American Ecology Reports Best Year-to-Date Earnings in 5 Years; Company Stays On Track With Third Consecutive Profitable Quarter.Business Editors BOISE, Idaho--(BUSINESS WIRE)--July 31, 2000 Jim Baumgardner, Senior Vice President and Chief Financial Officer of American Ecology Corporation (Nasdaq:ECOL ECOL es.comp.os.linux.* (newsgroups) ECOL Emmanuel Church of Lakewood (San Francisco, CA) ), today announced net income of $764 thousand or $.05 per basic share after preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends, for the quarter ended June 30, 2000. This compares to net income of $1.4 million or $.10 per basic share after preferred stock dividends, for the quarter ended June 30, 1999. Revenue for the second quarter increased to $10.5 million, up 18% from the same period in 1999 and 17% from the first quarter of 2000. Net income for the six months ending June 30, 2000 was $2.1 million or $.14 per basic share after preferred stock dividends compared to $1.5 million or $.10 per basic share for the same period last year. This represents the best first half year performance in five years. Revenue for the six months just ended reached $19.8 million or 10% higher than the first half of 1999. "As these results indicate, our core business continues to perform well," Baumgardner said, adding, "We also continue to exceed our internal business plan." Strong financial performances by 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 Richland, Washington Richland is a city in Benton County in southeastern Washington, at the confluence of the Yakima River and the Columbia River. As of the 2000 census, the city population was 38,708, with a 2005 population estimate of 43,520. , facilities led the way to continued profitability. Second quarter earnings were reduced by a $546 thousand reserve taken in response to a National Labor Relations Board National Labor Relations Board (NLRB), independent agency of the U.S. government created under the National Labor Relations Act of 1935 (Wagner Act), and amended by the acts of 1947 (Taft-Hartley Labor Act) and 1959 (Landrum-Griffin Act), which affirmed labor's right ("NLRB") ruling. The company has appealed the ruling. "While we believe we have a strong legal case, establishing a reserve at this time is the conservative, prudent course," Baumgardner continued. Also impacting the second quarter were higher than planned direct costs at the company's Oak Ridge Oak Ridge, city (1990 pop. 27,310), Anderson and Roane counties, E Tenn., on Black Oak Ridge and the Clinch River; founded by the U.S. government 1942, inc. as an independent city 1959. facility. "Without the higher costs at Oak Ridge and the extraordinary NLRB reserve, second quarter profitability would have exceeded first quarter results," Baumgardner stated. "We are continuing to implement our growth strategy and fully expect to grow the top and bottom line in the coming quarters," he concluded. American Ecology Corporation, through its subsidiaries, provides a variety of radioactive, 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, medical and academic institutions and petro-chemical facilities. Headquartered in 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. , the Company is the oldest radioactive and 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. services Company in the United States. 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 can successfully implement its growth strategy, generate future earnings, or 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. . For information on factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation's 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. filed with the Securities and Exchange Commission.
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
($ in 000's except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues $10,485 $8,907 $19,804 $18,086
Operating costs 5,898 4,197 10,773 9,020
-------- -------- -------- --------
Gross profit 4,587 4,710 9,031 9,066
Selling, general and
administrative expenses 4,128 4,372 7,444 8,745
Income from operations 459 338 1,587 321
Investment income 125 269 237 313
Gain on sale of assets -- 663 1 663
Other income (loss) 139 196 381 294
-------- -------- -------- --------
Net income before income taxes 723 1,466 2,206 1,591
Income tax expense (benefit) (41) 40 61 47
-------- -------- -------- --------
Net income 764 1,426 2,145 1,544
Preferred stock dividends 99 107 199 210
-------- -------- -------- --------
Net income available to
common shareholders $665 $1,319 $1,946 $1,334
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Basic earnings
per share $.05 $.10 $.14 $.10
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Diluted earnings
per share $.04 $.08 $.12 $.08
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Dividends paid
per common share $-- $-- $-- $--
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