Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 21, 2014 | Jun. 30, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'US ECOLOGY, INC. | ' | ' |
Entity Central Index Key | '0000742126 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $501.90 |
Entity Common Stock, Shares Outstanding | ' | 21,542,384 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $73,940 | $2,120 |
Receivables, net | 43,636 | 33,947 |
Prepaid expenses and other current assets | 3,612 | 3,161 |
Deferred income taxes | 1,340 | 1,276 |
Total current assets | 122,528 | 40,504 |
Property and equipment, net | 114,859 | 109,792 |
Restricted Cash and Investments | 4,097 | 4,111 |
Intangible assets, net | 36,832 | 40,771 |
Goodwill | 21,693 | 23,105 |
Other assets | 547 | 411 |
Total assets | 300,556 | 218,694 |
Current Liabilities: | ' | ' |
Accounts payable | 7,277 | 6,333 |
Deferred revenue | 8,870 | 3,919 |
Accrued liabilities | 8,691 | 7,322 |
Accrued salaries and benefits | 6,957 | 7,570 |
Income taxes payable | 4,428 | 426 |
Current portion of closure and post-closure obligations | 949 | 1,913 |
Total current liabilities | 37,172 | 27,483 |
Long-term closure and post-closure obligations | 16,519 | 15,449 |
Reducing revolving line of credit | ' | 45,000 |
Other long-term liabilities | 69 | 114 |
Unrecognized tax benefits | 480 | 467 |
Deferred income taxes | 14,778 | 18,159 |
Total liabilities | 69,018 | 106,672 |
Commitments and contingencies | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock $0.01 par value, 50,000 authorized; 21,538 and 18,385 shares issued, respectively | 215 | 184 |
Additional paid-in capital | 162,830 | 63,969 |
Retained earnings | 70,597 | 48,424 |
Treasury stock, at cost, 19 and 71 shares, respectively | -319 | -1,183 |
Accumulated other comprehensive income (loss) | -1,785 | 628 |
Total stockholders' equity | 231,538 | 112,022 |
Total liabilities and stockholders' equity | $300,556 | $218,694 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 21,538 | 18,385 |
Treasury stock, shares | 19 | 71 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' |
Revenue | $201,126 | $169,138 | $154,917 |
Direct operating costs | 86,238 | 79,177 | 73,758 |
Transportation costs | 35,902 | 23,664 | 27,292 |
Gross profit | 78,986 | 66,297 | 53,867 |
Selling, general and administrative expenses | 26,055 | 25,659 | 21,502 |
Operating income | 52,931 | 40,638 | 32,365 |
Other income (expense): | ' | ' | ' |
Interest income | 19 | 17 | 26 |
Interest expense | -828 | -878 | -1,604 |
Foreign currency gain (loss) | -2,327 | 1,213 | -1,321 |
Other | 352 | 728 | 341 |
Total other income (expense) | -2,784 | 1,080 | -2,558 |
Income before income taxes | 50,147 | 41,718 | 29,807 |
Income tax expense | 17,996 | 16,059 | 11,437 |
Net income | $32,151 | $25,659 | $18,370 |
Earnings per share: | ' | ' | ' |
Basic (in dollars per share) | $1.73 | $1.41 | $1.01 |
Diluted (in dollars per share) | $1.72 | $1.40 | $1.01 |
Shares used in earnings per share calculation: | ' | ' | ' |
Basic (in shares) | 18,592 | 18,238 | 18,198 |
Diluted (in shares) | 18,676 | 18,281 | 18,223 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $32,151 | $25,659 | $18,370 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation gain (loss) | -2,413 | 745 | -793 |
Comprehensive income | $29,738 | $26,404 | $17,577 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $32,151 | $25,659 | $18,370 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization of property and equipment | 14,815 | 13,916 | 13,933 |
Amortization of intangible assets | 1,461 | 1,469 | 1,419 |
Accretion of closure and post-closure obligations | 1,241 | 1,367 | 1,292 |
Unrealized foreign currency loss (gain) | 2,789 | -1,400 | 1,324 |
Deferred income taxes | -2,637 | -711 | -1,095 |
Share-based compensation expense | 865 | 846 | 837 |
Unrecognized tax benefits | 13 | 13 | 454 |
Net loss on sale of property and equipment | 170 | 13 | 187 |
Changes in assets and liabilities (net of effect of business acquisitions): | ' | ' | ' |
Receivables | -10,408 | -1,850 | 3,593 |
Income taxes receivable | ' | 187 | -188 |
Other assets | -403 | -677 | 715 |
Accounts payable and accrued liabilities | 1,673 | -2,172 | 2,880 |
Deferred revenue | 5,197 | -50 | -21 |
Accrued salaries and benefits | -424 | 1,929 | 1,389 |
Income taxes payable | 4,091 | -1,083 | -1,106 |
Closure and post-closure obligations | -955 | -2,282 | -792 |
Net cash provided by operating activities | 49,639 | 35,174 | 43,191 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -21,373 | -15,766 | -10,096 |
Purchases of restricted cash and investments | -5,249 | ' | ' |
Proceeds from sale of restricted cash and investments | 5,263 | 5 | ' |
Proceeds from sale of property and equipment | 168 | 198 | 98 |
Business acquisitions (net of cash acquired) | ' | -10,743 | ' |
Net cash used in investing activities | -21,191 | -26,306 | -9,998 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from public offering (net of issuance costs of $5,229) | 96,431 | ' | ' |
Payments on reducing revolving line of credit | -54,500 | -21,500 | -39,400 |
Proceeds from reducing revolving line of credit | 9,500 | 26,000 | 16,900 |
Dividends paid | -9,978 | -16,432 | -13,113 |
Proceeds from exercise of stock options | 2,461 | 1,035 | 142 |
Deferred financing costs paid | -235 | ' | ' |
Other | -1 | -303 | 307 |
Net cash provided by (used in) financing activities | 43,678 | -11,200 | -35,164 |
Effect of foreign exchange rate changes on cash | -306 | 163 | -82 |
Increase (decrease) in cash and cash equivalents | 71,820 | -2,169 | -2,053 |
Cash and cash equivalents at beginning of year | 2,120 | 4,289 | 6,342 |
Cash and cash equivalents at end of year | $73,940 | $2,120 | $4,289 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ' |
Issuance costs of common stock | $5,229 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $94,712 | $183 | $61,892 | $33,940 | ($1,979) | $676 |
Balance (in shares) at Dec. 31, 2010 | ' | 18,310,614 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 18,370 | ' | ' | 18,370 | ' | ' |
Foreign currency translation | -793 | ' | ' | ' | ' | -793 |
Dividend paid | -13,113 | ' | ' | -13,113 | ' | ' |
Tax benefit of equity based awards | 8 | ' | 8 | ' | ' | ' |
Share-based compensation | 837 | ' | 837 | ' | ' | ' |
Stock option exercises | 142 | ' | 142 | ' | ' | ' |
Stock option exercises (in shares) | ' | 9,600 | ' | ' | ' | ' |
Issuance of restricted common stock from treasury shares | ' | ' | -424 | ' | 424 | ' |
Balance at Dec. 31, 2011 | 100,163 | 183 | 62,455 | 39,197 | -1,555 | -117 |
Balance (in shares) at Dec. 31, 2011 | ' | 18,320,214 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 25,659 | ' | ' | 25,659 | ' | ' |
Foreign currency translation | 745 | ' | ' | ' | ' | 745 |
Dividend paid | -16,432 | ' | ' | -16,432 | ' | ' |
Tax benefit of equity based awards | 6 | ' | 6 | ' | ' | ' |
Share-based compensation | 846 | ' | 846 | ' | ' | ' |
Stock option exercises | 1,035 | 1 | 1,034 | ' | ' | ' |
Stock option exercises (in shares) | ' | 65,048 | ' | ' | ' | ' |
Issuance of restricted common stock from treasury shares | ' | ' | -372 | ' | 372 | ' |
Balance at Dec. 31, 2012 | 112,022 | 184 | 63,969 | 48,424 | -1,183 | 628 |
Balance (in shares) at Dec. 31, 2012 | ' | 18,385,262 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 32,151 | ' | ' | 32,151 | ' | ' |
Foreign currency translation | -2,413 | ' | ' | ' | ' | -2,413 |
Dividend paid | -9,978 | ' | ' | -9,978 | ' | ' |
Tax benefit of equity based awards | 318 | ' | 318 | ' | ' | ' |
Share-based compensation | 865 | ' | 865 | ' | ' | ' |
Stock option exercises | 2,141 | 1 | 2,140 | ' | ' | ' |
Stock option exercises (in shares) | ' | 162,314 | ' | ' | ' | ' |
Issuance of restricted common stock from treasury shares | ' | ' | -864 | ' | 864 | ' |
Issuance of common stock in connection with public offering (net of issuance costs of $5,229) | 96,432 | 30 | 96,402 | ' | ' | ' |
Issuance of common stock in connection with public offering (in shares) | ' | 2,990,000 | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | $231,538 | $215 | $162,830 | $70,597 | ($319) | ($1,785) |
Balance (in shares) at Dec. 31, 2013 | ' | 21,537,576 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ' |
Issuance of common stock in connection with public offering, issuance costs | $5,229 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2013 | |
DESCRIPTION OF BUSINESS | ' |
DESCRIPTION OF BUSINESS | ' |
NOTE 1. DESCRIPTION OF BUSINESS | |
US Ecology, Inc. was most recently incorporated as a Delaware corporation in May 1987 as American Ecology Corporation. On February 22, 2010 the Company changed its name from American Ecology Corporation to US Ecology, Inc. US Ecology, Inc., through its subsidiaries, provides radioactive, Polychlorinated biphenyl ("PCB"), hazardous and industrial waste management services to commercial and government entities such as refineries and chemical production facilities, electric utilities, manufacturers, steel mills and medical and academic institutions. We are headquartered in Boise, Idaho. Throughout these financial statements words such as "we," "us," "our," "US Ecology" and the "Company" refer to US Ecology, Inc. and its subsidiaries. | |
Our principal operating subsidiaries are US Ecology Nevada, Inc., a Delaware corporation; US Ecology Texas, Inc., a Delaware corporation; US Ecology Washington, Inc., a Delaware corporation; US Ecology Idaho, Inc., a Delaware corporation; US Ecology Michigan, Inc., a Michigan corporation and Stablex Canada Inc., a Canadian corporation. | |
We operate within two segments: Operating Disposal Facilities and Non-Operating Disposal Facilities. The Operating Disposal Facilities are currently accepting hazardous, PCB, industrial and low-level radioactive waste regulated under the federal Atomic Energy Act ("LLRW"), naturally occurring and accelerator produced radioactive materials ("NORM/NARM") and low-activity radioactive material ("LARM"). The Operating Disposal Facilities segment includes our Resource Conservation and Recovery Act of 1976 ("RCRA") permitted waste treatment and disposal facilities near Beatty, Nevada; Grand View, Idaho; Detroit, Michigan; and Robstown, Texas, our Atomic Energy Act of 1954 as amended ("AEA") permitted disposal facility near Richland, Washington and our Blainville, Québec, Canada facility ("Stablex"). | |
The Non-Operating Disposal Facilities segment includes our closed hazardous waste disposal, processing, and deep-well injection facilities located in Sheffield, Illinois; Bruneau, Idaho; and Winona, Texas. We currently incur costs for remediation and long-term monitoring and maintenance obligations at our closed facilities. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2013 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Principles of Consolidation | |||
The accompanying financial statements are prepared on a consolidated basis. All significant inter-company balances and transactions have been eliminated in consolidation. Our year-end is December 31. | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist primarily of cash on deposit, money market accounts or short-term investments with remaining maturities of 90 days or less at the date of acquisition. | |||
Receivables | |||
Receivables are stated at an amount management expects to collect. Based on management's assessment of the credit history of the customers having outstanding balances and factoring in current economic conditions, management has concluded that potential unidentified losses on balances outstanding at year-end will not be material. | |||
Restricted Cash and Investments | |||
Restricted cash and investments of $4.1 million at December 31, 2013 and 2012 represent funds held in third-party managed trust accounts as collateral for our financial assurance obligations for post-closure activities at our non-operating facilities. These funds are invested in fixed-income U.S. Treasury and government agency securities and money market accounts. The balances are adjusted monthly to fair market value based on quoted prices in active markets for identical or similar assets. | |||
Revenue Recognition | |||
We recognize revenue when persuasive evidence of an arrangement exists, delivery and disposal have occurred or services have been rendered, the price is fixed or determinable and collection is reasonably assured. We recognize revenue from two primary sources: 1) waste treatment, recycling and disposal and 2) waste transportation services. | |||
Waste treatment and disposal revenue results primarily from fees charged to customers for treatment and/or disposal or recycling of specified wastes. Waste treatment and disposal revenue is generally charged on a per-ton or per-yard basis based on contracted prices and is recognized when services are complete and the waste is disposed of in our landfill. | |||
Transportation revenue results from delivering customer waste to a disposal facility for treatment and/or disposal or recycling. Transportation services are generally not provided on a stand-alone basis and instead are bundled with other Company services. However, in some instances we provide transportation and logistics services for shipment of waste from clean-up sites to disposal facilities operated by other companies. We account for our bundled arrangements as multiple deliverable arrangements and determine the amount of revenue recognized for each deliverable (unit of accounting) using the relative fair value method. Transportation revenue is recognized when the transported waste is received at the disposal facility. Waste treatment and disposal revenue under bundled arrangements is recognized when services are complete and the waste is disposed in the landfill. | |||
Burial fees collected from customers for each ton or cubic yard of waste disposed in our landfills are paid to the respective local and/or state government entity and are not included in revenue. Revenue and associated cost from waste that has been received but not yet treated and disposed of in our landfills are deferred until disposal occurs. | |||
Our Richland, Washington disposal facility is regulated by the Washington Utilities and Transportation Commission ("WUTC"), which approves our rates for disposal of LLRW. Annual revenue levels are established based on a rate agreement with the WUTC at amounts sufficient to cover the costs of operation, including facility maintenance, equipment replacement and related costs, and provide us with a reasonable profit. Per-unit rates charged to LLRW customers during the year are based on our evaluation of disposal volume and radioactivity projections submitted to us by waste generators. Our proposed rates are then reviewed and approved by the WUTC. If annual revenue exceeds the approved levels set by the WUTC, we are required to refund excess collections to facility users on a pro-rata basis. The current rate agreement with the WUTC was extended in 2013 and is effective until January 1, 2020. | |||
Unbilled Receivables | |||
Unbilled receivables are recorded for work performed under contracts that have not yet been invoiced to customers and arise due to the timing of billings. Substantially all unbilled receivables at December 31, 2013, were billed in the following month. | |||
Deferred Revenue | |||
Revenue from waste that has been received but not yet treated and disposed of in our landfill or advance billings prior to treatment and disposal services are deferred until such services are completed. | |||
Property and Equipment | |||
Property and equipment are recorded at cost and depreciated on the straight-line method over estimated useful lives. Replacements and major repairs of property and equipment are capitalized and retirements are made when assets are disposed of or when the useful life has been exhausted. Minor components and parts are expensed as incurred. Repair and maintenance expenses were $5.5 million, $4.6 million and $3.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
We assume no salvage value for our depreciable fixed assets. The estimated useful lives for significant property and equipment categories are as follows: | |||
Useful Lives | |||
Vehicles and other equipment | 3 to 10 years | ||
Disposal facility and equipment | 3 to 20 years | ||
Buildings and improvements | 5 to 40 years | ||
Railcars | 40 years | ||
Disposal Cell Accounting | |||
Qualified disposal cell development costs such as personnel and equipment costs incurred to construct new disposal cells are recorded and capitalized at cost. Capitalized cell development costs, net of recorded amortization, are added to estimated future costs of the permitted disposal cell to be incurred over the remaining construction of the cell, to determine the amount to be amortized over the remaining estimated cell life. Estimates of future costs are developed using input from independent engineers and internal technical and accounting managers. We review these estimates at least annually. Amortization is recorded on a unit of consumption basis, typically applying cost as a rate per cubic yard disposed. Disposal facility costs are expected to be fully amortized upon final closure of the facility, as no salvage value applies. Costs associated with ongoing disposal operations are charged to expense as incurred. | |||
We have material financial commitments for closure and post-closure obligations for certain facilities we own or operate. We estimate future cost requirements for closure and post-closure monitoring based on RCRA and conforming state requirements and facility permits. RCRA requires that companies provide the responsible regulatory agency acceptable financial assurance for closure work and subsequent post-closure monitoring of each facility for 30 years following closure. Estimates for final closure and post-closure costs are developed using input from our technical and accounting managers as well as independent engineers and are reviewed by management at least annually. These estimates involve projections of costs that will be incurred after the disposal facility ceases operations, through the required post-closure care period. The present value of the estimated closure and post-closure costs are accreted using the interest method of allocation to direct costs in our consolidated statement of operations so that 100% of the future cost has been incurred at the time of payment. | |||
Business Combinations | |||
We account for business combinations under the acquisition method of accounting. The cost of an acquired company is assigned to the tangible and identifiable intangible assets purchased and the liabilities assumed on the basis of their fair values at the date of acquisition. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is assigned to goodwill. The transaction costs associated with business combinations are expensed as they are incurred. | |||
Goodwill | |||
