AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
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2008 2007
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Revenue $ 46,219 $ 38,964
Transportation costs 22,058 17,171
Other direct operating costs 10,717 10,279
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Gross profit 13,444 11,514
Selling, general and administrative expenses 3,919 3,599
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Operating income 9,525 7,915
Other income (expense):
Interest income 63 211
Interest expense (1) (1)
Other 65 4
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Total other income 127 214
Income before income taxes 9,652 8,129
Income tax expense 3,784 3,194
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Net income $ 5,868 $ 4,935
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Earnings per share:
Basic $ 0.32 $ 0.27
Diluted $ 0.32 $ 0.27
Shares used in earnings per share calculation:
Basic 18,229 18,209
Diluted 18,277 18,253
Dividends paid per share $ 0.15 $ 0.15
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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31,
2008 December 31,
(unaudited) 2007
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Assets
Current Assets:
Cash and cash equivalents $ 9,365 $ 12,563
Short-term investments 999 2,209
Receivables, net 37,998 29,422
Prepaid expenses and other current assets 3,039 3,034
Income tax receivable - 994
Deferred income taxes 896 667
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Total current assets 52,297 48,889
Property and equipment, net 64,303 63,306
Restricted cash 4,818 4,881
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Total assets $ 121,418 $ 117,076
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Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable $ 4,813 $ 4,861
Deferred revenue 4,214 4,491
Accrued liabilities 5,352 6,236
Accrued salaries and benefits 1,699 2,613
Customer advances - 31
Income tax payable 2,874 -
Current portion of closure and post-closure
obligations 1,314 803
Current portion of capital lease obligations 10 8
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Total current liabilities 20,276 19,043
Long-term closure and post-closure obligations 13,965 14,331
Long-term capital lease obligations 28 27
Deferred income taxes 716 577
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Total liabilities 34,985 33,978
Contingencies and commitments
Stockholders’ Equity
Common stock 182 182
Additional paid-in capital 59,020 58,816
Retained earnings 27,231 24,100
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Total stockholders’ equity 86,433 83,098
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Total liabilities and stockholders’ equity $ 121,418 $ 117,076
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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
For the Three
Months Ended
March 31,
----------------
2008 2007
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Cash Flows From Operating Activities:
Net income $ 5,868 $ 4,935
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 2,838 2,351
Deferred income taxes (90) 1,650
Stock-based compensation expense 201 143
Accretion of interest income (14) (60)
Net gain on sale of property and equipment (2) -
Changes in assets and liabilities:
Receivables (8,576) (1,432)
Income tax receivable 994 650
Other assets (5) (238)
Accounts payable and accrued liabilities (1,026) (587)
Deferred revenue (277) 57
Accrued salaries and benefits (914) (453)
Income tax payable 2,874 673
Closure and post-closure obligations (164) (119)
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Net cash provided by operating activities 1,707 7,570
Cash Flows From Investing Activities:
Purchases of property and equipment (3,464) (3,775)
Purchases of short-term investments (992) (11,943)
Maturities of short-term investments 2,216 10,364
Restricted cash 63 (61)
Proceeds from sale of property and equipment 9 -
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Net cash used in investing activities (2,168) (5,415)
Cash Flows From Financing Activities:
Dividends paid (2,737) (2,734)
Proceeds from stock option exercises 1 326
Tax benefit of common stock options 2 216
Other (3) (2)
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Net cash used in financing activities (2,737) (2,194)
Decrease in cash and cash equivalents (3,198) (39)
Cash and cash equivalents at beginning of period 12,563 3,775
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Cash and cash equivalents at end of period $ 9,365 $ 3,736
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Contact Information: Contact: Alison Ziegler Cameron Associates (212) 554-5469 alison@cameronassoc.com www.americanecology.com