Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 05, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'US ECOLOGY, INC. | ' |
Entity Central Index Key | '0000742126 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
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 Common Stock, Shares Outstanding | ' | 21,626,571 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $10,921 | $73,940 |
Receivables, net | 152,212 | 43,636 |
Prepaid expenses and other current assets | 14,734 | 3,612 |
Income taxes receivable | 3,784 | ' |
Deferred income taxes | 3,386 | 1,340 |
Total current assets | 185,037 | 122,528 |
Property and equipment, net | 220,318 | 114,859 |
Restricted cash and investments | 5,724 | 4,097 |
Intangible assets, net | 280,858 | 36,832 |
Goodwill | 213,359 | 21,693 |
Other assets | 11,853 | 547 |
Total assets | 917,149 | 300,556 |
Current Liabilities: | ' | ' |
Accounts payable | 26,026 | 7,277 |
Deferred revenue | 11,968 | 8,870 |
Accrued liabilities | 35,331 | 8,691 |
Accrued salaries and benefits | 10,911 | 6,957 |
Income taxes payable | 2,153 | 4,428 |
Current portion of closure and post-closure obligations | 5,424 | 949 |
Current portion of long-term debt | 4,002 | ' |
Total current liabilities | 95,815 | 37,172 |
Long-term closure and post-closure obligations | 53,524 | 16,519 |
Long-term debt | 408,960 | ' |
Other long-term liabilities | 1,246 | 69 |
Unrecognized tax benefits | 57 | 480 |
Deferred income taxes | 107,651 | 14,778 |
Total liabilities | 667,253 | 69,018 |
Commitments and contingencies | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock $0.01 par value, 50,000 authorized; 21,538 and 18,538 shares issued, respectively | 216 | 215 |
Additional paid-in capital | 165,027 | 162,830 |
Retained earnings | 88,516 | 70,597 |
Treasury stock, at cost, 19 and 71 shares, respectively | ' | -319 |
Accumulated other comprehensive income (loss) | -3,863 | -1,785 |
Total stockholders' equity | 249,896 | 231,538 |
Total liabilities and stockholders' equity | $917,149 | $300,556 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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 | 21,627 | 21,538 |
Treasury stock, shares | 0 | 19 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
Revenue | $170,894 | $53,090 | $290,272 | $141,766 |
Direct operating costs | 91,939 | 20,902 | 145,938 | 61,745 |
Transportation costs | 26,292 | 10,568 | 44,282 | 24,091 |
Gross profit | 52,663 | 21,620 | 100,052 | 55,930 |
Selling, general and administrative expenses | 25,829 | 6,108 | 46,713 | 18,353 |
Operating income | 26,834 | 15,512 | 53,339 | 37,577 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 11 | 4 | 94 | 11 |
Interest expense | -4,544 | -208 | -5,488 | -651 |
Foreign currency gain (loss) | -830 | 683 | -1,027 | -1,448 |
Other | 268 | 77 | 520 | 268 |
Total other income (expense) | -5,095 | 556 | -5,901 | -1,820 |
Income before income taxes | 21,739 | 16,068 | 47,438 | 35,757 |
Income tax expense | 8,406 | 5,740 | 17,880 | 12,813 |
Net income | $13,333 | $10,328 | $29,558 | $22,944 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.62 | $0.56 | $1.37 | $1.25 |
Diluted (in dollars per share) | $0.61 | $0.56 | $1.37 | $1.24 |
Shares used in earnings per share calculation: | ' | ' | ' | ' |
Basic (in shares) | 21,570 | 18,459 | 21,526 | 18,395 |
Diluted (in shares) | 21,680 | 18,533 | 21,649 | 18,475 |
Dividends paid per share (in dollars per share) | $0.18 | $0.18 | $0.54 | $0.36 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $13,333 | $10,328 | $29,558 | $22,944 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation gain (loss) | -2,156 | 782 | -2,078 | -1,147 |
Comprehensive income | $11,177 | $11,110 | $27,480 | $21,797 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income | $29,558,000 | $22,944,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of property and equipment | 16,773,000 | 10,792,000 |
Amortization of intangible assets | 5,233,000 | 1,092,000 |
Accretion of closure and post-closure obligations | 1,675,000 | 927,000 |
Unrealized foreign currency loss | 1,453,000 | 1,706,000 |
Deferred income taxes | 2,407,000 | -1,646,000 |
Share-based compensation expense | 869,000 | 601,000 |
Unrecognized tax benefits | -424,000 | 10,000 |
Net loss on sale of property and equipment | 43,000 | 12,000 |
Amortization of debt discount | 37,000 | ' |
Changes in assets and liabilities (net of effect of business acquisition): | ' | ' |
Receivables | -20,938,000 | -7,218,000 |
Income taxes receivable | -17,000 | ' |
Other assets | -3,219,000 | -833,000 |
Accounts payable and accrued liabilities | 2,449,000 | 1,004,000 |
Deferred revenue | 391,000 | 2,564,000 |
Accrued salaries and benefits | -1,949,000 | -1,541,000 |
Income taxes payable | -2,281,000 | 2,752,000 |
Closure and post-closure obligations | -879,000 | -989,000 |
Net cash provided by operating activities | 31,181,000 | 32,177,000 |
Cash flows from investing activities: | ' | ' |
Business acquisition (net of cash acquired) | -465,895,000 | ' |
Purchases of property and equipment | -17,910,000 | -15,590,000 |
Proceeds from sale of short term investment | 654,000 | ' |
Proceeds from sale of property and equipment | 120,000 | 64,000 |
Proceeds from sale of restricted cash and investments | 8,000 | ' |
Purchases of restricted cash and investments | -40,000 | ' |
Net cash used in investing activities | -483,063,000 | -15,526,000 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of long-term debt | 413,962,000 | 9,500,000 |
Deferred financing costs paid | -14,001,000 | -185,000 |
Dividends paid | -11,640,000 | -6,645,000 |
Payments on long-term debt | -1,038,000 | -19,000,000 |
Proceeds from exercise of stock options | 1,445,000 | 2,192,000 |
Other | 204,000 | -58,000 |
Net cash provided by (used in) financing activities | 388,932,000 | -14,196,000 |
Effect of foreign exchange rate changes on cash | -69,000 | -197,000 |
Increase (decrease) in cash and cash equivalents | -63,019,000 | 2,258,000 |
Cash and cash equivalents at beginning of period | 73,940,000 | 2,120,000 |
Cash and cash equivalents at end of period | 10,921,000 | 4,378,000 |
Supplemental Disclosures | ' | ' |
Income taxes paid, net of receipts | 17,494,000 | 11,467,000 |
Interest paid | 4,145,000 | 547,000 |
Non-cash investing and financing activities: | ' | ' |
Closure and post-closure retirement asset | 2,863,000 | 550,000 |
Capital expenditures in accounts payable | 2,378,000 | 2,526,000 |
Restricted stock issued from treasury shares | $546,000 | $864,000 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2014 | |
DESCRIPTION OF BUSINESS | ' |
GENERAL | ' |
NOTE 1.GENERAL | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements include the results of operations, financial position and cash flows of US Ecology, Inc. and its wholly-owned subsidiaries. All significant intercompany balances have been eliminated. Throughout these financial statements words such as “we,” “us,” “our,” “US Ecology” and the “Company” refer to US Ecology, Inc. and its subsidiaries. | |
In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to present fairly, in all material respects, the results of the Company for the periods presented. These consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted pursuant to the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations and cash flows for the nine months ended September 30, 2014 are not necessarily indicative of results to be expected for the entire fiscal year. | |
The Company’s Consolidated Balance Sheet as of December 31, 2013 has been derived from the Company’s audited Consolidated Balance Sheet as of that date. | |
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. 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. | |
Restricted Cash and Investments | |
Restricted cash and investments 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. | |
BUSINESS_COMBINATION
BUSINESS COMBINATION | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
BUSINESS COMBINATION | ' | |||||||||||||
BUSINESS ACQUISITION | ' | |||||||||||||
NOTE 2.BUSINESS COMBINATION | ||||||||||||||
On June 17, 2014, the Company acquired 100% of the outstanding shares of EQ Holdings, Inc. and its wholly-owned subsidiaries (collectively “EQ”). EQ is a fully integrated environmental services company providing waste treatment and disposal, wastewater treatment, remediation, recycling, industrial cleaning and maintenance, transportation, total waste management, technical services, and emergency response services to a variety of industries and customers in North America. The total purchase price was $465.9 million, net of cash acquired, and was funded through a combination of cash on hand and borrowings under a new $415.0 million term loan. The purchase price is subject to post-closing adjustments including agreed upon working capital requirements. | ||||||||||||||
We have recognized the assets and liabilities of EQ based on our preliminary estimates of their acquisition date fair values. The determination of the fair values of the acquired assets and assumed liabilities (and the related determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. As such, we have not completed our valuation analysis and calculations in sufficient detail necessary to arrive at the final estimates of the fair market value of the assets acquired and liabilities assumed, along with the related allocations to goodwill and intangible assets. All information presented is preliminary and subject to revision pending finalization of our fair market valuation analysis. Our final fair value determinations may be significantly different than those reflected in our consolidated financial statements as of September 30, 2014. | ||||||||||||||
The following table summarizes the consideration paid for EQ and the preliminary fair value estimates of assets acquired and liabilities assumed recognized at the acquisition date, with purchase price allocation adjustments since the preliminary purchase price allocation as previously disclosed as of June 30, 2014: | ||||||||||||||
Purchase Price Allocation | ||||||||||||||
$s in thousands | June 30, 2014 | Adjustments | September 30, 2014 | |||||||||||
Current assets | $ | 114,227 | $ | (1,028 | ) | $ | 113,199 | |||||||
Property and equipment | 103,532 | — | 103,532 | |||||||||||
Identifiable intangible assets | 250,900 | — | 250,900 | |||||||||||
Current liabilities | (56,550 | ) | (888 | ) | (57,438 | ) | ||||||||
Other liabilities | (131,336 | ) | 177 | (131,159 | ) | |||||||||
Total identifiable net assets | 280,773 | (1,739 | ) | 279,034 | ||||||||||
Goodwill | 190,894 | 1,739 | 192,633 | |||||||||||
Total purchase price | $ | 471,667 | $ | — | $ | 471,667 | ||||||||
Purchase price allocation adjustments relate primarily to the receipt of additional information regarding the fair values of accounts receivable, prepaid expenses, accounts payable and accrued expenses, deferred income taxes and residual goodwill. | ||||||||||||||
Goodwill of $192.6 million arising from the acquisition is the result of several factors. EQ has an assembled workforce that serves the U.S. industrial market utilizing state-of-the-art technology to treat a wide range of industrial and hazardous waste. The acquisition of EQ increases our geographic base providing a coast-to-coast presence and an expanded service platform to better serve key North American hazardous waste markets. In addition, the acquisition of EQ provides us with an opportunity to compete for additional waste clean-up project work; expand penetration with national accounts; improve and enhance transportation, logistics, and service offerings with existing customers and attract new customers. All of the goodwill recognized was assigned to our EQ Operations reporting segment. None of the goodwill recognized is expected to be deductible for income tax purposes. | ||||||||||||||
