Exhibit 99.1
December
2010
2010
1
During the course of this presentation the Company will be making forward-looking statements (as
such term is defined in the Private Securities Litigation Reform Act of 1995) that are based on our
current expectations, beliefs and assumptions about the industry and markets in which US
Ecology, Inc. and its subsidiaries operate. Because such statements include risks and
uncertainties, actual results may differ materially from what is expressed herein and no assurance
can be given that the Company will meet its 2010 earnings estimates, successfully execute its
growth strategy, or declare or pay future dividends. For information on other factors that could
cause actual results to differ materially from expectations, please refer to US Ecology, Inc.’s
(formally known as American Ecology Corporation) December 31, 2009 Annual Report on Form 10
- -K and other reports file with the Securities and Exchange Commission. Many of the factors that
will determine the Company’s future results are beyond the ability of management to control or
predict. Participants should not place undue reliance on forward-looking statements, reflect
management’s views only as of the date hereof. The Company undertakes no obligation to revise
or update any forward-looking statements, or to make any other forward-looking statements,
whether as a result of new information, future events or otherwise.
such term is defined in the Private Securities Litigation Reform Act of 1995) that are based on our
current expectations, beliefs and assumptions about the industry and markets in which US
Ecology, Inc. and its subsidiaries operate. Because such statements include risks and
uncertainties, actual results may differ materially from what is expressed herein and no assurance
can be given that the Company will meet its 2010 earnings estimates, successfully execute its
growth strategy, or declare or pay future dividends. For information on other factors that could
cause actual results to differ materially from expectations, please refer to US Ecology, Inc.’s
(formally known as American Ecology Corporation) December 31, 2009 Annual Report on Form 10
- -K and other reports file with the Securities and Exchange Commission. Many of the factors that
will determine the Company’s future results are beyond the ability of management to control or
predict. Participants should not place undue reliance on forward-looking statements, reflect
management’s views only as of the date hereof. The Company undertakes no obligation to revise
or update any forward-looking statements, or to make any other forward-looking statements,
whether as a result of new information, future events or otherwise.
Important assumptions and other important factors that could cause actual results to differ
materially from those set forth in the forward-looking information include a loss of a major
customer, compliance with and changes to applicable laws and regulations, market conditions,
pricing and production rates for the thermal recycling service at our Texas facility, access to cost
effective transportation services, access to insurance and other financial assurances, loss of key
personnel, lawsuits, adverse economic conditions including a tightened credit market, the timing
or level of government funding or competitive conditions, incidents that could limit or suspend
specific operations, our ability to perform under required contracts, our willingness or ability to pay
dividends and our ability to integrate Stablex or any other potential acquisitions.
materially from those set forth in the forward-looking information include a loss of a major
customer, compliance with and changes to applicable laws and regulations, market conditions,
pricing and production rates for the thermal recycling service at our Texas facility, access to cost
effective transportation services, access to insurance and other financial assurances, loss of key
personnel, lawsuits, adverse economic conditions including a tightened credit market, the timing
or level of government funding or competitive conditions, incidents that could limit or suspend
specific operations, our ability to perform under required contracts, our willingness or ability to pay
dividends and our ability to integrate Stablex or any other potential acquisitions.
2
} Founded in 1952 and headquartered in Boise, ID
} Own & operate hazardous and radioactive waste
treatment and disposal facilities
treatment and disposal facilities
} Provide safe, secure & cost-effective hazardous
and radioactive materials solutions to industry &
government
and radioactive materials solutions to industry &
government
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Large & Loyal Customer Base
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Market Cap | $300 million* |
Recent Price: | $16.37* |
52 Wk. Range: | $12.98 - $17.67 |
Shares Out./Float: | 18.2 / 15.5 million |
Dividend/Yield: | $0.72 / 4.4% |
Revenue TTM | $89 million** |
SG&A % of Revenue: | 17% ** |
Cash/Investments: | $30.4 million** |
Term Debt: | -0- |
Avail. line of credit: | $16 million |
* At 11-22-2010 ** at 9-30-2010
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4 Sites: US Ecology
5 Sites: Waste Management
7 Sites: Clean Harbors
5 Sites: Others *
2 Sites: Energy Solutions
3 Commercial Nuclear Waste Sites in US
21 Hazardous Waste Sites in US & Canada
Grand View, ID
Robstown, TX
Blainville, QC
2008 disposed volume, not capacity based on
Various Industry Sources
Various Industry Sources
} Estimated $5 billion per year market
} Landfill revenue represents
14% of market
14% of market
} Historically ~3.5M tons/year
◦ Down in 2009 due to economy
◦ Stronger in 2010, but still sluggish
} Volumes Fluctuate
◦ Clean-up projects (Events)
◦ Industrial production levels (Base)
} Regulatory Drivers
◦ Increased enforcement
◦ Changes in laws, regulation, and rules
◦ Court orders
} Commercial Drivers
◦ Alternative Use (e.g. real estate development)
◦ Plant expansion
◦ Compliance
} Government sponsored clean-ups
◦ Department of Defense, States, EPA
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High Barriers to Entry
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} Remote, geologically superior
desert site
desert site
} Rail served
} Specializes in high volume
treatment or direct disposal
projects
treatment or direct disposal
projects
} “Hybrid” site accepts low-activity
radioactive and hazardous waste
radioactive and hazardous waste
} Years of permitted capacity
Premier US Hazardous Waste Site
} Specializes in difficult to treat
waste streams
waste streams
} Adding waste handling
infrastructure to improve
operating efficiencies & service
infrastructure to improve
operating efficiencies & service
◦ Added disposal space in 2010
◦ Constructing new treatment and
drum handling building
drum handling building
} 10+ years of permitted capacity
Serving the Gulf Coast Oil & Gas Market
} Recycles refinery tank
bottoms, cracking catalyst &
other oil bearing wastes
bottoms, cracking catalyst &
other oil bearing wastes
◦ Industrial reuse of catalyst
◦ Used oil resold into market
} Key advantage: Internalize
costs of recycling residuals:
ash & liquids
costs of recycling residuals:
ash & liquids
} Constructing new catalyst
handling system
handling system
Nationwide Recycling
} Superb natural conditions for
disposal
disposal
} Specializing in containers and
difficult to treat waste streams
difficult to treat waste streams
} State-of-the-art treatment
building with high capacity drum
handling capability
building with high capacity drum
handling capability
} New disposal space under
construction - Q1 2011 est.
