North American waste company US Ecology recorded $113.3 million of total revenue for the first quarter of 2016, down from $136.7 million in the same quarter last year, according to the company’s latest earnings report released Thursday.
Despite the decline, Chairman and CEO Jeff Feeler during an earnings call Friday described “solid financial results that were ahead of our own expectations.” Adjusted earnings per share was recorded at $0.32 for the first quarter, compared to $0.36 per diluted share for the first quarter of 2015.
Feeler reaffirmed the company’s full-year guidance for 2016, which predicts adjusted EBITDA to range from $126 million to $132 million, and diluted earnings per share to range from $1.80 to $1.95.
“Overall business conditions remain consistent with our range of expectations,” Feeler said. “We expected a lower first quarter relative to the same quarter last year, as a result of cycling large event business cleanup projects and exiting 2015 with minimal waste stockpiles at our Canadian facility,”
He noted that declines were partially offset by growth in US Ecology management services, small quantity generator, and industrial services, which were aided by milder winter conditions providing for additional services work, as well as lower overall costs.
Executive Vice President, Chief Financial Officer, and Treasurer Eric Gerratt noted during the earnings call that revenue for the company’s environmental services segment was $81.5 million for first-quarter 2016, down from $87.4 million the prior year. The decline, he said, was driven by a 7 percent decrease in treatment and disposal revenue, as well as a 5 percent decrease in transportation revenue.
Feeler described strong results from the field and industrial services segment, which posted adjusted EBITDA growth of 42 percent from the prior year, after excluding the 2015 divestment of the Allstate Power Vac business.
In Thursday’s press release, Feeler noted that the company’s base business grew 7 percent over the first quarter of last year “on solid performance in verticals such as refining and general manufacturing.” However, as expected, the event business declined as US Ecology finalizes its East Coast remedial cleanup project.
“Overall, business conditions remain consistent with our expectations,” Feeler said in the statement. “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.”
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.
