US Ecology, Inc. (
Q3 2010 Earnings Call
October 26, 2010; 10:00 am ET
Jim Baumgardner - President & Chief Executive Officer
Jeff Feeler - Chief Financial Officer
Steve Welling - Senior Vice President of Sales and Marketing
Simon Bell - Vice President of Operations
Rich Wesolowski – Sidoti & Company
Ted Kundtz - Needham
Patt Mclaughlin – UBS
Michael Hoffman – Wunderlich Securities
Edward Walbridge – Aragon LLC
Previous Statements by ECOL
» US Ecology, Inc. Q2 2010 Earnings Call Transcript
» US Ecology, Inc. Q1 2010 Earnings Call Transcript
» American Ecology Q4 2008 Earnings Call Transcript
» American Ecology Q3 2008 Earnings Call Transcript
Good day ladies and gentlemen, and welcome to the Third Quarter 2010 US Ecology Earnings Conference Call. My name is Michelle and I will be your operator for today. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I would now like to turn your conference over to your host Mr. Jeff Feeler, Chief Financial Officer. Please proceed, Sir.
Good morning. Joining me today is President and Chief Executive Officer, Jim Baumgardner; Senior Vice President of Sales and Marketing, Steve Welling and Vice President of Operations, Simon Bell.
Before we begin, please note that certain statements contained in this conference call that do not describe historical facts are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Since forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. Factors that could cause results to differ materially from those expressed include, but are not limited to those discussed in the company’s filings with the Securities and Exchange Commission.
Management cannot control or predict many factors that determine future results. Listeners should not place undue reliance on forward-looking statements, which reflect management’s views only on the date such statements are made. We undertake no obligation to revise or update any forward-looking statements or to make other forward-looking statements whether as a result of new information, future events or otherwise.
For those joining by webcast, we will have momentarily our presentation up live; we are having some technical difficulties. For those, you can access our webcast on our website at www.usecology.com in the intervening time.
With that, I will now turn the call over to Jim Baumgardner.
Thank you, Jeff, and good morning everyone. I’ll start this morning’s call with a quick overview of the quarterly results released earlier today, and then I’ll turn the call back to Jeff to give a more detailed review of the financial statements. Also I have Steve Welling, our EVP of Sales, provide a general market update, Simon’s going to update us on our capital spending initiatives. And then I’ll provide an overview of our business outlook for the remainder of 2010. And close our prepared remarks with an update on the pending acquisition of Stablex and the Siemens facility in California.
After our prepared remarks, we will open the call up to questions and comments. For those following along on the PowerPoint presentation, as soon as it’s available, I’ll refer you to slide five for the third quarter highlights. Much like we had anticipated, the third quarter of 2010 saw substantial improvement over the first two quarters. For the third quarter of 2010, net income was $3.9 million or $0.22 per diluted share, as compared to $4.2 million or $0.23 per fully diluted share posted in the third quarter of 2009. The third quarter of 2010 included approximately $500,000 of business development expenses associated with the pending acquisitions were about $0.02 per share.
During the third quarter, we disposed 237,000 tons of material equally in the total volume disposed in the entire first half of 2010. The higher revenue in volume resulted from the GE Hudson River project, shipments under our Army Crop contract and several other smaller to mid size cleanups that shipped during the quarter.
While Base business was down 3% during the quarter as compared with the third quarter of 2009, full year-to-date Base business was relatively flat. Our Event business was up 14% during the quarter when compared to the third quarter last year due to contributions from the previously mentioned GE contract, Army Crop contract and various other projects.
Jeff will provide more details on the financials in a minute, but I wanted to give you a quick status on our pending acquisitions. First, our pending acquisition of Stablex Canada is progressing well and we expect the transaction to close this coming Friday. That means this time next week, we expect to own the Stablex treatment and landfill near Montreal, Canada.
The more we learn about Stablex, the more excited we are to add this premier hazardous waste facility to the US Ecology family facilities, in particular we have been impressed with the people and their commitment to the business.
Our acquisition of the Siemens hazardous liquids treatment facility near Los Angeles and Vernon, California is also progressing, albeit, more slowly that we like. There are several conditions that need to be met prior to closing including regulatory approval and the resolution of a minor environmental matter. But we continue to believe that this acquisition will close by the end of the year, however, closing is depended upon a couple of matters that are currently outside our control.
We are very excited to add these two top-notch facilities to our family of facilities, but I will give you a little more on that later. For now, I will turn the call back to Jeff to provide a more detailed review of the financial results released earlier today. Jeff?