10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

xQUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

or

oTRANSITION REPORT PURSUANT TO Section 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                        to                     .

Commission file number: 0000-11688

US ECOLOGY, INC.

(Exact name of registrant as specified in its charter)

Delaware	95-3889638
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
300 E. Mallard Dr., Suite 300
Boise, Idaho	83706
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (208) 331-8400

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer x
Non-accelerated filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

At April 26, 2013, there were 18,410,349 shares of the registrant’s Common Stock outstanding.

EXPLANATORY NOTE

This Amendment No. 1 on Form 10-Q/A is being filed for the purpose of amending the number of shares outstanding on the cover page to our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2013, which was filed with the Securities and Exchange Commission on April 30, 2013 (the “Original Form 10-Q”). Items included in the Original Form 10-Q that are not amended by this Form 10-Q/A remain in effect as of the date of filing of the Original Form 10-Q.

2

PART II - OTHER INFORMATION

ITEM 6.EXHIBITS

31.1	Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
101	The following materials from the quarterly report on Form 10-Q of US Ecology, Inc. for the quarter ended March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) Unaudited Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Operations, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Cash Flows, and (v) Notes to the Unaudited Consolidated Financial Statements

3

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	US Ecology, Inc.
	(Registrant)
Date: May 1, 2013	/s/ Eric L. Gerratt
	Eric L. Gerratt
	Vice President, Chief Financial Officer, Treasurer and
	Chief Accounting Officer

4

EX-31.1

EXHIBIT 31.1

US ECOLOGY, INC.

CERTIFICATIONS PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, Jeffrey R. Feeler, certify that:

1.I have reviewed this quarterly report on Form 10-Q/A of US Ecology, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Date:  May 1, 2013	/s/ Jeffrey R. Feeler
	Jeffrey R. Feeler
	President and Chief Operating Officer

EX-31.2

EXHIBIT 31.2

US ECOLOGY, INC.

CERTIFICATIONS PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, Eric L. Gerratt, certify that:

1.I have reviewed this quarterly report on Form 10-Q/A of US Ecology, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Date: May 1, 2013	/s/ Eric L. Gerratt
	Eric L. Gerratt
	Vice President, Chief Financial Officer, Treasurer and
	Chief Accounting Officer

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INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
INCOME TAXES
Effective tax rate (as a percent)	37.10%	39.10%

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RECEIVABLES (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
RECEIVABLES
Trade	$ 30,544	$ 32,787
Unbilled revenue	1,431	1,529
Other	646	99
Total receivables	32,621	34,415
Allowance for doubtful accounts	(367)	(468)
Receivables, net	$ 32,254	$ 33,947

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PROPERTY AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2013

PROPERTY AND EQUIPMENT

Schedule of property and equipment

	March 31,			December 31,
$s in thousands	2013			2012
Cell development costs	$	64,905		$	64,994
Land and improvements	18,152			14,920
Buildings and improvements	55,960			55,177
Railcars	17,375			17,375
Vehicles and other equipment	40,129			39,689
Construction in progress	14,345			12,454
Total property and equipment	210,866			204,609
Accumulated depreciation and amortization	(97,547		)	(94,817		)
Property and equipment, net	$	113,319		$	109,792

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EQUITY (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
EQUITY
Number of options exercised (in shares)	58,365
Exercise price of options exercised (in dollars per share)	$ 17.97
Issuance of restricted stock from treasury stock (in shares)	37,700
Average cost (in dollars per share)	$ 16.68

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DEBT (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
DEBT
Maximum borrowing capacity	$ 95.0
Revolving Line of Credit
DEBT
Maximum borrowing capacity	20.0
Effective interest rate (as a percent)	1.45%
Amount outstanding	0
Availability for additional borrowings under line of credit	16.0
Line of credit issued in the form of a standby letter of credit	4.0
Reducing Revolving Line of Credit
DEBT
Maximum borrowing capacity	75.0
Reduction in commitment amount for each quarter	2.8
Effective interest rate (as a percent)	1.45%
Amount outstanding	41.0
Availability for additional borrowings under line of credit	$ 31.2

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CONCENTRATIONS AND CREDIT RISK

3 Months Ended

Mar. 31, 2013

CONCENTRATIONS AND CREDIT RISK

CONCENTRATIONS AND CREDIT RISK

NOTE 3. CONCENTRATIONS AND CREDIT RISK

Major Customers

No customer accounted for more than 10% of total revenue for the three months ended March 31, 2013 or 2012. No customer accounted for more than 10% of total trade receivables as of March 31, 2013 or December 31, 2012.

Credit Risk Concentration

We maintain most of our cash with nationally recognized financial institutions like Wells Fargo Bank, National Association (“Wells Fargo”). Substantially all balances are uninsured and are not used as collateral for other obligations. Concentrations of credit risk on accounts receivable are believed to be limited due to the number, diversification and character of the obligors and our credit evaluation process.