The preliminary fair value estimate of identifiable intangible assets by major intangible asset class and related weighted average amortization period are as follows: | ||||||||||||||
$s in thousands | June 17, 2014 | Weighted Average | ||||||||||||
Amortization Period | ||||||||||||||
(Years) | ||||||||||||||
Permits and licenses | $ | 119,500 | 45 | |||||||||||
Customer relationships | 115,000 | 15 | ||||||||||||
Tradename | 9,900 | 4 | ||||||||||||
Customer backlog | 3,600 | 10 | ||||||||||||
Non-compete agreements | 1,400 | 1 | ||||||||||||
Internet domain and website | 900 | 19 | ||||||||||||
Database | 600 | 15 | ||||||||||||
Total identifiable intangible assets | $ | 250,900 | 29 | |||||||||||
The following unaudited pro forma financial information presents the combined results of operations as if EQ had been combined with us at the beginning of each of the periods presented. The pro forma financial information includes the accounting effects 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 periods presented, nor should it be taken as indication of our future consolidated results of operations. | ||||||||||||||
(unaudited) | (unaudited) | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$s in thousands, except per share amounts | 2014 | 2013 | 2014 | 2013 | ||||||||||
Pro forma combined: | ||||||||||||||
Revenue | $ | 170,894 | $ | 148,704 | $ | 458,091 | $ | 381,159 | ||||||
Net income | $ | 13,333 | $ | 9,606 | $ | 24,835 | $ | 19,246 | ||||||
Earnings per share | ||||||||||||||
Basic | $ | 0.62 | $ | 0.52 | $ | 1.15 | $ | 1.05 | ||||||
Diluted | $ | 0.61 | $ | 0.52 | $ | 1.15 | $ | 1.04 | ||||||
Revenue from EQ included in US Ecology’s consolidated statement of operations since the closing of the acquisition on June 17, 2014 was $111.3 million and $125.9 million, respectively, for the three and nine month periods ended September 30, 2014. Operating income from EQ included in US Ecology’s consolidated statement of operations since the closing of the acquisition on June 17, 2014 was $10.5 million and $12.0 million, respectively, for the three and nine month periods ended September 30, 2014. Acquisition-related costs of $307,000 and $5.6 million were included in Selling, general and administrative expenses in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2014, respectively. | ||||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
NOTE 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||
Changes in accumulated other comprehensive income (loss), comprised entirely of foreign currency translation adjustments, consisted of the following: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$s in thousands | 2014 | 2013 | 2014 | 2013 | ||||||||||
Balance, beginning of period | $ | (1,707 | ) | $ | (1,301 | ) | $ | (1,785 | ) | $ | 628 | |||
Foreign currency translation gain (loss) in other comprehensive income | (2,156 | ) | 782 | (2,078 | ) | (1,147 | ) | |||||||
Balance, end of period | $ | (3,863 | ) | $ | (519 | ) | $ | (3,863 | ) | $ | (519 | ) | ||
CONCENTRATIONS_AND_CREDIT_RISK
CONCENTRATIONS AND CREDIT RISK | 9 Months Ended |
Sep. 30, 2014 | |
CONCENTRATIONS AND CREDIT RISK | ' |
CONCENTRATIONS AND CREDIT RISK | ' |
NOTE 4.CONCENTRATIONS AND CREDIT RISK | |
Major Customers | |
Revenue from a single customer accounted for approximately 12% and 10% of total revenue for the three and nine months ended September 30, 2014, respectively. Revenue from a single customer accounted for 14% of total revenue for the three months ended September 30, 2013. No customer accounted for more than 10% of total revenue for the nine months ended September 30, 2013. | |
Receivables from a single customer accounted for approximately 14% of total trade receivables as of September 30, 2014. Receivables from a single customer accounted for approximately 16% of total trade receivables as of December 31, 2013. | |
Credit Risk Concentration | |
We maintain most of our cash 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. | |
RECEIVABLES
RECEIVABLES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
RECEIVABLES | ' | |||||||
RECEIVABLES | ' | |||||||
NOTE 5.RECEIVABLES | ||||||||
Receivables consisted of the following: | ||||||||
September 30, | December 31, | |||||||
$s in thousands | 2014 | 2013 | ||||||
Trade | $ | 130,017 | $ | 42,055 | ||||
Unbilled revenue | 23,709 | 1,296 | ||||||
Other | 2,652 | 810 | ||||||
Total receivables | 156,378 | 44,161 | ||||||
Allowance for doubtful accounts | (4,166 | ) | (525 | ) | ||||
Receivables, net | $ | 152,212 | $ | 43,636 | ||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
NOTE 6.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, accrued liabilities and long-term debt. 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 carrying amount of our long-term debt approximates fair value due to the absence of any significant changes in interest rates or the Company’s credit risk profile since the execution of the Company’s Credit Agreement (as defined below) on June 17, 2014. | ||||||||||||||
The Company’s assets measured at fair value on a recurring basis consisted of our Restricted cash and investments as follows: | ||||||||||||||
September 30, 2014 | ||||||||||||||
Quoted Prices in | Other Observable | Unobservable | ||||||||||||
Active Markets | Inputs | Inputs | ||||||||||||
$s in thousands | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||
Assets: | ||||||||||||||
Fixed-income securities (1) | $ | 400 | $ | 3,598 | $ | — | $ | 3,998 | ||||||
Money market funds (2) | $ | 1,726 | $ | — | $ | — | $ | 1,726 | ||||||
Total | $ | 2,126 | $ | 3,598 | $ | — | $ | 5,724 | ||||||
December 31, 2013 | ||||||||||||||
Quoted Prices in | Other Observable | Unobservable | ||||||||||||
Active Markets | Inputs | Inputs | ||||||||||||
$s in thousands | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||
Assets: | ||||||||||||||
Fixed-income securities (1) | $ | 399 | $ | 3,607 | $ | — | $ | 4,006 | ||||||
Money market funds (2) | $ | 91 | $ | — | $ | — | $ | 91 | ||||||
Total | $ | 490 | $ | 3,607 | $ | — | $ | 4,097 | ||||||
(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. | ||||||||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
NOTE 7.PROPERTY AND EQUIPMENT | ||||||||
Property and equipment consisted of the following: | ||||||||
September 30, | December 31, | |||||||
$s in thousands | 2014 | 2013 | ||||||
Cell development costs | $ | 93,402 | $ | 77,348 | ||||
Land and improvements | 35,359 | 18,073 | ||||||
Buildings and improvements | 78,955 | 59,101 | ||||||
Railcars | 17,375 | 17,375 | ||||||
Vehicles and other equipment | 96,119 | 42,859 | ||||||
Construction in progress | 20,667 | 6,784 | ||||||
Total property and equipment | 341,877 | 221,540 | ||||||
Accumulated depreciation and amortization | (121,559 | ) | (106,681 | ) | ||||
Property and equipment, net | $ | 220,318 | $ | 114,859 | ||||
Depreciation and amortization expense for the three months ended September 30, 2014 and 2013 was $8.4 million and $3.7 million, respectively. Depreciation and amortization expense for the nine months ended September 30, 2014 and 2013 was $16.8 million and $10.8 million, respectively. | ||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||
NOTE 8.GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
Changes in goodwill for the nine months ended September 30, 2014 consisted of the following: | ||||||||||||||
$s in thousands | December 31, | Additions | Foreign | September 30, | ||||||||||
2013 | Currency | 2014 | ||||||||||||
Translation | ||||||||||||||
Goodwill: | ||||||||||||||
Operating Disposal Facilities | $ | 21,693 | $ | — | $ | (967 | ) | $ | 20,726 | |||||
EQ Operations | — | 192,633 | — | 192,633 | ||||||||||
Total goodwill | $ | 21,693 | $ | 192,633 | $ | (967 | ) | $ | 213,359 | |||||
Intangible assets consisted of the following: | ||||||||||||||
$s in thousands | September 30, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
Amortizing intangible assets: | ||||||||||||||
Customer relationships | $ | 119,823 | $ | 5,005 | ||||||||||
Permits, licenses and lease | 144,518 | 26,264 | ||||||||||||
Technology - Formulae and processes | 8,145 | 8,551 | ||||||||||||
Tradename | 9,900 | — | ||||||||||||
Customer backlog | 3,600 | — | ||||||||||||
Non-compete agreements | 1,420 | 20 | ||||||||||||
Internet domain and website | 900 | — | ||||||||||||
Database | 690 | 94 | ||||||||||||
Developed software | 313 | 329 | ||||||||||||
Total amortizing intangible assets | 289,309 | 40,263 | ||||||||||||
Accumulated amortization | (9,353 | ) | (4,341 | ) | ||||||||||
Nonamortizing intangible assets: | ||||||||||||||
Permits and licenses | 750 | 750 | ||||||||||||
Tradename | 152 | 160 | ||||||||||||
Total intangible assets, net | $ | 280,858 | $ | 36,832 | ||||||||||
At September 30, 2014, the net carrying amounts of goodwill and amortizing intangible assets include preliminary estimates of $192.6 million and $250.9 million, respectively, as a result of our acquisition of EQ. | ||||||||||||||
Amortization expense for the three months ended September 30, 2014 and 2013 was $4.0 million and $362,000, respectively. Amortization expense for the nine months ended September 30, 2014 and 2013 was $5.2 million and $1.1 million, respectively. Future amortization expense of amortizing intangible assets, including the amortization of the preliminary values assigned to EQ amortizing intangible assets, is as follows: | ||||||||||||||
$s in thousands | Total | |||||||||||||
Remainder of 2014 | $ | 4,000 | ||||||||||||
2015 | 15,222 | |||||||||||||
2016 | 14,541 | |||||||||||||
2017 | 14,536 | |||||||||||||
2018 | $ | 13,183 | ||||||||||||
DEBT
DEBT | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
DEBT | ' | |||||||
DEBT | ' | |||||||
NOTE 9.DEBT | ||||||||
Long-term debt consisted of the following: | ||||||||
September 30, | December 31, | |||||||
$s in thousands | 2014 | 2013 | ||||||
Term loan | $ | 413,962 | $ | — | ||||
Net discount on term loan | $ | (1,000 | ) | — | ||||
Total debt | 412,962 | — | ||||||
Current portion of long-term debt | (4,002 | ) | — | |||||
Long-term debt | $ | 408,960 | $ | — | ||||
Future maturities of long-term debt, excluding the net discount, as of September 30, 2014 consist of the following: | ||||||||
$s in thousands | Maturities | |||||||
2014 | $ | 1,037 | ||||||
2015 | 4,150 | |||||||
2016 | 4,150 | |||||||
2017 | 4,150 | |||||||
2018 | 4,150 | |||||||
Thereafter | 396,325 | |||||||
$ | 413,962 | |||||||
On June 17, 2014, in connection with the acquisition of EQ, the Company entered into a new $540.0 million senior secured credit agreement (the “Credit Agreement”) with a syndicate of banks comprised of a $415.0 million term loan (the “Term Loan”) with a maturity date of June 17, 2021 and a $125.0 million revolving line of credit (the “Revolving Credit Facility”) with a maturity date of June 17, 2019. Upon entering into the Credit Agreement, the Company terminated its existing credit agreement with Wells Fargo, dated October, 29, 2010, as amended (the “Former Agreement”). Immediately prior to the termination of the Former Agreement, there were no outstanding borrowings under the Former Agreement. No early termination penalties were incurred as a result of the termination of the Former Agreement. | ||||||||
Term Loan | ||||||||
