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Us Ecology, Inc. (ECOL) SEC Filing 10-K Annual Report for the fiscal year ending Friday, December 31, 2021

Us Ecology, Inc.

CIK: 1783400 Ticker: ECOL

EXHIBIT 99.1

US Ecology Announces Fourth Quarter and Full Year 2021 Results

BOISE, Idaho, Feb. 25, 2022 (GLOBE NEWSWIRE) -- US Ecology, Inc. (NASDAQ-GS: ECOL) (“US Ecology” or “the Company”) today reported results for the fourth quarter and year ended December 31, 2021.


FOURTH QUARTER HIGHLIGHTS COMPARED TO PRIOR YEAR:

  • Total revenue increases 8% to $261.4 million
  • Waste Solutions Base Business grows 9% on improving underlying fundamentals
  • Waste Solutions Event Business rebounds with 15% growth
  • Field Services segment revenue declines 4% due to difficult comparison to prior year
  • Energy Waste recovery continues; revenue more than doubles and adjusted EBITDA margin improves to 35%
  • Net Income of $3.6 million, earnings per diluted share of $0.11
  • Adjusted EBITDA of $42.1 million
  • Adjusted free cash flow of $16.5 million

“We are encouraged by the improvement in our underlying business activity, which drove sequential improvement in revenue in the fourth quarter despite continued supply chain and pandemic-related issues,” commented Chairman and Chief Executive Officer, Jeff Feeler. “Our Waste Solutions segment saw another quarter of solid growth in Base Business, which was up 9% compared to the fourth quarter last year, up 5% sequentially from the third quarter and up 6% for the full year. We also saw growth return in our Event Business, with a 15% improvement over the fourth quarter last year and 9% improvement sequentially compared to the third quarter. This progress resulted in sequential improvement in adjusted EBITDA and margin for our Waste Solutions segment.”

Feeler continued, “We are pleased with the continued momentum in our Energy Waste segment, which led to revenue for the fourth quarter more than doubling from a year ago to over $12 million and adjusted EBITDA margin increasing to 35% on the increased business activity levels. In the Field Services segment, revenue declined 4% on a difficult comparison to last year with lower COVID decontamination work and lower transportation services. We also saw elevated inflationary impacts and a less favorable service mix which resulted in margin compression. The positive momentum in our Small Quantity Generation service line delivered growth of 9%, helping to partially offset weakness in other service lines. Pricing initiatives are underway in our first quarter of 2022 to address these challenging conditions.”

FOURTH QUARTER 2021 RESULTS

Revenue was $261.4 million in the fourth quarter of 2021, up 8% compared to $241.1 million in the fourth quarter of 2020.

Revenue for the Waste Solutions segment was $123.5 million, up 17% from $105.7 million in the fourth quarter of 2020. Growth across our service lines was led by a 9% increase in Base Business, a 15% increase in Event Business and a 32% increase in transportation revenue, compared to the same period in 2020.

Revenue for the Field Services segment was $125.7 million, down 4% from $130.5 million in the fourth quarter of 2020. This was primarily driven by decreases in our Transportation and Emergency Response service lines and partially offset by higher revenues from our Small Quantity Generation and other service lines.

Revenue for the Energy Waste segment increased to $12.2 million compared to $4.8 million in the fourth quarter of 2020, which was driven by recovering oil demand and increased rig counts and other investments.

Net income was $3.6 million, or $0.11 per diluted share, compared to a net loss of $92.4 million, or $2.97 per diluted share, in the fourth quarter of 2020. Adjusted earnings per diluted share was $0.13 compared to adjusted earnings per diluted share of $0.19 in the fourth quarter of 2020.

Cash earnings per diluted share was $0.31 compared to $0.41 for the fourth quarter of 2020. Adjusted EBITDA was $42.1 million compared to $42.8 million in the fourth quarter of 2020.

Definitions and reconciliations of net income (loss) to adjusted EBITDA, earnings (loss) per diluted share to adjusted earnings per diluted share, earnings (loss) per diluted share to cash earnings per diluted share, and net cash provided by operating activities to adjusted free cash flow are attached as Exhibit A to this release.

YEAR-TO-DATE RESULTS

Revenue for 2021 grew 6% to $988.0 million compared to $933.9 million in 2020.

Net income was $5.3 million, or $0.17 per diluted share, in 2021 compared to a net loss of $389.4 million, or $12.51 per diluted share, in 2020. Adjusted earnings per diluted share was $0.17 for 2021 compared to adjusted earnings per diluted share of $0.61 for 2020.