Goodwill represents the excess of the fair value of the consideration transferred over the fair value of the underlying identifiable assets and liabilities acquired. Goodwill is not amortized, but instead is assessed for impairment annually in the fourth quarter and also if an event occurs or circumstances change that may indicate a possible impairment. In the event that we determine that the value of goodwill has become impaired, we will incur an accounting charge for the amount of impairment during the period in which the determination has been made. Goodwill was recognized in connection with our acquisition of US Ecology Michigan, Inc. in 2012 and our acquisition of Stablex in 2010. | |||
Intangible Assets | |||
Intangible assets are stated at the fair value assigned in a business combination net of amortization. We amortize our finite-lived intangible assets using the straight-line method over their estimated economic lives ranging from 1 to 33 years. We review intangible assets with indefinite useful lives for impairment during the fourth quarter of each year. We also review both indefinite-lived and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable. | |||
Impairment of Long-Lived Assets | |||
Long-lived assets consist primarily of property and equipment facility development costs and finite-lived intangible assets. The recoverability of long-lived assets is evaluated periodically through analysis of operating results and consideration of other significant events or changes in the business environment. If an operating unit had indications of possible impairment, such as current operating losses, we would evaluate whether impairment exists on the basis of undiscounted expected future cash flows from operations over the remaining amortization period. If an impairment loss were to exist, the carrying amount of the related long-lived assets would be reduced to their estimated fair value based upon discounted cash flows from operations. | |||
Deferred Financing Costs | |||
Deferred financing costs are amortized over the life of our Credit Agreement. Amortization of deferred financing costs is included as a component of interest expense in the consolidated statements of operations. We had deferred financing costs of $270,000 and $203,000, net of amortization in Prepaid expenses and other current assets and Other assets on the consolidated balance sheets as of December 31, 2013 and 2012, respectively. | |||
Foreign Currency | |||
We have operations in Canada. The functional currency of our Canadian operations is the Canadian dollar ("CAD"). Assets and liabilities are translated to U.S. dollars ("USD") at the exchange rate in effect at the balance sheet date and revenue and expenses at the average exchange rate for the period. Gains and losses from the translation of the consolidated financial statements of our Canadian subsidiary into USD are included in stockholders' equity as a component of Accumulated other comprehensive income. Gains and losses resulting from foreign currency transactions are recognized in the consolidated statements of operations. Recorded balances that are denominated in a currency other than the functional currency are re-measured to the functional currency using the exchange rate at the balance sheet date and gains or losses are recorded in the statements of operations. | |||
Income Taxes | |||
Income taxes are accounted for using an asset and liability approach. This requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities at the applicable tax rates. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. | |||
We recognize net deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. | |||
The application of income tax law is inherently complex. Tax laws and regulations are voluminous and at times ambiguous and interpretations of guidance regarding such tax laws and regulations change over time. This requires us to make many subjective assumptions and judgments regarding the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. A liability for uncertain tax positions is recorded in our financial statements on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax position taken will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. As facts and circumstances change, we reassess these probabilities and record any changes in the financial statements as appropriate. Our tax returns are subject to audit by the Internal Revenue Service ("IRS"), various states in the U.S., and by the Canadian Revenue Agency. | |||
Insurance | |||
Accrued costs for our self-insured health care coverage were $493,000 and $483,000 at December 31, 2013 and 2012, respectively. | |||
Earnings Per Share | |||
Basic earnings per share is calculated based on the weighted-average number of outstanding common shares during the applicable period. Diluted earnings per share is based on the weighted-average number of outstanding common shares plus the weighted-average number of potential outstanding common shares. Potential common shares that would increase earnings per share or decrease loss per share are anti-dilutive and are excluded from earnings per share computations. Earnings per share is computed separately for each period presented. | |||
Treasury Stock | |||
Shares of common stock repurchased by us are recorded at cost as treasury stock and result in a reduction of stockholders' equity in our consolidated balance sheets. Treasury shares are reissued using the weighted average cost method for determining the cost of the shares reissued. The difference between the cost of the shares reissued and the issuance price is added or deducted from additional paid-in capital. | |||
USE_OF_ESTIMATES
USE OF ESTIMATES | 12 Months Ended |
Dec. 31, 2013 | |
USE OF ESTIMATES | ' |
USE OF ESTIMATES | ' |
NOTE 3. USE OF ESTIMATES | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Listed below are the estimates and assumptions that we consider to be significant in the preparation of our financial statements. | |
• | |
Allowance for Doubtful Accounts—We estimate losses for uncollectible accounts based on the aging of the accounts receivable and an evaluation of the likelihood of success in collecting the receivable. | |
• | |
Recovery of Long-Lived Assets—We evaluate the recovery of our long-lived assets periodically by analyzing our operating results and considering significant events or changes in the business environment. | |
• | |
Income Taxes—We assume the deductibility of certain costs in our income tax filings, estimate our income tax rate and estimate the future recovery of deferred tax assets. | |
• | |
Legal and Environmental Accruals—We estimate the amount of potential exposure we may have with respect to litigation and environmental claims and assessments. | |
• | |
Disposal Cell Development and Final Closure/Post-Closure Amortization—We expense amounts for disposal cell usage and closure and post-closure costs for each cubic yard of waste disposed of at our operating facilities. In determining the amount to expense for each cubic yard of waste disposed, we estimate the cost to develop each disposal cell and the closure and post-closure costs for each disposal cell and facility. The expense for each cubic yard is then calculated based on the remaining permitted capacity and total permitted capacity. Estimates for closure and post-closure costs are developed using input from third-party engineering consultants, and our internal technical and accounting personnel. Management reviews estimates at least annually. Estimates for final disposal cell closure and post-closure consider when the costs would actually be paid and, where appropriate, inflation and discount rates. | |
• | |
Business Acquisitions—The Company records assets and liabilities of the acquired business, including goodwill, generally at their fair values. Acquisition-related transaction and restructuring costs are expensed rather than treated as part of the cost of the acquisition. | |
• | |
Goodwill—We assess goodwill for impairment during the fourth quarter of each year, and also if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The assessment consists of comparing the estimated fair value of the reporting unit to the carrying value of the net assets assigned to the reporting unit, including goodwill. Fair values are determined by using both the market approach, applying a multiple of earnings based on guideline for publicly traded companies, and the income approach, discounting projected future cash flows based on our expectations of the current and future operating environment. The rates used to discount projected future cash flows reflect a weighted average cost of capital based on our industry, capital structure and risk premiums including those reflected in the current market capitalization. | |
• | |
Intangible Assets—We review intangible assets with indefinite useful lives for impairment during the fourth quarter of each year. We also review both indefinite-lived and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable. In order to assess whether a potential impairment exists, the assets' carrying values are compared with their undiscounted expected future cash flows. Estimating future cash flows requires significant judgment about factors such as general economic conditions and projected growth rates, and our estimates often vary from the cash flows eventually realized. Impairments are measured by comparing the fair value of the asset to its carrying value. Fair value is generally determined by considering: (i) the internally developed discounted projected cash flow analysis of the asset; (ii) actual third-party valuations; and/or (iii) information available regarding the current market environment for similar assets. | |
Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. As it relates to estimates and assumptions in amortization rates and environmental obligations, significant engineering, operations and accounting judgments are required. We review these estimates and assumptions no less than annually. In many circumstances, the ultimate outcome of these estimates and assumptions will not be known for decades into the future. Actual results could differ materially from these estimates and assumptions due to changes in applicable regulations, changes in future operational plans and inherent imprecision associated with estimating environmental impacts far into the future. | |
DISCLOSURE_OF_SUPPLEMENTAL_CAS
DISCLOSURE OF SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
DISCLOSURE OF SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||||
DISCLOSURE OF SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||||
NOTE 4. DISCLOSURE OF SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
For the Year Ended December 31, | |||||||||||
$s in thousands | 2013 | 2012 | 2011 | ||||||||
Income taxes and interest paid: | |||||||||||
Income taxes paid, net of receipts | $ | 16,226 | $ | 17,676 | $ | 13,360 | |||||
Interest paid | 703 | 791 | 1,277 | ||||||||
Non-cash investing and financing activities: | |||||||||||
Closure/Post-closure retirement asset | 886 | 921 | 93 | ||||||||
Capital expenditures in accounts payable | 1,561 | 762 | 776 | ||||||||
Restricted stock issuances from treasury shares | 864 | 372 | 424 | ||||||||
The Company acquired U.S. Ecology Michigan, Inc. on May 31, 2012 for $10.8 million. The allocation of the purchase price to the fair value of assets acquired and liabilities assumed was as follows: | |||||||||||
$s in thousands | Purchase | ||||||||||
Price | |||||||||||
Allocation | |||||||||||
Assets acquired | $ | 10,706 | |||||||||
Liabilities assumed | (1,268 | ) | |||||||||
| | | | | |||||||
Total identifiable net assets | 9,438 | ||||||||||
Goodwill | 1,327 | ||||||||||
| | | | | |||||||
Total purchase price | $ | 10,765 | |||||||||
| | | | | |||||||
| | | | | |||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
NOTE 5. FAIR VALUE MEASUREMENTS | ||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair value measurements, as follows: | ||||||||||||||
Level 1—Quoted prices in active markets for identical assets or liabilities; | ||||||||||||||
Level 2—Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; | ||||||||||||||
Level 3—Unobservable inputs in which little or no market activity exists, requiring an entity to develop its own assumptions that market participants would use to value the asset or liability. | ||||||||||||||
The Company's financial instruments consist of cash and cash equivalents, accounts receivable, restricted cash and investments, accounts payable and accrued liabilities. The estimated fair value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying value due to the short-term nature of these instruments. | ||||||||||||||
The Company's assets measured at fair value on a recurring basis at December 31, 2013 and 2012 consisted of our Restricted cash and investments as follows: | ||||||||||||||
2013 | ||||||||||||||
$s in thousands | Quoted Prices | Other | Unobservable | Total | ||||||||||
in Active | Observable | Inputs | ||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets: | ||||||||||||||
Fixed-income securities(1) | $ | 399 | $ | 3,607 | $ | — | $ | 4,006 | ||||||
Money market funds(2) | $ | 91 | $ | — | $ | — | $ | 91 | ||||||
| | | | | | | | | | | | | | |
Total | $ | 490 | $ | 3,607 | $ | — | $ | 4,097 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
2012 | ||||||||||||||
$s in thousands | Quoted Prices | Other | Unobservable | Total | ||||||||||
in Active | Observable | Inputs | ||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets: | ||||||||||||||
Money market funds(2) | $ | 4,111 | $ | — | $ | — | $ | 4,111 | ||||||
| | | | | | | | | | | | | | |
Total | $ | 4,111 | $ | — | $ | — | $ | 4,111 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
We invest a portion of our Restricted cash and investments in fixed-income securities, including U.S. Treasury and U.S. agency securities. We measure the fair value of U.S. Treasury securities using quoted prices for identical assets in active markets. We measure the fair value of U.S. agency securities using observable market activity for similar assets. The fair value of our fixed-income securities approximates our cost basis in the investments. | ||||||||||||||
-2 | ||||||||||||||
We invest a portion of our Restricted cash and investments in money market funds. We measure the fair value of these money market fund investments using quoted prices for identical assets in active markets. | ||||||||||||||
CONCENTRATIONS_AND_CREDIT_RISK
CONCENTRATIONS AND CREDIT RISK | 12 Months Ended |
Dec. 31, 2013 | |
CONCENTRATIONS AND CREDIT RISK | ' |
CONCENTRATIONS AND CREDIT RISK | ' |
NOTE 6. CONCENTRATIONS AND CREDIT RISK | |
Major Customers | |
No customer accounted for more than 10% of total revenue for the years ended December 31, 2013, 2012 or 2011. A single customer accounted for approximately 16% of total trade receivables as of December 31, 2013. No customer accounted for more than 10% of total trade receivables as of December 31, 2012. | |
Credit Risk Concentration | |
We maintain most of our cash and cash equivalents with nationally recognized financial institutions like Wells Fargo Bank, National Association ("Wells Fargo"). Substantially all balances are uninsured and are not used as collateral for other obligations. Concentrations of credit risk on accounts receivable are believed to be limited due to the number, diversification and character of the obligors and our credit evaluation process. | |
Labor Concentrations | |
As of December 31, 2013, the Paper, Allied-Industrial Chemical & Energy Workers International Union, AFL-CIO, CLC (PACE), represented 11 employees at our Richland, Washington facility and the Communications, Energy and Paperworkers Union of Canada represented 107 employees at our Blainville, Québec, Canada facility. As of December 31, 2013, our 340 other employees did not belong to a union. | |
RECEIVABLES
RECEIVABLES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
RECEIVABLES | ' | ||||||||||||||||
RECEIVABLES | ' | ||||||||||||||||
NOTE 7. RECEIVABLES | |||||||||||||||||
Receivables as of December 31, 2013 and 2012 consisted of the following: | |||||||||||||||||
$s in thousands | 2013 | 2012 | |||||||||||||||
Trade | $ | 42,055 | $ | 32,787 | |||||||||||||
Unbilled revenue | 1,296 | 1,529 | |||||||||||||||
Other | 810 | 99 | |||||||||||||||
| | | | | | | | ||||||||||
Total receivables | 44,161 | 34,415 | |||||||||||||||
Allowance for doubtful accounts | (525 | ) | (468 | ) | |||||||||||||
| | | | | | | | ||||||||||
Receivables, net | $ | 43,636 | $ | 33,947 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
The allowance for doubtful accounts is a provision for uncollectible accounts receivable and unbilled receivables. The allowance is evaluated and adjusted to reflect our collection history and an analysis of the accounts receivables aging. The allowance is decreased by accounts receivable as they are written off. The allowance is adjusted periodically to reflect actual experience. The change in the allowance during 2013, 2012 and 2011 was as follows: | |||||||||||||||||
$s in thousands | Balance at | Charged | Recoveries | Adjustments | Balance at | ||||||||||||
Beginning of | (Credited) to | (Deductions/ | End of Period | ||||||||||||||
Period | Costs and | Write-offs) | |||||||||||||||
Expenses | |||||||||||||||||
Year ended December 31, 2013 | $ | 468 | $ | 138 | $ | (70 | ) | $ | (11 | ) | $ | 525 | |||||
Year ended December 31, 2012 | $ | 311 | $ | 137 | $ | 17 | $ | 3 | $ | 468 | |||||||
Year ended December 31, 2011 | $ | 338 | $ | 153 | $ | (179 | ) | $ | (1 | ) | $ | 311 |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
NOTE 8. PROPERTY AND EQUIPMENT | ||||||||
Property and equipment as of December 31, 2013 and 2012 consisted of the following: | ||||||||
$s in thousands | 2013 | 2012 | ||||||
Cell development costs | $ | 77,348 | $ | 64,994 | ||||
Land and improvements | 18,073 | 14,920 | ||||||
Buildings and improvements | 59,101 | 55,177 | ||||||
Railcars | 17,375 | 17,375 | ||||||
Vehicles and other equipment | 42,859 | 39,689 | ||||||
Construction in progress | 6,784 | 12,454 | ||||||
| | | | | | | | |
Total property and equipment | 221,540 | 204,609 | ||||||
Accumulated depreciation and amortization | (106,681 | ) | (94,817 | ) | ||||
| | | | | | | | |
Property and equipment, net | $ | 114,859 | $ | 109,792 | ||||
| | | | | | | | |
| | | | | | | | |
Depreciation and amortization expense was $14.8 million, $13.9 million and $13.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
BUSINESS_ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
BUSINESS ACQUISITION | ' | |||||||
BUSINESS ACQUISITION | ' | |||||||
NOTE 9. BUSINESS ACQUISITION | ||||||||
On May 31, 2012, the Company acquired 100% of the outstanding shares of US Ecology Michigan, Inc. ("USEM"), formerly Dynecol, Inc., a chemical and industrial byproducts treatment and reuse facility located in Detroit, Michigan. The total purchase price was $10.8 million in cash and was funded through borrowings under the Reducing Revolving Line of Credit facility. | ||||||||
Consideration paid for USEM and the fair value of assets acquired and liabilities assumed at the acquisition date was as follows: | ||||||||
$s in thousands | 2012 | |||||||
Current assets | $ | 2,214 | ||||||
Property and equipment | 6,552 | |||||||
