EXHIBIT 99 NEWS RELEASE For Immediate Release Contact: Chad Hyslop or Jim Baumgardner (208) 331-8400 info@americanecology.com www.americanecology.com - ------------------------ ----------------------- AMERICAN ECOLOGY POSTS OPERATING INCOME OF $1.4 MILLION IN FIRST QUARTER BOISE, IDAHO APRIL 19, 2005 - American Ecology Corporation [NASDAQ: ECOL] today announced financial results for the quarter ending March 31, 2005. For the quarter, the Company reported net income of $856,000 or $0.05 per fully diluted share, compared to net income of $2.4 million, or $0.14 per fully diluted share a year ago. Operating income was $1.4 million for the quarter versus $3.4 million for the first quarter of 2004. Revenue for the first quarter of 2005 was $12.6 million, compared to $13.9 million a year ago. This decrease in revenue was primarily due to slightly lower average selling prices and decreased transportation revenue. While waste volumes at the Company's three hazardous waste sites remained relatively flat, higher operating costs were incurred in anticipation of waste shipments from contracts that were delayed due to weather, funding or other project-specific delays. Additionally, treatment revenue at the Company's Texas facility was down quarter to quarter pending availability of the new treatment building now under construction. Revenue at the Company's low-level radioactive waste disposal facility in Washington also declined due to lower rate-regulated waste volumes for the quarter. The Company also incurred transportation-related expenses in the quarter just ended to secure preferred long-term access to two east coast rail transfer facilities to better compete for large remediation projects. "Confirming what we disclosed last month, first quarter results were lower than planned due to delayed shipments but the Company did not lose any major forecasted projects," stated Stephen Romano, President and Chief Executive Officer. "While the costs of a temporarily underutilized rail fleet and securing east coast rail transfer points negatively affected first quarter results, we are well positioned to execute our growth strategy based on bundling of transportation and disposal services to increase waste volume throughput at our operating facilities," he added. All of the delayed first quarter 2005 projects are either shipping or expected to ship in the second quarter and the Company reaffirms its previous earnings guidance for the year. "We expect to receive and dispose of the delayed waste shipments during the balance of 2005 and continue to project 15% growth in operating income for the year," Romano commented. 1 Direct costs for the quarter increased to $8.7 million from $7.6 million in the first quarter of 2004. Higher direct costs reflected increased labor, transportation and waste treatment additive costs at the Company's Beatty, Nevada and Grand View, Idaho hazardous waste facilities. Higher transportation costs reflect fuel surcharges, an expanded railcar fleet, increased railcar operating lease expenses, and mobilization costs incurred in anticipation of the aforementioned large remediation projects now underway. Only a portion of these expenses could be passed on to customers. The combined result of lower revenue and higher direct costs was a 39% decrease in gross profit from $6.3 million (45% of revenue) in the first quarter of 2004 to $3.8 million (31% of revenue) in the first quarter of 2005. Selling, general & administrative expenses (SG&A) for the first quarter decreased to $2.5 million, or 20% of revenue, compared to SG&A of $2.9 million or 21% of revenue in the first quarter last year. SG&A expenses dropped despite the $105,000 spent in the first quarter of 2005 to comply with Sarbanes-Oxley Section 404 Internal Control requirements. Reduced revenue and higher direct costs outweighed reductions in SG&A, lowering operating income by $2.0 million to $1.4 million, below the $3.4 million in operating income posted in the first quarter of 2004. "Despite the lower quarterly operating income, cash flow remained solid and the Company's financial condition continues to be strong," stated Jim Baumgardner, Senior Vice President and Chief Financial Officer. At quarter end, the Company had $13.2 million of cash and investments on hand and working capital of $17.2 million. Management and Moss Adams LLP, the Company's independent registered public accounting firm, have concluded that the Company's internal controls over financial reporting were effective at December 31, 2004 and will report no material weaknesses. The Company will file an Amended Form 10K with the Securities and Exchange Commission on or prior to May 2, 2005 with the required internal control opinions. The Company's first quarter 2005 investor conference call will be held Wednesday, April 20, 2005 at 10:00 am Mountain Time. President and Chief Executive Officer Stephen Romano, Senior Vice President and Chief Financial Officer Jim Baumgardner, and Vice President and Controller Michael Gilberg will host the call. Interested parties are invited to submit questions in advance to INFO@AMERICANECOLOGY.COM, or by facsimile to 208-331-7900. To join the call, - ------------------------ dial 1-877-331-8343. Participants will be asked to provide their name and -------------- affiliation. 