usecol_8k-ex9902.htm

US Ecology

Acquisition of
Stablex

September 13, 2010

Jim Baumgardner

President & Chief Executive Officer

Jeff Feeler

Vice President & Chief Financial Officer

Today’s Hosts

During the course of this presentation the Company will be making forward-looking statements (as such

term is defined in the Private Securities Litigation Reform Act of 1995) that are based on our current

expectations, beliefs and assumptions about the industry and markets in which US Ecology, Inc. and its

subsidiaries operate. Because such statements include risks and uncertainties, actual results may differ

materially from what is expressed herein and no assurance can be given that the Company will meet its

2010 earnings estimates, successfully execute its growth strategy, or declare or pay future dividends.

For information on other factors that could cause actual results to differ materially from expectations,

please refer to US Ecology, Inc.’s (formally known as American Ecology Corporation) December 31, 2009

Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.

Many of the factors that will determine the Company’s future results are beyond the ability of

management to control or predict. Participants should not place undue reliance on forward-looking

statements, reflect management’s views only as of the date hereof. The Company undertakes no

obligation to revise or update any forward-looking statements, or to make any other forward-looking
statements, whether as a result of new information, future events or otherwise.

Important assumptions and other important factors that could cause actual results to differ materially
from those set forth in the forward-looking information including a loss of a major customer,
compliance with and changes to applicable laws and regulations, North American hazardous waste
market conditions, access to insurance and other financial assurances, loss of key personnel, lawsuits,
cost effective access to credit markets, the timing or level of government funding or competitive
conditions, incidents that could limit or suspend specific operations, our ability to perform under
required contracts, our willingness or ability to pay dividends and our ability to integrate the above
noted or any other business acquisition. No assurance can be given that the acquisition described
herein will close or be completed as contemplated, nor can any assurance of expected benefits of the
aforementioned acquisition be made.

Safe Harbor

4 Transaction Summary

4 Business Overview

4 Acquisition Rationale

4 Growth Strategy

4 Financial Review

Agenda

►Purchase price: $80 million Canadian dollars ($76.8M USD)1

►Purchased from: Marsulex, Inc. (TSX: MLX)

►Form of transaction: Share Purchase Agreement

► Financing: Cash on hand and bank financing

o $75 million USD [$78.2 million CAD]1 Acquisition Credit Facility

► Non-recurring closing costs: $2.25 million or $0.07 per diluted share

►Timing: Closing on October 31, 2010, subject to:

o Normal and customary Closing conditions

o Closing working capital purchase price adjustment

1Assumes a $0.96 USD to $1.00 CAD conversion rate

Transaction Summary

►Treatment and disposal facility in Blainville, Québec, Canada

►Currently owned by Marsulex, Inc. (TSX: MLX)

►Utilizes a proprietary technology (the “Stablex” process) to treat
and stabilize hazardous wastes and contaminated soils

► Stablex process consists of:

◦ Making contaminants insoluble by using a chemical treatment followed by
stabilization and solidification processes prior to disposal in landfill

◦ Creating a semi-solid material that becomes a monolith after placement in cell

►Surrounding geology is blue marine clay creating a impermeable
barrier between waste and non-potable water table

►Landfill owned by Province of Québec, leased by Stablex

►Processing facility, including land, owned by Stablex

Stablex Overview

►Opened in 1983

►Landfill located on a dedicated,
government owned 325-acre site

►Maximum gate tonnage of 875,000
metric tons over a 5-year period

◦ Remaining life of 34-40 years

►Landfill surrounded by Slurry Wall

►Disposal site selected due to its
excellent hydro-geological conditions
and the presence of a unique 25-28
meter thick bed of natural blue marine
clay

◦ Bed of marine clay affords Stablex a
natural barrier between material
placed in the engineered disposal
cells and water table

Landfill Disposal Site

►Processing Facility consists of:

