-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S5D95azOLNFrBnlsle/ghGslL1a4LRESWfmLmRlz6BuDsvFNIz+RFWYjgJwvbvWi 6ZSATteHARzYcAlJFZTMNA== 0001362310-08-003988.txt : 20080731 0001362310-08-003988.hdr.sgml : 20080731 20080731123312 ACCESSION NUMBER: 0001362310-08-003988 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080731 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080731 DATE AS OF CHANGE: 20080731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN ECOLOGY CORP CENTRAL INDEX KEY: 0000742126 STANDARD INDUSTRIAL CLASSIFICATION: REFUSE SYSTEMS [4953] IRS NUMBER: 953889638 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-11688 FILM NUMBER: 08981111 BUSINESS ADDRESS: STREET 1: 300 E. MALLARD STREET 2: STE 300 CITY: BOISE STATE: ID ZIP: 83706 BUSINESS PHONE: 2083318400 MAIL ADDRESS: STREET 1: 300 E. MALLARD STREET 2: STE 300 CITY: BOISE STATE: ID ZIP: 83706 8-K 1 c74183e8vk.htm FORM 8-K Filed by Bowne Pure Compliance
 
 

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): July 31, 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))

 
 

 

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Item 2.02  Results of Operations and Financial Condition.

On July 31, 2008, American Ecology Corporation issued a press release reporting its results for the quarter ended June 30, 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 July 31, 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: July 31, 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 July 31, 2008.

 

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EX-99.1 2 c74183exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
Exhibit 99.1
     
(AE LOGO)
  NEWS RELEASE
For Immediate Release
Contact: Alison Ziegler, Cameron Associates (212) 554-5469
alison@cameronassoc.com www.americanecology.com
AMERICAN ECOLOGY ANNOUNCES RECORD OPERATING RESULTS FOR THE SECOND QUARTER OF 2008
Boise, Idaho — July 31, 2008 — American Ecology Corporation (NASDAQ-GS: ECOL) (“the Company”) today reported record operating results for the quarter ended June 30, 2008. Operating income for the second quarter of 2008 set a new quarterly record of $9.8 million. This was 20% higher than operating income of $8.2 million for the second quarter of 2007 and exceeded the previous quarterly record of $9.5 million posted in the first quarter of 2008.
Net income reached $6.1 million, or $0.33 per diluted share, for the second quarter of 2008, up 20% from net income of $5.1 million, or $0.28 per diluted share, in the second quarter last year.
Revenue for the second quarter of 2008 rose 8% to $44.5 million, up from $41.3 million in the same quarter last year. This increase reflects strong growth in disposal service revenue partially offset by lower transportation revenue. Our Idaho, Nevada and Texas waste facilities disposed of 325,000 tons of waste in the second quarter of 2008, an 18% increase over the second quarter of 2007. Gross profit was $13.6 million in the second quarter of 2008, a 17% increase over gross profit of $11.7 million posted in the same quarter last year.
Selling, general and administrative (“SG&A”) expenses for the second quarter of 2008 were $3.7 million, or 8% of revenue, as compared to $3.5 million, also 8% of revenue, in the same quarter last year. The $258,000 increase in SG&A expenses reflects higher payroll, benefit, stock-based compensation and performance-based bonus incentives.
Other income, primarily interest and royalty income, was $202,000 for the second quarter of 2008. This compares to other income of $197,000 for the second quarter of 2007, which was primarily interest income and a gain on the sale of excess property.
At June 30, 2008, we had $18.5 million of cash and cash equivalents, with $11.0 million of our $15.0 million line of credit unused. The $4.0 million balance covers a standby letter of credit providing collateral for financial assurance for future closure and post-closure obligations. The Company had no debt at quarter end.
Year-To-Date Results
Operating income for the six months ended June 30, 2008 was $19.4 million, up 20% from operating income of $16.1 million for the first six months of 2007. Net income for the first half of 2008 was $12.0 million, or $0.66 per diluted share, up 20% from net income of $10.0 million, or $0.55 per diluted share, in the first half of last year.
Revenue for the first half of 2008 was $90.7 million, up 13% from revenue of $80.2 million in the same period in 2007.

 

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Disposal volumes in the first half of 2008 climbed to 668,000 tons, an increase of 23% over the same period in 2007. The resulting operating leverage drove gross profit to $27.0 million, up 17% from gross profit of $23.2 million in the first half of 2007.
Direct operating expenses for the first half of 2008 were $63.7 million, up from $57.1 million for the same period last year. This reflects higher rail and truck transportation expenses, higher variable costs for waste treatment additives, higher disposal cell amortization expense on larger waste volumes, labor and benefits and equipment maintenance.
SG&A expenses for the first half of 2008 were $7.7 million, or 8% of revenue, as compared to $7.1 million, or 9% of revenue, for the same period last year.
Other income was $329,000 for the first half of 2008. This consisted primarily of interest income and royalty income. In the first half of 2007, other income was $411,000 which included interest income and a gain on the sale of excess property.
Outlook
The Company issued initial 2008 earnings guidance of $1.17 to $1.23 per diluted share on February 7, 2008.
“Very strong clean-up business performance and diversified growth over multiple service lines combined to produce record first half performance,” stated Chairman and Chief Executive Officer Stephen Romano. We currently expect to reach or potentially exceed the upper end of our 2008 guidance range,” commented Romano. “Exceeding our guidance range will require a strong second half contribution from our Texas-based thermal desorption recycling service which was initiated in late June and solid event business results.”
Dividend
On July 1, 2008 the Company declared a quarterly dividend of $0.18 per common share for stockholders of record on July 11, 2008, a 20% increase from the prior quarterly dividend of $0.15 per common share. This $3.3 million dividend was paid on July 18, 2008 using cash on hand.
Conference Call
American Ecology will hold an investor conference call on Thursday, July 31, 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 6966948. The conference call will also be broadcast live on our website at www.americanecology.com. An audio replay will be available through August 7, 2008 by calling (888) 203-1112 or (719) 457-0820 and using the passcode 6966948. 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, throughput limitations operating the thermal desorption system installed at the Texas facility, 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, our ability to perform under required contracts, our willingness or ability to pay dividends and our ability to integrate any potential acquisitions.
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
June 30,
    Six Months Ended
June 30,
 
