Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 01, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | US ECOLOGY, INC. | |
Entity Central Index Key | 742,126 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ECOL | |
Entity Common Stock, Shares Outstanding | 21,984,776 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 53,303 | $ 27,042 |
Receivables, net | 112,416 | 110,777 |
Prepaid expenses and other current assets | 9,053 | 9,138 |
Income taxes receivable | 2,842 | |
Total current assets | 177,614 | 146,957 |
Property and equipment, net | 232,317 | 234,432 |
Restricted cash and investments | 4,887 | 5,802 |
Intangible assets, net | 216,939 | 222,812 |
Goodwill | 188,479 | 189,373 |
Other assets | 4,427 | 2,700 |
Total assets | 824,663 | 802,076 |
Current Liabilities: | ||
Accounts payable | 17,717 | 14,868 |
Deferred revenue | 10,228 | 8,532 |
Accrued liabilities | 30,404 | 22,888 |
Accrued salaries and benefits | 11,838 | 14,242 |
Income taxes payable | 2,970 | |
Current portion of closure and post-closure obligations | 2,299 | 2,330 |
Total current liabilities | 72,486 | 65,830 |
Long-term closure and post-closure obligations | 75,268 | 73,758 |
Long-term debt | 277,000 | 277,000 |
Other long-term liabilities | 1,811 | 3,828 |
Deferred income taxes, net | 57,798 | 57,583 |
Total liabilities | 484,363 | 477,999 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Common stock $0.01 par value, 50,000 authorized; 21,976 and 21,849 shares issued, respectively | 220 | 218 |
Additional paid-in capital | 180,687 | 177,498 |
Retained earnings | 170,112 | 155,533 |
Treasury stock, at cost, 8 and 3 shares, respectively | (370) | (68) |
Accumulated other comprehensive loss | (10,349) | (9,104) |
Total stockholders’ equity | 340,300 | 324,077 |
Total liabilities and stockholders’ equity | $ 824,663 | $ 802,076 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
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 | 21,976 | 21,849 |
Treasury stock, shares | 8 | 3 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 136,912 | $ 126,057 | $ 256,971 | $ 236,291 |
Direct operating costs | 95,464 | 90,161 | 179,852 | 168,522 |
Gross profit | 41,448 | 35,896 | 77,119 | 67,769 |
Selling, general and administrative expenses | 21,156 | 20,000 | 43,388 | 39,714 |
Operating income | 20,292 | 15,896 | 33,731 | 28,055 |
Other income (expense): | ||||
Interest income | 39 | 21 | 63 | 31 |
Interest expense | (2,907) | (8,474) | (5,716) | (12,604) |
Foreign currency gain (loss) | (139) | 158 | (153) | 246 |
Other | 193 | 166 | 2,316 | 303 |
Total other expense | (2,814) | (8,129) | (3,490) | (12,024) |
Income before income taxes | 17,478 | 7,767 | 30,241 | 16,031 |
Income tax expense | 4,258 | 2,718 | 7,778 | 5,797 |
Net income | $ 13,220 | $ 5,049 | $ 22,463 | $ 10,234 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.60 | $ 0.23 | $ 1.03 | $ 0.47 |
Diluted (in dollars per share) | $ 0.60 | $ 0.23 | $ 1.02 | $ 0.47 |
Shares used in earnings per share calculation: | ||||
Basic (in shares) | 21,867 | 21,751 | 21,835 | 21,738 |
Diluted (in shares) | 22,024 | 21,890 | 21,991 | 21,874 |
Dividends paid per share (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.36 | $ 0.36 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 13,220 | $ 5,049 | $ 22,463 | $ 10,234 |
Other comprehensive income (loss): | ||||
Foreign currency translation gain (loss) | (1,597) | 1,552 | (3,468) | 1,991 |
Net changes in interest rate hedge, net of taxes of $167, $(105), $592 and $182, respectively | 628 | (195) | 2,223 | 339 |
Comprehensive income, net of tax | $ 12,251 | $ 6,406 | $ 21,218 | $ 12,564 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other comprehensive income (loss): | ||||
Net changes in interest rate hedge, tax | $ 167 | $ (105) | $ 592 | $ 182 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 22,463 | $ 10,234 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 13,649 | 13,621 |
Amortization of intangible assets | 4,598 | 5,286 |
Accretion of closure and post-closure obligations | 2,155 | 2,155 |
Unrealized foreign currency loss (gain) | 1,222 | (425) |
Deferred income taxes | 27 | (1,379) |
Share-based compensation expense | 2,079 | 1,959 |
Net loss on disposition of assets | 11 | 245 |
Amortization and write-off of debt issuance costs | 405 | 5,604 |
Amortization and write-off of debt discount | 667 | |
Changes in assets and liabilities: | ||
Receivables | (2,087) | (14,486) |
Income taxes receivable | (2,851) | 2,020 |
Other assets | 88 | (4,038) |
Accounts payable and accrued liabilities | 10,286 | 5,819 |
Deferred revenue | 1,770 | 4,770 |
Accrued salaries and benefits | (2,317) | (429) |
Income taxes payable | (2,905) | (115) |
Closure and post-closure obligations | (583) | (686) |
Net cash provided by operating activities | 48,010 | 30,822 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (14,960) | (17,552) |
Purchases of restricted investments | (498) | (400) |
Proceeds from sale of restricted investments | 431 | 406 |
Proceeds from sale of property and equipment | 141 | 86 |
Net cash used in investing activities | (14,886) | (17,460) |
Cash flows from financing activities: | ||
Payments on long-term debt | (287,040) | |
Proceeds from long-term debt | 281,000 | |
Payments on short-term borrowings | (13,438) | |
Proceeds from short-term borrowings | 11,260 | |
Dividends paid | (7,884) | (7,849) |
Proceeds from exercise of stock options | 1,471 | 609 |
Payment of equipment financing obligations | (217) | (176) |
Other | (312) | (77) |
Net cash used in financing activities | (6,942) | (15,711) |
Effect of foreign exchange rate changes on cash | (902) | 260 |
Increase in Cash and cash equivalents and restricted cash | 25,280 | (2,089) |
Cash and cash equivalents and restricted cash at beginning of period | 28,799 | 8,722 |
Cash and cash equivalents and restricted cash at end of period | 54,079 | 6,633 |
Supplemental Disclosures: | ||
Income taxes paid, net of receipts | 13,625 | 5,804 |
Interest paid | 5,288 | 6,431 |
Non-cash investing and financing activities: | ||
Capital expenditures in accounts payable | 493 | 1,991 |
Restricted stock issued from treasury shares | $ 11 | $ 113 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS - (Restricted cash and investments) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Reconciliation of Cash and cash equivalents and restricted cash | |||
Cash and cash equivalents at beginning of period | $ 27,042 | $ 4,902 | $ 7,015 |
Restricted cash at beginning of period | 1,757 | 1,731 | 1,707 |
Cash and cash equivalents and restricted cash at beginning of period | 28,799 | 6,633 | 8,722 |
Cash and cash equivalents at end of period | 53,303 | 27,042 | 4,902 |
Restricted cash at end of period | 776 | 1,757 | 1,731 |
Cash and cash equivalents and restricted cash at end of period | $ 54,079 | $ 28,799 | $ 6,633 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2018 | |
GENERAL | |
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 inter-company 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 (consisting only of normal recurring 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, 2017. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the entire year ending December 31, 2018. The Company’s consolidated balance sheet as of December 31, 2017 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 GAAP 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 consolidated 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. Recently Issued Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) . This ASU amends the guidance in Accounting Standards Codification (“ASC”) 220 on the reclassification of certain tax effects from accumulated other comprehensive income. The primary purpose of the ASU is to address industry concerns related to the application of ASC 740 to certain provisions of the new tax reform legislation also known as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) . While this update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, early adoption is permitted, including adoption in any interim period. The update shall be applied either (1) retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized or (2) as of the beginning of the period of adoption. The Company plans to adopt this pronouncement in the second half of 2018 and does not expect the impact on its consolidated financial statements to be material. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Because of the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the Tax Act and the application of ASC 740. Under GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). Our selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Whether we expect to have future U.S. inclusions in taxable income related to GILTI depends on not only our current structure and estimated future results of global operations but also our intent and ability to modify our structure and/or our business. We are not yet able to reasonably estimate the effect of this provision of the Tax Act. Therefore, we have not made any adjustments related to potential GILTI tax in our consolidated financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI. On December 22, 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Where the Company was able to make reasonable estimates of the effects of elements for which the analysis is not yet complete, the Company has recorded provisional amounts. For the six months ended June 30, 2018, the Company did not obtain additional information affecting the provisional amounts initially recorded. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). This ASU amends the guidance in ASC 815 to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact ASU 2017-12 will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18 , Restricted Cash (Topic 230) . This ASU amends the guidance in ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. ASU 2016-18 is based on the Emerging Issues Task Force’s consensuses reached on Issue 16-A. The guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted ASU 2016-18 as of January 1, 2018 using the retrospective adoption method. The impact of retrospective application of ASU 2016-18 is immaterial, as restricted cash activity for the six months ended June 30, 2017 was not significant. Restricted cash is now included with Cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts presented in the Company’s consolidated statements of cash flows. In August 2016, the FASB issued ASU No. 2016-15, Statements of Cash Flows (Topic 230) . This ASU amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted ASU 2016-15 as of January 1, 2018 using the retrospective adoption method. The only provision applicable to the Company relates to the treatment of proceeds from the settlement of insurance claims in connection with damaged property and equipment. There was no related impact on the classification of insurance settlement proceeds in the Company’s consolidated statements of cash flows for the six months ended June 30, 2018 and 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU significantly changes the accounting model used by lessees to account for leases, requiring that all material leases be presented on the balance sheet. Lessees will recognize substantially all leases on the balance sheet as a right-of-use asset and a corresponding lease liability. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. The guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Under ASU 2016-02, upon adoption, the effects of the standard must be applied using the modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11 which provides a practical expedient that allows companies to use an optional transition method. Under the optional transition method, a cumulative adjustment to retained earnings during the period of adoption is recorded and prior periods would not require restatement. The Company is evaluating this update and has not yet determined if it will elect to use this optional transition method. We are currently assessing the impact the adoption of ASU 2016-02 may have on our consolidated financial position, results of operations and cash flows. The Company plans to adopt this guidance effective January 1, 2019. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which provides guidance for revenue recognition. The ASU’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. See Note 2 for additional information. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2018 | |
REVENUES | |
