Jeremy L. Dillon
RW Monitor
5/1/2015
US Ecology reported a $5.9 million net income for the first quarter of 2015, down from its $9.4 million net income from the first quarter of 2014, but within the company’s expectations, US Ecology said this week. The company experienced an exceptionally strong first quarter of 2014, so a decrease in net income was expected, US Ecology President and CEO Jeff Feeler said. “Despite adverse weather conditions impacting eastern North America, US Ecology delivered a strong quarter in line with our expectations,” Feeler said in a statement. “The strong performance was led by our Environmental Services segment. Our Field and Industrial Services segment improved significantly year-over-year on a pro forma basis due to higher quality revenue and ongoing optimization initiatives. As expected, the legacy US Ecology business was down compared to an exceptionally strong first quarter of 2014 reflecting a 17 percent decline in Event Business that was partially offset by a seven percent increase in Base Business.”
Operating income for the first quarter of 2015 was $15.0 million, down three percent from $15.5 million in the first quarter of 2014. Total revenue for the first quarter of 2015 was $136.7 million, up from $53.4 million in the same quarter last year. The 2014 revenue, though, did not include the recently acquired EQ Company revenue, which accounted for $84.7 million of the first quarter revenue. Adjusted EBITDA for the first quarter of 2015 was $27.2 million, up 34 percent from $20.3 million in the same period last year.
The company saw the greatest change within its government, refinery and private cleanup categories in the first quarter, Feeler said during the company’s earning call this week. “Our government cleanup business increased 100 percent in the first quarter of 2015, primarily due to higher disposal revenue from the US Army Corps of Engineers,” he said. “Treatment and disposal revenue from the Army Corps was significantly higher than the first quarter of 2014 based off a significant increase in volume. This increase was partially off-set by lower volumes of other government related cleanup projects.”
Company Reaffirms 2015 Outlook
The steady quarter gave US Ecology the confidence to reaffirm its 2015 earnings outlook. Back in February, the company predicted revenue of $585 million to $620 million and adjusted EBITDA of $137 to $143 million in 2015. “2015 is off to a solid start, and in line with our expectations,” Feeler said. “Business conditions remain strong, and we are seeing continued opportunities emerge for the summertime cleanup. Many projects have already been secured, and we are actively bidding on others. As a result, we are reaffirming our 2015 guidance with adjusted EBITDA ranging from $137 million to $143 million.”