Cash earnings per diluted share was $0.97 for 2021 compared to $1.48 for 2020.

Adjusted free cash flow was $56.7 million for 2021 compared to $68.8 million in 2020.

Definitions and reconciliations of net income (loss) to adjusted EBITDA, earnings (loss) per diluted share to adjusted earnings per diluted share, earnings (loss) per diluted share to cash earnings per diluted share, and net cash provided by operating activities to adjusted free cash flow are attached as Exhibit A to this release.

REPUBLIC SERVICES TRANSACTION

On February 9, 2022, the Company announced a definitive agreement to be acquired by Republic Services, Inc., for consideration to common stockholders of $48 per share in cash, representing a total enterprise value of approximately $2.2 billion. The transaction is expected to close by the end of the second quarter, subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by holders of a majority of the outstanding shares of US Ecology's common stock.

CANCELLATION OF EARNINGS CONFERENCE CALLS AND SUSPENSION OF GUIDANCE

In light of the pending transaction with Republic Services, Inc., the Company has cancelled its quarterly earnings conference calls. The Company will not be providing financial guidance for the full year 2022 while the transaction is pending.

ABOUT US ECOLOGY, INC.

US Ecology, Inc. is a leading provider of environmental services to commercial and government entities. The company addresses the complex waste management and response needs of its customers offering treatment, disposal, beneficial re-use, and recycling of hazardous, non-hazardous, radioactive and other specialty waste. US Ecology also provides a variety of vertically integrated field services including logistics and response at its customers in-field locations and through its network of 10-day transfer facilities. Logistics solutions include specialty waste packaging, collection lab pack, transportation, and total waste management. Response solutions include emergency response, oil spill response standby services, spill clean-up services, remediation, and industrial services. US Ecology’s focus on safety, environmental compliance, and best-in-class customer service enables us to effectively meet the needs of US Ecology’s customers and to build long lasting relationships. US Ecology has been protecting the environment since 1952. For more information, visit www.usecology.com.

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This communication  contains “forward-looking statements” within the meaning of the U.S. federal securities laws. Such statements include statements concerning anticipated future events and expectations that are not historical facts. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible” or “potential,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may,” or by variations of such words or by similar expressions or the negative thereof. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, including, without limitation: (1) risks related to the consummation of the merger, including the risks that (a) the merger with Republic Services, Inc. may not be consummated within the anticipated time period, or at all, (b) the parties may fail to obtain shareholder approval of the merger agreement, (c) the parties to the merger agreement with Republic Services, Inc. may fail to secure the termination or expiration of any waiting period applicable under the HSR Act, and (d) other conditions to the consummation of the merger under the merger agreement may not be satisfied; (2) the effects that any termination of the merger agreement with Republic Services, Inc. may have on US Ecology or its business, including the risks that (a) US Ecology’s stock price may decline significantly if the merger is not completed, (b) the merger agreement may be terminated in circumstances requiring US Ecology to pay Republic Services, Inc. a termination fee, or (c) the circumstances of the termination, including the possible imposition of a 12-month tail period during which the termination fee could be payable upon certain subsequent transactions, may have a chilling effect on alternatives to the merger; (3) the effects that the announcement or pendency of the merger may have on US Ecology and its business, including the risks that as a result (a) US Ecology’s business, operating results or stock price may suffer, (b) US Ecology’s current plans and operations may be disrupted, (c) US Ecology’s ability to retain or recruit key employees may be adversely affected, (d) US Ecology’s business relationships (including, customers and suppliers) may be adversely affected, or (e) US Ecology’s management’s or employees’ attention may be diverted from other important matters; (4) the effect of limitations that the merger agreement places on US Ecology’s ability to operate its business, return capital to shareholders or engage in alternative transactions; (5) the nature, cost and outcome of pending and future litigation and other legal proceedings, including any such proceedings related to the merger and instituted against US Ecology and others; (6) the risk that the merger and related transactions may involve unexpected costs, liabilities or delays; (7) other economic, business, competitive, legal, regulatory, and/or tax factors; and (8) other factors described under the heading “Risk Factors” in Part I, Item 1A of US Ecology’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as updated or supplemented by subsequent reports that US Ecology has filed or files with the U.S. Securities and Exchange Commission (“SEC”). Potential investors, shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Neither US Ecology nor Republic Services, Inc. assumes any obligation to publicly update any forward-looking statement after it is made, whether as a result of new information, future events or otherwise, except as required by law.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

This communication may be deemed to be solicitation material in respect of the proposed merger between a subsidiary of Republic Services, Inc. and US Ecology. US Ecology intends to file with the SEC a proxy statement in connection with the contemplated transaction. The definitive proxy statement will be sent or given to US Ecology stockholders and will contain important information about the contemplated transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE. Investors and security holders may obtain a free copy of the proxy statement (when it is available) and other documents filed with the SEC at the SEC’s website at www.sec.gov, or without charge, contacting US Ecology’s Investor Relations, Alison Ziegler at aziegler@darrowir.com.

CERTAIN INFORMATION CONCERNING PARTICIPANTS

U.S. Ecology and its directors and executive officers may be deemed to be participants in the solicitation of proxies from US Ecology’s stockholders in connection with the contemplated transaction. Information about US Ecology’s directors and executive officers is set forth in its proxy statement for its 2021 Annual Meeting of Stockholders, which may be obtained for free at the SEC’s website at www.sec.gov. Additional information regarding the interests of participants in the solicitation of proxies in connection with the contemplated transactions will be included in the proxy statement that US Ecology intends to file with the SEC.

 
US ECOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
   2021   2020   2021   2020 
Revenue        
Waste Solutions $123,542  $105,729  $451,249  $425,413 
Field Services  125,693   130,536   500,187   473,754 
Energy Waste  12,192   4,809   36,565   34,687 
         
Total  261,427   241,074   988,001   933,854 
         
Gross profit        
Waste Solutions  44,058   38,299   154,223   161,341 
Field Services  15,538   29,178   74,087   87,151 
Energy Waste  2,902   922   4,768   1,659 
         
Total  62,498   68,399   233,078   250,151 
         
Selling, general & administrative expenses        
Waste Solutions  7,520   6,633   27,262   26,475 
Field Services  11,390   12,704   48,210   50,572 
Energy Waste  3,065   6,265   13,040   19,722 
Corporate  27,537   27,356   111,220   109,400 
         
Total  49,512   52,958   199,732   206,169 
         
Goodwill and intangible asset impairment charges       
Field Services  -   24,300   -   41,000 
Energy Waste  -   80,300   -   363,900 
         
Operating income (loss)  12,986   (89,159)  33,346   (360,918)
         
Other income (expense):        
Interest income  269   7   1,417   258 
Interest expense  (6,944)  (7,468)  (28,966)  (32,595)
Foreign currency gain (loss)  214   (979)  (171)  (1,134)
Other  456   406   4,476   788 
         
Total other expense  (6,005)  (8,034)  (23,244)  (32,683)
         
Income (loss) before income taxes  6,981   (97,193)  10,102   (393,601)
Income tax expense (benefit)  3,417   (4,784)  4,765   (4,242)
         
Net income (loss) $3,564  $(92,409) $5,337  $(389,359)
         
Earnings (loss) per share:        
Basic $0.11  $(2.97) $0.17  $(12.51)
Diluted $0.11  $(2.97) $0.17  $(12.51)
         
Shares used in earnings (loss) per share calculation:        
Basic  31,158   31,078   31,138   31,126 
Diluted  31,359   31,078   31,373   31,126 
         
Dividends paid per share $-  $-  $-  $0.18 
         
         


US ECOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
     
  December 31, 2021 December 31, 2020
Assets    
     
Current Assets:    
Cash and cash equivalents $67,487  $73,848 
Receivables, net  250,154   241,978 
Prepaid expenses and other current assets  32,136   28,379 
Income tax receivable  14,441   18,279 
Total current assets  364,218   362,484 
     
Property and equipment, net  456,384   456,637 
Operating lease assets  43,607   51,474 
Restricted cash and investments  1,567   5,598 
Intangible assets, net  489,573   523,988 
Goodwill  413,126   413,037 
Other assets  36,923   18,065 
Total assets $ 1,805,398  $ 1,831,283 
     
Liabilities and Stockholders’ Equity    
     
Current Liabilities:    
Accounts payable $64,793  $35,881 
Deferred revenue  15,950   15,267 
Accrued liabilities  51,265   59,296 
Accrued salaries and benefits  29,438   30,918 
Income tax payable  559   977 
Current portion of long-term debt  3,359   3,359 
Current portion of closure and post-closure obligations  5,771   6,471 
Current portion of operating lease liabilities  15,799   17,048 
Total current liabilities  186,934   169,217 
     
Long-term debt  735,125   782,484 
Long-term closure and post-closure obligations  93,149   89,398 
Long-term operating lease liabilities  28,477   35,069 
Other long-term liabilities  13,907   32,201 
Deferred income taxes, net  123,482   120,983 
Total liabilities  1,181,074   1,229,352 
     
Commitments and contingencies    
     
Stockholders’ Equity    
     
Common stock  315   315 
Additional paid-in capital  821,970   820,567 
Retained deficit  (183,115)  (188,452)
Treasury stock  (10,652)  (15,841)
Accumulated other comprehensive loss  (4,194)  (14,658)
Total stockholders’ equity  624,324   601,931 
Total liabilities and stockholders’ equity $ 1,805,398  $ 1,831,283 
     
     


US ECOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
  For the Year Ended December 31,
   2021   2020 
Cash Flows From Operating Activities:    
Net income (loss) $5,337  $(389,359)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization of property and equipment  70,799   66,561 
Amortization of intangible assets  34,614   37,344 
Accretion of closure and post-closure obligations  5,363   4,000 
Change in fair value of minority interest investment  (3,509)  - 
Unrealized foreign currency gain  (1,647)  (1,472)
Deferred income taxes  (635)  (4,148)
Share-based compensation expense  7,478   6,651 
Share-based payment of business development and integration expenses  411   1,182 
Unrecognized tax benefits  16   (8)
Net (gain) loss on disposition of assets  (116)  1,504 
Amortization of debt discount  161   161 
Amortization of debt issuance costs  2,440   2,217 
Integration-related property and equipment charges  -   3,067 
Goodwill impairment charges  -   404,900 
Change in fair value of contingent consideration  282   (3,682)
Changes in assets and liabilities (net of effects of business acquisitions):    
Receivables  (14,685)  8,381 
Income tax receivable  3,830   (7,049)
Other assets  (5,271)  (5,443)
Accounts payable and accrued liabilities  15,985   (13,628)
Deferred revenue  658   (1,619)
Accrued salaries and benefits  (1,483)  (121)
Income tax payable  (430)  (549)
Closure and post-closure obligations  (3,279)  (1,744)
     Net cash provided by operating activities   116,319   107,146 
     
Cash Flows From Investing Activities:    
Purchases of property and equipment  (68,666)  (57,399)
Proceeds from sale of property and equipment  2,431   1,897 
Proceeds from sale of restricted investments  1,267   1,483 
Purchases of restricted investments  (1,017)  (1,615)
Proceeds from sale of short-term investments  2,142   - 
Minority interest investment  (712)  - 
Insurance proceeds from damaged property and equipment  -   1,305 
Business acquisitions, net of cash acquired  -   (3,309)
     Net cash used in investing activities   (64,555)  (57,638)
     
Cash Flows From Financing Activities:    
Proceeds from short-term borrowings  61,326   72,353 
Payments on short-term borrowings  (61,326)  (72,353)
Payments on long-term debt  (48,500)  (74,500)
Payment of equipment financing obligations  (5,616)  (6,327)
Payment of contingent consideration liabilities  (2,553)  (2,517)
Deferred financing costs paid  (957)  (1,144)
Repurchases of common stock  (465)  (18,332)
Proceeds from long-term debt  -   90,000 
Dividends paid  -   (5,667)
Other  -   28 
     Net cash used in financing activities   (58,091)  (18,459)
     
Effect of foreign exchange rate changes on cash  277   1,915 
     
(Decrease) increase in cash and cash equivalents and restricted cash  (6,050)  32,964 
     
Cash and cash equivalents and restricted cash at beginning of period  75,104   42,140 
     
Cash and cash equivalents and restricted cash at end of period $69,054  $75,104 
     
     

EXHIBIT A
Non-GAAP Results and Reconciliations

US Ecology reports adjusted EBITDA, adjusted earnings (loss) per diluted share, cash earnings per diluted share results and adjusted free cash flow, which are non-GAAP financial measures, as a complement to results provided in accordance with generally accepted accounting principles in the United States (“GAAP”) and believes that such information provides analysts, stockholders, and other users information to better understand the Company’s operating performance. Because adjusted EBITDA, adjusted earnings (loss) per diluted share and adjusted free cash flow are not measurements determined in accordance with GAAP and are thus susceptible to varying calculations they may not be comparable to similar measures used by other companies. Items excluded from adjusted EBITDA, adjusted earnings (loss) per diluted share and adjusted free cash flow are significant components in understanding and assessing financial performance.