Identifiable intangible assets | 1,940 | |||||||
Current liabilities | (1,268 | ) | ||||||
| | | | | ||||
Total identifiable net assets | 9,438 | |||||||
Goodwill | 1,327 | |||||||
| | | | | ||||
Total purchase price | $ | 10,765 | ||||||
| | | | | ||||
| | | | | ||||
Goodwill of $1.3 million arising from the acquisition is the result of several factors. USEM has a talented assembled workforce of approximately 40 employees principally serving the Mid-Western and Eastern United States and Ontario, Canada industrial markets for nearly 40 years. The acquisition strengthens our presence in key midwestern and eastern U.S. and certain Canadian markets. In addition, USEM provides us with an opportunity to win more Event Business (as defined below) work; increase services to existing customers including national accounts; expand our transportation and logistics services; and attract new customers. Management also believes that the acquisition produces synergies in combination with our Stablex facility. All of the goodwill recognized was assigned to our Operating Disposal Facilities segment and is expected to be deductible for income tax purposes over a fifteen-year amortization period. | ||||||||
The following unaudited pro forma financial information presents the combined results of operations as if USEM had been combined with us beginning on January 1, 2011. The pro forma financial information includes the accounting impact of the business combination, including the amortization of intangible assets, depreciation of property, plant and equipment and interest expense. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the period presented, nor should it be taken as an indication of our future consolidated results of operations. | ||||||||
$s in thousands, except per share amounts | 2012 | 2011 | ||||||
(unaudited) | ||||||||
Pro forma combined: | ||||||||
Revenue | $ | 174,639 | $ | 169,884 | ||||
Net income | $ | 25,513 | $ | 19,339 | ||||
Earnings per share | ||||||||
Basic | $ | 1.4 | $ | 1.06 | ||||
Diluted | $ | 1.4 | $ | 1.06 | ||||
The amounts of revenue and operating loss from USEM included in the Company's consolidated statements of operations for the year ended December 31, 2013 were $12.3 million and $72,000, respectively. The amounts of revenue and operating loss from USEM included in the Company's consolidated statements of operations for the year ended December 31, 2012 were $6.7 million and $161,000, respectively. Acquisition-related costs of $348,000 were included in Selling, general and administrative expenses in the Company's consolidated statement of operations for the year ended December 31, 2012. | ||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||
NOTE 10. GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||
Goodwill and intangible assets as of December 31, 2013, were the result of our acquisitions of USEM on May 31, 2012 and Stablex on October 31, 2010. Prior to the acquisition of Stablex, the Company had no goodwill and intangible assets. All goodwill has been assigned to the Operating Disposal Facilities reporting segment. Changes in goodwill for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||
$s in thousands | 2013 | 2012 | ||||||||||||||||||
Balance, beginning of year | $ | 23,105 | $ | 21,200 | ||||||||||||||||
USEM acquisition | — | 1,327 | ||||||||||||||||||
Foreign currency translation | (1,412 | ) | 578 | |||||||||||||||||
| | | | | | | | |||||||||||||
Balance, end of year | $ | 21,693 | $ | 23,105 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Intangible assets as of December 31, 2013 and 2012 consisted of the following: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
$s in thousands | Cost | Accumulated | Net | Cost | Accumulated | Net | ||||||||||||||
Amortization | Amortization | |||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||
Developed software | $ | 329 | $ | (185 | ) | $ | 144 | $ | 352 | $ | (135 | ) | $ | 217 | ||||||
Database | 94 | (43 | ) | 51 | 100 | (31 | ) | 69 | ||||||||||||
Customer relationships | 5,005 | (731 | ) | 4,274 | 5,269 | (490 | ) | 4,779 | ||||||||||||
Technology—Formulae and processes | 8,551 | (826 | ) | 7,725 | 9,144 | (600 | ) | 8,544 | ||||||||||||
Permits, licenses and lease | 26,264 | (2,536 | ) | 23,728 | 28,085 | (1,844 | ) | 26,241 | ||||||||||||
Non-compete agreements | 20 | (20 | ) | — | 20 | (20 | ) | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total amortizing intangible assets | 40,263 | (4,341 | ) | 35,922 | 42,970 | (3,120 | ) | 39,850 | ||||||||||||
Nonamortizing intangible assets: | ||||||||||||||||||||
Permits and licenses | 750 | — | 750 | 750 | — | 750 | ||||||||||||||
Tradename | 160 | — | 160 | 171 | — | 171 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total intangible assets | $ | 41,173 | $ | (4,341 | ) | $ | 36,832 | $ | 43,891 | $ | (3,120 | ) | $ | 40,771 | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Amortization expense of amortizing intangible assets was $1.5 million, $1.5 million and $1.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. Future amortization expense of amortizing intangible assets is expected to be approximately $1.5 million per year for each of the next five years. | ||||||||||||||||||||
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
EMPLOYEE BENEFIT PLANS | ' |
EMPLOYEE BENEFIT PLANS | ' |
NOTE 11. EMPLOYEE BENEFIT PLANS | |
We maintain the US Ecology, Inc., 401(k) Savings and Retirement Plan ("the Plan") for employees who voluntarily contribute a portion of their compensation, thereby deferring income for federal income tax purposes. The Plan covers substantially all of our employees in the United States. Participants may contribute a percentage of salary up to the IRS limitations. The Company contributes a matching contribution equal to 55% of participant contributions up to 6% of compensation. The Company contributed matching contributions to the Plan of $436,000, $364,000 and $354,000 in 2013, 2012 and 2011, respectively. | |
We also maintain the Stablex Canada Inc. Simplified Pension Plan ("the SPP"). This defined contribution plan covers substantially all of our employees at our Blainville, Québec facility in Canada. Participants receive a company contribution equal to 5% of their annual salary. The Company contributed $415,000, $365,000 and $354,000 to the SPP in 2013, 2012 and 2011, respectively. | |
CLOSURE_AND_POSTCLOSURE_OBLIGA
CLOSURE AND POST-CLOSURE OBLIGATIONS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
CLOSURE AND POST-CLOSURE OBLIGATIONS | ' | |||||||
CLOSURE AND POST-CLOSURE OBLIGATIONS | ' | |||||||
NOTE 12. CLOSURE AND POST-CLOSURE OBLIGATIONS | ||||||||
Our accrued closure and post-closure liability represents the expected future costs, including corrective actions, associated with closure and post-closure of our operating and non-operating disposal facilities. Liabilities are recorded when work is probable and the costs can be reasonably estimated. We perform periodic reviews of both non-operating and operating facilities and revise accruals for estimated closure and post-closure, remediation or other costs as necessary. Recorded liabilities are based on our best estimates of current costs and are updated periodically to include the effects of existing technology, presently enacted laws and regulations, inflation and other economic factors. | ||||||||
We do not presently bear significant financial responsibility for closure and/or post-closure care of the disposal facilities located on state-owned land at our Beatty, Nevada site; Provincial-owned land in Blainville, Québec; or state-leased federal land on the Department of Energy Hanford Reservation near Richland, Washington. The States of Nevada and Washington and the Provence of Québec collect fees from us based on the waste received on a quarterly or annual basis. Such fees are deposited in dedicated, government-controlled funds to cover the future costs of closure and post-closure care and maintenance. Such fees are periodically reviewed for adequacy by the governmental authorities. We also maintain a surety bond for closure costs associated with the Stablex facility. Our lease agreement with the Province of Québec requires that the surety bond be maintained for 25 years after the lease expires. At December 31, 2013 we had $845,000 in commercial surety bonds dedicated for closure obligations. | ||||||||
In accounting for our asset retirement obligations we recognize a liability as part of the fair value of future asset retirement obligations and an associated asset as part of the carrying amount of the underlying asset. This obligation is valued based on our best estimates of current costs and current estimated closure cost taking into account current technology, material and service costs, laws and regulations. These cost estimates are increased by an estimated inflation rate, estimated to be 2.6% at December 31, 2013. Inflated current costs are then discounted using our credit-adjusted risk-free interest rate, which approximates our incremental borrowing rate, in effect at the time the obligation is established or when there are upward revisions to our estimated closure and post-closure costs. Our weighted-average credit-adjusted risk-free interest rate at December 31, 2013 approximated 7.6%. We perform periodic reviews of both non-operating and operating sites and revise the accruals as necessary. | ||||||||
Changes to reported closure and post-closure obligations for the years ended December 31, 2013 and 2012, were as follows: | ||||||||
$s in thousands | 2013 | 2012 | ||||||
Closure and post-closure obligations, beginning of year | $ | 17,362 | $ | 17,338 | ||||
Accretion expense | 1,241 | 1,367 | ||||||
Payments | (1,715 | ) | (2,398 | ) | ||||
Adjustments | 760 | 1,036 | ||||||
Foreign currency translation | (180 | ) | 19 | |||||
| | | | | | | | |
Closure and post-closure obligations, end of year | 17,468 | 17,362 | ||||||
Less current portion | (949 | ) | (1,913 | ) | ||||
| | | | | | | | |
Long-term portion | $ | 16,519 | $ | 15,449 | ||||
| | | | | | | | |
| | | | | | | | |
The adjustment to the obligation is a change in the expected timing or amount of cash expenditures based upon actual and estimated cash expenditures. The adjustments in 2013 were: (1) an $848,000 increase to the obligation for our Grand View, Idaho; Robstown, Texas; and Blainville, Québec, Canada operating facilities, primarily due to increases in our estimated closure costs for newly constructed disposal cells, partially offset by (2) an $88,000 decrease in obligations for our non-operating facilities due to changes in estimated post-closure costs. The adjustments in 2012 were: (1) a $964,000 increase to the obligation for our Grand View, Idaho; Robstown, Texas; and Blainville, Québec, Canada operating facilities, primarily due to increases in our estimated closure costs for newly constructed disposal cells and (2) a $72,000 increase in obligations for our non-operating facilities due to changes in estimated post-closure costs. | ||||||||
Changes in the reported closure and post-closure asset, recorded as a component of Property and equipment, net, in the consolidated balance sheet, for the years ended December 31, 2013 and 2012 were as follows: | ||||||||
$s in thousands | 2013 | 2012 | ||||||
Net closure and post-closure asset, beginning of year | $ | 1,629 | $ | 1,280 | ||||
Additions or adjustments to closure and post-closure asset | 886 | 921 | ||||||
Amortization of closure and post-closure asset | (552 | ) | (584 | ) | ||||
Foreign currency translation | (131 | ) | 12 | |||||
| | | | | | | | |
Net closure and post-closure asset, end of year | $ | 1,832 | $ | 1,629 | ||||
| | | | | | | | |
| | | | | | | | |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2013 | |
DEBT | ' |
DEBT | ' |
NOTE 13. DEBT | |
On October 29, 2010, we entered into a credit agreement with Wells Fargo which, as amended, provides for an aggregate commitment from Wells Fargo of $95.0 million (the "Credit Agreement"). The Credit Agreement provides for a $20.0 million revolving line of credit (the "Revolving Line of Credit") with a maturity date of November 1, 2015 and a $75.0 million reducing revolving line of credit (the "Reducing Revolving Line of Credit") with a maturity date of November 1, 2015. | |
Revolving Line of Credit | |
The Revolving Line of Credit provides up to $20.0 million in revolving credit loans or letters of credit for working capital needs (the "Commitment Amount"). Under the Revolving Line of Credit, revolving loans are available based on the Prime Rate or LIBOR, at the Company's option, plus an applicable margin, which is determined according to a pricing grid under which the interest rate decreases or increases based on our ratio of funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA"). At December 31, 2013, the effective interest rate on the Revolving Line of Credit was 1.42%. Interest only payments are due either monthly or on the last day of any interest period, as applicable. At December 31, 2013 there were no borrowings outstanding under the Revolving Line of Credit. The availability under the Revolving Line of Credit was $16.0 million with $4.0 million of the line of credit issued in the form of a standby letter of credit utilized as collateral for closure and post-closure financial assurance. | |
Reducing Revolving Line of Credit | |
The Reducing Revolving Line of Credit provides an initial commitment amount of $75.0 million (the "Reducing Revolving Commitment Amount"). The Reducing Revolving Commitment Amount is reduced by $2.8 million on the last day of each March, June, September and December beginning March 31, 2013, continuing through November 1, 2015. Under the Reducing Revolving Line of Credit revolving loans are available based on the Prime Rate or LIBOR, at the Company's option, plus an applicable margin, which is determined according to a pricing grid under which the interest rate decreases or increases based on our ratio of funded debt to EBITDA. At December 31, 2013, the effective interest rate of the Reducing Revolving Line of Credit was 1.42%. Interest only payments are due either monthly or on the last day of any interest period, as applicable. At December 31, 2013, there were no borrowings outstanding on the Reducing Revolving Line of Credit with $63.9 million available for borrowing. | |
In addition to standard fees, origination fees and commitment fees apply to the average daily unused portion of the Commitment Amount and the Reducing Revolving Commitment Amount. The Credit Agreement contains certain quarterly financial covenants, including a maximum funded debt ratio, a maximum fixed charge coverage ratio, a minimum required tangible net worth and a minimum current ratio. We may only declare quarterly or annual dividends if on the date of declaration, no event of default has occurred and no other event or condition has occurred that would constitute an event of default due to the payment of the dividend. Obligations under the Credit Agreement are guaranteed by US Ecology and all of its subsidiaries. | |
At December 31, 2013, we were in compliance with all of the financial covenants in the Credit Agreement. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
NOTE 14. INCOME TAXES | |||||||||||
The components of the income tax expense consisted of the following: | |||||||||||
$s in thousands | 2013 | 2012 | 2011 | ||||||||
Current: | |||||||||||
U.S. Federal | $ | 14,769 | $ | 13,989 | $ | 10,662 | |||||
State | 2,241 | 1,905 | 1,237 | ||||||||
Foreign | 3,623 | 873 | 632 | ||||||||
| | | | | | | | | | | |
Total current | 20,633 | 16,767 | 12,531 | ||||||||
Deferred: | |||||||||||
U.S. Federal | (2,068 | ) | (270 | ) | (396 | ) | |||||
State | (218 | ) | 79 | (85 | ) | ||||||
Foreign | (351 | ) | (517 | ) | (613 | ) | |||||
| | | | | | | | | | | |
Total deferred | (2,637 | ) | (708 | ) | (1,094 | ) | |||||
| | | | | | | | | | | |
Income tax expense | $ | 17,996 | $ | 16,059 | $ | 11,437 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
A reconciliation between the effective income tax rate and the applicable statutory federal and state income tax rate is as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Taxes computed at statutory rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes (net of federal income tax benefit) | 2.7 | 3.3 | 2.5 | ||||||||
Foreign rate differential | (2.0 | ) | (0.3 | ) | — | ||||||
Other | 0.2 | 0.5 | 0.9 | ||||||||
| | | | | | | | | | | |
35.9 | % | 38.5 | % | 38.4 | % | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The components of the total net deferred tax assets and liabilities as of December 31, 2013 and 2012 consisted of the following: | |||||||||||
$s in thousands | 2013 | 2012 | |||||||||
Deferred tax assets: | |||||||||||
Net operating loss carry forward | $ | 6,270 | $ | 5,555 | |||||||
Accruals, allowances and other | 1,708 | 2,065 | |||||||||
Environmental compliance and other site related costs | 554 | — | |||||||||
Other | 460 | — | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 8,992 | 7,620 | |||||||||
Less: valuation allowance | (6,253 | ) | (5,537 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | 2,739 | 2,083 | |||||||||
Deferred tax liabilities: | |||||||||||
Property and equipment | (6,752 | ) | (6,646 | ) | |||||||
Intangible assets | (9,425 | ) | (10,463 | ) | |||||||
Environmental compliance and other site related costs | — | (1,228 | ) | ||||||||
Other | — | (629 | ) | ||||||||
| | | | | | | | ||||
Total deferred tax liabilities | (16,177 | ) | (18,966 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | $ | (13,438 | ) | $ | (16,883 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
We do not accrue U.S. tax for foreign earnings that we consider to be permanently reinvested outside the United States. As of December 31, 2013, there were no unremitted earnings for the Company's foreign subsidiary, Stablex. The Company had no foreign subsidiaries prior to 2010. We also do not provide for deferred taxes on the excess of the tax basis over the financial reporting basis in our investment in Stablex that is essentially permanent in duration. The excess totaled $14.2 million as of December 31, 2013. | |||||||||||
We have historically recorded a valuation allowance for certain deferred tax assets due to uncertainties regarding future operating results and limitations on utilization of net operating loss carry forwards ("NOLs") for tax purposes. State NOLs expire between 2014 and 2021.The realization of a significant portion of net deferred tax assets is based in part on our estimates of the timing of reversals of certain temporary differences and on the generation of taxable income before such reversals. At December 31, 2013 and 2012, we continued to maintain a valuation allowance for approximately $6.3 million and $5.5 million, respectively, of state tax benefits that are not expected to be utilizable prior to expiration. | |||||||||||
The domestic and foreign components of Income (loss) before income taxes consisted of the following: | |||||||||||
$s in thousands | 2013 | 2012 | 2011 | ||||||||