◦ 7,000 sq. ft. office building and lab

◦ 74,900 sq. ft. processing facility

◦ Truck transit storage area

◦ Railroad car unloading station

►Processing plant located over a clay
retention basin, with all run-off
collected and processed

►Processing area is surrounded by a
clay slurry wall that is tied to blue
clay

Processing Facility

Rail Capabilities

►Indoor unloading of
Gondolas

►Outdoor unloading
of Intermodals

►7 rail car storage

►Under-utilized:
Could substantially
benefit from USE
expertise

Facility Rail Served

Total

} 875,000 MT over 5 years

►Maximum of 350,000
MT over 5 years

►No restrictions for
Canada / U.S. content

Soil

►875,000 MT less soil
content

► U.S. restricted to
350,000 MT with no
impact from U.S. soils

Non-Soil

Stablex Permit Limits

►Stablex serves a diverse base of
blue-chip customers in North
America

►More than 1,000 customer
relationships

►Top 10 customers accounted
for 57% of sales in 2009

Strong Customer Base

Annual Treated Volume by Type

►Over the last nine years, Stablex has consistently generated volumes in excess
of 135,000 metric tons (“MT”), with a high of 160,000 in 2006 and a low of
135,000 in 2008

►Stablex’s base business has historically accounted for 60% of total volume, on
average, over the last nine years

In recent years,
Stablex’s event
business has
generated an
increasing percentage
of total volume,
increasing from 22%
in 2004 to 41% in
2009

Base Business

►Includes ongoing
industrial process wastes
(liquids, sludges or solids)

►Stable business with a
95% customer retention
rate

Drum Business

►Includes liquid or solid wastes
packaged in 55-gallon drum
totes, and lab packs

►Stable, high-margin business
with expansion potential

Event Business

►Includes contaminated
soils and other wastes
from site remediation
projects

►Stablex has a high win
rate for relevant projects

49% of volume

39% of revenue

9% of volume

24% of revenue

42% of volume

37% of revenue

►Canada volumes average 83k MT
per year since 2001

◦ Base business - 61k MT or over
70%

►U.S. volumes average 64k MT per
year since 2001

◦ Base business - 40k MT or 64%

*Others include:

• Envirosafe of Ohio (OH)

• Heritage (IN)

• Peoria Disposal (IL)

• Waste Control Specialists (TX)

• Environmental Quality (MI)

• Pembina (Alberta)

1 Site: Stablex

5 Sites: Waste Management

7 Sites: Clean Harbors

6 Sites: Others *

22 Hazardous Waste Sites in US & Canada

Robstown,
TX

Stablex,
QC

Stablex Market Overview

►Adds physical presence in Northeast

►Improves service offering and expand penetration to national accounts

►Optimizes Event Opportunities

o Combined bids using Stablex with other USE facilities to optimize full
service disposal offering

o Broadens the remedial project bidding opportunities

►Opportunities to increase revenue and improve efficiencies

o Transportation, brokering, permit modifications

Acquisition Rationale

►2009 Revenue of CAD$38.5 million, EBITDA of CAD$9.9 million

►EPS accretion estimated beginning in 2011 and rising through
2015

►2010 earnings will be impacted by $0.07 of non-recurring
transaction and integration costs

►Continue to expect 2010 EPS of $0.57 to $0.67 ex-one time
transaction and integration costs

►Debt payments to approximate $11.2 million/year

► Interest rate at LIBOR plus margin ranging from 195 to 290bps

►Future growth drivers:

o Volume improvement & operating leverage

o Sharing know how and best practices

o Service mix optimization

o Interest expense reductions associated with debt payment

Financial Review

►Unique Asset

◦ State-of-the-art treatment process

◦ Government-owned Disposal site

► Strong Relationships

◦ Customers

◦ Regulators

►stablished Market Share

◦ Strong position in niche market

◦ Geographic location serving key USE target
market

►Stable and Growing Cash Flows

◦ Strong performance thru economic cycles

►Growth Opportunities

◦ Expanded services to new and existing
customers

◦ Consolidation opportunities

Q&A