December
December 5, 2005 | December 5, 2005 | December 1, 2005
December 5, 2005
Contact: Chad Hyslop or Jim Baumgardner at 208.331.8400
chyslop@americanecology.com or jbaumgardner@americanecology.com
AMERICAN ECOLOGY ANNOUNCES 2006 EARNINGS GUIDANCE
2005 Operating Earnings Projected to Increase More than 40% Year over Year
BOISE, Idaho December 5, 2005 – American Ecology Corporation [NASDAQ: ECOL] today announced that management expects the Company to generate earnings between $0.72 and $0.82 per fully diluted share for 2006.
The Company now expects full year 2005 operating income growth to exceed 40 percent and deliver net earnings between $0.85 and $0.90 per fully diluted share. This earnings per share estimate includes a pre-tax gain of $5.3 million from the settlement of a longstanding lawsuit with the State of Nebraska, an $860,000 gain on insurance proceeds, and a $542,000 expense and related increase in the Company’s reserve for a closed site in Texas. Previously issued 2005 guidance projected a greater than 15 percent increase in operating income over the Company’s 2004 results.
“The capital investments, strategic growth and business system initiatives pursued over the last several years really bore fruit for American Ecology in 2005,” President and Chief Executive Officer Stephen A. Romano commented. “We expect solid fourth quarter earnings based on strong business performance at all four disposal facilities,” Romano added.
With a number of unusual events now past, management is adopting fully diluted earnings per share as its key guidance metric to the investment community.
“We look forward to continued growth in operating income in 2006 as we pursue our high-volume, aggressive pricing strategy to seize additional market share,” Romano concluded.
The Company’s forward looking statements contained in this press release reflect a change in the way it has historically provided guidance to the investment community on projected financial performance. While the Company assumes no obligation to update its guidance, it may do so from time to time as circumstances warrant.
The Company will announce fourth quarter and full year 2005 financial results on February 7, 2006. Management will host an investor conference call on February 8, 2006 at 10 a.m. mountain time to discuss financial results for the quarter and year ended. Specifics on the call will be provided in advance.
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 nuclear power plants, steel mills, medical and academic institutions, refineries and chemical manufacturing facilities. Headquartered in Boise, Idaho, American Ecology is the oldest radioactive and hazardous waste services company in the United States, having operated for more than fifty years.
This press release contains forward-looking statements that are based on management’s current expectations, beliefs, and assumptions about the industry and markets in which American Ecology Corporation and its subsidiaries operate. Actual results may differ materially from what is expressed herein and no assurance can be given that the Company will meet its 2005 or 2006 earnings estimates, receive projected waste shipments, increase market share, collect on pending insurance claims, or pay future dividends. For information on other factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.
December 5, 2005
Contact: Chad Hyslop 208.331.8400
chyslop@americanecology.com
AMERICAN ECOLOGY NAMES VICE PRESIDENT OF HAZARDOUS WASTE OPERATIONS
Former Idaho Manager Simon Bell Named to Newly Created Executive Position
BOISE, Idaho, December 5, 2005 – American Ecology Corporation [NASDAQ: ECOL], today announced that its hazardous waste treatment and disposal facilities in Idaho, Nevada and Texas will be managed by a new Vice President of Hazardous Waste Operations. Simon Bell, former manager of the Company’s Grand View, Idaho facility, was promoted to the newly created executive position. Bell was also appointed an officer by the Company’s Board of Directors.
“This organizational expansion reflects the increasing strength of American Ecology’s hazardous waste business over the last several years and the need to bring greater executive focus to growth initiatives at all three of our hazardous waste facilities,” commented American Ecology President and Chief Executive Officer Stephen Romano. “Simon Bell brings demonstrated leadership qualities from his contributions in establishing our Grand View, Idaho operation as one of the nation’s premier hazardous waste treatment and disposal facilities,” Romano added.
Bell joined the company in 2001 as Environmental Manager at the Idaho site. He brings more than fifteen years of industry experience, previously serving as General Manager of a hazardous waste disposal facility in Colorado, and in various environmental management positions in the mining industry in Idaho and South Dakota. Bell holds a B.S. in Geology from Colorado State University.
