American Ecology Third Quarter Operating Income Increases to $6.9 Million, up 168 Percent; Quarterly Revenue Increases 92 Percent on Higher Waste Receipts.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 reported net income of $7.7 million or $0.43 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 September September: see month. 30, 2005, compared to net income of $1.7 million or $0.10 per fully diluted share a year ago. Included in third quarter results is a $5.3 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain in other income associated with 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. settlement proceeds. 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 $6.9 million, a 168 percent increase over the $2.6 million in operating income posted in the third quarter of 2004. Third Quarter Results Revenue for the third quarter increased to $24.8 million, an $11.9 million or 92 percent increase from the $12.9 million in revenue recognized a year ago. The increase in revenue reflects a 71 percent increase in disposal volume and slightly lower average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. . Revenue and volume increased at all four of the Company's operating disposal sites over the same quarter last year. 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). disposal site delivered the largest increase, posting a 95 percent increase in quarterly disposal volume and an 80 percent increase in disposal revenue. "During the third quarter American Ecology continued to grow, receiving and disposing record waste volumes," 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, adding "Our focused, high-volume, low-overhead strategy is working. We are securing large clean-up clean-up n → nettoyage m clean-up clean n to give sth a clean-up → etw gründlich sauber machen clean-up n jobs, continuing to provide quality service, and retaining key customers." Increased waste volumes reflect a combination of ongoing base business, a strong spring-summer clean-up project season, initiation initiation, the transition and attendant ceremonies, such as ordeals and rites, involved in passing from one state or status to another, often from childhood to adulthood. It was among the most important social institutions of early humans. of the Honeywell project The Honeywell Project was a peace group based in Minneapolis, Minnesota that existed from the late 1960s until about 1990. During its existence the organization waged a campaign to convince the board and executives of the Honeywell Corporation to convert their weapons manufacturing and receipt of waste shipments from several large clean-up projects that were delayed in late 2004 and early 2005 by weather and other factors outside the Company's control. Waste shipments under bundled rail transportation and disposal contracts continued to result in high utilization of the Company's railcar assets, further contributing to the increased quarterly profitability. Higher revenue was slightly offset by higher transportation and other direct costs. However, the Company still increased gross profit from $5.5 million, or 43 percent of revenue, in the third quarter of 2004 to $10.0 million, or 40 percent of revenue in the third quarter of 2005. In dollars, selling, general & administrative expenses (SG&A) for the third quarter increased slightly to $3.1 million compared to SG&A of $3.0 million in the third quarter of 2004. However, SG&A dropped to 13 percent of revenue from 23 percent of revenue in the same quarter last year. The substantially increased disposal revenue drove operating income to $6.9 million, $4.3 million higher than the $2.6 million of operating income posted in the third quarter of 2004. Increased waste volumes combined with a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. service mix and controlled spending were again key drivers in the Company's financial results for the quarter. "High 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. and the largely fixed cost nature of the disposal business drove our revenue and earnings growth," stated Senior Vice President and Chief Financial Officer Jim Baumgardner, adding "All four of American Ecology's operating disposal sites were profitable for the quarter and delivered improved results over the same quarter last year." During the quarter, the Company received an $11.8 million payment from the Central Interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. 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) Compact. This payment fully resolved the Company's claim on proceeds from a settled lawsuit lawsuit: see procedure; tort. brought against the State of Nebraska Nebraska (nəbrăs`kə), Great Plains state of the central United States. It is bordered by Iowa and Missouri, across the Missouri R. (E), Kansas (S), Colorado (SW), Wyoming (NW), and South Dakota (N). for bad faith in the licensing process for a formerly proposed low-level radioactive waste disposal facility near Butte, Nebraska Butte is a village in Boyd County, Nebraska, United States. The population was 366 at the 2000 census. It is the county seat of Boyd CountyGR6. Geography Butte is located at (42.911549, -98. . The Company had previously recognized a $6.5 million deferred asset for its investment in the Nebraska project. Consequently, a pre-tax gain of $5.3 million was recognized in the third quarter as Other Income. 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 $7.7 million, or $0.43 per fully diluted share, compared to after-tax net income of $1.7 million, or $0.10 per fully diluted share a year ago. 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 nine months ended September 30, 2005 reached $56.1 million, up $15.5 million or 38 percent over the first nine months of 2004. Waste receipts year-to-date increased 33 percent over 2004, and have already exceeded total 2004 waste receipts. The volume-driven increase in revenue was partially offset by higher costs, including underutilized transportation assets in the first quarter of 2005, and certain volume-related variable costs in the second and third quarters. However, growth in revenue at all four operating disposal facilities produced operating income of $14.1 million, 44 percent higher than the $9.8 million of operating income posted for the first nine months last year. For the first nine months of 2005, the Company reported net income of $12.3 million, or $0.68 per fully diluted share, compared to net income of $20.2 million, or $1.14 per fully diluted share for the first nine months of 2004. Financial results for the first nine months of 2004 were 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. At September 30, 2005 the Company reported $23.8 million in cash and investments on hand. At quarter-end, working capital was $33.3 million, up from $19.3 million at the end of the previous quarter. Outlook "Management expects to exceed its target of 15 percent annual growth in operating income in 2005," Romano noted, concluding, "While we expect a solid fourth quarter, we have now received and disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of much of the waste from previously delayed clean-up projects." Other Updates American Ecology Corporation declared a $0.15 per common share quarterly dividend for stockholders of record on October October: see month. 