completion
construction - Q1 2011 est.
completion
Great Desert Location Serving CA/AZ
Markets
Markets
} Regulated monopoly for low-
level radioactive waste in 11
western states
level radioactive waste in 11
western states
} Market pricing for certain
naturally occurring radioactive
material
naturally occurring radioactive
material
} Company’s “Cash Cow” -
limited growth potential
limited growth potential
Steady, Rate-Regulated Earnings
} Superb natural conditions
for disposal
for disposal
} Specializing in difficult to
treat waste streams
treat waste streams
} State-of-the-art treatment
building and proprietary
process
building and proprietary
process
Stablex - Serving NE U.S., Canada
} Purchase price: $80 million Canadian dollars ($77.3M USD)
} Purchased from Marsulex Inc. (TSX: MLX)
} Form of transaction: Stock Purchase
} Financing: Cash on hand and bank financing
◦ $75 million USD Acquisition Credit Facility
} Non-recurring closing costs: $2.6 million or $0.13 per diluted
share
share
} 2009 EBITDA: ~$9.9M CAD
Transaction Summary
} Leverage Stablex diverse base
of blue-chip customers in North
America
of blue-chip customers in North
America
} More than 1,000 customer
relationships
relationships
Business Rationale
} Add physical presence in the
Northeastern U.S. & eastern
Canada
Northeastern U.S. & eastern
Canada
} Expand service offerings and
penetration of national accounts
penetration of national accounts
} Optimize Event opportunities
◦ Combined bids using Stablex
with other USE facilities and
transportation assets
with other USE facilities and
transportation assets
} Opportunity to increase revenue
and improve efficiencies
and improve efficiencies
◦ Transportation, brokering,
permit modifications
permit modifications
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} Purchase Siemens Water
Technologies Vernon,
California permitted
hazardous liquids
processing facility
Technologies Vernon,
California permitted
hazardous liquids
processing facility
} Purchase Price: $8.65
Million
Million
} Structure: Asset
Purchase
Purchase
} Signed Definitive
Agreement August 27th
Agreement August 27th
} Closing: On Hold
*Treatment, Storage, Disposal Facility
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* - Dollars in millions
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* - Dollars in millions
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} Ongoing project delays/deferrals
◦ Event business still soft, but better than ‘09
} Pricing pressure for Thermal Recycling
services
services
} Accrual of regulatory fine
} Low rail car utilization in first half
} Despite Challenges grew Non-Honeywell
related revenue by almost 11% vs. YTD
2009
related revenue by almost 11% vs. YTD
2009
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} Still limited commercial project opportunities - few signs
of a quick or strong turnaround
of a quick or strong turnaround
} Government project opportunities up in 2010 (DOD,
EPA, State highway work), especially California
EPA, State highway work), especially California
} Recurring “Base Business” market has remained flat -
growth requires market share gains from competitors
growth requires market share gains from competitors
} National landfill overcapacity continues to pressure on
pricing
pricing
} Transportation costs rising; makes the distance to USE
West Coast sites vs. competition a more critical factor
West Coast sites vs. competition a more critical factor
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General Market Trends
} 2010 EPS of $0.57 to $0.67 excluding one time transaction
and integration costs; reaffirmed October 2010
and integration costs; reaffirmed October 2010
} 2010 earnings will be impacted by $0.13 of non-recurring
transaction and integration costs
transaction and integration costs
} 2010 EPS growth of 10% to 29% over 2009 excluding
contributions from 2009 Honeywell and insurance
settlement and 2010 acquisition costs (“apples to apples”)
contributions from 2009 Honeywell and insurance
settlement and 2010 acquisition costs (“apples to apples”)
} Expect Q4 , while still relatively strong, to be sequentially
weaker than Q3 since most of GE waste was received in
Q3
weaker than Q3 since most of GE waste was received in
Q3
} Stablex 2009 Revenue of CAD$38.5 million, EBITDA of
CAD$9.9 million - expect EPS contribution in 2011
CAD$9.9 million - expect EPS contribution in 2011
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Business Overview and Outlook
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} Unique set of radioactive & hazardous services and assets
means high barriers to entry
means high barriers to entry
} Strong cash flow business with significant earnings upside
} Once fixed costs are covered, significant “fall thru” to
bottom line (i.e. high operating leverage)
bottom line (i.e. high operating leverage)
} Return on total capital: 13.8% ttm
} Attractive dividend yield of over 4.4%
} Seasoned, committed executive management team
} Large, loyal customer base
} Opportunity to leverage new
assets
assets
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