market enterprises in many different industries. LLP LLP - Lower Layer Protocol , the Company's independent registered public accounting firm, have concluded that the Company's internal controls over financial reporting were effective at December December: see month. 31, 2004 and will report no material weaknesses. The Company will file an Amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Form 10K with the Securities and Exchange Commission on or prior to May 2, 2005 with the required internal control opinions. E[acute accent]The Company's first quarter 2005 investor conference call will be held Wednesday, April 20, 2005 at 10:00 am Mountain Time. President and Chief Executive Officer Stephen Romano, Senior Vice President and Chief Financial Officer Jim Baumgardner, and Vice President and Controller Michael Gilberg will host the call. Interested parties are invited to submit questions in advance to info@americanecology.com, or by facsimile to 208-331-7900. To join the call, dial 1-877-331-8343. Participants will be asked to provide their name and affiliation. E[acute accent]American Ecology Corporation, through its subsidiaries, provides radioactive ra·di·o·ac·tive adj. Of or exhibiting radioactivity. radioactive characterized by radioactivity. radioactive decay , PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. , hazardous and non-hazardous waste services to commercial and government customers throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , such as nuclear power plants, steel mills, medical and academic institutions, refineries and chemical manufacturing facilities. Headquartered in Boise, Idaho, the Company is the oldest radioactive and hazardous waste services company in the United States, having operated for more than fifty years. E[acute accent]This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are based on our current expectations, beliefs, and assumptions about the industry and markets in which American Ecology Corporation and its subsidiaries operate. Actual results may differ materially from what is expressed herein and no assurance can be given that the Company will successfully meet its 2005 earnings estimates, receive all projected waste shipments, increase earnings through the bundling of transportation and disposal services, prevail in pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , collect on pending insurance claims, or declare future dividends. For information on other factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation's most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission.
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in 000's except per share amounts) (Unaudited)
Three Months
Ended
March March
31, 31,
2005 2004
----------------
Revenue $12,554 $13,905
Direct operating costs 8,713 7,612
------- --------
Gross profit 3,841 6,293
Selling, general and administrative expenses 2,514 2,872
Business interruption insurance claim (41) --
------- --------
Income from operations 1,368 3,421
Interest income 85 36
Interest expense 47 49
Other income 17 45
------- --------
Income before income tax and discontinued operations 1,423 3,453
Income tax expense 567 1,164
------- --------
Income before discontinued operations 856 2,289
Income from discontinued operations (net of tax of $0) -- 149
------- --------
Net income $856 $2,438
======= ========
Basic earnings from continuing operations .05 .13
Basic earnings from discontinued operations -- .01
------- --------
Basic earnings per share $.05 $.14
======= ========
Diluted earnings from continuing operations .05 .13
Diluted earnings from discontinued operations -- .01
------- --------
Diluted earnings per share $.05 $.14
======= ========
Dividends paid per common share $-- $--
======= ========
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
($ in 000's) (Unaudited)
March December
31, 31,
2005 2004
------- -------
ASSETS
Current Assets:
Cash and cash equivalents $2,920 $2,160
Short term investments 10,323 10,967
Receivables, net 8,742 8,963
Insurance receivable 1,161 1,285
Prepayments and other 1,077 1,469
Deferred income taxes 5,613 5,613
-------- -------
Total current assets 29,836 30,457
Property and equipment, net 28,735 27,363
Facility development costs 6,478 6,478
Other assets 462 462
Deferred income taxes 12,041 12,473
-------- -------
Total assets $77,552 $77,233
======== =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long term debt $1,458 $1,457
Accounts payable 2,556 3,022
Deferred revenue 1,296 724
State burial fees payable 1,112 1,446
Management incentive plan payable 89 934
Customer refunds 2,512 2,512
Accrued liabilities 1,251 725
Accrued closure and post closure obligation, current
portion 2,323 2,323
-------- -------
Total current liabilities 12,597 13,143
Long term debt 2,369 2,734
Long term accrued liabilities 523 441
Accrued closure and post closure obligation, excluding
current portion 9,314 9,304
-------- -------
Total liabilities 24,803 25,622
-------- -------
Commitments and contingencies
Shareholders' equity:
Convertible preferred stock, 1,000,000 shares
authorized,
Common stock, $.01 par value,
50,000,000 authorized, 17,441,294
and 17,398,494 shares issued and outstanding 174 174
Additional paid-in capital 51,297 51,015
Retained earnings (deficit) 1,278 422
-------- -------
Total shareholders' equity 52,749 51,611
-------- -------
Total Liabilities and Shareholders' Equity $77,552 $77,233
======== =======
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in 000's) (Unaudited)
Three Months
Ended
March 31,
2005 2004
------- -------
Cash flows from operating activities:
Net income $856 $2,438
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization, and accretion 1,376 1,488
Income from discontinued operations -- (149)
Income tax benefit on exercise of stock options 130 --
Deferred income taxes 432 --
Changes in assets and liabilities:
Receivables 221 4,020
Other assets 345 173
Closure and post closure obligation (260) (148)
Income taxes payable/receivable -- 1,115
Accounts payable and accrued liabilities (465) 1,699
------- -------
Net cash provided by operating activities 2,635 10,636
Cash flows from investing activities:
Capital expenditures (2,529) (513)
Proceeds from the sale of assets 222 110
Transfers between cash and short term investments,
net 644 39
------- -------
Net cash used by investing activities (1,663) (364)
Cash flows from financing activities:
Payments of indebtedness (364) (366)
Warrants purchased and canceled -- (5,500)
Stock options and warrants exercised 152 359
------- -------
Net cash used by financing activities (212) (5,507)
------- -------
Increase in cash and cash equivalents 760 4,765
Net cash used by discontinued operations -- (668)
Cash and cash equivalents at beginning of year 2,160 6,674
------- -------
Cash and cash equivalents at end of quarter $2,920 $10,771
======= =======
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest expense $47 $49
Income taxes paid 4 50
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