Domestic | 37,958 | 40,425 | 29,775 | ||||||||
Foreign | 12,189 | 1,293 | 32 | ||||||||
| | | | | | | | | | | |
Income before income taxes | $ | 50,147 | $ | 41,718 | $ | 29,807 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The changes to unrecognized tax benefits (excluding related penalties and interest) consisted of the following: | |||||||||||
$s in thousands | 2013 | 2012 | 2011 | ||||||||
Unrecognized tax benefits, beginning of year | $ | 438 | $ | 438 | $ | — | |||||
Gross increases in tax positions in prior periods | — | — | 438 | ||||||||
Gross increases during the current period | — | — | — | ||||||||
Settlements | — | — | — | ||||||||
Lapse of statute of limitations | — | — | — | ||||||||
| | | | | | | | | | | |
Unrecognized tax benefits, end of year | $ | 438 | $ | 438 | $ | 438 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
As of December 31, 2013, the Company's unrecognized tax benefits represent increases in tax positions in prior periods for new information that supported a change in measurement that, if recognized, would favorably affect the effective tax rate. We recognize interest assessed by taxing authorities or interest associated with uncertain tax positions as a component of interest expense. We recognize any penalties assessed by taxing authorities or penalties associated with uncertain tax positions as a component of selling, general and administrative expenses. Interest expense related to unrecognized tax benefits was $13,000, $13,000 and $16,000 for the years ended December 31, 2013, 2012 and 2011, respectively. We anticipate that within the next twelve months the total amount of unrecognized tax benefits will decrease due to the expiration of statutes of limitations. | |||||||||||
We file a consolidated U.S. federal income tax return with the Internal Revenue Service ("IRS") as well as income tax returns in various states and Canada. We may be subject to examination by taxing authorities in the U.S. and Canada for tax years 2010 through 2013. Additionally, we may be subject to examinations by various state and local taxing jurisdictions for tax years 2009 through 2013. We are currently not aware of any examinations by taxing authorities. | |||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES. | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 15. COMMITMENTS AND CONTINGENCIES | |||||
Litigation and Regulatory Proceedings | |||||
In the ordinary course of business, we are involved in judicial and administrative proceedings involving federal, state, provincial or local governmental authorities, including regulatory agencies that oversee and enforce compliance with permits. Fines or penalties may be assessed by our regulators for non-compliance. Regulators may also issue orders limiting waste handling operations. Actions may also be brought by individuals or groups in connection with permitting of planned facilities, modification or alleged violations of existing permits, or alleged damages suffered from exposure to hazardous substances purportedly released from our operated sites, as well as other litigation. We maintain insurance intended to cover property and damage claims asserted as a result of our operations. Periodically, management reviews and may establish reserves for legal and administrative matters, or other fees expected to be incurred in relation to these matters. | |||||
In 2012, we settled allegations by the United States Environment Protection Agency ("USEPA") that the thermal recycling operation at our Robstown, Texas facility did not comply with certain rules and regulations of the Resource Conservation and Recovery Act of 1976 ("RCRA"). As part of the settlement, we agreed to pay a civil penalty and to submit an application to the State of Texas for a RCRA Subpart X permit. The Company and the thermal recycling unit's owner-operator also agreed to a set of interim operating conditions that allow the facility to continue providing recycling services to customers until the RCRA Subpart X permit is issued. | |||||
In connection with this matter, in June 2013 the USEPA asserted various related technical compliance and permitting violations of the Clean Air Act of 1970. Negotiations on a proposed settlement are ongoing with the USEPA. We recognized a charge of $238,000 during 2013 in Selling, general and administrative expenses in the Consolidated Statement of Operations related to this pending enforcement matter. | |||||
Other than as disclosed above, we are not currently a party to any material pending legal proceedings and are not aware of any other claims that could have a materially adverse effect on our financial position, results of operations or cash flows. | |||||
Operating Leases | |||||
Lease agreements primarily cover railcars, the disposal site at our Stablex facility and corporate office space. Future minimum lease payments on non-cancellable operating leases as of December 31, 2013 are as follows: | |||||
$s in thousands | Payments | ||||
2014 | $ | 495 | |||
2015 | 435 | ||||
2016 | 343 | ||||
2017 | 339 | ||||
2018 | 333 | ||||
Thereafter | 54 | ||||
| | | | | |
$ | 1,999 | ||||
| | | | | |
| | | | | |
Rental expense under operating leases was $685,000, $495,000 and $483,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
EQUITY
EQUITY | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
EQUITY | ' | |||||||||||||
EQUITY | ' | |||||||||||||
NOTE 16. EQUITY | ||||||||||||||
Public Common Stock Offering | ||||||||||||||
In December 2013, we sold and issued 2,990,000 shares of our common stock, including 390,000 shares pursuant to the underwriters' option to purchase additional shares, at a price of $34.00 per share. We received net proceeds of $96.4 million after deducting underwriting discounts, commissions and offering expenses. $30.0 million of the net proceeds were used to repay amounts outstanding under the Credit Agreement. | ||||||||||||||
Stock Option Plans | ||||||||||||||
We have options outstanding under three stock option plans, the 1992 Stock Option Plan for Employees ("1992 Employee Plan"), the 1992 Director Stock Option Plan ("1992 Director Plan") and the 2008 Stock Option Incentive Plan ("2008 Stock Option Plan"). In March 2005, the Board of Directors cancelled the 1992 Director Plan except for options then outstanding. In April 2013, the 1992 Employee Plan expired and was cancelled except for options then outstanding. These plans were developed to provide additional incentives through equity ownership in US Ecology and, as a result, encourage employees and directors to contribute to our success. Stock options expire ten years from the date of grant and vest over a period ranging from one to three years from the date of grant. Vesting requirements for non-employee directors are contingent on attending a minimum of seventy-five percent of regularly scheduled board meetings during the year. 1,500,000 stock options have been authorized for grant under the 2008 Stock Option Plan, with 879,000 options available for future grant as of December 31, 2013. Upon the exercise of stock options, common stock is issued from treasury stock or, when depleted, from new stock issuances. | ||||||||||||||
A summary of our stock option plan activity is as follows: | ||||||||||||||
$s in thousands, except per share amounts | Shares | Weighted | Aggregate | Weighted | ||||||||||
Average | Intrinsic | Average | ||||||||||||
Exercise | Value | Remaining | ||||||||||||
Price | Contractual | |||||||||||||
Term (Years) | ||||||||||||||
Outstanding as of December 31, 2012 | 434,512 | $ | 18.93 | |||||||||||
Granted | 216,600 | 25.56 | ||||||||||||
Exercised | (256,336 | ) | 18.99 | |||||||||||
Cancelled, expired or forfeited | (1,000 | ) | 25.25 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding as of December 31, 2013 | 393,776 | $ | 22.52 | $ | 5,742 | 7.7 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable as of December 31, 2013 | 145,138 | $ | 18.76 | $ | 2,661 | 5.4 | ||||||||
The weighted average grant date fair value of all stock options granted during 2013, 2012 and 2011 was $5.06, $4.03 and $4.04 per share, respectively. The total intrinsic value of stock options exercised during 2013, 2012 and 2011 was $2.4 million, $497,000 and $39,000, respectively. | ||||||||||||||
The fair value of each stock option is estimated as of the date of grant using the Black-Scholes option-pricing model. Expected volatility is estimated based on an average of actual historical volatility and implied volatility corresponding to the stock option's estimated expected term. We believe this approach to determine volatility is representative of future stock volatility. The expected term of a stock option is estimated based on analysis of stock options already exercised and foreseeable trends or changes in behavior. The risk-free interest rates are based on the U.S. Treasury securities maturities as of each applicable grant date. The dividend yield is based on analysis of actual historical dividend yield. | ||||||||||||||
The significant weighted-average assumptions relating to the valuation of each option grant are as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected life | 3.3 years | 3.3 years | 3.3 years | |||||||||||
Expected volatility | 36% | 39% | 46% | |||||||||||
Risk-free interest rate | 0.40% | 0.40% | 1.20% | |||||||||||
Expected dividend yield | 3.40% | 4.10% | 4.50% | |||||||||||
Restricted Stock Plans | ||||||||||||||
We have two restricted stock plans: the Amended and Restated 2005 Non-Employee Director Compensation Plan (the "Director Plan") and the 2006 Restricted Stock Plan (the "Employee Plan"). The Director Plan provides that each non-employee director receive an annual award of either the number of shares of restricted stock or options to purchase US Ecology common stock (at each Director's election) with a value equal to $50,000 on the date of grant with a one-year vesting period. Vesting is also contingent on the non-employee director attending a minimum of seventy-five percent of regularly scheduled board meetings during the year. 200,000 shares of common stock have been authorized for grant under the Director Plan. During 2013, 9,000 shares were granted to non-employee directors. As of December 31, 2013, 67,200 shares remained available for grant under the Director Plan. The Employee Plan provides that employees are eligible for restricted stock grants at the discretion of the Board of Directors. Generally, awards granted under the Employee Plan vest monthly over a twelve-month period. 200,000 shares of common stock have been authorized for grant under the Employee Plan. During 2013, 42,800 shares were granted to employees. As of December 31, 2013, 72,062 shares remained available for future grant under the Employee Plan. Upon the vesting of restricted stock awards, common stock is issued from treasury stock or, when depleted, from new stock issuances. | ||||||||||||||
A summary of our restricted stock plan activity is as follows: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Outstanding as of December 31, 2012 | 11,200 | $ | 17.73 | |||||||||||
Granted | 51,800 | 25.89 | ||||||||||||
Vested | (11,200 | ) | 17.73 | |||||||||||
Cancelled, expired or forfeited | (200 | ) | 25.25 | |||||||||||
| | | | | | | | |||||||
Outstanding as of December 31, 2013 | 51,600 | $ | 25.89 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
The total fair value of restricted stock vested during 2013, 2012 and 2011 was $299,000, $413,000 and $340,000, respectively. | ||||||||||||||
Share-Based Compensation Expense | ||||||||||||||
All share-based compensation is measured at the grant date based on the fair value of the award, and is recognized as an expense in earnings over the requisite service period. The components of pre-tax share-based compensation expense (included in Selling, general and administrative expenses in the Consolidated Statements of Earnings) and related tax benefits were as follows: | ||||||||||||||
$s in thousands | 2013 | 2012 | 2011 | |||||||||||
Share-based compensation from: | ||||||||||||||
Stock options | $ | 346 | $ | 397 | $ | 449 | ||||||||
Restrict stock | 519 | 449 | 388 | |||||||||||
| | | | | | | | | | | ||||
Total share-based compensation | 865 | 846 | 837 | |||||||||||
Income tax benefit | (310 | ) | (326 | ) | (321 | ) | ||||||||
| | | | | | | | | | | ||||
Share-based compensation, net of tax | $ | 555 | $ | 520 | $ | 516 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Unrecognized Share-Based Compensation Expense | ||||||||||||||
As of December 31, 2013, there was $1.9 million of unrecognized compensation expense related to unvested share-based awards granted under our share-based award plans. The expense is expected to be recognized over a weighted average remaining vesting period of approximately two years. | ||||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||||||||
NOTE 17. EARNINGS PER SHARE | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
$s and shares in thousands, except per share | Basic | Diluted | Basic | Diluted | Basic | Diluted | ||||||||||||||
amounts | ||||||||||||||||||||
Net income | $ | 32,151 | $ | 32,151 | $ | 25,659 | $ | 25,659 | $ | 18,370 | $ | 18,370 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Weighted average basic shares outstanding | 18,592 | 18,592 | 18,238 | 18,238 | 18,198 | 18,198 | ||||||||||||||
Dilutive effect of stock options and restricted stock | 84 | 43 | 25 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Weighted average diluted shares outstanding | 18,676 | 18,281 | 18,223 | |||||||||||||||||
Earnings per share | $ | 1.73 | $ | 1.72 | $ | 1.41 | $ | 1.4 | $ | 1.01 | $ | 1.01 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Anti-dilutive shares excluded from calculation | 156 | 266 | 320 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
OPERATING_SEGMENTS
OPERATING SEGMENTS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
OPERATING SEGMENTS | ' | |||||||||||||
OPERATING SEGMENTS | ' | |||||||||||||
NOTE 18. OPERATING SEGMENTS | ||||||||||||||
Financial Information by Operating Segment | ||||||||||||||
We operate with two segments, Operating Disposal Facilities, and Non-Operating Disposal Facilities. These segments reflect our internal reporting structure and nature of services offered. The Operating Disposal Facility segment represents disposal facilities accepting hazardous and radioactive waste. The Non-Operating Disposal Facility segment represents facilities which are not accepting hazardous and/or radioactive waste or formerly proposed new facilities. | ||||||||||||||
Income taxes are assigned to Corporate, but all other items are included in the segment where they originated. Inter-company transactions have been eliminated from the segment information and are not significant between segments. | ||||||||||||||
Summarized financial information concerning our reportable segments is as follows: | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
$s in thousands | Operating | Non- | Corporate | Total | ||||||||||
Disposal | Operating | |||||||||||||
Facilities | Disposal | |||||||||||||
Facilities | ||||||||||||||
Revenue—Treatment and disposal | $ | 165,089 | $ | 20 | $ | — | $ | 165,109 | ||||||
Revenue—Transportation services | 36,017 | — | — | 36,017 | ||||||||||
| | | | | | | | | | | | | | |
Total revenue | 201,106 | 20 | — | 201,126 | ||||||||||
Direct operating costs | 86,111 | 127 | — | 86,238 | ||||||||||
Transportation costs | 35,902 | — | — | 35,902 | ||||||||||
| | | | | | | | | | | | | | |
Gross profit (loss) | 79,093 | (107 | ) | — | 78,986 | |||||||||
Selling, general & administrative expenses | 11,826 | — | 14,229 | 26,055 | ||||||||||
| | | | | | | | | | | | | | |
Operating income (loss) | 67,267 | (107 | ) | (14,229 | ) | 52,931 | ||||||||
Interest income (expense), net | 13 | — | (822 | ) | (809 | ) | ||||||||
Foreign currency gain (loss) | 542 | — | (2,869 | ) | (2,327 | ) | ||||||||
Other income | 342 | 10 | — | 352 | ||||||||||
| | | | | | | | | | | | | | |
Income (loss) before income taxes | 68,164 | (97 | ) | (17,920 | ) | 50,147 | ||||||||
Income tax expense | — | — | 17,996 | 17,996 | ||||||||||
| | | | | | | | | | | | | | |
Net income (loss) | $ | 68,164 | $ | (97 | ) | $ | (35,916 | ) | $ | 32,151 | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Depreciation, amortization & accretion | $ | 17,270 | $ | 208 | $ | 39 | $ | 17,517 | ||||||
Capital expenditures | $ | 20,989 | $ | — | $ | 384 | $ | 21,373 | ||||||
Total assets | $ | 222,049 | $ | 79 | $ | 78,428 | $ | 300,556 | ||||||
Year Ended December 31, 2012 | ||||||||||||||
$s in thousands | Operating | Non- | Corporate | Total | ||||||||||
Disposal | Operating | |||||||||||||
Facilities | Disposal | |||||||||||||
Facilities | ||||||||||||||
Revenue—Treatment and disposal | $ | 145,687 | $ | 20 | $ | — | $ | 145,707 | ||||||
Revenue—Transportation services | 23,431 | — | — | 23,431 | ||||||||||
| | | | | | | | | | | | | | |
Total revenue | 169,118 | 20 | — | 169,138 | ||||||||||
Direct operating costs | 78,883 | 294 | — | 79,177 | ||||||||||
Transportation costs | 23,663 | 1 | — | 23,664 | ||||||||||
| | | | | | | | | | | | | | |
Gross profit (loss) | 66,572 | (275 | ) | — | 66,297 | |||||||||
Selling, general & administrative expenses | 11,567 | — | 14,092 | 25,659 | ||||||||||
| | | | | | | | | | | | | | |
Operating income (loss) | 55,005 | (275 | ) | (14,092 | ) | 40,638 | ||||||||
Interest income (expense), net | 17 | — | (878 | ) | (861 | ) | ||||||||
Foreign currency gain (loss) | (169 | ) | — | 1,382 | 1,213 | |||||||||
Other income | 723 | 5 | — | 728 | ||||||||||
| | | | | | | | | | | | | | |
Income (loss) before income taxes | 55,576 | (270 | ) | (13,588 | ) | 41,718 | ||||||||
Income tax expense | — | — | 16,059 | 16,059 | ||||||||||
| | | | | | | | | | | | | | |
Net income (loss) | $ | 55,576 | $ | (270 | ) | $ | (29,647 | ) | $ | 25,659 | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Depreciation, amortization & accretion | $ | 16,494 | $ | 216 | $ | 42 | $ | 16,752 | ||||||
Capital expenditures | $ | 15,707 | $ | 17 | $ | 42 | $ | 15,766 | ||||||
Total assets | $ | 210,984 | $ | 93 | $ | 7,617 | $ | 218,694 | ||||||
Year Ended December 31, 2011 | ||||||||||||||
$s in thousands | Operating | Non- | Corporate | Total | ||||||||||
Disposal | Operating | |||||||||||||
Facilities | Disposal | |||||||||||||
Facilities | ||||||||||||||
Revenue—Treatment and disposal | $ | 129,049 | $ | 22 | $ | — | $ | 129,071 | ||||||
Revenue—Transportation services | 25,846 | — | — | 25,846 | ||||||||||
| | | | | | | | | | | | | | |
Total revenue | 154,895 | 22 | — | 154,917 | ||||||||||
Direct operating costs | 73,455 | 303 | — | 73,758 | ||||||||||
Transportation costs | 27,292 | — | — | 27,292 | ||||||||||
| | | | | | | | | | | | | | |
Gross profit (loss) | 54,148 | (281 | ) | — | 53,867 | |||||||||
Selling, general & administrative expenses | 10,165 | — | 11,337 | 21,502 | ||||||||||
| | | | | | | | | | | | | | |
Operating income (loss) | 43,983 | (281 | ) | (11,337 | ) | 32,365 | ||||||||
Interest income (expense), net | 23 | — | (1,601 | ) | (1,578 | ) | ||||||||