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OPERATING SEGMENTS (Details) (USD $)	3 Months Ended
	Mar. 31, 2013 segment	Mar. 31, 2012	Dec. 31, 2012
OPERATING SEGMENTS
Number of reportable segments	2
OPERATING SEGMENTS
Revenue	$ 42,899,000	$ 33,013,000
Direct operating costs	21,084,000	17,638,000
Transportation costs	6,433,000	3,299,000
Gross profit	15,382,000	12,076,000
Selling, general & administrative expenses	5,726,000	5,605,000
Operating income	9,656,000	6,471,000
Interest income (expense), net	(216,000)	(219,000)
Foreign currency gain (loss)	(938,000)	1,091,000
Other income	97,000	80,000
Income before income taxes	8,599,000	7,423,000
Income tax expense	3,193,000	2,900,000
Net income	5,406,000	4,523,000
Depreciation, amortization & accretion	4,113,000	3,908,000
Capital expenditures	6,752,000	2,386,000
Total assets	219,946,000	197,727,000	218,694,000
Treatment and disposal
OPERATING SEGMENTS
Revenue	36,344,000	29,949,000
Transportation services
OPERATING SEGMENTS
Revenue	6,555,000	3,064,000
Operating Disposal Facilities
OPERATING SEGMENTS
Revenue	42,895,000	33,009,000
Direct operating costs	21,031,000	17,583,000
Transportation costs	6,433,000	3,299,000
Gross profit	15,431,000	12,127,000
Selling, general & administrative expenses	2,646,000	2,521,000
Operating income	12,785,000	9,606,000
Interest income (expense), net	4,000	5,000
Foreign currency gain (loss)	112,000	(99,000)
Other income	95,000	80,000
Income before income taxes	12,996,000	9,592,000
Net income	12,996,000	9,592,000
Depreciation, amortization & accretion	4,051,000	3,844,000
Capital expenditures	6,726,000	2,360,000
Total assets	211,620,000	188,646,000
Operating Disposal Facilities | Treatment and disposal
OPERATING SEGMENTS
Revenue	36,340,000	29,945,000
Operating Disposal Facilities | Transportation services
OPERATING SEGMENTS
Revenue	6,555,000	3,064,000
Non-Operating Disposal Facilities
OPERATING SEGMENTS
Revenue	4,000	4,000
Direct operating costs	53,000	55,000
Gross profit	(49,000)	(51,000)
Operating income	(49,000)	(51,000)
Other income	2,000
Income before income taxes	(47,000)	(51,000)
Net income	(47,000)	(51,000)
Depreciation, amortization & accretion	52,000	54,000
Capital expenditures		17,000
Total assets	86,000	95,000
Non-Operating Disposal Facilities | Treatment and disposal
OPERATING SEGMENTS
Revenue	4,000	4,000
Corporate
OPERATING SEGMENTS
Selling, general & administrative expenses	3,080,000	3,084,000
Operating income	(3,080,000)	(3,084,000)
Interest income (expense), net	(220,000)	(224,000)
Foreign currency gain (loss)	(1,050,000)	1,190,000
Income before income taxes	(4,350,000)	(2,118,000)
Income tax expense	3,193,000	2,900,000
Net income	(7,543,000)	(5,018,000)
Depreciation, amortization & accretion	10,000	10,000
Capital expenditures	26,000	9,000
Total assets	$ 8,240,000	$ 8,986,000

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EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2013

EARNINGS PER SHARE

Schedule of earnings per share

	Three Months Ended March 31,
$s and shares in thousands, except per share	2013				2012
amounts	Basic		Diluted		Basic		Diluted
Net income	$	5,406	$	5,406	$	4,523	$	4,523
Weighted average basic shares outstanding	18,320		18,320		18,218		18,218
Dilutive effect of stock options and restricted stock			87				36
Weighted average diluted shares outstanding			18,407				18,254
Earnings per share	$	0.30	$	0.29	$	0.25	$	0.25
Anti-dilutive shares excluded from calculation			221				317

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CLOSURE AND POST-CLOSURE OBLIGATIONS (Tables)

3 Months Ended

Mar. 31, 2013

CLOSURE AND POST-CLOSURE OBLIGATIONS

Schedule of changes in closure and post-closure obligations

	Three Months Ended
$s in thousands	March 31, 2013
Closure and post-closure obligations, beginning of period	$	17,362
Accretion expense	307
Payments	(1,043		)
Currency translation	(40		)
Closure and post-closure obligations, end of period	16,586
Less current portion	(978		)
Long-term portion	$	15,608

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OPERATING SEGMENTS (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Revenue, Property and Equipment and Intangible Assets Outside of the United States
Total revenue	$ 42,899	$ 33,013
Total long- lived assets	152,855		150,563
United States
Revenue, Property and Equipment and Intangible Assets Outside of the United States
Total revenue	31,398	24,599
Total long- lived assets	85,080		81,605
Canada
Revenue, Property and Equipment and Intangible Assets Outside of the United States
Total revenue	11,501	8,414
Total long- lived assets	$ 67,775		$ 68,958

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OPERATING SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2013

OPERATING SEGMENTS

Summary of financial information concerning reportable segments

Three Months Ended March 31, 2013 (in thousands)	Operating Disposal Facilities		Non- Operating Disposal Facilities			Corporate			Total
Revenue - Treatment and disposal	$	36,340	$	4		$	—		$	36,344
Revenue - Transportation services	6,555		—			—			6,555
Total revenue	42,895		4			—			42,899
Direct operating costs	21,031		53			—			21,084
Transportation costs	6,433		—			—			6,433
Gross profit (loss)	15,431		(49		)	—			15,382
Selling, general & administrative expense	2,646		—			3,080			5,726
Operating income (loss)	12,785		(49		)	(3,080		)	9,656
Interest income (expense), net	4		—			(220		)	(216		)
Foreign currency gain (loss)	112		—			(1,050		)	(938		)
Other income	95		2			—			97
Income (loss) before income taxes	12,996		(47		)	(4,350		)	8,599
Income tax expense	—		—			3,193			3,193
Net income (loss)	$	12,996	$	(47	)	$	(7,543	)	$	5,406
Depreciation, amortization & accretion	$	4,051	$	52		$	10		$	4,113
Capital expenditures	$	6,726	$	—		$	26		$	6,752
Total assets	$	211,620	$	86		$	8,240		$	219,946