2 American Ecology Corporation, through its subsidiaries, provides radioactive, PCB, hazardous and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, steel mills, medical and academic institutions, refineries and chemical manufacturing facilities. Headquartered in Boise, Idaho, the Company is the oldest radioactive and hazardous waste services company in the United States, having operated for more than fifty years. This press release contains forward-looking statements that are based on our current expectations, beliefs, and assumptions about the industry and markets in which American Ecology Corporation and its subsidiaries operate. Actual results may differ materially from what is expressed herein and no assurance can be given that the Company will successfully meet its 2005 earnings estimates, receive all projected waste shipments, increase earnings through the bundling of transportation and disposal services, prevail in pending litigation, collect on pending insurance claims, or declare future dividends. For information on other factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. ## 3 AMERICAN ECOLOGY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS ($ IN 000'S EXCEPT PER SHARE AMOUNTS) (UNAUDITED) Three Months Ended ------------------ MARCH 31, 2005 March 31,2004 ---------------- -------------- Revenue $ 12,554 $ 13,905 Direct operating costs 8,713 7,612 ---------------- -------------- Gross profit 3,841 6,293 Selling, general and administrative expenses 2,514 2,872 Business interruption insurance claim (41) -- ---------------- -------------- Income from operations 1,368 3,421 Interest income 85 36 Interest expense 47 49 Other income 17 45 ---------------- -------------- Income before income tax and discontinued operations 1,423 3,453 Income tax expense 567 1,164 ---------------- -------------- Income before discontinued operations 856 2,289 Income from discontinued operations (net of tax of $0) -- 149 ---------------- -------------- Net income $ 856 $ 2,438 ================ ============== Basic earnings from continuing operations .05 .13 Basic earnings from discontinued operations -- .01 ---------------- -------------- Basic earnings per share $ .05 $ .14 ================ ============== Diluted earnings from continuing operations .05 .13 Diluted earnings from discontinued operations -- .01 ---------------- -------------- Diluted earnings per share $ .05 $ .14 ================ ============== Dividends paid per common share $ -- $ -- ================ ============== 4 AMERICAN ECOLOGY CORPORATION CONSOLIDATED BALANCE SHEETS ($ IN 000'S) (UNAUDITED) MARCH 31, 2005 December 31,2004 --------------- ----------------- ASSETS Current Assets: Cash and cash equivalents $ 2,920 $ 2,160 Short term investments 10,323 10,967 Receivables, net 8,742 8,963 Insurance receivable 1,161 1,285 Prepayments and other 1,077 1,469 Deferred income taxes 5,613 5,613 --------------- ----------------- Total current assets 29,836 30,457 Property and equipment, net 28,735 27,363 Facility development costs 6,478 6,478 Other assets 462 462 Deferred income taxes 12,041 12,473 --------------- ----------------- Total assets $ 77,552 $ 77,233 =============== ================= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current portion of long term debt $ 1,458 $ 1,457 Accounts payable 2,556 3,022 Deferred revenue 1,296 724 State burial fees payable 1,112 1,446 Management incentive plan payable 89 934 Customer refunds 2,512 2,512 Accrued liabilities 1,251 725 Accrued closure and post closure obligation, current portion 2,323 2,323 --------------- ----------------- Total current liabilities 12,597 13,143 Long term debt 2,369 2,734 Long term accrued liabilities 523 441 Accrued closure and post closure obligation, excluding current portion 9,314 9,304 --------------- ----------------- Total liabilities 24,803 25,622 --------------- ----------------- Commitments and contingencies Shareholders' equity: Convertible preferred stock, 1,000,000 shares authorized, Common stock, $.01 par value, 50,000,000 authorized, 17,441,294 and 17,398,494 shares issued and outstanding 174 174 Additional paid-in capital 51,297 51,015 Retained earnings (deficit) 1,278 422 --------------- ----------------- Total shareholders' equity 52,749 51,611 --------------- ----------------- Total Liabilities and Shareholders' Equity $ 77,552 $ 77,233 =============== ================= 5 AMERICAN ECOLOGY CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS ($ IN 000'S) (UNAUDITED) Three Months Ended March 31, 2005 2004 ------------- ------------- Cash flows from operating activities: Net income $ 856 $ 2,438 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization, and accretion 1,376 1,488 Income from discontinued operations -- (149) Income tax benefit on exercise of stock options 130 -- Deferred income taxes 432 -- Changes in assets and liabilities: Receivables 221 4,020 Other assets 345 173 Closure and post closure obligation (260) (148) Income taxes payable/receivable -- 1,115 Accounts payable and accrued liabilities (465) 1,699 ------------- ------------- Net cash provided by operating activities 2,635 10,636 Cash flows from investing activities: Capital expenditures (2,529) (513) Proceeds from the sale of assets 222 110 Transfers between cash and short term investments, net 644 39 ------------- ------------- Net cash used by investing activities (1,663) (364) Cash flows from financing activities: Payments of indebtedness (364) (366) Warrants purchased and canceled -- (5,500) Stock options and warrants exercised 152 359 ------------- ------------- Net cash used by financing activities (212) (5,507) ------------- ------------- Increase in cash and cash equivalents 760 4,765 Net cash used by discontinued operations -- (668) Cash and cash equivalents at beginning of year 2,160 6,674 ------------- ------------- Cash and cash equivalents at end of quarter $ 2,920 $ 10,771 ============= ============= Supplemental disclosures of cash flow information: Cash paid during the year for: Interest expense $ 47 $ 49 Income taxes paid 4 50 6