Foreign currency gain (loss) | 26 | — | (1,347 | ) | (1,321 | ) | ||||||||
Other income | 340 | 1 | — | 341 | ||||||||||
| | | | | | | | | | | | | | |
Income (loss) before income taxes | 44,372 | (280 | ) | (14,285 | ) | 29,807 | ||||||||
Income tax expense | — | — | 11,437 | 11,437 | ||||||||||
| | | | | | | | | | | | | | |
Net income (loss) | $ | 44,372 | $ | (280 | ) | $ | (25,722 | ) | $ | 18,370 | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Depreciation, amortization & accretion | $ | 16,375 | $ | 218 | $ | 51 | $ | 16,644 | ||||||
Capital expenditures | $ | 9,974 | $ | 16 | $ | 106 | $ | 10,096 | ||||||
Total assets | $ | 195,552 | $ | 88 | $ | 6,948 | $ | 202,588 | ||||||
Revenue, Property, Plant and Equipment and Intangible Assets Outside of the United States | ||||||||||||||
We provide services in the United States and Canada. Revenues by geographic location where the underlying services were performed for the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
$s in thousands | 2013 | 2012 | 2011 | |||||||||||
United States | $ | 147,128 | $ | 130,889 | $ | 118,402 | ||||||||
Canada | 53,998 | 38,249 | 36,515 | |||||||||||
| | | | | | | | | | | ||||
$ | 201,126 | $ | 169,138 | $ | 154,917 | |||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Long-lived assets, comprised of property and equipment and intangible assets net of accumulated depreciation and amortization, by geographic location as of December 31, 2013 and 2012 are as follows: | ||||||||||||||
$s in thousands | 2013 | 2012 | ||||||||||||
United States | $ | 86,175 | $ | 81,605 | ||||||||||
Canada | 65,516 | 68,958 | ||||||||||||
| | | | | | | | |||||||
$ | 151,691 | $ | 150,563 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
QUARTERLY_FINANCIAL_DATA_unaud
QUARTERLY FINANCIAL DATA (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
QUARTERLY FINANCIAL DATA (unaudited) | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA (unaudited) | ' | ||||||||||||||||
NOTE 19. QUARTERLY FINANCIAL DATA (unaudited) | |||||||||||||||||
The unaudited consolidated quarterly results of operations for 2013 and 2012 were as follows: | |||||||||||||||||
Three-Months Ended | |||||||||||||||||
$s and shares in thousands, except per share amounts | Mar. 31, | June 30, | Sept. 30, | Dec. 31, | Year | ||||||||||||
2013 | |||||||||||||||||
Revenue | $ | 42,899 | $ | 45,777 | $ | 53,090 | $ | 59,360 | $ | 201,126 | |||||||
Gross profit | 15,382 | 18,928 | 21,620 | 23,056 | 78,986 | ||||||||||||
Operating income | 9,656 | 12,409 | 15,512 | 15,354 | 52,931 | ||||||||||||
Net income | 5,406 | 7,210 | 10,328 | 9,207 | 32,151 | ||||||||||||
Earnings per share—diluted(1) | $ | 0.29 | $ | 0.39 | $ | 0.56 | $ | 0.48 | $ | 1.72 | |||||||
Weighted average common shares outstanding used in the diluted earnings per share calculation | 18,407 | 18,483 | 18,533 | 19,281 | 18,676 | ||||||||||||
Dividends paid per share | $ | — | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.54 | |||||||
2012 | |||||||||||||||||
Revenue | $ | 33,013 | $ | 39,980 | $ | 45,739 | $ | 50,406 | $ | 169,138 | |||||||
Gross profit | 12,076 | 17,326 | 18,589 | 18,306 | 66,297 | ||||||||||||
Operating income | 6,471 | 10,960 | 12,393 | 10,814 | 40,638 | ||||||||||||
Net income | 4,523 | 6,362 | 8,662 | 6,112 | 25,659 | ||||||||||||
Earnings per share—diluted(1) | $ | 0.25 | $ | 0.35 | $ | 0.47 | $ | 0.33 | $ | 1.4 | |||||||
Weighted average common shares outstanding used in the diluted earnings per share calculation | 18,254 | 18,264 | 18,270 | 18,332 | 18,281 | ||||||||||||
Dividends paid per share | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.36 | $ | 0.9 | |||||||
-1 | |||||||||||||||||
Diluted earnings per common share for each quarter presented above are based on the respective weighted average number of common shares for the respective quarter. The dilutive potential common shares outstanding for each period and the sum of the quarters may not necessarily be equal to the full year diluted earnings per common share amount. | |||||||||||||||||
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2013 | |
SUBSEQUENT EVENT | ' |
SUBSEQUENT EVENT | ' |
NOTE 20. SUBSEQUENT EVENT | |
On January 2, 2014 the Company declared a dividend of $0.18 per common share for stockholders of record on January 20, 2014. The dividend was paid from cash on hand on January 28, 2014 in an aggregate amount of $3.9 million. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
Principles of Consolidation | ' | ||
Principles of Consolidation | |||
The accompanying financial statements are prepared on a consolidated basis. All significant inter-company balances and transactions have been eliminated in consolidation. Our year-end is December 31. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist primarily of cash on deposit, money market accounts or short-term investments with remaining maturities of 90 days or less at the date of acquisition. | |||
Receivables | ' | ||
Receivables | |||
Receivables are stated at an amount management expects to collect. Based on management's assessment of the credit history of the customers having outstanding balances and factoring in current economic conditions, management has concluded that potential unidentified losses on balances outstanding at year-end will not be material. | |||
Restricted Cash and Investments | ' | ||
Restricted Cash and Investments | |||
Restricted cash and investments of $4.1 million at December 31, 2013 and 2012 represent funds held in third-party managed trust accounts as collateral for our financial assurance obligations for post-closure activities at our non-operating facilities. These funds are invested in fixed-income U.S. Treasury and government agency securities and money market accounts. The balances are adjusted monthly to fair market value based on quoted prices in active markets for identical or similar assets. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
We recognize revenue when persuasive evidence of an arrangement exists, delivery and disposal have occurred or services have been rendered, the price is fixed or determinable and collection is reasonably assured. We recognize revenue from two primary sources: 1) waste treatment, recycling and disposal and 2) waste transportation services. | |||
Waste treatment and disposal revenue results primarily from fees charged to customers for treatment and/or disposal or recycling of specified wastes. Waste treatment and disposal revenue is generally charged on a per-ton or per-yard basis based on contracted prices and is recognized when services are complete and the waste is disposed of in our landfill. | |||
Transportation revenue results from delivering customer waste to a disposal facility for treatment and/or disposal or recycling. Transportation services are generally not provided on a stand-alone basis and instead are bundled with other Company services. However, in some instances we provide transportation and logistics services for shipment of waste from clean-up sites to disposal facilities operated by other companies. We account for our bundled arrangements as multiple deliverable arrangements and determine the amount of revenue recognized for each deliverable (unit of accounting) using the relative fair value method. Transportation revenue is recognized when the transported waste is received at the disposal facility. Waste treatment and disposal revenue under bundled arrangements is recognized when services are complete and the waste is disposed in the landfill. | |||
Burial fees collected from customers for each ton or cubic yard of waste disposed in our landfills are paid to the respective local and/or state government entity and are not included in revenue. Revenue and associated cost from waste that has been received but not yet treated and disposed of in our landfills are deferred until disposal occurs. | |||
Our Richland, Washington disposal facility is regulated by the Washington Utilities and Transportation Commission ("WUTC"), which approves our rates for disposal of LLRW. Annual revenue levels are established based on a rate agreement with the WUTC at amounts sufficient to cover the costs of operation, including facility maintenance, equipment replacement and related costs, and provide us with a reasonable profit. Per-unit rates charged to LLRW customers during the year are based on our evaluation of disposal volume and radioactivity projections submitted to us by waste generators. Our proposed rates are then reviewed and approved by the WUTC. If annual revenue exceeds the approved levels set by the WUTC, we are required to refund excess collections to facility users on a pro-rata basis. The current rate agreement with the WUTC was extended in 2013 and is effective until January 1, 2020. | |||
Unbilled Receivables | ' | ||
Unbilled Receivables | |||
Unbilled receivables are recorded for work performed under contracts that have not yet been invoiced to customers and arise due to the timing of billings. Substantially all unbilled receivables at December 31, 2013, were billed in the following month. | |||
Deferred Revenue | ' | ||
Deferred Revenue | |||
Revenue from waste that has been received but not yet treated and disposed of in our landfill or advance billings prior to treatment and disposal services are deferred until such services are completed. | |||
Property and Equipment | ' | ||
Property and Equipment | |||
Property and equipment are recorded at cost and depreciated on the straight-line method over estimated useful lives. Replacements and major repairs of property and equipment are capitalized and retirements are made when assets are disposed of or when the useful life has been exhausted. Minor components and parts are expensed as incurred. Repair and maintenance expenses were $5.5 million, $4.6 million and $3.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
We assume no salvage value for our depreciable fixed assets. The estimated useful lives for significant property and equipment categories are as follows: | |||
Useful Lives | |||
Vehicles and other equipment | 3 to 10 years | ||
Disposal facility and equipment | 3 to 20 years | ||
Buildings and improvements | 5 to 40 years | ||
Railcars | 40 years | ||
Disposal Cell Accounting | ' | ||
Disposal Cell Accounting | |||
Qualified disposal cell development costs such as personnel and equipment costs incurred to construct new disposal cells are recorded and capitalized at cost. Capitalized cell development costs, net of recorded amortization, are added to estimated future costs of the permitted disposal cell to be incurred over the remaining construction of the cell, to determine the amount to be amortized over the remaining estimated cell life. Estimates of future costs are developed using input from independent engineers and internal technical and accounting managers. We review these estimates at least annually. Amortization is recorded on a unit of consumption basis, typically applying cost as a rate per cubic yard disposed. Disposal facility costs are expected to be fully amortized upon final closure of the facility, as no salvage value applies. Costs associated with ongoing disposal operations are charged to expense as incurred. | |||
We have material financial commitments for closure and post-closure obligations for certain facilities we own or operate. We estimate future cost requirements for closure and post-closure monitoring based on RCRA and conforming state requirements and facility permits. RCRA requires that companies provide the responsible regulatory agency acceptable financial assurance for closure work and subsequent post-closure monitoring of each facility for 30 years following closure. Estimates for final closure and post-closure costs are developed using input from our technical and accounting managers as well as independent engineers and are reviewed by management at least annually. These estimates involve projections of costs that will be incurred after the disposal facility ceases operations, through the required post-closure care period. The present value of the estimated closure and post-closure costs are accreted using the interest method of allocation to direct costs in our consolidated statement of operations so that 100% of the future cost has been incurred at the time of payment. | |||
Business Combinations | ' | ||
Business Combinations | |||
We account for business combinations under the acquisition method of accounting. The cost of an acquired company is assigned to the tangible and identifiable intangible assets purchased and the liabilities assumed on the basis of their fair values at the date of acquisition. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is assigned to goodwill. The transaction costs associated with business combinations are expensed as they are incurred. | |||
Goodwill | ' | ||
Goodwill | |||
Goodwill represents the excess of the fair value of the consideration transferred over the fair value of the underlying identifiable assets and liabilities acquired. Goodwill is not amortized, but instead is assessed for impairment annually in the fourth quarter and also if an event occurs or circumstances change that may indicate a possible impairment. In the event that we determine that the value of goodwill has become impaired, we will incur an accounting charge for the amount of impairment during the period in which the determination has been made. Goodwill was recognized in connection with our acquisition of US Ecology Michigan, Inc. in 2012 and our acquisition of Stablex in 2010. | |||
Intangible Assets | ' | ||
Intangible Assets | |||
Intangible assets are stated at the fair value assigned in a business combination net of amortization. We amortize our finite-lived intangible assets using the straight-line method over their estimated economic lives ranging from 1 to 33 years. We review intangible assets with indefinite useful lives for impairment during the fourth quarter of each year. We also review both indefinite-lived and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable. | |||
Impairment of Long-Lived Assets | ' | ||
Impairment of Long-Lived Assets | |||
Long-lived assets consist primarily of property and equipment facility development costs and finite-lived intangible assets. The recoverability of long-lived assets is evaluated periodically through analysis of operating results and consideration of other significant events or changes in the business environment. If an operating unit had indications of possible impairment, such as current operating losses, we would evaluate whether impairment exists on the basis of undiscounted expected future cash flows from operations over the remaining amortization period. If an impairment loss were to exist, the carrying amount of the related long-lived assets would be reduced to their estimated fair value based upon discounted cash flows from operations. | |||
Deferred Financing Costs | ' | ||
Deferred Financing Costs | |||
Deferred financing costs are amortized over the life of our Credit Agreement. Amortization of deferred financing costs is included as a component of interest expense in the consolidated statements of operations. We had deferred financing costs of $270,000 and $203,000, net of amortization in Prepaid expenses and other current assets and Other assets on the consolidated balance sheets as of December 31, 2013 and 2012, respectively. | |||
Foreign Currency | ' | ||
Foreign Currency | |||
We have operations in Canada. The functional currency of our Canadian operations is the Canadian dollar ("CAD"). Assets and liabilities are translated to U.S. dollars ("USD") at the exchange rate in effect at the balance sheet date and revenue and expenses at the average exchange rate for the period. Gains and losses from the translation of the consolidated financial statements of our Canadian subsidiary into USD are included in stockholders' equity as a component of Accumulated other comprehensive income. Gains and losses resulting from foreign currency transactions are recognized in the consolidated statements of operations. Recorded balances that are denominated in a currency other than the functional currency are re-measured to the functional currency using the exchange rate at the balance sheet date and gains or losses are recorded in the statements of operations. | |||
Income Taxes | ' | ||
Income Taxes | |||
Income taxes are accounted for using an asset and liability approach. This requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities at the applicable tax rates. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. | |||
We recognize net deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. | |||
The application of income tax law is inherently complex. Tax laws and regulations are voluminous and at times ambiguous and interpretations of guidance regarding such tax laws and regulations change over time. This requires us to make many subjective assumptions and judgments regarding the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. A liability for uncertain tax positions is recorded in our financial statements on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax position taken will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. As facts and circumstances change, we reassess these probabilities and record any changes in the financial statements as appropriate. Our tax returns are subject to audit by the Internal Revenue Service ("IRS"), various states in the U.S., and by the Canadian Revenue Agency. | |||
Insurance | ' | ||
Insurance | |||
Accrued costs for our self-insured health care coverage were $493,000 and $483,000 at December 31, 2013 and 2012, respectively. | |||
Earnings Per Share | ' | ||
Earnings Per Share | |||
Basic earnings per share is calculated based on the weighted-average number of outstanding common shares during the applicable period. Diluted earnings per share is based on the weighted-average number of outstanding common shares plus the weighted-average number of potential outstanding common shares. Potential common shares that would increase earnings per share or decrease loss per share are anti-dilutive and are excluded from earnings per share computations. Earnings per share is computed separately for each period presented. | |||
Treasury Stock | ' | ||
Treasury Stock | |||
Shares of common stock repurchased by us are recorded at cost as treasury stock and result in a reduction of stockholders' equity in our consolidated balance sheets. Treasury shares are reissued using the weighted average cost method for determining the cost of the shares reissued. The difference between the cost of the shares reissued and the issuance price is added or deducted from additional paid-in capital. | |||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
Schedule of estimated useful lives for significant property and equipment | ' | ||
Useful Lives | |||
Vehicles and other equipment | 3 to 10 years | ||
Disposal facility and equipment | 3 to 20 years | ||
Buildings and improvements | 5 to 40 years | ||
Railcars | 40 years |
DISCLOSURE_OF_SUPPLEMENTAL_CAS1
DISCLOSURE OF SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
