American Ecology Second Quarter Operating Income up 56 Percent to $5.9 Million; Quarterly Revenue Increases 36 Percent.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:ECOL ECOL es.comp.os.linux.* (newsgroups) ECOL Emmanuel Church of Lakewood (San Francisco, CA) ) today reported net income of $3.7 million, or $0.21 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 for the quarter ended June June: see month. 30, 2005, compared to net income of $16 million, or $0.90 per fully diluted share a year ago. Included in last year's results are non-operating gains of $12.2 million. 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 increased to $5.9 million versus $3.8 million for the second quarter of 2004. Second Quarter Results Revenue for the second quarter increased $5.0 million, or 36 percent, from $13.8 million a year ago to $18.8 million in 2005. The increase in revenue was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a 25 percent increase in disposal volume and an eight percent increase in average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. . Revenue for all four of the Company's operating sites increased over both the same quarter last year and the first quarter of 2005. The Company's Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). site experienced the largest increase, posting a 45 percent increase in quarterly disposal volume and a like increase in revenue. "During the second quarter, a number of previously delayed clean-up clean-up n → nettoyage m clean-up clean n to give sth a clean-up → etw gründlich sauber machen clean-up n projects began shipping in earnest ear·nest 1 adj. 1. Marked by or showing deep sincerity or seriousness: an earnest gesture of goodwill. 2. Of an important or weighty nature; grave. See Synonyms at serious. ," 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. "These shipments, combined with our ongoing business, allowed us to take advantage of the largely fixed cost nature of the disposal business," he explained. Increased shipments under bundled rail transportation and disposal contracts significantly improved utilization of the Company's railcar assets, further contributing to profitability. "Our transportation and disposal price bundling strategy is proving a successful platform for growth," continued Romano, adding "Based on ongoing projects and our current sales outlook, we are confident that American Ecology will achieve 15 percent growth in 2005 operating income over 2004." The combined result of higher revenue and a relatively smaller increase in direct costs was a 45 percent increase in gross profit from $6.3 million, or 46 percent of revenue, in the second quarter of 2004 to $9.2 million, or 49 percent of revenue in the second quarter of 2005. Selling, general & administrative expenses (SG&A) for the second quarter increased to $3.4 million, or 18 percent of revenue, compared to SG&A of $2.6 million, or 19 percent of revenue in the second quarter last year. The dollar increase in SG&A was principally attributable to increased legal fees associated with the Honeywell In 1927, the Minneapolis Honeywell Regulator Company was formed as a merger of Alfred Butz' temperature control company (1885) and Mark Honeywell's water heater company (1906). In 1957, Honeywell, along with Ratheon, introduced one of the first computers in the U.S., the Datamatic 1000. contract and other legal matters, higher accounting fees associated with Sarbanes-Oxley internal controls compliance, higher director fees and expenses and a management incentive plan accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. . The increase in disposal revenue more than outweighed the increased costs, pushing operating income higher by $2.1 million to $5.9 million, compared to $3.8 million in the second quarter of 2004. "The combination of higher waste volumes and a more profitable service mix pushed our gross margin to almost 50 percent during the quarter," stated Senior Vice President and Chief Financial Officer, Jim Baumgardner, adding, "All four of the Company's operating disposal sites were profitable for the quarter, and all four showed improvement over results for the first quarter of 2005." For the quarter just ended, the Company reported after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. net income of $3.7 million, or $0.21 per fully diluted share, compared to after-tax net income of $16 million, or $0.90 per fully diluted share a year ago. Quarterly net income in 2004 was positively affected by a $920,000 one time gain on the sale of the Company's former 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. processing business and an $11.3 million release of a valuation allowance for deferred tax assets. Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Results Revenue for the six months ended June 30, 2005, reached $31.3 million, up 13 percent from the first six months of 2004. Waste volumes year-to-date increased 14 percent over 2004. This increase in revenue was substantially offset by higher costs, including underutilized transportation assets in the first quarter and volume-related variable costs in the second quarter, resulting in operating income of $7.2 million, identical to the same period last year. For the first six months of 2005, the Company reported net income of $4.6 million, or $.26 per fully diluted share, compared to net income of $18.5 million, or $1.04 per fully diluted share for the first half of 2004. At June 30, the Company reported $12.6 million in cash and investments on hand and working capital of $19.3 million. Other Updates On June 8, 2005, the Company announced the award of a contract to transport, treat 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. contaminated contaminated, v 1. made radioactive by the addition of small quantities of radioactive material. 2. made contaminated by adding infective or radiographic materials. 3. an infective surface or object. soils from a Honeywell International Inc. site in Jersey City, New Jersey. Depending on the volume of waste shipped off-site off-site adj. Taking place or located away from the site, as of a particular activity: an off-site waste treatment operation. off , which has been estimated at one million tons, and the Company's ability to successfully perform under the contract, management estimates revenue in the range of $175 to $240 million over a four to five year period. The Company began receiving initial waste shipments under this contract in July July: see month. 