Three Months Ended March 31, 2012 (in thousands)	Operating Disposal Facilities			Non- Operating Disposal Facilities			Corporate			Total
Revenue - Treatment and disposal	$	29,945		$	4		$	—		$	29,949
Revenue - Transportation services	3,064			—			—			3,064
Total revenue	33,009			4			—			33,013
Direct operating costs	17,583			55			—			17,638
Transportation costs	3,299			—			—			3,299
Gross profit (loss)	12,127			(51		)	—			12,076
Selling, general & administrative expense	2,521			—			3,084			5,605
Operating income (loss)	9,606			(51		)	(3,084		)	6,471
Interest income (expense), net	5			—			(224		)	(219		)
Foreign currency gain (loss)	(99		)	—			1,190			1,091
Other income	80			—			—			80
Income (loss) before income taxes	9,592			(51		)	(2,118		)	7,423
Income tax expense	—			—			2,900			2,900
Net income (loss)	$	9,592		$	(51	)	$	(5,018	)	$	4,523
Depreciation, amortization & accretion	$	3,844		$	54		$	10		$	3,908
Capital expenditures	$	2,360		$	17		$	9		$	2,386
Total assets	$	188,646		$	95		$	8,986		$	197,727

Summary of revenues by geographic location

	Three Months Ended March 31,
$s in thousands	2013		2012
United States	$	31,398	$	24,599
Canada	11,501		8,414
Total revenue	$	42,899	$	33,013

Schedule of long-lived assets by geographic location

	March 31,		December 31,
$s in thousands	2013		2012
United States	$	85,080	$	81,605
Canada	67,775		68,958
Total long-lived assets	$	152,855	$	150,563

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period	$ 628	$ (117)
Foreign currency translation gain (loss) in other comprehensive income	(750)	636
Balance at the end of the period	$ (122)	$ 519

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2013

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 2. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in accumulated other comprehensive income (loss), comprised entirely of foreign currency translation adjustments, consisted of the following:

	Three Months Ended March 31,
$s in thousands	2013			2012
Balance, beginning of period	$	628		$	(117	)
Foreign currency translation gain (loss) in other comprehensive income	(750		)	636
Balance, end of period	$	(122	)	$	519

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CONCENTRATIONS AND CREDIT RISK (Details) (Major Customers)	3 Months Ended			12 Months Ended
	Mar. 31, 2013 Total revenue item	Mar. 31, 2012 Total revenue item	Mar. 31, 2013 Total trade receivables item	Dec. 31, 2012 Total trade receivables item
CONCENTRATIONS AND CREDIT RISK
Number of customers	0	0	0	0
Concentration of risk (as a percent)	10.00%	10.00%	10.00%	10.00%

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COMMITMENTS AND CONTINGENCIES (Details) (US Ecology and the thermal recycling operation owner-operator, USD $)	Mar. 31, 2013
US Ecology and the thermal recycling operation owner-operator
Litigation and Regulatory Proceedings
Potential additional liability for potential violations	$ 0

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Current Assets:
Cash and cash equivalents	$ 4,511	$ 2,120
Receivables, net	32,254	33,947
Prepaid expenses and other current assets	2,510	3,161
Deferred income taxes	597	1,276
Total current assets	39,872	40,504
Property and equipment, net	113,319	109,792
Restricted cash	4,111	4,111
Intangible assets, net	39,536	40,771
Goodwill	22,617	23,105
Other assets	491	411
Total assets	219,946	218,694
Current Liabilities:
Accounts payable	6,842	6,333
Deferred revenue	5,147	3,919
Accrued liabilities	7,093	7,322
Accrued salaries and benefits	4,402	7,570
Income taxes payable	3,947	426
Current portion of closure and post-closure obligations	978	1,913
Total current liabilities	28,409	27,483
Long-term closure and post-closure obligations	15,608	15,449
Reducing revolving line of credit	41,000	45,000
Other long-term liabilities	102	114
Unrecognized tax benefits	470	467
Deferred income taxes	16,482	18,159
Total liabilities	102,071	106,672
Commitments and contingencies
Stockholders' Equity:
Common stock $0.01 par value, 50,000 authorized; 18,444 and 18,385 shares issued, respectively	184	184
Additional paid-in capital	64,537	63,969
Retained earnings	53,830	48,424
Treasury stock, at cost, 33 and 71 shares, respectively	(554)	(1,183)
Accumulated other comprehensive income (loss)	(122)	628
Total stockholders' equity	117,875	112,022
Total liabilities and stockholders' equity	$ 219,946	$ 218,694

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SUBSEQUENT EVENT (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended	0 Months Ended
	Mar. 31, 2012	Apr. 26, 2013 Subsequent event	Apr. 02, 2013 Subsequent event
SUBSEQUENT EVENT
Quarterly dividend declared (in dollars per share)			$ 0.18
Dividend paid in cash	$ 3,282	$ 3,300