REVENUES | NOTE 2. REVENUES Adoption of ASC Topic 606, “Revenue from Contracts with Customers” As of January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Revenue Recognition (Topic 605). Adoption of the guidance did not materially affect the timing or amount of revenue recognized, and no cumulative effect adjustment was recognized as a result of initially applying Topic 606. Revenue Recognition Revenues are recognized when control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We recognize revenue from three primary sources: 1) waste treatment, recycling and disposal services, 2) field and industrial waste management services, and 3) waste transportation services. Our waste treatment and disposal customers are legally obligated to properly treat and dispose of their waste in accordance with local, state, and federal laws and regulations. As our customers do not possess the resources to properly treat and dispose of their waste independently, they contract with the Company to perform the services. Waste treatment, recycling, and disposal revenue results primarily from fixed fees charged to customers for treatment and/or disposal or recycling of specified wastes. Waste treatment, recycling, and disposal revenue is generally charged on a per-ton or per-yard basis based on contracted prices and is recognized over time as the services are performed. Our treatment and disposal services are generally performed as the waste is received and considered complete upon final disposal. Field and industrial waste management services revenue results primarily from specialty onsite services such as high-pressure cleaning, tank cleaning, decontamination, remediation, transportation, spill cleanup and emergency response at refineries, chemical plants, steel and automotive plants, and other government, commercial and industrial facilities. We also provide hazardous waste packaging and collection services and total waste management solutions at customer sites and through our 10-day transfer facilities. These services are provided based on purchase orders or agreements with the customer and include prices based upon daily, hourly or job rates for equipment, materials and personnel. Generally, the pricing in these types of contracts is fixed, but the quantity of services to be provided during the contract term is variable and revenues are recognized over the term of the agreements or as services are performed. As we have a right to consideration from our customers in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date, we have applied the practical expedient to recognize revenue in the amount to which we have the right to invoice. Revenue is recognized on contracts with retainage when services have been performed and it is probable that a significant reversal in the amount of cumulative revenue recognized on the contracts will not occur . Transportation and logistics revenue results from delivering customer waste to a disposal facility for treatment and/or disposal or recycling. Transportation services are generally not provided on a stand-alone basis and instead are bundled with other Company services. However, in some instances we provide transportation and logistics services for shipment of waste from cleanup sites to disposal facilities operated by other companies. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customer or using expected cost plus margin. Transportation revenue is recognized over time as the waste is transported. Taxes and fees collected from customers concurrent with revenue-producing transactions to be remitted to governmental authorities are excluded from revenue. Our operations are managed in two reportable segments, Environmental Services and Field & Industrial Services, reflecting our internal reporting structure and nature of services offered. The operations not managed through our two reportable segments are recorded as Corporate. See Note 15 for additional information. The following table presents our revenue disaggregated by our reportable segments and service lines: Three Months Ended June 30, 2018 Field & Environmental Industrial $s in thousands Services Services Total Treatment & Disposal Revenue (1) $ 77,978 $ 3,166 $ 81,144 Services Revenue: Transportation and Logistics (2) 20,982 7,551 28,533 Industrial Cleaning (3) — 4,157 4,157 Technical Services (4) — 20,780 20,780 Remediation (5) — 1,325 1,325 Other (6) — 973 973 Revenue $ 98,960 $ 37,952 $ 136,912 Three Months Ended June 30, 2017 Field & Environmental Industrial $s in thousands Services Services Total Treatment & Disposal Revenue (1) $ 71,238 $ 2,901 $ 74,139 Services Revenue: Transportation and Logistics (2) 18,353 4,943 23,296 Industrial Cleaning (3) — 4,705 4,705 Technical Services (4) — 19,802 19,802 Remediation (5) — 3,217 3,217 Other (6) — 898 898 Revenue $ 89,591 $ 36,466 $ 126,057 Six Months Ended June 30, 2018 Field & Environmental Industrial $s in thousands Services Services Total Treatment & Disposal Revenue (1) $ 150,279 $ 5,903 $ 156,182 Services Revenue: Transportation and Logistics (2) 35,152 13,248 48,400 Industrial Cleaning (3) — 7,662 7,662 Technical Services (4) — 41,185 41,185 Remediation (5) — 1,678 1,678 Other (6) — 1,864 1,864 Revenue $ 185,431 $ 71,540 $ 256,971 Six Months Ended June 30, 2017 Field & Environmental Industrial $s in thousands Services Services Total Treatment & Disposal Revenue (1) $ 139,941 $ 5,538 $ 145,479 Services Revenue: Transportation and Logistics (2) 30,953 10,263 41,216 Industrial Cleaning (3) — 8,924 8,924 Technical Services (4) — 35,464 35,464 Remediation (5) — 3,823 3,823 Other (6) — 1,385 1,385 Revenue $ 170,894 $ 65,397 $ 236,291 (1) We categorize our treatment and disposal revenue as either “Base Business” or “Event Business” based on the underlying nature of the revenue source. We define Event Business as non-recurring projects that are expected to equal or exceed 1,000 tons, with Base Business defined as all other business not meeting the definition of Event Business. For the three months ended June 30, 2018 and 2017, 19% and 23%, respectively, of our treatment and disposal revenue was derived from Event Business projects. Base Business revenue accounted for 81% and 77% of our treatment and disposal revenue for the three months ended June 30, 2018 and 2017, respectively. For the six months ended June 30, 2018 and 2017, 18% and 19%, respectively, of our treatment and disposal revenue was derived from Event Business projects. Base Business revenue accounted for 82% and 81% of our treatment and disposal revenue for the six months ended June 30, 2018 and 2017, respectively. (2) Includes such services as collection and transportation of non-hazardous and hazardous waste. (3) Includes such services as industrial cleaning and maintenance for refineries, chemical plants, steel and automotive plants, and refinery services such as tank cleaning and temporary storage. (4) Includes such services as total waste management programs, retail services, laboratory packing, less-than-truck-load service and household hazardous waste collection. Contracts for Technical Services may extend beyond one year and a portion of the transactions price can be fixed. (5) Includes such services as site assessment, onsite treatment, project management and remedial action planning and execution. Contracts for Remediation may extend beyond one year and a portion of the transaction price can be fixed. (6) Includes such services as emergency response and marine. We provide services in the United States and Canada. The following table presents our revenue disaggregated by our reportable segments and geographic location where the underlying services were performed: Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Field & Field & Environmental Industrial Environmental Industrial $s in thousands Services Services Total Services Services Total United States $ 84,917 $ 37,952 $ 122,869 $ 74,297 $ 36,466 $ 110,763 Canada 14,043 — 14,043 15,294 — 15,294 Total revenue $ 98,960 $ 37,952 $ 136,912 $ 89,591 $ 36,466 $ 126,057 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Field & Field & Environmental Industrial Environmental Industrial $s in thousands Services Services Total Services Services Total United States $ 159,903 $ 71,540 $ 231,443 $ 141,558 $ 65,397 $ 206,955 Canada 25,528 — 25,528 29,336 — 29,336 Total revenue $ 185,431 $ 71,540 $ 256,971 $ 170,894 $ 65,397 $ 236,291 Deferred Revenue We record deferred revenue when cash payments are received, or advance billings are charged, prior to performance of services. Deferred revenue includes waste that has been received but not yet treated or disposed, and is recognized when services are performed. During the three and six months ended June 30, 2018, we recognized $1.5 million and $7.8 million of revenue, respectively, that was included in the deferred revenue balance at the beginning of the year. Receivables Our receivables include invoiced and unbilled amounts where the Company has an unconditional right to payment. Principal versus Agent Considerations The Company commonly contracts with third-parties to perform certain waste-related services that we have promised in our customer contracts. We consider ourselves the principal in these arrangements as we direct the timing, nature and pricing of the services ultimately provided by the third-party to the customer. Costs to obtain a contract The Company pays sales commissions to employees, which qualify as costs to obtain a contract. Sales commissions are expensed as incurred as the commissions are earned by the employee and paid by the Company over time as the related revenue is recognized. Practical Expedients and Optional Exemptions Our payment terms may vary based on type of service or customer; however, we do not adjust the promised amount of consideration in our contracts for the time value of money as payment terms extended to our customers do not exceed one year and are not considered a significant financing component in our contracts. We do not disclose the value of unsatisfied performance obligations as contracts with an original expected length of more than one year and contracts for which we do not recognize revenue at the amount to which we have the right to invoice for services performed is insignificant and the aggregate amount of fixed consideration allocated to unsatisfied performance obligations is not material. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) (“AOCI”) consisted of the following: Foreign Unrealized Gain Currency (Loss) on Interest $s in thousands Translation Rate Hedge Total Balance at December 31, 2017 $ (8,603) $ (501) $ (9,104) Other comprehensive income before reclassifications, net of tax (3,468) 1,913 (1,555) Amounts reclassified out of AOCI, net of tax (1) — 310 310 Other comprehensive income, net (3,468) 2,223 (1,245) Balance at June 30, 2018 $ (12,071) $ 1,722 $ (10,349) (1) Before-tax reclassifications of $ 119,000 ($94,000 after-tax) and $392,000 ( $310,000 after-tax) for the three and six months ended June 30, 2018, respectively, and before-tax reclassifications of $603,000 ($392,000 after-tax) and $1.3 million ($873,000 after-tax) for the three and six months ended June 30, 2017, were included in Interest expense in the Company’s consolidated statements of operations. Amounts relate to the Company’s interest rate swap which is designated as a cash flow hedge. Changes in fair value of the swap recognized in AOCI are reclassified to interest expense when hedged interest payments on the underlying long-term debt are made. Amounts in AOCI expected to be recognized in interest expense over the next 12 months total approximately $ 477,000 ($377,000 after-tax). |
CONCENTRATIONS AND CREDIT RISK
CONCENTRATIONS AND CREDIT RISK | 6 Months Ended |
Jun. 30, 2018 | |
CONCENTRATIONS AND CREDIT RISK | |
CONCENTRATIONS AND CREDIT RISK | NOTE 4. CONCENTRATIONS AND CREDIT RISK Major Customers No customer accounted for more than 10% of total revenue for the three or six months ended June 30, 2018 or the three or six months ended June 30, 2017. No customer accounted for more than 10% of total trade receivables as of June 30, 2018 or December 31, 2017. Credit Risk Concentration We maintain most of our cash and cash equivalents with nationally recognized financial institutions. 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 | 6 Months Ended |
Jun. 30, 2018 | |
RECEIVABLES | |
RECEIVABLES | NOTE 5. RECEIVABLES Receivables consisted of the following: June 30, December 31, $s in thousands 2018 2017 Trade $ 93,217 $ 96,760 Unbilled revenue 21,032 16,176 Other 1,278 637 Total receivables 115,527 113,573 Allowance for doubtful accounts (3,111) Receivables, net $ 112,416 $ 110,777 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2018 | |