The Term Loan provides an initial commitment amount of $415.0 million, the proceeds of which were used to acquire 100% of the outstanding shares of EQ and pay related transaction fees and expenses. The Term Loan bears interest at a base rate (as defined in the Credit Agreement) plus 2.00% or LIBOR plus 3.00%, at the Company’s option. The Term Loan is subject to amortization in equal quarterly installments in an aggregate annual amount equal to 1.00% of the original principal amount of the Term Loan. At September 30, 2014, the effective interest rate on the Term Loan was 3.75%. Interest only payments are due either monthly or on the last day of any interest period, as applicable. As set forth in the Credit Agreement, the Company is required to enter into one or more interest rate hedge agreements in amounts sufficient to fix the interest rate on at least 50% of the principal amount of the $415.0 million Term Loan. In October 2014, the Company entered into an interest rate swap agreement with Wells Fargo, effectively fixing the interest rate on $250.0 million, or 60%, of the Term Loan borrowings outstanding as of September 30, 2014. Refer to Note 17- Subsequent Events for additional details. | ||||||||
Revolving Credit Facility | ||||||||
The Revolving Credit Facility provides up to $125.0 million of revolving credit loans or letters of credit with the use of proceeds restricted solely for working capital and other general corporate purposes. Under the Revolving Credit Facility, revolving loans are available based on a base rate (as defined in the Credit Agreement) 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”). The Company is required to pay a commitment fee of 0.50% per annum on the unused portion of the Revolving Credit Facility, with such commitment fee to be reduced based upon the Company’s total leverage ratio as defined in the Credit Agreement. The maximum letter of credit capacity under the new revolving credit facility is $50.0 million and the Credit Agreement provides for a letter of credit fee equal to the applicable margin for LIBOR loans under the Revolving Credit Facility. Interest only payments are due either monthly or on the last day of any interest period, as applicable. At September 30, 2014, there were no borrowings outstanding on the Revolving Credit Facility. The availability under the Revolving Credit Facility was $97.8 million with $27.2 million of the Revolving Credit Facility issued in the form of standby letters of credit utilized as collateral for closure and post-closure financial assurance. | ||||||||
Except as set forth below, the Company may prepay the Term Loan or permanently reduce the Revolving Credit Facility commitment under the Credit Agreement at any time without premium or penalty (other than customary “breakage” costs with respect to the early termination of LIBOR loans). On or prior to nine months after the closing of the Credit Agreement, if we prepay the initial term loans or amend the pricing terms of the initial term loans, in each case in connection with a reduction of the effective yield, we are required to pay a 1% prepayment premium (unless in connection with a change of control, sale or permitted acquisition). Subject to certain exceptions, the Credit Agreement provides for mandatory prepayment upon certain asset dispositions, casualty events and issuances of indebtedness. The Credit Agreement is also subject to mandatory annual prepayments commencing in December 2015 if our total leverage (defined as the ratio of our consolidated funded debt as of the last day of the applicable fiscal year to our adjusted EBITDA for such period) exceeds certain ratios as follows: 50% of our adjusted excess cash flow (as defined in the Credit Agreement and which takes into account certain adjustments) if our total leverage ratio is greater than 2.50 to 1.00, with step-downs to 0% if our total leverage ratio is equal to or less than 2.50 to 1.00. | ||||||||
Pursuant to (i) an unconditional guarantee agreement (the “Guarantee”) and (ii) a collateral agreement (the “Collateral Agreement”), each entered into by the Company and its domestic subsidiaries on June 17, 2014, the Company’s obligations under the Credit Agreement are jointly and severally and fully and unconditionally guaranteed on a senior basis by all of the Company’s existing and certain future domestic subsidiaries and the Credit Agreement is secured by substantially all of the Company’s and its domestic subsidiaries’ assets except the Company’s and its domestic subsidiaries’ real property. | ||||||||
The Credit Agreement contains customary restrictive covenants, subject to certain permitted amounts and exceptions, including covenants limiting the ability of the Company to incur additional indebtedness, pay dividends and make other restricted payments, repurchase shares of our outstanding stock and create certain liens. 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 default due to the payment of the dividend. | ||||||||
The Credit Agreement also contains a financial maintenance covenant, which is a maximum Consolidated Senior Secured Leverage Ratio, as defined in the Credit Agreement, and is only applicable to the Revolving Credit Facility. Our Consolidated Senior Secured Leverage Ratio as of the last day of any fiscal quarter, commencing with June 30, 2014, may not exceed the ratios indicated below: | ||||||||
Fiscal Quarters Ending | Maximum Ratio | |||||||
June 30, 2014 through September 30, 2015 | 4.00 to 1.00 | |||||||
December 31, 2015 through September 30, 2016 | 3.75 to 1.00 | |||||||
December 31, 2016 through September 30, 2017 | 3.50 to 1.00 | |||||||
December 31, 2017 through September 30, 2018 | 3.25 to 1.00 | |||||||
December 31, 2018 and thereafter | 3.00 to 1.00 | |||||||
At September 30, 2014, we were in compliance with all of the financial covenants in the Credit Agreement. | ||||||||
CLOSURE_AND_POSTCLOSURE_OBLIGA
CLOSURE AND POST-CLOSURE OBLIGATIONS | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
CLOSURE AND POST-CLOSURE OBLIGATIONS | ' | |||||||
CLOSURE AND POST-CLOSURE OBLIGATIONS | ' | |||||||
NOTE 10.CLOSURE AND POST-CLOSURE OBLIGATIONS | ||||||||
Our accrued closure and post-closure obligations represent 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. | ||||||||
Changes to reported closure and post-closure obligations consisted of the following: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
$s in thousands | September 30, 2014 | September 30, 2014 | ||||||
Closure and post-closure obligations, beginning of period | $ | 58,588 | $ | 17,468 | ||||
Liabilities assumed in EQ acquisition | — | 37,915 | ||||||
Accretion expense | 959 | 1,675 | ||||||
Payments | (515 | ) | (879 | ) | ||||
Adjustments | — | 2,863 | ||||||
Currency translation | (84 | ) | (94 | ) | ||||
Closure and post-closure obligations, end of period | 58,948 | 58,948 | ||||||
Less current portion | (5,424 | ) | (5,424 | ) | ||||
Long-term portion | $ | 53,524 | $ | 53,524 | ||||
Adjustments to the obligation are changes in the expected timing or amount of cash expenditures based upon actual and estimated cash expenditures. The adjustments in 2014 are related to an increase to the obligation for our Grand View, Idaho opening facility, due to increases in our estimated closure costs for a newly constructed disposal cell. | ||||||||
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
NOTE 11.INCOME TAXES | |
Our effective tax rate for the three months ended September 30, 2014 was 38.7%, up from 35.7% for the three months ended September 30, 2013. Our effective tax rate for the nine months ended September 30, 2014 was 37.7%, up from 35.8% for the nine months ended September 30, 2013. The increases for both the three and nine months ended September 30, 2014 reflect non-deductible business development and transaction expenses associated with the acquisition of EQ. | |
Due to the expiration of certain statutes of limitations, during the third quarter of 2014 we reduced our unrecognized tax benefits by $424,000 which had a favorable impact on our effective tax rate for the quarter. As of September 30, 2014 we have unrecognized tax benefits of $57,000 remaining that, if recognized, would favorably affect the effective tax rate. As of September 30, 2014, we have recorded $6,000 of cumulative interest expense associated with this unrecognized tax benefit. 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 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 2011 through 2013. Additionally, we may be subject to examinations by various state and local taxing jurisdictions for tax years 2009 through 2013. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
NOTE 12.EARNINGS PER SHARE | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
$s and shares in thousands, except per share | 2014 | 2013 | ||||||||||||
amounts | Basic | Diluted | Basic | Diluted | ||||||||||
Net income | 13,333 | $ | 13,333 | $ | 10,328 | $ | 10,328 | |||||||
Weighted average basic shares outstanding | 21,570 | 21,570 | 18,459 | 18,459 | ||||||||||
Dilutive effect of stock options and restricted stock | 110 | 74 | ||||||||||||
Weighted average diluted shares outstanding | 21,680 | 18,533 | ||||||||||||
Earnings per share | $ | 0.62 | $ | 0.61 | $ | 0.56 | $ | 0.56 | ||||||
Anti-dilutive shares excluded from calculation | 78 | 174 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||
$s and shares in thousands, except per share | 2014 | 2013 | ||||||||||||
amounts | Basic | Diluted | Basic | Diluted | ||||||||||
Net income | $ | 29,558 | $ | 29,558 | $ | 22,944 | $ | 22,944 | ||||||
Weighted average basic shares outstanding | 21,526 | 21,526 | 18,395 | 18,395 | ||||||||||
Dilutive effect of stock options and restricted stock | 123 | 80 | ||||||||||||
Weighted average diluted shares outstanding | 21,649 | 18,475 | ||||||||||||
Earnings per share | $ | 1.37 | $ | 1.37 | $ | 1.25 | $ | 1.24 | ||||||
Anti-dilutive shares excluded from calculation | 50 | 197 | ||||||||||||
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2014 | |
EQUITY | ' |
EQUITY | ' |
NOTE 13.EQUITY | |
During the nine months ended September 30, 2014, option holders exercised 115,188 options with a weighted-average exercise price of $21.52 per option. Option holders exercised 46,744 of these options via net share settlement. During the nine months ended September 30, 2014, the Company issued 24,038 shares of restricted stock from our treasury stock at an average cost of $21.00 per share. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
COMMITMENTS AND CONTINGENCIES. | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 14.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. 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 (“U.S. EPA”) 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 U.S. EPA asserted various related technical compliance and permitting violations of the Clean Air Act of 1970. Negotiations on the terms of a proposed settlement are ongoing with the U.S. EPA. We recognized a charge of $238,000 during the second quarter of 2013 in Selling, general and administrative expenses in the Consolidated Statement of Operations related to the enforcement matter. In July 2014, based on further negotiations with the U.S. EPA, our estimated liability was reduced to $138,000 and, accordingly, we recognized a credit of $100,000 during the third quarter of 2014 in Selling, general and administrative expenses in the Consolidated Statement of Operations. | |||||
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, individually or in the aggregate, have a materially adverse effect on our financial position, results of operations or cash flows. | |||||
Operating Leases | |||||
In connection with the acquisition of EQ on June 17, 2014, the Company acquired additional operating lease agreements primarily covering facilities, office equipment and machinery. Future minimum lease payments on non-cancellable EQ operating leases as of September 30, 2014 are as follows: | |||||
$s in thousands | Payments | ||||
2014 | $ | 1,346 | |||
2015 | 5,176 | ||||
2016 | 4,358 | ||||
2017 | 3,370 | ||||
2018 | 1,906 | ||||
Thereafter | 849 | ||||
$ | 17,005 | ||||
MULTIEMPLOYER_DEFINED_BENEFIT_
MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS | ' | |||||||||||||||
MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS | ' | |||||||||||||||
NOTE 15.MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS | ||||||||||||||||
Certain of the Company’s wholly-owned subsidiaries, acquired with the acquisition of EQ on June 17, 2014, participate in seven multi-employer defined benefit pension plans under the terms of collective bargaining agreements covering most of the subsidiaries’ union employees. Contributions are determined in accordance with the provisions of negotiated labor contracts and are generally based on stipulated rates per hours worked. Benefits under these plans are generally based on compensation levels and years of service. | ||||||||||||||||
The financial risks of participating in multi-employer plans are different from single employer defined benefit pension plans in the following respects: | ||||||||||||||||
· | Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. | |||||||||||||||
· | If a participating employer discontinues contributions to a plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | |||||||||||||||
· | If a participating employer chooses to stop participating in a plan, a withdrawal liability may be created based on the unfunded vested benefits for all employees in the plan. | |||||||||||||||
Information regarding significant multi-employer pension benefit plans in which the Company participates is shown in the following table: | ||||||||||||||||
Pension Protection Act | Contribution Made by EQ (1) | |||||||||||||||
Plan Employer | Plan | Certified Zone Status | $s in thousands | |||||||||||||
Name of Plan | ID Number | Number | 2013 | 2012 | 2013 | 2012 | ||||||||||
Operating Engineers Local 324 Pension Fund | 38-1900637 | 1 | Red | Red | $ | 1,061 | $ | 874 | ||||||||
Contributions to multi-employer plans not individually significant | 320 | 249 | ||||||||||||||
Total contributions made by EQ (1) | $ | 1,381 | $ | 1,123 | ||||||||||||
(1) Represents contributions made prior to the Company’s acquisition of EQ on June 17, 2014. | ||||||||||||||||
Based on information as of April 30, 2013 and 2012, the year end of the Operating Engineers Local 324 Pension Fund (the “Local 324 Plan”), the Company’s contributions made to the Local 324 Plan represented less than 5 percent of total contributions received by the Local 324 Plan during the 2013 and 2012 plan years. | ||||||||||||||||
The certified zone status in the table above is defined by the Department of Labor and the Pension Protection Act of 2006 and represents the level at which the plan is funded. Plans in the red zone are less than 65 percent funded; plans in the yellow zone are less | ||||||||||||||||
than 80 percent funded; and plans in the green zone are at least 80 percent funded. The certified zone status is as of the Local 324 Plan’s year end of April 30, 2013 and 2012. | ||||||||||||||||
A financial improvement or rehabilitation plan, as defined under ERISA, was adopted by the Local 324 Plan on March 17, 2011 and the Rehabilitation Period began May 1, 2013. | ||||||||||||||||
As of September 30, 2014, approximately 30% of the EQ workforce was employed under union collective bargaining agreements with the Local 324 Operating Engineers union. On September 30, 2014, a collective bargaining agreement covering 113 employees at the Taylor, MI facility expired without being renewed, although renewal negotiations are ongoing. The remaining collective bargaining agreements expire on November 30, 2015, and April 30, 2017. | ||||||||||||||||
OPERATING_SEGMENTS
OPERATING SEGMENTS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
OPERATING SEGMENTS | ' | ||||||||||||||||
OPERATING SEGMENTS | ' | ||||||||||||||||
NOTE 16. OPERATING SEGMENTS | |||||||||||||||||
Prior to June 17, 2014, our operations were reported in two segments, Operating Disposal Facilities and Non-Operating Disposal Facilities, which reflected 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 no longer accepting hazardous and/or radioactive waste. In connection with our acquisition of EQ Holdings, Inc. on June 17, 2014, we added a third segment, EQ Operations, which consists of EQ’s legacy operations. Our chief operating decision maker reviews discrete financial information for each of these segments to evaluate performance and make decisions about allocating resources. As a result of the acquisition of EQ, we plan to continue to refine our segment reporting to reflect ongoing changes in the way we manage our business, and there can be no assurance that we will continue to separately report EQ’s financial results in the future. | |||||||||||||||||
Summarized financial information for our reportable segments is shown in the following tables. Income taxes and the elimination of intersegment transactions are assigned to Corporate, but all other items are included in the segment in which they originated. | |||||||||||||||||
Three Months Ended September 30, 2014 (in thousands) | Operating | Non- | Corporate | EQ | Total | ||||||||||||
Disposal | Operating | Operations | |||||||||||||||
Facilities | Disposal | ||||||||||||||||
Facilities | |||||||||||||||||
Revenue - Treatment and disposal | $ | 47,182 | $ | 10 | $ | (139 | ) | $ | 33,154 | $ | 80,207 | ||||||
Revenue - Transportation and services | 12,562 | — | (47 | ) | 78,172 | 90,687 | |||||||||||
Total revenue | 59,744 | 10 | (186 | ) | 111,326 | 170,894 | |||||||||||
Direct operating costs | 23,095 | 55 | (186 | ) | 68,975 | 91,939 | |||||||||||
Transportation costs | 12,609 | — | — | 13,683 | 26,292 | ||||||||||||
Gross profit (loss) | 24,040 | (45 | ) | — | 28,668 | 52,663 | |||||||||||
Selling, general & administrative expense | 2,972 | — | 4,643 | 18,214 | 25,829 | ||||||||||||
Operating income (loss) | 21,068 | (45 | ) | (4,643 | ) | 10,454 | 26,834 | ||||||||||
Interest income (expense), net | 3 | — | (4,452 | ) | (84 | ) | (4,533 | ) | |||||||||
Foreign currency gain (loss) | 410 | — | (1,240 | ) | — | (830 | ) | ||||||||||
Other income | 124 | 2 | 1 | 141 | 268 | ||||||||||||
Income (loss) before income taxes | 21,605 | (43 | ) | (10,334 | ) | 10,511 | 21,739 | ||||||||||
Income tax expense | — | — | 8,406 | — | 8,406 | ||||||||||||
Net income (loss) | $ | 21,605 | $ | (43 | ) | $ | (18,740 | ) | $ | 10,511 | $ | 13,333 | |||||
Depreciation, amortization & accretion | $ | 4,510 | $ | 49 | $ | 17 | $ | 8,757 | $ | 13,333 | |||||||
Capital expenditures | $ | 2,551 | $ | — | $ | 71 | $ | 6,604 | $ | 9,226 | |||||||
Total assets | $ | 219,783 | $ | 112 | $ | 25,101 | $ | 672,153 | $ | 917,149 | |||||||
Three Months Ended September 30, 2013 (in thousands) | Operating | Non- | Corporate | EQ | Total | ||||||||||||
Disposal | Operating | Operations | |||||||||||||||
Facilities | Disposal | ||||||||||||||||
Facilities | |||||||||||||||||
Revenue - Treatment and disposal | $ | 42,489 | $ | 6 | $ | — | $ | — | $ | 42,495 | |||||||
Revenue - Transportation and services | 10,595 | — | — | — | 10,595 | ||||||||||||
Total revenue | 53,084 | 6 | — | — | 53,090 | ||||||||||||
Direct operating costs | 20,847 | 55 | — | — | 20,902 | ||||||||||||
Transportation costs | 10,568 | — | — | — | 10,568 | ||||||||||||
Gross profit (loss) | 21,669 | (49 | ) | — | — | 21,620 | |||||||||||
Selling, general & administrative expense | 2,611 | — | 3,497 | — | 6,108 | ||||||||||||
Operating income (loss) | 19,058 | (49 | ) | (3,497 | ) | — | 15,512 | ||||||||||
Interest income (expense), net | 4 | — | (208 | ) | — | (204 | ) | ||||||||||
Foreign currency gain (loss) | (233 | ) | — | 916 | — | 683 | |||||||||||
Other income | 75 | 2 | — | — | 77 | ||||||||||||
Income (loss) before income taxes | 18,904 | (47 | ) | (2,789 | ) | — | 16,068 | ||||||||||
Income tax expense | — | — | 5,740 | — | 5,740 | ||||||||||||
Net income (loss) | $ | 18,904 | $ | (47 | ) | $ | (8,529 | ) | $ | — | $ | 10,328 | |||||
Depreciation, amortization & accretion | $ | 4,336 | $ | 52 | $ | 9 | $ | — | $ | 4,397 | |||||||
Capital expenditures | $ | 2,915 | $ | — | $ | 145 | $ | — | $ | 3,060 | |||||||
Total assets | $ | 222,503 | $ | 87 | $ | 8,141 | $ | — | $ | 230,731 | |||||||
Nine Months Ended September 30, 2014 (in thousands) | Operating | Non- | Corporate | EQ | Total | ||||||||||||
Disposal | Operating | Operations | |||||||||||||||
Facilities | Disposal | ||||||||||||||||
Facilities | |||||||||||||||||
Revenue - Treatment and disposal | $ | 135,746 | $ | 22 | $ | (169 | ) | $ | 37,862 | $ | 173,461 | ||||||
Revenue - Transportation and services | 28,835 | — | (57 | ) | 88,033 | 116,811 | |||||||||||
Total revenue | 164,581 | 22 | (226 | ) | 125,895 | 290,272 | |||||||||||
Direct operating costs | 67,951 | 157 | (225 | ) | 78,055 | 145,938 | |||||||||||
Transportation costs | 29,137 | — | (1 | ) | 15,146 | 44,282 | |||||||||||
Gross profit (loss) | 67,493 | (135 | ) | — | 32,694 | 100,052 | |||||||||||
Selling, general & administrative expense | 8,488 | — | 17,565 | 20,660 | 46,713 | ||||||||||||
Operating income (loss) | 59,005 | (135 | ) | (17,565 | ) | 12,034 | 53,339 | ||||||||||
Interest income (expense), net | 10 | — | (5,268 | ) | (136 | ) | (5,394 | ) | |||||||||
Foreign currency gain (loss) | 396 | — | (1,423 | ) | — | (1,027 | ) | ||||||||||
Other income | 355 | 7 | 1 | 157 | 520 | ||||||||||||
Income (loss) before income taxes | 59,766 | (128 | ) | (24,255 | ) | 12,055 | 47,438 | ||||||||||
Income tax expense | — | — | 17,880 | — | 17,880 | ||||||||||||
Net income (loss) | $ | 59,766 | $ | (128 | ) | $ | (42,135 | ) | $ | 12,055 | $ | 29,558 | |||||
Depreciation, amortization & accretion | $ | 13,470 | $ | 146 | $ | 47 | $ | 10,018 | $ | 23,681 | |||||||
Capital expenditures | $ | 10,102 | $ | 43 | $ | 312 | $ | 7,453 | $ | 17,910 | |||||||
Total assets | $ | 219,783 | $ | 112 | $ | 25,101 | $ | 672,153 | $ | 917,149 | |||||||
Nine Months Ended September 30, 2013 (in thousands) | Operating | Non- | Corporate | EQ | Total | ||||||||||||
Disposal | Operating | Operations | |||||||||||||||
Facilities | Disposal | ||||||||||||||||
Facilities | |||||||||||||||||
Revenue - Treatment and disposal | $ | 117,553 | $ | 16 | $ | — | $ | — | $ | 117,569 | |||||||
Revenue - Transportation and services | 24,197 | — | — | — | 24,197 | ||||||||||||
Total revenue | 141,750 | 16 | — | — | 141,766 | ||||||||||||
Direct operating costs | 61,583 | 162 | — | — | 61,745 | ||||||||||||
Transportation costs | 24,091 | — | — | — | 24,091 | ||||||||||||
Gross profit (loss) | 56,076 | (146 | ) | — | — | 55,930 | |||||||||||
Selling, general & administrative expense | 8,524 | — | 9,829 | — | 18,353 | ||||||||||||
Operating income (loss) | 47,552 | (146 | ) | (9,829 | ) | — | 37,577 | ||||||||||
Interest income (expense), net | 10 | — | (650 | ) | — | (640 | ) | ||||||||||
Foreign currency gain (loss) | 199 | — | (1,647 | ) | — | (1,448 | ) | ||||||||||
Other income | 261 | 7 | — | — | 268 | ||||||||||||
Income (loss) before income taxes | 48,022 | (139 | ) | (12,126 | ) | — | 35,757 | ||||||||||
Income tax expense | — | — | 12,813 | — | 12,813 | ||||||||||||
Net income (loss) | $ | 48,022 | $ | (139 | ) | $ | (24,939 | ) | $ | — | $ | 22,944 | |||||
Depreciation, amortization & accretion | $ | 12,628 | $ | 156 | $ | 27 | $ | — | $ | 12,811 | |||||||
Capital expenditures | $ | 15,330 | $ | — | $ | 260 | $ | — | $ | 15,590 | |||||||
Total assets | $ | 222,503 | $ | 87 | $ | 8,141 | $ | — | $ | 230,731 | |||||||