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net income	$ 5,406	$ 4,523
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	3,439	3,223
Amortization of intangible assets	367	350
Accretion of closure and post-closure obligations	307	335
Unrealized foreign currency (gain) loss	1,057	(1,201)
Deferred income taxes	(716)	338
Share-based compensation expense	146	203
Unrecognized tax benefits	3	3
Net (gain) loss on sale of property and equipment	(41)	22
Changes in assets and liabilities:
Receivables	1,473	7,624
Income tax receivable		42
Other assets	732	(66)
Accounts payable and accrued liabilities	(556)	(967)
Deferred revenue	1,269	(295)
Accrued salaries and benefits	(3,106)	(1,526)
Income tax payable	3,528	896
Closure and post-closure obligations	(1,043)	(82)
Net cash provided by operating activities	12,265	13,422
Cash flows from investing activities:
Purchases of property and equipment	(6,752)	(2,386)
Proceeds from sale of property and equipment	52	66
Net cash used in investing activities	(6,700)	(2,320)
Cash flows from financing activities:
Payments on reducing revolving line of credit	(4,000)	(8,500)
Proceeds from exercise of stock options	1,050	44
Deferred financing costs paid	(177)
Proceeds from reducing revolving line of credit		3,000
Dividends paid		(3,282)
Other	2	(287)
Net cash used in financing activities	(3,125)	(9,025)
Effect of foreign exchange rate changes on cash	(49)	32
Increase in cash and cash equivalents	2,391	2,109
Cash and cash equivalents at beginning of period	2,120	4,289
Cash and cash equivalents at end of period	4,511	6,398
Supplemental Disclosures
Income taxes paid, net of receipts	378	1,612
Interest paid	184	236
Non-cash investing and financing activities:
Capital expenditures in accounts payable	1,645	916
Restricted stock issued from treasury shares	$ 629	$ 247

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BUSINESS COMBINATION (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	May 31, 2012
Additional information
Revenue	$ 42,899,000	$ 33,013,000
Operating loss	(9,656,000)	(6,471,000)
US Ecology Michigan
BUSINESS ACQUISITIONS
Percentage of outstanding shares acquired			100.00%
Pro forma combined:
Revenue		36,484,000
Net income		4,491,000
Earnings per share - Basic (in dollars per share)		$ 0.25
Earnings per share - Diluted (in dollars per share)		$ 0.25
Additional information
Revenue	2,900,000
Operating loss	$ 95,000

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GENERAL (Policies)

3 Months Ended

Mar. 31, 2013

GENERAL

Basis of presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements include the results of operations, financial position and cash flows of US Ecology, Inc. and its wholly-owned subsidiaries. All significant intercompany balances have been eliminated.  Throughout these financial statements words such as “we,” “us,” “our,” “US Ecology” and the “Company” refer to US Ecology, Inc. and its subsidiaries.

In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to present fairly, in all material respects, the results of the Company for the periods presented. These consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted pursuant to the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The results of operations and cash flows for the three months ended March 31, 2013 are not necessarily indicative of results to be expected for the entire fiscal year.

The Company’s Consolidated Balance Sheet as of December 31, 2012 has been derived from the Company’s audited Consolidated Balance Sheet as of that date.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. As it relates to estimates and assumptions in amortization rates and environmental obligations, significant engineering, operations and accounting judgments are required. We review these estimates and assumptions no less than annually. In many circumstances, the ultimate outcome of these estimates and assumptions will not be known for decades into the future. Actual results could differ materially from these estimates and assumptions due to changes in applicable regulations, changes in future operational plans and inherent imprecision associated with estimating environmental impacts far into the future.

Financial Instruments

Financial Instruments

Cash on deposit, accounts receivable, short-term borrowings, accounts payable and accrued liabilities as presented in the consolidated financial statements approximate fair value because of the short-term nature of these instruments.  The carrying amount of our long-term debt approximates fair value because interest rates are variable and, accordingly, approximate current market rates for instruments with similar risk and maturities. Restricted cash balances represent funds held in third-party managed trust accounts as collateral for our financial assurance obligations for post-closure activities at our non-operating facilities.  Restricted cash balances are maintained by third-party trustees and are invested in money market accounts.  The balances are adjusted monthly to fair market value based on quoted prices in active markets for identical assets.

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GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Changes in goodwill
Balance at the beginning of the period	$ 23,105
Foreign currency translation	(488)
Balance at the end of the period	22,617
Intangible assets
Total amortizing intangible assets	42,035		42,970
Accumulated amortization	(3,416)		(3,120)
Total intangible assets, net	39,536		40,771
Amortization expense	367	350
Permits and licenses
Intangible assets
Nonamortizing intangible assets	750		750
Tradename
Intangible assets
Nonamortizing intangible assets	167		171
Developed software
Intangible assets
Total amortizing intangible assets	344		352
Database
Intangible assets
Total amortizing intangible assets	98		100
Customer relationships
Intangible assets
Total amortizing intangible assets	5,178		5,269
Technology - Formulae and processes
Intangible assets
Total amortizing intangible assets	8,939		9,144
Permits, licenses and lease
Intangible assets
Total amortizing intangible assets	27,456		28,085
Non-compete agreements
Intangible assets
Total amortizing intangible assets	$ 20		$ 20

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RECEIVABLES (Tables)

3 Months Ended

Mar. 31, 2013

RECEIVABLES

Schedule of receivables

	March 31,			December 31,
$s in thousands	2013			2012
Trade	$	30,544		$	32,787
Unbilled revenue	1,431			1,529
Other	646			99
Total receivables	32,621			34,415
Allowance for doubtful accounts	(367		)	(468		)
Receivables, net	$	32,254		$	33,947

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GENERAL

3 Months Ended

Mar. 31, 2013

GENERAL

GENERAL

NOTE 1. GENERAL

Basis of Presentation

The accompanying unaudited consolidated financial statements include the results of operations, financial position and cash flows of US Ecology, Inc. and its wholly-owned subsidiaries. All significant intercompany balances have been eliminated.  Throughout these financial statements words such as “we,” “us,” “our,” “US Ecology” and the “Company” refer to US Ecology, Inc. and its subsidiaries.