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, debt and interest rate swap agreements. The estimated fair value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying value due to the short-term nature of these instruments. The Company estimates the fair value of its variable-rate debt using Level 2 inputs, such as interest rates, related terms and maturities of similar obligations. At June 30, 2018, the carrying value of the Company’s variable-rate debt approximates fair value due to the short-term nature of the interest rates. The Company’s assets and liabilities measured at fair value on a recurring basis consisted of the following: June 30, 2018 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) $ 1,380 $ 2,731 $ — $ 4,111 Money market funds (2) 776 — — 776 Interest rate swap agreement (3) — 2,180 — 2,180 Total $ 2,156 $ 4,911 $ — $ 7,067 December 31, 2017 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) $ 1,396 $ 2,649 $ — $ 4,045 Money market funds (2) 1,757 — — 1,757 Total $ 3,153 $ 2,649 $ — $ 5,802 Liabilities: Interest rate swap agreement (3) $ — $ 638 $ — $ 638 Total $ — $ 638 $ — $ 638 (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. Money market funds are considered restricted cash for purposes of reconciling the beginning-of-period and end-of-period amounts presented in the Company’s consolidated statements of cash flows. (3) In order to manage interest rate exposure, we entered into an interest rate swap agreement in October 2014 that effectively converts a portion of our variable-rate debt to a fixed interest rate. The swap is designated as a cash flow hedge, with gains and losses deferred in other comprehensive income to be recognized as an adjustment to interest expense in the same period that the hedged interest payments affect earnings. The interest rate swap has an effective date of December 31, 2014 with an initial notional amount of $250.0 million. The fair value of the interest rate swap agreement represents the difference in the present value of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the period. We calculate the fair value of the interest rate swap agreement quarterly based on the quoted market price for the same or similar financial instruments. The fair value of the interest rate swap agreement is included in Other assets and Other long-term liabilities in the Company’s consolidated balance sheet as of June 30, 2018 and December 31, 2017, respectively. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2018 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | NOTE 7. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: June 30, December 31, $s in thousands 2018 2017 Cell development costs $ 143,378 $ 142,144 Land and improvements 36,932 36,499 Buildings and improvements 87,416 87,034 Railcars 17,299 17,299 Vehicles and other equipment 128,931 122,697 Construction in progress 23,895 23,334 Total property and equipment 437,851 429,007 Accumulated depreciation and amortization (205,534) (194,575) Property and equipment, net $ 232,317 $ 234,432 Depreciation and amortization expense was $7.0 million for each of the three months ended June 30, 2018 and 2017. Depreciation and amortization expense was $13.6 million for each of the six months ended June 30, 2018 and 2017. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 8. GOODWILL AND INTANGIBLE ASSETS Changes in goodwill for the six months ended June 30, 2018 consisted of the following: Field & Environmental Industrial Services Services Accumulated Accumulated $s in thousands Gross Impairment Gross Impairment Total Balance at December 31, 2017 $ 150,699 $ (5,457) $ 44,131 $ — $ 189,373 Foreign currency translation (894) — — — (894) Balance at June 30, 2018 $ 149,805 $ (5,457) $ 44,131 $ — $ 188,479 Intangible assets, net consisted of the following: June 30, 2018 December 31, 2017 Accumulated Accumulated $s in thousands Cost Amortization Net Cost Amortization Net Amortizing intangible assets: Permits, licenses and lease $ 110,726 $ (13,540) $ 97,186 $ $ $ Customer relationships 84,780 (22,892) 61,888 Technology - formulae and processes 6,895 (1,661) 5,234 Customer backlog 3,652 (1,474) 2,178 Tradename 4,318 (4,318) — — Developed software 2,912 (1,452) 1,460 Non-compete agreements 747 (747) — — Internet domain and website 540 (115) 425 Database 389 (160) 229 Total amortizing intangible assets 214,959 (46,359) 168,600 216,622 (42,186) Nonamortizing intangible assets: Permits and licenses 48,210 — 48,210 48,241 — 48,241 Tradename 129 — 129 135 — 135 Total intangible assets $ 263,298 $ (46,359) $ 216,939 $ 264,998 $ (42,186) $ 222,812 Amortization expense for the three months ended June 30, 2018 and 2017 was $2.3 million and $2.6 million, respectively. Amortization expense for the six months ended June 30, 2018 and 2017 was $4.6 million and $5.3 million, respectively. Foreign intangible asset carrying amounts are affected by foreign currency translation. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2018 | |
DEBT | |
DEBT | NOTE 9. DEBT Long-term debt consisted of the following: June 30, December 31, $s in thousands 2018 2017 Revolving credit facility $ 277,000 $ 277,000 Long-term debt $ $ Credit Agreement On April 18, 2017, the Company entered into a senior secured credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent for the lenders, swingline lender and issuing lender, and Bank of America, N.A., as an issuing lender, that provides for a $500.0 million, five-year revolving credit facility (the “Revolving Credit Facility”), including a $75.0 million sublimit for the issuance of standby letters of credit and a $25.0 million sublimit for the issuance of swingline loans used to fund short-term working capital requirements. The Credit Agreement also contains an accordion feature whereby the Company may request up to $200.0 million of additional funds through an increase to the Revolving Credit Facility, through incremental term loans, or some combination thereof. The Revolving Credit Facility provides up to $500.0 million of revolving credit loans or letters of credit with the use of proceeds restricted solely for working capital and other general corporate purposes (including acquisitions and capital expenditures). Under the Revolving Credit Facility, revolving credit 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 consolidated earnings before interest, taxes, depreciation and amortization (as defined in the Credit Agreement), as set forth in the table below: Total Net Leverage Ratio LIBOR Rate Loans Interest Margin Base Rate Loans Interest Margin Equal to or greater than 3.25 to 1.00 2.00% 1.00% Equal to or greater than 2.50 to 1.00, but less than 3.25 to 1.00 1.75% 0.75% Equal to or greater than 1.75 to 1.00, but less than 2.50 to 1.00 1.50% 0.50% Equal to or greater than 1.00 to 1.00, but less than 1.75 to 1.00 1.25% 0.25% Less than 1.00 to 1.00 1.00% 0.00% At June 30, 2018, the effective interest rate on the Revolving Credit Facility, after giving effect to the impact of our interest rate swap, was 3.46%. Interest only payments are due either quarterly or on the last day of any interest period, as applicable. In October 2014, the Company entered into an interest rate swap agreement, effectively fixing the interest rate on $180.0 million, or 65%, of the Revolving Credit Facility borrowings as of June 30, 2018. The Company is required to pay a commitment fee ranging from 0.175% to 0.35% on the average daily unused portion of the Revolving Credit Facility, with such commitment fee to be reduced based upon the Company’s total net leverage ratio (as defined in the Credit Agreement). The maximum letter of credit capacity under the Revolving Credit Facility is $75.0 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. At June 30, 2018, there were $277.0 million of revolving credit loans outstanding on the Revolving Credit Facility. These revolving credit loans are due upon the earliest to occur of (a) April 18, 2022 (or, with respect to any lender, such later date as requested by us and accepted by such lender), (b) the date of termination of the entire revolving credit commitment (as defined in the Credit Agreement) by us, and (c) the date of termination of the revolving credit commitment and are presented as long-term debt in the consolidated balance sheets. The Company has entered into a sweep arrangement whereby day-to-day cash requirements in excess of available cash balances are advanced to the Company on an as-needed basis with repayments of these advances automatically made from subsequent deposits to our cash operating accounts (the “Sweep Arrangement”). Total advances outstanding under the Sweep Arrangement are subject to the $25.0 million swingline loan sublimit under the Revolving Credit Facility. The Company’s revolving credit loans outstanding under the Revolving Credit Agreement are not subject to repayment through the Sweep Arrangement. As of June 30, 2018, there were no amounts outstanding subject to the Sweep Arrangement. As of June 30, 2018, the availability under the Revolving Credit Facility was $216.7 million with $6.3 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 and other assurance obligations. The Company may at any time and from time to time prepay revolving credit loans and swingline loans, in whole or in part, without premium or penalty, subject to the obligation to indemnify each of the lenders against any actual loss or expense (including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain a LIBOR rate loan (as defined in the Credit Agreement) or from fees payable to terminate the deposits from which such funds were obtained) with respect to the early termination of any LIBOR rate loan. The Credit Agreement provides for mandatory prepayment at any time if the revolving credit outstanding exceeds the revolving credit commitment (as such terms are defined in the Credit Agreement), in an amount equal to such excess. Subject to certain exceptions, the Credit Agreement provides for mandatory prepayment upon certain asset dispositions, casualty events and issuances of indebtedness. Pursuant to (i) an unconditional guarantee agreement and (ii) a collateral agreement, each entered into by the Company and its domestic subsidiaries on April 18, 2017, the Company’s obligations under the Credit Agreement are (or will be) 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 are secured by substantially all of the assets of the Company and the Company’s existing and certain future domestic subsidiaries (subject to certain exclusions), including 100% of the equity interests of the Company’s domestic subsidiaries and 65% of the voting equity interests of the Company’s directly owned foreign subsidiaries (and 100% of the non-voting equity interests of the Company’s directly owned foreign subsidiaries). 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. Upon the occurrence of an event of default (as defined in the Credit Agreement), among other things, amounts outstanding under the Credit Agreement may be accelerated and the commitments may be terminated. The Credit Agreement also contains financial maintenance covenants, a maximum consolidated total net leverage ratio and a consolidated interest coverage ratio (as such terms are defined in the Credit Agreement). Our consolidated total net leverage ratio as of the last day of any fiscal quarter, commencing with the fiscal quarter ending June 30, 2017, may not exceed 3.50 to 1.00, subject to certain exceptions. Our consolidated interest coverage ratio as of the last day of any fiscal quarter, commencing with the fiscal quarter ending June 30, 2017, may not be less than 3.00 to 1.00. At June 30, 2018, we were in compliance with all of the financial covenants in the Credit Agreement. |
CLOSURE AND POST-CLOSURE OBLIGA
CLOSURE AND POST-CLOSURE OBLIGATIONS | 6 Months Ended |
Jun. 30, 2018 | |
CLOSURE AND POST-CLOSURE OBLIGATIONS | |
CLOSURE AND POST-CLOSURE OBLIGATIONS | NOTE 10. CLOSURE AND POST-CLOSURE OBLIGATIONS Our accrued closure and post-closure liability represents the expected future costs, including corrective actions, associated with closure and post-closure of our operating and non-operating disposal facilities. We record the fair value of our closure and post-closure obligations as a liability in the period in which the regulatory obligation to retire a specific asset is triggered. For our individual landfill cells, the required closure and post-closure obligations under the terms of our permits and our intended operation of the landfill cell are triggered and recorded when the cell is placed into service and waste is initially disposed in the landfill cell. The fair value is based on the total estimated costs to close the landfill cell and perform post-closure activities once the landfill cell has reached capacity and is no longer accepting waste. 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 closure and post-closure obligations consisted of the following: Three Months Ended Six Months Ended $s in thousands June 30, 2018 June 30, 2018 Closure and post-closure obligations, beginning of period $ 76,823 $ 76,088 Accretion expense 1,081 2,155 Payments (295) (582) Foreign currency translation (42) (94) Closure and post-closure obligations, end of period 77,567 77,567 Less current portion (2,299) (2,299) Long-term portion $ 75,268 $ 75,268 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
INCOME TAXES | |
