Brief Overview on Company’s Performance: US Ecology Inc. (NASDAQ: ECOL)

BOISE, Idaho, November 19, 2019 – Shares of US Ecology Inc. (NASDAQ: ECOL) showed the bearish trend with a lower momentum of -2.63% to $54.89. The company traded total volume of 310.419K shares as contrast to its average volume of 126.28K shares. The company has a market value of $1.67B and about 30.35M shares outstanding.

US Ecology, Inc. (ECOL) reported total revenue of $155.80M and net income of $15.50M, or $0.70 per diluted share, for the quarter ended June 30, 2019.  Adjusted earnings per diluted share as defined in Exhibit A of this release, was $0.66 per diluted share in the second quarter of 2019, up from $0.61 per diluted share in the second quarter of 2018.

Total revenue for the second quarter of 2019 was $155.80M, up 14% from $136.90M in the same quarter last year and up 9% on an organic basis (excluding the 2018 Dallas/Midland and Winnie acquisitions). Revenue for the Environmental Services (“ES”) segment was up 14% to $112.80M for the second quarter of 2019 from $99.00M in the second quarter of 2018. This increase consisted of 16% growth in treatment and disposal (“T&D”) revenue and 9% growth in transportation revenue compared to the second quarter of 2018. Revenue for the Field and Industrial Services (“FIS”) segment was $43.00M for the second quarter of 2019, up 13% from $38.00M in the same quarter last year, reflecting our acquisition of the Dallas and Midland, Texas locations in the third quarter of 2018 as well as revenue generated from organic growth initiatives.

Gross profit for the second quarter of 2019 was $49.60M, up 20% from $41.40M in the same quarter last year. Gross profit for the ES segment was $43.10M in the second quarter of 2019, up from $35.90M in the same quarter of 2018. ES segment gross profit for the second quarter of 2019 included approximately $2.20M in business interruption insurance recoveries related to hurricane losses at our Texas facility in 2017 and business interruption insurance recoveries related to the Idaho facility. T&D gross margin for the ES segment was 45% in the second quarter of 2019 compared to 42% in the second quarter of 2018.  Gross profit for the FIS segment in the second quarter of 2019 was $6.50M. This compares to gross profit of $5.50M in the second quarter of 2018, representing year-over-year improvement of 17%. FIS gross margin for both the second quarter of 2019 and 2018 was 15%.

Selling, general and administrative (“SG&A”) expense for the second quarter of 2019 was $24.00M compared with $21.20M in the same quarter last year. The increase was due to $2.50M in business development expenses primarily associated with the pending merger with NRC Group Holdings Corp (“NRCG”), increased labor and incentive compensation, increased property taxes, and higher intangible asset amortization. Partially offsetting these cost increases were $4.50M in property insurance recoveries in the second quarter of 2019 related to the Idaho facility accident.

Operating income for the second quarter of 2019 was $25.50M, up 26% from $20.30M in the second quarter of 2018.

Net interest expense for the second quarter of 2019 was $3.40M, up from $2.90M in the second quarter of 2018. The increase was the result of higher outstanding debt levels in the second quarter of 2019 due to the acquisitions completed in 2018 as well as a higher interest rate on the variable portion of our outstanding debt.

Net income for the second quarter of 2019 was $15.50M, or $0.70 per diluted share, compared with net income of $13.20M, or $0.60 per diluted share, in the second quarter of 2018. Adjusted earnings per diluted share were $0.66 per diluted share in the second quarter of 2019 compared with $0.61 per diluted share in the second quarter of 2018.

Adjusted EBITDA for the second quarter of 2019 was $35.40M, up 12% from $31.70M in the same quarter last year. Pro Forma adjusted EBITDA, which excludes business development expenses, was $37.90M in the second quarter of 2019, up nearly 20% from $31.70M in the second quarter of 2018.

The Company offered net profit margin of 7.90% while its gross profit margin was 30.60%. ROE was recorded as 13.30% while beta factor was 0.56. The stock, as of recent close, has shown the weekly downbeat performance of -9.94% which was maintained at -12.85% in this year.

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