In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to present fairly, in all material respects, the results of the Company for the periods presented. These consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted pursuant to the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The results of operations and cash flows for the three months ended March 31, 2013 are not necessarily indicative of results to be expected for the entire fiscal year.

The Company’s Consolidated Balance Sheet as of December 31, 2012 has been derived from the Company’s audited Consolidated Balance Sheet as of that date.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. As it relates to estimates and assumptions in amortization rates and environmental obligations, significant engineering, operations and accounting judgments are required. We review these estimates and assumptions no less than annually. In many circumstances, the ultimate outcome of these estimates and assumptions will not be known for decades into the future. Actual results could differ materially from these estimates and assumptions due to changes in applicable regulations, changes in future operational plans and inherent imprecision associated with estimating environmental impacts far into the future.

Financial Instruments

Cash on deposit, accounts receivable, short-term borrowings, accounts payable and accrued liabilities as presented in the consolidated financial statements approximate fair value because of the short-term nature of these instruments.  The carrying amount of our long-term debt approximates fair value because interest rates are variable and, accordingly, approximate current market rates for instruments with similar risk and maturities. Restricted cash balances represent funds held in third-party managed trust accounts as collateral for our financial assurance obligations for post-closure activities at our non-operating facilities.  Restricted cash balances are maintained by third-party trustees and are invested in money market accounts.  The balances are adjusted monthly to fair market value based on quoted prices in active markets for identical assets.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	18,444	18,385
Treasury stock, shares	33	71

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2013

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 11. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, we are involved in judicial and administrative proceedings involving federal, state, provincial or local governmental authorities, including regulatory agencies that oversee and enforce compliance with permits. Fines or penalties may be assessed by our regulators for non-compliance.  Actions may also be brought by individuals or groups in connection with permitting of planned facilities, modification or alleged violations of existing permits, or alleged damages suffered from exposure to hazardous substances purportedly released from our operated sites, as well as other litigation. We maintain insurance intended to cover property and damage claims asserted as a result of our operations. Periodically, management reviews and may establish reserves for legal and administrative matters, or other fees expected to be incurred in relation to these matters.

In 2012, we settled allegations by the United States Environment Protection Agency (“U.S. EPA”) that the thermal recycling operation at our Robstown, Texas facility did not comply with certain rules and regulations of the Resource Conservation and Recovery Act of 1976 (“RCRA”). As part of the settlement, we agreed to pay a civil penalty and to submit an application to the State of Texas for a RCRA subpart X permit.  The Company and the thermal recycling unit’s owner-operator also agreed to a set of interim operating conditions that allow the facility to continue providing recycling services to customers until the RCRA Subpart X permit is issued.

In connection with this matter, the U.S. EPA also raised concerns regarding potential violations of the Clean Air Act of 1970 (“CAA”).  However, neither the Company nor the thermal recycling unit’s owner-operator has received a formal notice of violation from the U.S. EPA to date. As a result, we cannot presently estimate the potential additional liability, if any, related to these potential violations of the CAA and no amounts have been recorded in our financial statements for this matter.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013	Apr. 26, 2013
Document and Entity Information
Entity Registrant Name	US ECOLOGY, INC.
Entity Central Index Key	0000742126
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	true
Amendment Description	This Amendment No. 1 on Form 10-Q/A is being filed for the purpose of amending the number of shares outstanding on the cover page to our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2013, which was filed with the Securities and Exchange Commission on April 30, 2013 (the “Original Form 10-Q”). Items included in the Original Form 10-Q that are not amended by this Form 10-Q/A remain in effect as of the date of filing of the Original Form 10-Q.
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,410,349
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

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EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 12. EARNINGS PER SHARE

	Three Months Ended March 31,
$s and shares in thousands, except per share	2013				2012
amounts	Basic		Diluted		Basic		Diluted
Net income	$	5,406	$	5,406	$	4,523	$	4,523
Weighted average basic shares outstanding	18,320		18,320		18,218		18,218
Dilutive effect of stock options and restricted stock			87				36
Weighted average diluted shares outstanding			18,407				18,254
Earnings per share	$	0.30	$	0.29	$	0.25	$	0.25
Anti-dilutive shares excluded from calculation			221				317

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 42,899	$ 33,013
Direct operating costs	21,084	17,638
Transportation costs	6,433	3,299
Gross profit	15,382	12,076
Selling, general and administrative expenses	5,726	5,605
Operating income	9,656	6,471
Other income (expense):
Interest income	5	5
Interest expense	(221)	(224)
Foreign currency gain (loss)	(938)	1,091
Other	97	80
Total other income (expense)	(1,057)	952
Income before income taxes	8,599	7,423
Income tax expense	3,193	2,900
Net income	$ 5,406	$ 4,523
Earnings per share:
Basic (in dollars per share)	$ 0.30	$ 0.25
Diluted (in dollars per share)	$ 0.29	$ 0.25
Shares used in earnings per share calculation:
Basic (in shares)	18,320	18,218
Diluted (in shares)	18,407	18,254
Dividends paid per share (in dollars per share)		$ 0.18

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BUSINESS COMBINATION

3 Months Ended

Mar. 31, 2013

BUSINESS COMBINATION

BUSINESS COMBINATION

NOTE 6. BUSINESS COMBINATION

On May 31, 2012, the Company acquired 100% of the outstanding shares of US Ecology Michigan, Inc. (“US Ecology Michigan”), formerly Dynecol, Inc., a chemical and industrial byproducts treatment and reuse facility located in Detroit, Michigan. The following unaudited pro forma financial information presents the combined results of operations as if US Ecology Michigan had been combined with us beginning on January 1, 2012. The pro forma financial information includes the accounting impact of the business combination, including the amortization of intangible assets, depreciation of property, plant and equipment and interest expense.  The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the period presented, nor should it be taken as an indication of our future consolidated results of operations.