Ryan McDermott was promoted to General Manager of the Grand View, Idaho facility. McDermott joined the Grand View team in 2005 as Environmental Manager. His prior experience includes stints as a Senior Project Manager with SECOR International in Utah, and as a mining geologist on projects in the United States, Canada, South America, Australia, Africa, Mexico and Russia. McDermott began his career as a water quality scientist with the Idaho Department of Environmental Quality. He holds a B.S. in Geology from Idaho State University.
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 nuclear power plants, steel mills, medical and academic institutions and petro-chemical facilities. Headquartered in Boise, Idaho, American Ecology is the oldest radioactive and hazardous waste services Company in the United States.
This press release contains forward-looking statements that are based on our current expectations, beliefs, estimates, and assumptions about American Ecology Corporation’s industry, markets, and circumstances. Actual results may differ materially from what is expressed herein and no assurance can be given that the company can successfully implement its business plan, generate future earnings, or profitably grow its hazardous waste treatment and disposal business. For information on factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s Report on Form 10-K, and most recent Form 10-Q filed with the Securities and Exchange Commission.
December 1, 2005
Contact: Chad Hyslop 208.331.8400
chyslop@americanecology.com
AMERICAN ECOLOGY INCREASES CLOSURE, POST-CLOSURE RESERVE FOR NON-OPERATING TEXAS FACILITY
Company Also Reports Receipt of Insurance Proceeds
BOISE, Idaho, December 1, 2005 –American Ecology Corporation [NASDAQ: ECOL], today announced a $542,000 increase in its estimate for closure and post-closure costs for a non-operating hazardous waste facility formerly operated by the Company near Winona, Texas. The revised cost estimate and related reserve increase reflect a monitored natural attenuation plan which the Company has determined, in consultation with the State of Texas, to be the most likely long-term remedy. The revised cost estimate includes activities and costs to be incurred through 2036. An independent environmental engineering and consulting firm provided peer review of the Company’s planned activities and estimated future costs.
“This increase in our reserve for the non-operating Winona facility reflects an updated cost estimate required to meet our future obligations at the site, based on the best available information,” said James Baumgardner, Senior Vice President and Chief Financial Officer.
Accounting for closure and post closure liabilities is governed by Statement of Financial Accounting Standard (SFAS) No. 143, “Accounting for Asset Retirement Obligations.” The result of the change in estimated costs and the application of SFAS No. 143 will be an additional $542,000 expense and a commensurate increase in the closure and post closure reserve during the fourth quarter of 2005. Including the $542,000, the updated reserve for the Winona facility is now $1,646,000. Consistent with SFAS No. 143, the Company periodically, but at least annually, reviews closure and post closure reserves for adequacy. The Company will review its remaining closure and post closure reserves at year-end.
The Company also reported proceeds of $1,290,000 received from its property and business interruption insurance carrier in partial resolution of a claim on a 2004 fire at its Robstown, Texas hazardous waste facility. While portions of the claim remain under review by the insurer and additional amounts may be received before year-end or in 2006, the Company will recognize a gain of $860,000 from the recent payment in the fourth quarter of 2005.
“We are working closely with our insurance carrier to finalize the entire claim and believe that the matter will be fully resolved in the first quarter of 2006,” Baumgardner concluded.
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 nuclear power plants, steel mills, medical and academic institutions and petro-chemical facilities. Headquartered in Boise, Idaho, American Ecology is the oldest radioactive and hazardous waste services Company in the United States.
This press release contains forward-looking statements that are based on our current expectations, beliefs, estimates, and assumptions about American Ecology Corporation’s industry, markets, and circumstances. Actual results may differ materially from what is expressed herein and no assurance can be given that the company can successfully implement its business plan, generate future earnings, receive additional insurance proceeds, or that its closure and post-closure reserves for the Winona, Texas facility or any other of the Company’s facilities will be sufficient to cover all future obligations. For information on factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s Report on Form 10-K, and most recent Form 10-Q filed with the Securities and Exchange Commission.