American Ecology Sells Texas Municipal Waste Landfill to Allied Waste for $10 Million, Future Royalties.Business Editors BOISE, Idaho--(BUSINESS WIRE)--Feb. 13, 2003 Company Retains Ownership of Texas Ecologists Hazardous Waste Disposal Site Stephen Romano, President and Chief Executive Officer of American Ecology Corporation (Nasdaq:ECOL ECOL es.comp.os.linux.* (newsgroups) ECOL Emmanuel Church of Lakewood (San Francisco, CA) ), today announced the sale of the Company's El Centro El Centro (ĕl sĕn`trō), city (1990 pop. 31,384), seat of Imperial co., SE Calif., near the Mexican border; inc. 1908. It is a processing and shipping center for a heavily irrigated agricultural region (vegetables, grain, cotton, municipal and industrial waste landfill located near Corpus Christi, Texas Corpus Christi is a coastal city and the county seat of Nueces CountyGR6 in the U.S. state of Texas. It is part of the region known as South Texas. , to a subsidiary of Allied Waste Industries, Inc. ("Allied") for $10 million cash at closing and future volume-based royalty payments. "Monetizing this non-core asset provides capital for continued expansion of our core hazardous, industrial and 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 business and allows us the opportunity to improve our capital structure," Romano stated. "Allied is well positioned to grow El Centro revenue and earnings through integration with its substantial existing municipal waste collection operation, so this is a good deal for both companies," Romano added. Under the Agreement, the purchase agreement also provides incentives for Allied to bring certain industrial waste to the Texas Ecologists 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, and for the Company to utilize the El Centro landfill. Opened in July 2002, the El Centro solid waste landfill was carried on the Company's books at approximately $7 million prior to sale. When combined with a reduction in liabilities and recognition of certain future minimum royalties, the sale should result in a pre-tax gain on sale of approximately $5 million to be recognized during the first quarter of 2003. "While we are no longer in the municipal waste business, the Company will remain an active member of the local community through our Texas Ecologists hazardous waste facility," Romano noted, concluding "We look forward to focusing future efforts on growth of our core business." Conference Call The fourth quarter and 2002 full year investor conference call will be held Thursday, February 20, 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 1-877-679-9055. Participants will be asked to provide their name and affiliation prior to joining the call. American Ecology Corporation, through its subsidiaries, provides radioactive, 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. , American Ecology 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 core business growth strategy, generate future earnings, record a $5 million pre-tax gain on the sale, or realize all possible royalty payments under the El Centro sale agreement. For information on factors that could cause actual results to differ from expectations and financial information regarding the classification of the El Centro assets, 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. , which will be filed with the Securities and Exchange Commission on February 18, 2003. |
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