DISCLOSURE OF SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||||
Schedule of disclosure of supplemental cash flow information | ' | ||||||||||
For the Year Ended December 31, | |||||||||||
$s in thousands | 2013 | 2012 | 2011 | ||||||||
Income taxes and interest paid: | |||||||||||
Income taxes paid, net of receipts | $ | 16,226 | $ | 17,676 | $ | 13,360 | |||||
Interest paid | 703 | 791 | 1,277 | ||||||||
Non-cash investing and financing activities: | |||||||||||
Closure/Post-closure retirement asset | 886 | 921 | 93 | ||||||||
Capital expenditures in accounts payable | 1,561 | 762 | 776 | ||||||||
Restricted stock issuances from treasury shares | 864 | 372 | 424 | ||||||||
U.S. Ecology Michigan, Inc. | ' | ||||||||||
DISCLOSURE OF SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||||
Schedule of allocation of the purchase price to the fair value of assets acquired and liabilities assumed | ' | ||||||||||
$s in thousands | Purchase | ||||||||||
Price | |||||||||||
Allocation | |||||||||||
Assets acquired | $ | 10,706 | |||||||||
Liabilities assumed | (1,268 | ) | |||||||||
| | | | | |||||||
Total identifiable net assets | 9,438 | ||||||||||
Goodwill | 1,327 | ||||||||||
| | | | | |||||||
Total purchase price | $ | 10,765 | |||||||||
| | | | | |||||||
| | | | | |||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
Schedule of assets measured at fair value on a recurring basis | ' | |||||||||||||
2013 | ||||||||||||||
$s in thousands | Quoted Prices | Other | Unobservable | Total | ||||||||||
in Active | Observable | Inputs | ||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets: | ||||||||||||||
Fixed-income securities(1) | $ | 399 | $ | 3,607 | $ | — | $ | 4,006 | ||||||
Money market funds(2) | $ | 91 | $ | — | $ | — | $ | 91 | ||||||
| | | | | | | | | | | | | | |
Total | $ | 490 | $ | 3,607 | $ | — | $ | 4,097 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
2012 | ||||||||||||||
$s in thousands | Quoted Prices | Other | Unobservable | Total | ||||||||||
in Active | Observable | Inputs | ||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets: | ||||||||||||||
Money market funds(2) | $ | 4,111 | $ | — | $ | — | $ | 4,111 | ||||||
| | | | | | | | | | | | | | |
Total | $ | 4,111 | $ | — | $ | — | $ | 4,111 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
We invest a portion of our Restricted cash and investments in fixed-income securities, including U.S. Treasury and U.S. agency securities. We measure the fair value of U.S. Treasury securities using quoted prices for identical assets in active markets. We measure the fair value of U.S. agency securities using observable market activity for similar assets. The fair value of our fixed-income securities approximates our cost basis in the investments. | ||||||||||||||
-2 | ||||||||||||||
We invest a portion of our Restricted cash and investments in money market funds. We measure the fair value of these money market fund investments using quoted prices for identical assets in active markets. | ||||||||||||||
RECEIVABLES_Tables
RECEIVABLES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
RECEIVABLES | ' | ||||||||||||||||
Schedule of receivables | ' | ||||||||||||||||
$s in thousands | 2013 | 2012 | |||||||||||||||
Trade | $ | 42,055 | $ | 32,787 | |||||||||||||
Unbilled revenue | 1,296 | 1,529 | |||||||||||||||
Other | 810 | 99 | |||||||||||||||
| | | | | | | | ||||||||||
Total receivables | 44,161 | 34,415 | |||||||||||||||
Allowance for doubtful accounts | (525 | ) | (468 | ) | |||||||||||||
| | | | | | | | ||||||||||
Receivables, net | $ | 43,636 | $ | 33,947 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Schedule of change in the allowance for doubtful accounts receivable | ' | ||||||||||||||||
$s in thousands | Balance at | Charged | Recoveries | Adjustments | Balance at | ||||||||||||
Beginning of | (Credited) to | (Deductions/ | End of Period | ||||||||||||||
Period | Costs and | Write-offs) | |||||||||||||||
Expenses | |||||||||||||||||
Year ended December 31, 2013 | $ | 468 | $ | 138 | $ | (70 | ) | $ | (11 | ) | $ | 525 | |||||
Year ended December 31, 2012 | $ | 311 | $ | 137 | $ | 17 | $ | 3 | $ | 468 | |||||||
Year ended December 31, 2011 | $ | 338 | $ | 153 | $ | (179 | ) | $ | (1 | ) | $ | 311 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
Schedule of property and equipment | ' | |||||||
$s in thousands | 2013 | 2012 | ||||||
Cell development costs | $ | 77,348 | $ | 64,994 | ||||
Land and improvements | 18,073 | 14,920 | ||||||
Buildings and improvements | 59,101 | 55,177 | ||||||
Railcars | 17,375 | 17,375 | ||||||
Vehicles and other equipment | 42,859 | 39,689 | ||||||
Construction in progress | 6,784 | 12,454 | ||||||
| | | | | | | | |
Total property and equipment | 221,540 | 204,609 | ||||||
Accumulated depreciation and amortization | (106,681 | ) | (94,817 | ) | ||||
| | | | | | | | |
Property and equipment, net | $ | 114,859 | $ | 109,792 | ||||
| | | | | | | | |
| | | | | | | | |
BUSINESS_ACQUISITION_Tables
BUSINESS ACQUISITION (Tables) (USEM) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
USEM | ' | |||||||
BUSINESS ACQUISITIONS | ' | |||||||
Summary of consideration paid and the preliminary fair value of assets acquired and liabilities assumed at the acquisition date | ' | |||||||
$s in thousands | 2012 | |||||||
Current assets | $ | 2,214 | ||||||
Property and equipment | 6,552 | |||||||
Identifiable intangible assets | 1,940 | |||||||
Current liabilities | (1,268 | ) | ||||||
| | | | | ||||
Total identifiable net assets | 9,438 | |||||||
Goodwill | 1,327 | |||||||
| | | | | ||||
Total purchase price | $ | 10,765 | ||||||
| | | | | ||||
| | | | | ||||
Schedule of unaudited pro forma financial information | ' | |||||||
$s in thousands, except per share amounts | 2012 | 2011 | ||||||
(unaudited) | ||||||||
Pro forma combined: | ||||||||
Revenue | $ | 174,639 | $ | 169,884 | ||||
Net income | $ | 25,513 | $ | 19,339 | ||||
Earnings per share | ||||||||
Basic | $ | 1.4 | $ | 1.06 | ||||
Diluted | $ | 1.4 | $ | 1.06 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||
Schedule of changes in goodwill | ' | |||||||||||||||||||
$s in thousands | 2013 | 2012 | ||||||||||||||||||
Balance, beginning of year | $ | 23,105 | $ | 21,200 | ||||||||||||||||
USEM acquisition | — | 1,327 | ||||||||||||||||||
Foreign currency translation | (1,412 | ) | 578 | |||||||||||||||||
| | | | | | | | |||||||||||||
Balance, end of year | $ | 21,693 | $ | 23,105 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of intangible assets | ' | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
$s in thousands | Cost | Accumulated | Net | Cost | Accumulated | Net | ||||||||||||||
Amortization | Amortization | |||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||
Developed software | $ | 329 | $ | (185 | ) | $ | 144 | $ | 352 | $ | (135 | ) | $ | 217 | ||||||
Database | 94 | (43 | ) | 51 | 100 | (31 | ) | 69 | ||||||||||||
Customer relationships | 5,005 | (731 | ) | 4,274 | 5,269 | (490 | ) | 4,779 | ||||||||||||
Technology—Formulae and processes | 8,551 | (826 | ) | 7,725 | 9,144 | (600 | ) | 8,544 | ||||||||||||
Permits, licenses and lease | 26,264 | (2,536 | ) | 23,728 | 28,085 | (1,844 | ) | 26,241 | ||||||||||||
Non-compete agreements | 20 | (20 | ) | — | 20 | (20 | ) | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total amortizing intangible assets | 40,263 | (4,341 | ) | 35,922 | 42,970 | (3,120 | ) | 39,850 | ||||||||||||
Nonamortizing intangible assets: | ||||||||||||||||||||
Permits and licenses | 750 | — | 750 | 750 | — | 750 | ||||||||||||||
Tradename | 160 | — | 160 | 171 | — | 171 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total intangible assets | $ | 41,173 | $ | (4,341 | ) | $ | 36,832 | $ | 43,891 | $ | (3,120 | ) | $ | 40,771 | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
CLOSURE_AND_POSTCLOSURE_OBLIGA1
CLOSURE AND POST-CLOSURE OBLIGATIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
CLOSURE AND POST-CLOSURE OBLIGATIONS | ' | |||||||
Schedule of changes in closure and post-closure obligations | ' | |||||||
$s in thousands | 2013 | 2012 | ||||||
Closure and post-closure obligations, beginning of year | $ | 17,362 | $ | 17,338 | ||||
Accretion expense | 1,241 | 1,367 | ||||||
Payments | (1,715 | ) | (2,398 | ) | ||||
Adjustments | 760 | 1,036 | ||||||
Foreign currency translation | (180 | ) | 19 | |||||
| | | | | | | | |
Closure and post-closure obligations, end of year | 17,468 | 17,362 | ||||||
Less current portion | (949 | ) | (1,913 | ) | ||||
| | | | | | | | |
Long-term portion | $ | 16,519 | $ | 15,449 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of reported closure and post-closure asset recorded as a component of Property and equipment, net | ' | |||||||
$s in thousands | 2013 | 2012 | ||||||
Net closure and post-closure asset, beginning of year | $ | 1,629 | $ | 1,280 | ||||
Additions or adjustments to closure and post-closure asset | 886 | 921 | ||||||
Amortization of closure and post-closure asset | (552 | ) | (584 | ) | ||||
Foreign currency translation | (131 | ) | 12 | |||||
| | | | | | | | |
Net closure and post-closure asset, end of year | $ | 1,832 | $ | 1,629 | ||||
| | | | | | | | |
| | | | | | | | |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of components of the income tax expense | ' | ||||||||||
$s in thousands | 2013 | 2012 | 2011 | ||||||||
Current: | |||||||||||
U.S. Federal | $ | 14,769 | $ | 13,989 | $ | 10,662 | |||||
State | 2,241 | 1,905 | 1,237 | ||||||||
Foreign | 3,623 | 873 | 632 | ||||||||
| | | | | | | | | | | |
Total current | 20,633 | 16,767 | 12,531 | ||||||||
Deferred: | |||||||||||
U.S. Federal | (2,068 | ) | (270 | ) | (396 | ) | |||||
State | (218 | ) | 79 | (85 | ) | ||||||
Foreign | (351 | ) | (517 | ) | (613 | ) | |||||
| | | | | | | | | | | |
Total deferred | (2,637 | ) | (708 | ) | (1,094 | ) | |||||
| | | | | | | | | | | |
Income tax expense | $ | 17,996 | $ | 16,059 | $ | 11,437 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation between the effective income tax rate and the applicable statutory federal and state income tax rate | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Taxes computed at statutory rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes (net of federal income tax benefit) | 2.7 | 3.3 | 2.5 | ||||||||
Foreign rate differential | (2.0 | ) | (0.3 | ) | — | ||||||
Other | 0.2 | 0.5 | 0.9 | ||||||||
| | | | | | | | | | | |
35.9 | % | 38.5 | % | 38.4 | % | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of the total net deferred tax assets and liabilities | ' | ||||||||||
$s in thousands | 2013 | 2012 | |||||||||
Deferred tax assets: | |||||||||||
Net operating loss carry forward | $ | 6,270 | $ | 5,555 | |||||||
Accruals, allowances and other | 1,708 | 2,065 | |||||||||
Environmental compliance and other site related costs | 554 | — | |||||||||
Other | 460 | — | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 8,992 | 7,620 | |||||||||
Less: valuation allowance | (6,253 | ) | (5,537 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | 2,739 | 2,083 | |||||||||
Deferred tax liabilities: | |||||||||||
Property and equipment | (6,752 | ) | (6,646 | ) | |||||||
Intangible assets | (9,425 | ) | (10,463 | ) | |||||||
Environmental compliance and other site related costs | — | (1,228 | ) | ||||||||
Other | — | (629 | ) | ||||||||
| | | | | | | | ||||
Total deferred tax liabilities | (16,177 | ) | (18,966 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | $ | (13,438 | ) | $ | (16,883 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of domestic and foreign components of Income (loss) before income taxes | ' | ||||||||||
$s in thousands | 2013 | 2012 | 2011 | ||||||||
Domestic | 37,958 | 40,425 | 29,775 | ||||||||
Foreign | 12,189 | 1,293 | 32 | ||||||||
| | | | | | | | | | | |
Income before income taxes | $ | 50,147 | $ | 41,718 | $ | 29,807 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of changes to unrecognized tax benefits (excluding related penalties and interest) | ' | ||||||||||
$s in thousands | 2013 | 2012 | 2011 | ||||||||
Unrecognized tax benefits, beginning of year | $ | 438 | $ | 438 | $ | — | |||||
Gross increases in tax positions in prior periods | — | — | 438 | ||||||||
Gross increases during the current period | — | — | — | ||||||||
Settlements | — | — | — | ||||||||
Lapse of statute of limitations | — | — | — | ||||||||
| | | | | | | | | | | |
Unrecognized tax benefits, end of year | $ | 438 | $ | 438 | $ | 438 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES. | ' | ||||
Schedule of future minimum lease payments on non-cancelable operating leases | ' | ||||
$s in thousands | Payments | ||||
2014 | $ | 495 | |||
2015 | 435 | ||||
2016 | 343 | ||||
2017 | 339 | ||||
2018 | 333 | ||||
Thereafter | 54 | ||||
| | | | | |
$ | 1,999 | ||||
| | | | | |
| | | | | |
EQUITY_Tables
EQUITY (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
EQUITY | ' | |||||||||||||
Summary of stock option plan activity | ' | |||||||||||||
$s in thousands, except per share amounts | Shares | Weighted | Aggregate | Weighted | ||||||||||
Average | Intrinsic | Average | ||||||||||||
Exercise | Value | Remaining | ||||||||||||
Price | Contractual | |||||||||||||
Term (Years) | ||||||||||||||
Outstanding as of December 31, 2012 | 434,512 | $ | 18.93 | |||||||||||
Granted | 216,600 | 25.56 | ||||||||||||
Exercised | (256,336 | ) | 18.99 | |||||||||||
Cancelled, expired or forfeited | (1,000 | ) | 25.25 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding as of December 31, 2013 | 393,776 | $ | 22.52 | $ | 5,742 | 7.7 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable as of December 31, 2013 | 145,138 | $ | 18.76 | $ | 2,661 | 5.4 | ||||||||
Schedule of significant weighted-average assumptions relating to the valuation of each option grant | ' | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected life | 3.3 years | 3.3 years | 3.3 years | |||||||||||
Expected volatility | 36% | 39% | 46% | |||||||||||
Risk-free interest rate | 0.40% | 0.40% | 1.20% | |||||||||||
Expected dividend yield | 3.40% | 4.10% | 4.50% | |||||||||||
Summary of restricted stock plan activity | ' | |||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Outstanding as of December 31, 2012 | 11,200 | $ | 17.73 | |||||||||||
Granted | 51,800 | 25.89 | ||||||||||||
Vested | (11,200 | ) | 17.73 | |||||||||||
Cancelled, expired or forfeited | (200 | ) | 25.25 | |||||||||||
| | | | | | | | |||||||
Outstanding as of December 31, 2013 | 51,600 | $ | 25.89 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Schedule of components of pre-tax share-based compensation expense (included in Selling, general and administrative expenses in the Consolidated Statements of Earnings) and related tax benefits | ' | |||||||||||||
$s in thousands | 2013 | 2012 | 2011 | |||||||||||
Share-based compensation from: | ||||||||||||||
Stock options | $ | 346 | $ | 397 | $ | 449 | ||||||||
Restrict stock | 519 | 449 | 388 | |||||||||||
| | | | | | | | | | | ||||
Total share-based compensation | 865 | 846 | 837 | |||||||||||
Income tax benefit | (310 | ) | (326 | ) | (321 | ) | ||||||||
| | | | | | | | | | | ||||
Share-based compensation, net of tax | $ | 555 | $ | 520 | $ | 516 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||||||||
Schedule of earnings per share | ' | |||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
$s and shares in thousands, except per share | Basic | Diluted | Basic | Diluted | Basic | Diluted | ||||||||||||||
amounts | ||||||||||||||||||||
Net income | $ | 32,151 | $ | 32,151 | $ | 25,659 | $ | 25,659 | $ | 18,370 | $ | 18,370 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Weighted average basic shares outstanding | 18,592 | 18,592 | 18,238 | 18,238 | 18,198 | 18,198 | ||||||||||||||
Dilutive effect of stock options and restricted stock | 84 | 43 | 25 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Weighted average diluted shares outstanding | 18,676 | 18,281 | 18,223 | |||||||||||||||||
Earnings per share | $ | 1.73 | $ | 1.72 | $ | 1.41 | $ | 1.4 | $ | 1.01 | $ | 1.01 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Anti-dilutive shares excluded from calculation | 156 | 266 | 320 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
OPERATING_SEGMENTS_Tables
OPERATING SEGMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
OPERATING SEGMENTS | ' | |||||||||||||
Summary of financial information concerning reportable segments | ' | |||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
$s in thousands | Operating | Non- | Corporate | Total | ||||||||||
Disposal | Operating | |||||||||||||
Facilities | Disposal | |||||||||||||
Facilities | ||||||||||||||
Revenue—Treatment and disposal | $ | 165,089 | $ | 20 | $ | — | $ | 165,109 | ||||||
Revenue—Transportation services | 36,017 | — | — | 36,017 | ||||||||||
| | | | | | | | | | | | | | |
Total revenue | 201,106 | 20 | — | 201,126 | ||||||||||
Direct operating costs | 86,111 | 127 | — | 86,238 | ||||||||||
Transportation costs | 35,902 | — | — | 35,902 | ||||||||||
| | | | | | | | | | | | | | |
Gross profit (loss) | 79,093 | (107 | ) | — | 78,986 | |||||||||
Selling, general & administrative expenses | 11,826 | — | 14,229 | 26,055 | ||||||||||
| | | | | | | | | | | | | | |
Operating income (loss) | 67,267 | (107 | ) | (14,229 | ) | 52,931 | ||||||||
Interest income (expense), net | 13 | — | (822 | ) | (809 | ) | ||||||||
Foreign currency gain (loss) | 542 | — | (2,869 | ) | (2,327 | ) | ||||||||
Other income | 342 | 10 | — | 352 | ||||||||||
| | | | | | | | | | | | | | |
Income (loss) before income taxes | 68,164 | (97 | ) | (17,920 | ) | 50,147 | ||||||||
Income tax expense | — | — | 17,996 | 17,996 | ||||||||||
| | | | | | | | | | | | | | |
Net income (loss) | $ | 68,164 | $ | (97 | ) | $ | (35,916 | ) | $ | 32,151 | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Depreciation, amortization & accretion | $ | 17,270 | $ | 208 | $ | 39 | $ | 17,517 | ||||||
Capital expenditures | $ | 20,989 | $ | — | $ | 384 | $ | 21,373 | ||||||
Total assets | $ | 222,049 | $ | 79 | $ | 78,428 | $ | 300,556 | ||||||
Year Ended December 31, 2012 | ||||||||||||||
$s in thousands | Operating | Non- | Corporate | Total | ||||||||||
Disposal | Operating | |||||||||||||
Facilities | Disposal | |||||||||||||
Facilities | ||||||||||||||
Revenue—Treatment and disposal | $ | 145,687 | $ | 20 | $ | — | $ | 145,707 | ||||||
Revenue—Transportation services | 23,431 | — | — | 23,431 | ||||||||||
| | | | | | | | | | | | | | |
Total revenue | 169,118 | 20 | — | 169,138 | ||||||||||
Direct operating costs | 78,883 | 294 | — | 79,177 | ||||||||||
Transportation costs | 23,663 | 1 | — | 23,664 | ||||||||||
| | | | | | | | | | | | | | |
Gross profit (loss) | 66,572 | (275 | ) | — | 66,297 | |||||||||
Selling, general & administrative expenses | 11,567 | — | 14,092 | 25,659 | ||||||||||
| | | | | | | | | | | | | | |
Operating income (loss) | 55,005 | (275 | ) | (14,092 | ) | 40,638 | ||||||||
Interest income (expense), net | 17 | — | (878 | ) | (861 | ) | ||||||||
Foreign currency gain (loss) | (169 | ) | — | 1,382 | 1,213 | |||||||||
Other income | 723 | 5 | — | 728 | ||||||||||
| | | | | | | | | | | | | | |