 
    2008     2007     2008     2007  
Revenue
  $ 44,516     $ 41,267     $ 90,735     $ 80,231  
Transportation costs
    19,251       19,760       41,309       36,931  
Other direct operating costs
    11,687       9,854       22,404       20,133  
 
                       
 
                               
Gross profit
    13,578       11,653       27,022       23,167  
 
                               
Selling, general and administrative expenses
    3,732       3,474       7,651       7,073  
 
                       
Operating income
    9,846       8,179       19,371       16,094  
 
                               
Other income (expense):
                               
Interest income
    111       150       174       361  
Interest expense
    (3 )     (1 )     (4 )     (2 )
Other
    94       48       159       52  
 
                       
Total other income
    202       197       329       411  
 
                               
Income before income taxes
    10,048       8,376       19,700       16,505  
Income tax expense
    3,938       3,292       7,722       6,486  
 
                       
Net income
  $ 6,110     $ 5,084     $ 11,978     $ 10,019  
 
                       
 
                               
Earnings per share:
                               
Basic
  $ 0.34     $ 0.28     $ 0.66     $ 0.55  
Diluted
  $ 0.33     $ 0.28     $ 0.66     $ 0.55  
 
                               
Shares used in earnings per share calculation:
                               
Basic
    18,232       18,216       18,230       18,213  
Diluted
    18,295       18,254       18,286       18,254  
 
                               
Dividends paid per share
  $ 0.15     $ 0.15     $ 0.30     $ 0.30  
 
                       

 

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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
                 
    June 30, 2008     December 31,  
    (unaudited)     2007  
Assets
               
 
               
Current Assets:
               
Cash and cash equivalents
  $ 18,517     $ 12,563  
Short-term investments
          2,209  
Receivables, net
    31,684       29,422  
Prepaid expenses and other current assets
    2,999       3,034  
Income tax receivable
          994  
Deferred income taxes
    1,058       667  
 
           
Total current assets
    54,258       48,889  
 
               
Property and equipment, net
    67,294       63,306  
Restricted cash
    4,846       4,881  
 
           
Total assets
  $ 126,398     $ 117,076  
 
           
 
               
Liabilities and Stockholders’ Equity
               
 
               
Current Liabilities:
               
Accounts payable
  $ 7,743     $ 4,861  
Deferred revenue
    5,389       4,491  
Accrued liabilities
    3,781       6,267  
Accrued salaries and benefits
    2,316       2,613  
Income tax payable
    38        
Current portion of closure and post-closure obligations
    1,646       803  
Current portion of capital lease obligations
    10       8  
 
           
Total current liabilities
    20,923       19,043  
 
               
Long-term closure and post-closure obligations
    13,598       14,331  
Long-term capital lease obligations
    26       27  
Deferred income taxes
    1,792       577  
 
           
Total liabilities
    36,339       33,978  
 
               
Contingencies and commitments
               
 
               
Stockholders’ Equity
               
Common stock
    183       182  
Additional paid-in capital
    59,273       58,816  
Retained earnings
    30,603       24,100  
 
           
Total stockholders’ equity
    90,059       83,098  
 
           
Total liabilities and stockholders’ equity
  $ 126,398     $ 117,076  
 
           

 

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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
                 
    For the Six Months Ended June 30,  
    2008     2007  
Cash Flows From Operating Activities:
               
Net income
  $ 11,978     $ 10,019  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation, amortization and accretion
    5,671       4,681  
Deferred income taxes
    824       1,501  
Stock-based compensation expense
    415       278  
Accretion of interest income
    (15 )     (107 )
Net loss (gain) on sale of property and equipment
    4       (48 )
Changes in assets and liabilities:
               
Receivables
    (2,262 )     (5,277 )
Income tax receivable
    994       650  
Other assets
    35       (1,310 )
Accounts payable and accrued liabilities
    (1,320 )     685  
Deferred revenue
    898       413  
Accrued salaries and benefits
    (297 )     32  
Income tax payable
    38       334  
Closure and post-closure obligations
    (507 )     (274 )
 
           
Net cash provided by operating activities
    16,456       11,577  
 
               
Cash Flows From Investing Activities:
               
Purchases of property and equipment
    (7,335 )     (8,551 )
Purchases of short-term investments
    (992 )     (18,341 )
Maturities of short-term investments
    3,216       20,323  
Restricted cash
    35       (100 )
Proceeds from sale of property and equipment
    11       15  
 
           
Net cash used in investing activities
    (5,065 )     (6,654 )
 
               
Cash Flows From Financing Activities:
               
Dividends paid
    (5,475 )     (5,467 )
Proceeds from stock option exercises
    23       326  
Tax benefit of common stock options
    20       201  
Other
    (5 )     (3 )
 
           
Net cash used in financing activities
    (5,437 )     (4,943 )
 
               
Increase (decrease) in cash and cash equivalents
    5,954       (20 )
Cash and cash equivalents at beginning of period
    12,563       3,775  
 
           
Cash and cash equivalents at end of period
  $ 18,517     $ 3,755  
 
           

 

6

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