2005. A significant portion of the revenue derived from the Honeywell contract will include value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. transportation services. As a result, management expects that while revenue dollars will increase, the Company's gross margin relative to revenue will decrease. As previously announced, the Company may invest up to $12 million in capital expenditures to support the Honeywell contract. Management currently estimates that total capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. in 2005 may reach $20 million principally for railcars, disposal capacity expansion in Idaho, and new treatment buildings in Texas and Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). . The new treatment building in Texas is expected to be completed in the next 30-45 days, allowing for the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of full waste treatment services. On May 26, 2005 the Company declared a $0.15 per common share quarterly dividend for stockholders of record on July 1, 2005. The Company paid $2.6 million for the declared quarterly dividend on July 15, 2005. The Company intends that shareholders of record on October October: see month. 3, 2005, and January January: see month. 2, 2006, will also receive a $0.15 per share dividend, subject to ongoing compliance with applicable bank covenants. The Company's second quarter 2005 investor conference call will be held Wednesday Wednesday: see week. , July 20, 2005, at 10:00 a.m. Mountain time. President and Chief Executive Officer Stephen Romano, Senior Vice President and Chief Financial Officer Jim Baumgardner, Vice President and Controller Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Gilberg and Vice President for Sales and Marketing Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Welling 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. 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 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, having operated for more than fifty years. 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 projected waste shipments, resume full treatment services in Texas, 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 or pay 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
(Unaudited)
($ in 000's except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
-------- --------- -------- ---------
Revenue $18,779 $ 13,795 $31,333 $ 27,700
Direct operating costs 9,559 7,449 18,272 15,061
------- -------- ------- --------
Gross profit 9,220 6,346 13,061 12,639
Selling, general and
administrative expenses 3,358 2,578 5,872 5,450
Business interruption insurance
claim -- -- (41) --
------- -------- ------- --------
Operating income 5,862 3,768 7,230 7,189
Interest income 93 45 178 81
Interest expense 48 49 95 98
Other income 22 20 39 65
------- -------- ------- --------
Income before income tax and
discontinued operations 5,929 3,784 7,352 7,237
Income tax (benefit) expense 2,223 (11,338) 2,790 (10,174)
------- -------- ------- --------
Income before discontinued
operations 3,706 15,122 4,562 17,411
Gain from discontinued
operations - Oak Ridge Facility -- 920 -- 1,069
------- -------- ------- --------
Net income $ 3,706 $ 16,042 $ 4,562 $ 18,480
======= ======== ======= ========
Basic earnings from continuing
operations .21 .88 .26 1.02
Basic earnings from discontinued
operations -- .05 -- .06
------- -------- ------- --------
Basic earnings per share $ .21 $ .93 $ .26 $ 1.08
======= ======== ======= ========
Diluted earnings from continuing
operations .21 .85 .26 .98
Diluted earnings from
discontinued operations -- .05 -- .06
------- -------- ------- --------
Diluted earnings per share $ .21 $ .90 $ .26 $ 1.04
======= ======== ======= ========
Dividends paid per common share $ -- $ -- $ -- $ --
======= ======== ======= ========
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
($ in 000's except per share amounts)
June 30, Dec. 31,
2005 2004
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,685 $ 2,160
Short term investments 10,960 10,967
Receivables, net 13,636 8,963
Insurance receivable 636 1,285
Prepayments and other 2,616 1,469
Deferred income taxes 5,613 5,613
-------- --------
Total current assets 35,146 30,457
Property and equipment, net 32,008 27,363
Facility development costs 6,478 6,478
Other assets 1,136 462
Deferred income taxes 10,338 12,473
-------- --------
Total assets $ 85,106 $ 77,233
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long term debt $ 1,459 $ 1,457
Accounts payable 3,176 3,022
Dividends payable 2,645 --
Deferred revenue 1,248 724
State burial fees payable 1,541 1,446
Management incentive plan payable 630 934
Customer advances 1,364 --
Customer refunds -- 2,512
Accrued liabilities 1,443 725
Accrued closure and post closure obligation,
current portion 2,323 2,323
-------- --------
Total current liabilities 15,829 13,143
Long term debt 2,004 2,734
Long term customer advances 2,136 --
Long term accrued liabilities 522 441
Accrued closure and post closure obligation,
excluding current portion 9,385 9,304
-------- --------
Total liabilities 29,876 25,622
-------- --------
Commitments and contingencies
Shareholders' equity:
Convertible preferred stock, 1,000,000
shares authorized,
Common stock, $.01 par value, 50,000,000
authorized, 17,635,709 and 17,398,494
shares issued and outstanding 176 174
Additional paid-in capital 52,715 51,015
Retained earnings 2,339 422
-------- --------
Total shareholders' equity 55,230 51,611
-------- --------
Total Liabilities and Shareholders' Equity $ 85,106 $ 77,233
======== ========
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
($ in 000's except per share amounts)
Six Months Ended
June 30,
------------------
2005 2004
------- --------
Cash flows from operating activities:
Net income $ 4,562 $ 18,480
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization, and accretion 3,066 3,029
Income from discontinued operations -- (1,069)
Income tax benefit on exercise of stock options 652 --
Deferred tax asset 2,135 (10,171)
Stock compensation 180 --
Changes in assets and liabilities:
Receivables (4,673) 3,059
Other assets (1,874) (685)
Closure and post closure obligation (460) (382)
Income taxes payable/receivable -- (201)
Accounts payable and accrued liabilities 2,256 1,494
------- --------
Net cash provided by operating activities 5,844 13,554
Cash flows from investing activities:
Capital expenditures (7,217) (2,394)
Proceeds from sale of assets 749 106
Transfers from cash to short term investments, net 7 (6,398)
------- --------
Net cash used by investing activities (6,461) (8,686)
Cash flows from financing activities:
Payments of indebtedness (728) (758)
Retirement of common stock warrants -- (5,500)
Stock options exercised 870 511
------- --------
Net cash provided (used) by financing activities 142 (5,747)
------- --------
Increase (decrease) in cash and cash equivalents (475) (879)
Net cash used in discontinued operations -- (2,594)
Cash and cash equivalents at beginning of period 2,160 6,674
------- --------
Cash and cash equivalents at end of period $ 1,685 $ 3,201
======= ========
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 95 $ 98
Income taxes paid 4 201
Non-cash investing and financing activities:
Common stock dividends accrued 2,645 --
Common stock issued for director compensation 180 --
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion