US Ecology : View the Presentation - pdf, 372KB, opens in a new window

2021

Second Quarter Business Review

July 30, 2021

Today's Hosts

• Jeff Feeler

Chairman, President & Chief Executive Officer

• Eric Gerratt

Executive Vice President & Chief Financial Officer

• Simon Bell

Executive Vice President & Chief Operating Officer

• Steve Welling

Executive Vice President, Sales and Marketing

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Safe Harbor and Non-GAAP Financial Measures

Forward looking statements

These slides (and the accompanying oral discussion) contain "forward-looking statements" within the meaning of the federal securities laws. Statements that are not historical facts, including statements about the beliefs and expectations of US Ecology, Inc. (the "Company," "US Ecology," "we" or "us), are forward looking statements. Forward looking statements include statements preceded by, followed by or that include the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "intend" and similar expressions. These statements include, among others, statements regarding our financial and operating results, strategic objectives and means to achieve those objectives, the amount and timing of capital expenditures, repurchases of its stock under approved stock repurchase plans, the amount and timing of interest expense, the likelihood of our success in expanding our business, financing plans, budgets, working capital needs and sources of liquidity.

Forward looking statements are only predictions and are not guarantees of performance. These statements are based on management's beliefs and assumptions, which in turn are based on currently available information. Important assumptions include, among others, those regarding demand for the Company's services, expansion of service offerings geographically or through new or expanded service lines, the timing and cost of planned capital expenditures, competitive conditions and general economic conditions. These assumptions could prove inaccurate. Forward looking statements also involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Such factors may include developments related to the COVID-19 pandemic, including, but not limited to, the duration and severity of additional measures taken by government authorities and the private sector to limit the spread of COVID-19, the integration of the operations of NRC Group Holdings Corp. ("NRC"), the loss or failure to renew significant contracts, competition in our markets, adverse economic conditions, our compliance with applicable laws and regulations, potential liability in connection with providing oil spill response services and waste disposal services, the effect of existing or future laws and regulations related to greenhouse gases and climate change, the effect of our failure to comply with U.S. or foreign anti-bribery laws, the effect of compliance with laws and regulations, an accident at one of our facilities, incidents arising out of the handling of dangerous substances, our failure to maintain an acceptable safety record, our ability to perform under required contracts, limitations on our available cash flow as a result of our indebtedness, liabilities arising from our participation in multi- employer pension plans, the effect of changes in the method of determining the London Interbank Offered Rate ("LIBOR") or the replacement thereto, risks associated with our international operations, the impact of changes to U.S. tariff and import and export regulations, fluctuations in commodity markets related to our business, a change in NRC's classification as an Oil Spill Removal Organization, cyber security threats, unanticipated changes in tax rules and regulations, the loss of key personnel, a deterioration in our labor relations or labor disputes, our reliance on third-party contractors to provide emergency response services, our access to insurance, surety bonds and other financial assurances, our litigation risk not covered by insurance, the replacement of non-recurring event projects, our ability to permit and contract for timely construction of new or expanded disposal space, renewals of our operating permits or lease agreements with regulatory bodies, our access to cost-effective transportation services, lawsuits, our implementation of new technologies, fluctuations in foreign currency markets and foreign affairs, our integration of acquired businesses, our ability to pay dividends or repurchase stock, anti-takeover regulations, stock market volatility, the failure of the warrants to be in the money or their expiration worthless and risks related to our compliance with maritime regulations (including the Jones Act).

Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission (the "SEC"), we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in forward looking statements are reasonable, we cannot guarantee future results or performance. .

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Today's Agenda

Highlights

Environmental, Social and Governance (ESG)

Financial Review

• Consolidated Q2 2021
• Consolidated Q2 2021 Year-to-Date results
• Capital Structure and Liquidity

2021 Business Outlook

Appendix: Financial Results & Reconciliations

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Q2-21 Highlights

Strong revenue growth driven by positive industrial trends

Total revenue increased 13% compared to Q2-20

Field Services ("FS") led the way with 20% revenue growth

• Growth driven across substantially all of our services

Energy Waste ("EW") ahead of expectations with segment's fourth quarter of sequential EBITDA improvement on increased rig count and related business activity

Waste Solutions ("WS") segment revenue increased 5%

• Base Business up 7% from Q2-20; up 3% sequentially from Q1-21; up 2% for first six months of 2021
• • Improving tends in Metals Manufacturing, Mining and E&P, General manufacturing, and Chemical manufacturing
• Event Business down 13% from Q2-20
• • Projects delayed to the second half of the year and into 2022
  • Early completion of large event projects with high margins

Total Company adjusted EBITDA was $34.2 million

• EBITDA margins down primarily due to the lack of Events and Emergency businesses and unfavorable service mix in Waste Solutions

Free cash flow generation of $11.6 million

1See definition and reconciliation of non-GAAP measures in slides 19-32

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