Adjusted EBITDA, adjusted earnings (loss) per diluted share, cash earnings per diluted share and adjusted free cash flow 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, adjusted earnings (loss) per diluted share and adjusted free cash flow have limitations as analytical tools 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;
  • 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 cash requirements for such replacements;
  • Adjusted EBITDA does not reflect our business development and integration expenses, which may vary significantly quarter to quarter;

Adjusted EBITDA

The Company defines adjusted EBITDA as net income before interest expense, interest income, income tax expense/benefit, depreciation, amortization, share-based compensation, accretion of closure and post-closure liabilities, foreign currency gain/loss, non-cash impairment charges, business development and integration expenses and other income/expense.

The following reconciliation itemizes the differences between reported net income (loss) and adjusted EBITDA for the three months and year ended December 31, 2021 and 2020:

(in thousands) Three Months Ended December 31, Year Ended December 31,
   2021   2020   2021   2020 
         
Net income (loss) $3,564  $(92,409) $5,337  $(389,359)
Income tax expense (benefit)  3,417   (4,784)  4,765   (4,242)
Interest expense  6,944   7,468   28,966   32,595 
Interest income  (269)  (7)  (1,417)  (258)
Foreign currency (gain) loss  (214)  979   171   1,134 
Other income  (456)  (406)  (4,476)  (788)
Goodwill and intangible asset impairment charges  -   104,600   -   404,900 
Depreciation and amortization of plant and equipment  16,704   11,730   70,799   66,561 
Amortization of intangible assets  8,113   9,532   34,614   37,344 
Share-based compensation  1,730   1,790   7,478   6,651 
Accretion and non-cash adjustments of closure & post-closure obligations  1,792   188   5,363   4,000 
Business development and integration expenses  746   4,114   3,274   11,621 
Adjusted EBITDA $42,071  $42,795  $154,874  $170,159 
         

Adjusted Earnings Per Diluted Share

The Company defines adjusted earnings per diluted share as net income (loss) adjusted for the after-tax impact of the gain on a minority interest investment, the after-tax impact of business development and integration costs, the after-tax impact of non-cash impairment charges, the after-tax impact of purchase accounting-related depreciation and amortization true-ups, and non-cash foreign currency translation gains or losses, divided by the number of diluted shares used in the earnings (loss) per diluted share calculation.

The gain on a minority interest investment excluded from the earnings (loss) per diluted share calculation represents an increase in the fair value of our investment based on a recent observable transaction in the equity of the entity. Impairment charges excluded from the earnings (loss) per diluted share calculation are related to the Company’s assessment of goodwill and intangible assets in 2020. Business development and integration costs excluded from the earnings (loss) per diluted share calculation relate to expenses incurred to evaluate businesses for potential acquisition or costs related to closing and integrating successfully acquired businesses and transaction expenses. Purchase accounting-related depreciation and amortization true-ups relate to the retrospective impact of adjustments to the fair values of property, plant and equipment and intangible assets related to the NRC merger. The foreign currency translation gains or losses excluded from the earnings (loss) per diluted share calculation are related to intercompany loans between our Canadian subsidiaries and the U.S. parent which have been established as part of our tax and treasury management strategy. These intercompany loans are payable in Canadian dollars (“CAD”) requiring us to revalue the outstanding loan balance through our consolidated income statement based on the CAD/United States currency movements from period to period.

We believe excluding the gain on minority interest investment, business development and integration costs, non-cash impairment charges, the after-tax impact of purchase accounting-related depreciation and amortization true-ups, and non-cash foreign currency translation gains or losses from the earnings (loss) per diluted share calculation provides meaningful information to investors regarding the operational and financial performance of the Company.

Cash Earnings Per Diluted Share

The Company defines cash earnings per diluted share as adjusted earnings per diluted share (see definition above) plus amortization of intangible assets, net of tax.

