American Ecology Returns to Profitability in Fourth Quarter; Profitable for Year; Fourth Quarter Earnings a $1.4 Million Improvement Over Third Quarter Loss.Business Editors BOISE, Idaho--(BUSINESS WIRE)--Feb. 25, 2002 Jim Baumgardner, Senior Vice President, Chief Financial Officer and Treasurer of American 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:ECOL ECOL es.comp.os.linux.* (newsgroups) ECOL Emmanuel Church of Lakewood (San Francisco, CA) ), today announced that for the twelve months ending December 31, 2001, the Company posted net income of $802,000, or $.03 per basic share, compared to net income of $4.7 million, or $.31 per basic share for the year ending December 31, 2000. Revenue for the year increased 33% to $56 million in 2001 from $42 million in 2000, principally driven by the Company's successful acquisition of the 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 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. facility in February 2001. 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. for the quarter ending December 31, 2001 slipped to $10,000 compared to operating income of $860,000 for the same quarter of 2000. Likewise, operating income for the full year in 2001 dropped to $234,000 compared to $3.5 million posted during 2000. The Company posted net income of $207,000, or $.01 per basic share, for the quarter ending December 31, 2001 compared to net income of $1.5 million or $.10 per basic share for the same quarter of 2000. Impacting the quarter were one-time expenses associated with a change in management and associated restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the company totaling approximately $250,000, and a $300,000 reserve taken for a pending legal matter. Revenue for the most recent quarter increased 44% to $15 million from $10.4 million in 2000, primarily due to the acquisition of the Idaho facility. "American Ecology's return to profitability in the fourth quarter is a significant improvement over the loss posted in the third quarter of 2001," Baumgardner stated. The Company posted a net loss of $1.2 million in the third quarter of 2001. In October and November 2001, the Company announced changes in executive management and the Company's Board of Directors. The Company promptly implemented a revised business plan that initially focused on cutting overhead and streamlining operations. Management reduced headcount by almost 10%, almost exclusively in overhead, that is expected to save the Company over $2.4 million annually going forward. Concurrently, management divested certain non-core business assets and eliminated the prior division president management structure. Lastly, management fundamentally changed the manner in which it markets its services through the creation of a national sales structure and the appointment of a National Sales and Marketing Director. This change in sales and marketing of waste services combined with aggressive, volume-oriented pricing was implemented to materially increase waste 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 the Company's disposal facilities. While fourth quarter 2001 financial results reflect significant improvement over the previous quarter, earnings were depressed by continued operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. at the Company's Oak Ridge, Tennessee Oak Ridge is an incorporated city in Anderson and Roane Counties in East Tennessee, about 25 miles northwest of Knoxville. Oak Ridge's population was 27,387 people at the 2000 census. 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) processing facility. "Past pricing decisions and direct expenses associated with processing and disposal of non-revenue producing wastes at the site contributed to the disappointing 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. results," Baumgardner explained. "In response to these challenges, a new General Manager was appointed, overhead costs overhead costs see fixed costs. were reduced, efforts were accelerated to remove non-revenue producing materials, and new pricing guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. were implemented," explained American Ecology President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. Stephen A. Romano. The Company also sold its Oak Ridge-based low-level radioactive waste brokerage business and Nuclear Equipment Service Center in the fourth quarter of 2001 for a combined $900,000 in cash and other considerations. The Company's disposal operations continued to financially perform well, most notably at the Company's newly acquired Grand View, Idaho hazardous and exempt-level radioactive waste radioactive waste, material containing the unusable radioactive byproducts of the scientific, military, and industrial applications of nuclear energy. Since its radioactivity presents a serious health hazard (see radiation sickness), disposing of such material is a disposal facility. "The Grand View disposal facility was our shining star in 2001," Romano noted. "Disposal operations in Texas, Washington, and Nevada also made meaningful contributions to profitability during the fourth quarter and for the year," he explained, adding, "We expect our new national sales structure to drive improved performance at all four disposal sites." "Despite substantial losses at Oak Ridge and a major reorganization, we remained profitable in 2001. Our 2002 plan calls for increased earnings and cash flow, allowing us to repay debt and invest in our core waste treatment and disposal business," Baumgardner noted, concluding, "2002 is a pivotal year for American Ecology, as we fully implement an aggressive business strategy designed to produce substantial revenue and earnings growth." The fourth quarter and 2001 investor conference call will be held Monday, February 25, 2002 at 10:00 am Mountain Time. Interested parties may submit questions in advance to info@americanecology.com, or by facsimile at 208/331-7900. To join the call, dial 877/679-9055. Participants will be asked to provide their name and affiliation prior to joining the call. 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 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 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 improved earnings, achieve profitability at its Oak Ridge facility 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 Annual Report 10-K and Quarterly Reports 10-Q 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 Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
-----------------------------------------
Revenue $ 15,523 $ 10,358 $ 56,016 $ 41,958
Direct operating costs 9,930 4,505 33,502 21,832
-------- -------- -------- --------
Gross profit 5,593 5,853 22,514 20,126
Selling, general
and administrative
expenses 5,583 4,993 22,280 16,665
-------- -------- -------- --------
Income from operations 10 860 234 3,461
Investment income 38 292 269 435
Gain on sale of assets 617 48 779 92
Interest expense (224) (101) (1,122) (350)
Other income (expense) (162) 66 828 841
-------- -------- -------- --------
Income before income
taxes and extraordinary
item 279 1,165 988 4,479
Income tax expense
(benefit) 72 (81) 186 (12)
-------- -------- -------- --------
Income before
extraordinary item 207 1,246 802 4,491
Extraordinary gain --
early extinguishments
of debt -- 206 -- 206
-------- -------- -------- --------
Net income 207 1,452 802 4,697
-------- -------- -------- --------
Preferred stock dividends 99 99 398 398
-------- -------- -------- --------
Net income available to
common shareholders $ 108 $ 1,353 $ 404 $ 4,299
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Basic earnings per share $ .01 $ .10 $ .03 $ .31
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Diluted earnings per share $ .01 $ .08 $ .03 $ .26
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Dividends paid per
common share $ -- $ -- $ -- $ --
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