Income (loss) before income taxes | 55,576 | (270 | ) | (13,588 | ) | 41,718 | ||||||||
Income tax expense | — | — | 16,059 | 16,059 | ||||||||||
| | | | | | | | | | | | | | |
Net income (loss) | $ | 55,576 | $ | (270 | ) | $ | (29,647 | ) | $ | 25,659 | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Depreciation, amortization & accretion | $ | 16,494 | $ | 216 | $ | 42 | $ | 16,752 | ||||||
Capital expenditures | $ | 15,707 | $ | 17 | $ | 42 | $ | 15,766 | ||||||
Total assets | $ | 210,984 | $ | 93 | $ | 7,617 | $ | 218,694 | ||||||
Year Ended December 31, 2011 | ||||||||||||||
$s in thousands | Operating | Non- | Corporate | Total | ||||||||||
Disposal | Operating | |||||||||||||
Facilities | Disposal | |||||||||||||
Facilities | ||||||||||||||
Revenue—Treatment and disposal | $ | 129,049 | $ | 22 | $ | — | $ | 129,071 | ||||||
Revenue—Transportation services | 25,846 | — | — | 25,846 | ||||||||||
| | | | | | | | | | | | | | |
Total revenue | 154,895 | 22 | — | 154,917 | ||||||||||
Direct operating costs | 73,455 | 303 | — | 73,758 | ||||||||||
Transportation costs | 27,292 | — | — | 27,292 | ||||||||||
| | | | | | | | | | | | | | |
Gross profit (loss) | 54,148 | (281 | ) | — | 53,867 | |||||||||
Selling, general & administrative expenses | 10,165 | — | 11,337 | 21,502 | ||||||||||
| | | | | | | | | | | | | | |
Operating income (loss) | 43,983 | (281 | ) | (11,337 | ) | 32,365 | ||||||||
Interest income (expense), net | 23 | — | (1,601 | ) | (1,578 | ) | ||||||||
Foreign currency gain (loss) | 26 | — | (1,347 | ) | (1,321 | ) | ||||||||
Other income | 340 | 1 | — | 341 | ||||||||||
| | | | | | | | | | | | | | |
Income (loss) before income taxes | 44,372 | (280 | ) | (14,285 | ) | 29,807 | ||||||||
Income tax expense | — | — | 11,437 | 11,437 | ||||||||||
| | | | | | | | | | | | | | |
Net income (loss) | $ | 44,372 | $ | (280 | ) | $ | (25,722 | ) | $ | 18,370 | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Depreciation, amortization & accretion | $ | 16,375 | $ | 218 | $ | 51 | $ | 16,644 | ||||||
Capital expenditures | $ | 9,974 | $ | 16 | $ | 106 | $ | 10,096 | ||||||
Total assets | $ | 195,552 | $ | 88 | $ | 6,948 | $ | 202,588 | ||||||
Summary of revenues by geographic location | ' | |||||||||||||
$s in thousands | 2013 | 2012 | 2011 | |||||||||||
United States | $ | 147,128 | $ | 130,889 | $ | 118,402 | ||||||||
Canada | 53,998 | 38,249 | 36,515 | |||||||||||
| | | | | | | | | | | ||||
$ | 201,126 | $ | 169,138 | $ | 154,917 | |||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of long-lived assets by geographic location | ' | |||||||||||||
$s in thousands | 2013 | 2012 | ||||||||||||
United States | $ | 86,175 | $ | 81,605 | ||||||||||
Canada | 65,516 | 68,958 | ||||||||||||
| | | | | | | | |||||||
$ | 151,691 | $ | 150,563 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
QUARTERLY_FINANCIAL_DATA_unaud1
QUARTERLY FINANCIAL DATA (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
QUARTERLY FINANCIAL DATA (unaudited) | ' | ||||||||||||||||
Schedule of unaudited consolidated quarterly results of operations | ' | ||||||||||||||||
Three-Months Ended | |||||||||||||||||
$s and shares in thousands, except per share amounts | Mar. 31, | June 30, | Sept. 30, | Dec. 31, | Year | ||||||||||||
2013 | |||||||||||||||||
Revenue | $ | 42,899 | $ | 45,777 | $ | 53,090 | $ | 59,360 | $ | 201,126 | |||||||
Gross profit | 15,382 | 18,928 | 21,620 | 23,056 | 78,986 | ||||||||||||
Operating income | 9,656 | 12,409 | 15,512 | 15,354 | 52,931 | ||||||||||||
Net income | 5,406 | 7,210 | 10,328 | 9,207 | 32,151 | ||||||||||||
Earnings per share—diluted(1) | $ | 0.29 | $ | 0.39 | $ | 0.56 | $ | 0.48 | $ | 1.72 | |||||||
Weighted average common shares outstanding used in the diluted earnings per share calculation | 18,407 | 18,483 | 18,533 | 19,281 | 18,676 | ||||||||||||
Dividends paid per share | $ | — | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.54 | |||||||
2012 | |||||||||||||||||
Revenue | $ | 33,013 | $ | 39,980 | $ | 45,739 | $ | 50,406 | $ | 169,138 | |||||||
Gross profit | 12,076 | 17,326 | 18,589 | 18,306 | 66,297 | ||||||||||||
Operating income | 6,471 | 10,960 | 12,393 | 10,814 | 40,638 | ||||||||||||
Net income | 4,523 | 6,362 | 8,662 | 6,112 | 25,659 | ||||||||||||
Earnings per share—diluted(1) | $ | 0.25 | $ | 0.35 | $ | 0.47 | $ | 0.33 | $ | 1.4 | |||||||
Weighted average common shares outstanding used in the diluted earnings per share calculation | 18,254 | 18,264 | 18,270 | 18,332 | 18,281 | ||||||||||||
Dividends paid per share | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.36 | $ | 0.9 | |||||||
-1 | |||||||||||||||||
Diluted earnings per common share for each quarter presented above are based on the respective weighted average number of common shares for the respective quarter. The dilutive potential common shares outstanding for each period and the sum of the quarters may not necessarily be equal to the full year diluted earnings per common share amount. | |||||||||||||||||
DESCRIPTION_OF_BUSINESS_Detail
DESCRIPTION OF BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2013 | |
segment | |
DESCRIPTION OF BUSINESS | ' |
Number of operating segments | 2 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Restricted Cash and Investments | ' | ' | ' |
Restricted Cash and Investments | $4,097,000 | $4,111,000 | ' |
Revenue Recognition | ' | ' | ' |
Number of primary sources for revenue recognition | 2 | ' | ' |
Property and Equipment | ' | ' | ' |
Repair and maintenance expenses | 5,500,000 | 4,600,000 | 3,700,000 |
Salvage value for the depreciable fixed assets | $0 | ' | ' |
Vehicles and other equipment | Minimum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Useful Lives | '3 years | ' | ' |
Vehicles and other equipment | Maximum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Useful Lives | '10 years | ' | ' |
Disposal facility and equipment | Minimum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Useful Lives | '3 years | ' | ' |
Disposal facility and equipment | Maximum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Useful Lives | '20 years | ' | ' |
Buildings and improvements | Minimum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Useful Lives | '5 years | ' | ' |
Buildings and improvements | Maximum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Useful Lives | '40 years | ' | ' |
Railcars | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Useful Lives | '40 years | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Disposal Cell Accounting | ' | ' |
Period of acceptable financial assurance for closure and post-closure monitoring of each facility as per RCRA requirements | '30 years | ' |
Deferred Financing Costs | ' | ' |
Deferred financing costs, net of amortization | $270,000 | $203,000 |
Insurance | ' | ' |
Accrued costs for self-insured health care coverage | $493,000 | $483,000 |
Minimum | ' | ' |
Intangible Assets | ' | ' |
Estimated economic lives | '1 year | ' |
Maximum | ' | ' |
Intangible Assets | ' | ' |
Estimated economic lives | '33 years | ' |
DISCLOSURE_OF_SUPPLEMENTAL_CAS2
DISCLOSURE OF SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-12 |
U.S. Ecology Michigan, Inc. | ||||
Income taxes and interest paid: | ' | ' | ' | ' |
Income taxes paid, net of receipts | $16,226 | $17,676 | $13,360 | ' |
Interest paid | 703 | 791 | 1,277 | ' |
Non-cash investing and financing activities: | ' | ' | ' | ' |
Closure/Post-closure retirement asset | 886 | 921 | 93 | ' |
Capital expenditures in accounts payable | 1,561 | 762 | 776 | ' |
Restricted stock issued from treasury shares | 864 | 372 | 424 | ' |
Allocation of the purchase price to the fair value of assets acquired and liabilities assumed | ' | ' | ' | ' |
Assets acquired | ' | ' | ' | 10,706 |
Liabilities assumed | ' | ' | ' | -1,268 |
Total identifiable net assets | ' | ' | ' | 9,438 |
Goodwill | 21,693 | 23,105 | 21,200 | 1,327 |
Total purchase price | ' | ' | ' | $10,765 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (Recurring, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | $4,097 | $4,111 |
Fixed-income securities | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 4,006 | ' |
Money market funds | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 91 | 4,111 |
Quoted Prices in Active Markets (Level 1) | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 490 | 4,111 |
Quoted Prices in Active Markets (Level 1) | Fixed-income securities | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 399 | ' |
Quoted Prices in Active Markets (Level 1) | Money market funds | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 91 | 4,111 |
Other Observable Inputs (Level 2) | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 3,607 | ' |
Other Observable Inputs (Level 2) | Fixed-income securities | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | $3,607 | ' |
CONCENTRATIONS_AND_CREDIT_RISK1
CONCENTRATIONS AND CREDIT RISK (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Total trade receivables | Major Customers | One customer | ' |
CONCENTRATIONS AND CREDIT RISK | ' |
Concentration of risk (as a percent) | 16.00% |
Labor Concentrations | Unionized employees | Paper, Allied-Industrial Chemical & Energy Workers International Union | ' |
CONCENTRATIONS AND CREDIT RISK | ' |
Number of employees | 11 |
Labor Concentrations | Unionized employees | Communications, Energy and Paperworkers Union of Canada | ' |
CONCENTRATIONS AND CREDIT RISK | ' |
Number of employees | 107 |
Labor Concentrations | Non-unionized employees | ' |
CONCENTRATIONS AND CREDIT RISK | ' |
Number of employees | 340 |
RECEIVABLES_Details
RECEIVABLES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
RECEIVABLES | ' | ' | ' |
Trade | $42,055 | $32,787 | ' |
Unbilled revenue | 1,296 | 1,529 | ' |
Other | 810 | 99 | ' |
Total receivables | 44,161 | 34,415 | ' |
Allowance for doubtful accounts | -525 | -468 | -311 |
Receivables, net | 43,636 | 33,947 | ' |
Change in the allowance for doubtful accounts receivable | ' | ' | ' |
Balance at Beginning of Period | 468 | 311 | 338 |
Charged (Credited) to Costs and Expenses | 138 | 137 | 153 |
Recoveries (Deductions/ Write-offs) | -70 | 17 | -179 |
Adjustments | -11 | 3 | -1 |
Balance at End of Period | $525 | $468 | $311 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Total property and equipment | $221,540 | $204,609 | ' |
Accumulated depreciation and amortization | -106,681 | -94,817 | ' |
Property and equipment, net | 114,859 | 109,792 | ' |
Depreciation and amortization expense | 14,815 | 13,916 | 13,933 |
Cell development costs | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Total property and equipment | 77,348 | 64,994 | ' |
Land and improvements | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Total property and equipment | 18,073 | 14,920 | ' |
Buildings and improvements | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Total property and equipment | 59,101 | 55,177 | ' |
Railcars | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Total property and equipment | 17,375 | 17,375 | ' |
Vehicles and other equipment | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Total property and equipment | 42,859 | 39,689 | ' |
Construction in progress | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Total property and equipment | $6,784 | $12,454 | ' |
BUSINESS_ACQUISITION_Details
BUSINESS ACQUISITION (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
USEM | USEM | USEM | USEM | ||||||||||||
employee | |||||||||||||||
BUSINESS ACQUISITIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding shares acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Consideration paid and the fair value of assets acquired and liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,214,000 | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,552,000 | ' | ' | ' |
Identifiable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,940,000 | ' | ' | ' |
Current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,268,000 | ' | ' | ' |
Total identifiable net assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,438,000 | ' | ' | ' |
Goodwill | 21,693,000 | ' | ' | ' | 23,105,000 | ' | ' | ' | 21,693,000 | 23,105,000 | 21,200,000 | 1,327,000 | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,765,000 | ' | ' | ' |
Additional information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' | ' |
Number of years for which the acquired entity existed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '40 years | ' | ' |
Revenue | 59,360,000 | 53,090,000 | 45,777,000 | 42,899,000 | 50,406,000 | 45,739,000 | 39,980,000 | 33,013,000 | 201,126,000 | 169,138,000 | 154,917,000 | ' | 12,300,000 | 6,700,000 | ' |
Operating income (loss) | 15,354,000 | 15,512,000 | 12,409,000 | 9,656,000 | 10,814,000 | 12,393,000 | 10,960,000 | 6,471,000 | 52,931,000 | 40,638,000 | 32,365,000 | ' | -72,000 | -161,000 | ' |
Acquisition-related costs included in selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 348,000 | ' |
Amortization period of goodwill recognized and expected to be deductible for income tax purposes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' | ' |
Pro forma combined: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 174,639,000 | 169,884,000 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,513,000 | $19,339,000 |
Earnings per share - Basic (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.40 | $1.06 |
Earnings per share - Diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.40 | $1.06 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 30, 2010 | |
GOODWILL AND INTANGIBLE ASSETS | ' | ' | ' | ' |
Goodwill and intangible assets | ' | ' | ' | $0 |
Changes in goodwill | ' | ' | ' | ' |
Balance at the beginning of the period | 23,105,000 | 21,200,000 | ' | ' |
USEM acquisition | ' | 1,327,000 | ' | ' |
Foreign currency translation | -1,412,000 | 578,000 | ' | ' |
Balance at the end of the period | 21,693,000 | 23,105,000 | 21,200,000 | ' |
Intangible assets | ' | ' | ' | ' |
Amortizing intangible assets, Cost | 40,263,000 | 42,970,000 | ' | ' |
Total intangible assets, Cost | 41,173,000 | 43,891,000 | ' | ' |
Accumulated amortization | -4,341,000 | -3,120,000 | ' | ' |
Amortizing intangible assets, Net | 35,922,000 | 39,850,000 | ' | ' |
Total intangible assets, net | 36,832,000 | 40,771,000 | ' | ' |
Amortization expense | 1,461,000 | 1,469,000 | 1,419,000 | ' |
Expected future amortization expense of amortizing intangible assets | ' | ' | ' | ' |
Year one | 1,500,000 | ' | ' | ' |
Year two | 1,500,000 | ' | ' | ' |
Year three | 1,500,000 | ' | ' | ' |
Year four | 1,500,000 | ' | ' | ' |
Year five | 1,500,000 | ' | ' | ' |
Permits and licenses | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' |
Nonamortizing intangible assets | 750,000 | 750,000 | ' | ' |
Tradename | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' |
Nonamortizing intangible assets | 160,000 | 171,000 | ' | ' |
Developed software | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' |
Amortizing intangible assets, Cost | 329,000 | 352,000 | ' | ' |
Accumulated amortization | -185,000 | -135,000 | ' | ' |
Amortizing intangible assets, Net | 144,000 | 217,000 | ' | ' |
Database | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' |
Amortizing intangible assets, Cost | 94,000 | 100,000 | ' | ' |
Accumulated amortization | -43,000 | -31,000 | ' | ' |
Amortizing intangible assets, Net | 51,000 | 69,000 | ' | ' |
Customer relationships | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' |
Amortizing intangible assets, Cost | 5,005,000 | 5,269,000 | ' | ' |
Accumulated amortization | -731,000 | -490,000 | ' | ' |
Amortizing intangible assets, Net | 4,274,000 | 4,779,000 | ' | ' |
Technology - Formulae and processes | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' |
Amortizing intangible assets, Cost | 8,551,000 | 9,144,000 | ' | ' |
Accumulated amortization | -826,000 | -600,000 | ' | ' |
Amortizing intangible assets, Net | 7,725,000 | 8,544,000 | ' | ' |
Permits, licenses and lease | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' |
Amortizing intangible assets, Cost | 26,264,000 | 28,085,000 | ' | ' |
Accumulated amortization | -2,536,000 | -1,844,000 | ' | ' |
Amortizing intangible assets, Net | 23,728,000 | 26,241,000 | ' | ' |
Non-compete agreements | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' |
Amortizing intangible assets, Cost | 20,000 | 20,000 | ' | ' |
Accumulated amortization | -20,000 | -20,000 | ' | ' |
Amortizing intangible assets, Net | $0 | ' | ' | ' |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
The Plan | ' | ' | ' |
EMPLOYEE BENEFIT PLANS | ' | ' | ' |
Entity's matching contribution (as a percent) | 55.00% | ' | ' |
Company's contribution as a percentage of total compensation | 6.00% | ' | ' |
Entity's matching contributions to the Plan | $436,000 | $364,000 | $354,000 |
The SPP | ' | ' | ' |
EMPLOYEE BENEFIT PLANS | ' | ' | ' |
Company's contribution as a percentage of total compensation | 5.00% | ' | ' |
Entity's matching contributions to the Plan | $415,000 | $365,000 | $354,000 |
CLOSURE_AND_POSTCLOSURE_OBLIGA2
CLOSURE AND POST-CLOSURE OBLIGATIONS (Details) (Stablex facility, Surety bond, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Stablex facility | Surety bond | ' |
Closure obligations | ' |
Period for which the guarantee obligation is required to be maintained | '25 years |
Carrying value of Commercial bonds dedicated for closure obligations | $845,000 |
CLOSURE_AND_POSTCLOSURE_OBLIGA3
CLOSURE AND POST-CLOSURE OBLIGATIONS (Details 2) (Asset retirement obligations) | 12 Months Ended |
Dec. 31, 2013 | |
Fair value of future asset retirement obligations | ' |
Estimated inflation rate (as a percent) | 2.60% |
Weighted-average | ' |
Fair value of future asset retirement obligations | ' |
Credit-adjusted risk-free interest rate (as a percent) | 7.60% |
CLOSURE_AND_POSTCLOSURE_OBLIGA4
CLOSURE AND POST-CLOSURE OBLIGATIONS (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Changes to reported closure and post-closure obligations | ' | ' | ' |
Closure and post-closure obligations, beginning of period | $17,362,000 | $17,338,000 | ' |
Accretion expense | 1,241,000 | 1,367,000 | 1,292,000 |
Payments | -1,715,000 | -2,398,000 | ' |
Adjustments | 760,000 | 1,036,000 | ' |
Foreign Currency translation | -180,000 | 19,000 | ' |
Closure and post-closure obligations, end of period | 17,468,000 | 17,362,000 | 17,338,000 |
Less current portion | -949,000 | -1,913,000 | ' |
Long-term portion | 16,519,000 | 15,449,000 | ' |
Changes to reported closure and post-closure asset, recorded as a component of Property and equipment, net | ' | ' | ' |
Net closure and post-closure asset, beginning of year | 1,629,000 | 1,280,000 | ' |
Additions or adjustments to closure and post-closure asset | 886,000 | 921,000 | ' |
Amortization of closure and post-closure asset | -552,000 | -584,000 | ' |
Foreign currency translation | -131,000 | 12,000 | ' |
Net closure and post-closure asset, end of year | 1,832,000 | 1,629,000 | 1,280,000 |
Operating Disposal Facilities | ' | ' | ' |
Changes to reported closure and post-closure obligations | ' | ' | ' |
Adjustments | 848,000 | 964,000 | ' |
