Environmental services provider US Ecology on Thursday reported year-over-year dips in both revenue and net income for the first quarter of 2017.
Company-wide revenue for the three-month period ending March 31 slipped from $113.3 million in 2016 to $110.2 million this year, according to a company press release. US Ecology recorded $5.2 million in net income for the latest quarter, $0.24 per diluted share, down from $7.5 million, $0.35 per diluted share, in the same period last year.
Based in Boise, Idaho, US Ecology provides waste management services to commercial and government entities, including treatment, disposal, and recycling of hazardous and radioactive waste, as well as field and industrial services.
Revenue varied across its business segments, according to the press release. Environmental Services revenue barely changed, at $81.3 million in first-quarter 2017 compared to $81.5 million last year. Field and Industrial Services revenue dropped 9% year over year, from $31.8 million to $28.9 million, due to the expiration and nonrenewal of a contract and “softer overall market conditions,” the company said. It did not identify the contract in question.
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) landed at $23.5 million for the quarter, a 10 percent fall from $26.1 million in 2016. Pro-forma EBITDA, which does not include business development costs, also dropped from $26.2 million to $23.5 million.
“First quarter operating results and adjusted EBITDA were consistent with our expectations as we cycled some completed event projects as well as a Field and Industrial Services contract that was not renewed,” US Ecology Chairman and CEO Jeff Feeler said in the release. “Base Business for the Environmental Services segment continued its positive momentum with a 3% increase over what was a strong first quarter of 2016. As expected, Event Business for the Environmental Services segment was down 9% in the first quarter due to the strength of our Event Business in the first quarter of 2016.”
The company in April also completed a $500 million debt refinancing that is anticipated to produce roughly $15 million in cash interest savings over five years. Management also plans to write off about $5.4 million in unamortized deferred financing expenses associated with payments on the company’s prior credit facility. That will appear as an interest expense in the next-quarter earnings, the press release says.
“Overall, business conditions remain in-line with our expectations,” Feeler stated. “Our underlying Base Business remains strong and we continue to bid on and secure Event Business opportunities, further supporting our view of sequentially stronger quarterly financial performance as we progress through the year.”