INCOME TAXES | NOTE 11. INCOME TAXES Our effective tax rate for the three months ended June 30, 2018 was 24.4%, down from 35.0% for the three months ended June 30, 2017. Our effective tax rate for the six months ended June 30, 2018 was 25.7%, down from 36.2% for the six months ended June 30, 2017. The decrease for the three and six months ended June 30, 2018 compared with the three and six months ended June 30, 2017 was primarily the result of the impact of the Tax Act, enacted on December 22, 2017 by the U.S. government which reduced the federal corporate tax rate to 21% from the existing maximum rate of 35%. The decrease in the effective tax rate for the three and six months ended June 30, 2018 also relates to the impact of discrete events including the recognition of excess tax benefits related to employee stock compensation as a result of the adoption of ASU 2016-09, Compensation - Stock Compensation (Topic 718), on January 1, 2017. On December 22, 2017, Staff Accounting Bulletin No. 118 was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. For the six months ended June 30, 2018, the Company did not obtain additional information affecting the provisional amounts initially recorded based upon the best available interpretation of the Tax Act and may change as the Company receives additional clarification and implementation guidance. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. We file a consolidated U.S. federal income tax return with the Internal Revenue Service (“IRS”) as well as tax returns in various states, Canada, and Mexico. The Company is subject to examination by the IRS for tax years 2014 through 2017. EQ Holdings, Inc. is subject to examination by the IRS for pre-acquisition tax year 2014. We may be subject to examinations by various state and local taxing jurisdictions for tax years 2013 through 2017. The Company is not aware of any significant foreign jurisdiction audits underway. The tax years 2013 through 2017 remain subject to examination by foreign jurisdictions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 12. EARNINGS PER SHARE Three Months Ended June 30, 2018 2017 $s and shares in thousands, except per share amounts Basic Diluted Basic Diluted Net income $ 13,220 $ 13,220 $ 5,049 $ 5,049 Weighted average basic shares outstanding 21,867 21,867 21,751 21,751 Dilutive effect of stock-based awards 157 139 Weighted average diluted shares outstanding 22,024 21,890 Earnings per share $ 0.60 $ 0.60 $ 0.23 $ 0.23 Anti-dilutive shares excluded from calculation 58 115 Six Months Ended June 30, 2018 2017 $s and shares in thousands, except per share amounts Basic Diluted Basic Diluted Net income $ 22,463 $ 22,463 $ 10,234 $ 10,234 Weighted average basic shares outstanding 21,835 21,835 21,738 21,738 Dilutive effect of stock-based awards 156 136 Weighted average diluted shares outstanding 21,991 21,874 Earnings per share $ 1.03 $ 1.02 $ 0.47 $ 0.47 Anti-dilutive shares excluded from calculation 76 113 |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2018 | |
EQUITY | |
EQUITY | NOTE 13. EQUITY Stock Repurchase Program On June 1, 2016, the Company’s Board of Directors authorized the repurchase of $25.0 million of the Company’s outstanding common stock. Repurchases may be made from time to time in the open market or through privately negotiated transactions. The timing of any repurchases will be based upon prevailing market conditions and other factors. The Company did not repurchase any shares of common stock under the repurchase program during the three or six months ended June 30, 2018. On May 29, 2018 the repurchase program was extended and will remain in effect until June 6, 2020, unless further extended by our Board of Directors. Omnibus Incentive Plan On May 27, 2015, our stockholders approved the Omnibus Incentive Plan (“Omnibus Plan”), which was approved by our Board of Directors on April 7, 2015. The Omnibus Plan was developed to provide additional incentives through equity ownership in US Ecology and, as a result, encourage employees and directors to contribute to our success. The Omnibus Plan provides, among other things, the ability for the Company to grant restricted stock, performance stock, options, stock appreciation rights, restricted stock units (“RSUs”), performance stock units (“PSUs”) and other stock-based awards or cash awards to officers, employees, consultants and non-employee directors. Subsequent to the approval of the Omnibus Plan in May 2015, we stopped granting equity awards under our 2008 Stock Option Incentive Plan and our 2006 Restricted Stock Plan (collectively, the “Previous Plans”). The Previous Plans will remain in effect solely for the settlement of awards granted under the Previous Plans. No shares that are reserved but unissued under the Previous Plans or that are outstanding under the Previous Plans and reacquired by the Company for any reason will be available for issuance under the Omnibus Plan. The Omnibus Plan expires on April 7, 2025 and authorizes 1,500,000 shares of common stock for grant over the life of the Omnibus Plan. As of June 30, 2018, 1,016,793 shares of common stock remain available for grant under the Omnibus Plan. PSUs, RSUs and Restricted Stock On January 2, 2018, the Company granted 14,100 PSUs to certain employees. Each PSU represents the right to receive, on the settlement date, one share of the Company’s common stock. The total number of PSUs each participant is eligible to earn ranges from 0% to 200% of the target number of PSUs granted. The actual number of PSUs that will vest and be settled in shares is determined at the end of a three-year performance period beginning January 1, 2018, based on total stockholder return relative to a set of peer companies. The fair value of the PSUs estimated on the grant date using a Monte Carlo simulation was $63.56 per unit. Compensation expense is recorded over the awards’ vesting period. Assumptions used in the Monte Carlo simulation to calculate the fair value of the PSUs granted in 2018 are as follows: 2018 Stock price on grant date $ 51.00 Expected term 3.0 years Expected volatility 30 % Risk-free interest rate 2.0 % Expected dividend yield 1.4 % A summary of our PSU, restricted stock and RSU activity for the six months ended June 30, 2018 is as follows: PSUs Restricted Stock RSUs Weighted Weighted Weighted Average Average Average Grant Date Grant Date Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Outstanding as of December 31, 2017 30,963 $ 53.76 66,701 $ 44.83 47,151 $ 45.56 Granted 14,100 63.56 32,700 53.24 29,448 54.27 Vested (5,863) 65.78 (24,297) 50.23 (17,732) 44.90 Cancelled, expired or forfeited — — (116) 49.97 (682) 44.07 Outstanding as of June 30, 2018 39,200 $ 55.48 74,988 $ 46.74 58,185 $ 50.19 During the six months ended June 30, 2018, 5,863 PSUs vested and PSU holders earned 5,996 shares of the Company’s common stock. Stock Options A summary of our stock option activity for the six months ended June 30, 2018 is as follows: Weighted Average Exercise Shares Price Outstanding as of December 31, 2017 429,729 $ 38.58 Granted 40,900 51.00 Exercised (115,367) 30.92 Cancelled, expired or forfeited (5,000) 43.71 Outstanding as of June 30, 2018 350,262 $ 42.49 Exercisable as of June 30, 2018 239,441 $ 41.11 Treasury Stock During the six months ended June 30, 2018, the Company repurchased 5,564 shares of the Company’s common stock in connection with the net share settlement of employee equity awards at an average cost of $56.20 per share. During the six months ended June 30, 2018, option holders exercised 115,367 options with a weighted-average exercise price of $30.92 per option, with 36,282 shares tendered by option holders in connection with options exercised via net share settlement. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
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 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. 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 SEGMENTS
OPERATING SEGMENTS | 6 Months Ended |
Jun. 30, 2018 | |
OPERATING SEGMENTS | |
OPERATING SEGMENTS | NOTE 15. OPERATING SEGMENTS Financial Information by Segment Our operations are managed in two reportable segments reflecting our internal reporting structure and nature of services offered as follows: Environmental Services - This segment provides a broad range of hazardous material management services including transportation, recycling, treatment and disposal of hazardous and non-hazardous waste at Company-owned landfill, wastewater and other treatment facilities. Field & Industrial Services - This segment provides packaging and collection of hazardous waste and total waste management solutions at customer sites and through our 10-day transfer facilities. Services include on-site management, waste characterization, transportation and disposal of non-hazardous and hazardous waste. This segment also provides specialty services such as high-pressure cleaning, tank cleaning, decontamination, remediation, transportation, spill cleanup and emergency response and other services to commercial and industrial facilities and to government entities. The operations not managed through our two reportable segments are recorded as "Corporate." Corporate selling, general and administrative expenses include typical corporate items such as legal, accounting and other items of a general corporate nature. Income taxes are assigned to Corporate, but all other items are included in the segment where they originated. Inter-company transactions have been eliminated from the segment information and are not significant between segments. Summarized financial information of our reportable segments is as follows: Three Months Ended June 30, 2018 Field & Environmental Industrial $s in thousands Services Services Corporate Total Revenue $ 98,960 $ 37,952 $ — $ 136,912 Depreciation, amortization and accretion $ 8,676 $ 1,415 $ 330 $ 10,421 Capital expenditures $ 4,935 $ 1,849 $ 618 $ 7,402 Total assets $ 599,706 $ 126,797 $ 98,160 $ 824,663 Three Months Ended June 30, 2017 Field & Environmental Industrial $s in thousands Services Services Corporate Total Revenue $ 89,591 $ 36,466 $ — $ 126,057 Depreciation, amortization and accretion $ 9,105 $ 1,451 $ 128 $ 10,684 Capital expenditures $ 7,771 $ 1,839 $ 723 $ 10,333 Total assets $ 608,207 $ 124,466 $ 56,773 $ 789,446 Six Months Ended June 30, 2018 Field & Environmental Industrial $s in thousands Services Services Corporate Total Revenue $ 185,431 $ 71,540 $ — $ 256,971 Depreciation, amortization and accretion $ 17,186 $ 2,770 $ 446 $ 20,402 Capital expenditures $ 10,939 $ 2,887 $ 1,134 $ 14,960 Total assets $ 599,706 $ 126,797 $ 98,160 $ 824,663 Six Months Ended June 30, 2017 Field & Environmental Industrial $s in thousands Services Services Corporate Total Revenue $ 170,894 $ 65,397 $ — $ 236,291 Depreciation, amortization and accretion $ 17,895 $ 2,909 $ 258 $ 21,062 Capital expenditures $ 13,610 $ 2,339 $ 1,603 $ 17,552 Total assets $ 608,207 $ 124,466 $ 56,773 $ 789,446 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) The primary financial measure used by management to assess segment performance is Adjusted EBITDA. Adjusted EBITDA is defined as net income before interest expense, interest income, income tax expense, depreciation, amortization, stock-based compensation, accretion of closure and post-closure liabilities, foreign currency gain/loss and other income/expense. Adjusted EBITDA is a complement to results provided in accordance with GAAP and we believe that such information provides additional useful information to analysts, stockholders and other users to understand the Company’s operating performance. Since Adjusted EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies. Items excluded from Adjusted EBITDA are significant components in understanding and assessing our financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to, or substitute for, net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or a substitute for analyzing our results as reported under GAAP. Some of the limitations are: · Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; · Adjusted EBITDA does not reflect our interest expense, or the requirements necessary to service interest or principal payments on our debt; · Adjusted EBITDA does not reflect our income tax expenses or the cash requirements to pay our taxes; · Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; and · Although depreciation and amortization charges are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements. A reconciliation of Net income to Adjusted EBITDA is as follows: Three Months Ended June 30, Six Months Ended June 30, $s in thousands 2018 2017 2018 2017 Net income $ 13,220 $ 5,049 $ 22,463 $ 10,234 Income tax expense 4,258 2,718 7,778 5,797 Interest expense 2,907 8,474 5,716 12,604 Interest income (39) (21) (63) (31) Foreign currency (gain) loss 139 (158) 153 (246) Other income (193) (166) (2,316) (303) Depreciation and amortization of plant and equipment 7,044 6,987 13,649 13,621 Amortization of intangibles 2,296 2,615 4,598 5,286 Stock-based compensation 1,011 1,043 2,079 1,959 Accretion and non-cash adjustment of closure & post-closure liabilities 1,081 1,082 2,155 2,155 Adjusted EBITDA $ 31,724 $ 27,623 $ 56,212 $ 51,076 Adjusted EBITDA, by operating segment, is as follows: Three Months Ended June 30, Six Months Ended June 30, $s in thousands 2018 2017 2018 2017 Adjusted EBITDA: Environmental Services $ 39,860 $ 34,642 $ 74,532 $ 66,498 Field & Industrial Services 4,562 4,119 6,907 6,183 Corporate (12,698) (11,138) (25,227) (21,605) Total $ 31,724 $ 27,623 $ 56,212 $ 51,076 Property and Equipment and Intangible Assets Outside of the United States We provide services in the United States and Canada. Long-lived assets, comprised of property and equipment and intangible assets net of accumulated depreciation and amortization, by geographic location are as follows: June 30, December 31, $s in thousands 2018 2017 United States $ 390,769 $ 396,066 Canada 58,487 61,178 Total long-lived assets $ 449,256 $ 457,244 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 16. SUBSEQUENT EVENTS Quarterly Dividend On July 2, 2018, we declared a quarterly dividend of $0.18 per common share to stockholders of record on July 20, 2018. The dividend was paid using cash on hand on July 27, 2018 in an aggregate amount of $4.0 million. |