Non-Operating Disposal Facilities | ' | ' | ' |
Changes to reported closure and post-closure obligations | ' | ' | ' |
Adjustments | ($88,000) | $72,000 | ' |
DEBT_Details
DEBT (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
DEBT | ' |
Maximum borrowing capacity | $95 |
Revolving Line of Credit | ' |
DEBT | ' |
Maximum borrowing capacity | 20 |
Effective interest rate (as a percent) | 1.42% |
Amount outstanding | 0 |
Availability for borrowings under line of credit | 16 |
Line of credit issued in the form of a standby letter of credit | 4 |
Reducing Revolving Line of Credit | ' |
DEBT | ' |
Maximum borrowing capacity | 75 |
Reduction in commitment amount for each quarter | 2.8 |
Effective interest rate (as a percent) | 1.42% |
Amount outstanding | 0 |
Availability for borrowings under line of credit | $63.90 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
U.S. Federal | $14,769 | $13,989 | $10,662 |
State | 2,241 | 1,905 | 1,237 |
Foreign | 3,623 | 873 | 632 |
Total current | 20,633 | 16,767 | 12,531 |
Deferred: | ' | ' | ' |
U.S. Federal | -2,068 | -270 | -396 |
State | -218 | 79 | -85 |
Foreign | -351 | -517 | -613 |
Total deferred | -2,637 | -708 | -1,094 |
Income tax expense | $17,996 | $16,059 | $11,437 |
Reconciliation between the effective income tax rate and the applicable statutory federal and state income tax rate | ' | ' | ' |
Taxes computed at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes (net of federal income tax benefit) (as a percent) | 2.70% | 3.30% | 2.50% |
Foreign rate differential (as a percent) | -2.00% | -0.30% | ' |
Other (as a percent) | 0.20% | 0.50% | 0.90% |
Total (as a percent) | 35.90% | 38.50% | 38.40% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carryforward | $6,270,000 | $5,555,000 |
Accruals, allowances and other | 1,708,000 | 2,065,000 |
Environmental compliance and other site related costs | 554,000 | ' |
Other | 460,000 | ' |
Total deferred tax assets | 8,992,000 | 7,620,000 |
Less: valuation allowance | -6,253,000 | -5,537,000 |
Net deferred tax assets | 2,739,000 | 2,083,000 |
Deferred tax liabilities: | ' | ' |
Property and equipment | -6,752,000 | -6,646,000 |
Intangible assets | -9,425,000 | -10,463,000 |
Environmental compliance and other site related costs | ' | -1,228,000 |
Other | ' | -629,000 |
Total deferred tax liabilities | -16,177,000 | -18,966,000 |
Net deferred tax liability | -13,438,000 | -16,883,000 |
Unremitted earning for the Company's foreign subsidiary, Stablex | 0 | ' |
Excess of tax basis over financial reporting basis in investment in Stablex | $14,200,000 | ' |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Domestic and foreign components of Income (loss) before income taxes | ' | ' | ' |
Domestic | $37,958,000 | $40,425,000 | $29,775,000 |
Foreign | 12,189,000 | 1,293,000 | 32,000 |
Income before income taxes | 50,147,000 | 41,718,000 | 29,807,000 |
Changes to unrecognized tax benefits (excluding related penalties and interest) | ' | ' | ' |
Unrecognized tax benefits, beginning of year | 438,000 | 438,000 | ' |
Gross increases in tax positions in prior periods | ' | ' | 438,000 |
Unrecognized tax benefits, end of year | 438,000 | 438,000 | 438,000 |
Interest expense related to unrecognized tax benefits | $13,000 | $13,000 | $16,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Future minimum lease payments on non-cancelable operating lease | ' | ' | ' |
2014 | $495,000 | ' | ' |
2015 | 435,000 | ' | ' |
2016 | 343,000 | ' | ' |
2017 | 339,000 | ' | ' |
2018 | 333,000 | ' | ' |
Thereafter | 54,000 | ' | ' |
Total | 1,999,000 | ' | ' |
Rental expense under operating leases | 685,000 | 495,000 | 483,000 |
US Ecology and the thermal recycling operation owner-operator | ' | ' | ' |
Litigation and Regulatory Proceedings | ' | ' | ' |
Amount recognized in selling, general and administrative expenses regarding asserted various technical compliance and permitting violations of the Clean Air Act of 1970 | $238,000 | ' | ' |
EQUITY_Details
EQUITY (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Public Common Stock Offering | ' | ' | ' | ' |
Net proceeds were used to repay amounts outstanding under the Credit Agreement | $30,000,000 | $54,500,000 | $21,500,000 | $39,400,000 |
Common Stock | ' | ' | ' | ' |
Public Common Stock Offering | ' | ' | ' | ' |
Issuance of common stock in connection with public offering (in shares) | 2,990,000 | ' | ' | ' |
Shares sold pursuant to the underwriters' option to purchase additional shares | 390,000 | ' | ' | ' |
Offering price (in dollars per share) | $34 | $34 | ' | ' |
Proceeds from public offering, net of underwriting discounts and commissions and offering expenses | $96,400,000 | ' | ' | ' |
EQUITY_Details_2
EQUITY (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Stock options | ' | ' | ' |
EQUITY | ' | ' | ' |
Number of plans under award | 3 | ' | ' |
Expiration term | '10 years | ' | ' |
Number of shares authorized for grant | 1,500,000 | ' | ' |
Number of shares available for future grant | 879,000 | ' | ' |
Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 434,512 | ' | ' |
Granted (in shares) | 216,600 | ' | ' |
Exercised (in shares) | -256,336 | ' | ' |
Cancelled, expired or forfeited (in shares) | -1,000 | ' | ' |
Outstanding at the end of the period (in shares) | 393,776 | 434,512 | ' |
Exercisable at the end of the period (in shares) | 145,138 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $18.93 | ' | ' |
Granted (in dollars per share) | $25.56 | ' | ' |
Exercised (in dollars per share) | $18.99 | ' | ' |
Cancelled, expired or forfeited (in dollars per share) | $25.25 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $22.52 | $18.93 | ' |
Exercisable at the end of the period (in dollars per share) | $18.76 | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding at the end of the period (in dollars) | $5,742,000 | ' | ' |
Exercisable at the end of the period (in dollars) | 2,661,000 | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' |
Outstanding at the end of the period | '7 years 8 months 12 days | ' | ' |
Exercisable at the end of the period | '5 years 4 months 24 days | ' | ' |
Additional disclosures | ' | ' | ' |
Weighted average grant date fair value (in dollars per share) | $5.06 | $4.03 | $4.04 |
Total intrinsic value of stock options exercised | 2,400,000 | 497,000 | 39,000 |
Significant weighted-average assumptions relating to the valuation of each option grant | ' | ' | ' |
Expected life | '3 years 3 months 18 days | '3 years 3 months 18 days | '3 years 3 months 18 days |
Expected volatility (as a percent) | 36.00% | 39.00% | 46.00% |
Risk-free interest rate (as a percent) | 0.40% | 0.40% | 1.20% |
Expected dividend yield (as a percent) | 3.40% | 4.10% | 4.50% |
Stock options | Minimum | ' | ' | ' |
EQUITY | ' | ' | ' |
Award vesting period from the date of grant | '1 year | ' | ' |
Stock options | Minimum | Non-employee directors | ' | ' | ' |
EQUITY | ' | ' | ' |
Vesting requirement condition, percentage of attendance in regularly scheduled board meetings | 75.00% | ' | ' |
Stock options | Maximum | ' | ' | ' |
EQUITY | ' | ' | ' |
Award vesting period from the date of grant | '3 years | ' | ' |
Restricted stock | ' | ' | ' |
EQUITY | ' | ' | ' |
Number of plans under award | 2 | ' | ' |
Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 11,200 | ' | ' |
Granted (in shares) | 51,800 | ' | ' |
Vested (in shares) | -11,200 | ' | ' |
Cancelled, expired or forfeited (in shares) | -200 | ' | ' |
Outstanding at the end of the period (in shares) | 51,600 | 11,200 | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $17.73 | ' | ' |
Granted (in dollars per share) | $25.89 | ' | ' |
Vested (in dollars per share) | $17.73 | ' | ' |
Cancelled, expired or forfeited (in dollars per share) | $25.25 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $25.89 | $17.73 | ' |
Additional disclosures | ' | ' | ' |
Total fair value of restricted stock vested | 299,000 | 413,000 | 340,000 |
Director Plan | Restricted stock | ' | ' | ' |
EQUITY | ' | ' | ' |
Common stock value that can be purchased | $50,000 | ' | ' |
Award vesting period from the date of grant | '1 year | ' | ' |
Number of shares authorized for grant | 200,000 | ' | ' |
Number of shares available for future grant | 67,200 | ' | ' |
Shares | ' | ' | ' |
Granted (in shares) | 9,000 | ' | ' |
Director Plan | Restricted stock | Minimum | ' | ' | ' |
EQUITY | ' | ' | ' |
Vesting requirement condition, percentage of attendance in regularly scheduled board meetings | 75.00% | ' | ' |
Employee Plan | Restricted stock | ' | ' | ' |
EQUITY | ' | ' | ' |
Award vesting period from the date of grant | '1 year | ' | ' |
Number of shares authorized for grant | 200,000 | ' | ' |
Number of shares available for future grant | 72,062 | ' | ' |
Shares | ' | ' | ' |
Granted (in shares) | 42,800 | ' | ' |
EQUITY_Details_3
EQUITY (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-Based Compensation Expense | ' | ' | ' |
Total share-based compensation | $865,000 | $846,000 | $837,000 |
Income tax benefit | -310,000 | -326,000 | -321,000 |
Share-based compensation, net of tax | 555,000 | 520,000 | 516,000 |
Unrecognized Share-Based Compensation Expense | ' | ' | ' |
Unrecognized compensation expense related to unvested share-based awards granted | 1,900,000 | ' | ' |
Weighted average remaining vesting period over which expense is expected to be recognized | '2 years | ' | ' |
Stock options | ' | ' | ' |
Share-Based Compensation Expense | ' | ' | ' |
Total share-based compensation | 346,000 | 397,000 | 449,000 |
Restricted stock | ' | ' | ' |
Share-Based Compensation Expense | ' | ' | ' |
Total share-based compensation | $519,000 | $449,000 | $388,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $9,207 | $10,328 | $7,210 | $5,406 | $6,112 | $8,662 | $6,362 | $4,523 | $32,151 | $25,659 | $18,370 |
Weighted average basic shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 18,592 | 18,238 | 18,198 |
Earnings per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $1.73 | $1.41 | $1.01 |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $9,207 | $10,328 | $7,210 | $5,406 | $6,112 | $8,662 | $6,362 | $4,523 | $32,151 | $25,659 | $18,370 |
Weighted average basic shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 18,592 | 18,238 | 18,198 |
Dilutive effect of stock options and restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 84 | 43 | 25 |
Weighted average diluted shares outstanding | 19,281 | 18,533 | 18,483 | 18,407 | 18,332 | 18,270 | 18,264 | 18,254 | 18,676 | 18,281 | 18,223 |
Earnings per share (in dollars per share) | $0.48 | $0.56 | $0.39 | $0.29 | $0.33 | $0.47 | $0.35 | $0.25 | $1.72 | $1.40 | $1.01 |
Anti-dilutive shares excluded from calculation | ' | ' | ' | ' | ' | ' | ' | ' | 156 | 266 | 320 |
OPERATING_SEGMENTS_Details
OPERATING SEGMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
segment | |||||||||||
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $59,360,000 | $53,090,000 | $45,777,000 | $42,899,000 | $50,406,000 | $45,739,000 | $39,980,000 | $33,013,000 | $201,126,000 | $169,138,000 | $154,917,000 |
Direct operating costs | ' | ' | ' | ' | ' | ' | ' | ' | 86,238,000 | 79,177,000 | 73,758,000 |
Transportation costs | ' | ' | ' | ' | ' | ' | ' | ' | 35,902,000 | 23,664,000 | 27,292,000 |
Gross profit | 23,056,000 | 21,620,000 | 18,928,000 | 15,382,000 | 18,306,000 | 18,589,000 | 17,326,000 | 12,076,000 | 78,986,000 | 66,297,000 | 53,867,000 |
Selling, general & administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 26,055,000 | 25,659,000 | 21,502,000 |
Operating income | 15,354,000 | 15,512,000 | 12,409,000 | 9,656,000 | 10,814,000 | 12,393,000 | 10,960,000 | 6,471,000 | 52,931,000 | 40,638,000 | 32,365,000 |
Interest income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -809,000 | -861,000 | -1,578,000 |
Foreign currency gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -2,327,000 | 1,213,000 | -1,321,000 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 352,000 | 728,000 | 341,000 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 50,147,000 | 41,718,000 | 29,807,000 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 17,996,000 | 16,059,000 | 11,437,000 |
Net income | 9,207,000 | 10,328,000 | 7,210,000 | 5,406,000 | 6,112,000 | 8,662,000 | 6,362,000 | 4,523,000 | 32,151,000 | 25,659,000 | 18,370,000 |
Depreciation, amortization & accretion | ' | ' | ' | ' | ' | ' | ' | ' | 17,517,000 | 16,752,000 | 16,644,000 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 21,373,000 | 15,766,000 | 10,096,000 |
Total assets | 300,556,000 | ' | ' | ' | 218,694,000 | ' | ' | ' | 300,556,000 | 218,694,000 | 202,588,000 |
Treatment and disposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 165,109,000 | 145,707,000 | 129,071,000 |
Transportation services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 36,017,000 | 23,431,000 | 25,846,000 |
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general & administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 14,229,000 | 14,092,000 | 11,337,000 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | -14,229,000 | -14,092,000 | -11,337,000 |
Interest income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -822,000 | -878,000 | -1,601,000 |
Foreign currency gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -2,869,000 | 1,382,000 | -1,347,000 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -17,920,000 | -13,588,000 | -14,285,000 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 17,996,000 | 16,059,000 | 11,437,000 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | -35,916,000 | -29,647,000 | -25,722,000 |
Depreciation, amortization & accretion | ' | ' | ' | ' | ' | ' | ' | ' | 39,000 | 42,000 | 51,000 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 384,000 | 42,000 | 106,000 |
Total assets | 78,428,000 | ' | ' | ' | 7,617,000 | ' | ' | ' | 78,428,000 | 7,617,000 | 6,948,000 |
Operating Disposal Facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 201,106,000 | 169,118,000 | 154,895,000 |
Direct operating costs | ' | ' | ' | ' | ' | ' | ' | ' | 86,111,000 | 78,883,000 | 73,455,000 |
Transportation costs | ' | ' | ' | ' | ' | ' | ' | ' | 35,902,000 | 23,663,000 | 27,292,000 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 79,093,000 | 66,572,000 | 54,148,000 |
Selling, general & administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 11,826,000 | 11,567,000 | 10,165,000 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 67,267,000 | 55,005,000 | 43,983,000 |
Interest income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 13,000 | 17,000 | 23,000 |
Foreign currency gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 542,000 | -169,000 | 26,000 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 342,000 | 723,000 | 340,000 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 68,164,000 | 55,576,000 | 44,372,000 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 68,164,000 | 55,576,000 | 44,372,000 |
Depreciation, amortization & accretion | ' | ' | ' | ' | ' | ' | ' | ' | 17,270,000 | 16,494,000 | 16,375,000 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 20,989,000 | 15,707,000 | 9,974,000 |
Total assets | 222,049,000 | ' | ' | ' | 210,984,000 | ' | ' | ' | 222,049,000 | 210,984,000 | 195,552,000 |
Operating Disposal Facilities | Treatment and disposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 165,089,000 | 145,687,000 | 129,049,000 |
Operating Disposal Facilities | Transportation services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 36,017,000 | 23,431,000 | 25,846,000 |
Non-Operating Disposal Facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | 20,000 | 22,000 |
Direct operating costs | ' | ' | ' | ' | ' | ' | ' | ' | 127,000 | 294,000 | 303,000 |
Transportation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | -107,000 | -275,000 | -281,000 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | -107,000 | -275,000 | -281,000 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | 5,000 | 1,000 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -97,000 | -270,000 | -280,000 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | -97,000 | -270,000 | -280,000 |
Depreciation, amortization & accretion | ' | ' | ' | ' | ' | ' | ' | ' | 208,000 | 216,000 | 218,000 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000 | 16,000 |
Total assets | 79,000 | ' | ' | ' | 93,000 | ' | ' | ' | 79,000 | 93,000 | 88,000 |
Non-Operating Disposal Facilities | Treatment and disposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $20,000 | $20,000 | $22,000 |
OPERATING_SEGMENTS_Details_2
OPERATING SEGMENTS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue, Property and Equipment and Intangible Assets Outside of the United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | $59,360 | $53,090 | $45,777 | $42,899 | $50,406 | $45,739 | $39,980 | $33,013 | $201,126 | $169,138 | $154,917 |
Total long- lived assets | 151,691 | ' | ' | ' | 150,563 | ' | ' | ' | 151,691 | 150,563 | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Property and Equipment and Intangible Assets Outside of the United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 147,128 | 130,889 | 118,402 |
Total long- lived assets | 86,175 | ' | ' | ' | 81,605 | ' | ' | ' | 86,175 | 81,605 | ' |
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Property and Equipment and Intangible Assets Outside of the United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 53,998 | 38,249 | 36,515 |
Total long- lived assets | $65,516 | ' | ' | ' | $68,958 | ' | ' | ' | $65,516 | $68,958 | ' |
QUARTERLY_FINANCIAL_DATA_unaud2
QUARTERLY FINANCIAL DATA (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
QUARTERLY FINANCIAL DATA (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $59,360 | $53,090 | $45,777 | $42,899 | $50,406 | $45,739 | $39,980 | $33,013 | $201,126 | $169,138 | $154,917 |
Gross profit | 23,056 | 21,620 | 18,928 | 15,382 | 18,306 | 18,589 | 17,326 | 12,076 | 78,986 | 66,297 | 53,867 |
Operating income | 15,354 | 15,512 | 12,409 | 9,656 | 10,814 | 12,393 | 10,960 | 6,471 | 52,931 | 40,638 | 32,365 |
Net income | $9,207 | $10,328 | $7,210 | $5,406 | $6,112 | $8,662 | $6,362 | $4,523 | $32,151 | $25,659 | $18,370 |
Earnings per share - diluted (in dollars per share) | $0.48 | $0.56 | $0.39 | $0.29 | $0.33 | $0.47 | $0.35 | $0.25 | $1.72 | $1.40 | $1.01 |
Weighted average common shares outstanding used in the diluted earnings per share calculation | 19,281 | 18,533 | 18,483 | 18,407 | 18,332 | 18,270 | 18,264 | 18,254 | 18,676 | 18,281 | 18,223 |
Dividends paid per share (in dollars per share) | $0.18 | $0.18 | $0.18 | ' | $0.36 | $0.18 | $0.18 | $0.18 | $0.54 | $0.90 | ' |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 28, 2014 | Jan. 02, 2014 |
Subsequent event | Subsequent event | |||||||||||
SUBSEQUENT EVENT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly dividend declared (in dollars per share) | $0.18 | $0.18 | $0.18 | $0.36 | $0.18 | $0.18 | $0.18 | $0.54 | $0.90 | ' | ' | $0.18 |
Dividend paid in cash | ' | ' | ' | ' | ' | ' | ' | $9,978 | $16,432 | $13,113 | $3,900 | ' |