8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 29, 2008

AMERICAN ECOLOGY CORPORATION
(Exact name of registrant as specified in its charter)

Delaware	0-11688	95-3889638
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Lakepointe Centre I, 300 E. Mallard, Suite 300 Boise, Idaho	83706
(Address of Principal Executive Offices)	(Zip Code)

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

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition.

On April 29, 2008, American Ecology Corporation issued a press release reporting its results for the quarter ended March 31, 2008.  A copy of the press release is attached as Exhibit 99.1 to this report.

The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01.  Financial Statements and Exhibits

   (d)           Exhibits

The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

       99.1         Press release issued by the Registrant on April 29, 2008

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.

	American Ecology Corporation
	(Registrant)
Date: April 29, 2008	/s/ Jeffrey R. Feeler
	Jeffrey R. Feeler Vice President and Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	American Ecology Corporation press release dated April 29, 2008.

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EX-99.1

Exhibit 99.1

NEWS RELEASE
For Immediate Release
Contact: Alison Ziegler, Cameron Associates (212) 554-5469
alison@cameronassoc.com     www.americanecology.com

AMERICAN ECOLOGY DELIVERS RECORD DISPOSAL VOLUME, REVENUE
AND OPERATING INCOME IN FIRST QUARTER 2008

Boise, Idaho — April 29, 2008 — American Ecology Corporation (NASDAQ: ECOL) (“the Company”) today reported record operating and financial performance for the quarter ended March 31, 2008. Net income reached $5.9 million, or $0.32 per diluted share, for the first quarter of 2008, up 19% from net income of $4.9 million, or $0.27 per diluted share, in the first quarter last year.

Operating income for the first quarter of 2008 set a new quarterly record of $9.5 million. This was a 20% increase over operating income of $7.9 million recognized in the first quarter of 2007, and was 16% higher than our previous quarterly operating income record of $8.2 million posted in the second quarter of 2007.

Revenue for the first quarter of 2008 rose 19% to $46.2 million, up from $39.0 million in the same quarter last year. Our Idaho, Nevada and Texas waste facilities disposed of a record 343,000 tons of waste in the first quarter of 2008, a 28% increase over the first quarter of 2007. Gross profit was $13.4 million in the first quarter of 2008, a 17% increase over gross profit of $11.5 million posted in the same quarter last year.

Selling, general and administrative (“SG&A”) expenses for the first quarter of 2008 were $3.9 million, or 9% of revenue, as compared to $3.6 million, or 9% of revenue, in the same quarter last year. The $320,000 increase in SG&A expenses primarily reflects higher payroll and benefit expenses, stock-based compensation expense, employee bonus accruals and business development costs.

Other income was $127,000 for the first quarter of 2008 and consisted primarily of interest and royalty income. This compares to other income of $214,000 for the first quarter of 2007, which was primarily interest income.

At March 31, 2008, we had $10.4 million of cash and short-term investments. Of our $15.0 million line of credit, $11.0 million was unused and the remaining $4.0 million covers a standby letter of credit providing collateral for financial assurance policies for future closure and post-closure obligations. The Company had no debt at quarter end.

“Record waste volumes made possible by recent capital investments helped us deliver record operating profits for the quarter,” said Chairman, President and Chief Executive Officer Stephen Romano. “While our Idaho site led the way, recent investments in new waste treatment and storage capacity at our Texas and Nevada sites helped each of these operations deliver superior performance as well.”

Outlook

The Company issued 2008 earnings guidance of $1.17 to $1.23 per diluted share on February 7, 2008.

“Based on record first quarter results and a strong second quarter outlook, we project earnings toward the upper end of our 2008 guidance range,” Romano commented. “Our Texas site is also on schedule to begin thermal desorption and recycling of petroleum-based wastes from refineries and other customers by the second half of the year.”

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Dividend

On April 1, 2008 the Company declared a $0.15 per common share quarterly dividend for stockholders of record on April 11, 2008. This $2.7 million dividend was paid on April 18, 2008 using cash on hand.

Conference Call

American Ecology will hold an investor conference call on Tuesday, April 29, 2008 at 11 a.m. Eastern Daylight Time (9:00 a.m. Mountain Daylight Time) to discuss these results, its current financial position and its 2008 business outlook. Questions will be invited after management’s presentation. Interested parties can join the conference call by dialing (877) 681-3374 or (719) 325-4913 and using the passcode 7879642. The conference call will also be broadcast live on our website at www.americanecology.com. An audio replay will be available through May 6, 2008 by calling (888) 203-1112 or (719) 457-0820 and using the passcode 7879642. The replay will also be accessible on our website at www.americanecology.com.