GENERAL (Policies)
GENERAL (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
GENERAL | |
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 inter-company 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 (consisting only of normal recurring 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, 2017. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the entire year ending December 31, 2018. The Company’s consolidated balance sheet as of December 31, 2017 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 GAAP 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 consolidated 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. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) . This ASU amends the guidance in Accounting Standards Codification (“ASC”) 220 on the reclassification of certain tax effects from accumulated other comprehensive income. The primary purpose of the ASU is to address industry concerns related to the application of ASC 740 to certain provisions of the new tax reform legislation also known as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) . While this update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, early adoption is permitted, including adoption in any interim period. The update shall be applied either (1) retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized or (2) as of the beginning of the period of adoption. The Company plans to adopt this pronouncement in the second half of 2018 and does not expect the impact on its consolidated financial statements to be material. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Because of the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the Tax Act and the application of ASC 740. Under GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). Our selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Whether we expect to have future U.S. inclusions in taxable income related to GILTI depends on not only our current structure and estimated future results of global operations but also our intent and ability to modify our structure and/or our business. We are not yet able to reasonably estimate the effect of this provision of the Tax Act. Therefore, we have not made any adjustments related to potential GILTI tax in our consolidated financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI. On December 22, 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Where the Company was able to make reasonable estimates of the effects of elements for which the analysis is not yet complete, the Company has recorded provisional amounts. For the six months ended June 30, 2018, the Company did not obtain additional information affecting the provisional amounts initially recorded. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). This ASU amends the guidance in ASC 815 to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact ASU 2017-12 will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18 , Restricted Cash (Topic 230) . This ASU amends the guidance in ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. ASU 2016-18 is based on the Emerging Issues Task Force’s consensuses reached on Issue 16-A. The guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted ASU 2016-18 as of January 1, 2018 using the retrospective adoption method. The impact of retrospective application of ASU 2016-18 is immaterial, as restricted cash activity for the six months ended June 30, 2017 was not significant. Restricted cash is now included with Cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts presented in the Company’s consolidated statements of cash flows. In August 2016, the FASB issued ASU No. 2016-15, Statements of Cash Flows (Topic 230) . This ASU amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted ASU 2016-15 as of January 1, 2018 using the retrospective adoption method. The only provision applicable to the Company relates to the treatment of proceeds from the settlement of insurance claims in connection with damaged property and equipment. There was no related impact on the classification of insurance settlement proceeds in the Company’s consolidated statements of cash flows for the six months ended June 30, 2018 and 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU significantly changes the accounting model used by lessees to account for leases, requiring that all material leases be presented on the balance sheet. Lessees will recognize substantially all leases on the balance sheet as a right-of-use asset and a corresponding lease liability. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. The guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Under ASU 2016-02, upon adoption, the effects of the standard must be applied using the modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11 which provides a practical expedient that allows companies to use an optional transition method. Under the optional transition method, a cumulative adjustment to retained earnings during the period of adoption is recorded and prior periods would not require restatement. The Company is evaluating this update and has not yet determined if it will elect to use this optional transition method. We are currently assessing the impact the adoption of ASU 2016-02 may have on our consolidated financial position, results of operations and cash flows. The Company plans to adopt this guidance effective January 1, 2019. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which provides guidance for revenue recognition. The ASU’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. See Note 2 for additional information. |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
REVENUES | |
Schedule of disaggregation of revenues | Three Months Ended June 30, 2018 Field & Environmental Industrial $s in thousands Services Services Total Treatment & Disposal Revenue (1) $ 77,978 $ 3,166 $ 81,144 Services Revenue: Transportation and Logistics (2) 20,982 7,551 28,533 Industrial Cleaning (3) — 4,157 4,157 Technical Services (4) — 20,780 20,780 Remediation (5) — 1,325 1,325 Other (6) — 973 973 Revenue $ 98,960 $ 37,952 $ 136,912 Three Months Ended June 30, 2017 Field & Environmental Industrial $s in thousands Services Services Total Treatment & Disposal Revenue (1) $ 71,238 $ 2,901 $ 74,139 Services Revenue: Transportation and Logistics (2) 18,353 4,943 23,296 Industrial Cleaning (3) — 4,705 4,705 Technical Services (4) — 19,802 19,802 Remediation (5) — 3,217 3,217 Other (6) — 898 898 Revenue $ 89,591 $ 36,466 $ 126,057 Six Months Ended June 30, 2018 Field & Environmental Industrial $s in thousands Services Services Total Treatment & Disposal Revenue (1) $ 150,279 $ 5,903 $ 156,182 Services Revenue: Transportation and Logistics (2) 35,152 13,248 48,400 Industrial Cleaning (3) — 7,662 7,662 Technical Services (4) — 41,185 41,185 Remediation (5) — 1,678 1,678 Other (6) — 1,864 1,864 Revenue $ 185,431 $ 71,540 $ 256,971 Six Months Ended June 30, 2017 Field & Environmental Industrial $s in thousands Services Services Total Treatment & Disposal Revenue (1) $ 139,941 $ 5,538 $ 145,479 Services Revenue: Transportation and Logistics (2) 30,953 10,263 41,216 Industrial Cleaning (3) — 8,924 8,924 Technical Services (4) — 35,464 35,464 Remediation (5) — 3,823 3,823 Other (6) — 1,385 1,385 Revenue $ 170,894 $ 65,397 $ 236,291 (1) We categorize our treatment and disposal revenue as either “Base Business” or “Event Business” based on the underlying nature of the revenue source. We define Event Business as non-recurring projects that are expected to equal or exceed 1,000 tons, with Base Business defined as all other business not meeting the definition of Event Business. For the three months ended June 30, 2018 and 2017, 19% and 23%, respectively, of our treatment and disposal revenue was derived from Event Business projects. Base Business revenue accounted for 81% and 77% of our treatment and disposal revenue for the three months ended June 30, 2018 and 2017, respectively. For the six months ended June 30, 2018 and 2017, 18% and 19%, respectively, of our treatment and disposal revenue was derived from Event Business projects. Base Business revenue accounted for 82% and 81% of our treatment and disposal revenue for the six months ended June 30, 2018 and 2017, respectively. (2) Includes such services as collection and transportation of non-hazardous and hazardous waste. (3) Includes such services as industrial cleaning and maintenance for refineries, chemical plants, steel and automotive plants, and refinery services such as tank cleaning and temporary storage. (4) Includes such services as total waste management programs, retail services, laboratory packing, less-than-truck-load service and household hazardous waste collection. Contracts for Technical Services may extend beyond one year and a portion of the transactions price can be fixed. (5) Includes such services as site assessment, onsite treatment, project management and remedial action planning and execution. Contracts for Remediation may extend beyond one year and a portion of the transaction price can be fixed. (6) Includes such services as emergency response and marine. We provide services in the United States and Canada. The following table presents our revenue disaggregated by our reportable segments and geographic location where the underlying services were performed: Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Field & Field & Environmental Industrial Environmental Industrial $s in thousands Services Services Total Services Services Total United States $ 84,917 $ 37,952 $ 122,869 $ 74,297 $ 36,466 $ 110,763 Canada 14,043 — 14,043 15,294 — 15,294 Total revenue $ 98,960 $ 37,952 $ 136,912 $ 89,591 $ 36,466 $ 126,057 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Field & Field & Environmental Industrial Environmental Industrial $s in thousands Services Services Total Services Services Total United States $ 159,903 $ 71,540 $ 231,443 $ 141,558 $ 65,397 $ 206,955 Canada 25,528 — 25,528 29,336 — 29,336 Total revenue $ 185,431 $ 71,540 $ 256,971 $ 170,894 $ 65,397 $ 236,291 |
ACCUMULATED OTHER COMPREHENSI27
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
Schedule of changes in accumulated other comprehensive income (loss) | NOTE 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) (“AOCI”) consisted of the following: Foreign Unrealized Gain Currency (Loss) on Interest $s in thousands Translation Rate Hedge Total Balance at December 31, 2017 $ (8,603) $ (501) $ (9,104) Other comprehensive income before reclassifications, net of tax (3,468) 1,913 (1,555) Amounts reclassified out of AOCI, net of tax (1) — 310 310 Other comprehensive income, net (3,468) 2,223 (1,245) Balance at June 30, 2018 $ (12,071) $ 1,722 $ (10,349) (1) Before-tax reclassifications of $ 119,000 ($94,000 after-tax) and $392,000 ( $310,000 after-tax) for the three and six months ended June 30, 2018, respectively, and before-tax reclassifications of $603,000 ($392,000 after-tax) and $1.3 million ($873,000 after-tax) for the three and six months ended June 30, 2017, were included in Interest expense in the Company’s consolidated statements of operations. Amounts relate to the Company’s interest rate swap which is designated as a cash flow hedge. Changes in fair value of the swap recognized in AOCI are reclassified to interest expense when hedged interest payments on the underlying long-term debt are made. Amounts in AOCI expected to be recognized in interest expense over the next 12 months total approximately $ 477,000 ($377,000 after-tax). |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
RECEIVABLES | |
Schedule of receivables | June 30, December 31, $s in thousands 2018 2017 Trade $ 93,217 $ 96,760 Unbilled revenue 21,032 16,176 Other 1,278 637 Total receivables 115,527 113,573 Allowance for doubtful accounts (3,111) Receivables, net $ 112,416 $ 110,777 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
FAIR VALUE MEASUREMENTS | |
