AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended For the Year Ended
December 31, December 31,
-------------------- --------------------
2007 2006 2007 2006
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Revenue $ 45,862 $ 37,928 $ 165,520 $ 116,838
Transportation costs 23,460 18,630 79,326 47,829
Other direct operating costs 10,324 9,851 40,681 32,420
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Gross profit 12,078 9,447 45,513 36,589
Selling, general and
administrative expenses 3,937 3,389 14,646 12,835
Business interruption insurance
claim - - - (704)
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Operating income 8,141 6,058 30,867 24,458
Other income (expense):
Interest income 182 223 732 831
Interest expense (1) - (3) (8)
Other 60 129 122 587
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Total other income 241 352 851 1,410
Income before income taxes 8,382 6,410 31,718 25,868
Income tax expense 3,523 2,620 12,322 9,979
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Net income $ 4,859 $ 3,790 $ 19,396 $ 15,889
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Earnings per share:
Basic $ 0.27 $ 0.21 $ 1.06 $ 0.88
Diluted $ 0.27 $ 0.21 $ 1.06 $ 0.87
Shares used in earnings per
share calculation:
Basic 18,223 18,146 18,217 18,071
Diluted 18,262 18,226 18,257 18,202
Dividends paid per share $ 0.15 $ 0.15 $ 0.60 $ 0.60
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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2007 December 31,
(unaudited) 2006
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Assets
Current Assets:
Cash and cash equivalents $ 12,563 $ 3,775
Short-term investments 2,209 6,120
Receivables, net 29,422 27,692
Prepaid expenses and other current assets 3,034 2,639
Income tax receivable 994 650
Deferred income taxes 667 2,166
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Total current assets 48,889 43,042
Property and equipment, net 63,306 55,460
Restricted cash 4,881 4,691
Deferred income taxes - 848
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Total assets $ 117,076 $ 104,041
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Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable $ 4,861 $ 6,866
Deferred revenue 4,491 3,612
Accrued liabilities 6,236 3,544
Accrued salaries and benefits 2,613 1,943
Customer advances 31 1,866
Current portion of closure and post-closure
obligations 803 656
Current portion of long-term debt 8 6
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Total current liabilities 19,043 18,493
Long-term closure and post-closure obligations 14,331 12,160
Long-term debt 27 24
Deferred income taxes 577 -
Other long-term liabilities - 9
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Total liabilities 33,978 30,686
Contingencies and commitments
Stockholders’ Equity
Common stock 182 182
Additional paid-in capital 58,816 57,532
Retained earnings 24,100 15,641
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Total stockholders’ equity 83,098 73,355
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Total liabilities and stockholders’ equity $ 117,076 $ 104,041
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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
For the Year Ended
December 31,
------------------
2007 2006
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Cash Flows From Operating Activities:
Net income $ 19,396 $ 15,889
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 10,009 8,093
Deferred income taxes 2,924 6,721
Stock-based compensation expense 743 392
Accretion of interest income (158) (333)
Net gain on sale of property and equipment (26) (167)
Changes in assets and liabilities:
Receivables (1,730) (13,962)
Income tax receivable (344) 598
Other assets (395) 1,207
Accounts payable and accrued liabilities (659) 1,581
Deferred revenue 879 2,351
Accrued salaries and benefits 670 (606)
Closure and post-closure obligations (659) (1,051)
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Net cash provided by operating activities 30,650 20,713
Cash Flows From Investing Activities:
Purchases of short-term investments (24,901) (32,482)
Purchases of property and equipment (15,430) (19,758)
Restricted cash (190) (4,607)
Maturities of short-term investments 28,970 42,909
Proceeds from sale of property and equipment 92 175
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Net cash used in investing activities (11,459) (13,763)
Cash Flows From Financing Activities:
Dividends paid (10,937) (10,817)
Proceeds from stock option exercises 328 2,003
Tax benefit of common stock options 213 2,002
Other (7) (4)
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Net cash used in financing activities (10,403) (6,816)
Increase in cash and cash equivalents 8,788 134
Cash and cash equivalents at beginning of period 3,775 3,641
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Cash and cash equivalents at end of period $ 12,563 $ 3,775
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Contact Information: Contact: Alison Ziegler Cameron Associates (212) 554-5469 alison@cameronassoc.com www.americanecology.com