	(unaudited)
	Three Months Ended
$s in thousands, except per share amounts	March 31, 2012
Pro forma combined:
Revenue	$	36,484
Net income	$	4,491
Earnings per share
Basic	$	0.25
Diluted	$	0.25

The amounts of revenue and operating loss from US Ecology Michigan included in US Ecology’s consolidated statements of operations for the three months ended March 31, 2013 were $2.9 million and $95,000, respectively.

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PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2013

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 5. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

	March 31,			December 31,
$s in thousands	2013			2012
Cell development costs	$	64,905		$	64,994
Land and improvements	18,152			14,920
Buildings and improvements	55,960			55,177
Railcars	17,375			17,375
Vehicles and other equipment	40,129			39,689
Construction in progress	14,345			12,454
Total property and equipment	210,866			204,609
Accumulated depreciation and amortization	(97,547		)	(94,817		)
Property and equipment, net	$	113,319		$	109,792

Depreciation and amortization expense for the three months ended March 31, 2013 and 2012 was $3.4 million and $3.2 million, respectively.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 2013

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Schedule of changes in accumulated other comprehensive income (loss)

	Three Months Ended March 31,
$s in thousands	2013			2012
Balance, beginning of period	$	628		$	(117	)
Foreign currency translation gain (loss) in other comprehensive income	(750		)	636
Balance, end of period	$	(122	)	$	519

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EQUITY

3 Months Ended

Mar. 31, 2013

EQUITY

EQUITY

NOTE 13.     EQUITY

During the three months ended March 31, 2013, option holders exercised 58,365 options with a weighted-average exercise price of $17.97. During the three months ended March 31, 2013, the Company issued 37,700 shares of restricted stock from our treasury stock at an average cost of $16.68 per share.

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CLOSURE AND POST-CLOSURE OBLIGATIONS

3 Months Ended

Mar. 31, 2013

CLOSURE AND POST-CLOSURE OBLIGATIONS

CLOSURE AND POST-CLOSURE OBLIGATIONS

NOTE 9. CLOSURE AND POST-CLOSURE OBLIGATIONS

Our accrued closure and post-closure obligations represent the expected future costs, including corrective actions, associated with closure and post-closure of our operating and non-operating disposal facilities. Liabilities are recorded when work is probable and the costs can be reasonably estimated. We perform periodic reviews of both non-operating and operating facilities and revise accruals for estimated closure and post-closure, remediation or other costs as necessary. Recorded liabilities are based on our best estimates of current costs and are updated periodically to include the effects of existing technology, presently enacted laws and regulations, inflation and other economic factors.

Changes in closure and post-closure obligations consisted of the following:

	Three Months Ended
$s in thousands	March 31, 2013
Closure and post-closure obligations, beginning of period	$	17,362
Accretion expense	307
Payments	(1,043		)
Currency translation	(40		)
Closure and post-closure obligations, end of period	16,586
Less current portion	(978		)
Long-term portion	$	15,608

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GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2013

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

NOTE 7. GOODWILL AND INTANGIBLE ASSETS

The Company’s entire goodwill balance has been assigned to the Operating Disposal Facilities reporting segment.  Changes in goodwill for the three months ended March 31, 2013 consisted of the following:

$s in thousands	Goodwill
Balance at December 31, 2012	$	23,105
Foreign currency translation	(488		)
Balance at March 31, 2013	$	22,617

Intangible assets consisted of the following:

$s in thousands	March 31, 2013			December 31, 2012
Amortizing intangible assets:
Developed software	$	344		$	352
Database	98			100
Customer relationships	5,178			5,269
Technology - Formulae and processes	8,939			9,144
Permits, licenses and lease	27,456			28,085
Non-compete agreements	20			20
Total amortizing intangible assets	42,035			42,970
Accumulated amortization	(3,416		)	(3,120		)
Nonamortizing intangible assets:
Permits and licenses	750			750
Tradename	167			171
Total intangible assets, net	$	39,536		$	40,771

Amortization expense for the three months ended March 31, 2013 and 2012 was $367,000 and $350,000, respectively.

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DEBT

3 Months Ended

Mar. 31, 2013

DEBT

DEBT

NOTE 8. DEBT

On October 29, 2010, we entered a credit agreement with Wells Fargo which, as amended, provides for an aggregate commitment from Wells Fargo of $95.0 million (the “Credit Agreement”). The Credit Agreement provides for a $20.0 million revolving line of credit (the “Revolving Line of Credit”) with a maturity date of November 1, 2015 and a $75.0 million reducing revolving line of credit (the “Reducing Revolving Line of Credit”) with a maturity date of November 1, 2015.

Revolving Line of Credit

The Revolving Line of Credit provides up to $20.0 million in revolving credit loans or letters of credit for working capital needs (the “Commitment Amount”).  Under the Revolving Line of Credit, revolving loans are available based on the Prime Rate or the LIBOR, at the Company’s option, plus an applicable margin which is determined according to a pricing grid under which the interest rate decreases or increases based on our ratio of funded debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”). At March 31, 2013, the effective interest rate on the Revolving Line of Credit was 1.45%. Interest only payments are due either monthly or on the last day of any interest period, as applicable. At March 31, 2013, there were no borrowings outstanding under the Revolving Line of Credit. The availability under the Revolving Line of Credit was $16.0 million, with $4.0 million of the line of credit issued in the form of a standby letter of credit utilized as collateral for closure and post-closure financial assurance.