Schedule of assets and liabilities measured at fair value on a recurring basis | June 30, 2018 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) $ 1,380 $ 2,731 $ — $ 4,111 Money market funds (2) 776 — — 776 Interest rate swap agreement (3) — 2,180 — 2,180 Total $ 2,156 $ 4,911 $ — $ 7,067 December 31, 2017 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) $ 1,396 $ 2,649 $ — $ 4,045 Money market funds (2) 1,757 — — 1,757 Total $ 3,153 $ 2,649 $ — $ 5,802 Liabilities: Interest rate swap agreement (3) $ — $ 638 $ — $ 638 Total $ — $ 638 $ — $ 638 (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. Money market funds are considered restricted cash for purposes of reconciling the beginning-of-period and end-of-period amounts presented in the Company’s consolidated statements of cash flows. (3) In order to manage interest rate exposure, we entered into an interest rate swap agreement in October 2014 that effectively converts a portion of our variable-rate debt to a fixed interest rate. The swap is designated as a cash flow hedge, with gains and losses deferred in other comprehensive income to be recognized as an adjustment to interest expense in the same period that the hedged interest payments affect earnings. The interest rate swap has an effective date of December 31, 2014 with an initial notional amount of $250.0 million. The fair value of the interest rate swap agreement represents the difference in the present value of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the period. We calculate the fair value of the interest rate swap agreement quarterly based on the quoted market price for the same or similar financial instruments. The fair value of the interest rate swap agreement is included in Other assets and Other long-term liabilities in the Company’s consolidated balance sheet as of June 30, 2018 and December 31, 2017, respectively. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment | June 30, December 31, $s in thousands 2018 2017 Cell development costs $ 143,378 $ 142,144 Land and improvements 36,932 36,499 Buildings and improvements 87,416 87,034 Railcars 17,299 17,299 Vehicles and other equipment 128,931 122,697 Construction in progress 23,895 23,334 Total property and equipment 437,851 429,007 Accumulated depreciation and amortization (205,534) (194,575) Property and equipment, net $ 232,317 $ 234,432 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of changes in goodwill | Field & Environmental Industrial Services Services Accumulated Accumulated $s in thousands Gross Impairment Gross Impairment Total Balance at December 31, 2017 $ 150,699 $ (5,457) $ 44,131 $ — $ 189,373 Foreign currency translation (894) — — — (894) Balance at June 30, 2018 $ 149,805 $ (5,457) $ 44,131 $ — $ 188,479 |
Schedule of intangible assets, net | June 30, 2018 December 31, 2017 Accumulated Accumulated $s in thousands Cost Amortization Net Cost Amortization Net Amortizing intangible assets: Permits, licenses and lease $ 110,726 $ (13,540) $ 97,186 $ $ $ Customer relationships 84,780 (22,892) 61,888 Technology - formulae and processes 6,895 (1,661) 5,234 Customer backlog 3,652 (1,474) 2,178 Tradename 4,318 (4,318) — — Developed software 2,912 (1,452) 1,460 Non-compete agreements 747 (747) — — Internet domain and website 540 (115) 425 Database 389 (160) 229 Total amortizing intangible assets 214,959 (46,359) 168,600 216,622 (42,186) Nonamortizing intangible assets: Permits and licenses 48,210 — 48,210 48,241 — 48,241 Tradename 129 — 129 135 — 135 Total intangible assets $ 263,298 $ (46,359) $ 216,939 $ 264,998 $ (42,186) $ 222,812 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
DEBT | |
Schedule of long-term debt | June 30, December 31, $s in thousands 2018 2017 Revolving credit facility $ 277,000 $ 277,000 Long-term debt $ $ |
Schedule of interest margins based on the total net leverage ratio | Total Net Leverage Ratio LIBOR Rate Loans Interest Margin Base Rate Loans Interest Margin Equal to or greater than 3.25 to 1.00 2.00% 1.00% Equal to or greater than 2.50 to 1.00, but less than 3.25 to 1.00 1.75% 0.75% Equal to or greater than 1.75 to 1.00, but less than 2.50 to 1.00 1.50% 0.50% Equal to or greater than 1.00 to 1.00, but less than 1.75 to 1.00 1.25% 0.25% Less than 1.00 to 1.00 1.00% 0.00% |
CLOSURE AND POST-CLOSURE OBLI33
CLOSURE AND POST-CLOSURE OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
CLOSURE AND POST-CLOSURE OBLIGATIONS | |
Schedule of changes to reported closure and post closure obligations | Three Months Ended Six Months Ended $s in thousands June 30, 2018 June 30, 2018 Closure and post-closure obligations, beginning of period $ 76,823 $ 76,088 Accretion expense 1,081 2,155 Payments (295) (582) Foreign currency translation (42) (94) Closure and post-closure obligations, end of period 77,567 77,567 Less current portion (2,299) (2,299) Long-term portion $ 75,268 $ 75,268 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
EARNINGS PER SHARE | |
Schedule of earnings per share | Three Months Ended June 30, 2018 2017 $s and shares in thousands, except per share amounts Basic Diluted Basic Diluted Net income $ 13,220 $ 13,220 $ 5,049 $ 5,049 Weighted average basic shares outstanding 21,867 21,867 21,751 21,751 Dilutive effect of stock-based awards 157 139 Weighted average diluted shares outstanding 22,024 21,890 Earnings per share $ 0.60 $ 0.60 $ 0.23 $ 0.23 Anti-dilutive shares excluded from calculation 58 115 Six Months Ended June 30, 2018 2017 $s and shares in thousands, except per share amounts Basic Diluted Basic Diluted Net income $ 22,463 $ 22,463 $ 10,234 $ 10,234 Weighted average basic shares outstanding 21,835 21,835 21,738 21,738 Dilutive effect of stock-based awards 156 136 Weighted average diluted shares outstanding 21,991 21,874 Earnings per share $ 1.03 $ 1.02 $ 0.47 $ 0.47 Anti-dilutive shares excluded from calculation 76 113 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
EQUITY | |
Schedule of assumptions for determining the fair value for PSU awards using Monte Carlo simulation models | 2018 Stock price on grant date $ 51.00 Expected term 3.0 years Expected volatility 30 % Risk-free interest rate 2.0 % Expected dividend yield 1.4 % |
Summary of PSU, restricted stock and RSU activity | PSUs Restricted Stock RSUs Weighted Weighted Weighted Average Average Average Grant Date Grant Date Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Outstanding as of December 31, 2017 30,963 $ 53.76 66,701 $ 44.83 47,151 $ 45.56 Granted 14,100 63.56 32,700 53.24 29,448 54.27 Vested (5,863) 65.78 (24,297) 50.23 (17,732) 44.90 Cancelled, expired or forfeited — — (116) 49.97 (682) 44.07 Outstanding as of June 30, 2018 39,200 $ 55.48 74,988 $ 46.74 58,185 $ 50.19 |
Summary of stock option activity | Weighted Average Exercise Shares Price Outstanding as of December 31, 2017 429,729 $ 38.58 Granted 40,900 51.00 Exercised (115,367) 30.92 Cancelled, expired or forfeited (5,000) 43.71 Outstanding as of June 30, 2018 350,262 $ 42.49 Exercisable as of June 30, 2018 239,441 $ 41.11 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
OPERATING SEGMENTS | |
Summary of financial information of our reportable segments | Three Months Ended June 30, 2018 Field & Environmental Industrial $s in thousands Services Services Corporate Total Revenue $ 98,960 $ 37,952 $ — $ 136,912 Depreciation, amortization and accretion $ 8,676 $ 1,415 $ 330 $ 10,421 Capital expenditures $ 4,935 $ 1,849 $ 618 $ 7,402 Total assets $ 599,706 $ 126,797 $ 98,160 $ 824,663 Three Months Ended June 30, 2017 Field & Environmental Industrial $s in thousands Services Services Corporate Total Revenue $ 89,591 $ 36,466 $ — $ 126,057 Depreciation, amortization and accretion $ 9,105 $ 1,451 $ 128 $ 10,684 Capital expenditures $ 7,771 $ 1,839 $ 723 $ 10,333 Total assets $ 608,207 $ 124,466 $ 56,773 $ 789,446 Six Months Ended June 30, 2018 Field & Environmental Industrial $s in thousands Services Services Corporate Total Revenue $ 185,431 $ 71,540 $ — $ 256,971 Depreciation, amortization and accretion $ 17,186 $ 2,770 $ 446 $ 20,402 Capital expenditures $ 10,939 $ 2,887 $ 1,134 $ 14,960 Total assets $ 599,706 $ 126,797 $ 98,160 $ 824,663 Six Months Ended June 30, 2017 Field & Environmental Industrial $s in thousands Services Services Corporate Total Revenue $ 170,894 $ 65,397 $ — $ 236,291 Depreciation, amortization and accretion $ 17,895 $ 2,909 $ 258 $ 21,062 Capital expenditures $ 13,610 $ 2,339 $ 1,603 $ 17,552 Total assets $ 608,207 $ 124,466 $ 56,773 $ 789,446 |
Reconciliation of Net Income to Adjusted EBITDA and adjusted EBITDA by operating segment | Three Months Ended June 30, Six Months Ended June 30, $s in thousands 2018 2017 2018 2017 Net income $ 13,220 $ 5,049 $ 22,463 $ 10,234 Income tax expense 4,258 2,718 7,778 5,797 Interest expense 2,907 8,474 5,716 12,604 Interest income (39) (21) (63) (31) Foreign currency (gain) loss 139 (158) 153 (246) Other income (193) (166) (2,316) (303) Depreciation and amortization of plant and equipment 7,044 6,987 13,649 13,621 Amortization of intangibles 2,296 2,615 4,598 5,286 Stock-based compensation 1,011 1,043 2,079 1,959 Accretion and non-cash adjustment of closure & post-closure liabilities 1,081 1,082 2,155 2,155 Adjusted EBITDA $ 31,724 $ 27,623 $ 56,212 $ 51,076 Three Months Ended June 30, Six Months Ended June 30, $s in thousands 2018 2017 2018 2017 Adjusted EBITDA: Environmental Services $ 39,860 $ 34,642 $ 74,532 $ 66,498 Field & Industrial Services 4,562 4,119 6,907 6,183 Corporate (12,698) (11,138) (25,227) (21,605) Total $ 31,724 $ 27,623 $ 56,212 $ 51,076 |
Schedule of long-lived assets by geographic location | June 30, December 31, $s in thousands 2018 2017 United States $ 390,769 $ 396,066 Canada 58,487 61,178 Total long-lived assets $ 449,256 $ 457,244 |
GENERAL (Details)
GENERAL (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Income tax rate | ||
Federal corporate tax rate | 21.00% | 35.00% |
REVENUES (Details)
REVENUES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)item | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segmentitem | Jun. 30, 2017USD ($) | |
Disaggregation of revenue | ||||
Number of primary sources for recognizing revenue | item | 3 | 3 | ||
Number of reportable segments | segment | 2 | |||
Revenue | $ 136,912 | $ 256,971 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | $ 126,057 | $ 236,291 | ||
Treatment and disposal | ||||
Disaggregation of revenue | ||||
Revenue | 81,144 | 156,182 | ||
Treatment and disposal | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 74,139 | 145,479 | ||
Transportation and Logistics | ||||
Disaggregation of revenue | ||||
Revenue | 28,533 | 48,400 | ||
Transportation and Logistics | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 23,296 | 41,216 | ||
Industrial Cleaning | ||||
Disaggregation of revenue | ||||
Revenue | 4,157 | 7,662 | ||
Industrial Cleaning | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 4,705 | 8,924 | ||
Technical Services | ||||
Disaggregation of revenue | ||||
Revenue | 20,780 | 41,185 | ||
Technical Services | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 19,802 | 35,464 | ||
Remediation | ||||
Disaggregation of revenue | ||||
Revenue | 1,325 | 1,678 | ||
Remediation | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 3,217 | 3,823 | ||
Other | ||||
Disaggregation of revenue | ||||
Revenue | 973 | 1,864 | ||
Other | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 898 | 1,385 | ||
Operating Segment | Environmental Services | ||||
Disaggregation of revenue | ||||
Revenue | 98,960 | 185,431 | ||
Operating Segment | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 37,952 | 71,540 | ||
Operating Segment | Calculated under Revenue Guidance in Effect before Topic 606 | Environmental Services | ||||
Disaggregation of revenue | ||||
Revenue | 89,591 | 170,894 | ||
Operating Segment | Calculated under Revenue Guidance in Effect before Topic 606 | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 36,466 | 65,397 | ||
Operating Segment | Treatment and disposal | Environmental Services | ||||
Disaggregation of revenue | ||||
Revenue | 77,978 | 150,279 | ||
Operating Segment | Treatment and disposal | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 3,166 | 5,903 | ||
Operating Segment | Treatment and disposal | Calculated under Revenue Guidance in Effect before Topic 606 | Environmental Services | ||||
Disaggregation of revenue | ||||
Revenue | 71,238 | 139,941 | ||
Operating Segment | Treatment and disposal | Calculated under Revenue Guidance in Effect before Topic 606 | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 2,901 | 5,538 | ||
Operating Segment | Transportation and Logistics | Environmental Services | ||||
Disaggregation of revenue | ||||
Revenue | 20,982 | 35,152 | ||
Operating Segment | Transportation and Logistics | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 7,551 | 13,248 | ||
Operating Segment | Transportation and Logistics | Calculated under Revenue Guidance in Effect before Topic 606 | Environmental Services | ||||
Disaggregation of revenue | ||||
Revenue | 18,353 | 30,953 | ||
Operating Segment | Transportation and Logistics | Calculated under Revenue Guidance in Effect before Topic 606 | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 4,943 | 10,263 | ||