3, 2005. The Company paid $2.6 million for the declared quarterly dividend on October 14, 2005. The Company presently intends that shareholders of record on January January: see month. 2, 2006 will also receive a $0.15 per share dividend subject to ongoing compliance with applicable bank covenants. Management will host an investor conference call on Wednesday Wednesday: see week. , October 19, 2005 at 10 a.m. mountain time to discuss financial results for the quarter. Chief Executive Officer Stephen Romano, Chief Financial Officer James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. Baumgardner, Vice President of Sales and Marketing Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Welling, 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 will present information and answer questions during the call. Interested parties may send questions in advance to info@americanecology.com, or by facsimile to 208-331-7900. Questions will also be invited during the call following presentations. To join the call, dial 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, American Ecology 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 meet or exceed its 2005 earnings estimates, receive projected waste shipments, continue to increase earnings through the bundling of transportation and disposal services, 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 Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
------- ------- ------- -------
Revenue $24,791 $12,929 $56,124 $40,629
Direct operating costs 14,822 7,396 33,094 22,457
------- ------- ------- -------
Gross profit 9,969 5,533 23,030 18,172
Selling, general and
administrative expenses 3,103 2,967 8,975 8,417
Business interruption insurance
claim -- -- (41) --
------- ------- ------- -------
Operating income 6,866 2,566 14,096 9,755
Interest income 164 52 342 133
Interest expense 45 48 140 146
Gain on settlement of Nebraska
litigation 5,327 -- 5,327 --
Other income (loss) (31) 9 8 74
------- ------- ------- -------
Income before income tax and
discontinued operations 12,281 2,579 19,633 9,816
Income tax (benefit) expense 4,545 884 7,335 (9,290)
------- ------- ------- -------
Income before discontinued
operations 7,736 1,695 12,298 19,106
Gain (loss) from discontinued
operations - Oak Ridge Facility -- (1) -- 1,068
------- ------- ------- -------
Net income $ 7,736 $ 1,694 $12,298 $20,174
======= ======= ======= =======
Basic earnings from continuing
operations .44 .10 .70 1.12
Basic earnings from discontinued
operations -- .00 -- .06
------- ------- ------- -------
Basic earnings per share $ .44 $ .10 $ .70 $ 1.18
======= ======= ======= =======
Diluted earnings from continuing
operations .43 .10 .68 1.08
Diluted earnings from
discontinued operations -- .00 -- .06
------- ------- ------- -------
Diluted earnings per share $ .43 $ .10 $ .68 $ 1.14
======= ======= ======= =======
Dividends paid per common share $ .15 $ -- $ .15 $ --
======= ======= ======= =======
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
($ in 000's except per share amounts)
September 30, December 31,
2005 2004
-------------- ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 2,808 $ 2,160
Short term investments 20,971 10,967
Receivables, net 15,866 8,963
Insurance receivable 636 1,285
Prepayments and other 2,311 1,469
Deferred income taxes 5,613 5,613
------- -------
Total current assets 48,205 30,457
Property and equipment, net 35,274 27,363
Facility development costs -- 6,478
Other assets 956 462
Deferred income taxes 6,595 12,473
------- -------
Total assets $91,030 $77,233
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long term debt $ 1,460 $ 1,457
Accounts payable 3,385 3,022
Deferred revenue 1,684 724
State burial fees payable 1,698 1,446
Management incentive plan payable 995 934
Customer advances 1,784 --
Customer refunds 657 2,512
Accrued liabilities 1,690 725
Accrued closure and post closure
obligation, current portion 1,577 2,323
------- -------
Total current liabilities 14,930 13,143
Long term debt 1,638 2,734
Long term customer advances 1,574 --
Long term accrued liabilities 498 441
Accrued closure and post closure
obligation, excluding current portion 9,421 9,304
------- -------
Total liabilities 28,061 25,622
------- -------
Commitments and contingencies
Shareholders' equity:
Convertible preferred stock, 1,000,000
shares authorized, Common stock,
$.01 par value, 50,000,000 authorized,
17,635,919 and 17,398,494 shares issued
and outstanding 176 174
Additional paid-in capital 52,718 51,015
Retained earnings 10,075 422
------- -------
Total shareholders' equity 62,969 51,611
------- -------
Total Liabilities and Shareholders' Equity $91,030 $77,233
======= =======
AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, $ in 000's)
Nine Months Ended
September 30,
------------------
2005 2004
-------- -------
Cash flows from operating activities:
Net income $ 12,298 $20,174
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization, and accretion 4,851 4,508
Gain on settlement of Nebraska litigation (5,327) --
Income from discontinued operations -- (1,068)
Income tax benefit on exercise of stock options 654 --
Deferred tax asset 5,878 (9,323)
Stock compensation 180 --
Changes in assets and liabilities:
Receivables (6,903) 4,268
Other assets (1,398) (152)
Closure and post closure obligation (1,440) (773)
Income taxes payable/receivable -- (226)
Accounts payable and accrued liabilities 4,161 2,016
-------- -------
Net cash provided by operating activities 12,954 19,424
Cash flows from investing activities:
Capital expenditures (12,118) (2,964)
Proceeds from sale of assets 878 116
Proceeds from settlement of Nebraska litigation 11,805 --
Transfers from cash to short term investments,
net (10,004) (4,989)
-------- -------
Net cash used by investing activities (9,439) (7,837)
Cash flows from financing activities:
Payments of indebtedness (1,093) (1,120)
Retirement of common stock warrants -- (5,500)
Dividends paid (2,645) --
Stock options exercised 871 996
-------- -------
Net cash provided (used) by financing
activities (2,867) (5,624)
-------- -------
Increase in cash and cash equivalents 648 5,963
Net cash used in discontinued operations -- (2,925)
Cash and cash equivalents at beginning of period 2,160 6,674
-------- -------
Cash and cash equivalents at end of period $ 2,808 $ 9,712
======== =======
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 140 $ 146
Income taxes paid 804 274
Non-cash investing and financing activities:
Common stock dividends accrued -- 4,345
Common stock issued for director compensation 180 --
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