Reducing Revolving Line of Credit

The Reducing Revolving Line of Credit provides an initial commitment amount of $75.0 million (the “Reducing Revolving Commitment Amount”).  Proceeds from the Reducing Revolving Line of Credit were used to acquire all of the shares of Stablex in 2010 and to acquire US Ecology Michigan in 2012. Remaining borrowings are available for working capital needs. The Reducing Revolving Commitment Amount is reduced by $2.8 million on the last day of each March, June, September and December beginning March 31, 2013, continuing through November 1, 2015. Under the Reducing Revolving Line of Credit revolving loans are available based on the Prime Rate or LIBOR, at the Company’s option, plus an applicable margin, which is determined according to a pricing grid under which the interest rate decreases or increases based on our ratio of funded debt to EBITDA. At March 31, 2013, the effective interest rate of the Reducing Revolving Line of Credit was 1.45%.  Interest only payments are due either monthly or on the last day of any interest period, as applicable.  At March 31, 2013, $41.0 million was outstanding on the Reducing Revolving Line of Credit with $31.2 million available for additional borrowings.

In addition to standard fees, origination fees and commitment fees apply to the average daily unused portion of the Commitment Amount and the Reducing Revolving Commitment Amount. The Credit Agreement contains certain quarterly financial covenants, including a maximum funded debt ratio, a maximum fixed charge coverage ratio, a minimum required tangible net worth and a minimum current ratio. We may only declare quarterly or annual dividends if on the date of declaration, no event of default has occurred and no other event or condition has occurred that would constitute default due to the payment of the dividend. Obligations under the Credit Agreement are guaranteed by US Ecology and all of its subsidiaries.

At March 31, 2013, we were in compliance with all of the financial covenants in the Credit Agreement.

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INCOME TAXES

3 Months Ended

Mar. 31, 2013

INCOME TAXES

INCOME TAXES

NOTE 10. INCOME TAXES

During the three months ended March 31, 2013, there were no material changes to our unrecognized tax benefits disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012. We do not anticipate our total unrecognized tax benefits to increase or decrease materially within the next twelve months.

Our effective tax rate for the three months ended March 31, 2013 was 37.1%, down from 39.1% for the three months ended March 31, 2012. This decrease reflects a higher proportion of earnings from our Canadian operations, which are taxed at a lower corporate tax rate, partially offset by higher U.S. state income taxes.

We file a consolidated U.S. federal income tax return with the Internal Revenue Service as well as income tax returns in various states and Canada. We may be subject to examination by taxing authorities in the U.S. and Canada for tax years 2009 through 2012. Additionally, we may be subject to examinations by various state and local taxing jurisdictions for tax years 2008 through 2012.

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PROPERTY AND EQUIPMENT (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
PROPERTY AND EQUIPMENT
Total property and equipment	$ 210,866		$ 204,609
Accumulated depreciation and amortization	(97,547)		(94,817)
Property and equipment, net	113,319		109,792
Depreciation expense	3,439	3,223
Cell development costs
PROPERTY AND EQUIPMENT
Total property and equipment	64,905		64,994
Land and improvements
PROPERTY AND EQUIPMENT
Total property and equipment	18,152		14,920
Buildings and improvements
PROPERTY AND EQUIPMENT
Total property and equipment	55,960		55,177
Railcars
PROPERTY AND EQUIPMENT
Total property and equipment	17,375		17,375
Vehicles and other equipment
PROPERTY AND EQUIPMENT
Total property and equipment	40,129		39,689
Construction in progress
PROPERTY AND EQUIPMENT
Total property and equipment	$ 14,345		$ 12,454

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SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2013

SUBSEQUENT EVENT

SUBSEQUENT EVENT

NOTE 15. SUBSEQUENT EVENT

On April 1, 2013, we declared a quarterly dividend of $0.18 per common share to stockholders of record on April 19, 2013. The dividend was paid using cash on hand on April 26, 2013 in an aggregate amount of $3.3 million.

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BUSINESS COMBINATION (Tables) (US Ecology Michigan)

3 Months Ended

Mar. 31, 2013

US Ecology Michigan

BUSINESS ACQUISITIONS

Schedule of unaudited pro forma financial information

	(unaudited)
	Three Months Ended
$s in thousands, except per share amounts	March 31, 2012
Pro forma combined:
Revenue	$	36,484
Net income	$	4,491
Earnings per share
Basic	$	0.25
Diluted	$	0.25

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EARNINGS PER SHARE (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Basic
Net income	$ 5,406	$ 4,523
Weighted average basic shares outstanding	18,320	18,218
Earnings per share (in dollars per share)	$ 0.30	$ 0.25
Diluted
Net income	$ 5,406	$ 4,523
Weighted average basic shares outstanding	18,320	18,218
Dilutive effect of stock options and restricted stock (in shares)	87	36
Weighted average diluted shares outstanding	18,407	18,254
Earnings per share (in dollars per share)	$ 0.29	$ 0.25
Anti-dilutive shares excluded from calculation	221	317

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 5,406	$ 4,523
Other comprehensive income (loss):
Foreign currency translation gain (loss)	(750)	636
Comprehensive income	$ 4,656	$ 5,159