Revenue, Property 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 consisted of the following: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
$s in thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 155,073 | $ | 37,833 | $ | 243,724 | $ | 101,852 | |||||||||
Canada | 15,821 | 15,257 | 46,548 | 39,914 | |||||||||||||
Total revenue | $ | 170,894 | $ | 53,090 | $ | 290,272 | $ | 141,766 | |||||||||
Long-lived assets, comprised of property and equipment and intangible assets net of accumulated depreciation and amortization, by geographic location consisted of the following: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
$s in thousands | 2014 | 2013 | |||||||||||||||
United States | $ | 440,019 | $ | 86,175 | |||||||||||||
Canada | 61,157 | 65,516 | |||||||||||||||
Total long-lived assets | $ | 501,176 | $ | 151,691 | |||||||||||||
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2014 | |
SUBSEQUENT EVENT. | ' |
SUBSEQUENT EVENT | ' |
NOTE 17.SUBSEQUENT EVENTS | |
Quarterly Dividend | |
On October 1, 2014, we declared a quarterly dividend of $0.18 per common share to stockholders of record on October 21, 2014. The dividend was paid using cash on hand on October 28, 2014 in an aggregate amount of $3.9 million. | |
Interest Rate Swap | |
On October 29, 2014, the Company entered into an interest rate swap agreement with Wells Fargo with the intention of hedging the Company’s interest rate exposure on a portion of the Company’s outstanding LIBOR-based variable rate debt. Under the terms of the swap, effective December 31, 2014, the Company will pay to Wells Fargo interest at the fixed effective rate of 5.17% and will receive from Wells Fargo interest at the variable one-month LIBOR rate on an initial notional amount of $250.0 million. The interest rate swap will be accounted for as a cash flow hedge whereby changes in the fair value of the cash flow hedge will be recorded in other comprehensive income, with any ineffectiveness recorded directly to interest expense. | |
GENERAL_Policies
GENERAL (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
DESCRIPTION OF BUSINESS | ' |
Basis of presentation | ' |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements include the results of operations, financial position and cash flows of US Ecology, Inc. and its wholly-owned subsidiaries. All significant intercompany balances have been eliminated. Throughout these financial statements words such as “we,” “us,” “our,” “US Ecology” and the “Company” refer to US Ecology, Inc. and its subsidiaries. | |
In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to present fairly, in all material respects, the results of the Company for the periods presented. These consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted pursuant to the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations and cash flows for the nine months ended September 30, 2014 are not necessarily indicative of results to be expected for the entire fiscal year. | |
The Company’s Consolidated Balance Sheet as of December 31, 2013 has been derived from the Company’s audited Consolidated Balance Sheet as of that date. | |
Use of Estimates | ' |
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. 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. | |
Restricted Cash and Investments | ' |
Restricted Cash and Investments | |
Restricted cash and investments 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. | |
BUSINESS_COMBINATION_Tables
BUSINESS COMBINATION (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
RECEIVABLES | ' | |||||||||||||
Summary of consideration paid and the preliminary fair value of assets acquired and liabilities assumed at the acquisition date | ' | |||||||||||||
Purchase Price Allocation | ||||||||||||||
$s in thousands | June 30, 2014 | Adjustments | September 30, 2014 | |||||||||||
Current assets | $ | 114,227 | $ | (1,028 | ) | $ | 113,199 | |||||||
Property and equipment | 103,532 | — | 103,532 | |||||||||||
Identifiable intangible assets | 250,900 | — | 250,900 | |||||||||||
Current liabilities | (56,550 | ) | (888 | ) | (57,438 | ) | ||||||||
Other liabilities | (131,336 | ) | 177 | (131,159 | ) | |||||||||
Total identifiable net assets | 280,773 | (1,739 | ) | 279,034 | ||||||||||
Goodwill | 190,894 | 1,739 | 192,633 | |||||||||||
Total purchase price | $ | 471,667 | $ | — | $ | 471,667 | ||||||||
Schedule of fair value estimate of identifiable intangible assets by major intangible assets and related weighted average amortization period | ' | |||||||||||||
$s in thousands | June 17, 2014 | Weighted Average | ||||||||||||
Amortization Period | ||||||||||||||
(Years) | ||||||||||||||
Permits and licenses | $ | 119,500 | 45 | |||||||||||
Customer relationships | 115,000 | 15 | ||||||||||||
Tradename | 9,900 | 4 | ||||||||||||
Customer backlog | 3,600 | 10 | ||||||||||||
Non-compete agreements | 1,400 | 1 | ||||||||||||
Internet domain and website | 900 | 19 | ||||||||||||
Database | 600 | 15 | ||||||||||||
Total identifiable intangible assets | $ | 250,900 | 29 | |||||||||||
Schedule of unaudited pro forma financial information | ' | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$s in thousands, except per share amounts | 2014 | 2013 | 2014 | 2013 | ||||||||||
Pro forma combined: | ||||||||||||||
Revenue | $ | 170,894 | $ | 148,704 | $ | 458,091 | $ | 381,159 | ||||||
Net income | $ | 13,333 | $ | 9,606 | $ | 24,835 | $ | 19,246 | ||||||
Earnings per share | ||||||||||||||
Basic | $ | 0.62 | $ | 0.52 | $ | 1.15 | $ | 1.05 | ||||||
Diluted | $ | 0.61 | $ | 0.52 | $ | 1.15 | $ | 1.04 | ||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$s in thousands | 2014 | 2013 | 2014 | 2013 | ||||||||||
Balance, beginning of period | $ | (1,707 | ) | $ | (1,301 | ) | $ | (1,785 | ) | $ | 628 | |||
Foreign currency translation gain (loss) in other comprehensive income | (2,156 | ) | 782 | (2,078 | ) | (1,147 | ) | |||||||
Balance, end of period | $ | (3,863 | ) | $ | (519 | ) | $ | (3,863 | ) | $ | (519 | ) | ||
RECEIVABLES_Tables
RECEIVABLES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
RECEIVABLES | ' | |||||||
Schedule of receivables | ' | |||||||
September 30, | December 31, | |||||||
$s in thousands | 2014 | 2013 | ||||||
Trade | $ | 130,017 | $ | 42,055 | ||||
Unbilled revenue | 23,709 | 1,296 | ||||||
Other | 2,652 | 810 | ||||||
Total receivables | 156,378 | 44,161 | ||||||
Allowance for doubtful accounts | (4,166 | ) | (525 | ) | ||||
Receivables, net | $ | 152,212 | $ | 43,636 | ||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
Schedule of assets measured at fair value on a recurring basis | ' | |||||||||||||
September 30, 2014 | ||||||||||||||
Quoted Prices in | Other Observable | Unobservable | ||||||||||||
Active Markets | Inputs | Inputs | ||||||||||||
$s in thousands | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||
Assets: | ||||||||||||||
Fixed-income securities (1) | $ | 400 | $ | 3,598 | $ | — | $ | 3,998 | ||||||
Money market funds (2) | $ | 1,726 | $ | — | $ | — | $ | 1,726 | ||||||
Total | $ | 2,126 | $ | 3,598 | $ | — | $ | 5,724 | ||||||
December 31, 2013 | ||||||||||||||
Quoted Prices in | Other Observable | Unobservable | ||||||||||||
Active Markets | Inputs | Inputs | ||||||||||||
$s in thousands | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||
Assets: | ||||||||||||||
Fixed-income securities (1) | $ | 399 | $ | 3,607 | $ | — | $ | 4,006 | ||||||
Money market funds (2) | $ | 91 | $ | — | $ | — | $ | 91 | ||||||
Total | $ | 490 | $ | 3,607 | $ | — | $ | 4,097 | ||||||
(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. | ||||||||||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
Schedule of property and equipment | ' | |||||||
September 30, | December 31, | |||||||
$s in thousands | 2014 | 2013 | ||||||
Cell development costs | $ | 93,402 | $ | 77,348 | ||||
Land and improvements | 35,359 | 18,073 | ||||||
Buildings and improvements | 78,955 | 59,101 | ||||||
Railcars | 17,375 | 17,375 | ||||||
Vehicles and other equipment | 96,119 | 42,859 | ||||||
Construction in progress | 20,667 | 6,784 | ||||||
Total property and equipment | 341,877 | 221,540 | ||||||
Accumulated depreciation and amortization | (121,559 | ) | (106,681 | ) | ||||
Property and equipment, net | $ | 220,318 | $ | 114,859 | ||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||
Schedule of changes in goodwill | ' | |||||||||||||
$s in thousands | December 31, | Additions | Foreign | September 30, | ||||||||||
2013 | Currency | 2014 | ||||||||||||
Translation | ||||||||||||||
Goodwill: | ||||||||||||||
Operating Disposal Facilities | $ | 21,693 | $ | — | $ | (967 | ) | $ | 20,726 | |||||
EQ Operations | — | 192,633 | — | 192,633 | ||||||||||
Total goodwill | $ | 21,693 | $ | 192,633 | $ | (967 | ) | $ | 213,359 | |||||
Schedule of intangible assets | ' | |||||||||||||
$s in thousands | September 30, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
Amortizing intangible assets: | ||||||||||||||
Customer relationships | $ | 119,823 | $ | 5,005 | ||||||||||
Permits, licenses and lease | 144,518 | 26,264 | ||||||||||||
Technology - Formulae and processes | 8,145 | 8,551 | ||||||||||||
Tradename | 9,900 | — | ||||||||||||
Customer backlog | 3,600 | — | ||||||||||||
Non-compete agreements | 1,420 | 20 | ||||||||||||
Internet domain and website | 900 | — | ||||||||||||
Database | 690 | 94 | ||||||||||||
Developed software | 313 | 329 | ||||||||||||
Total amortizing intangible assets | 289,309 | 40,263 | ||||||||||||
Accumulated amortization | (9,353 | ) | (4,341 | ) | ||||||||||
Nonamortizing intangible assets: | ||||||||||||||
Permits and licenses | 750 | 750 | ||||||||||||
Tradename | 152 | 160 | ||||||||||||
Total intangible assets, net | $ | 280,858 | $ | 36,832 | ||||||||||
Schedule of future amortization expense of amortizing intangible assets, including the amortization of the preliminary values assigned to EQ amortizing intangible assets | ' | |||||||||||||
$s in thousands | Total | |||||||||||||
Remainder of 2014 | $ | 4,000 | ||||||||||||
2015 | 15,222 | |||||||||||||
2016 | 14,541 | |||||||||||||
2017 | 14,536 | |||||||||||||
2018 | $ | 13,183 | ||||||||||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
DEBT | ' | |||||||
Schedule of long-term debt | ' | |||||||
September 30, | December 31, | |||||||
$s in thousands | 2014 | 2013 | ||||||
Term loan | $ | 413,962 | $ | — | ||||
Net discount on term loan | $ | (1,000 | ) | — | ||||
Total debt | 412,962 | — | ||||||
Current portion of long-term debt | (4,002 | ) | — | |||||
Long-term debt | $ | 408,960 | $ | — | ||||
Schedule of future maturities of long-term debt, excluding the net discount | ' | |||||||
$s in thousands | Maturities | |||||||
2014 | $ | 1,037 | ||||||
2015 | 4,150 | |||||||
2016 | 4,150 | |||||||
2017 | 4,150 | |||||||
2018 | 4,150 | |||||||
Thereafter | 396,325 | |||||||
$ | 413,962 | |||||||
Schedule of maximum consolidated senior secured leverage ratio for different periods | ' | |||||||
Fiscal Quarters Ending | Maximum Ratio | |||||||
June 30, 2014 through September 30, 2015 | 4.00 to 1.00 | |||||||
December 31, 2015 through September 30, 2016 | 3.75 to 1.00 | |||||||
December 31, 2016 through September 30, 2017 | 3.50 to 1.00 | |||||||
December 31, 2017 through September 30, 2018 | 3.25 to 1.00 | |||||||
December 31, 2018 and thereafter | 3.00 to 1.00 | |||||||
CLOSURE_AND_POSTCLOSURE_OBLIGA1
CLOSURE AND POST-CLOSURE OBLIGATIONS (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
CLOSURE AND POST-CLOSURE OBLIGATIONS | ' | |||||||
Schedule of changes in closure and post-closure obligations | ' | |||||||
Three Months Ended | Nine Months Ended | |||||||
$s in thousands | September 30, 2014 | September 30, 2014 | ||||||
