Tuesday, American Ecology Corp.(ECOL), a waste management company reported a decrease in net income for the third quarter, primarily due to decline in revenues, which were particularly affected by the lower transportation related revenue and lower treatment and disposal revenue.
The company's net income declined to $4.2 million from $4.3 million in the year-ago period. Earnings per share for the quarter was $0.23, flat with last year.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the third quarter of 2009 was $37.5 million, down from $41.1 million in the same quarter last year. Six Wall Street analysts estimated revenues of $36.58 million for the quarter.
The fall in revenue reflected both lower transportation related and lower treatment and disposal revenue. Waste disposed by the company declined 24% to 201,000 tons from 263,000 tons disposed in the third quarter of 2008.
Revenue from recurring "Base" business customers during the quarter decreased 2%, compared with the same quarter last year. "Event" clean-up business also declined 2% in the third quarter, compared with the year-ago quarter on lower private and government clean-up project revenue. This was partially offset by increased thermal treatment revenue in Texas and Nevada, which recorded a year-over-year increase by $1.3 million to $2.5 million.
Selling, general and administrative expenses for the third quarter remained flat year-over-year at $3.2 million.
The company's other income, primarily interest and royalty income for the quarter was $0.118 million down from $0.214 million in the third quarter of 2008 due to lower interest rates on cash and short-term investments.
The company revised its full year previously issued guidance of $0.85 - $1.00 per share and now expects annual earnings to range between $0.77 - $0.83 per share. The Street currently estimates earnings of $0.84 per share for the year.
Year-to-date, the company's net income was $11.32 million or $0.62 per share, compared with $16.24 million or $0.89 per share in the year ago period. Revenue for the nine months declined to $108.87 million from $131.78 million a year-ago.
ECOL is currently trading at $18.26, down $0.37 or 1.99%, on a volume of 0.11 million shares on the Nasdaq.
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