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,
--------------------- --------------------
2006 2005 2006 2005
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Revenues $ 37,928 $ 23,263 $ 116,838 $ 79,387
Transportation costs 18,630 6,831 47,829 22,302
Other direct operating costs 9,851 8,425 32,420 26,048
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Gross profit 9,447 8,007 36,589 31,037
Selling, general and
administrative expenses 3,389 3,531 12,835 12,506
Business interruption insurance
claim - (860) (704) (901)
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Operating income 6,058 5,336 24,458 19,432
Other income (expense)
Interest income 223 222 831 564
Interest expense - (33) (8) (173)
Gain on litigation settlement - - - 5,327
Other 129 (44) 587 (36)
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Total other income 352 145 1,410 5,682
Income before tax 6,410 5,481 25,868 25,114
Income tax expense 2,620 2,341 9,979 9,676
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Net income $ 3,790 $ 3,140 $ 15,889 $ 15,438
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Earnings per share:
Basic $ 0.21 $ 0.18 $ 0.88 $ 0.88
Dilutive $ 0.21 $ 0.17 $ 0.87 $ 0.86
Shares used in earnings
per share calculation:
Basic 18,146 17,721 18,071 17,570
Dilutive 18,226 18,115 18,202 17,950
Dividends paid per share $ 0.15 $ 0.15 $ 0.60 $ 0.30
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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December 31, December 31,
2006 2005
------------ ------------
Assets
Current Assets:
Cash and cash equivalents $ 3,775 $ 3,641
Short-term investments 6,120 16,214
Receivables, net 27,692 13,730
Prepaid expenses and other current assets 2,639 3,110
Income tax receivable 650 1,248
Deferred income taxes 1,302 6,714
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Total current assets 42,178 44,657
Property and equipment, net 55,460 40,896
Restricted cash 4,691 84
Deferred income taxes 1,712 3,021
Other assets - 738
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Total assets $ 104,041 $ 89,396
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Liabilities And Stockholders’ Equity
Current Liabilities:
Line of credit $ - $ -
Accounts payable 6,866 3,665
Deferred revenue 3,612 1,261
Accrued liabilities 3,544 3,036
Accrued salaries and benefits 1,943 2,549
Customer advances 1,866 1,535
Current portion of closure and post
closure obligations 656 1,127
Current portion of long-term debt 6 -
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Total current liabilities 18,493 13,173
Long-term closure and post closure obligations 12,160 10,560
Long-term debt 24 -
Other long-term liabilities 9 1,777
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Total liabilities 30,686 25,510
Contingencies and commitments
Stockholders’ Equity
Common stock 182 177
Additional paid-in capital 57,532 53,140
Retained earnings 15,641 10,569
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Total stockholders’ equity 73,355 63,886
------------ ------------
Total liabilities and stockholders’ equity $ 104,041 $ 89,396
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AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
For the Year Ended
December 31,
------------------------
2006 2005
----------- -----------
Cash Flows From Operating Activities:
Net income $ 15,889 $ 15,438
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 8,093 6,775
Deferred income taxes 6,721 8,166
Stock-based compensation expense 392 106
Net (gain) loss on sale of property and
equipment (167) 123
Accretion of interest income (333) (399)
Gain on settlement of litigation - (5,327)
Changes in assets and liabilities:
Receivables (13,962) (4,610)
Income tax receivable 598 (1,063)
Other assets 1,207 (2,063)
Deferred revenue 2,351 537
Accounts payable and accrued liabilities 1,581 3,253
Accrued salaries and benefits (606) 616
Closure and post closure obligations (1,051) (1,400)
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Net cash provided by operating activities 20,713 20,152
Cash Flows From Investing Activities:
Purchases of short-term investments (32,482) (65,521)
Purchases of property and equipment (19,758) (19,431)
Restricted cash (4,607) (2)
Maturities of short-term investments 42,909 60,673
Proceeds from sale of property and equipment 175 1,265
Proceeds from litigation settlement - 11,805
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Net cash used in investing activities (13,763) (11,211)
Cash Flows From Financing Activities:
Dividends paid (10,817) (5,291)
Payment of indebtedness (4) (4,191)
Proceeds from stock option exercises 2,003 1,255
Tax benefit of common stock options 2,002 767
----------- -----------
Net cash used in financing activities (6,816) (7,460)
Decrease in cash and cash equivalents 134 1,481
Cash and cash equivalents at beginning of period 3,641 2,160
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Cash and cash equivalents at end of period $ 3,775 $ 3,641
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Contact Information: Contact: Alison Ziegler Cameron Associates (212) 554-5469 Email Contact www.americanecology.com