AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
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2008 2007 2008 2007
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Revenue $ 41,051 $ 39,427 $ 131,786 $ 119,658
Transportation costs 20,477 18,935 61,786 55,866
Other direct operating costs 10,553 10,224 32,957 30,357
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Gross profit 10,021 10,268 37,043 33,435
Selling, general and
administrative expenses 3,209 3,636 10,860 10,709
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Operating income 6,812 6,632 26,183 22,726
Other income (expense):
Interest income 138 189 312 550
Interest expense (2) - (6) (2)
Other 78 10 237 62
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Total other income 214 199 543 610
Income before income taxes 7,026 6,831 26,726 23,336
Income tax expense 2,755 2,313 10,477 8,799
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Net income $ 4,271 $ 4,518 $ 16,249 $ 14,537
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Earnings per share:
Basic $ 0.23 $ 0.25 $ 0.89 $ 0.80
Diluted $ 0.23 $ 0.25 $ 0.89 $ 0.80
Shares used in earnings
per share calculation:
Basic 18,261 18,220 18,241 18,215
Diluted 18,330 18,257 18,301 18,255
Dividends paid per share $ 0.18 $ 0.15 $ 0.48 $ 0.45
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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30,
2008 December 31,
(unaudited) 2007
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Assets
Current Assets:
Cash and cash equivalents $ 19,219 $ 12,563
Short-term investments - 2,209
Receivables, net 29,730 29,422
Prepaid expenses and other current assets 2,839 3,034
Income tax receivable 367 994
Deferred income taxes 1,312 667
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Total current assets 53,467 48,889
Property and equipment, net 67,198 63,306
Restricted cash 4,873 4,881
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Total assets $ 125,538 $ 117,076
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Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 5,041 $ 4,861
Deferred revenue 4,895 4,491
Accrued liabilities 4,089 6,267
Accrued salaries and benefits 2,196 2,613
Current portion of closure and post-closure
obligations 2,139 803
Current portion of capital lease obligations 10 8
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Total current liabilities 18,370 19,043
Long-term closure and post-closure obligations 12,375 14,331
Long-term capital lease obligations 23 27
Deferred income taxes 2,290 577
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Total liabilities 33,058 33,978
Contingencies and commitments
Stockholders' Equity
Common stock 183 182
Additional paid-in capital 60,708 58,816
Retained earnings 31,589 24,100
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Total stockholders' equity 92,480 83,098
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Total liabilities and stockholders' equity $ 125,538 $ 117,076
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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
For the Nine
Months Ended
September 30,
------------------
2008 2007
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Cash Flows From Operating Activities:
Net income $ 16,249 $ 14,537
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 8,195 7,039
Deferred income taxes 1,068 1,415
Stock-based compensation expense 629 420
Accretion of interest income (15) (140)
Net loss (gain) on sale of property and equipment 19 (58)
Changes in assets and liabilities:
Receivables (308) (908)
Income tax receivable 627 650
Other assets 195 (1,648)
Accounts payable and accrued liabilities (2,128) 542
Deferred revenue 404 712
Accrued salaries and benefits (417) 102
Income tax payable - 1
Closure and post-closure obligations (1,546) (416)
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Net cash provided by operating activities 22,972 22,248
Cash Flows From Investing Activities:
Purchases of property and equipment (11,055) (13,264)
Purchases of short-term investments (992) (22,700)
Maturities of short-term investments 3,216 26,770
Restricted cash 8 (150)
Proceeds from sale of property and equipment 11 92
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Net cash used in investing activities (8,812) (9,252)
Cash Flows From Financing Activities:
Dividends paid (8,760) (8,202)
Proceeds from stock option exercises 1,049 328
Tax benefit of common stock options 215 203
Other (8) (5)
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Net cash used in financing activities (7,504) (7,676)
Increase in cash and cash equivalents 6,656 5,320
Cash and cash equivalents at beginning of period 12,563 3,775
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Cash and cash equivalents at end of period $ 19,219 $ 9,095
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Contact Information: Contact: Alison Ziegler Cameron Associates (212) 554-5469 alison@cameronassoc.com www.americanecology.com