|
April April 5, 2004 | April 6, 2004 | April 20, 2004
April 5, 2004 RETIRED FOUR STAR GENERAL JIMMY ROSS STANDS FOR ELECTION TO AMERICAN ECOLOGY BOARD 2004 Directors Slate Announced For Vote at May 20 Annual Shareholders Meeting “General Ross offers an important independent perspective to our Board,” Romano stated, adding “We also look forward to his advice and assistance in expanding American Ecology’s business serving the U.S. Department of Defense and other federal agencies.” General Ross was nominated to fill a Board seat being vacated by Roger Hickey, who is not standing for re-election. Six current directors -- David Anderson, Rotchford Barker, Roy Eliff, Edward Heil, Stephen Schutt, and Romano -- join General Ross on the 2004 Board slate. General Ross retired from the United States Army as Commander of the U.S. Army Materiel Command in Virginia. As the Four-Star General in charge of the Army’s research, development, testing, acquisition and sustainment program, General Ross managed 95,000 military and civilian personnel in 40 states and six foreign countries. Among his military assignments, General Ross also served as Army Deputy Chief of Staff for Logistics and Commanding General of the Army’s Depot Systems Command. General Ross has served in command assignments worldwide including two combat tours in Vietnam. Following retirement, General Ross served as Chief Operating Officer for the American Red Cross where he managed overall business operations and a $2.5 billion budget. Roger Hickey joined the American Ecology Board in 2002. He leaves to devote his energies to other business enterprises, including his work as President of Chicago Partners, LLC. “American Ecology’s successful turnaround plan substantially benefited from Roger’s strategic guidance,” Romano noted, concluding “We look forward to his continued interest in the Company as a shareholder.” 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, 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 can successfully implement its growth strategy, generate future earnings, or expand its services to the U.S. Department of Defense. 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 filed with the Securities and Exchange Commission.
April 6, 2004 AMERICAN ECOLOGY ANNOUNCES SCHEDULE FOR FIRST QUARTER RESULTS AND 2004 INVESTOR CONFERENCE CALLS First Quarter Results Set For April 20, 2004 Followed By Investor Call On April 21 Chief Executive Officer Stephen Romano, Chief Financial Officer James Baumgardner, and Controller Michael Gilberg will present first quarter financial results, discuss operations and answer questions during the call. Interested parties may send questions in advance to info@americanecology.com, or by facsimile to 208.331.7900. Questions will also be invited after the presentations. To join the call, dial 888.747.3446. Participants will be asked to provide their name and affiliation. American Ecology’s 2004 schedule for quarterly results and investor conference calls follows:
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.
April 20, 2004 AMERICAN ECOLOGY POSTS $3.4 MILLION FIRST QUARTER OPERATING INCOME Company Upgrades 2004 Outlook Operating income, a key measure of financial performance, increased from $290,000 for the first quarter last year to $3.4 million for the first quarter of 2004. The results marked the ninth consecutive quarter of positive operating income. For the second consecutive quarter, each of the Company’s four disposal facilities posted positive operating income and showed improved operating income over the same quarter last year. First quarter 2004 revenue reached $13.9 million or 29% higher than the $10.8 million in revenue for the first quarter of 2003. A combination of higher waste volumes and higher average selling prices yielded the increase in quarterly revenue. At the Company’s Idaho site, a slightly lower average selling price was more than offset by higher volume, allowing the site to increase revenue by almost 30%. At the Company’s Nevada and Texas facilities, average selling prices increased due to a more favorable mix of higher-priced niche services generating increased revenue from the first quarter of last year at both sites. The Company’s rate-regulated Washington facility also posted another strong quarter. “Increased waste volume and a higher overall average selling price produced higher revenue,” stated Baumgardner, adding, “Given the largely fixed cost nature of our business, this higher revenue produced improved fall through to the bottom line and another solid quarter of operating earnings.” Selling, general & administrative expenses (SG&A) for the first quarter decreased to $2.9 million, or 21% of revenue, compared to SG&A of $4.5 million or 42% of revenue in the first quarter last year. The decrease was primarily due to $1.5 million in Ward Valley litigation expenses in 2003 which did not reoccur in 2004. The Company recognized $149,000 of income at its discontinued Oak Ridge, Tennessee operation. This gain reflected collection of aged accounts receivable in excess of the Oak Ridge facility’s allowance for doubtful accounts. During the quarter, the Company entered into a non-binding letter of intent with a potential new buyer for the Oak Ridge facility. Although no assurance can be given that a transaction will be consummated, disposing of the Oak Ridge asset remains a top management priority. “Solid operating income and cash flow in the first quarter of 2004 continued to strengthen the Company’s overall financial condition,” Baumgardner concluded. During the first quarter of 2004, the Company redeemed a warrant to purchase 1,349,843 shares of common stock for $5.5 million or an equivalent of $4.07 per underlying common share. The redeemed warrant represented approximately 8% of the Company’s outstanding shares and eliminated the Company’s sole outstanding warrant to acquire common stock. At quarter end the Company had $10.8 million of cash on hand. Also during the quarter, the Company recognized $1.2 million of non-cash income tax expense as it utilized the benefit of its net operating loss carry-forwards and reduced the related deferred tax asset. The Company did not recognize tax expense in 2003 due to the tax loss resulting from the $21 million write-off of its Ward Valley asset. At March 31, 2004 the Company had an approximately $16 million valuation allowance against $23 million of gross deferred tax assets, consisting primarily of net operating loss carry-forwards, resulting in a $7 million net deferred tax asset. The Company reviews the deferred tax asset and related valuation allowance for appropriateness at least annually. “The first quarter of 2004 highlights the underlying strength of our core disposal assets” stated President and Chief Executive Officer Stephen Romano. “By combining our high throughput commodity business with increased delivery of higher margin niche services, American Ecology simultaneously increased waste volumes as well as overall average selling price.” The Company previously reported that it expected 2004 operating income to exceed the 9% growth in operating income achieved in 2003. Management is upgrading its 2004 outlook and now expects 2004 operating income to increase by more than 15% over 2003 results. “Efficient performance by all four American Ecology disposal facilities combined with a favorable sales outlook and improving national economy lead us to upgrade our operating income forecast,” Romano stated, concluding, “We now believe greater than 15% growth in operating income for 2004 is achievable.” The Company’s first quarter 2004 investor conference call will be held Wednesday, April 21, 2004 (tomorrow) at 10:00 am Mountain Time. Mr. Romano, Mr. Baumgardner, and Controller Michael Gilberg will host the call. Interested parties may submit questions in advance to info@americanecology.com, or by facsimile to 208.331.7900. To join the call, dial 1.888.747.3446. Participants will be asked to provide their name and affiliation. 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, the Company 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, 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 can successfully implement its growth strategy, meet its 2004 operating income forecast, prevail in pending litigation to recover monetary damages, or complete its discontinued operation obligations at the Oak Ridge facility within established reserves. For information on factors that could cause actual results to differ from expectations, or regarding income taxes, please refer to American Ecology Corporation’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. AMERICAN ECOLOGY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) ($ in 000’s except per share amounts)
AMERICAN ECOLOGY CORPORATION CONSOLIDATED
BALANCE SHEETS (Unaudited) ($ in 000’s except per share
amounts)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||