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RECEIVABLES

3 Months Ended

Mar. 31, 2013

RECEIVABLES

RECEIVABLES

NOTE 4. RECEIVABLES

Receivables consisted of the following:

	March 31,			December 31,
$s in thousands	2013			2012
Trade	$	30,544		$	32,787
Unbilled revenue	1,431			1,529
Other	646			99
Total receivables	32,621			34,415
Allowance for doubtful accounts	(367		)	(468		)
Receivables, net	$	32,254		$	33,947

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GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2013

GOODWILL AND INTANGIBLE ASSETS

Schedule of changes in goodwill

$s in thousands	Goodwill
Balance at December 31, 2012	$	23,105
Foreign currency translation	(488		)
Balance at March 31, 2013	$	22,617

Schedule of intangible assets

$s in thousands	March 31, 2013			December 31, 2012
Amortizing intangible assets:
Developed software	$	344		$	352
Database	98			100
Customer relationships	5,178			5,269
Technology - Formulae and processes	8,939			9,144
Permits, licenses and lease	27,456			28,085
Non-compete agreements	20			20
Total amortizing intangible assets	42,035			42,970
Accumulated amortization	(3,416		)	(3,120		)
Nonamortizing intangible assets:
Permits and licenses	750			750
Tradename	167			171
Total intangible assets, net	$	39,536		$	40,771

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CLOSURE AND POST-CLOSURE OBLIGATIONS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Changes to reported closure and post-closure obligations
Closure and post-closure obligations, beginning of year	$ 17,362
Accretion expense	307	335
Payments	(1,043)
Currency translation	(40)
Closure and post-closure obligations, end of year	16,586
Less current portion	(978)		(1,913)
Long-term portion	$ 15,608		$ 15,449

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OPERATING SEGMENTS

3 Months Ended

Mar. 31, 2013

OPERATING SEGMENTS

OPERATING SEGMENTS

NOTE 14.     OPERATING SEGMENTS

We operate within two segments, Operating Disposal Facilities and Non-Operating Disposal Facilities. These segments reflect our internal reporting structure and nature of services offered. The Operating Disposal Facility segment represents disposal facilities accepting hazardous and radioactive waste. The Non-Operating Disposal Facility segment represents facilities which are not accepting hazardous and/or radioactive waste or formerly proposed new facilities.

Income taxes are assigned to Corporate, but all other items are included in the segment where they originated. Intercompany transactions have been eliminated from the segment information and are not significant between segments.

Summarized financial information concerning our reportable segments is shown in the following tables:

Three Months Ended March 31, 2013 (in thousands)	Operating Disposal Facilities		Non- Operating Disposal Facilities			Corporate			Total
Revenue - Treatment and disposal	$	36,340	$	4		$	—		$	36,344
Revenue - Transportation services	6,555		—			—			6,555
Total revenue	42,895		4			—			42,899
Direct operating costs	21,031		53			—			21,084
Transportation costs	6,433		—			—			6,433
Gross profit (loss)	15,431		(49		)	—			15,382
Selling, general & administrative expense	2,646		—			3,080			5,726
Operating income (loss)	12,785		(49		)	(3,080		)	9,656
Interest income (expense), net	4		—			(220		)	(216		)
Foreign currency gain (loss)	112		—			(1,050		)	(938		)
Other income	95		2			—			97
Income (loss) before income taxes	12,996		(47		)	(4,350		)	8,599
Income tax expense	—		—			3,193			3,193
Net income (loss)	$	12,996	$	(47	)	$	(7,543	)	$	5,406
Depreciation, amortization & accretion	$	4,051	$	52		$	10		$	4,113
Capital expenditures	$	6,726	$	—		$	26		$	6,752
Total assets	$	211,620	$	86		$	8,240		$	219,946

Three Months Ended March 31, 2012 (in thousands)	Operating Disposal Facilities			Non- Operating Disposal Facilities			Corporate			Total
Revenue - Treatment and disposal	$	29,945		$	4		$	—		$	29,949
Revenue - Transportation services	3,064			—			—			3,064
Total revenue	33,009			4			—			33,013
Direct operating costs	17,583			55			—			17,638
Transportation costs	3,299			—			—			3,299
Gross profit (loss)	12,127			(51		)	—			12,076
Selling, general & administrative expense	2,521			—			3,084			5,605
Operating income (loss)	9,606			(51		)	(3,084		)	6,471
Interest income (expense), net	5			—			(224		)	(219		)
Foreign currency gain (loss)	(99		)	—			1,190			1,091
Other income	80			—			—			80
Income (loss) before income taxes	9,592			(51		)	(2,118		)	7,423
Income tax expense	—			—			2,900			2,900
Net income (loss)	$	9,592		$	(51	)	$	(5,018	)	$	4,523
Depreciation, amortization & accretion	$	3,844		$	54		$	10		$	3,908
Capital expenditures	$	2,360		$	17		$	9		$	2,386
Total assets	$	188,646		$	95		$	8,986		$	197,727

Revenue, Property and Equipment and Intangible Assets Outside of the United States

We provide services in the United States and Canada. Revenues by geographic location where the underlying services were performed consisted of the following:

	Three Months Ended March 31,
$s in thousands	2013		2012
United States	$	31,398	$	24,599
Canada	11,501		8,414
Total revenue	$	42,899	$	33,013

Long-lived assets, comprised of property and equipment and intangible assets net of accumulated depreciation and amortization, by geographic location consisted of the following:

	March 31,		December 31,
$s in thousands	2013		2012
United States	$	85,080	$	81,605
Canada	67,775		68,958
Total long-lived assets	$	152,855	$	150,563