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About American Ecology Corporation
American Ecology Corporation, through its subsidiaries, provides radioactive, PCB, hazardous, and non-hazardous waste services to commercial and government customers throughout the United States, such as steel mills, medical and academic institutions, refineries, chemical manufacturing facilities and the nuclear power industry. Headquartered in Boise, Idaho, the Company is the oldest radioactive and hazardous waste services company in the United States.

This press release contains forward-looking statements as 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 American Ecology Corporation 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 2008 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 American Ecology Corporation’s December 31, 2007 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. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date such statements are made. 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 include a loss of a major customer, compliance with and changes to applicable laws and regulations, access to cost effective transportation services, access to insurance and other financial assurances, loss of key personnel, lawsuits, adverse economic conditions, government funding or competitive pressures, incidents that could limit or suspend specific operations, implementation of new technologies, our ability to perform under required contracts, our willingness or ability to pay dividends and our ability to integrate any potential acquisitions.

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Investors should also be aware that while we do, from time to time, communicate with securities analysts, it is against our policy to disclose any material non-public information or other confidential commercial information. Accordingly, stockholders should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report. Furthermore, we have a policy against issuing or confirming financial forecasts or projections issued by others. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the responsibility of American Ecology Corporation.

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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)

	Three Months Ended
	March 31,
	2008			2007
Revenue	$	46,219		$	38,964
Transportation costs		22,058			17,171
Other direct operating costs		10,717			10,279
Gross profit		13,444			11,514
Selling, general and administrative expenses		3,919			3,599
Operating income		9,525			7,915
Other income (expense):
Interest income		63			211
Interest expense		(1	)		(1	)
Other		65			4
Total other income		127			214
Income before income taxes		9,652			8,129
Income tax expense		3,784			3,194
Net income	$	5,868		$	4,935
Earnings per share:
Basic	$	0.32		$	0.27
Diluted	$	0.32		$	0.27
Shares used in earnings per share calculation:
Basic		18,229			18,209
Diluted		18,277			18,253
Dividends paid per share	$	0.15		$	0.15

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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)

	March 31,
	2008		December 31,
	(unaudited)		2007
Assets
Current Assets:
Cash and cash equivalents	$	9,365	$	12,563
Short-term investments		999		2,209
Receivables, net		37,998		29,422
Prepaid expenses and other current assets		3,039		3,034
Income tax receivable		—		994
Deferred income taxes		896		667
Total current assets		52,297		48,889
Property and equipment, net		64,303		63,306
Restricted cash		4,818		4,881
Total assets	$	121,418	$	117,076
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	4,813	$	4,861
Deferred revenue		4,214		4,491
Accrued liabilities		5,352		6,236
Accrued salaries and benefits		1,699		2,613
Customer advances		—		31
Income tax payable		2,874		—
Current portion of closure and post-closure obligations		1,314		803
Current portion of capital lease obligations		10		8
Total current liabilities		20,276		19,043
Long-term closure and post-closure obligations		13,965		14,331
Long-term capital lease obligations		28		27
Deferred income taxes		716		577
Total liabilities		34,985		33,978
Contingencies and commitments
Stockholders’ Equity
Common stock		182		182
Additional paid-in capital		59,020		58,816
Retained earnings		27,231		24,100
Total stockholders’ equity		86,433		83,098
Total liabilities and stockholders’ equity	$	121,418	$	117,076

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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)

	For the Three Months Ended March 31,
	2008			2007
Cash Flows From Operating Activities:
Net income	$	5,868		$	4,935
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		2,838			2,351
Deferred income taxes		(90	)		1,650
Stock-based compensation expense		201			143
Accretion of interest income		(14	)		(60	)
Net gain on sale of property and equipment		(2	)		—
Changes in assets and liabilities:
Receivables		(8,576	)		(1,432	)
Income tax receivable		994			650
Other assets		(5	)		(238	)
Accounts payable and accrued liabilities		(1,026	)		(587	)
Deferred revenue		(277	)		57
Accrued salaries and benefits		(914	)		(453	)
Income tax payable		2,874			673
Closure and post-closure obligations		(164	)		(119	)
Net cash provided by operating activities		1,707			7,570
Cash Flows From Investing Activities:
Purchases of property and equipment		(3,464	)		(3,775	)
Purchases of short-term investments		(992	)		(11,943	)
Maturities of short-term investments		2,216			10,364
Restricted cash		63			(61	)
Proceeds from sale of property and equipment		9			—
Net cash used in investing activities		(2,168	)		(5,415	)
Cash Flows From Financing Activities:
Dividends paid		(2,737	)		(2,734	)
Proceeds from stock option exercises		1			326
Tax benefit of common stock options		2			216
Other		(3	)		(2	)
Net cash used in financing activities		(2,737	)		(2,194	)
Decrease in cash and cash equivalents		(3,198	)		(39	)
Cash and cash equivalents at beginning of period		12,563			3,775
Cash and cash equivalents at end of period	$	9,365		$	3,736

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