Operating Segment | Industrial Cleaning | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 4,157 | 7,662 | ||
Operating Segment | Industrial Cleaning | Calculated under Revenue Guidance in Effect before Topic 606 | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 4,705 | 8,924 | ||
Operating Segment | Technical Services | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 20,780 | 41,185 | ||
Operating Segment | Technical Services | Calculated under Revenue Guidance in Effect before Topic 606 | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 19,802 | 35,464 | ||
Operating Segment | Remediation | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 1,325 | 1,678 | ||
Operating Segment | Remediation | Calculated under Revenue Guidance in Effect before Topic 606 | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 3,217 | 3,823 | ||
Operating Segment | Other | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | $ 973 | $ 1,864 | ||
Operating Segment | Other | Calculated under Revenue Guidance in Effect before Topic 606 | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | $ 898 | $ 1,385 |
REVENUES - Treatment and Dispos
REVENUES - Treatment and Disposal Revenue (Details) - T | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Technical Services | Minimum | ||||
Disaggregation of revenue | ||||
Revenue Contract Term | 1 year | |||
Remediation | Minimum | ||||
Disaggregation of revenue | ||||
Revenue Contract Term | 1 year | |||
Event Business | Treatment and disposal | ||||
Disaggregation of revenue | ||||
Threshold Tons of Non-recurring projects | 1,000 | |||
Revenue (in percent) | 19.00% | 23.00% | 18.00% | 19.00% |
Base Business | Treatment and disposal | ||||
Disaggregation of revenue | ||||
Revenue (in percent) | 81.00% | 77.00% | 82.00% | 81.00% |
REVENUES - Geography (Details)
REVENUES - Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of revenue | ||||
Revenue | $ 136,912 | $ 256,971 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | $ 126,057 | $ 236,291 | ||
United States | ||||
Disaggregation of revenue | ||||
Revenue | 122,869 | 231,443 | ||
United States | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 110,763 | 206,955 | ||
Canada | ||||
Disaggregation of revenue | ||||
Revenue | 14,043 | 25,528 | ||
Canada | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 15,294 | 29,336 | ||
Operating Segment | Environmental Services | ||||
Disaggregation of revenue | ||||
Revenue | 98,960 | 185,431 | ||
Operating Segment | Environmental Services | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 89,591 | 170,894 | ||
Operating Segment | Environmental Services | United States | ||||
Disaggregation of revenue | ||||
Revenue | 84,917 | 159,903 | ||
Operating Segment | Environmental Services | United States | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 74,297 | 141,558 | ||
Operating Segment | Environmental Services | Canada | ||||
Disaggregation of revenue | ||||
Revenue | 14,043 | 25,528 | ||
Operating Segment | Environmental Services | Canada | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 15,294 | 29,336 | ||
Operating Segment | Field and Industrial Services | ||||
Disaggregation of revenue | ||||
Revenue | 37,952 | 71,540 | ||
Operating Segment | Field and Industrial Services | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | 36,466 | 65,397 | ||
Operating Segment | Field and Industrial Services | United States | ||||
Disaggregation of revenue | ||||
Revenue | $ 37,952 | $ 71,540 | ||
Operating Segment | Field and Industrial Services | United States | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue | $ 36,466 | $ 65,397 |
REVENUES - Practical Expedients
REVENUES - Practical Expedients (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
REVENUES | ||
Deferred revenue recognized in revenue | $ 1.5 | $ 7.8 |
Revenue, Practical Expedient, Financing Component | true | |
Revenue, Practical Expedient, Initial Application and Transition, Nonrestatement of Modified Contract | true |
ACCUMULATED OTHER COMPREHENSI42
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in AOCI (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Accumulated other comprehensive income (loss) | |
Balance at the beginning | $ 324,077 |
Balance at the end | 340,300 |
Foreign Currency Translation | |
Accumulated other comprehensive income (loss) | |
Balance at the beginning | (8,603) |
Other comprehensive income before reclassifications, net of tax | (3,468) |
Other comprehensive income, net | (3,468) |
Balance at the end | (12,071) |
Unrealized Gain (Loss) on Interest Rate Hedge | |
Accumulated other comprehensive income (loss) | |
Balance at the beginning | (501) |
Other comprehensive income before reclassifications, net of tax | 1,913 |
Amounts reclassified out of AOCI, net of tax | 310 |
Other comprehensive income, net | 2,223 |
Balance at the end | 1,722 |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated other comprehensive income (loss) | |
Balance at the beginning | (9,104) |
Other comprehensive income before reclassifications, net of tax | (1,555) |
Amounts reclassified out of AOCI, net of tax | 310 |
Other comprehensive income, net | (1,245) |
Balance at the end | $ (10,349) |
ACCUMULATED OTHER COMPREHENSI43
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) -Reclassifications Line Items (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification adjustments | ||||
Interest expense | $ 2,907,000 | $ 8,474,000 | $ 5,716,000 | $ 12,604,000 |
Unrealized Gain (Loss) on Interest Rate Hedge | Interest rate swap agreement | ||||
Reclassification adjustments | ||||
Amounts in AOCI expected to be recognized over the next 12 months before tax | 477,000 | 477,000 | ||
Amounts in AOCI expected to be recognized over the next 12 months, net of taxes | 377,000 | 377,000 | ||
Unrealized Gain (Loss) on Interest Rate Hedge | Interest rate swap agreement | Reclassification out of accumulated other comprehensive income | ||||
Reclassification adjustments | ||||
Interest expense | 119,000 | 603,000 | 392,000 | 1,300,000 |
Interest expense, net of tax | $ 94,000 | $ 392,000 | $ 310,000 | $ 873,000 |
RECEIVABLES (Details)
RECEIVABLES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
RECEIVABLES | ||
Trade | $ 93,217 | $ 96,760 |
Unbilled revenue | 21,032 | 16,176 |
Other | 1,278 | 637 |
Total receivables | 115,527 | 113,573 |
Allowance for doubtful accounts | (3,111) | (2,796) |
Receivables, net | $ 112,416 | $ 110,777 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2014 |
Interest rate swap agreement | |||
Assets measured at fair value on a recurring basis | |||
Initial notional amount | $ 250,000 | ||
Recurring | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | $ 7,067 | $ 5,802 | |
Liabilities fair value disclosure | 638 | ||
Recurring | Interest rate swap agreement | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | 2,180 | ||
Liabilities fair value disclosure | 638 | ||
Recurring | Fixed-income securities | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | 4,111 | 4,045 | |
Recurring | Money market funds | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | 776 | 1,757 | |
Recurring | Quoted Prices in Active Markets (Level 1) | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | 2,156 | 3,153 | |
Recurring | Quoted Prices in Active Markets (Level 1) | Fixed-income securities | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | 1,380 | 1,396 | |
Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | 776 | 1,757 | |
Recurring | Other Observable Inputs (Level 2) | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | 4,911 | 2,649 | |
Liabilities fair value disclosure | 638 | ||
Recurring | Other Observable Inputs (Level 2) | Interest rate swap agreement | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | 2,180 | ||
Liabilities fair value disclosure | 638 | ||
Recurring | Other Observable Inputs (Level 2) | Fixed-income securities | |||
Assets measured at fair value on a recurring basis | |||
Assets fair value disclosure | $ 2,731 | $ 2,649 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT | |||||
Total property and equipment | $ 437,851 | $ 437,851 | $ 429,007 | ||
Accumulated depreciation and amortization | (205,534) | (205,534) | (194,575) | ||
Property and equipment, net | 232,317 | 232,317 | 234,432 | ||
Depreciation and amortization of plant and equipment | 7,044 | $ 6,987 | 13,649 | $ 13,621 | |
Cell development costs | |||||
PROPERTY AND EQUIPMENT | |||||
Total property and equipment | 143,378 | 143,378 | 142,144 | ||
Land and improvements | |||||
PROPERTY AND EQUIPMENT | |||||
Total property and equipment | 36,932 | 36,932 | 36,499 | ||
Buildings and improvements | |||||
PROPERTY AND EQUIPMENT | |||||
Total property and equipment | 87,416 | 87,416 | 87,034 | ||
Railcars | |||||
PROPERTY AND EQUIPMENT | |||||
Total property and equipment | 17,299 | 17,299 | 17,299 | ||
Vehicles and other equipment | |||||
PROPERTY AND EQUIPMENT | |||||
Total property and equipment | 128,931 | 128,931 | 122,697 | ||
Construction in progress | |||||
PROPERTY AND EQUIPMENT | |||||
Total property and equipment | $ 23,895 | $ 23,895 | $ 23,334 |
GOODWILL AND INTANGIBLE ASSET47
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Changes in goodwill | |
Balance at the beginning of the period | $ 189,373 |
Foreign currency translation and other adjustments | (894) |
Balance at the end of the period | 188,479 |
Environmental Services | |
Changes in goodwill | |
Balance at the beginning of the period | 150,699 |
Foreign currency translation and other adjustments | (894) |
Balance at the end of the period | 149,805 |
Accumulated Impairment | |
Accumulated impairment at the beginning | 5,457 |
Accumulated impairment at the ending | (5,457) |
Field and Industrial Services | |
Changes in goodwill | |
Balance at the beginning of the period | 44,131 |
Balance at the end of the period | $ 44,131 |
GOODWILL AND INTANGIBLE ASSET48
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Intangible Assets | |||||
Amortizing intangible assets, Cost | $ 214,959 | $ 214,959 | $ 216,622 | ||
Accumulated amortization | (46,359) | (46,359) | (42,186) | ||
Amortizing intangible assets, Net | 168,600 | 168,600 | 174,436 | ||
Total intangible assets, cost | 263,298 | 263,298 | 264,998 | ||
Total intangible assets, net | 216,939 | 216,939 | 222,812 | ||
Amortization of intangible assets | 2,296 | $ 2,615 | 4,598 | $ 5,286 | |
Permits and licenses | |||||
Intangible Assets | |||||
Nonamortizing intangible assets | 48,210 | 48,210 | 48,241 | ||
Tradename | |||||
Intangible Assets | |||||
Nonamortizing intangible assets | 129 | 129 | 135 | ||
Permits, licenses and lease | |||||
Intangible Assets | |||||
Amortizing intangible assets, Cost | 110,726 | 110,726 | 111,818 | ||
Accumulated amortization | (13,540) | (13,540) | (12,459) | ||
Amortizing intangible assets, Net | 97,186 | 97,186 | 99,359 | ||
Customer relationships | |||||
Intangible Assets | |||||
Amortizing intangible assets, Cost | 84,780 | 84,780 | 84,977 | ||
Accumulated amortization | (22,892) | (22,892) | (20,168) | ||
Amortizing intangible assets, Net | 61,888 | 61,888 | 64,809 | ||
Technology - formulae and processes | |||||
Intangible Assets | |||||
Amortizing intangible assets, Cost | 6,895 | 6,895 | 7,250 | ||
Accumulated amortization | (1,661) | (1,661) | (1,630) | ||
Amortizing intangible assets, Net | 5,234 | 5,234 | 5,620 | ||
Customer backlog | |||||
Intangible Assets | |||||
Amortizing intangible assets, Cost | 3,652 | 3,652 | 3,652 | ||
Accumulated amortization | (1,474) | (1,474) | (1,291) | ||
Amortizing intangible assets, Net | 2,178 | 2,178 | 2,361 | ||
Tradename | |||||
Intangible Assets | |||||
Amortizing intangible assets, Cost | 4,318 | 4,318 | 4,318 | ||
Accumulated amortization | (4,318) | (4,318) | (4,318) | ||
Developed software | |||||
Intangible Assets | |||||
Amortizing intangible assets, Cost | 2,912 | 2,912 | 2,926 | ||
Accumulated amortization | (1,452) | (1,452) | (1,319) | ||
Amortizing intangible assets, Net | 1,460 | 1,460 | 1,607 | ||
Non-compete agreements | |||||
Intangible Assets | |||||
Amortizing intangible assets, Cost | 747 | 747 | 748 | ||
Accumulated amortization | (747) | (747) | (748) | ||
Internet domain and website | |||||
Intangible Assets | |||||
Amortizing intangible assets, Cost | 540 | 540 | 540 | ||
Accumulated amortization | (115) | (115) | (100) | ||
Amortizing intangible assets, Net | 425 | 425 | 440 | ||
Database | |||||
Intangible Assets | |||||
Amortizing intangible assets, Cost | 389 | 389 | 393 | ||
Accumulated amortization | (160) | (160) | (153) | ||
Amortizing intangible assets, Net | $ 229 | $ 229 | $ 240 |
DEBT - Schedule (Details)
DEBT - Schedule (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Long-term debt | ||
Long-term debt | $ 277,000 | $ 277,000 |
Revolving Credit Facility | ||
Long-term debt | ||
Loan amount | $ 277,000 | $ 277,000 |
DEBT - Paragraph (Details)
DEBT - Paragraph (Details) - USD ($) $ in Millions | Apr. 18, 2017 | Jun. 30, 2018 |
Sweep Arrangements | ||
DEBT | ||
Advances outstanding | $ 0 | |