Closure and post-closure obligations, beginning of period | $ | 58,588 | $ | 17,468 | ||||
Liabilities assumed in EQ acquisition | — | 37,915 | ||||||
Accretion expense | 959 | 1,675 | ||||||
Payments | (515 | ) | (879 | ) | ||||
Adjustments | — | 2,863 | ||||||
Currency translation | (84 | ) | (94 | ) | ||||
Closure and post-closure obligations, end of period | 58,948 | 58,948 | ||||||
Less current portion | (5,424 | ) | (5,424 | ) | ||||
Long-term portion | $ | 53,524 | $ | 53,524 | ||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
Schedule of earnings per share | ' | |||||||||||||
Three Months Ended September 30, | ||||||||||||||
$s and shares in thousands, except per share | 2014 | 2013 | ||||||||||||
amounts | Basic | Diluted | Basic | Diluted | ||||||||||
Net income | 13,333 | $ | 13,333 | $ | 10,328 | $ | 10,328 | |||||||
Weighted average basic shares outstanding | 21,570 | 21,570 | 18,459 | 18,459 | ||||||||||
Dilutive effect of stock options and restricted stock | 110 | 74 | ||||||||||||
Weighted average diluted shares outstanding | 21,680 | 18,533 | ||||||||||||
Earnings per share | $ | 0.62 | $ | 0.61 | $ | 0.56 | $ | 0.56 | ||||||
Anti-dilutive shares excluded from calculation | 78 | 174 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||
$s and shares in thousands, except per share | 2014 | 2013 | ||||||||||||
amounts | Basic | Diluted | Basic | Diluted | ||||||||||
Net income | $ | 29,558 | $ | 29,558 | $ | 22,944 | $ | 22,944 | ||||||
Weighted average basic shares outstanding | 21,526 | 21,526 | 18,395 | 18,395 | ||||||||||
Dilutive effect of stock options and restricted stock | 123 | 80 | ||||||||||||
Weighted average diluted shares outstanding | 21,649 | 18,475 | ||||||||||||
Earnings per share | $ | 1.37 | $ | 1.37 | $ | 1.25 | $ | 1.24 | ||||||
Anti-dilutive shares excluded from calculation | 50 | 197 | ||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
COMMITMENTS AND CONTINGENCIES. | ' | ||||
Schedule of future minimum lease payments on non-cancelable operating leases | ' | ||||
$s in thousands | Payments | ||||
2014 | $ | 1,346 | |||
2015 | 5,176 | ||||
2016 | 4,358 | ||||
2017 | 3,370 | ||||
2018 | 1,906 | ||||
Thereafter | 849 | ||||
$ | 17,005 | ||||
MULTIEMPLOYER_DEFINED_BENEFIT_1
MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS | ' | |||||||||||||||
Schedule of information regarding significant multi-employer pension benefit plans | ' | |||||||||||||||
Pension Protection Act | Contribution Made by EQ (1) | |||||||||||||||
Plan Employer | Plan | Certified Zone Status | $s in thousands | |||||||||||||
Name of Plan | ID Number | Number | 2013 | 2012 | 2013 | 2012 | ||||||||||
Operating Engineers Local 324 Pension Fund | 38-1900637 | 1 | Red | Red | $ | 1,061 | $ | 874 | ||||||||
Contributions to multi-employer plans not individually significant | 320 | 249 | ||||||||||||||
Total contributions made by EQ (1) | $ | 1,381 | $ | 1,123 | ||||||||||||
(1) Represents contributions made prior to the Company’s acquisition of EQ on June 17, 2014. | ||||||||||||||||
OPERATING_SEGMENTS_Tables
OPERATING SEGMENTS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
OPERATING SEGMENTS | ' | ||||||||||||||||
Summary of financial information concerning reportable segments | ' | ||||||||||||||||
Three Months Ended September 30, 2014 (in thousands) | Operating | Non- | Corporate | EQ | Total | ||||||||||||
Disposal | Operating | Operations | |||||||||||||||
Facilities | Disposal | ||||||||||||||||
Facilities | |||||||||||||||||
Revenue - Treatment and disposal | $ | 47,182 | $ | 10 | $ | (139 | ) | $ | 33,154 | $ | 80,207 | ||||||
Revenue - Transportation and services | 12,562 | — | (47 | ) | 78,172 | 90,687 | |||||||||||
Total revenue | 59,744 | 10 | (186 | ) | 111,326 | 170,894 | |||||||||||
Direct operating costs | 23,095 | 55 | (186 | ) | 68,975 | 91,939 | |||||||||||
Transportation costs | 12,609 | — | — | 13,683 | 26,292 | ||||||||||||
Gross profit (loss) | 24,040 | (45 | ) | — | 28,668 | 52,663 | |||||||||||
Selling, general & administrative expense | 2,972 | — | 4,643 | 18,214 | 25,829 | ||||||||||||
Operating income (loss) | 21,068 | (45 | ) | (4,643 | ) | 10,454 | 26,834 | ||||||||||
Interest income (expense), net | 3 | — | (4,452 | ) | (84 | ) | (4,533 | ) | |||||||||
Foreign currency gain (loss) | 410 | — | (1,240 | ) | — | (830 | ) | ||||||||||
Other income | 124 | 2 | 1 | 141 | 268 | ||||||||||||
Income (loss) before income taxes | 21,605 | (43 | ) | (10,334 | ) | 10,511 | 21,739 | ||||||||||
Income tax expense | — | — | 8,406 | — | 8,406 | ||||||||||||
Net income (loss) | $ | 21,605 | $ | (43 | ) | $ | (18,740 | ) | $ | 10,511 | $ | 13,333 | |||||
Depreciation, amortization & accretion | $ | 4,510 | $ | 49 | $ | 17 | $ | 8,757 | $ | 13,333 | |||||||
Capital expenditures | $ | 2,551 | $ | — | $ | 71 | $ | 6,604 | $ | 9,226 | |||||||
Total assets | $ | 219,783 | $ | 112 | $ | 25,101 | $ | 672,153 | $ | 917,149 | |||||||
Three Months Ended September 30, 2013 (in thousands) | Operating | Non- | Corporate | EQ | Total | ||||||||||||
Disposal | Operating | Operations | |||||||||||||||
Facilities | Disposal | ||||||||||||||||
Facilities | |||||||||||||||||
Revenue - Treatment and disposal | $ | 42,489 | $ | 6 | $ | — | $ | — | $ | 42,495 | |||||||
Revenue - Transportation and services | 10,595 | — | — | — | 10,595 | ||||||||||||
Total revenue | 53,084 | 6 | — | — | 53,090 | ||||||||||||
Direct operating costs | 20,847 | 55 | — | — | 20,902 | ||||||||||||
Transportation costs | 10,568 | — | — | — | 10,568 | ||||||||||||
Gross profit (loss) | 21,669 | (49 | ) | — | — | 21,620 | |||||||||||
Selling, general & administrative expense | 2,611 | — | 3,497 | — | 6,108 | ||||||||||||
Operating income (loss) | 19,058 | (49 | ) | (3,497 | ) | — | 15,512 | ||||||||||
Interest income (expense), net | 4 | — | (208 | ) | — | (204 | ) | ||||||||||
Foreign currency gain (loss) | (233 | ) | — | 916 | — | 683 | |||||||||||
Other income | 75 | 2 | — | — | 77 | ||||||||||||
Income (loss) before income taxes | 18,904 | (47 | ) | (2,789 | ) | — | 16,068 | ||||||||||
Income tax expense | — | — | 5,740 | — | 5,740 | ||||||||||||
Net income (loss) | $ | 18,904 | $ | (47 | ) | $ | (8,529 | ) | $ | — | $ | 10,328 | |||||
Depreciation, amortization & accretion | $ | 4,336 | $ | 52 | $ | 9 | $ | — | $ | 4,397 | |||||||
Capital expenditures | $ | 2,915 | $ | — | $ | 145 | $ | — | $ | 3,060 | |||||||
Total assets | $ | 222,503 | $ | 87 | $ | 8,141 | $ | — | $ | 230,731 | |||||||
Nine Months Ended September 30, 2014 (in thousands) | Operating | Non- | Corporate | EQ | Total | ||||||||||||
Disposal | Operating | Operations | |||||||||||||||
Facilities | Disposal | ||||||||||||||||
Facilities | |||||||||||||||||
Revenue - Treatment and disposal | $ | 135,746 | $ | 22 | $ | (169 | ) | $ | 37,862 | $ | 173,461 | ||||||
Revenue - Transportation and services | 28,835 | — | (57 | ) | 88,033 | 116,811 | |||||||||||
Total revenue | 164,581 | 22 | (226 | ) | 125,895 | 290,272 | |||||||||||
Direct operating costs | 67,951 | 157 | (225 | ) | 78,055 | 145,938 | |||||||||||
Transportation costs | 29,137 | — | (1 | ) | 15,146 | 44,282 | |||||||||||
Gross profit (loss) | 67,493 | (135 | ) | — | 32,694 | 100,052 | |||||||||||
Selling, general & administrative expense | 8,488 | — | 17,565 | 20,660 | 46,713 | ||||||||||||
Operating income (loss) | 59,005 | (135 | ) | (17,565 | ) | 12,034 | 53,339 | ||||||||||
Interest income (expense), net | 10 | — | (5,268 | ) | (136 | ) | (5,394 | ) | |||||||||
Foreign currency gain (loss) | 396 | — | (1,423 | ) | — | (1,027 | ) | ||||||||||
Other income | 355 | 7 | 1 | 157 | 520 | ||||||||||||
Income (loss) before income taxes | 59,766 | (128 | ) | (24,255 | ) | 12,055 | 47,438 | ||||||||||
Income tax expense | — | — | 17,880 | — | 17,880 | ||||||||||||
Net income (loss) | $ | 59,766 | $ | (128 | ) | $ | (42,135 | ) | $ | 12,055 | $ | 29,558 | |||||
Depreciation, amortization & accretion | $ | 13,470 | $ | 146 | $ | 47 | $ | 10,018 | $ | 23,681 | |||||||
Capital expenditures | $ | 10,102 | $ | 43 | $ | 312 | $ | 7,453 | $ | 17,910 | |||||||
Total assets | $ | 219,783 | $ | 112 | $ | 25,101 | $ | 672,153 | $ | 917,149 | |||||||
Nine Months Ended September 30, 2013 (in thousands) | Operating | Non- | Corporate | EQ | Total | ||||||||||||
Disposal | Operating | Operations | |||||||||||||||
Facilities | Disposal | ||||||||||||||||
Facilities | |||||||||||||||||
Revenue - Treatment and disposal | $ | 117,553 | $ | 16 | $ | — | $ | — | $ | 117,569 | |||||||
Revenue - Transportation and services | 24,197 | — | — | — | 24,197 | ||||||||||||
Total revenue | 141,750 | 16 | — | — | 141,766 | ||||||||||||
Direct operating costs | 61,583 | 162 | — | — | 61,745 | ||||||||||||
Transportation costs | 24,091 | — | — | — | 24,091 | ||||||||||||
Gross profit (loss) | 56,076 | (146 | ) | — | — | 55,930 | |||||||||||
Selling, general & administrative expense | 8,524 | — | 9,829 | — | 18,353 | ||||||||||||
Operating income (loss) | 47,552 | (146 | ) | (9,829 | ) | — | 37,577 | ||||||||||
Interest income (expense), net | 10 | — | (650 | ) | — | (640 | ) | ||||||||||
Foreign currency gain (loss) | 199 | — | (1,647 | ) | — | (1,448 | ) | ||||||||||
Other income | 261 | 7 | — | — | 268 | ||||||||||||
Income (loss) before income taxes | 48,022 | (139 | ) | (12,126 | ) | — | 35,757 | ||||||||||
Income tax expense | — | — | 12,813 | — | 12,813 | ||||||||||||
Net income (loss) | $ | 48,022 | $ | (139 | ) | $ | (24,939 | ) | $ | — | $ | 22,944 | |||||
Depreciation, amortization & accretion | $ | 12,628 | $ | 156 | $ | 27 | $ | — | $ | 12,811 | |||||||
Capital expenditures | $ | 15,330 | $ | — | $ | 260 | $ | — | $ | 15,590 | |||||||
Total assets | $ | 222,503 | $ | 87 | $ | 8,141 | $ | — | $ | 230,731 | |||||||
Summary of revenues by geographic location | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
$s in thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 155,073 | $ | 37,833 | $ | 243,724 | $ | 101,852 | |||||||||
Canada | 15,821 | 15,257 | 46,548 | 39,914 | |||||||||||||
Total revenue | $ | 170,894 | $ | 53,090 | $ | 290,272 | $ | 141,766 | |||||||||
Schedule of long-lived assets by geographic location | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
$s in thousands | 2014 | 2013 | |||||||||||||||
United States | $ | 440,019 | $ | 86,175 | |||||||||||||
Canada | 61,157 | 65,516 | |||||||||||||||
Total long-lived assets | $ | 501,176 | $ | 151,691 | |||||||||||||
GENERAL_Details
GENERAL (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Investments | ' | ' |
Restricted cash and investments | $5,724 | $4,097 |
BUSINESS_COMBINATION_Details
BUSINESS COMBINATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 17, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 17, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | |
EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | EQ | ||||||
Previously Reported | Previously Reported | Adjustments | Permits and licenses | Permits and licenses | Customer relationships | Customer relationships | Tradename | Tradename | Customer backlog | Customer backlog | Non-compete agreements | Non-compete agreements | Internet domain and website | Internet domain and website | Database | Database | |||||||||||||
BUSINESS ACQUISITIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding shares acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to acquire business, net of cash acquired | ' | ' | $465,895,000 | ' | ' | $465,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of term loan which was used to funded acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 415,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration paid and the fair value of assets acquired and liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' | ' | ' | 113,199,000 | 113,199,000 | ' | 113,199,000 | ' | ' | ' | 114,227,000 | -1,028,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | ' | 103,532,000 | 103,532,000 | ' | 103,532,000 | ' | ' | ' | 103,532,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Identifiable intangible assets | ' | ' | ' | ' | ' | ' | 250,900,000 | 250,900,000 | ' | 250,900,000 | ' | ' | ' | 250,900,000 | ' | ' | 119,500,000 | ' | 115,000,000 | ' | 9,900,000 | ' | 3,600,000 | ' | 1,400,000 | ' | 900,000 | ' | 600,000 |