The following reconciliation itemizes the differences between reported net income (loss) and earnings (loss) per diluted share to adjusted net income and adjusted earnings per diluted share and cash earnings per diluted share for the three months and year ended December 31, 2021 and 2020:

(in thousands, except per share data)Three Months Ended December 31,
  2021   2020 
 Income (loss)
before
income taxes
Income tax
(expense)
benefit

Net income
(loss)


per share
 (Loss) income
before
income taxes
Income tax
benefit
(expense)

Net (loss)
income


per share
As Reported$6,981 $(3,417)$3,564 $0.11  $(97,193)$4,784 $(92,409)$(2.97)
          
Adjustments:         
Plus: Business development and integration expenses 746  (205) 541  0.02   4,114  (1,131) 2,983  0.09 
Foreign currency (gain) loss (214) 59  (155) -   979  (269) 710  0.02 
Less: Purchase accounting depreciation true-up related to prior periods -  -  -  -   (5,734) 1,577  (4,157) (0.13)
Plus: Goodwill and intangible asset impairment charges -  -  -  -   104,600  (5,776) 98,824  3.18 
          
As Adjusted$7,513 $(3,563)$3,950 $0.13  $6,766 $(815)$5,951 $0.19 
          
Plus: Amortization of intangible assets$8,113 $(2,237) 5,876  0.18  $9,532 $(2,619) 6,913  0.22 
          
Cash earnings per diluted share$15,626 $(5,800)$9,826 $0.31  $16,298 $(3,434)$12,864 $0.41 
          
Shares used in earnings (loss) per diluted share calculation   31,359      31,078  
          
          
          
(in thousands, except per share data)Year Ended December 31,
  2021   2020 
 Income (loss)
before
income taxes
Income tax
(expense)
benefit

Net income
(loss)


per share
 (Loss) income
before
income taxes
Income tax
benefit
(expense)

Net (loss)
income


per share
As Reported$10,102 $(4,765)$5,337 $0.17  $(393,601)$4,242 $(389,359)$(12.51)
          
Adjustments:         
Less: Gain on minority interest investment (3,509) 965  (2,544) (0.08)  -  -  -  - 
Plus: Business development and integration expenses 3,274  (900) 2,374  0.08   11,621  (3,196) 8,425  0.27 
Foreign currency loss 171  (47) 124  -   1,134  (312) 822  0.03 
Plus: Goodwill and intangible asset impairment charges -  -  -  -   404,900  (5,776) 399,124  12.82 
          
As Adjusted$10,038 $(4,747)$5,291 $0.17  $24,054 $(5,042)$19,012 $0.61 
          
Plus: Amortization of intangible assets$34,614 $(9,514) 25,100  0.80  $37,344 $(10,275) 27,069  0.87 
          
Cash earnings per diluted share$44,652 $(14,261)$30,391 $0.97  $61,398 $(15,317)$46,081 $1.48 
          
Shares used in earnings (loss) per diluted share calculation   31,373      31,126  
          

Adjusted Free Cash Flow

The Company defines adjusted free cash flow as net cash provided by operating activities less purchases of property plant and equipment, plus business development and integration expenses, plus payments of deferred/contingent purchase consideration, plus purchases of property and equipment for the Grand View, Idaho facility rebuild, plus proceeds from sale of property and equipment.

The following reconciliation itemizes the differences between reported net cash from operating activities to adjusted free cash flow for the three months and year ended December 31, 2021 and 2020:

 Three Months Ended December 31,  Year Ended December 31,
(in thousands) 2021   2020   2021   2020 
Adjusted Free Cash Flow Reconciliation       
Net cash provided by operating activities$ 39,278  $ 23,902  $ 116,319  $ 107,146 
Less: Purchases of property and equipment (23,319)  (12,275)  (68,666)  (57,399)
Plus: Business development and integration expenses, net of tax 541   2,983   2,374   8,425 
Plus: Purchases of property and equipment for the Idaho facility rebuild 17   1,469   1,653   4,284 
Plus: Payment of deferred/contingent purchase consideration -   432   2,553   4,432 
Plus: Proceeds from sale of property and equipment -   818   2,431   1,897 
        
Adjusted Free Cash Flow$ 16,517  $ 17,329  $ 56,664  $ 68,785 
        

Contact: Alison Ziegler, Darrow Associates (201) 220-2678
aziegler@darrowir.com    www.usecology.com 


The following information was filed by Us Ecology, Inc. (ECOL) on Friday, February 25, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Us Ecology, Inc.'s 10-K Annual Report:

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Ticker: ECOL
CIK: 1783400
Form Type: 10-K Annual Report
Accession Number: 0001558370-22-002321
Submitted to the SEC: Mon Feb 28 2022 2:24:10 PM EST
Accepted by the SEC: Mon Feb 28 2022
Period: Friday, December 31, 2021
Industry: Refuse Systems

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