Revolving Credit Facility | ||
DEBT | ||
Maximum borrowing capacity | $ 500 | |
Contractual term | 5 years | |
Accordion feature | $ 200 | |
Effective interest rate (as a percent) | 3.46% | |
Amount of debt hedged | $ 180 | |
Availability for borrowings under line of credit | 216.7 | |
Line of credit issued in the form of a standby letters of credit | $ 6.3 | |
Voting equity interest in foreign subsidiaries pledged as security (as a percent) | 65.00% | |
Non-voting equity interest in foreign subsidiaries pledged as security (as a percent) | 100.00% | |
Equity interest in domestic subsidiaries pledged as security (as a percent) | 100.00% | |
Debt instrument hedged (as a percent) | 65.00% | |
Total leverage ratio | 3.50 | |
Interest coverage ratio | 3 | |
Revolving Credit Facility | Minimum | ||
DEBT | ||
Commitment fee (as a percent) | 0.175% | |
Revolving Credit Facility | Maximum | ||
DEBT | ||
Commitment fee (as a percent) | 0.35% | |
Revolving Credit Facility | Equal To Or Greater Than 3.25 to 1.00 | ||
DEBT | ||
Minimum consolidated senior secured leverage ratio | 3.25 | |
Revolving Credit Facility | Equal To Or Greater Than 2.50 to 1.00, But Less Than 3.25 to 1.00 | ||
DEBT | ||
Minimum consolidated senior secured leverage ratio | 2.50 | |
Maximum consolidated senior secured leverage ratio | 3.25 | |
Revolving Credit Facility | Equal To Or Greater Than 1.75 to 1.00, But Less Than 2.50 to 1.00 | ||
DEBT | ||
Minimum consolidated senior secured leverage ratio | 1.75 | |
Maximum consolidated senior secured leverage ratio | 2.50 | |
Revolving Credit Facility | Equal To Or Greater Than 1.00 to 1.00, But Less Than 1.75 to 1.00 | ||
DEBT | ||
Minimum consolidated senior secured leverage ratio | 1 | |
Maximum consolidated senior secured leverage ratio | 1.75 | |
Revolving Credit Facility | Less Than 1.00 to 1.00 | ||
DEBT | ||
Maximum consolidated senior secured leverage ratio | 1 | |
Revolving Credit Facility | LIBOR | Equal To Or Greater Than 3.25 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 2.00% | |
Revolving Credit Facility | LIBOR | Equal To Or Greater Than 2.50 to 1.00, But Less Than 3.25 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 1.75% | |
Revolving Credit Facility | LIBOR | Equal To Or Greater Than 1.75 to 1.00, But Less Than 2.50 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 1.50% | |
Revolving Credit Facility | LIBOR | Equal To Or Greater Than 1.00 to 1.00, But Less Than 1.75 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 1.25% | |
Revolving Credit Facility | LIBOR | Less Than 1.00 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 1.00% | |
Revolving Credit Facility | Base rate | Equal To Or Greater Than 3.25 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 1.00% | |
Revolving Credit Facility | Base rate | Equal To Or Greater Than 2.50 to 1.00, But Less Than 3.25 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 0.75% | |
Revolving Credit Facility | Base rate | Equal To Or Greater Than 1.75 to 1.00, But Less Than 2.50 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 0.50% | |
Revolving Credit Facility | Base rate | Equal To Or Greater Than 1.00 to 1.00, But Less Than 1.75 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 0.25% | |
Revolving Credit Facility | Base rate | Less Than 1.00 to 1.00 | ||
DEBT | ||
Percentage points added to the reference rate | 0.00% | |
Credit Agreement, Letter Of Credit | ||
DEBT | ||
Maximum borrowing capacity | $ 75 | |
Credit Agreement, Swingline Loans | ||
DEBT | ||
Maximum borrowing capacity | $ 25 | |
Credit Agreement, Swingline Loans | Sweep Arrangements | ||
DEBT | ||
Maximum borrowing capacity | $ 25 |
CLOSURE AND POST-CLOSURE OBLI51
CLOSURE AND POST-CLOSURE OBLIGATIONS - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Changes to reported closure and post-closure obligations | ||||
Closure and post-closure obligations, beginning of period | $ 76,823 | $ 76,088 | ||
Accretion expense | 1,081 | 2,155 | $ 2,155 | |
Payments | (295) | (582) | ||
Foreign currency translation | (42) | (94) | ||
Closure and post-closure obligations, end of period | 77,567 | 77,567 | ||
Less current portion | (2,299) | (2,299) | $ (2,330) | |
Long-term portion | $ 75,268 | $ 75,268 | $ 73,758 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
INCOME TAXES | |||||
Effective tax rate (as a percent) | 24.40% | 35.00% | 25.70% | 36.20% | |
Federal corporate tax rate | 21.00% | 35.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
EARNINGS PER SHARE | ||||
Net income | $ 13,220 | $ 5,049 | $ 22,463 | $ 10,234 |
Basic | ||||
Weighted average basic shares outstanding | 21,867 | 21,751 | 21,835 | 21,738 |
Earnings per share (in dollars per share) | $ 0.60 | $ 0.23 | $ 1.03 | $ 0.47 |
Diluted | ||||
Dilutive effect of stock-based awards (in shares) | 157 | 139 | 156 | 136 |
Weighted average diluted shares outstanding | 22,024 | 21,890 | 21,991 | 21,874 |
Earnings per share (in dollars per share) | $ 0.60 | $ 0.23 | $ 1.02 | $ 0.47 |
Anti-dilutive shares excluded from calculation | 58 | 115 | 76 | 113 |
EQUITY - Stock Repurchase Progr
EQUITY - Stock Repurchase Program (Details) $ in Millions | Jun. 01, 2016USD ($) |
EQUITY | |
Authorized repurchase amount of outstanding common stock | $ 25 |
EQUITY - Omnibus Incentive Plan
EQUITY - Omnibus Incentive Plan (Details) - Omnibus Plan - shares | Jun. 30, 2018 | May 27, 2015 |
Stock-Based Compensation Plans | ||
Number of shares authorized for grant | 1,500,000 | |
Number of shares available for future grant | 1,016,793 |
EQUITY - PSUs, Restricted Stock
EQUITY - PSUs, Restricted Stock and RSU (Details) - USD ($) | Jan. 02, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Stock-Based Compensation Plans | |||
Common Stock, Shares, Issued | 21,976,000 | 21,849,000 | |
PSUs | |||
Stock-Based Compensation Plans | |||
Number of Common Stock Shares Each Performance Stock Unit Can Be Settled For | 1 | ||
Vesting period | 3 years | ||
Common Stock, Shares, Issued | 5,996 | ||
Assumptions used in Monte Carlo simulation | |||
Stock price on grant date | $ 51 | ||
Expected term (years) | 3 years | ||
Expected volatility (as a percent) | 30.00% | ||
Risk-free interest rate (as a percent) | 2.00% | ||
Expected dividend yield (as a percent) | 1.40% | ||
Shares | |||
Outstanding at the beginning of the year (in shares) | 30,963 | ||
Granted (in shares) | 14,100 | 14,100 | |
Vested (in shares) | (5,863) | ||
Outstanding at the end of the year (in shares) | 39,200 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 53.76 | ||
Granted (in dollars per share) | $ 63.56 | 63.56 | |
Vested (in dollars per share) | 65.78 | ||
Outstanding at the end of the period (in dollars per share) | $ 55.48 | ||
PSUs | Minimum | |||
Stock-Based Compensation Plans | |||
Percentage payout rate | 0.00% | ||
PSUs | Maximum | |||
Stock-Based Compensation Plans | |||
Percentage payout rate | 200.00% | ||
Restricted stock | |||
Shares | |||
Outstanding at the beginning of the year (in shares) | 66,701 | ||
Granted (in shares) | 32,700 | ||
Vested (in shares) | (24,297) | ||
Cancelled, expired or forfeited (in shares) | (116) | ||
Outstanding at the end of the year (in shares) | 74,988 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 44.83 | ||
Granted (in dollars per share) | 53.24 | ||
Vested (in dollars per share) | 50.23 | ||
Cancelled, expired or forfeited (in dollars per share) | 49.97 | ||
Outstanding at the end of the period (in dollars per share) | $ 46.74 | ||
RSUs | |||
Shares | |||
Outstanding at the beginning of the year (in shares) | 47,151 | ||
Granted (in shares) | 29,448 | ||
Vested (in shares) | (17,732) | ||
Cancelled, expired or forfeited (in shares) | (682) | ||
Outstanding at the end of the year (in shares) | 58,185 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 45.56 | ||
Granted (in dollars per share) | 54.27 | ||
Vested (in dollars per share) | 44.90 | ||
Cancelled, expired or forfeited (in dollars per share) | 44.07 | ||
Outstanding at the end of the period (in dollars per share) | $ 50.19 |
EQUITY - Stock Options (Details
EQUITY - Stock Options (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Shares | |
Exercised (in shares) | shares | (115,367) |
Weighted Average Exercise Price | |
Exercised (in dollars per share) | $ / shares | $ 30.92 |
Stock options | |
Shares | |
Outstanding at the beginning of the period (in shares) | shares | 429,729 |
Granted (in shares) | shares | 40,900 |
Exercised (in shares) | shares | (115,367) |
Cancelled, expired or forfeited (in shares) | shares | (5,000) |
Outstanding at the end of the period (in shares) | shares | 350,262 |
Exercisable at the end of the period (in shares) | shares | 239,441 |
Weighted Average Exercise Price | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 38.58 |
Granted (in dollars per share) | $ / shares | 51 |
Exercised (in dollars per share) | $ / shares | 30.92 |
Cancelled, expired or forfeited (in dollars per share) | $ / shares | 43.71 |
Outstanding at the end of the period (in dollars per share) | $ / shares | 42.49 |
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 41.11 |
EQUITY - Treasury Stock (Detail
EQUITY - Treasury Stock (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Treasury Stock | |
Repurchase of common stock (in shares) | 5,564 |
Average cost of repurchase (in dollars per share) | $ / shares | $ 56.20 |
Number of options exercised (in shares) | 115,367 |
Weighted-average exercise price of options exercised (in dollars per share) | $ / shares | $ 30.92 |
Number of options exercised via net share settlement | 36,282 |
OPERATING SEGMENTS - Summarized
OPERATING SEGMENTS - Summarized Financial Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
OPERATING SEGMENTS | |||||
Number of reportable segments | segment | 2 | ||||
Revenue | $ 136,912 | $ 126,057 | $ 256,971 | $ 236,291 | |
Depreciation, amortization and accretion | 10,421 | 10,684 | 20,402 | 21,062 | |
Capital expenditures | 7,402 | 10,333 | 14,960 | 17,552 | |
Total assets | 824,663 | 789,446 | 824,663 | 789,446 | $ 802,076 |
Corporate | |||||
OPERATING SEGMENTS | |||||
Depreciation, amortization and accretion | 330 | 128 | 446 | 258 | |
Capital expenditures | 618 | 723 | 1,134 | 1,603 | |
Total assets | 98,160 | 56,773 | 98,160 | 56,773 | |
Environmental Services | Operating Segment | |||||
OPERATING SEGMENTS | |||||
Revenue | 98,960 | 89,591 | 185,431 | 170,894 | |
Depreciation, amortization and accretion | 8,676 | 9,105 | 17,186 | 17,895 | |
Capital expenditures | 4,935 | 7,771 | 10,939 | 13,610 | |
Total assets | 599,706 | 608,207 | 599,706 | 608,207 | |
Field and Industrial Services | Operating Segment | |||||
OPERATING SEGMENTS | |||||
Revenue | 37,952 | 36,466 | 71,540 | 65,397 | |
Depreciation, amortization and accretion | 1,415 | 1,451 | 2,770 | 2,909 | |
Capital expenditures | 1,849 | 1,839 | 2,887 | 2,339 | |
Total assets | $ 126,797 | $ 124,466 | $ 126,797 | $ 124,466 |
OPERATING SEGMENTS - Reconcilia
OPERATING SEGMENTS - Reconciliation of EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of Net Income to Adjusted EBITDA | ||||
Net income | $ 13,220 | $ 5,049 | $ 22,463 | $ 10,234 |
Income tax expense | 4,258 | 2,718 | 7,778 | 5,797 |
Interest expense | 2,907 | 8,474 | 5,716 | 12,604 |
Interest income | (39) | (21) | (63) | (31) |
Foreign currency (gain) loss | 139 | (158) | 153 | (246) |
Other income | (193) | (166) | (2,316) | (303) |
Depreciation and amortization of plant and equipment | 7,044 | 6,987 | 13,649 | 13,621 |
Amortization of intangibles | 2,296 | 2,615 | 4,598 | 5,286 |
Stock-based compensation | 1,011 | 1,043 | 2,079 | 1,959 |
Accretion and non-cash adjustment of closure & post-closure liabilities | 1,081 | 1,082 | 2,155 | 2,155 |
Adjusted EBITDA | 31,724 | 27,623 | 56,212 | 51,076 |
Operating Segment | Environmental Services | ||||
Reconciliation of Net Income to Adjusted EBITDA | ||||
Adjusted EBITDA | 39,860 | 34,642 | 74,532 | 66,498 |
Operating Segment | Field and Industrial Services | ||||
Reconciliation of Net Income to Adjusted EBITDA | ||||
Adjusted EBITDA | 4,562 | 4,119 | 6,907 | 6,183 |
Corporate | ||||
Reconciliation of Net Income to Adjusted EBITDA | ||||
Adjusted EBITDA | $ (12,698) | $ (11,138) | $ (25,227) | $ (21,605) |
OPERATING SEGMENTS - Revenue an
OPERATING SEGMENTS - Revenue and Long-lived Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Revenue and Long-Lived Assets Outside of the United States | ||
Total long- lived assets | $ 449,256 | $ 457,244 |
United States | ||
Revenue and Long-Lived Assets Outside of the United States | ||
Total long- lived assets | 390,769 | 396,066 |
Canada | ||
Revenue and Long-Lived Assets Outside of the United States | ||
Total long- lived assets | $ 58,487 | $ 61,178 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 27, 2018 | Jul. 02, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
SUBSEQUENT EVENTS | ||||
Dividend paid in cash | $ 7,884 | $ 7,849 | ||
Subsequent event | ||||
SUBSEQUENT EVENTS | ||||
Quarterly dividend declared (in dollars per share) | $ 0.18 | |||
Dividend paid in cash | $ 4,000 |