Current liabilities | ' | ' | ' | ' | ' | ' | -57,438,000 | -57,438,000 | ' | -57,438,000 | ' | ' | ' | -56,550,000 | -888,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities | ' | ' | ' | ' | ' | ' | -131,159,000 | -131,159,000 | ' | -131,159,000 | ' | ' | ' | -131,336,000 | 177,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total identifiable net assets | ' | ' | ' | ' | ' | ' | 279,034,000 | 279,034,000 | ' | 279,034,000 | ' | ' | ' | 280,773,000 | -1,739,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 213,359,000 | ' | 213,359,000 | ' | 21,693,000 | ' | 192,633,000 | 192,633,000 | ' | 192,633,000 | ' | ' | ' | 190,894,000 | 1,739,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | ' | 471,667,000 | ' | ' | ' | ' | ' | 471,667,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average amortization period | ' | ' | ' | ' | ' | '29 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '45 years | ' | '15 years | ' | '4 years | ' | '10 years | ' | '1 year | ' | '19 years | ' | '15 years | ' |
Revenue | 170,894,000 | 53,090,000 | 290,272,000 | 141,766,000 | ' | ' | 111,300,000 | 125,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 13,333,000 | 10,328,000 | 29,558,000 | 22,944,000 | ' | ' | 10,500,000 | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related costs included in selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | 307,000 | ' | ' | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro forma combined: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | 170,894,000 | ' | 148,704,000 | 458,091,000 | 381,159,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | $13,333,000 | ' | $9,606,000 | $24,835,000 | $19,246,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings per share - Basic (in dollars per share) | ' | ' | ' | ' | ' | ' | $0.62 | ' | $0.52 | $1.15 | $1.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings per share - Diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | $0.61 | ' | $0.52 | $1.15 | $1.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Balance at the beginning of the period | ($1,707) | ($1,301) | ($1,785) | $628 |
Foreign currency translation gain (loss) in other comprehensive income | -2,156 | 782 | -2,078 | -1,147 |
Balance at the end of the period | ($3,863) | ($519) | ($3,863) | ($519) |
CONCENTRATIONS_AND_CREDIT_RISK1
CONCENTRATIONS AND CREDIT RISK (Details) (One customer) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
Total trade receivables | Total trade receivables | Total revenue | Total revenue | Total revenue | |
Major Customers | Major Customers | Major Customers | |||
CONCENTRATIONS AND CREDIT RISK | ' | ' | ' | ' | ' |
Concentration of risk (as a percent) | 14.00% | 16.00% | 12.00% | 10.00% | 14.00% |
RECEIVABLES_Details
RECEIVABLES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
RECEIVABLES | ' | ' |
Trade | $130,017 | $42,055 |
Unbilled revenue | 23,709 | 1,296 |
Other | 2,652 | 810 |
Total receivables | 156,378 | 44,161 |
Allowance for doubtful accounts | -4,166 | -525 |
Receivables, net | $152,212 | $43,636 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (Recurring, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | $5,724 | $4,097 |
Fixed-income securities | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 3,998 | 4,006 |
Money market funds | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 1,726 | 91 |
Quoted Prices in Active Markets (Level 1) | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 2,126 | 490 |
Quoted Prices in Active Markets (Level 1) | Fixed-income securities | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 400 | 399 |
Quoted Prices in Active Markets (Level 1) | Money market funds | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 1,726 | 91 |
Other Observable Inputs (Level 2) | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | 3,598 | 3,607 |
Other Observable Inputs (Level 2) | Fixed-income securities | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
Assets fair value disclosure | $3,598 | $3,607 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Total property and equipment | $341,877 | ' | $341,877 | ' | $221,540 |
Accumulated depreciation and amortization | -121,559 | ' | -121,559 | ' | -106,681 |
Property and equipment, net | 220,318 | ' | 220,318 | ' | 114,859 |
Depreciation and amortization expense | 8,400 | 3,700 | 16,773 | 10,792 | ' |
Cell development costs | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Total property and equipment | 93,402 | ' | 93,402 | ' | 77,348 |
Land and improvements | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Total property and equipment | 35,359 | ' | 35,359 | ' | 18,073 |
Buildings and improvements | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Total property and equipment | 78,955 | ' | 78,955 | ' | 59,101 |
Railcars | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Total property and equipment | 17,375 | ' | 17,375 | ' | 17,375 |
Vehicles and other equipment | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Total property and equipment | 96,119 | ' | 96,119 | ' | 42,859 |
Construction in progress | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Total property and equipment | $20,667 | ' | $20,667 | ' | $6,784 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Changes in goodwill | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | $21,693,000 | ' | ' |
Additions | ' | ' | 192,633,000 | ' | ' |
Foreign Currency Translation | ' | ' | -967,000 | ' | ' |
Balance at the end of the period | 213,359,000 | ' | 213,359,000 | ' | ' |
Total amortizing intangible assets | 289,309,000 | ' | 289,309,000 | ' | 40,263,000 |
Accumulated amortization | -9,353,000 | ' | -9,353,000 | ' | -4,341,000 |
Total intangible assets, net | 280,858,000 | ' | 280,858,000 | ' | 36,832,000 |
Amortization expense | 4,000,000 | 362,000 | 5,233,000 | 1,092,000 | ' |
Expected future amortization expense of amortizing intangible assets | ' | ' | ' | ' | ' |
Remainder of 2014 | 4,000,000 | ' | 4,000,000 | ' | ' |
2015 | 15,222,000 | ' | 15,222,000 | ' | ' |
2016 | 14,541,000 | ' | 14,541,000 | ' | ' |
2017 | 14,536,000 | ' | 14,536,000 | ' | ' |
2018 | 13,183,000 | ' | 13,183,000 | ' | ' |
Permits and licenses | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Nonamortizing intangible assets | 750,000 | ' | 750,000 | ' | 750,000 |
Tradename | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Nonamortizing intangible assets | 152,000 | ' | 152,000 | ' | 160,000 |
Customer relationships | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Total amortizing intangible assets | 119,823,000 | ' | 119,823,000 | ' | 5,005,000 |
Permits, licenses and lease | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Total amortizing intangible assets | 144,518,000 | ' | 144,518,000 | ' | 26,264,000 |
Technology - Formulae and processes | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Total amortizing intangible assets | 8,145,000 | ' | 8,145,000 | ' | 8,551,000 |
Tradename | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Total amortizing intangible assets | 9,900,000 | ' | 9,900,000 | ' | ' |
Customer backlog | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Total amortizing intangible assets | 3,600,000 | ' | 3,600,000 | ' | ' |
Non-compete agreements | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Total amortizing intangible assets | 1,420,000 | ' | 1,420,000 | ' | 20,000 |
Internet domain and website | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Total amortizing intangible assets | 900,000 | ' | 900,000 | ' | ' |
Database | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Total amortizing intangible assets | 690,000 | ' | 690,000 | ' | 94,000 |
Developed software | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Total amortizing intangible assets | 313,000 | ' | 313,000 | ' | 329,000 |
Operating Disposal Facilities | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 21,693,000 | ' | ' |
Foreign Currency Translation | ' | ' | -967,000 | ' | ' |
Balance at the end of the period | 20,726,000 | ' | 20,726,000 | ' | ' |
EQ Operations | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' |
Additions | ' | ' | 192,633,000 | ' | ' |
Balance at the end of the period | 192,633,000 | ' | 192,633,000 | ' | ' |
Net carrying amount of amortizing intangible assets | $250,900,000 | ' | $250,900,000 | ' | ' |
DEBT_Details
DEBT (Details) (USD $) | 0 Months Ended | 9 Months Ended |
Jun. 17, 2014 | Sep. 30, 2014 | |
Long-term debt | ' | ' |
Term loan | ' | $413,962,000 |
Net discount on term loan | ' | -1,000,000 |
Total debt | ' | 412,962,000 |
Current portion of long-term debt | ' | -4,002,000 |
Long-term debt | ' | 408,960,000 |
Future maturities of long-term debt, excluding the net discount | ' | ' |
2014 | ' | 1,037,000 |
2015 | ' | 4,150,000 |
2016 | ' | 4,150,000 |
2017 | ' | 4,150,000 |
2018 | ' | 4,150,000 |
Thereafter | ' | 396,325,000 |
Total | ' | 413,962,000 |
Credit Agreement | ' | ' |
DEBT | ' | ' |
Period after closing of the credit agreement considered for calculation of prepayment premium | '9 months | ' |
Mandatory prepayments as a percentage of adjusted excess cash flow if entity's total leverage ratio is greater than the specified leverage ratio | 50.00% | ' |
Total leverage ratio | 2.5 | ' |
Mandatory prepayments as a percentage of adjusted excess cash flow if entity's total leverage ratio is equal to or less than the specified leverage ratio | 0.00% | ' |
Credit Agreement | EQ | ' | ' |
DEBT | ' | ' |
Maximum borrowing capacity | 540,000,000 | ' |
Term Loan | ' | ' |
DEBT | ' | ' |
Debt instrument, aggregate annual amortization as a percentage of original principal amount | 1.00% | ' |
Effective interest rate (as a percent) | ' | 3.75% |
Percentage of principal amount of debt instrument for which the Company is required to enter into one or more interest rate hedge agreements | ' | 60.00% |
Amount of debt hedged | ' | 250,000,000 |
Prepayment premium (as a percent) | 1.00% | ' |
Term Loan | Minimum | ' | ' |
DEBT | ' | ' |
Percentage of principal amount of debt instrument for which the Company is required to enter into one or more interest rate hedge agreements | 50.00% | ' |
Term Loan | Base rate | ' | ' |
DEBT | ' | ' |
Percentage points added to the reference rate | 2.00% | ' |
Term Loan | LIBOR | ' | ' |
DEBT | ' | ' |
Percentage points added to the reference rate | 3.00% | ' |
Term Loan | EQ | ' | ' |
DEBT | ' | ' |
Maximum borrowing capacity | 415,000,000 | ' |
Percentage of outstanding shares acquired | 100.00% | ' |
Revolving Line of Credit | ' | ' |
DEBT | ' | ' |
Amount outstanding | ' | 0 |
Commitment fee (as a percent) | 0.50% | ' |
Availability for borrowings under line of credit | ' | 97,800,000 |
Line of credit issued in the form of a standby letters of credit | ' | 27,200,000 |
Revolving Line of Credit | June 30, 2014 through September 30, 2015 | ' | ' |
DEBT | ' | ' |
Maximum consolidated senior secured leverage ratio | 4 | ' |
Revolving Line of Credit | December 31, 2015 through September 30, 2016 | ' | ' |
DEBT | ' | ' |
Maximum consolidated senior secured leverage ratio | 3.75 | ' |
Revolving Line of Credit | December 31, 2016 through September 30, 2017 | ' | ' |
DEBT | ' | ' |
Maximum consolidated senior secured leverage ratio | 3.5 | ' |
Revolving Line of Credit | December 31, 2017 through September 30, 2018 | ' | ' |
DEBT | ' | ' |
Maximum consolidated senior secured leverage ratio | 3.25 | ' |
Revolving Line of Credit | December 31, 2018 and thereafter | ' | ' |
DEBT | ' | ' |
Maximum consolidated senior secured leverage ratio | 3 | ' |
Letter of credit | ' | ' |
DEBT | ' | ' |
Maximum borrowing capacity | 50,000,000 | ' |
CLOSURE_AND_POSTCLOSURE_OBLIGA2
CLOSURE AND POST-CLOSURE OBLIGATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Changes to reported closure and post-closure obligations | ' | ' | ' | ' |
Closure and post-closure obligations, beginning of period | $58,588 | $17,468 | ' | ' |
Liabilities assumed in EQ acquisition | ' | 37,915 | ' | ' |
Accretion expense | 959 | 1,675 | 927 | ' |
Payments | -515 | -879 | ' | ' |
Adjustments | ' | 2,863 | ' | ' |
Foreign Currency translation | -84 | -94 | ' | ' |
Closure and post-closure obligations, end of period | 58,948 | 58,948 | ' | ' |
Less current portion | -5,424 | -5,424 | ' | -949 |
Long-term portion | $53,524 | $53,524 | ' | $16,519 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
INCOME TAXES | ' | ' | ' | ' |
Effective tax rate (as a percent) | 38.70% | 35.70% | 37.70% | 35.80% |
Reduction in unrecognized tax benefits | $424,000 | ' | ' | ' |
Unrecognized tax benefits | 57,000 | ' | 57,000 | ' |
Interest expense related to unrecognized tax benefits | $6,000 | ' | $6,000 | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basic | ' | ' | ' | ' |
Net income | $13,333 | $10,328 | $29,558 | $22,944 |
Weighted average basic shares outstanding | 21,570 | 18,459 | 21,526 | 18,395 |
Earnings per share (in dollars per share) | $0.62 | $0.56 | $1.37 | $1.25 |
Diluted | ' | ' | ' | ' |
Net income | $13,333 | $10,328 | $29,558 | $22,944 |
Weighted average basic shares outstanding | 21,570 | 18,459 | 21,526 | 18,395 |
Dilutive effect of stock options and restricted stock (in shares) | 110 | 74 | 123 | 80 |
Weighted average diluted shares outstanding | 21,680 | 18,533 | 21,649 | 18,475 |
Earnings per share (in dollars per share) | $0.61 | $0.56 | $1.37 | $1.24 |
Anti-dilutive shares excluded from calculation | 78 | 174 | 50 | 197 |
EQUITY_Details
EQUITY (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
EQUITY | ' |
Number of options exercised (in shares) | 115,188 |
Weighted-average exercise price of options exercised (in dollars per share) | $21.52 |
Number of options exercised via share settlement | 46,744 |
Issuance of restricted stock from treasury stock (in shares) | 24,038 |
Average cost (in dollars per share) | $21 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2013 | |
Future minimum lease payments on non-cancellable operating lease acquired from EQ | ' | ' |
2014 | $1,346,000 | ' |
2015 | 5,176,000 | ' |
2016 | 4,358,000 | ' |
2017 | 3,370,000 | ' |
2018 | 1,906,000 | ' |
Thereafter | 849,000 | ' |
Total | 17,005,000 | ' |
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 | -100,000 | 238,000 |
Reduction of estimated liability | $138,000 | ' |
MULTIEMPLOYER_DEFINED_BENEFIT_2
MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | EQ | Operating Engineers Local 324 Pension Fund | Multi-employer defined benefit pension plans | Multi-employer defined benefit pension plans | Multi-employer defined benefit pension plans | Multi-employer defined benefit pension plans | Multi-employer defined benefit pension plans | Multi-employer defined benefit pension plans | Multi-employer defined benefit pension plans |
employee | plan | EQ | EQ | Operating Engineers Local 324 Pension Fund | Operating Engineers Local 324 Pension Fund | Contributions to multi-employer plans not individually significant | Contributions to multi-employer plans not individually significant | ||
EQ | EQ | EQ | EQ | ||||||
Multi-employer defined benefit pension plans | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of multi-employer plans | ' | ' | 7 | ' | ' | ' | ' | ' | ' |
Total contributions made | ' | ' | ' | $1,381 | $1,123 | $1,061 | $874 | $320 | $249 |
Employees under union contracts (as a percent) | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees under expired union contracts | ' | 113 | ' | ' | ' | ' | ' | ' | ' |
OPERATING_SEGMENTS_Details
OPERATING SEGMENTS (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 16, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
segment | ||||||
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Number of reportable segments | 2 | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | $170,894 | $53,090 | $290,272 | $141,766 | ' |
Direct operating costs | ' | 91,939 | 20,902 | 145,938 | 61,745 | ' |
Transportation costs | ' | 26,292 | 10,568 | 44,282 | 24,091 | ' |
Gross profit | ' | 52,663 | 21,620 | 100,052 | 55,930 | ' |
Selling, general & administrative expenses | ' | 25,829 | 6,108 | 46,713 | 18,353 | ' |
Operating income | ' | 26,834 | 15,512 | 53,339 | 37,577 | ' |
Interest income (expense), net | ' | -4,533 | -204 | -5,394 | -640 | ' |
Foreign currency gain (loss) | ' | -830 | 683 | -1,027 | -1,448 | ' |
Other income | ' | 268 | 77 | 520 | 268 | ' |
Income before income taxes | ' | 21,739 | 16,068 | 47,438 | 35,757 | ' |
Income tax expense | ' | 8,406 | 5,740 | 17,880 | 12,813 | ' |
Net income | ' | 13,333 | 10,328 | 29,558 | 22,944 | ' |
Depreciation, amortization & accretion | ' | 13,333 | 4,397 | 23,681 | 12,811 | ' |
Capital expenditures | ' | 9,226 | 3,060 | 17,910 | 15,590 | ' |
Total assets | ' | 917,149 | 230,731 | 917,149 | 230,731 | 300,556 |
Treatment and disposal | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 80,207 | 42,495 | 173,461 | 117,569 | ' |
Transportation and services | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 90,687 | 10,595 | 116,811 | 24,197 | ' |
Operating Segment | Operating Disposal Facilities | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 59,744 | 53,084 | 164,581 | 141,750 | ' |
Direct operating costs | ' | 23,095 | 20,847 | 67,951 | 61,583 | ' |
Transportation costs | ' | 12,609 | 10,568 | 29,137 | 24,091 | ' |
Gross profit | ' | 24,040 | 21,669 | 67,493 | 56,076 | ' |
Selling, general & administrative expenses | ' | 2,972 | 2,611 | 8,488 | 8,524 | ' |
Operating income | ' | 21,068 | 19,058 | 59,005 | 47,552 | ' |
Interest income (expense), net | ' | 3 | 4 | 10 | 10 | ' |
Foreign currency gain (loss) | ' | 410 | -233 | 396 | 199 | ' |
Other income | ' | 124 | 75 | 355 | 261 | ' |
Income before income taxes | ' | 21,605 | 18,904 | 59,766 | 48,022 | ' |
Net income | ' | 21,605 | 18,904 | 59,766 | 48,022 | ' |
Depreciation, amortization & accretion | ' | 4,510 | 4,336 | 13,470 | 12,628 | ' |
Capital expenditures | ' | 2,551 | 2,915 | 10,102 | 15,330 | ' |
Total assets | ' | 219,783 | 222,503 | 219,783 | 222,503 | ' |
Operating Segment | Operating Disposal Facilities | Treatment and disposal | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 47,182 | 42,489 | 135,746 | 117,553 | ' |
Operating Segment | Operating Disposal Facilities | Transportation and services | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 12,562 | 10,595 | 28,835 | 24,197 | ' |
Operating Segment | Non-Operating Disposal Facilities | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 10 | 6 | 22 | 16 | ' |
Direct operating costs | ' | 55 | 55 | 157 | 162 | ' |
Gross profit | ' | -45 | -49 | -135 | -146 | ' |
Operating income | ' | -45 | -49 | -135 | -146 | ' |
Other income | ' | 2 | 2 | 7 | 7 | ' |
Income before income taxes | ' | -43 | -47 | -128 | -139 | ' |
Net income | ' | -43 | -47 | -128 | -139 | ' |
Depreciation, amortization & accretion | ' | 49 | 52 | 146 | 156 | ' |
Capital expenditures | ' | ' | ' | 43 | ' | ' |
Total assets | ' | 112 | 87 | 112 | 87 | ' |
Operating Segment | Non-Operating Disposal Facilities | Treatment and disposal | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 10 | 6 | 22 | 16 | ' |
Operating Segment | EQ Operations | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 111,326 | ' | 125,895 | ' | ' |
Direct operating costs | ' | 68,975 | ' | 78,055 | ' | ' |
Transportation costs | ' | 13,683 | ' | 15,146 | ' | ' |
Gross profit | ' | 28,668 | ' | 32,694 | ' | ' |
Selling, general & administrative expenses | ' | 18,214 | ' | 20,660 | ' | ' |
Operating income | ' | 10,454 | ' | 12,034 | ' | ' |
Interest income (expense), net | ' | -84 | ' | -136 | ' | ' |
Other income | ' | 141 | ' | 157 | ' | ' |
Income before income taxes | ' | 10,511 | ' | 12,055 | ' | ' |
Net income | ' | 10,511 | ' | 12,055 | ' | ' |
Depreciation, amortization & accretion | ' | 8,757 | ' | 10,018 | ' | ' |
Capital expenditures | ' | 6,604 | ' | 7,453 | ' | ' |
Total assets | ' | 672,153 | ' | 672,153 | ' | ' |
Operating Segment | EQ Operations | Treatment and disposal | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 33,154 | ' | 37,862 | ' | ' |
Operating Segment | EQ Operations | Transportation and services | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | 78,172 | ' | 88,033 | ' | ' |
Corporate | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | -186 | ' | -226 | ' | ' |
Direct operating costs | ' | -186 | ' | -225 | ' | ' |
Transportation costs | ' | ' | ' | -1 | ' | ' |
Selling, general & administrative expenses | ' | 4,643 | 3,497 | 17,565 | 9,829 | ' |
Operating income | ' | -4,643 | -3,497 | -17,565 | -9,829 | ' |
Interest income (expense), net | ' | -4,452 | -208 | -5,268 | -650 | ' |
Foreign currency gain (loss) | ' | -1,240 | 916 | -1,423 | -1,647 | ' |
Other income | ' | 1 | ' | 1 | ' | ' |
Income before income taxes | ' | -10,334 | -2,789 | -24,255 | -12,126 | ' |
Income tax expense | ' | 8,406 | 5,740 | 17,880 | 12,813 | ' |
Net income | ' | -18,740 | -8,529 | -42,135 | -24,939 | ' |
Depreciation, amortization & accretion | ' | 17 | 9 | 47 | 27 | ' |
Capital expenditures | ' | 71 | 145 | 312 | 260 | ' |
Total assets | ' | 25,101 | 8,141 | 25,101 | 8,141 | ' |
Corporate | Treatment and disposal | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | -139 | ' | -169 | ' | ' |
Corporate | Transportation and services | ' | ' | ' | ' | ' | ' |
OPERATING SEGMENTS | ' | ' | ' | ' | ' | ' |
Revenue | ' | ($47) | ' | ($57) | ' | ' |
OPERATING_SEGMENTS_Details_2
OPERATING SEGMENTS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Revenue, Property and Equipment and Intangible Assets Outside of the United States | ' | ' | ' | ' | ' |
Total revenue | $170,894 | $53,090 | $290,272 | $141,766 | ' |
Total long- lived assets | 501,176 | ' | 501,176 | ' | 151,691 |
United States | ' | ' | ' | ' | ' |
Revenue, Property and Equipment and Intangible Assets Outside of the United States | ' | ' | ' | ' | ' |
Total revenue | 155,073 | 37,833 | 243,724 | 101,852 | ' |
Total long- lived assets | 440,019 | ' | 440,019 | ' | 86,175 |
Canada | ' | ' | ' | ' | ' |
Revenue, Property and Equipment and Intangible Assets Outside of the United States | ' | ' | ' | ' | ' |
Total revenue | 15,821 | 15,257 | 46,548 | 39,914 | ' |
Total long- lived assets | $61,157 | ' | $61,157 | ' | $65,516 |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT (Details) (USD $) | 9 Months Ended | 0 Months Ended | 1 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Oct. 28, 2014 | Oct. 31, 2014 | Oct. 29, 2014 | |
Subsequent event | Subsequent event | Subsequent event | |||
Interest Rate Swap | |||||
Designated as Hedging Instrument | |||||
LIBOR | |||||
SUBSEQUENT EVENT | ' | ' | ' | ' | ' |
Quarterly dividend declared (in dollars per share) | ' | ' | ' | $0.18 | ' |
Dividend paid in cash | $11,640,000 | $6,645,000 | $3,900,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | 5.17% |
Derivative Liability, Notional Amount | ' | ' | ' | ' | $250,000,000 |